Marketing virtualization
– Impact on the concept of marketing from transactional, through relationship to social marketing
– Impact on marketing mix changes in the marketing tools and actions
– Impact on marketing management new competences of managers, new ways of organizing marketing activities, real-time marketing, marketing of the moment, virtual marketing teams etc.
set of actions and instruments for encouraging the client to purchase
e-trader, user, reviewer, innovator, brand ambassador, adviser
Internet as:
– Advertising medium (awareness, attitude to particular brand)
– Direct response medium
– Trade platform
– Lead collection
– Distribution channel (bricks and clicks)
– Customer service platform
– R&D platform (crowdsourcing)
internet marketing faces many hardships:
o Unclear responsibilities
o No objectives set
o No measurement
o Insufficient budget
o Superiority of offline actions
o Experimental approach (rather than planned)
SEO, PPC, Media Purchase
Social Media, E-mail Marketing
core of organization’s presence in on-line environment
task of each website
to convince and to encourage its users to perform a specific action
reasons to change/develop a new website
– The old one is out-of-date
o Technologically (no CMS, flash)
o Visually (new trends)
o New possibilities and expectations (mobile, RWD)
o New needs
o New potential (e-commerce)
o New expectations from the CEO’s wife
– New products
– Rebranding
– Organizational change
– New agency
Initiation of the Web Site Project
– there is management and staff commitment to the project
– objectives are clearly set
– the costs and benefits are reviewed
– the project will follow a structured path
– the implementation phase must ensure all important aspect (e.g. politics, organization culture)
Web site creation – steps
1. Analytical phase
2. Interactive brief preparation
3. Contest – agency selection
4. Design
5. Testing
6. Launch and promotion
Analytical phase
1. Models of execution
2. Alignment with the strategy
3. Target groups – personas
4. Marketing objectives
5. Benchmark
Outside-in model
starts using new DM tech by outsourcing where there is an insufficient in-house experience; then company builds skills internally to manage these areas as DM becomes and important contributor to the business – driven by the need to reduce costs of outsourcing, etc.
Inside-out model
implement DM using existing resources within the IT department and marketing department in conjunction with recruitment of digital media specialists
Site sponsor
senior managers who will effectively be paying for the system for their budgets
who is involved in the process of web site project?
– Site sponsor
– Site owner
– Project manager
– Site designer
– Content developer
– Webmaster
– Stakeholders
Site owner
responsibility of the marketing manager or e-commerce manager, who may be devoted full-time to over-seeing the site in a large company
Project manager
responsible for the planning and coordination of the website project
Site designer
define the ‘look and feel’ of the site including its styling through CCS, layout, and how company brand values are transferred to the web
Content developer
write the copy for the website and convert it to a form suitable for the site
technical role; ensuring the quality of the site; availability, speed, working links between pages and connections to company databases
internal staff; website has impact on other members of the organization
Strategy of an organization – major mistakes
1. Unclear responsibilities
2. No clear objective set
3. Insufficient budget
4. Internet as unimportant medium
5. No measurement of success
6. Short term planning (not strategic one)
7. Tacit knowledge, centred, not disseminated
Target group
– The analysis of the target group (marketing data, reports, customer service analysis, Google Analytics)
– The analysis of the target group’ needs and expectations
RACE Model
Goal Setting: SMART
o Specific
o Measurable
o Attainable
o Relevant
o Time-bound
Benchmark factors:
– Financial performance
– Market performance
– Business and revenue models
– Marketing communications techniques
– Services offered
– Implementation of services
Quantitative measuring
Brief Preparation
– Introduction (brand, project aim, contact details)
– Company characteristics
– Competition
– Target audience
– Project goals
– Tone of communication and creative ideas
– Expected users reaction
– Specifying the offer
– Technological requirements
– Additionals
– Initial schedule
– Budget
two kinds of projects:
A. Difficult (when client knows what he wants)
B. Extremely difficult (when client doesn’t know what he wants)
How to choose – the evaluation of offers
1. Achievements
2. Team
3. Strategy
4. Creativity
5. Technology (CMS)
6. Costs and modes of cooperation
Composition – Website layouts
1. Z-layout
2. Eye tracking and mouse tracking
3. F-layout
RWD (Responsive web design)
the web site adapts automatically to the resolution of the device
extent to which a web site can be used by specified users to achieve specific goals with effectiveness, efficiency and satisfaction
Usability testing involves:
– Identifying representative users of the site
– Asking them to perform specific tasks on the site
– Observing what they do and how they succeed
Web accessibility
allowing all users of a web site to interact with it regardless of disabilities they may have or the web browser they are using to access the site
Main arguments in favour of accessibility are:
– Number of visually impaired people
– Number of users of less popular browsers or variations in screen resolution display
– More visitors from natural listings of search engines
– Legal requirements
– Visitors using dial-up internet access
CMS (Content Management System)
system designed to simplify the publication of web content to web sites, in particular, allowing content creators to create, submit and manage contents without requiring technical knowledge of any programming or mark-up languages or the uploading of files
Selected CMS advantages:
– Automation, diversification and outsourcing of development
– Definition of publishing date
– Workflow
– Recording changes
– Dispersed environment of collaboration
– Integration with other platforms (Intranet, newsletter, surveys, etc.)
– Ease of modification and development for non-programmers
– Control over implemented changes
Development and testing
– Testing content
– Testing navigation
– Testing structure
Search Engine Marketing
promotion of website by increasing their visibility in search engine results pages; may incorporate SEO; online visibility activities or PPC
E-marketing Metrics
CTR= (number of clicks)/(number of hits)*100%

CR= (number of users who went through a specific action)/(number of users @visiting site)*100%

CPA= (cost of web promotion)/(number of actions)

CPC= (cost of web promotion)/(number of clicks)

Stickiness/Slipperiness ratio
Describes the time average user spends on web site or its specific part
capability to hold the user on the web site thanks to its unique content and functionality; power to hold user’s attention on the website
Focus index
says to what extent is the web site used by average user; o Can be situated between <0,1>
Closer to 0 – visit is focused
Closer to 1 – visit is widespread
Successful connection ratio
describes the real effectiveness of the advertising actions; Analysis of the ratio shows how many of the clicks are lost due to technical reasons

SCR= (number of visitors coming on the website via e-promotion)/(number of clicks in e-promotion tools)

KPI Examples
– Average number of pages during the visit
– % of visits via search engines
– The average order value
– The average number of items in a single order
– Number of subscribed users after newsletter sending
Real Time Marketing
based on up to date events; creating a strategy focused on current, relevant trends, and immediate feedback from customers; goal of real time marketing is to connect consumers with the product or service that they need now, in the moment
Influencer Marketing
focus is placed on influencers – individuals that have influence over potential buyers – rather than the target market as a whole
Who is influencer?
– Someone who brings together a group of loyal customers
– Person liked and trusted, reliable
– Involving and engaging the audience
– Actively willing to share his/her opinions
Digital influencer
person with ability to create an effect, change opinions and behaviours and drive measurable outcomes; steady job, normal family, community, authority, digital world
being celebrity, family? It’s complicated, stalkers, know nothing, legacy media
influencers are important
1. Native advertising
2. They use Social Media
3. They are powerful
4. Targetable and trackable
5. It helps your SEO
6. Consumers are tired of paid Ads
7. It’s trending
Marketing potential of influencers
– Film or a series of promotional films – reviews, unboxing, presentations
– Product placement
– Channel branding
– Exclusive brand promotion for a specific time
– Connecting YouTube with other social media – Facebook, Instagram, Twitter and streaming services – Twitch
– Participation in events
– Strengthen the campaign for the display network
Influencers go beyond digital
– Writing books
– Prelections
– Live events
– Workshops
– Visibility in mass media (TV, reality shows)
How to identify a potential influencer?
– Rankings
– Social media listening tools
E-mail marketing
“granddaddy” of Internet media
– Process of directly marketing a commercial message to a group of people using e-mail
– Can be done to either sold lists or a current customer database
Transactional e-mails
usually triggered based on a customer’s action with a company
Direct e-mail based marketing
involves sending an e-mail solely to communicate a promotional message
COI e-mail
message sent to clients expecting and opting-in for receiving frequent information about the company/brand
Marketing Automation
enables business to automate tasks and workflows for the marketing and sales process, including prospect and customer profiling on landing pages, lead scoring, sending automated personalised emails and web recommendations to support lead nurturing and customer engagement
3 Phases of e-mail marketing usage
I generation – SPAM
II generation – PERMISSION
III generation – ENGAGEMENT
SPAM – unsolicited e-mail
– Purchasing of data bases from unreliable sources
– Neglecting the standards of data collection (for example bot usage)
– Unavailability of unsubscribing
– Sending unexpected correspondence
– Not obeying the standards and legal requirements
Four levels of permission:
– Opt-out
– Opt-in
– Double opt-in
– Confirmed opt-in
cost effective tool of direct communication, focused preferably on customer retention rather than acquisition
targeted at existing clients expecting frequent communication with the brand
The e-mail
– The sender (max 25 characters)
– The subject line (50 characters) – personalization possible
– Preheader (the first sentence)
– Unique selling points in copy
– Design aligned with the creative line of the brand
– 50kb
E-mail Campaign – to put it in other words…
1. Collect or purchase the e-mail list
2. Segment the list
3. Establish communication schedule
4. Develop objectives
5. Write compelling copy/copies
6. Structure your e-mail/e-mails
7. Create links
8. Make it easy and intuitive
9. Test and revise
10. Send – measure
11. Integrate learning into next campaign
Behavioural targeting to those who…
– Opened particular e-mail
– Didn’t open at all
– Opened and clicked in particular link
– Opened and clicked in tagged link
– Opened and didn’t click in any link
– Went through some specific action
Or based on…
– Location of e-mail subscriber
– Location of e-mail subscriber data
Tracking and measurement
– Number of e-mails sent
– Number of e-mails opened (open rate)
– Bounces (hard – 2 and soft 3-10) (delivery rate)
– Number of openings
– Number and location of clicks
– Number of unsubscribed clients after the campaign
companies that have $1B value after their 1st year
consumer helps the creator produce actual products e.g. games, apps
Web 2.0 – 2004
social media appears
Web 3.0
more intelligent ways of using internet
Online Marketing Funnel (RACE Model)
Reach – # of users coming to the website
Action – conduct activities on website that encourage visitors to become our client
Convert – # of users leaving their e-mails
Engagement – # of users engaging with the content
Digital marketing
achieving marketing objectives through applying digital technologies and media
Paid media
bought media where there is investment to pay for visitors, reach or conversions through search, display ad networks or affiliate marketing; similar to TV and print ads
Owned media
media owned by the brand e.g. company’s own website, blog, email list, mobile apps, social presence of FB, LinkedIn, or Twitter; similar to brochures in retail stores
Earned media
WOM that can be stimulated through viral and social media marketing, and conversations in social networks, blogs, and etc.; could be conversations between consumers and businesses occurring both online and offline
Target marketing strategy
evaluation and selection of appropriate customer segments and the development of appropriate offers
statement of the benefits of online services that reinforces the core proposition and differentiates from an organization’s offline offering and those of competitors
Digital marketing strategy
channel marketing strategy and it needs to be integrated with other channels as part of multi-channel marketing
Benefits of digital marketing
Identifying – internet can be used for marketing research to find out customers’ needs and wants
Anticipating – the Internet provides an additional channel by which customers can access information and make purchases – evaluating this demand is key to governing resource allocation to e-marketing
Satisfying – key success factor in e-marketing is achieving customer satisfaction through the electronic channel
Internet can potentially be used to achieve four strategic decisions
1. Market penetration – sell more existing products into existing markets
2. Market development – used to sell into new geographical markets, taking advantage of the low cost of advertising internationally without the necessity for a supporting sales infrastructure in the customers’ countries
3. Product development – digital products delivered through internet
4. Diversification – supports selling new products which are developed and sold into new markets
Three main forms of demand expansion for an existing company in Internet adaptation
1. Market expansion – new segments of customers are reached who did not previously buy in a category
2. Brand switching – winning customers from competitors
3. Relationship deepening – selling more to existing customers
7S Framework
Strategy – significance of DM in influencing and supporting the organization’s strategy
Structure – modification of organizational structure to support DM
Systems – development of specific processes, procedures or information systems to support digital marketing
Staff – breakdown of staff e.g. IT vs marketing
Superordinate goals
Key types of digital media channels:
1. Search engine marketing
2. Online PR
3. Online partnerships
4. Display advertising
5. Opt-in e-mail marketing
6. Social media marketing
Search engine marketing
placing messages on a search engine to encourage click through to a website when the user types a specific keyword phrase e.g. PPC or placements
Online PR
maximizing mentions of your company/brand/products on third party websites e.g. social networks, blogs
Online partnerships
creating and managing long-term arrangements to promote your online services on 3rd-party websites or through email communications; including affiliate marketing (commission-based referral), co-branding and sponsorship
Display advertising
use of online ads such as banners and rich media ads to achieve brand awareness and encourage click-through to a target site
Opt-in e-mail marketing
renting e-mail lists or placing ads in 3rd party e-newsletters or the use of an in-house list of customer activation and retention
Social media marketing
companies participate and advertise within social networks to reach and engage their audience
– Important category of DM which involves encouraging customer communications on a company’s own site, or social presences such as Facebook or Twitter or in specialist publisher sites, blogs and forums
Social Media Marketing Tools
1. Social networks – the core social platforms in most countries where people interact through social networks are Facebook for consumer audiences, LinkedIn for business audiences, Google+ and Twitter for both
2. Social publishing and news
3. Social commenting in blogs
4. Social niche communities
5. Social customer service
6. Social knowledge
7. Social bookmarking
8. Social streaming
9. Social search
10. Social commerce
Benefits of digital media (4Is)
1. Interactivity – pull mechanism is important to have good visibility in search engines when customers are entering search terms relevant to a company’s products or services
2. Intelligence – DM is a low-cost method of collecting marketing research
3. Individualization – can be tailored to the individual to achieve relevance in all media (personalization)
4. Integration
5. Industry restructuring – disintermediation and reintermediation
6. Independence of location
Inbound marketing
customer is proactively seeking and interactions with brands are attracted through content, search and social media marketing
Outbound internet-based communications
from organization to customer
Inbound internet-based communications
from customer to organizations
Further benefits of digital communication in terms of deploying campaigns:
1. Accountability – through the use of measurement systems known as web analytics
2. Testing – becomes more straightforward at a lower cost with the option to trial alternative creation executions, messaging or offers
3. Flexibility – capability to change copy or offers during a campaign
4. Micro-targeting – alternative messages can be delivered for different audiences according to what they are searching for
5. Cost-control – costs can be controlled for each group of search terms, managed collectively, and bids made can be increased or decreased with the aid of software
Key challenges of digital communication
1. Complexity
2. Responding to competitors
3. Responding to changes in technology and marketing platforms
4. Cost
5. Attention
Key communications concepts for digital marketing
1. Customer engagement – key challenge with DM
2. Permission marketing – seeking customer’s permission before engaging them in a relationship and providing something in exchange
3. Content marketing – elements need to be managed:
a. Content engagement value
b. Content media – plain text vs. images
c. Content syndication
d. Content participation – should enable commenting, ratings and reviews
e. Content access platform – desktop, mobile, print, etc.
Prototype stages:
A. Discovery or analysis – understanding the requirements of the audience of the site and the requirements of the business, defined by business and marketing strategy
B. Design – specifying different features of the site that will fulfill the requirements of the users and the business as identified during analysis
C. Develop – creation of the web pages and the dynamic content of the website
D. Test and review – structured checks are conducted to ensure that different aspects of the site meet the original requirements and work correctly
Level of localization:
a. Standardized website – single site serves all customer segments (domestic + international)
b. Semi-localized websites – single site serves all customers – contact information about foreign subsidiaries is available for international customers
c. Localized websites – country-specific websites with language translation for international customers, wherever relevant
d. Highly localized websites – country-specific websites with language translations; they also include other localization efforts in terms of time, date, postcode, currency formats, etc.
e. Culturally customized website – complete immersion in the culture of target customer segments
Benchmarking should include:
a. Financial performance – available from intermediary sites
b. Conversion efficiency – sites can be compared to published results of average conversion rates
c. Marketplace performance – market share and sales trends and the proportion of sales achieved through the Internet
d. Business and revenue models
e. Marketplace positioning – elements of the marketing mix
f. Marketing communications technique – CVP clear?…
g. Services offered – what is offered beyond; level of online customer support
h. Implementation of services – practical features of a site design e.g. aesthetics, ease of use, personalization, navigation, availability and speed
Mobile design considerations and technique
A. Simple mobile site (different content) – quickest method; create a completely separate mobile site which has a different design, build, hosting, and content
B. Screen-scrape (same content) – dropping existing content into a basic mobile site template without opting for back-end integration; presents a quick route to market
C. Responsive design (same content, different mobile styling – automates the overlay of contextually relevant content matching the profiles of mobile users to maximize engagement and to optimize sales conversion
– Fluid design – layout flows as resolution is changed
D. HTML5 site (same content, different mobile styling) – more cost-effective and less labor-intensive than building different native apps
E. Adaptive design (potentially different content, different styling on different mobile devices – hybrid approach combining different client and server-based logic to give the best performance with the best experience on priority devices without the speed limitations of responsive approach
Push media
traditional media e.g. TV and radio
Pull media and inbound marketing
DM activities like content, search, and social media marketing
reaching a niche or micro-segment becomes more practical – e-marketers can afford to tailor and target their message to different segments through providing diff. site content or email for different audiences through mass customization and personalization
customers interact with other customers via a website, in independent communities or on their personal websites and blogs
customer wants to be in control and wants to experience flow and responsiveness to their needs
PPC advertising
display of ads can be controlled according to user need based on what searchers are looking for and cost is only incurred where interest is indicated by a click
Affiliate marketing
pay-per-performance communications technique where cost is only incurred where there is a response
SEO main processes:
crawling, indexing, ranking, and query request and results serving
Offline promotion
involves promoting the website address, highlighting the value proposition of the website, and achieving web response through traditional media advertisements in print or on television
direct response medium
internet as: targeted search advertising enables companies to drive visits to a site when consumers shows intent to purchase
advertising medium
internet as: display ads on publisher sites or social networks can be used to create awareness of brands and demands for products or services
trade platform
internet as: online flight booking is now the most common method for booking flights
customer service platform
internet as: FAQs allow customer to self-serve
influencers are powerful
influencers drive a sale more effectively than a warm word-of-mouth recommendation; study by McKinsey found that “marketing-induced consumer-to-consumer word of mouth generates more than twice the sales of paid advertising.” And of those that were acquired through word-of-mouth had a 37% higher retention rate
influencers are targetable and trackable
influencers: decisions without data are shots in the dark at best. For decades, the advertising industry was limited to shooting in the dark, having only access to traditional strategies that yielded murky information about audience reach, sales funnel influence, and branding impact
influencers help your SEO
influencers: on top of building of your brand and improving your sales numbers, influencer marketing also helps your search engine ranking. According to The Social Media Revolution, user generated social posts account for 25% of search results for the world’s top 20 brands. The more people mention your brand on social media, the more popular and relevant you will be on Google
consumers are tired of paid ads
Consumers are tired of paid Ads – accdg. to research firm Yankelovich, the average American is exposed to 5,000 advertisements a day. Whether or not that number is scientifically proven, it gets the point across: we are exposed to A LOT of ads
I generation – SPAM
phase of email marketing usage – High volume/low cost, send and forget, not relevant
II generation – PERMISSION
phase of email marketing usage – segmented, relevant, added value
III generation – ENGAGEMENT
phase of email marketing usage – individualized, personalized, transaction or dialogue based
# of users coming to the website
conduct activities on website that encourage visitors to become our client
# of users leaving their e-mails
# of users engaging with the content

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