Digital Marketing Strategy Development

Slide 4.
Part 2
Digital marketing strategy
development
Chapter 4
Digital marketing strategy
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 4.2
Learning objectives
• Relate digital marketing strategy to marketing

and business strategy
• Identify opportunities and threats arising from
digital media and technology platforms
• Evaluate alternative strategic approaches for
using digital platforms.
Slide 4.3
Questions for marketers
• 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 4.4
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 4.5
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 and sales targets
– Acquisition, Conversion, Retention
• Channel strategies thrives on differentials
• But, need to manage channel integration.
Slide 4.6
Figure 4.1 Internal and external influences on digital marketing strategy
Slide 4.7
Table 4.1 Summary of typical focus for main types of strategic digital marketing
initiatives
Slide 4.8
Figure 4.2 Hierarchy of organisation plans including e-marketing plans
Slide 4.9
The SOSTAC® planning framework applied to digital marketing strategy

Figure 4.3
development
Source: Chaffey and Smith (2012)
Slide 4.10
Figure 4.4 A digital marketing capability model

Source: Smart Insights (http://bit.ly/smartbenchmarking)
Slide 4.11
A generic digital channel-specific SWOT analysis showing typical

Figure 4.6
opportunities and threats presented by digital media
Slide 4.12
An example of a digital channel specific SWOT for an established

Figure 4.7
multichannel brand showing how the elements of SWOT can be related to
strategy formulation
Slide 4.13
Figure 4.8 The relationship between vision, goals, objectives and KPIs
Slide 4.14
Figure 4.9 Will Wynne, Arena Flowers (www.arenaflowers.com)
Slide 4.15
Internet marketing benefits

Tangible benefits Intangible benefits
• Increased sales from new sales • Corporate image communication
leads giving rise to increased • Enhance brand
revenue from: • More rapid, more responsive
• New customers, new markets marketing communications
• Existing customers (repeat- including PR
selling) • Improved customer service
• Existing customers (cross- • Learning for the future
selling) • Meeting customer expectations
• Cost reductions from: • Identify new partners, support
• Reduced time in customer existing partners
• Better management of marketing
service
• Online sales information and customer
• Reduced printing and information
• Feedback from customers on
distribution costs of marcomms
products
Slide 4.16
Grid of product suitability against market adoption for transactional

Figure 4.10
e-commerce (online purchases)
Slide 4.17
An example of a performance measurement system for an

Figure 4.11
e-commerce electrical goods retailer
Source: Based on Friedlein (2002)
Slide 4.18
An example of the relationship between objectives, strategies and

Table 4.5
performance indicators
Slide 4.19
Figure 4.12 Using the Internet to support different organisational growth strategies
Slide 4.20
Figure 4.13 Smile (www.smile.co.uk)
Slide 4.21
Figure 4.14 Dell Ideastorm (www.ideastorm.com)

Source: © 2012 Dell Inc. All Rights Reserved.
Slide 4.22
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 4.23
Figure 4.15 Stages in target marketing strategy development
Slide 4.24
Figure 4.16 Dell Singapore site segmentation

Source: www.ap.dell.com/content/default.aspx?c=sg&1=en&s=gen. © 2012Dell Inc. All Rights Reserved.
Slide 4.25
Figure 4.17 Customer lifecycle segmentation
Slide 4.26
Figure 4.18 Euroffice email (www.euroffice.co.uk)

Source: Adapted from the company website press releases and Revolution (2005a)
Slide 4.27
Figure 4.19 Alternative positionings for online services
Slide 4.28
WeBuyAnyCar (www.webuyanycar.co.uk) clearly communicates its

Figure 4.20
proposition
Slide 4.29
Strategic options for a company in relation to the importance of the

Figure 4.21
Internet as a channel
Slide 4.30
Figure 4.22 Flow chart for deciding on the significance of the Internet to a business
Source: after Kumar (1999)
Slide 4.31
Figure 4.23 Influences on customers of multichannel decision making

Source: adapted from Dholakia et al. (2010)
Slide 4.32
Channel coverage map showing the company’s preferred strategy for

Figure 4.24
communications with different customer segments with different value
Slide 4.33
Figure 4.25 Options for location of control of e-commerce

Source: Econsultancy (2008)
Slide 4.34
Figure 4.26 Example of risk–reward analysis
Slide 4.35
Table 4.7 Online performance management grid for an e-retailer

Source: Adapted from Neil Mason’s Applied Insights (www.applied-insights.co.uk) Acquisition, Conversion, Retention approach

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Slide 4.

• Relate digital marketing strategy to marketing

Questions for marketers

• What approaches can be used to create digital

What is a digital marketing strategy?

Digital marketing strategy essentials

• Digital marketing strategy is a channel strategy

Figure 4.1 Internal and external influences on digital marketing strategy

Figure 4.2 Hierarchy of organisation plans including e-marketing plans

The SOSTAC® planning framework applied to digital marketing strategy

Figure 4.4 A digital marketing capability model

A generic digital channel-specific SWOT analysis showing typical

An example of a digital channel specific SWOT for an established

Figure 4.9 Will Wynne, Arena Flowers (www.arenaflowers.com)

Internet marketing benefits

Grid of product suitability against market adoption for transactional

An example of a performance measurement system for an

An example of the relationship between objectives, strategies and

Figure 4.13 Smile (www.smile.co.uk)

Figure 4.14 Dell Ideastorm (www.ideastorm.com)

Common online targeting options

– Brand loyalists – convert online

Figure 4.15 Stages in target marketing strategy development

Figure 4.16 Dell Singapore site segmentation

Figure 4.17 Customer lifecycle segmentation

Figure 4.18 Euroffice email (www.euroffice.co.uk)

Figure 4.19 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

Figure 4.23 Influences on customers of multichannel decision making

Channel coverage map showing the company’s preferred strategy for

Figure 4.25 Options for location of control of e-commerce

Figure 4.26 Example of risk–reward analysis

Table 4.7 Online performance management grid for an e-retailer

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