BTEC Unit 24 Digital Marketing 2
Agenda
Introduction to the Digital Marketing
Details of the assignments
Group project report requirements
LO1 Demonstrate an understanding of the
opportunities, challenges and impact of the
digital environment
LO2 Examine key digital tools, platforms and
channels, comparing and contrasting bricks and
mortar and other physical channels
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Digital Marketing
Digital marketing can assist in all elements
of marketing – providing new techniques
to identify, anticipate and satisfy customer
needs efficiently.
Together with e-commerce, digital
marketing is a subset of e-business that
involves the automation of all business
processes. (Chaffey and Smith, 2012)
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Assignments
Background
Local chain stores selling electric appliances
Products: full range of electric appliances
Services: physical deliveries, on-site
installations, hotline, even user training
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Assignments
Online-to-offline (O2O)
Consumers search the web sites for product
information
Consumers compare similar products and
seek for recommendations online
Consumers purchase selected products at the
physical stores – offline purchases
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Assignments
Problems and issues
Drawback: high cost to maintain both online
shop and physical stores
Risk: channel cannibalisations
Online shop
Physical stores
Recommendations to the business owners
Identify the problems
Analyse and recommend possible digital tools
$
$
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Requirements
3 to 5 members in a group
A written report with references
Group contract
Meeting agenda
Meeting minutes
Self reflection
Peer evaluation
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References
Chaffey, D. and Ellis-Chadwick, F. (2012) Digital Marketing: Strategy, Implementation and Practice, 5th Ed, Harlow: Pearson.
Chaffey, D. and Smith, P. (2012) eMarketing eXcellence: Planning and Optimising your Digital Marketing, 4th Ed, Abingdon: Routledge.
Hemann, C. and Burbary, K. (2013) Digital Marketing Analytics: Making Sense of Consumer Data in a Digital World, Que Publishing.
Tapp, A., Whitten, I. and Matthew, H. (2014) Principles of Direct, Database and Digital Marketing, 5th Ed, Harlow: Pearson.
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LO 1
Demonstrate an understanding of the
opportunities, challenges and impact of the
digital environment
1A The digital environment
1B Opportunities of digital marketing
1C Challenges and impacts of digital marketing
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1A The digital environment
The digital environment
Digital marketing
Digital marketing landscape
Differences between online and offline
marketing
Key benefits of digital marketing
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1A Digital marketing
Use of information technology to assist all
elements of marketing
Identify customer needs
Acquire customers from the web
Convert customers to business
Retain loyal customers
Automate processes to reduce cost and
increase efficiency
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1A Digital marketing
Use of information technology
Web presence
Information reach
Information rich
Push technique
Identify customer needs
Click stream analysis
Hit rate analysis
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1A Digital marketing
Acquire visitors
Convert leads
Retain customers
Source: Garrett Smith, Pitch + Pivot
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1A Digital marketing landscape
Ranges of tools
Mobile
Web
Personalisation
Digital devices
Content
Advertising
Market-dependent
Source: Tyler Thomas
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1A Digital marketing landscape
Another example
Source: Pinterest.com
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1A Digital marketing landscape
Issues
Twitter works well in the States as Donald
Trump relies on it to communicate with the
public bypassing the traditional mass media
Twitter does not work in Hong Kong
Which one is dominating here?
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1A Online and offline marketing
Online marketing
Same as digital marketing
Use of IT to assist all elements of marketing
Offline marketing
Use of offline media channels to create
awareness of products and services
Offline media: radio, television, newspaper,
magazine, billboard, poster, product catalog,
pamphlet, leaflet, road show, telemarketing
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1A Online and offline marketing
Differences Elements Online marketing Offline marketing
Market penetration High: easy to reach different
markets
Low: hard to reach different
markets
Approach to the customer Just through a ‘Click’ Long progress
Product promotion Cheap and fast Costly and time-consuming
Manpower Less people manage Large work force
Time 24 hours a day / 7 days a
week
Certain hour
Cost Low High
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1A Online and offline marketing
What are the differences in the industry
that the assignment concerned? Consider
Media in use e.g. web sites, newspaper, …
Messages in the media e.g. promotion, …
Market penetration effectiveness
Customer segment outreach
Information richness
Customer experience
Cost
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1A Key benefits
Connect to customers online
Analyse customer needs
Optimise for conversion
Realise higher revenue
Respond to changes faster
Become more competitive
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1A Key benefits
Connect to customers online
Maintain an effective 2-way communication channel
with consumers through desktops, tablets, smart
phones
Analyse customer needs
Track customers’ actions, decisions, and preferences to create true insight of customer needs
Optimise for conversion
Shorten the journey from awareness to lead
conversion yielding more business
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1A Key benefits
Realise higher revenue
Increase digital outreach and generate higher
revenue
Respond to changes faster
Based on digital marketing data, observe and
adapt to trends and changes faster
Become more competitive
Establish competitive advantages based on
digital outreach and faster responsiveness
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1A Key benefits
Evaluate the benefits of digital marketing
for the chain store being studied
Consider the extent of benefits being realised
List the benefits that can be actualised more
effectively
Identify ways to actualise these benefits
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Tutorial
Select a chain store
List the local chain stores
Visit their web sites and physical stores
Evaluate and select one chain store as base
Consider the functions on web sites
Consider the number of physical stores and their
locations
Select the one which has problems to be resolved
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Tutorial
Write the introduction
Assume a role as the report writer, such as
digital marketing consultant
Briefly describe the purposes of the report,
such as recommend digital marketing
solutions to the business owner
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Tutorial
Write the background
Briefly describe the business model
Clearly define the problems
Describe the impact if the problems cannot be
resolved shortly
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Tutorial
Write the digital environment
Introduce digital marketing and the landscape
Differentiate online and offline marketing
Explain the key benefits of digital marketing
Note to writing the report:
Use appropriate headings and numbering to label paragraphs
Do not show LO1, 1A, 1B, LO2, etc.
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1B Opportunities
Opportunities of digital marketing
The importance of customer insight and
understanding in developing effective digital
marketing activities
Rise of online consumer power
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1B Customer insight
Customer insight
Underlined need of customers
Customers may not be aware of until being
told
An opportunity for marketers
How to get?
Deep understanding of customer attitude and
behaviour
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1B Customer insight
Example
Customer insight: aged people refuse to use
compact size smart phones
Customer underlined need: aged people need
larger screen size smart phones, easy to
operate mobile applications
Opportunities for software marketers: develop
mobile applications with options of larger font
size, contrasting colour even on compact size
smart phones
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1B Customer insight
Question
How to get the information (customers’ underlined needs) even the customers do not
aware of?
Answer
Customer click stream analysis
Focused group interview
Road show of new product
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1B Developing DM activities
Digital marketing activities can take place
in
Content marketing e.g. blog
Search engine marketing e.g. Google Adword
Social media e.g. facebook, Twitter, LinkedIn
Instant messaging e.g. WhatsApp, WeChat
Community marketing e.g. forums, chatrooms
Video marketing e.g. YouTube
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1B Developing DM activities
Strategy Positioning Development Lead
generation Conversion
Identify cost-
effective
marketing
activities that
yield high
return
Identify the
right
message,
call to action,
optimise the
activities to
increase
conversion
Identify cost-
effective
marketing
channels to
generate
targeted and
qualified
leads
Build digital
assets with
cost-effective
and updated
technology
Develop
differentiated
positioning
and distill
message for
target
audience
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1B Developing DM activities
Importance leading to opportunities
Understand the process
Identify the appropriate activities to generate
leads
Plan for creating relevant digital contents in
appropriate digital channels
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1B Online consumer power
Consumer power goes stronger than
before as online communities connect
individuals together
Aggregate buying power
Share good things
Also share poor
Negative impact hits hard
Source: New Voice Media
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1B Online consumer power
Online communities
Gather consumers of common interest
Example: photo-taking at www.dcfever.com
Activities in online communities
Ask for information, answer questions to gain
prestige status, share experience, jointly
create wish lists, develop offline activities
To the extreme, buy or boycott driven by the
active members
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1B Online consumer power
Evaluate the power in the subject area
Visit relevant online communities
Analyse end-user messages
Measure both positive and negative
comments
Conclude the extent of power, strong or weak?
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Tutorial
Write the opportunities of digital marketing
Describe the importance of customer insight
in the subject area
Describe how digital marketing activities can
create opportunities to reach customers
Explain the rise of online consumer power in
the subject area
Discuss how to foster positive comments
among consumers
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1C Challenges and impacts
Challenges and impacts of digital
marketing
The shift from brands/suppliers to customers
Impact of negative publicity and meeting
customer expectations
Track and monitor the multitude of devices
Competitive environment and noise
Growth of micro-moments and their impact
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1C Shift to customers
Brand and product oriented
Catalogs are grouped by product types for all
customers e.g. smart phones, cameras
Customers may need to search different
groups for a collection of products
Household customers: desktop computer, printer
Business customers: desktop computer, printer
Any differences?
Easy to find appropriate products?
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1C Shift to customers
Customer oriented
Catalogs are grouped by customer segments
to show relevant products e.g. household
customers, business customers, etc.
Customers get most information from a group
Household: desktop computer should be powerful
for playing heavy-duty games
Business: printer should be capable for high speed
high volume printing
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1C Shift to customers
Challenges and impacts
Customer oriented
Customer segments should be clearly defined
e.g. corporations, small-to-medium sized
enterprises (SMEs), professional individuals,
general households, etc.
Web catalogs should be dynamic and
customer oriented
Social media should reach various segments
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1C Negative publicity
Negative publicity
Complaint is more powerful than appreciation
People used to complain but less interested to say thanks
People share bad things easier and more effective than positive issues
High impact to the business even one bad thing goes to the public
Business should monitor and respond positively – crisis communications
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1C Customer expectations
Customer expectations
Products, features, service level, cost
Expectation management
Business can shape the expectation by
marketing communications
Challenges
Failed to manage customer expectations
would cause serious impacts
Monitoring and shaping are essential
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1C Multitude of devices
Multitude of different devices
Customers have quite a large number of
different devices e.g. smart phones, tablets,
laptops, desktops, video walls, etc.
Web Design should handle
Screen size, orientations
Input methods
Network performance
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1C Multitude of devices
Tracking and monitoring
Click stream
Hit rate
Usage statistics and trends
Challenges and impacts
Same person uses multiple devices
Difficult to differentiate one from the other
Distorted statistical results
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1C Competitive environment
Five forces model of competition
Buyers
Suppliers
Substitutes
New entrants
Industry rivalry
Identify the strength
High or medium or low
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1C Noise
Noise
Not only about negative comments
Also includes confusing information
Example: ‘consumer price index is going up’ means the selling price is going upward but
does not mean the sales would go up or down
Challenges and impacts
Identify the strength of the competitive forces
and isolate noise from the study
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1C Micro-moments
Micro-moments
A short moment of time developing an idea
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1C Micro-moments
Growth of micro-moments
Simulated by marketing communications and
social interactions
Challenges and impacts
Short moments easily developed in
individuals but difficult to materialise by
business
Take the challenges to catch the micro-
moments as opportunities of the business
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Tutorial
Write the challenges and impacts of digital
marketing
State the key areas one by one
Evaluate the challenges and impacts to the
subject areas
Suggest ways to overcome the challenges
and reduce impacts
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Tutorial
Example of customer expectations
Customer expectations go beyond the features of
most common products
Social networking sites discuss a wish list of features
that a product should have
The challenges become technical stuck point that
damages supplier reputations
The impacts cause poor sales performance
Suggest to join into social networking sites and
emphasise features of high-end products are superb
in order to lower the expectations on general products
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Tutorial
Key to success
Explain the relevant concepts
Apply the concepts into the subject areas
Evaluate any positive or negative impacts
Foresee the future changes
Suggest solutions to tackle the problems or
take the opportunities
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LO 2
Examine key digital tools, platforms and
channels, comparing and contrasting bricks
and mortar and other physical channels
2A Digital tools, platforms and channels
2B Use of digital tools to meet marketing
requirements
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2A Digital tools and platforms
Digital tools, platforms and channels
Use of digital platforms for revenue generations
Role of digital marketing communications in relation
to the 7Ps
Types of digital tools to support and enhance
marketing
Consumer life-cycle stages of digital adoption
Growth of online transactions and e-commerce
Role of automated and non-automated sales and
support activities
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2A Digital platforms
Digital platforms and the Internet
Desktop computers and notebooks
Browser-based platforms (access to web sites)
Application-based platforms (more interactive)
Opt-in email platforms (permission marketing)
Feed-based and API data exchange platforms
(push messaging and data cross-over)
Video-marketing platforms (IPTV, interactive TV)
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2A Digital platforms
Digital platforms and the Internet
Smart phones and tablets
Android browser-based platforms
iOS browser-based platforms
Mobile application-based platforms
Gaming platforms
Indoor / outdoor kiosk-type apps
Interactive signage
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2A Revenue generation
Revenue models
Membership subscriptions e.g. monthly fee
Advertising supported e.g. banner advertising
Transaction fee e.g. commissions
Usage based e.g. pay per click, Adwords
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2A Revenue generation
Match digital platforms with revenue
models to generate revenue
Examples
Online shop web sites display advertisements of
newly launched products
Mobile apps push promotion messages to selected
customers
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2A DM communications
Digital marketing communications
Including traditional marketing communications
Advertising on mass media
Public relations
Personal selling
Direct marketing
Sponsorship
Also include online tools
Display advertisements
Pay per click advertising
Search engine optimisation
Affiliate marketing
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2A Marketing mix
Marketing mix – 7Ps
Product
Price
Promotion
Place
People
Process
Physical evidence
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2A Communications and 7Ps
Match communications with 7Ps
Examples
Road show to demonstrate online order
processing (media: road show; mix: process)
Customers carry out online search and compare
features of selected products (media: search
engine, consumer review; mix: product, price)
Digital coupons delivered to customers promoting
less popular products (media: coupons; mix: price,
promotion)
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2A Digital tools
Front-end digital tools
Social networking Blog e.g. facebook, Twitter, Weibo, YouTube
Instant messaging e.g. WhatsApp, WeChat, Skype
Discussion forums
Information portals Search engine e.g. Google
Consumer review e.g. Choice
Peer-to-peer business Consumer-to-consumer (C2C) e.g. eBay
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2A Digital tools
Back-end digital tools
Search engine optimisation (SEO)
Design web pages for search engine friendly
Select appropriate wordings to enhance keyword
search effectiveness e.g. camera, DC, DSLR
Landing pages
Develop special web pages for particular
promotions e.g. register for private sales
Count the hit rates of the pages to reflect the
effectiveness of the promotions
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2A Digital tools
Back-end digital tools
Electronic data interchange (EDI)
Send and receive data among business partners in
standardised formats in order to enhance accuracy
and efficiency
Third-party payment services
e-payment gateway e.g. PayPal, Alipay
Online shop templates
Quick tools for online shop starter e.g. wix.com
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2A Digital tools for marketing
Match digital tools to marketing activities
Examples
Use of QR code to lead consumers to a landing
page of special promotion that is not available from
the usual web site
Count the hit rate
Evaluate the promotion
Analyse the needs
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2A Digital adoption
Digital adoption
Consumers adopt to use digital tools on digital
platforms and get rid of traditional channels
Consumer life-cycle stages
Innovators
Adopters
Laggards
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2A Digital adoption
Implications
At the early stage, only innovators adopt to
digital tools
Majority of adopters move in by stages
At all time, laggards refuse to adopt
Example
Offline-to-online (O2O) has been adopted by
innovators and early adopters. Early majority is
just about to adopt only.
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2A Online transactions
Growth of online transactions
Significantly higher than the growth of sales
Supports the growth of e-commerce
Source: HKTDC
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2A Online transactions
Implications
Demand on online shopping overtake physical store
sales
Internal resources go to support online shopping
Staff training to support online shopping required
Logistics and e-payment services become essential
Migration to brick and click or pure play is a must not
a choice
+
Brick and mortar Brick and click Pure Play
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2A Automated sales
Non-automated sales
Hand-written sales record
Time stamped
Paper record filing system in one sequence
only e.g. sales order number
Record search based on the sequence only
e.g. cannot search by customer name
Drawbacks: data inconsistency, omissions
and errors, time consuming, spacious filing
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2A Automated sales
Non-automated sales impact on
Sales ordering processing
Difficult to follow up customer enquiries
Inventory control
Difficult to locate stock inside the warehouse
Delivery and on-site installations
Inefficient use of delivery trucks and personnel
Billing and payment collections
Difficult to reconcile payments and receivables
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2A Automated sales
Automated sales
Data verifications at data entry
Connected to subsystems (customers,
inventory, delivery, billing, sales forecast, …) Support sales performance reporting
Support marketing mix analysis
Support marketing strategy development
Increases efficiency and reduces cost
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Tutorial
Write the digital tools, platforms and channels
Explain the digit platforms as the base of studying the subject areas
Describe how digital marketing communications support the 7Ps
Explain the use of digital tools to enhance marketing
Quote examples to illustrate the use of concepts in the subject areas
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Tutorial
Write the digital tools, platforms and
channels (con’t) Introduce the concept of digital adoption
State the current consumer life-cycle stages
in the subject areas
Explain the growth of online transactions and
the implications
Describe the advantages of automated sales
in comparison to non-automated sales
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2B Use of digital tools
Use of digital tools
Deploy relevant hardware and software
Fulfil marketing requirements
Conduct cost benefit analysis
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2B Deploy digital tools
Deploy relevant hardware
Consider which types of digital platforms
Being used by consumers
To be used by the chain stores
Value proposition to be created
Deploy relevant software
Consider which types of front-end digital tools being
used by consumers
Consider which types of back-end digital tools to be
used by the chain stores
Explain the expected results of the deployment
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2B Marketing requirements
Identify marketing requirements
Examples
Encourage the use of the online shop
Reach more potential customers
Develop brand name reputation
Propose appropriate digital tools to meet
the marketing requirements
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2B Cost benefit analysis
Estimate the cost of deployment
Initial setup costs
On-going operating costs
Costs that consumers should incur
Explain the expected benefits
Tangible benefits: increase sales, reduce
costs
Intangible benefits: business reputation,
customer satisfaction
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Tutorial
Critically analyse the use of digital tools to meet the marketing requirements of the chain stores
Quote appropriate academic references
Sources of references Web references should be less than 25%
Should cover all major areas
Referencing style In-text reference should be quoted
Harvard referencing style should be used
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Tutorial
In-text reference
Should be shown when an idea or concept or information is supported by literature
Format for one or two authors ……(surname, year). ……(surname and surname, year).
Format for three or more authors ……(surname et al, year).
Example ……is essential (Gartner et al, 2015).
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Tutorial
Format for textbook
Surname, First initial. (year). Title of the book. Edition.
City published: Publisher.
Format for journal
Surname, Initial. (year). Title of the article, Name of
the journal, volume number (issue number), page
range.
Format for web page
Surname, Initial. (year). Title of the article. [online]
website name. Available at: http://www.domain.com/
page.html [Accessed dd mmm. yyyy].