Digital Marketing Fundamentals

From Strategy to ROI

Marjolein Visser, Berend Sikkenga, Mike Berry

• Publisher: Routledge
• Year: 2019
• Print ISBN: 9789001887124
• eBook ISBN: 9781000035322
• Edition: 1
• Topic: Business
• Subtopic: Marketing
• Index: Business

Digital Marketing Fundamentals is the first comprehensive digital marketing textbook to cover the entire marketing process. The academic theory behind Digital Marketing, as well as techniques and media, isdiscussed. Digital Marketing Fundamentals is easy to read and contains many international examples and cases. The Dutch version of this book ( Basisboek Online Marketing ) has become a standard issue in The Netherlands.

In this book, all relevant aspects of digital marketing are addressed: strategic aspects, the use of the Internet for market research, product development and realisation, branding, customer acquisition, customer loyalty and order processing. The book also discusses effective websites and apps, digital analytics and planning, and management. The application of social media and mobile communications is seamlessly integrated into the topics.

Digital Marketing Fundamentals is suitable for commercial and management courses in higher education, including universities and business schools, and for professionals working in digital marketing.

To request access to the book's online resources, please click here: http://www.digitalmarketing.noordhoff.nl

For FAQs: https://www.basisboek-onlinemarketing.nl/faq-lecturers.html

1
Digital Marketing

Author: Marjolein Visser

Over the past decades the framework of marketing has changed dramatically. Internet use has become part of the daily routine for most people. It has radically transformed the behaviour of consumers and business buyers. Knowledge of online consumer behaviour and Digital Marketing are vital to marketers. The modern marketer not only needs to know how Digital Marketing communication works; but also how he or she can make use of the Internet for the purpose of product realisation, market research or distribution. This first chapter will explain what Digital Marketing involves and which basic principles are adhered to in this book. The following chapters will describe the involvement of Digital Marketing within all of the other marketing related business processes. The last chapters of this book describe overarching subjects such as effective websites, digital/web analytics and the planning and organisation of the Digital Marketing process.

After reading this chapter you will be able to:

• explain what Digital Marketing involves
• identify the differences between traditional marketing and Digital Marketing
• name and recognise ‘the seven types of websites’
• denote the relationship between the four Ps and the four Cs
• describe the five Digital Marketing-related core business processes

1.1 Definition of Digital Marketing

Kotler and Armstrong (2013) define marketing as follows: ‘Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.’ Peter Drucker (1973), a famous management guru, defined the purpose of marketing as follows: ‘The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself’.

According to Kotler, marketing is an integrated process that companies use to create value for customers and to build strong customer relationships in return for a reciprocation of value from their customers. In many instances, products or services are traded for money, but alternative exchanges are also possible. For example, political parties that trade ideological representation of interests for votes or brands that trade interesting/valuable content for the user’s time and attention.

The Internet plays an ever-increasing role within the marketing process. Digital Marketing is a sub-process of marketing. Therefore, we can define Digital Marketing as a process in which organisations and existing or potential customers use the Internet to create value and products as well as interchange them. In this respect we do not discriminate between the various ways that the Internet is accessed and the device on which the Internet is viewed. Whether a computer or a smartphone is used is of importance to the applied technological methods, but not to the marketing principles. Internet marketing, online marketing and e-marketing are all synonyms for Digital Marketing. In this book, we will use ‘Digital Marketing’.

Ecommerce

One frequently asked question remains: what is the difference between Digital Marketing, ecommerce and ebusiness? ecommerce refers to selling products or services over the Internet. Customers can complete transactions or submit changes using a website. This book considers ecommerce to be one of the possible options within Digital Marketing. Many organisations do approach their customers over the Internet, but don’t sell their products online. In this case it is a question of Digital Marketing communication, an element of Digital Marketing, but not of ecommerce.

Ebusiness

The authors of this book see ebusiness as a way of doing business with the assistance of digital technologies. Ebusiness is a wider concept than Digital Marketing and ecommerce. In ebusiness it’s not only about the interaction with markets, but about adequately establishing all of the processes that enable an organisation to make their products or provide their services. It’s about the front and the back of the organisation, the parts the customer does not come into contact with (see figure 1.1). Ecommerce is simply defined as ‘selling and buying online’.

Figure 1.1 Ebusiness encompasses digital processes throughout the entire organisation and is more inclusive than Digital Marketing

1.2 Digital Marketing versus traditional marketing

Digital Marketing is becoming increasingly important. According to research conducted by consultancy firm Deloitte, marketing managers expect to spend two thirds of their media budget online by 2020 (Deloitte, 2017).

As a result of the growing number of possibilities regarding digitalisation and interactivity that the Internet facilitates, a number of marketers’ dreams have become reality. When used wisely, the Internet makes marketing more effective: marketing objectives can be met with less effort. Consider the following possibilities:

• Thanks to the Internet, the customer’s demands for information are more easily and simply met.
• The Internet allows for the provision of tailor-made information.
• The Internet offers the possibility of gathering large quantities of data about potential customers.
• The effects of marketing communications on the Internet can (in most cases) be easily measured
• A high level of interactivity with customers is possible.

Also, Digital Marketing can be more efficient than traditional marketing. For example:

• It is possible to share large quantities of information with potential customers at low cost.
• The marketing budget can be more purposefully assigned due to the fact that the effects of marketing communications are (in general) more easily measurable.

One-to-one marketing

Individual

The Internet has accelerated the transition from mass marketing to one-to-one marketing or individual marketing. The aim of individual marketing is to fully tailor products or marketing efforts to the individual customer.

Individual proposition

Because the Internet allows for the customer’s individual data to be saved, communications has become increasingly ‘personalised’. The profile of the individual customer is recognised; thus, they receive a ‘personalised offer’, an individual proposition. That way a travel agency can offer a customer, who is recognised in their database as someone who likes to take his/her children to a theme park, a last-minute deal for Disneyland Paris. Simultaneously, an older couple that enjoy walking are offered a peaceful holiday in the Austrian Alps.

Individualised production

The Internet makes individualised production easier. On the Internet, you can design T-shirts or greetings cards with a personalised image on them, You can even design your own brooch and have it printed in 3D. Digitised services mean users can seek advice or information at any time: even in the middle of the night you can ask your bank for a statement or pay a bill; the Internet and world wide web are ‘always-on’ 24/7. Individualised distribution of ordered goods or services is relatively cheap and often highly effective via the Internet. When you book a flight online for instance, you can either print your ticket yourself or access it on your smartphone via the airline’s own app. A package from Amazon.com is delivered to your doorstep the following day; you don’t have to go to the store for it; moreover, you get helpful messages regarding the status of your order.

The website is at the centre of Digital Marketing. Websites can be classified as follows:

Corporate sites

• Corporate sites are aimed at supporting interaction ...

Table of contents

• Cover
• Title
• Copyright
• Preface
• Contents
• 1 Digital Marketing
• 2 Strategy and Business Models
• 3 Market Sensing
• 4 Product Realisation
• 5 Customer acquisition: digital branding
• 6 Customer Acquisition: recruiting visitors through owned or earned channels
• 7 Customer acquisition: recruiting visitors through paid channels
• 8 Customer acquisition: sales and pricing
• 9 Order processing
• 10 Customer relationship management
• 11 Designing effective websites
• 12 Digital analytics
• 13 Planning and organisation
• References
• Illustrations
• Index
• About the authors