Summary Digital Marketing
Chapter 1: Digital Marketing (week 1)
1.1 What is digital marketing
• Marketing = the process by which companies create value for customers and build strong customer
relationships in order to capture value from customers in return.
• Digital marketing = a process in which organisations and existing or potential customers use the
internet to create value and products as well as interchange them, regardless the mode of access to
internet
- Also called: internet marketing, online marketing, e-marketing
- It’s a subprocess of marketing
- Has been established thanks to the rise of internet
• E-commerce = selling products or services over the internet, so one option within digital marketing
• E-business = a way of doing business with the assistance of digital technologies - it uses digital
marketing as a tool.
1.2 Digital marketing vs traditional marketing
• Thanks to Internet, marketing is more effective (easier to meet objectives with less effort).
• Some new possibilities thanks to internet:
- Customer’s demand for information is easily met
- Provision of tailor-made information
- Gathering big data about potential customers
- Easy to measure effects
- High level of interactivity possible.
• The internet accelerated one-to-one marketing, as individual information can be saved. This results in
the possibility to offer individual propositions.
• The most important terms to remember:
- From push to pull marketing
- From bulk to mass individualisation
- Interactivity
- Traceability
- Customised production
• Website is the centre of digital marketing. Types of websites:
- Corporate sites = support interaction btwn organisation and stakeholders
- E-commerce sites = online stores where products can be viewed and ordered
- Communication sites = inform visitors more about product/service of the supplier (also contain
lists of stores —> store finder tool)
- Lead generation sites = like communication site, but for B2B
- Branding sites = improve brand knowledge and brand perception. Very interactive with
recreational elements (e.g. forums, games)
- Service sites = provide information and are involved in production process of organisation (e.g.
online banking)
- Portals = overview of websites for specific target groups
- Content sites = publishing sites that provide reader with info (e.g. news sites, review sites)
• 5S-model of Chaffey: five objectives for digital marketing communications:
1. Sell —> increase sales
2. Speak —> better communication
3. Serve —> improve customer service
4. Save —> cost reduction through digital media
5. Sizzle —> initiatives to support the brand
1.3 Digital marketing and the marketing mix
• Marketing mix contains the four elements a marketer should use:
the 4Ps. This has overtime transformed into 4Cs (as the Ps were not
being viewed from the purchaser’s perspective)
• So, now Lauterborn 4C model (see next page)
,4 Ps model 4 Cs model
Product = functionality, brand, packaging, services —> Customer solution = solving customer’s problem
Place = channel, inventory, logistics, distribution —> Convenience = accommodating the customer
Price = list price, discounts, bundling, credit terms —> Cost to the customer = price/quality ratio
Promotion = advertising, sales force, publicity, sales —> Communication = communication btwn organisation and
promotion its customers
• New: SIVA model (Solution, Information, Value, Access)
1.4 Digital marketing in relation to business processes
• Five core processes of a business’s marketing (Kotler & Keller):
1. Market sensing = keeping organisation’s up-to-date with market’s needs, developments, trends
2. Product realisation = researching and developing new products/services, extending market
supply, launch of a new product
3. Customer acquisition = defining target markets and acquiring new customers
4. Order fulfilment = receiving and approving orders, shipping and collecting payments
5. CRM = building deeper understanding, better relationship and better offer for customers
1.5 Development of digital marketing
• Digital marketing has advanced rapidly, in
three phases:
1. Mass media phase
2. The internet phase
3. The social media phase
————————————>
• So, it started with a gap, marketer only ended
info to consumer (push). With the rise of
internet, there was more interactivity, so
dialogue started. Thanks to social media,
there is a mutual influence (pull)
• Three types of media:
- Paid (bought) media: marketer can buy o create brand awareness (e.g. online ads, radio, tv, paid
influencers, pay per click, retargeting…)
- Owned media: marketer can decide autonomously on content (website, app, news letter, social
media channels)
- Earned media: ‘earned’ thanks to customers, journalists, or loggers writing about the brand on
e.g. social media, or when other organisations refer to your brand on there site (e.g. mentions
shares, reposts, reviews)
• The future of online marketing:
- More personalisation thanks to big data
- Automated commerce
- Face tracking
- Virtual buddies (AI and chatbots)
- Storytelling via different media formats
- Augmented reality (e.g. for trying on glasses, outfits)
- Use of voice —> google search, Siri
Chapter 3: Market sensing (week 2)
• Market sensing = understanding the expected behaviour of future customers by getting sense of what is
happening in the market —> be up-to-date!
3.1 Internet usage
• 1991: introduction of internet for commercial use. 1994: first webshops launched
• Now we use the internet for: information, news, personal development, commercial transactions,
leisure, social interaction, gaming.
• There are 6 digital lifestyles to be distinguished:
, 1. Influencer = frequent mobile internet user, blogs, social networker, online voice must be heard
2. Communicator = express themselves in online world, connects with mobile
3. Knowledge seeker = collects information online, reads opinions of like-minded people
4. Networkers = creates and maintains relationships online, busy lifestyle, wants to keep in touch,
open to communication with brands and promotional actions
5. Aspirers = little internet experience, wants to know more about mobile devices
6. Functionals = concerned with privacy, no social media, uses internet as a tool (email, check
news and whether)
3.2 Buying on the internet
• Online purchasing is increasing rapidly. Reasons to buy or not to buy online:
Advantages Disadvantages
Convenience (no need to travel, queue in store, parking) Security concerns (payment and personal details)
Greater variety (more shops online) Not being able to physically inspect
Cheaper goods (more competition means lower prices) Damage during transport
Accessibility (for disabled or people with limited mobility) Late or no delivery
Comparability (compare to get the best deal) What do retailers do with personal information?
• Channel switch = do online orientation and go purchase in store and vice versa.
- Orientate online, buy in store because:
- Being able to touch or try on
- More attractive rice/offer
- Immediate take out
- Personal contact
- No shipping costs
- Orientate in store, buy online because:
- Lower price
- Convenience
- Out of stock/not available in store
- Less choice due to smaller range of products
- Immediately clear whether product is in stock
- No limited opening hours
- Costs less time to shop online
• There are four types of risks of buying online:
1. Financial risk —> loose money due to misuse of creditcard information
2. Functional risk —> poor to no delivery, not the quality that was expected
3. Psychological risk —> disappointment/frustration when personal information becomes visible to
others online
4. Time-saving risk —> inconvenience experienced when searching on the web, poor working site
• The more people shop online, the less they are concerned with these risks.
• There are factors that determine whether an individual shops online or not:
- Value (Do I expect to save money? Expect online to have less hassle?)
- Ease of use (Is the site easy to use? Will I find what I look for?)
- Experience (Is it easier online? Do I make better purchasing decisions?)
- Social factors (What do others say about online shopping? What do other recommend?)
- Entertainment gratification (Do I have fun shopping online?)
- Internet irritation (Do I find the web unorganised? Are there too many ads?)
- Emotional state (Does online shopping make me happy? Is it stimulating?)
• A marketer must do research into attitude of target audience towards online shopping!
3.3 Use of social media
• Social business = communication through social media is fully integrated into the thinking behind the
business as well as into the day-to-day practice.
• 3 types of brand-related activities: Consuming (e.g. watch videos), Contributing (e.g. share videos) and
Creating (e.g. post own videos)
• There are 6 motivations as to why individuals access media and thus perform brand-related activities:
, • Combining the motivations with the three user types:
1. Consumption
- Information-related motivation (observing acquiring knowledge, acquiring information to
make a purchase, gaining inspiration)
- Entertainment (relax, kill time, for fun
- Reward
2. Contributing
- Integration and social interaction (social interaction, engage in dialogues, helping,
creating a social identity)
- Entertainment (relax, kill time, for fun)
3. Creating
- Personal identity (self-expression, self-confidence and self-presentation)
- Entertainment (relax, kill time, for fun)
3.5 Model for online consumer behaviour
• Essence of the model: consumers go through different phases to get to a final decision!
Chapter 1: Digital Marketing (week 1)
1.1 What is digital marketing
• Marketing = the process by which companies create value for customers and build strong customer
relationships in order to capture value from customers in return.
• Digital marketing = a process in which organisations and existing or potential customers use the
internet to create value and products as well as interchange them, regardless the mode of access to
internet
- Also called: internet marketing, online marketing, e-marketing
- It’s a subprocess of marketing
- Has been established thanks to the rise of internet
• E-commerce = selling products or services over the internet, so one option within digital marketing
• E-business = a way of doing business with the assistance of digital technologies - it uses digital
marketing as a tool.
1.2 Digital marketing vs traditional marketing
• Thanks to Internet, marketing is more effective (easier to meet objectives with less effort).
• Some new possibilities thanks to internet:
- Customer’s demand for information is easily met
- Provision of tailor-made information
- Gathering big data about potential customers
- Easy to measure effects
- High level of interactivity possible.
• The internet accelerated one-to-one marketing, as individual information can be saved. This results in
the possibility to offer individual propositions.
• The most important terms to remember:
- From push to pull marketing
- From bulk to mass individualisation
- Interactivity
- Traceability
- Customised production
• Website is the centre of digital marketing. Types of websites:
- Corporate sites = support interaction btwn organisation and stakeholders
- E-commerce sites = online stores where products can be viewed and ordered
- Communication sites = inform visitors more about product/service of the supplier (also contain
lists of stores —> store finder tool)
- Lead generation sites = like communication site, but for B2B
- Branding sites = improve brand knowledge and brand perception. Very interactive with
recreational elements (e.g. forums, games)
- Service sites = provide information and are involved in production process of organisation (e.g.
online banking)
- Portals = overview of websites for specific target groups
- Content sites = publishing sites that provide reader with info (e.g. news sites, review sites)
• 5S-model of Chaffey: five objectives for digital marketing communications:
1. Sell —> increase sales
2. Speak —> better communication
3. Serve —> improve customer service
4. Save —> cost reduction through digital media
5. Sizzle —> initiatives to support the brand
1.3 Digital marketing and the marketing mix
• Marketing mix contains the four elements a marketer should use:
the 4Ps. This has overtime transformed into 4Cs (as the Ps were not
being viewed from the purchaser’s perspective)
• So, now Lauterborn 4C model (see next page)
,4 Ps model 4 Cs model
Product = functionality, brand, packaging, services —> Customer solution = solving customer’s problem
Place = channel, inventory, logistics, distribution —> Convenience = accommodating the customer
Price = list price, discounts, bundling, credit terms —> Cost to the customer = price/quality ratio
Promotion = advertising, sales force, publicity, sales —> Communication = communication btwn organisation and
promotion its customers
• New: SIVA model (Solution, Information, Value, Access)
1.4 Digital marketing in relation to business processes
• Five core processes of a business’s marketing (Kotler & Keller):
1. Market sensing = keeping organisation’s up-to-date with market’s needs, developments, trends
2. Product realisation = researching and developing new products/services, extending market
supply, launch of a new product
3. Customer acquisition = defining target markets and acquiring new customers
4. Order fulfilment = receiving and approving orders, shipping and collecting payments
5. CRM = building deeper understanding, better relationship and better offer for customers
1.5 Development of digital marketing
• Digital marketing has advanced rapidly, in
three phases:
1. Mass media phase
2. The internet phase
3. The social media phase
————————————>
• So, it started with a gap, marketer only ended
info to consumer (push). With the rise of
internet, there was more interactivity, so
dialogue started. Thanks to social media,
there is a mutual influence (pull)
• Three types of media:
- Paid (bought) media: marketer can buy o create brand awareness (e.g. online ads, radio, tv, paid
influencers, pay per click, retargeting…)
- Owned media: marketer can decide autonomously on content (website, app, news letter, social
media channels)
- Earned media: ‘earned’ thanks to customers, journalists, or loggers writing about the brand on
e.g. social media, or when other organisations refer to your brand on there site (e.g. mentions
shares, reposts, reviews)
• The future of online marketing:
- More personalisation thanks to big data
- Automated commerce
- Face tracking
- Virtual buddies (AI and chatbots)
- Storytelling via different media formats
- Augmented reality (e.g. for trying on glasses, outfits)
- Use of voice —> google search, Siri
Chapter 3: Market sensing (week 2)
• Market sensing = understanding the expected behaviour of future customers by getting sense of what is
happening in the market —> be up-to-date!
3.1 Internet usage
• 1991: introduction of internet for commercial use. 1994: first webshops launched
• Now we use the internet for: information, news, personal development, commercial transactions,
leisure, social interaction, gaming.
• There are 6 digital lifestyles to be distinguished:
, 1. Influencer = frequent mobile internet user, blogs, social networker, online voice must be heard
2. Communicator = express themselves in online world, connects with mobile
3. Knowledge seeker = collects information online, reads opinions of like-minded people
4. Networkers = creates and maintains relationships online, busy lifestyle, wants to keep in touch,
open to communication with brands and promotional actions
5. Aspirers = little internet experience, wants to know more about mobile devices
6. Functionals = concerned with privacy, no social media, uses internet as a tool (email, check
news and whether)
3.2 Buying on the internet
• Online purchasing is increasing rapidly. Reasons to buy or not to buy online:
Advantages Disadvantages
Convenience (no need to travel, queue in store, parking) Security concerns (payment and personal details)
Greater variety (more shops online) Not being able to physically inspect
Cheaper goods (more competition means lower prices) Damage during transport
Accessibility (for disabled or people with limited mobility) Late or no delivery
Comparability (compare to get the best deal) What do retailers do with personal information?
• Channel switch = do online orientation and go purchase in store and vice versa.
- Orientate online, buy in store because:
- Being able to touch or try on
- More attractive rice/offer
- Immediate take out
- Personal contact
- No shipping costs
- Orientate in store, buy online because:
- Lower price
- Convenience
- Out of stock/not available in store
- Less choice due to smaller range of products
- Immediately clear whether product is in stock
- No limited opening hours
- Costs less time to shop online
• There are four types of risks of buying online:
1. Financial risk —> loose money due to misuse of creditcard information
2. Functional risk —> poor to no delivery, not the quality that was expected
3. Psychological risk —> disappointment/frustration when personal information becomes visible to
others online
4. Time-saving risk —> inconvenience experienced when searching on the web, poor working site
• The more people shop online, the less they are concerned with these risks.
• There are factors that determine whether an individual shops online or not:
- Value (Do I expect to save money? Expect online to have less hassle?)
- Ease of use (Is the site easy to use? Will I find what I look for?)
- Experience (Is it easier online? Do I make better purchasing decisions?)
- Social factors (What do others say about online shopping? What do other recommend?)
- Entertainment gratification (Do I have fun shopping online?)
- Internet irritation (Do I find the web unorganised? Are there too many ads?)
- Emotional state (Does online shopping make me happy? Is it stimulating?)
• A marketer must do research into attitude of target audience towards online shopping!
3.3 Use of social media
• Social business = communication through social media is fully integrated into the thinking behind the
business as well as into the day-to-day practice.
• 3 types of brand-related activities: Consuming (e.g. watch videos), Contributing (e.g. share videos) and
Creating (e.g. post own videos)
• There are 6 motivations as to why individuals access media and thus perform brand-related activities:
, • Combining the motivations with the three user types:
1. Consumption
- Information-related motivation (observing acquiring knowledge, acquiring information to
make a purchase, gaining inspiration)
- Entertainment (relax, kill time, for fun
- Reward
2. Contributing
- Integration and social interaction (social interaction, engage in dialogues, helping,
creating a social identity)
- Entertainment (relax, kill time, for fun)
3. Creating
- Personal identity (self-expression, self-confidence and self-presentation)
- Entertainment (relax, kill time, for fun)
3.5 Model for online consumer behaviour
• Essence of the model: consumers go through different phases to get to a final decision!
