Learning objectives

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BM. QT bán hàng & Digital Marketing – Khoa Marketing – ĐH. KTQD
Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

v Explain the importance to organisations of creating a digital marketing
strategy and implementation process;
Chapter 4
v Explain activities needed to inform a digital marketing strategy;

DIGITAL MARKETING STRATEGY v Define different types of goals for digital marketing and alternative digital
strategy approaches
v Assess success factors for digital strategy implementation

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Chapter content Overview of digital marketing strategy

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BM. QT bán hàng & Digital Marketing – Khoa Marketing – ĐH. KTQD
Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Overview of digital marketing strategy
• What is a digital marketing strategy? What is digital marketing strategy?
• Why are a digital marketing strategy and digital transformation needed?
4.1.1 • Digital marketing strategy as a channel marketing strategy
• Which digital marketing activities should have focus?
Strategy formulation for digital marketing
• The SOSTAC® planning framework
Why are a digital marketing strategy and digital
• Decisions in developing DM strategy transformation needed?
4.1.2
Success factors for digital strategy implementation • Digital transformation
• Digital marketing planning

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 Digital Marketing strategy DM strategy ~ Channel Marketing strategy
BM. QT bán hàng & Digital Marketing – Khoa Marketing – ĐH. KTQD

BM. QT bán hàng & Digital Marketing – Khoa Marketing – ĐH. KTQD
Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

v Definition:
Ø Definition of the capabilities and strategic initiatives to support marketing and business For existing businesses, digital
objectives an organisation should deploy to harness digital media, data and marketing marketing strategy is a channel
technology to increase omnichannel engagement with their audiences using digital devices
marketing strategy, which
and platforms.
defines how a company should
Ø Its scope should include opportunities from both new business and revenue models and
always-on and campaign communications.
set channel-specific objectives
and develop differential
advantage

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DM strategy ~ Channel Marketing strategy DM strategy ~ Channel Marketing strategy

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Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

v Multichannel marketing strategy
v Which digital marketing activities should have focus?
- defines how different marketing channels should integrate and support each other in terms of their proposition
development and communications based on their relative merits for the customer and the company. Ø using marketing automation and AI tools for customer relationship development (Chapter 6);
- is an operational view – how you allow the customer to complete transactions in each channel these may include email, mobile and web-based personalization based on predictive analytics
from CRM databases;
v Omnichannel marketing
- planning and optimising always-on and campaign-focused marketing communications tools integrated across Ø developing the overall customer experience across multiple channels (Chapter 7 in the section on
different customer lifecycle touchpoints to maximize leads and sales, and deliver a seamless, integrated customer customer experience management (CXM)), including using structured experiments such as AB
experience to encourage customer loyalty. testing, and innovation such as augmented and virtual reality;
- is viewing the experience through the eyes of your customer, orchestrating the customer experience across all Ø maximising the results from integrating content-led always-on and campaign-based digital
channels so that it is seamless, integrated, and consistent. communications such as search marketing, social media, digital PR and advertising (Chapters 8
- anticipates that customers may start in one channel and move to another as they progress to a resolution and 9);
v Customer touchpoints Ø harnessing social media marketing, both through use on its own site through user- generated
Communications channels through which companies interact directly with prospects and customers. Traditional content and through paid ads within the main social networks such as Facebook, Instagram,
touchpoints include face to face (in-store or with sales representatives), phone and mail. Digital touchpoints LinkedIn, and Twitter (Chapter 9).
include web services, email and mobile phones.

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 Summary of typical focus for main types of strategic digital marketing initiatives
Digital transformation
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BM. QT bán hàng & Digital Marketing – Khoa Marketing – ĐH. KTQD
Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Ø A staged programme of organisational improvements to business models,
people, process and technologies used for integrated digital marketing in
order to maximise the potential business contribution of digital technology,
data and media.
Ø “Digital is indeed still important, but now it is simply the price of admission for
doing business — it is no longer a differentiation advantage. . . In the post-
digital world, differentiation comes from applying digital in powerful new
ways” _ (Daugherty, 2019)

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Summary of typical focus for main types of strategic digital marketing initiatives
Challenges of managing digital marketing
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Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

v gaining buy-in and budget consistent with audience media consumption and value generated;
v conflicts of ownership and tensions between a digital team and other teams such as traditional
marketing, IT, finance and senior management;
v coordination with different channels in conjunction with teams managing marketing
programmes elsewhere in the business;
v managing and integrating customer information about characteristics and behaviours collected
online;
v achieving consistent reporting, review, analysis and follow-up actions of digital marketing
results throughout the business;
v structuring the specialist digital team and integrating into the organisation by changing
responsibilities elsewhere in the organisation;
v ‘time to market’ for implementing new functionality on a site;
v insourcing vs outsourcing online marketing tactics, i.e. search, affiliate, email marketing, PR;
staff recruitment requirements.

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 DIGITAL MARKETING PLANNING FAILURES AND SOLUTIONS
Digital Marketing planning
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Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

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Strategy formulation for digital marketing Digital Marketing strategy

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Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Strategic process model v Prescriptive strategy:

• Prescriptive strategy vs. Emergent strategy The three core areas of strategic analysis, strategic
4.2.1 development, and strategy implementation are
• The SOSTAC® planning framework
linked together sequentially.

v Emergent strategy:
Strategic analysis, strategic development, and
Steps in the DM strategy development process
strategy implementation are interrelated and are
• Situation analysis
4.2.2 developed together in a more agile fashion.
• Objectives for Digital Marketing
• 8 decisions in developing digital marketing strategy

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 Digital Marketing strategy formulation Steps in forming DMS: (1) Situation analysis
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BM. QT bán hàng & Digital Marketing – Khoa Marketing – ĐH. KTQD
Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

v Internal audits of digital marketing
• Business effectiveness. Financial or commercial contribution from digital channels, including online
leads, sales and profit and offline-influenced leads and sales, and how well it is supporting business
objectives. The relative costs of developing and maintaining digital experiences and communications will
also be reviewed as part of a cost–benefit analysis.
• Marketing effectiveness. Review leads (qualified enquiries); sales; customer retention, satisfaction and
loyalty, including lifetime value; online market (or audience share); brand enhancement; customer service.
For large organisations, these measures can be assessed for each of the different markets a company
operates in or for product lines produced on the website.

• Digital marketing effectiveness. This includes a review of capabilities and evaluation of the
contribution of digital media. Specific measures for digital media include the volume, quality, value and
cost (VQVC)

Figure. Digital marketing capability model

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Steps in forming DMS: (1) Situation analysis (cont) DM strategy process: (1) Situation Analysis (cont)
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BM. QT bán hàng & Digital Marketing – Khoa Marketing – ĐH. KTQD
Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Key performance indicators (KPIs) for performance review of an online presence v Resouces analysis
include: Ø Financial resources: the mismatch between current spend and required spend to achieve
• unique visitors: the number of separate, individual visitors to the site; visibility within the online market place
• total numbers: of sessions or visits to the website; Ø Technology infrastructure resources: Marketing technology and data management
• repeat visits: average number of visits per individual; including website hosting and platforms, marketing automation systems, analytics and
• duration: average length of time visitors spend on the site; marketing clouds.

• conversion rates: the percentage of visitors converting to subscribers (or becoming customers); Ø Data and insight resources: the quality of data and tools to analyse the performance of
digital channels and consumer characteristics and behaviours.
• attrition rates: through the online buying process;
v churn rates: percentage of subscribers lapsing or unsubscribing. Ø Human resources: these include digital marketing skills for all employees, suitability of
team structures, workflows, and adaptability of the workforce against new challenges.

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 Steps in forming DMS: (1) Situation analysis Steps in forming DMS: (1) Situation analysis (cont)
BM. QT bán hàng & Digital Marketing – Khoa Marketing – ĐH. KTQD

BM. QT bán hàng & Digital Marketing – Khoa Marketing – ĐH. KTQD
Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Customer research
v Competitor analysis:
benchmarking
v Intermediary analysis
v Assessing opportunities
and threats

Source: Chaffey, 2022 A generic digital channel-specific SWOT analysis showing typical opportunities
and threats presented by digital media
Figure. Character variables, beliefs, attitudes and shopping intentions

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Steps in forming DMS: (1) Situation analysis (cont) Steps in forming DMS:
(2) Setting goals and objectives for digital marketing
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Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Figure. The relationship between vision, goals, objectives and KPIs

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 Steps in forming DMS: Steps in forming DMS:
(2) Setting goals and objectives for digital marketing (cont.) (2) Setting goals and objectives for digital marketing (cont.)
BM. QT bán hàng & Digital Marketing – Khoa Marketing – ĐH. KTQD

BM. QT bán hàng & Digital Marketing – Khoa Marketing – ĐH. KTQD
Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Vision. A high-level statement of how digital marketing will contribute to the organisation.
v
VQVC mnemonic technique:
v Goals. These are the broad aims to show how the business can benefit from digital channels. They describe Volume measures (of traffic)
how your digital marketing will contribute to the business in key areas of growing sales, communicating with
• Unique visits. The number of individuals who visit the site in the specified period.
your audience, and saving money.
• Visits. The total number of times the site was accessed by different individuals.
v Objectives. Specific SMART objectives to give clear direction and commercial targets. Objectives are the • Page views. The total number of pages viewed by individuals.
SMART targets for digital marketing, which can be used to track performance against target on a digital Quality measures
marketing dashboard. • Bounce rate. Percentage of visitors who leave immediately after viewing only one page. A high bounce rate is a sign
v CSFs and KPIs. Key performance indicators (KPIs) are used to check you are on track. KPIs are specific metrics of poor-quality traffic and/or experience.
that are used to track performance to make sure you are on track to meet specific objectives. They are • Duration. Dwell time, which is measured as average time on page or time on site.
sometimes known as performance drivers or critical success factors (CSFs) for this reason. • Pages per visit. Arguably more useful than dwell time since it shows how many pages a visitor views on average.
Conversion rates to lead and sale are arguably the most important quality measure since they show what
v Metrics and measures. Other measures that may be referenced, but aren’t typically used in high-level
proportion of visits convert to commercial outcomes.
reporting or dashboards.

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Steps in forming DMS: Steps in forming DMS:

(2) Setting goals and objectives for digital marketing (cont.) (2) Setting goals and objectives for digital marketing (cont.)
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Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

SMART objectives:
VQVC mnemonic technique: • Digital channel contribution objective. Achieve 10 percent online revenue (or profit) contribution within two years.
Value measures • Acquisition objective. Acquire 50,000 new online customers this financial year at an average cost-per-acquisition (CPA) of £30
with an average profitability of £5.
• Goal value per visit. If you assign a value to a goal such as a download, you can then compare how different visitor
• Acquisition or conversion objective. Migrate 40 percent of existing customers to using online ‘paperless’ bill payment
sources contribute value to the site. For example, how does social media marketing compare to email, or is LinkedIn services within three years (e.g. for a bank or utilities company).
more or less valuable than Twitter? This is very powerful for checking your marketing investments. • Acquisition objective. Increase by 20 percent within one year the number of sales arising from a certain target market (e.g.
• Revenue per visit. For sites with e-commerce tracking, Google will report revenue per visit, which enables similar 18–25-year-olds).
• Conversion objective. Increase the average order value of online sales to £42 per customer.
analysis to that of goal value.
• Conversion objective. Increase site conversion rate to 3.2 percent (would be based on model of new and existing customers
• Page value. If marketers review this measure for pages, they can determine which pages are prompting the creation
in different categories).
of value, enabling the business to improve customer journeys. • Conversion objective. Increase percentage of online service enquiries fulfilled online by ‘web self-service’ from 85 to 90 per
Cost measures cent.
Retention objective. Increase annual repeat new customer conversion rate by 20 percent.
Cost includes the cost of content and experience creation and promotion – i.e. paid, owned and earned •

• Retention objective (existing customers). Increase percentage of active users of the service (purchasing or using of other
media costs. Cost-per-acquisition is typically used to assess media effectiveness. electronic services) within a 180-day period from 20 to 25 percent.
• Retention objective. Increase customer satisfaction rating for channel from 70 to 80 percent.
• Growth objective. Increase new prospects recommended by friends (viral marketing or ‘member get member’) by 10,000 per
annum.
• Cost objective. Achieve a cost reduction of 10 percent in marketing communications within two years.

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 Steps in forming DMS: Steps in forming DMS:
(2) Setting goals and objectives for digital marketing (cont.) (2) Setting goals and objectives for digital marketing (cont.)
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Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

v Frameworks for objective setting
• Efficiency: Minimising resources or time needed to complete a process; ‘doing the thing
right’.
• Effectiveness: Meeting process objectives, delivering the required outputs and outcomes;
‘doing the right thing’.

Example allocation of digital marketing objectives within the balanced scorecard framework for a
transactional e-commerce site

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Steps in forming DMS: Steps in forming DMS:

(3) Strategy formulation for digital marketing (3) Strategy formulation for digital marketing (cont.)
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Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

v Strategy formulation: Generation, review and selection of strategies to achieve
strategic objectives.
v Involves the identification of alternative strategies, a review of the merits of
each of these options and then selecting the strategy that has the best fit with
a company’s trading environment, its internal resources and capabilities.
v Companies should be realistic about what their strategies can achieve and
base digital strategies on sound logic and analysis.

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 Steps in forming DMS: Steps in forming DMS:
(3) Strategy formulation for digital marketing (cont.) (3) Strategy formulation for digital marketing (cont.)
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Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

v Critical decisions in DM:
Ø Decision 1: Market and product development strategies

Ø Decision 2: Business and revenue models strategies

Ø Decision 3: Target marketing strategy

Ø Decision 4: Positioning and differentiation strategy (including the marketing mix)

Ø Decision 5: Customer engagement and social media strategy
Ø Decision 6: Multichannel distribution strategy
Ø Decision 7: Multichannel communications strategy
Ø Decision 8: Online communications mix and budget

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Steps in forming DMS: Steps in forming DMS:

(3) Strategy formulation for digital marketing (cont.) (3) Strategy formulation for digital marketing (cont.)
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Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Online value
proposition (OVP)
A statement of the
benefits of online
services that reinforces
the core proposition and
differentiates from an
organisation’s offline
offering and those of
competitors.

D1.: Using digital channels to support different organisational growth strategies

Stages in target marketing strategy development

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 Steps in forming DMS: Steps in forming DMS:
(3) Strategy formulation for digital marketing (cont.) (3) Strategy formulation for digital marketing (cont.)
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Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

v Decision 5: Engagement and social media

Ø Question 1. Who are our target audience?

Ø Question 2. What are the content preferences of our audiences?

Ø Question 3. Which content type should have priority?

Ø Question 4. How do we differentiate the social channel from other communication channels?

Ø Question 5. Should we consider content frequency and an editorial calendar?

Ø Question 6. How do we manage publication and interaction?

Ø Question 7. Should we use software for managing the publishing process?

Ø Question 8. Should we be tracking the business impact of social network activity?

Ø Question 9. How do we optimise the social presence?

Customer lifecycle segmentation

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Steps in forming DMS: Steps in forming DMS:

(3) Strategy formulation for digital marketing (cont.) (3) Strategy formulation for digital marketing (cont.)
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BM. QT bán hàng & Digital Marketing – Khoa Marketing – ĐH. KTQD
Decision 7: Multichannel communication strategy
Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

v

Decision 6:
Multichannel
distribution
strategy

The continuum of strategic options for a company in relation to the importance

of the internet as a consumer channel

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 Steps in forming DMS:
Factors influencing strategy implementation
(3) Strategy formulation for digital marketing (cont.)
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Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

v Decision 8: Online communication mixs and budget
Ø Decision on the amout of spending
Ø The mix between different techniques (search/affliate/email...) 4.3.1 Organisational issues
Ø What is the focus?
Ø What is the primary purpose: customer acquisition / retention / relationship building

4.2.2 Digital initiatives

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Factors influencing strategy implementation Factors influencing strategy implementation

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Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

v Digital initiatives
v 7Ds Framework
v Review existing and future
capabilities to meet
challenges posed by the new
digital channels

Figure 4.17 – Evaluation matrix

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 Factors influencing strategy implementation Chapter summary
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BM. QT bán hàng & Digital Marketing – Khoa Marketing – ĐH. KTQD
Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

v Online value proposition strategy v This chapter clarifies the importance of situation analysis for developing a digital marketing
strategy in the digital world where changes in market forces are increasingly rapid.
v Online targeted reach strategy
v Techniques for reviewing the importance of different players in the micro-environment are
v Offline targeted reach strategy presented as part of the development of a digital marketing strategy
v Online sales efficiency strategy v This chapter also analyzes the main macro-environment factors affecting an organization’s
digital marketing strategy and implementation
v Offline sales impact strategy

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Chapter reference
BM. QT bán hàng & Digital Marketing – Khoa Marketing – ĐH. KTQD

BM. QT bán hàng & Digital Marketing – Khoa Marketing – ĐH. KTQD
Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Bài giảng Nhập môn DIGITAL MARKETING (T1-2024)

Groupwork v Chaffey D. & Ellis-Chadwick F. (2022). Digital marketing - Strategy,
Implementation and Practice (8th edition). Pearson. UK
v Case study 4 – ASOS shifts the focus of high street retailing
v Questions:
1. Apply the SOSTAC model to ASOS and highlight why it has become such a successful online fashion
brand
2. Describe how ASOS uses elements of the marketing mix as part of its digital strategy
3. Discuss how ASOS has used digital to develop its differentiated market position

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