DIGITAL MARKETING

Hanlon_Digital Marketing_AW.indd 4 12/10/2018 12:55

Sara Miller McCune founded SAGE Publishing in 1965 to support the dissemination of usable knowledge and educate a global community. SAGE publishes more than 1000 journals and over 800 new books each year, spanning a wide range of subject areas. Our growing selection of library products includes archives, data, case studies and video. SAGE remains majority owned by our founder and after her lifetime will become owned by a charitable trust that secures the company’s continued independence.

Los Angeles | London | New Delhi | Singapore | Washington DC | Melbourne

Annmarie Hanlon DIGITAL

MARKETING STRATEGIC PLANNING & INTEGRATION

Hanlon_Digital Marketing_AW.indd 5 12/10/2018 12:55

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Editor: Matthew Waters Editorial assistant: Jasleen Kaur Production editor: Nicola Carrier Copyeditor: Elaine Leek Proofreader: Sharon Cawood Indexer: Silvia Benvenuto Marketing manager: Alison Borg Cover design: Francis Kenney Typeset by: C&M Digitals (P) Ltd, Chennai, India Printed in the UK

© Annmarie Hanlon 2019

First published 2019

Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act, 1988, this publication may be reproduced, stored or transmitted in any form, or by any means, only with the prior permission in writing of the publishers, or in the case of reprographic reproduction, in accordance with the terms of licences issued by the Copyright Licensing Agency. Enquiries concerning reproduction outside those terms should be sent to the publishers.

Library of Congress Control Number: 2018966917

British Library Cataloguing in Publication data

A catalogue record for this book is available from the British Library

ISBN 978-1-5264-2666-6 ISBN 978-1-5264-2667-3 (pbk)

At SAGE we take sustainability seriously. Most of our products are printed in the UK using responsibly sourced papers and boards. When we print overseas we ensure sustainable papers are used as measured by the PREPS grading system. We undertake an annual audit to monitor our sustainability.

This book is dedicated to Nick, who positively makes all things possible.

To my parents, who were there at the start but left before the ink was dry, Ar dheis Dé go raibh a n-anam.

CONTENTS List of Figures viii

List of Tables xi

About the Author xiii

Acknowledgements xiv

Preface xv

Online Resources xvi

Part 1 Digital Marketing Essentials 1

1 The Digital Marketing Landscape 3

2 The Digital Consumer 24

Part 2 Digital Marketing Tools 49

3 The Digital Marketing Toolbox 51

4 Content Marketing 95

5 Online Communities 125

6 Mobile Marketing 151

7 Augmented, Virtual and Mixed Reality 181

Part 3 Digital Marketing Strategy and Planning 203

8 Audit Frameworks 205

9 Strategy and Objectives 225

10 Building the Digital Marketing Plan 249

11 Social Media Management 270

12 Managing Resources 294

13 Digital Marketing Metrics, Analytics and Reporting 309

14 Integrating, Improving and Transforming Digital Marketing 339

References 361

Index 386

LIST OF FIGURES 1.1 A framework for analysing the pace of technology substitution 5 1.2 Application of digital disruption across industry sectors 13 1.3 Consumer-centric IoT business models 15

2.1 The scope of consumer behaviour 27 2.2 Technology Acceptance Model (TAM) 29 2.3 Typology of consumer communication (C2B/C2C) in the

digital age 32 2.4 Online customer service experience (OCSE) conceptual model 41

3.1 Digital marketing toolbox 54 3.2 Example of email marketing 56 3.3 Why email works model 58 3.4 Tweet from AdAge 69 3.5 ASOS off-page SEO 74 3.6 Model of blog success 81 3.7 The honeycomb model 84 3.8 Investing in social media 90

4.1 From keyword to long-tail keyword 98 4.2 The Furrow Russian edition 100 4.3 The Content Marketing Pyramid 105 4.4 Strategic content building blocks for awareness 106 4.5 Example of image used for brand awareness 107 4.6 Strategic content building blocks for conversion 108 4.7 Strategic content building blocks for retention 109 4.8 Paid, owned, shared, earned (POSE) media model 113 4.9 The TripAdvisor® content gate 119 4.10 Example of targeted content by Superdry 120 4.11 Content themes and content promotion framework 121 4.12 The Content Maximiser™ 122 4.13 Examples on the vividness to interactivity scale 123

5.1 Example of London Northwestern Railway Trains’ use of Twitter as a customer service channel 141

5.2 Key factors in online community management 141 5.3 Community lifestages model 144 5.4 Example of customer complaining behaviour – directness 146 5.5 The place of social media in the customer complaining process 147 5.6 Example of double deviation by an organisation 149

6.1 The structure of an m-payment ecosystem 158 6.2 The elaboration likelihood model of persuasion 162

LIST OF FIGURES ix

6.3 Mobile advertising effectiveness framework 164 6.4 How ad networks work to manage publishers,

applications and advertisers with an advertisement library 166

7.1 Simplified representation of a ‘virtuality continuum’ 183

7.2 Technology Readiness Scale 186 7.3 Technological variables influencing telepresence 188 7.4 Lockheed Martin Mars Experience Bus 191 7.5 Typology of experiential value 194 7.6 IKEA VR kitchen app 195 7.7 Gatwick Airport augmented reality wayfinding

app using beacons 197 7.8 Conceptual model for an adoption framework for mobile

augmented reality games 199

8.1 Digital marketing audit in context 207 8.2 Ten Cs of marketing for the modern economy 209 8.3 Forrester’s 5Is 220

9.1 The TOWS matrix 230 9.2 The social media strategy framework 234 9.3 The acquisition, conversion, retention framework 236 9.4 The McKinsey consumer decision journey 238 9.5 Hierarchy of objectives 242 9.6 Business goals adapted into digital marketing objectives 243

10.1 The 9Ms of resource planning 258 10.2 Social media campaign planning process 262 10.3 Framework for digital marketing campaign objectives 263 10.4 Impact and effort matrix 268

11.1 Increasing levels of media richness 275 11.2 Classification of social media by social presence/media

richness and self-presentation/self-disclosure 276 11.3 Stage model of social media adoption 280

12.1 Line messaging system 296 12.2 The T-shaped web marketing skill set 297 12.3 The T-shaped web marketer 298 12.4 The Suitability, Acceptability, Feasibility (SAF) framework 304

13.1 Weak, acceptable and strong metrics 315 13.2 Flowchart of customer search loop 320 13.3 Example of web address using UTMs 325 13.4 When Facebook users are on site for a business to business

organisation 326

DIGITAL MARKETINGx

13.5 Strategic dashboard 334 13.6 Framework for the adoption and success of dashboards 336

14.1 Vanish Tip Exchange example 342 14.2 Communication goals 344 14.3 IMC conceptual framework 345 14.4 Example heatmap 350 14.5 Actual customer journey 352 14.6 Path to superior firm performance 359

LIST OF TABLES 1.1 Adopter categories and general characteristics 7 1.2 The move from traditional to digital marketing tools 10 1.3 Generational cohorts 11

2.1 Differences in customer acquisition for traditional and digital consumers 28

2.2 Initial scale items for Perceived Usefulness and for Perceived Ease of Use 30

2.3 Customer experience management 38 2.4 What we know about customer experience 38 2.5 Service blueprinting with examples 42 2.6 Aligning the customer journey and business strategy 43

3.1 Development of the digital marketing toolbox 53 3.2 Website purpose and function 61 3.3 Examples of HTML code 73 3.4 Personal data available via social media pages 84 3.5 The utility of social media for business 88

4.1 Content Marketing Strategy Framework 101 4.2 Content purpose blueprint 102 4.3 Digital persona elements 103 4.4 Storybox Selection™ 104 4.5 Content purpose blueprint and metrics 112

5.1 Timeline of online communities 128 5.2 Demographic features within online communities 134 5.3 Rules of engagement examples 142 5.4 How to manage different types of online complaints 148

6.1 Mobile marketing implications 152 6.2 Use of wearables for marketing 160 6.3 Mobile advertising options 163 6.4 Benefits and downside of programmatic advertising 168

7.1 Virtual and augmented reality timeline 184 7.2 Six dimensions of interactivity 189 7.3 Experiential value applied to retail examples of

virtual and augmented reality 194 7.4 Industry bodies 200

DIGITAL MARKETINGxii

8.1 Customisation techniques 214 8.2 Reasons why customers make contact with organisations 216 8.3 Evaluation of British Airways’ current digital marketing methods 221 8.4 Digital PESTLE used as an evaluation of opportunities and threats 222

9.1 Themes and metaphors in marketing 227 9.2 Strategy models 228 9.3 Digital marketing strategy models 232 9.4 Application of the McKinsey consumer decision

journey to strategy 239 9.5 Business goals based on organisation type 242

10.1 Digital application of the 7Ps to ASOS and Boohoo 252 10.2 Strategy, digital marketing objectives and tactics 253 10.3 One-page digital marketing plan 254 10.4 Building the action plan 256 10.5 Digital media plan example 267

11.1 Overview of main social media platforms 271 11.2 Prominent features of the four social media tools 276 11.3 Summary of the 5C categorisation 278 11.4 Risk evaluation for an #AMA event 283 11.5 Social media monitoring and management tools 288 11.6 Midlands Air Ambulance Charity aligning the digital

marketing and social media strategy 292

12.1 The RASCI and RACI models 301 12.2 RACI roles and responsibilities example 302 12.3 Key considerations in the SAF framework 305 12.4 SAF framework scoring example applied to PetBnb 306

13.1 Twitter data 311 13.2 Metrics from traditional to digital 312 13.3 Financial KPIs 314 13.4 Metrics and how to apply them 316 13.5 Web analytic data elements 321 13.6 Social media analytics terminology 325 13.7 Email analytics data available 328 13.8 Management and dashboard systems 337

14.1 Message appeals applied to digital marketing 341 14.2 The 7Cs of integration 343 14.3 The 4Cs of cross-platform integration 348 14.4 Companies failing to adopt digital business 353

ABOUT THE AUTHOR Annmarie Hanlon is a Senior Lecturer in Digital Marketing at the University of Derby and a practitioner who works on digital marketing strategy and social media projects with charities, household names and service businesses.

Originally a graduate in French and Linguistics, Annmarie subsequently gained a Masters in Business Administration, focusing on marketing planning. She studied for the Chartered Institute of Marketing Diploma for which she won the Worshipful Company of Marketors’ award for the best worldwide results.

As an early adopter, working in ‘online marketing’ since 1990, she is a Senior Examiner in digital strategy, a Fellow of the Chartered Institute of Marketing, a Member of the Marketing Institute Ireland and a Liveryman of the Worshipful Company of Marketors. Annmarie is past winner of the Mais Scholarship and her research interests include the strategic use of social media in organisations, differences in practice between generations and the technology that makes it happen.

Follow her updates on Twitter @AnnmarieHanlon

ACKNOWLEDGEMENTS Writing a textbook on digital marketing is achieved with a supporting cast of prac- titioners and academics. As a hybrid part-academic and part-practitioner I am in a wonderful and unique space with access to students as well as organisations of all shapes. Whilst I would like to list everyone who has helped, this would be like the never-ending speech at the awards ceremony! May I thank you all, you know who you are #RoundOfApplause.

Special thanks are due to: Karen Jones at Aston University, who provided constant motivation and helped with the content marketing and online communities chapters; Adam Civval at Greendog Digital, David Peck at the University of Derby and Peter Rees, an examiner in digital marketing, who all provided inspiration and ideas for mobile marketing; Karl Weaver, the CEO of Isobar, who shared insights into program- matic advertising; Richard Shambler, a long-established examiner in digital marketing and an expert in the SAF framework; some of my former digital marketing students now working in agencies and in-house: Joe Alder, Imogen Baumber and Jade Walden.

Thanks to those behind the scenes, including: Jonathan Saipe and Tracey Stern, who deliver digital training at Emarketeers, Brian O’Kane at Oak Tree Press in Cork, who inspired me to write my earlier practitioner books, Dave Chaffey, who encouraged me to write a textbook, plus the plethora of anonymous reviewers who provided fantastic feedback.

Translating the book from an idea to reality was made possible by the detailed and dedicated SAGE team, ably managed by Matthew Waters, Delia Alfonso and Jasleen Kaur.

PREFACE Digital marketing is a journey that can take an organisation towards new markets, discover new opportunities and protect the current landscape. In the digital marketing journey you can choose to be a navigator or a passenger. As a navigator you explore options, set the course and lead the way. As a passenger you can sit back and take in the scenery or you can lean forward and advise the navigator.

Whilst digital marketing was established 20 years ago and is one of the fastest moving and most exciting aspects of marketing today, there are fewer universities and colleges providing digital marketing education. As a result there is still a lack of understanding and fewer established frameworks to make it easier to adapt business practices and adopt new ways of working. This book aims to provide that understanding and share the latest concepts to apply in organisations, whether you are a student working on a case study, or heading into your placement year, or juggling a part-time vocational marketing module with work.

Students can think of this textbook as a digital marketing roadmap, a blueprint for your digital journey, to enable you to become navigators rather than passengers.

The book contains three key parts. Depending on your knowledge you may start at Part 1 or jump straight into Parts 2 or 3.

Part 1, Digital Marketing Essentials, equips you with a useful context to the digital landscape. Discover the key concepts to understand how we arrived in this new world and comprehend more about the changing digital consumer.

Part 2, Digital Marketing Tools, provides a rich source of the key components. It starts with an overarching toolbox that explores all possible digital marketing tactics, followed by more detail with dedicated chapters on content marketing, online com- munities, mobile marketing and augmented, virtual and mixed reality. It is critical to understand the tools available before embarking on a digital strategy.

Once you have comprehended the digital marketing tools, this is a good time to explore Part 3, Digital Marketing Strategy and Planning. This part investigates digital audit frameworks to ensure you are ready to develop the strategy and objectives, before building the digital marketing plan. Newer issues, including social media management, managing resources, digital marketing metrics, analytics and report- ing, are included. The part concludes with methods of integrating, improving and transforming digital marketing, enabling you to apply the knowledge and tools gained though the chapters.

Enjoy the journey and let’s start the campaign to create more digital navigators!

ONLINE RESOURCES

Head online to access a wealth of online resources that will aid study and support

teaching, available at: https://study.sagepub.com/Hanlon. Digital Marketing:

Strategic Planning & Integration is accompanied by:

FOR LECTURERS • Editable PowerPoint slides will allow you to easily integrate each chapter into

your lessons and provide access to figures from the book

• Kahoot! quizzes will help you test students’ knowledge and understanding of the materials

• Instructor manuals for each chapter will provide further support when teach- ing each chapter and encourage discussion in sessions

• A digital marketing strategy and plan template can be used to help students get their project off the ground

• Downloadable templates can be added to course resources or printed out for use in class

FOR STUDENTS • Follow the links to SAGE journal articles selected by the authors to help you

supplement your reading and deepen your understanding of the key topics outlined in each chapter

• Access links to helpful websites with lots of extra information to reference in your assignments

PART 1 DIGITAL MARKETING

ESSENTIALS

CONTENTS

1 The Digital Marketing Landscape 3 2 The Digital Consumer 24

1 THE DIGITAL

MARKETING LANDSCAPE

LEARNING OUTCOMES When you have read this chapter, you will be able to:

Understand key issues in the digital landscape

Apply communications theories to a digital environment

Analyse technology change

Evaluate blockchain potential

Create a plan to become an opinion leader

PROFESSIONAL SKILLS When you have worked through this chapter, you should be able to:

• Manage online reputation using third-party tools

• Apply the search engines’ EU privacy removal process for unwanted content

DIGITAL MARKETING4

1.1 INTRODUCTION The fast-changing digital landscape provides many opportunities for marketers. It is important to understand key concepts such as ubiquitous computing and how the pace of technology has changed. This chapter explains how traditional marketing models like Diffusion of Innovation are still valid and apply to online opinion lead- ers, as well as differences between generations.

We explore the meaning and impact of ‘digital disruption’ and ‘the Internet of Things’, with new business models emerging to understand how this applies to consum- ers. In a world where your personal information has value, you can discover more about ‘big data’ and privacy issues that affect marketing plans. The last part of this chapter considers bitcoin and blockchain and how this might influence the future of data management.

1.2 A NEW ERA The growth of digital marketing has changed the relationship between businesses and customers. Scholars and practitioners agree that organisations are keen to use digital marketing to engage with their customers and we have moved into a new era where things look different.

KEY TERM UBIQUITOUS COMPUTING The term ‘ubiquitous computing’ was originally coined by Mark Weiser, who was head of the Computer Science Laboratory at the Xerox Palo Alto Research Center (PARC) when writing in Scientific American in 1991 (Weiser, 1991). At that time Weiser commented that in the future there would be computers everywhere and we would not notice their presence; they would just be there.

Some decades later, we have computers at home and with us at university; they are embed- ded in our mobiles, wearables, in cars, in outdoor billboards – everywhere. We have reached Weiser’s vision that computers are integrated ‘seamlessly into the world at large’ (p. 94).

One of the reasons for these trends and the change in the digital landscape is due to the acceleration in the adoption of new technologies. It took more than 50 years for over 50% of US households to adopt telephones (imagine life with no phone!), nearly 20 years to adopt home computers, yet it took less than 10 years for the same group to adopt smartphones.

In a pre-digital age, you booked a holiday by visiting the travel agents on the high street. It was only on arrival at your holiday destination that you saw what the hotel really looked like. Today you will go online, read reviews, see ‘traveller photos’ or holiday snaps others have shared and ask questions of people who have actually visited the destination ‘IRL’ (= in real life).

THE DIGITAL MARKETING LANDSCAPE 5

1.2.1 THE PACE OF TECHNOLOGY SUBSTITUTION Writing in the Harvard Business Review, Ron Adner and Rahul Kapoor (2016) explored the pace of technology substitution and suggested that the speed of replacement was based on ecosystems. Old technology ecosystems may find product extension oppor- tunities whereas the new technology ecosystems need to counter these challenges. Within their framework there are four quadrants, as shown in Figure 1.1, which can be described as:

• Creative destruction, where there are few challenges to the new tech and few opportunities for the old tech, resulting in fast substitution.

• Robust coexistence, where the old tech fights back and brings out alternatives and a gradual substitution takes place.

• Illusion of resilience, where the new tech moves in with few challenges.

• Robust resilience, where old tech fights back and new tech challenges, bringing about a gradual substitution.

LOW

HIGH

LOW

HIGH

ECOSYSTEM EXTENSION OPPORTUNITY FOR OLD TECHNOLOGY

E C

O S

Y S

T E

M E

M E

R G

E N

C E

C H

A LL

E N

G E

F O

R N

E W

T E

C H

N O

LO G

Y QUADRANT 3

ILLUSION OF RESILIENCE

STASIS FOLLOWED BY RAPID SUBSTITUTION

• GPS NAVIGATORS VS. PAPER MAPS

• HIGH-DEFINITION TV VS. STANDARD-DEFINITION TV

• MP3 FILES VS. CDS

QUADRANT 2

ROBUST COEXISTENCE

GRADUAL SUBSTITUTION

• SOLID-STATE VS. MAGNETIC STORAGE (E.G. FLASH MEMORY VS. HARD DISK DRIVES)

• HYBRID ENGINES VS. INTERNAL- COMBUSTION ENGINES

• CLOUD COMPUTING VS. DESKTOP COMPUTING – IN 2016

QUADRANT 4

ROBUST RESILIENCE

SLOWEST SUBSTITUTION

• FULLY ELECTRIC CARS VS. GASOLINE-FUELLED CARS

• RFID CHIPS VS. BARCODES

• DNA MEMORY VS. SEMICONDUCTOR MEMORY

• CLOUD COMPUTING VS. DESKTOP COMPUTING – IN THE 1990S

QUADRANT 1

CREATIVE DESTRUCTION

FASTEST SUBSTITUTION

• 16GB VS. 8GB FLASH DRIVES

• INKJET PRINTERS VS. DOT MATRIX PRINTERS

Figure 1.1 A framework for analysing the pace of technology substitution

Source: Adner and Kapoor, 2016, p. 66

DIGITAL MARKETING6

It could be argued that there are limitations to this framework as the research was based on a five-year study in the semiconductor manufacturing industry and adop- tion of new products is not always based on product desire, but also availability. In some countries it is harder to get a landline phone than a mobile. The landline requires wires and major investment whereas a mobile network is simpler to deploy. At the same time, growth in landline telephone ownership is declining sharply, espe- cially in the G12 industrially advanced nations. Explore the latest statistics on the Telecommunication Development Sector (ITU-D, 2017).

Activity 1.1 Analyse Technology Change 1. Working in groups, use Figure 1.1, the framework for analysing the pace of technology substi-

tution, to analyse the types of technology changes that you have witnessed in your lifetime.

2. What were the greatest changes?

3. Why was this?

4. Are there any difficulties ensuring all four quadrants in the framework are included?

How do we learn about new products or what influences our judgement to adopt new technology? In 1944 sociologists and behavioural scientists Paul Lazarsfeld, Bernard Berelson and Hazel Gaudet conducted a study to see how mass media affected voters in the US election campaign for President Franklin Roosevelt (Lazarsfeld et al., 1944). The surprising result of their research was that it was influencers, or opinion leaders, not the media, that had the greatest impact. Influencers, who received the messages from what at that time were mainly traditional newspapers and radio, shared this with their ‘followers’.

1.2.2 TWO-STEP FLOW THEORY OF COMMUNICATIONS The research was further developed by Paul Lazarsfeld and Elihu Katz who named this

the two-step flow theory of communications (Lazarsfeld and Katz, 1955) where the

media communication was received by the influencer and then passed to other

individuals.

There were limitations to the two-step flow theory of communications. It was based on one piece of research, which meant that it was not necessarily generalisable to other situations. It may be that this was a set of exceptional circumstances that could not be repeated. Another issue is that it was a simplistic binary model which assumed that this is how mass media worked. As a result of these limitations, the model was extended from two to multiple steps (the multi-step flow), which was developed by John Robinson (Robinson, 1976) and was used as a basis for other communications theories.

THE DIGITAL MARKETING LANDSCAPE 7

A key aspect of the digital environment is that we have moved from two-step or multi-step to a totally different understanding of communications with newer models emerging, such as media richness (see Chapter 11, Social Media Management) and uses and gratifications theory (see Chapter 13, Digital Marketing Metrics, Analytics and Reporting), although at the same time some much older theories, such as diffu- sion of innovations, have remained valid.

KEY TERM DIFFUSION OF INNOVATIONS In 1962 Everett Rogers published a book entitled Diffusion of Innovations, which was based on the two-step flow of communications and explored the conditions that increased or decreased the likelihood of product adoption.

In this model, based on how a product gains momentum and spreads or diffuses through a group, Rogers proposed five adopter categories – (1) innovators; (2) early adopters; (3) early majority; (4) late majority; (5) laggards – which considered the time at which an individual adopted an innovation.

The five adopter categories were ideal types fabricated to make comparisons, and Rogers recognised these generalisations. There was criticism of the terminology – no one wanted to be considered as a laggard, which was perceived as b

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