MKTG 476 Exam 2 (chpts 4-6)
WEEK 4 LECTURE: MKTG 476 (CH. 4) PLANNING THE DIGITAL STRATEGY
The Planning Process
Where are we now
Where do we want to get to?
How do we get there?
Vision-based Planning
Creatine a vision and following a clear, six-stage process to deliver it
Vision → mission → goals → objectives → strategies → action plans → executive & evaluate
Real-time Planning
Vision → mission → [goals → objectives → strategies → action plans] [these are fluid and can change] → executive & evaluate
Vision vs. Mission
Vision statement
Expressing the organization’s desired aspirational state
Mission statement
Expressive organization’s current state
How to structure digital marketing strategy
Goals
High-level statements about what needs to be achieved in order to fulfill vision
The 4 Rs
Relevant – goal must be relevant to the industry or world that we want to play a role in
Resonating – especially with stakeholders, with the company, employees, management, and your audience
Responsive – can have some adjustments should some circumstances dictate
Recognizable – easy to understand
Objectives
Specific, quantifiable and time-limited steps necessary to meet overarching goals
SMART
Specific
Measurable
Attainable
Relevant
Time-based
Example: overarching goal – increasing our sales for the women segment of sunglasses for Ray Ban
Objectives of SMART – specific increase sales of women sunglasses by 20% within the next 12 months
Strategies:
What we will specifically do to meet our objectives
Market development strategies
Market penetration strategies
Diversification strategies
Product development strategies
Positioning Strategy
Creating a perception in the consumer’s mind regarding the nature of the company and its products relative to the competitors
Positioning is what is your unique differentiator that makes you seem the best at – your competitive advantage where you can promote and say that in this industry you can say they are the best like target compared to walmart can say they have the most pleasant shopping experience
Must convey the entire brand in a few words
Mainly for internal use to keep employees focus on the brand’s unique purpose
Types of positioning strategies
Product features and benefits
Product pricing
Product quality
Product application
Competitive differentiation
Other… “most recognizable”
Positioning map
Positioning Statement (template)
[your brand] provides [your offering/benefit that makes you better than competitors] who [customer needs] because [the reason why your customers should believe you are better than competitors]
Chipotle example: provides premium, real ingredients for customers looking for delicious food that is ethically sourced and freshly prepared. Chipotle's dedication to cultivating a better world by cutting out GMOs and providing responsibly raised food sets them apart in the food industry
Starbucks offers the best coffee and expresso drinks for consumers who want premium ingredients and perfection every time. Starbucks not only values every interaction, making each one unique, but the brand commits itself to the highest quality coffee in the world
Developing a creative strategy
Target audience identity
The basic problem, issue, opportunity
Major selling idea or key benefit
Any supportive information
Slogan / Tagline: reduces the key idea into a few words or a brief statement. Serves as a summation of the brand’s positioning, as well as the message it is trying to deliver to the target audience
Major challenge, Opportunity
Unique Selling Proposition (USP)
Supporting info
Unique Selling Proposition (USP)
The strongest singular thing you can say about your product or service
The claim with the broadest and most meaningful appeal to your target audience
Remains the central issue in EVERY ad and commercial in a campaign
Customer journey
Awareness → consideration → purchase → retention → advocacy
Customer journey Mapping
In each Stage you must identify the:
Activities
Feelings or emotions
Channels
Developing a digital strategy
Owned
Paid
Earned
Digital Customer Journey
Typical KPIs for a digital marketing dashboard
Key performance indicators
MKTG 476 (CH 4-2) Planning the Digital Strategy Organic and Paid
What is Digital Marketing?
Digital Marketing called Online Marketing, is the promotion of brands to connect with potential customers using the internet and other forms of digital communication
Digital Marketing
Organic
Paid
Digital Marketing Organic
Organic Social Media
Organix social media refers to the free content (posts, photos, video, memes, stories, etc) that all users, including businesses and brands, share with each other on their feeds
By 2025, the number of active users is projected to increase to 4.4 billion
People spend an average of 144 minutes per day across their social media accounts
The majority of social media use is via a mobile device
Why brands use social media?
Establish their personality and voice
Build relationships by sharing informative entertaining, and/ or inspiring content
Engage customers at every stage of their buying journey
Support their customers (customer service)
Who is seeing your posts?
A percentage of your followers (a.k.a. your ‘organic reach’ - according to hootsuite, 5.5% of your followers)
Your followers’ followers (if people choose to share your post)
People following any hashtags you use
Types of Social Media
Social Networking (Facebook, Twitter, LinkedIn)
Photo Sharing (Instagram, Pinterest)
Video Sharing (Youtube, Vimeo)
Interactive Media (Snapchat, TikTok)
Blogging/Community Building (Tumblr, Reddit)
Digital marketing organic platforms Pros and Cons for Brands
Social Networking
Facebook
Pros:
Massive audience and reach
Good for both B2B and B2C content
Some of the best targeting options available to marketers
Good for building brand awareness
Cons:
The site is lessening the number of ads on its Newsfeed
Particularly popular among Baby Boomers
Requires a lot of content creation
Twitter
Pros
Great lead generation
Quick reaction time from users
Users are highly engaged with the content they see
Good traffic with the right audience
Great for both B2B and B2C companies
Cons
Lack of evergreen content
Ex: of evergreen content using insta or facebook using a image of the company you can keep that image campaign for the company so it will stay interesting and relevant
The purpose of the platform X lacks the evergreen content
Traffic slow when starting out
Limited analytics
LinkedIn
Pros
best for professional contacts and networking
Great for lead generation
Direct access to decision- makers and influencers
Cons
Fewer users than other platforms
Low level of user interaction
Photo sharing
Instagram
Pros
Superb targeting
User base that continues to grow
Popular among Millennials and Gen Z
Great for affiliate marketing
Brands connecting with you and they give you a personlized link and anyone who uses it or posts or buys you get commission from that
Perfect for visual branding purposes
Cons
Need to create regular visual content for relevancy
Difficult to create organix traffic on your own
Pinterest
Pros
Powerful advertising and search tool
Content is easy to share
Unique app to fuel purchasing ideas
Users are not turned off by seeing ads
Easy to drive traffic to your website
Highly visual platform
Organically ranks in Google Search functions
Cons
Requires a lot of attention
Takes a lot of onboarding work for results
Not as large an audience as other apps
Video Sharing
Youtube
Pros
Premier video website
Great targeting options
Second-largest search engine after google
Integrates with Google ads
Cons
Producing your own videos costs time and money
Many users rely on AdBlock to avoid pre-video ads
Interactive Media
TikTok
Pros
Currently the most downloaded app
Popular with younger generations
Grew in popularity from Asia and is now established in the U.S. and western world
Cons
Currently does not allow for outright advertising
Still hasn’t proved itself as a marketing platform
Not as popular in some European nations
SEO
Search engine optimization – The process of improving the volume of traffic driven to one’s site by a search engine through unpaid (organic) results as opposed to paid inclusions
Blog
A blog (a shortened version of “weblog”) is an online journal or informational website
It is a platform where a writer or a group of writers share their views on an individual subject ○ Blogs are used as a strategy for building subject-matter authority
An essential strategy for SEO
Digital Marketing Paid Digital
Paid Digital Marketing
A marketing strategy in which a brand od business pays to advertise across digital marketing platforms (mainly social media and Google) in order to promote a product service or message
Types of paid pricing models:
Cost-Per-Click (CPC) - refers to the model where an amount is paid for each click received, irrespective of the views/impressions
This performance-based metric has automatic and manual bidding that lets you set a budget or control your maximum bid amount
Cost-Per-Mille/Thousand (CPM) - refers to the model where an advertiser pays per thousand ad views. This applies to display ads – banners, native advertising, etc.
CPC vs. CPM
Types of paid media
Paid social media
Pay to publish ads for platform users to see, depending on their interest, behavior, demographics, locations etc.
Facebook, instagram, youtube, linkedin, twitter, snapchat, and pinterest are the top performing channels for paid social ads
Example: twitter
Says promoted or paid sponsored or ad
Facebook:
Linkedin
Search engine ad
Pay-per-click (PPC) and Pay per Impression (PPI) ads
These ads appear on search engine results pages almost like a native ad at the top, with an indication that it is an ad
PPC ads are charged each time your ad is displayed on a site, irrespective of interaction or being clicked upon
Advertisers must identify the relevant keywords and ensure the bid amount results in a positive ROI
PPC EXAMPLE:
PPI EXAMPLE:
Banner ads
Also known as display ads
Usually visual, image-based ads that show up on websites and lead the user to the advertiser’s site or a specific landing page
The performance of the ad is recorded by its click-through ratio (CTR) which the number of clicks that come through to the targeted landing pave divided by the number of ad impressions
When you click on them it will take you to a landing page
Native ads
Visual or text ads that match the design, typeface, and look of the website they are on
Native ads are popular across social media channels such as facebook, twitter, and instagram
Example:
Retargeting
Once a user visits a website and leaves without purchasing the product, a specifically targeted ad will display on participating subsequent sites the user visits
Coming into a website and every other website you see banners of that previous website
Mobile advertising
Advertising or marketing messages delivered to portable devices (e.g. mobile phones, tablets, media players, etc.) wither via a synchronized downloaded or wirelessly over the air
Types of paid media creative:
Text
Typically in Search and Nativ ads
Copy must be impactful
Display
Include images infographics, gifts, presentations, email banners
Cost-effective way of promoting brand and offering
Video
Most effective digital marketing tool today
Engage users for longer durations, especially on social media
MKTG 476 (CH 5) DIGITAL BRANDING AND THE MARKETING MIX
What is a brand?
“What other people say about you when you’re not in the room.” – Jeff Bezos Amazon
At the end of the day is is the consumers associations about the brand
Example: Coca-cola
Associations: polar bear, joy, thirst, red
What do we want them to say about the brand???
How to Build a Brand?
PRIMING
+
EXPECTATION
+
DESIRE
Left depicts the brand building model – no longer enough because we have so much noise, channels, and consumer engagement in what are looking for
It all effects the way a brand is built – no longer just the model of it will tell us and we will tell you
Prof perspective on the right side: awareness is not enough – it’s too broad
Priming means we need to create a context for that level of awareness
Creating interest is no loger enough we need to transfer this to “i have to have it mentality”
Creating a level of dependability it ensures and means you are performing better with that brand as a consumer
Priming
Similar to placebo example with brands
Restaurant Example
Pizza
Pasta
Salad
S _ _ P – Shop?
Soup – he creates a context the way our brain works is that we were exposed to a frame and it conditions us to think in that frame / context
Soap
Priming
On a scale of 1 to 5 how happy are you?
How many dates or dinner parties did you have in the last month
Asking in this formate it says avg 5 life is pretty good
VS
How many dates or dinner parties did you have in the last month?
On a scale of 1 to 5, how happy are you?
Happiness went towards 3 – example of conditioning
How to Prime?
Be preset
Cater to passions not needs
Create the context of what they want to be, what their dreams are – want trust going forward
They want something that understands them
DO NOT cater to “id like to have this product” DO CATER “I want to have this”
Capture hearts the brain will follow
Trusting and lovin the brand will allow consumers to justify the purchase
They deserve an expert. Be one
First earn their trust, then promise
You can deliver something that would be beneficial to them
Expectation
Pregnant women study – they had issues with morning sickness in the first trimester
Divided them into groups
Took TEST GROUP gave them medicine and explained to them that it is great and will take the nausea away – three weeks later 85% of women said nausea went away
However, they were given nausea inducing medicine but because they trusted the source they developed the expectation
Online Review Statistics for 2022 (Editor’s Choice)
Only 5%-10% of consumers leave reviews, but
Reviews influence $400 billion of online purchases
92% of consumers will hesitate to buy products with no reviews
97% of consumers report that reviews influence their purchasing decisions
How to build brand expectation
Give them new aspirations
Make intangibles, tangible
Make them expect great performance
Align your brand promise with their life goals
Hype, hype but back it up
Or else it will become a fad and people will forget about it
Desire
The innate motivation for something to work or in this case for the pregnant woman to get rid of their morning sickness
VIDEO
Change your grip – change your game
Making a parity of “I’m in the woods” vs. “I’m Tiger woods”
Golf players in general want to improve their game the line addressed their desire
Clever in the sense it was parody and it went to 17% marketshare
How to build a desire?
Everyone wants to feel and perform better. Be the solution
Believe in your audience’s unique, personal goals
Align your brand with your audience’s desired destination
Make your brand promises aspirational, but tangible
Help them see and express themselves through your brand
Dependability
When you can only play or be better when using that specific brand
The 4 Ps
Product
Something (product or service) that someone would actually want to buy
Relevance to digital marketing
Can you sell it online?
Can your find online audiences that might be interested?
What digital channels can you sell it on?
Options for varying the core product
Options for offering digital products
Options for changing the extended product
Conducting online research
Speed of new product development
Speed of new product diffusion
Price
The appropriate value customer would be willing to pay for the product
Relevance to Digital Marketing
Online promotions
Affiliates – individuals who have high reach of people who follow them that can reach target audience give them a code or link and they post on digital channels and when a consumer clicks there and purchases they get a benefit such as money
Cost per Acquisition (CPA) considerations
Increased price transparency
Downward pressure on price
Innovative pricing approaches
Alternative pricing structure or policies
Place
Location. Where is the product sold?
Many fail at the checkout process you will lose the sale if it is not easy or intuitive
Relevance to digital marketing
Easy to access online shop
Pleasant experience in shop
Easy to navigate offerings
Intuitive checkout process
Place of purchase
New structure channels
Channel conflicts
Virtual organizations
Promotion
Strategies used to create awareness, interest, purchase and ambassadorship of your product
What happens in the consideration stage? What do we do
We compare to competitors
Where do we want to be and what channels will we use to choose our product?
We can have digital PR
It effects our message it should be that of making your product better and use terminology that differentiates you from the competition
Relevance to digital marketing
What digital channels are optimal for each stage in the consumer journey?
Interactive experience
Immediate response
Real-time measurement
Easily modified campaign
Puma research of online of each communication channel
Case Study - Spotify
Explain how Spotify uses the marketing mix to create differential advantage
What is Spotify’s core product and what does it add to this offer as part of its extended product?
Suggest how the launch of “Hey Spotify” (its voice feature) for mobile users might add value for customers
MKTG 476 (CH. 6) PERSONALIZING THE CUSTOMER JOURNEY: DATA-DRIVEN RELATIONSHIP MARKETING
Personalization in Digital Marketing
Personalization involves tailoring marketing messages, content, and offers to individual……
Data collection and analysis are the backbone of personalization as they provide insights into customer behavior and preferences
Benefits of personalization for businesses and customers
For businesses: increased customer engagement, higher conversion rates, improved customer retention, and enhanced brand loyalty
For customers: more relevant content, a personalized shopping experience, and time savings
Data collection and segmentation:
Collecting customer data ethically and securely
Collect data transparently and ensure compliance with data protection regulations like GDPR
Use secure systems to protect customer data from breaches and cyber threats
Segmenting your audience for more effective personalization
Segmenting involves categorizing customers into groups based on characteristics such as demographics, purchas history, and behavior
Utilizing first-party data and thirda-party data
First party data comes directly from customer interactions with your brand
Third party data comes can provide additional insights from external sources
Concepts of data-driven customer engagement:
Marketing automation
Sales force automation – a platform or any CRM database / system that is automated it is planned and programmed in advance and can tell us what stage we are in
Customer service management
Customer communications management
Analysis and reporting
Personalization techniques
Content personalization
Tailoring website content and product recommendations
Display products or content based on a user’s past interactions or preferences
Example: Spotify makes a playlist based on your behavior
Nike asking for data such as lifestyle so content can be personalized
Dynamic email content based on customer behavior on customer behavior
Customize email content in real-time, such as product recommendations, based on user behavior
Channels Supporitng Customer Engagement
Cloud data
Channels have become very personal
SMS Marketing
SMS marketing is a form of direct marketing that involves sending promotional offers, updates, and news to customers via text messages
Types of SMS Marketing
Promotions
Reminders
Time-sensitive updates
Personalized discounts
Order delivery updates – text from amazon that order has been delivered
SMS marketing business compliance:
Obtain explicit opt-in consent
Avoid misleading or deceptive content
Identify themselves and the purpose of the message
Respect do-not-call lists and time restrictions for sending messages
Provide clear and easy opt-out options
VIDEO:
Why is it important – automated sms has lead to growth
REASON – everyone texts it is used by many people, old, young
Mktg standpoint it is a opted channel whoever wants to get it will receive it
Benefits of SMS Marketing
Cost effectiveness
$0.015 per message ROI up to 113x
$0.0015 per email ROI up to 40x
Direct communication
Americans spent an average of 4 hours on their phone each day
SMS marketing allows you to hit your audience where they already spend a lot of their time
Perfect for real-time updates
SMS campaigns are received instantly and read alsmot immediately as well
A majority of SMS are read in the first three minutes
Building SMS Marketing Campaign
Building the list
Opt-in consent
Quality over quantity
Gamified popups “don’t miss out”
Text to join
Building the message
Think about value
Use proper grammar
Make your message authentic
SMS marketing best practices
Get permission mention your company
Add a call to action
Send at the right time
Personalize your campaign
Email Marketing
Email marketing funnel is a series of emails strategically designed to nurture a lead and drive conversations. It’s also ussedul for turning existing customers into loyal customers
Based on the customer stages
Developing an Email Funnel
Define your strategy goals
Conduct customer research
Create a customer journey map
Design opt-in forms
Create landing pages with a lead magnet
Stages of Email Funnel (KNOW THESE) ADD IMAGE HERE
Top of the funnel (awareness to consideration)
Awareness:
Capture new leads with sign up forms, pop-ups and / or landing pages
Magnet – give you something valuable to …..
Consideration:
Get creative with your email content – you don’t need to sell straight away
Share topics that are meaningful and show the value of your brand
Set up a sending frequen……..
Middle of the funnel (conversion to loyalty)
Conversion: push to take the desired action – perhaps with an incentive
Create a sense of urgency to get people to take action
Increase engagement with tools like auto resend, personalization and countdown timers
Include incentives to sweeten the deal
“Winter phase out 24 hour deal act now”
Loyalty: this is where you keep your customers coming back to take action (e.g. VIP emails special points system)
Invest your resources in customer retention
Keep nurturing the relaitnships with existing customers
Offer perks and privileges …………….
Bottom of the funnel (Advocacy)
Advocacy: people feel so connected that theyre ready to leave reviews and share on social media – word of mouth or incentives to talk to friends
Use reviews and testimonials to add social proof to your business
Create programs ………..
The 5ts of Email marketing
Targeting
We need to make sure we have the Quality not the quantity
Timing
Send important emails for better conversions at certain times
Template
Be consistent and attractive
Testing
Select a certain amount of emails one version and a different version to see what had better ROI
Tone
Too professional with audience that is casual you will lose them
Email automated contact strategy example
Email marketing statistics
Welcome Email Funnel know and explain the process or know what process is linked to which stage
Automatically welcome email after signing up
Email Marketing – still many opportunities
Contextual marketing
Adapting content to the customer’s context (locaiton, device, time)
Display location-specific content, optimize for different devices, and send time-sensitive offers
Geo-targeting and geofencing
Target users based on their physical location or set up virtual perimeters for marketing purposes
Geographically fence an area
MKTG 476 (CH 6-2) SOCIAL MEDIA STRATEGY
Social Media
Any digital/ online channel that enables users to create and share content
Monthly Active Users Worldwide by Platform (as of July 2023)
77% of businesses use social media to reach customers
90% of users follow at least one brand on social media
76% of social media users have purchased something they saw on social media
As of April 2023, the fastest-growing social media platform is BeReal
81% report that social media increases accountability for businesses
Social Media Current Trends
“Edutainment” content will rule
Businesses will put more money behind video production
BeReal will be a turning point for brands
The creator economy will continue to blossom
Employee advocacy will be the social media trend to talk about
Social Media Building Strategy
What are your goals?
Who is your audience?
Where is your audience?
When is your audience online?
What is your competition doing?
What is your content strategy?
What is your curation strategy?
How will your produce content?
How will you manage the channels?
How will your measure performance?
Social Media Types
Social networking (Facebook, Twitter, LinkedIn)
Photo Sharing (Instagram, Pinterest)
Video Sharing (Youtube, Vimeo)
Interactive Media (Snapchat, TikTok)
Blogging/ Community Building (Tumblr, Reddit)
Social Media Key Trends
The advance of social selling (selling directly from the platform)
Example: TikTok and Shopify you can see posts and directly shop for their site
Using data to predict customer behavior
Example: Pinterest does this. People look for furniture, gifts, and design. They use this to understand the behavior and learn about what is trending they have a whole platform where they segment this and you can find the specific characteristics of that segment to target not only on pinterest but anywhere else or any platform you use
The shift from Macro to Micro influencers
Smaller influencers are much cheaper and you can have multiple micro influencers to reach more
These are more targets and much more intimate
User Generated Content (UGC) bumps sales (+8.5%)
Content made other people (EARNED MEDIA) customers post for us
Users generate the content for us – sometimes it is incentivized and company pays
GoPro ongoing hashtag campaign from users to add content you used with the GoPro
Employees turn social advocates
They are powerful 3x more credible than CEOs in understanding what it is like to be at the company
Strategies to participate in the social media strategy they already have loyalty and know the company
Community community community
Must build communities to get people engaged
You want them to be involved with what is happening and share that info about the product
By generating subscriptions sign up for updates and communication to also hear their feedback
The social media advertising market is expected to reach $207.10 billion in 2023, with an impressive 4.53% annual growth rate projected to take the market even higher, to $247.3 billion by 2027
Which social media platforms does your company use?
Social Media Key Trends by Platform
Facebook
59% of social media users are on Fgest social media platform in the world
26% of US Facebook users are age 25 to 34
Users spend 19.6+ hours a month on average on Facebook
Facebook has 2.99 billion monthly active users
Instagram
Social sharing app all around pictures, stories, and live videos
Many brands are participating through the use of hashtags and posting pictures consumers can relate to
Instagram has 2 billion monthly active users
Pinterest
Social site that is all about discovery
Largest opportunities on Pinterest are in the home, parenting, beauty, style, and food industries
89% use pinterest for purchase inspiration
Pinterest has 465 million monthly active users
TIkTok
App for making and watching short form videos
1+ million video views daily and 1_ billion sound uses daily
Most used social platform among users ages 10-29
1+ billion monthly active users
LinkedIn
Business oriented social networking site
Brands that are participating are corporate brands giving potential and current associates a place to network and connect
77%+ of LinkedIn users are outside of the U.S.
LinkedIn has 930 million users
Personalization Techniques
Social media activities requiring management
Define listening and reputation strategy
Transform the brand through social media
Acquire new customers using social media
Increase sales to existing customers
Enhance customer service through social media
Big idea, Offer, Message Development and Creative
Campaign big idea elements
Concept – an original, relatable idea to engage the audience
Creative – distinctive creative such as strapline, visuals or hashtag is needed for cut-through
Viral element – shareable via word of mouth or social media amplification
Brand alignment – the concept and creative must be on-brand to fit in with brand perception
Brand value messages – in addition to promoting brand awareness and recall, other brand metrics such as brand familiarity, favorability and purchase intent may be incorporated
Explains what strategies will give you high ROI or reach
Content Support Marketing
This relates to content and which creates more emotion or rational
To educate customers and create a platform of trust about education on that particular industry you will do it will not get a lot of purchases but it will gain alot of awareness
Emotional you can create that entertainment and get awareness but does not necessarily mean immediate purchas to purchase you will use community forms or those influencer reviews and endorsement
Cater content based on your objective
Why would we want the strategies of creating guides and infographics? When we know it won’t immediately convert ot sales?
It can help in decision making process
Great for SEO
THIS: your product cannot be purchased online your product is very sophisticated such as software – this is usually in the form of a face to face meeting like b2b and to get trust we need to know what we talk about and have the positioning as an expert