digital strategy - lecture four

Digital Strategy #DS

4

and strategy in a digital plan

objectives

SOSTAC® planning model…

1

2

3

4

5

6

situation

objectivesstrategytactics

actioncontrol

corporate

marketing

digital

resources scheduling

Smith, 1990

5S’s

marketing mix

TOWS Analysis

Strengths Weaknesses

Opportunities“Maxi-Maxi” Strategies

Strengths used to maximiseopportunities

“Mini-Maxi” Strategies

Minimise weaknesses by taking advantage of

opportunities

Threats“Maxi-Mini” Strategies

Strengths used to minimisethreats

“Mini - Mini” Strategies

Minimise weaknesses and avoid threats

Weihrich, 1982

How to complete a TOWS…

How can we make the most of strengths and get around our weaknesses?

How can we capitalise on opportunities and minimise threats?

These are then considered in relation to each other…

…the surrounding boxes are populated with key findings from the audit – and numbered

It is a simple tool used to generate strategic options or alternatives

The original model … developed by Heinz Weihrich, 1992

The TOWS matrix in action...

don’t over-complicate – it shouldn’t be a complicated process

It is there to help generate options and alternatives – it isn’t perfect

Make sure you show your thinking and make it work for you

Using the TOWS...

digital objectives...

avoid solely focusing on sales

help to determine/clarify position

help highlight the balance of tactics needed

provide a time frame

provide a means of evaluation and measurement

link back to marketing and corporate objectives

types of objectives…

Unique visitors, traffic, bounce rate, revenue, search percentage

leads, conversions from leads, page views, time, value per visit

sales, sales from leads, sales value, sales volume, average order value

active customers, brand mentions, sentiment, shares, virality

the 5S’s...

sell… grow your sales

speak… dialogue, participation and engagement

serve… add value

save… costs

sizzle… take your brand online

Smith, 2000

strategy… Segmentation

…can use ‘classic’ bases and variables for B2C and B2B

…often developed further as persona’s

online behaviour and digital media consumption is vital

…web/online/customer persona’s

…persona’s

profile

personality

influencers

technology

user experience

devices

apps and software

do’s and don’ts

relationship

targeting...

three key approaches…

undifferentiated

differentiated

concentrated

positioning…

products can be positioned in the market by focusing on specific factors such as…

features, benefits or advantages

solutions presented

specific usage (occasions)

positioned against other products

class disassociation

strategy… OVP

closely tied to the brand position

the reasons why the customer will click, register, buy and share

the intrinsic benefits from the site, content, service and functionality

the customer journey…

acquisition, conversion, retention

reach, act, convert, engage

reach, engage, activate, nurture

…a further objective-linked strategic consideration

acquisition

conversion

retention

…how do we gain new customers?

…OVP and integration with other channels

…build relationships, develop advocates and engage

Ansoff’s Growth Matrix

Market Penetration Product Development

Market Development Diversification

Existing

Existing

New

New

Porter’s Generic Strategies

Differentiation Overall Cost Leadership

Focus

Uniqueness perceived by customer Low cost position

Industry-wide

Segment only

Competitive Market Positions…

Market challenger

Market follower

Market leader

…there are four competitive positions an organisation can adopt in the market place

Kotler and Armstrong, 2013

Market nicher

…developing intelligent strategic objectives

Objective Substantiation Strategies to achieve goals

KPI’s

Link to stage of consumer journey and SMART

Link to audit findings and TOWS options

Link to STP, OVP, growth and positioning

What will you be measuring?

Conversion –increase averageorder value to £30 per customer

Increase in disposable incomeIncreased desire for product

Position as luxury against key competitorsDifferentiation through featuresOVP – exclusivity

% of unique visitorsresponding to promotions

References and reading

Armstrong, G & Kotler, P. (2008) Marketing- An Introduction. 9th ed Pearson Education: London

Dibb, S., Simkin, L., Pride, W.M. & Ferrell, O.C. (2012) Marketing: Concepts and Strategies. 5th European ed. Houghton Mifflin: Abingdon

Ryan, D. and Jones, C. (2009) Understanding Digital Marketing: Marketing Strategies for Engaging the Digital Generation London: Kogan Page

Wilson, M.S., Gilligan, C., (2005), Strategic Marketing Management, CIM/Elsevier

http://www.smartinsights.com/digital-marketing-strategy/sostac-model/

http://www.smartinsights.com/digital-marketing-strategy/race-a-practical-framework-to-improve-your-digital-marketing/

http://www.enterprisebucks.co.uk/wp-content/uploads/2014/09/digital-marketing-plan-template-smart-insights1.pdf