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Digital Marketing: New Strategic Thinking CSULB MKTG 437 Scott W. Flexo, Ph.D. Strategy and Tactics A strategy is a plan of action designed to achieve a specific goal. Strategy is all about gaining (or being prepared to gain) a position of advantage over adversaries or best exploiting emerging possibilities. A Digital Marketing Plan describes the strategy including the objectives of the plan. A tactic is a conceptual action implemented as one or more specific tasks to actualize the strategy. Actions taken to implement the digital marketing plan. What Goes Into a Digital Marketing Strategy? 1. 2. 3. A thorough understanding of the market, Clear understanding of who to target and how target uses digital marketing, Grasp of how your business can best use the new technologies to build relationships with consumers. Three Phases of Strategic Planning: #1: Trial Phase Trial Phase: Firms are testing social media platforms; learning how to use them; Focus is on learning about the media platform not incorporating it into a marketing strategy. Thousands of brands have Facebook pages that have been abandoned. This is evidence of a trial phase. Three Phases of Strategic Planning: #2: Transition Phases Transition Phase: Digital media marketing activities begin to become strategic; Media content and integration appears somewhat haphazard, but there is also evidence of some systematic thought in the development of the materials and the outlines of an integrated and systematic approach. Three Phases of Strategic Planning: #3: Strategic Phases Strategic Phase: Formal process is developed; digital media appears planned and consistent across platforms; objectives are clearly understood and measurement metrics are established; digital media is integrated into offline marketing and into the firm’s overall marketing plan. To Be Strategic What You Need to Know Know Your Business: Are products and services suited to go online – Nearly all are, but some in unique ways. Know Your Competition: What are your competitors doing online – what's right/what's wrong. Know Your Customers: Who is your target for the online campaign and what do they want from the experience. Know What You Want to Achieve: Where are you going with the digital strategy and can it be measured? Know How You Doing: Develop ways to continually measure and improve upon the strategy and campaign. Important Advice When Constructing Your Plan Digital Marketing: Page 23 "The process of formally defining your digital marketing strategy forces you to sit down and analyze the market in which you're operating with a critical eye, and to really think about the different components of the business and how digital marketing can help." More Good Advice "Don't get bogged down in technical details at first – digital marketing is about people communicating with other people; the technology is just the stuff in the middle that helps it happen." The Digital Consumer: Demographics Very different from the general population: Younger (90% 18-29yr vs. 46% 65+yr) Richer (96% $75k+ vs. 63% <$30k) More Educated (93% College+ vs. 40% No College) Urban/Suburban (80% vs. 68% Rural) The Digital Consumer: Characteristics Comfortable and proficient with medium Accustomed to getting information on demand, quickly, with little effort. In control, used to user centric content, elective and permission based. Vocal about experiences, talking a lot online with each other about their experiences Digital Marketing and the 4Ps Place: It's the Internet, but also the page, address, web location that matter. Is it consistent with consumer demands/benefits/desires? Price: Pricing is transparent on the Internet, so to compete must offer the best value proposition – the best balance between product quality and options, and pricing. Product: Consumers seek to develop product offerings online and to control the product development process. Failure to meet expectations may lead to online backlash and possible product /brand death. Digital Marketing and Promotions Promotion is everything done online (and offline) to get products in front of consumers, to acquire new customers and retain existing ones. The marketing plan and tactics that you employ in your projects will focus almost exclusively on Promotion. What are the unique elements of promotion in the digital marketing sphere? Digital Marketing Promotion The Website – Hub of digital world Search Engine Optimization (SEO) – Part of the website, the process of aligning content on the website to maximize favorable search results. Pay-Per-Click-Advertising (PPC) – Using ad dollars to buy search engine results for certain key words or phrases. Search is (still) the #1 way consumers will find your website and most digital marketing $ today are (still) spent on search. Digital Marketing Promotion Online PR: Using online channels (free media) like press releases, articles, blogs, to create a positive impression of the brand or product. Social Networking: Uses social media sites such as Facebook, Twitter, YouTube, etc., to build brands and promote products. Most plans today involve a large social media presence. Mobile Marketing: The new, up and coming digital marketing platform, where consumers have access to content anytime and anywhere! Offline Promotions Don't forget the importance of offline advertising and promotions to help support your online activities. Telling people about your presence on Facebook, LivingSocial, etc., using traditional media is still important to "get the word out" about your social media campaign. Digital Marketing: Ultimate Goal Building mutually rewarding, enduring connections and relationships with prospects and customers. Please keep this in mind whenever creating a digital marketing plan (strategy) and associated tactics (i.e. Facebook, Youtube, etc.) Web 2.0 Building relationships through digital marketing broadly defines the current era dubbed Web 2.0. Web 1.0: Applying traditional one-way communication onto the web space. Web 2.0: Recognizing a "culture of participation" spurred by online technology allowing for interactive capabilities, user control, freedom and dialogue. Defining Social Media Marketing Forms of Media Marketing Traditional Marketing TV Broadcast, Print, Radio Outdoor, Flyers Push Orientation, Interruption, Mass Media Defining Social Media Marketing Forms of Media Marketing Tradigital Marketing (Web 1.0) Banner Ads, E-Mail Mktg, Search Mktg Targeted , Personalized, Push, Interruption Defining Social Media Marketing Forms of Media Marketing Social Media Marketing (Web 2.0) Networks, Communities, Blogs, Microblogs Niche, Pull (Content Attracts), Interactivity, Sharing, Participatory, Dialogue Companies and consumers discuss, contribute, collaborate and share. Focus is on niche or micro-targets Pull consumers to sites and keep them there with interesting and relevant content and ways to socialize and interact with other consumers Entirely new marketing model over the "push" model which was one-way, interruption model of marketing/communication. Social Media Marketing Social Media Marketing is at the core of Web 2.0. The use of social media to facilitate exchanges between consumers and organizations. For marketers it provides inexpensive access to consumers and a variety of ways to interact and engage them at different points in the purchase cycle. Four Zones of Social Media 1. 2. 3. 4. Social Community: Sharing, socializing and conversing. Social Publishing: Editorial, user content, commercial content Social Entertainment: Games, music, art. Social Commerce: Services, retailing, sales Social Communities Channels of social media focused on common activities people participate in with others who share the same interest. All social media to this, but this is the primary reasons for the existence of a social community Features: Multi-way communications, conversations and collaboration, and the sharing of experiences and resources. Twitter, Facebook, LinkedIn, Google+, Wikis Social Publishing Dissemination of content to an online audience. Features: Blogs, mircoblogs, media (video, photo, audio, documents) sharing, news sites. Blogger, Blogspot, YouTube, Flicker, Shutterfly, HuffingtonPost Social Entertainment Opportunities to play games with others. Most advanced channel, including social gaming with interaction among players, online gaming profiles, and virtual worlds. Come2Play, Second Life, Zynga, MySpace Social Commerce Use of social media to facilitate online buying and selling of products and services. Features: Social shopping behaviors, online shoppers interact and collaborate with reviews, ratings, deal sites, deal aggregators, social shopping markets, social storefronts (operating inside social sites), and online malls. LivingSocial, Groupon, TripAdvisor, Kayak Learning Activities Open Computers – Go to the following link: http://www.coca-colacompany.com/stories/online-social-media-principles Write done answers to the following: 1. Read the 5 Coca Cola commitments to social media. 1. 2. Read the personal use of social media expectations for employees and associates. 1. 3. Write down the 5 words used to describe Coco Cola’s commitments to the public and its expectations for its employees and associates. Can you add any? Would you subtract any? Do you agree or disagree with these policies? Would you add or subtract anything? If you worked at Coca Cola would you follow these directives or do you feel freedom of speech is paramount? Click the link: Five Tips For Using Social Media to Advance Your Career – Read these Tips Provided by Coca Cola 1. Do you agree or disagree with these recommendations? Would you add or subtract any? Would you adhere or not adhere to these recommendations? Please explain why. Learning Activities Go online and find example web sites that you feel satisfy each of the strategy phases in digital marketing: Trial Phases – Example Transition Phases – Example Strategy Phases – Example For each write down the site address and provide a brief explanation as to why you place this into one of the three phases. Digital Market Planning