Digital Marketing Strategy Development

Slide 4.
Part 2
Digital marketing strategy
development
Chapter 4
Digital marketing strategy
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013
Slide 4.2
Learning objectives
What approaches can be used to create digital
marketing strategies?
How does digital marketing strategy relate to
other strategy development?
What are the key strategic options for digital
marketing?
Slide 4.3
Questions for marketers

Relate digital marketing strategy to marketing
and business strategy
Identify opportunities and threats arising from
digital technology platforms
Evaluate alternative strategic approaches for
using digital platforms
Slide 4.4
Q. What are organisational problems if no

E-marketing strategy?
Underestimated demand for online services

Market share loss
Resource duplication
Insufficient resource
Insufficient customer data
Efficiencies available through online marketing
Opportunities for applying online marketing tols
Changes required to internal IT systems
Inadequate tracking
Senior management support limited
Slide 4.5
Michael Porter on the Internet

The key question is not whether to deploy
Internet technology companies have no choice
if they want to stay competitive but how to
deploy it.
Porter, M. (2001) Strategy and the Internet,

Harvard Business Review, March 2001, 6278.
Slide 4.6
What is a digital marketing strategy?

What is strategy?
Defines how we will meet our objectives
Sets allocation of resources to meet goals
Selects preferred strategic options to
compete within a market
Provides a long-term plan for the development of
the organisation
Slide 4.7
Digital marketing strategy essentials

Digital marketing strategy is a channel strategy
Objectives for online contribution %
- sales, service, profitability should drive our strategy
Digital marketing strategy defines how we should:
1.Communicate benefits of using this channel
2.Prioritise audiences targeted through channel
3.Prioritise products available through channel
4.Hit our channel leads & sales targets
Acquisition, Conversion, Retention
Channel strategies thrives on differentials

BUT, need to manage channel integration
Slide 4.8
Figure 4.1
Internal and external influences on digital marketing strategy

Slide 4.9
Summary of typical focus for main types of e-commerce-related

strategic initiatives
Table 4.1
Slide 4.10
Figure 4.2
HSBC Expat Explorer (http://www.expatexplorer.hsbc.com)

Slide 4.11
Figure 4.3
Hierarchy of organisation plans including e-marketing plans

Slide 4.12
The SOSTAC planning framework applied to digital Digital marketing strategy

development
Figure 4.4
Source: Chaffey and Smith (2008)
Slide 4.13
Figure 4.5
Dynamic e-business strategy model
Source: Adapted from description in Kalakota and Robinson (2000)
Slide 4.14
Table 4.2
Summary of approaches used to support emergent strategy

Slide 4.15
Levels of website development in: (a) the information to transaction model and (b) the transaction to
information model of Quelch and Klein (1996)
Figure 4.6
Slide 4.16
Capability maturity model of e-commerce adoption based on

Econsultancy (2008) research
Table 4.3
Slide 4.17
Corporate stage model
Source: E-consultancy (2005) report Managing an E-commerce team Author: Dave Chaffey
Slide 4.18
A generic digital channel-specific SWOT analysis showing typical

opportunities and threats presented by digital media
Figure 4.7
Slide 4.19
An example of an digital channel specific SWOT for an established multichannel

brand showing how the elements of SWOT can be related to strategy formulation
Figure 4.8
Slide 4.20
Figure 4.9
Will Wynne, Arena Flowers (www.arenaflowers.com)
Slide 4.21
Internet marketing benefits

Intangible benefits
Tangible benefits
Increased sales from new sales
leads giving rise to increased
revenue from:
new customers, new markets
existing customers (repeatselling)
existing customers (crossselling)
Cost reductions from:

reduced time in customer
service
online sales
reduced printing and
distribution costs of
marcomms
Corporate image communication

Enhance brand
More rapid, more responsive
marketing
communications including PR
Improved customer service
Learning for the future
Meeting customer expectations
Identify new partners, support
existing partners
Better management of marketing
information and customer
information
Feedback from customers on
products
Slide 4.22
Grid of product suitability against market adoption for transactional

e-commerce (online purchases)
Figure 4.10
Slide 4.23
An example of a performance measurement system for an

commerce electrical goods retailer
Figure 4.11
e-
Source: Based on Friedlein (2002)
Slide 4.24
An example of the relationship between objectives, strategies and

performance indicators
Table 4.7
Slide 4.25
Figure 4.12
Using the Internet to support different organisational growth strategies
Slide 4.26
Figure 4.13
Smile (www.smile.co.uk)
Slide 4.27
Figure 4.14
Dell Ideastorm (www.ideastorm.com)
Source: 2012 Dell Inc. All Rights Reserved.
Slide 4.28
Common online targeting options
Brand loyalists convert online

Not brand loyal encourage trial
Most profitable deepen relationships
Larger companies (B2B)
Smaller companies(B2B)
Key members of the buying unit (B2B)
Difficult to reach using other media
Slide 4.29
Figure 4.15
Stages in target marketing strategy development
Slide 4.30
Figure 4.16
Dell Singapore site segmentation
Source: http://www.ap.dell.com/content/default.aspx?c=sg&1=en&s=gen. 2012Dell Inc. All Rights Reserved.
Slide 4.31
Figure 4.17
Customer lifecycle segmentation
Slide 4.32
Figure 4.18
Euroffice e-mail (www.euroffice.co.uk)
Source: Adapted from the company website press releases and Revolution (2005a)
Slide 4.33
Figure 4.19
Alternative positionings for online services
Slide 4.34
WeBuyAnyCar (www.webuyanycar.co.uk) clearly communicates its

proposition
Figure 4.20
Slide 4.35
Strategic options for a company in relation to the importance of the

Internet as a channel
Figure 4.21
Slide 4.36
Figure 4.22
Flow chart for deciding on the significance of the Internet to a business
Source: After Kumar (1999)
Slide 4.37
Figure 4.23
Influences on customers of multichannel decision making
Source: adapted from Dholakia et al. (2010)
Slide 4.38
Channel coverage map showing the companys preferred strategy for

communications with different customer segments with different value
Figure 4.24
Slide 4.39
Figure 4.25
Options for location of control of e-commerce
Source: Econsultancy (2008)
Slide 4.40
Figure 4.26
Example of riskreward analysis
Slide 4.41
Table 4.9
Online performance management grid for an e-retailer


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Slide 4.

Questions for marketers

Q. What are organisational problems if no

Underestimated demand for online services

Michael Porter on the Internet

Porter, M. (2001) Strategy and the Internet,

What is a digital marketing strategy?

Digital marketing strategy essentials

Channel strategies thrives on differentials

Internal and external influences on digital marketing strategy

Summary of typical focus for main types of e-commerce-related

HSBC Expat Explorer (http://www.expatexplorer.hsbc.com)

Hierarchy of organisation plans including e-marketing plans

The SOSTAC planning framework applied to digital Digital marketing strategy

Source: Chaffey and Smith (2008)

Dynamic e-business strategy model

Source: Adapted from description in Kalakota and Robinson (2000)

Summary of approaches used to support emergent strategy

Capability maturity model of e-commerce adoption based on

Corporate stage model

A generic digital channel-specific SWOT analysis showing typical

An example of an digital channel specific SWOT for an established multichannel

Will Wynne, Arena Flowers (www.arenaflowers.com)

Internet marketing benefits

Cost reductions from:

Corporate image communication

Grid of product suitability against market adoption for transactional

An example of a performance measurement system for an

Source: Based on Friedlein (2002)

An example of the relationship between objectives, strategies and

Using the Internet to support different organisational growth strategies

Dell Ideastorm (www.ideastorm.com)

Source: 2012 Dell Inc. All Rights Reserved.

Common online targeting options

Brand loyalists convert online

Stages in target marketing strategy development

Dell Singapore site segmentation

Source: http://www.ap.dell.com/content/default.aspx?c=sg&1=en&s=gen. 2012Dell Inc. All Rights Reserved.

Customer lifecycle segmentation

Euroffice e-mail (www.euroffice.co.uk)

Alternative positionings for online services

WeBuyAnyCar (www.webuyanycar.co.uk) clearly communicates its

Strategic options for a company in relation to the importance of the

Flow chart for deciding on the significance of the Internet to a business

Source: After Kumar (1999)

Influences on customers of multichannel decision making

Source: adapted from Dholakia et al. (2010)

Channel coverage map showing the companys preferred strategy for

Options for location of control of e-commerce

Source: Econsultancy (2008)

Example of riskreward analysis

Online performance management grid for an e-retailer

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