Digital Marketing & Communications

Online marketing also known as digital or Internet marketing is the process of promoting a brand, product or service over the Internet. In broad terms this can relate to Email marketing, electronic customer relationship management and any promotional activities that are carried out via a digital media:
‘Digital marketing deals with creation and placement of advertisements throughout the stages of the customer engagement cycle’. (searchenginejournal.com, 2014)

The web has affected a number of procedures within businessess with marketing possibly one of the sectors most influenced due to the potential outcomes offered in online correspondences according to (Krishnamurthy and Singh, 2005). Jenson (2008) confirms Online marketing communication (OMC) has grown to be an important part of a company's promotional mix when developing customer relationships.
Over recent years social networking sites such as Facebook and Twitter have become so big that businesses simply can’t ignore this method of communication to engage with customers. Companies are engaging with social networking sites due to the high volumes of data available to them, this includes demographic information on user profiles such as age, gender and occupation which can be used to develop good customer relations according to (Kotler, Armstrong, Wong & Saunders, 2008). This information not only helps with decision making but it also helps with customer acquisition and retention by enabling the business to have a platform for effective 2 way communication.
According to Laudon & Traver, (2014) over 85% of people throughout the world are using the Internet; this is largely due to the increasing ease of accessibility via mobile devices. With the number of people accessing the Internet increasing and the way they use the Internet becoming more diverse it is imperative that businesses follow the shift from traditional methods of marketing and develop a marketing strategy that will not only allow them to compete but also gain an edge of over their competitors on the online platform.
As the Internet has developed there has been a need for online marketing strategies to develop in order for businesses to communicate effectively with their customers. A good marketing strategy will enable businesses to gather detailed information about their customers which can be used to facilitate an effective way of building customer relationships, gaining a competitive edge over competitors and targeting new customers and retaining current customers. Davenport, (2001) argues that gathering customer data is relatively straight forward however businesses must have the required resources to interpret the data and transform this into usable information to aid the development of a marketing strategy and to make informed decisions regarding the customer needs and wants.
Experian, (2014) & Kotler (2008) say that the majority of information is gathered by tracking customer behaviour online by exploring user movements & tapping into their consumption of media products which enables businesses to determine the user’s driving force behind the interaction with online products or services. Businesses are able to gain a competitive advantage by making good use of analytical tools to retrieve data from social media sites. If used successfully analytical tools can target specific audiences & can be a key indicator of how the user interacts when purchasing online products or services. There are large numbers of information systems designed to collect data in its raw form which can then be processed into information which businesses can use to develop their online presence further. One of the commonly used analytical sites is Google Analytics; this allows the business to identify key information about how the user interacted with the webpage, this information can then be measured, analysed and reacted to accordingly. The key factor behind gathering valid information is to enable organisations to be much more targeted in their approach; this will add a lot more value to the business and would likely have a greater R.O.I (return on investment) over traditional methods where any promotion would have been made available to greater, less specific audiences.
Chaffey & Chadwick, (2012) say that more and more businesses are adopting a process known as personalisation which claims to add more value to their Internet presence the ability to reach different consumers with different creative messages, rather than having to have a single TV advert that everyone sees. It means you can subtly tailor your executions based on demographics, interests, location or even purchase history, reaching millions of consumers but each with something that seems personally relevant and interesting. A good example is EBay, they store information on items the user recently purchased, recently viewed or recently searched for which enables EBay to display products on the homepage of the website based on the user’s previous visits and tailor e-mails based on what they feel the user wants or needs. Awad & Krishnan, (2006) say that collecting and analysing user information is of growing importance in terms of building a rapport with existing customers and attracting new customers. As online businesses reduce the need for face to face interaction it’s vital that businesses use consumer information to offer a personalised service that will increase value, brand or product awareness and customer loyalty. The core objective of personalisation involves tailoring goods and services to meet the specific needs and wants of the consumer, goldsmith, (1999) goes on to say that personalisation should become one of the featured elements of the marketing mix.
Chaffey et al. (2012) describes how the changes brought about by the introduction of technology have made online and offline marketing two completely separate entities with online marketing becoming much more targeted in its approach. Traditional methods of marketing would have seen businesses sending out the same message to everyone in huge volumes and often at great expense. Online marketing strategies have had to evolve as the online platform develops to incorporate these changes, with the 4ps evolving to the 7ps. Paul & Bihani, (2014) say that:
“Borden’s original marketing mix had a set of 12 elements namely: product planning; pricing; branding; channels of distribution; personal selling; advertising; promotions; packaging; display; servicing; physical handling; and fact finding and analysis. MaCarthy (1964) redefined Borden’s 12 elements into four elements or 4Ps, namely product, price, promotion and place. Judd (1987) proposed a 5thP (people); Booms & Bitner (1980) added 3 Ps (participants, physical evidence and process).”
Online marketing as also seen the introduction of the 4is, these are interactivity, intelligence, individualisation and integration. The 4is is a theoretical framework for implementing social media marketing in the E-Business arena according to Ayankoya , (2014) who also goes on to say that the 4is can be a breakthrough in terms of strengthening and developing the marketing strategy further.

Individualisation enables businesses to develop tailored messages to be sent to specific individuals and at minimal expense based on the information they have gathered. ‘This ability to deliver “sense and respond communications” is another key feature of digital marketing’ and is a key element of developing the customer lifecycle according to Chaffey, D. Fifth Edition, (2012). Individual marketing strategies can be applied to each group of users over the relevant online platform which will result in an increased number of consumer responses, more visits to the website or an increased number of requests for services or products which will ultimately add value to the brand or product. Blake, (2014) says that “Individualisation is a critical strategy in individualising the offerings of a business to meet the different needs and values of the customer”.

Figure 1: Individualisation – Example webpage Blake, (2014)
Interactivity is known amongst professionals as inbound marketing according to Shah and Halligan, (2009) who also go on to say inbound promoting, online networking and hunt advertising do have a part to play in creating interest in brands and products. Customers now expect to be welcome and respected participants in the brands they love and they don’t want to be persuaded that something is worth buying; they want to contribute to making that brand better. Interactive marketing relies on customers preferences been expressed so that marketers can create a relevant marketing message. Unlike traditional methods interactive marketing creates 2 way communications between the brand and the customer making this a much more dynamic process. At any time customers are able to leave feedback on products or services, express concerns or express their preferences, this is all information that can be used by marketers in their advertising campaign to build marketing intelligence.
Marketing intelligence is information gathered by the business that is relevant to their sector, this is analysed specifically for the purpose of making informed and accurate decisions. The data would gathered by tracking customer behaviour and searching the environment, this would then be analysed from a number of data sources such as Google analytics so key performance indicators could be identified. This intelligence can then be used to integrate an effective marketing strategy and strategically target specific user groups with tailored messages based on certain criteria such as age, gender, wants and needs.
Businesses can use the intelligence gathered effectively on social networking platforms to develop communications, raise product awareness to targeted consumers and feed products and services directly to the consumer, the technique of pushing products to the consumer via social media platforms is described as Push and Pull factors. According to Boundless, (2014) the term push and pull describes the cycle of pushing products and services in front of potential customers and then using sales promotions and techniques to pull the customer into being pro-active in seeking out the product or service.
The key difference between push and pull marketing strategies is simply the approach business take when approaching consumers, while push marketing promotes (pushes) products to consumers pull marketing draws (pulls) the consumer to the product, however this requires a loyal group of followers according to smallbusiness, (2014). On the social media platform many businesses adopt both push and pull factors for marketing products and raising brand awareness, push and pull factors can influence the consumer’s behaviour in such a way that by pushing products in front of the consumer via newsfeeds they can pull the consumer to actively search for the product. However, the traditional method of push marketing campaigns are often associated with platforms such as print, TV, radio and direct mail communications and usually result in the message been sent to a mass audience and inevitably sending messages in mass will make the campaign less targeted. When businesses adopt this approach they are relying on a direct response from the consumer and unfortunately this isn’t always effective as it can result in additional overheads as lead times could be much longer according to Boundless, (2014). Push and pull marketing strategies integrate perfectly with social media websites as they provide a platform for businesses and consumers to talk to each other which builds up good business/customer relationships.
Through mechanisms of the push and pull factors businesses can develop Interactivity and personalisation leading to an increase in customer acquisition and higher rates of customer retention. In traditional methods of marketing, businesses would often spend large amounts of money on attracting new companies rather than satisfying the existing customer base according to Woodcock, (2011). Since the introduction of Facebook, Twitter and other social media websites businesses have been able to get much closer to their customers so they can engage in a relevant manner to increase customer retention. Nadeem, (2012) says social media can deliver financial rewards to any business regardless of size or sector if harnessed with good customer relationship management. According to Nadeem, (2012) “Financial benefits apply across the customer life cycle, in acquisition, retention, value development and managing cost to serve”.
Doyle, (2011) says that Social media enables businesses to reply quickly to feedback, provide the consumer with an active online presence, encourages audience participation, two way feedback and self-gratification as many now to turn to social media for this, however much more than this can be achieved as it provides increased visibility for the product/brand. Social media encourages user participation through “likes” and comments which help build an active online presence for the business. Increased exposure on social networking sites helps generate more interest in a product or service and as this can be targeted at certain groups of users it. This will ultimately lead to a rise in the number of website visits, enhance search engine visibility, rankings and generate targeted sales leads.
With the introduction of social media websites it’s essential that business adopt a strategic marketing approach, a marketing strategy is a logical strategy designed to help a business meet its objectives. When developing a marketing strategy it is important to remember the distinct differences between online and offline marketing. According to Kotler, (2008) online advertisements need to be aesthetically pleasing on the eye and SEO friendly. Offline advertisements may be more creative and artistic with the intention to attract user’s attention. Businesses should also consider an integrated approach to marketing by enabling both the online and offline strategies to support each other.
When developing a marketing strategy many businesses adopt a framework known as the marketing mix, Chaffey et al. (2012) describes the marketing mix as a logical and strategic framework used for varying elements of the businesses product, however Kotler & Armstrong, (2014) describe the Marketing mix as a defined set of tactical marketing tools 4ps that a business blends to produce the response it wants in the target market. The marketing mix is better known as the 4ps Product, Place, Price and Promotion.

Figure 2: The Marketing Mix, marketing mix, (2014)
The primary aim of the 4ps marketing strategy is to facilitate the business meeting its marketing objective which in most cases is to provide the consumer with value. The 4ps are related and if the strategy is adopted correctly it can help establish the product or service within its target market. The 4 P’s marketing mix is based on the seller’s view of the market, however Kotler and Keller (2012) argue that this isn’t always the best way to view the market, and instead the main focus of a marketing strategy should be from the buyer’s point of view. The 4ps marketing mix is said to omit or underemphasize some of the key aspects of online marketing with a major focus on the product rather than the service and therefore there has been a need for the 4ps to evolve to the 7ps to incorporate the online platform. The additional 3ps are people, process and physical evidence, according to Chaffey et al., (2012) an 8th p could also be included in the marketing mix to reflect the growth of the internet and in particular social media, and this p is partnership.
The 4ps role in strategy enables businesses to become more effective online, there has been a fundamental shift in how we develop and make use of new online tools to communicate with consumers, Chaffey (2011) points out the significance of the association with clients and says that the inability to assemble those connections is the number one reason for disappointment of numerous e-organizations. The 4ps strategy enables businesses to target specific user groups and then tailor products around their needs based on the information they have gathered.
The Internet accommodates the need for businesses to vary their marketing mix as how consumers define, perceive or consume products is changing all the time. The Internet has facilitated the evolution of products enabling many businesses sectors to gain a competitive advantage through the digitisation of products and services. A number of businesses reacted to the shift from tangible goods to online services and according to Kotler and Keller (2012) items as such as E-Books as downloadable products are becoming increasingly more popular as consumers have instant access to information whenever they want it and from any location. Opening up digital channels and allowing users to download products directly to their PC or mobile device will increase product availability and generate additional sales. The fact that very little human-human interaction is required throughout the whole process of purchasing online costs can be reduced, coupled with the fact that online business have minimal overheads it often means online products can offered at a lower price. Businesscasestudies, (2015) states that customers draw their own opinion of what they think the product is actually worth and ‘it’s important when deciding on price to be fully aware of the brand and its integrity’. The danger of pricing a product too low is that the customer may feel that the quality is low and in some way compromised. Reduction in price to match that of your competitors can often result in no extra demand for the product hence meaning the profit margin is reduced with no increase in sales figures. Businesses now are looking at adopting different techniques which enables them to Increase price transparency, adjust the price of a product to attract potential customers and remain competitive at the same time.
Delivery costs are another element which can impact web purchasing behaviour, Chaffey and Chadwick, (2012) confirm that if free delivery is offered the popularity of the website will increase and goes on to say that “the objective of place is to minimise operational costs in terms of inventory, transportation and storage whilst achieving widespread availability of the product”. The place would be the social media platform; businesses choose to target their market audience there as this is where they are most active and therefore most likely to engage.
Chaffey et al., (2012) states that promotion of a product or service is often the biggest contributor to the overall cost of producing or developing a product or service. Social media now facilitates the promotion of products or services through communication and effective customer engagement. Effective customer engagement helps build brand loyalty and awareness and helps create personalised approach to marketing which will help the development of customer retention based on the customer life cycle approach.

Figure 3: The 4ps to the 4cs, custom fit, (2012)

Chaffey (2009) refers to the marketing mix as a pull approach as it is product orientated rather than customer orientated. However, in order to resolve the issue of a purely product based approach Lautenborn (1990) suggested the introduction of the 4 C’s framework which has the same principles as the 4ps but from a customer point of view. The introduction of the 4cs was designed to accommodate the shift from a focus on the product to a focus on the customer. This strategy is known as the 4cs marketing mix with the 4cs been consumer value, cost, convenience and communication. ‘Here, instead of beginning the story with a product itself, the focus is on selling only what the customer specifically wants to buy.’ entrepreneurial-insights, (2015).

Figure 4: The customer lifecycle (minacs.com)
Chaffey (2009) describes relationship marketing as a tool designed to increase customer loyalty and retention of customers. When people take part in social media activities they are providing businesses with some key information about themselves such as Gender, relationships and Interests according to Hernandez, (2013). Many businesses have become dependent on the information that can be gathered from the social media platform as this gives them an insight into the purchase behaviour of the customer and enables the business to gather information relating to the critical success factor (CSF), this describes the process of the customer telling the business what they should be good at and core competences (CC) which describe what the business is good it.
These activities also enable businesses to gain better knowledge on consumer trends and consumer characteristics according to Hernandez, (2013). Social media platforms are fantastic for the facilitation of long term relationships between the business and consumer in both the online and offline environment. The “RACE Planning Framework” (Reach, Act, Convert, Engage) have been developed to facilitate how organizations can build brand and product awareness. The “RACE” planning framework gives businesses a solid foundation to build their digital marketing strategy on. Using the Race strategy successfully facilitates businesses ability to influence their target audience with the intention to convert interest in a product or service into sales. The race framework also helps develop a communication platform to increase customer retention. The framework is based around 4 stages, reach, act, convert and engage. These stages form the stages of the customer lifecycle from generating interest in the brand as part of customer acquisition, building relationships and the delivery of on-going sales through customer engagement. (http://www.smartinsights.com/)
Social media also facilitates the process of customer acquisition as this platform is considered fantastic for influencing the engagement of the customer. Social media enables consumers to actively take part in 2 way conversations and engage with the businesses marketing promotions and advertisements however, this does relieve the business of some of its control as they have no control over the messages/feedback that a consumer may write about a business according to Smith, (2009). Engagement with the consumer on social media platforms helps to retain the existing customer base and helps build brand and product loyalty.
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