Digital Marketing Fundamentals

1 Digital Marketing 13
1.1 Definition of Digital Marketing 14
1.2 Digital Marketing versus traditional marketing 15
1.3 Digital Marketing and the Marketing Mix 17
1.4 Digital Marketing in relation to business processes 18
1.5 Development of Digital Marketing 20
1.6 Two important models for Digital Marketing communication 21
1.7 The outline of this book 24
Questions and assignments 26
Case: Digital Marketing at Marriott 26

2 Strategy and Business Models 31
2.1 Digital Marketing and Strategy 32
2.2 Marketing Strategy 34
2.3 The business model 37
2.4 Determining the impact of new internet technology on Digital Marketing 57
Questions and assignments 62
Case: Cleartrip 63

3 Market Sensing 69
3.1 Internet usage 70
3.2 Online shopping behaviour 73
3.3 Online buying process and the Digital Marketing funnel 76
3.4 Use of social media 89
3.5 Online Market Research 94
3.6 Big data and customer insights 107
3.7 Relevant trends in Digital Marketing 115
Questions and assignments 126
Case: How Alibaba benefits from Singles Day 127

4 Product Realisation 131
4.1 The aim of the product realisation process is customer value 132
4.2 Co-creation 135
4.3 Product development, mass collaboration and crowdsourcing 137
4.4 Developing and setting up online products 142
4.5 Product improvement 159
Questions and assignments 165
Case: Hire your neighbour’s car with SnappCar 166

5 Customer acquisition: digital brand communications 171
5.1 Digital Marketing communication: the basis 172
5.2 Role of Digital Marketing communications in brand management 184
5.3 Role of social media in digital brand communications 189
5.4 Content marketing 200
5.5 Mobile communications 208
Questions and assignments 216
Case: Digital Brand communications at Patagonia 217

6 Customer acquisition: recruiting visitors through owned or earned channels 223
6.1 Using digital communications and sales channels to reach and win customers 224
6.2 Search Engine Marketing 226
6.3 Link-building 232
6.4 Use of social media channels 243
6.5 Email marketing 254
6.6 Marketing automation 266
Questions and assignments 272
Case: Samsung UK targets SMEs 272

7 Customer acquisition: recruiting visitors through paid channels 277
7.1 Digital Marketing communication through paid channels 278
7.2 Paid Search (Pay-Per-Click = PPC) 279
7.3 Online display advertising 295
7.4 Advertising on social networks 314
7.5 Affiliate marketing 320
7.6 Using online games for advertising 337
Questions and assignments 340
Case: Under Armour ecommerce (Google Shopping) 341

8 Customer acquisition: sales and pricing 347
8.1 Selecting digital sales channels 348
8.2 Online sales via ecommerce sites and apps 351
8.3 Online sales advice 365
8.4 Online price setting 370
Questions and assignments 384
Case: ASOS 385

9 Order processing 389
9.1 Selection of distribution channels 390
9.2 Payments 395
9.3 Sub-processes of order processing 407
9.4 Online service 411
Questions and assignments 420
Case: IKEA focuses on customer experience and self-service 420

10 Customer relationship management 427
10.1 Digital customer relationship management 428
10.2 Working with customer groups 439
10.3 Encouraging customer satisfaction and loyalty 444
10.4 Increasing customer value 451
10.5 Individual value propositions 456
10.6 Social CRM 461
Questions and assignments 467
Case: Fashion brand Diane von Furstenberg makes customers feel special 467

11 Designing effective websites and apps 473
11.1 Effectiveness of websites and apps 474
11.2 Influencing the visitor 478
11.3 Website usability 484
11.4 Web content and web text 489
11.5 Interaction and conversion 497
11.6 Effective landing pages 502
11.7 Search Engine Optimisation (SEO) 505
11.8 The development of an effective app 513
Questions and assignments 520
Case: An International Marketing Award for the Anne Frank Foundation 521

12 Digital analytics 525
12.1 Digital analytics: definition and starting points 526
12.2 The Digital Marketing funnel translated into performance indicators 528
12.3 Different traffic sources within digital analytics 537
12.4 The ABC Model: the Digital Marketing funnel 548
12.5 Recognising the phase that the visitor is in 551
12.6 Social media metrics 553
12.7 Digital analytics in the organisation 556
Questions and assignments 559
Case: Digital Analytics in practice at Van der Valk Hotels 560

13 Planning and organisation 565
13.1 Organising Digital Marketing activities 566
13.2 Digital Marketing plan 577
13.3 Project management 590
13.4 Security measures against cybercrime 603
13.5 Legal aspects of Digital Marketing 605
Questions and assignments 617
Case: Online food delivery service Deliveroo 618

References 622
Illustrations 632
Index 634
About the authors 645