Lecture slides for Stockholm School of Economics Marketing II course spring 2010 (based on chapter 18 of Jobber's Principles and Practices of Marketing textbook used in the course)

1. Digital Marketing
Dr. Robin Teigland
Stockholm School of Economics
robin.teigland@hhs.se
www.knowledgenetworking.org
www.slideshare.net/eteigland

2. Today’s discussion
Background to digital marketing
Reshaping the marketing mix – 4Ps
Digital marketing implementation
Beyond marketing through digital marketing
 Guest speaker – Lisa Enckell (SSE 4M)
2

3. What is digital marketing?
The application of digital technologies that form channels to
market…
− Internet (2D to 3D)
− Mobile communications
− Interactive television
− Interactive traditional media (billboards, print)
− Wireless
…..to achieve corporate goals through meeting and
exceeding customer needs better than the competition.
Adapted from Jobber 2007
3

4. Social Media Revolution
http://www.youtube.com/watch?v=sIFYPQjYhv8
How are these trends affecting the
traditional marketing mix?
4

5. Key elements of the digital age
Jobber 2007 5

6. A new consumer is appearing…
“Digital Natives” “Digital Immigrants”
Prensky 2001, Beck and Wade 2004, Mahaley 2008

7. ..using a growing number of social media
Adapted from FredCavazza.net

8. Traditional marketing vs digital marketing
http://adultaddstrengths.com/2008/11/05/obama-
vs-mccain-social-media/
8

9. OBAMA dot GOV
 Barak
− Lessig call
DesAutels 2008

10. Today’s discussion
Background to digital marketing
Reshaping the marketing mix – 4Ps
Digital marketing implementation
Beyond marketing through digital marketing
 Guest speaker – Lisa Enckell (SSE 4M)
10

11. Reshaping the marketing mix
Jobber 2007 11

12. Digital marketing media
 Internet (2D and 3D, virtual worlds)
 Mobile communications
 Wireless
 Interactive television
 Interactive billboards and print
Adapted from Jobber 2007 12

13. Reshaping price
Transparent
Flexible
Dynamic
Jobber 2007 13

14. Real-time price comparisons
http://www.youtube.com/watch?v=4sqo9RiIYCY&feature=related 14

15. Reshaping place
Redgrave
Global, virtual, &always open
•Distance no longer a cost
•Business location irrelevant
•24/7 real-time trading
Jobber 2007 15

16. Reshaping place
IBM’s Green Data Center
in Second Life
16

17. Reshaping promotion
Permission-based
Instantaneous – real time
Interactive Jobber 2007 17

18. Reshaping promotion - Interactivity
www.bbc.co.uk/
Convergence
of technologies
www.mobilitysite.com
18

19. Reshaping promotion - Interactivity
 Interactive ads in traditional print media
− Augmented reality, mobile phones
− http://www.youtube.com/watch?v=RsZTbIjLHNA&feature=related (zoo)
− http://www.youtube.com/watch?v=S-G8u-
01t0k&feature=PlayList&p=46ED12AC63B128FC&playnext=1&playnext_from=PL&index
=1 (car)
 Interactive billboards
− Video, mobile phones
− http://www.youtube.com/watch?v=BK7qfpvod2w&feature=related (Shanghai)
− http://www.youtube.com/watch?v=5-
bNZRAypgQ&feature=PlayList&p=CDD9F931D4215694&playnext=1&playnext_from=PL
&index=1 (Nokia)
 Interactive video advertisements
− Video, internet
− http://www.youtube.com/watch?v=tJrq-
ZwBehA&feature=PlayList&p=B74C1DB8C72A381E&index=4 (Volvo)
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20. 3D interactive marketing
 Miss Calypso Virtual Beauty Pageant on Planet Calypso
−Fashions were modeled by avatars walking a virtual
catwalk
−Available for purchase in Planet Calypso as a digital
good

21. Viral marketing
 Encourages users of product or service supplied
by business to encourage friends to join in as
well
http://www.ignitesocialmedia.com/viral-marketing-examples/
Haag & Cummings 2008 21

22. Reshaping product
Individualized
Digitalized
But this is only the
beginning….so much
more to come!
Customized
22

23. Today’s discussion
Background to digital marketing
Reshaping the marketing mix – 4Ps
Digital marketing implementation
Beyond marketing through digital marketing
 Guest speaker – Lisa Enckell (SSE 4M)
23

24. Reshaping the marketing mix
Jobber 2007 24

25. Stages in digital marketing planning
1. What are the drivers?
2. What is the environment?
3. What is the objective?
4. How can you create superior value?
5. How should activities be integrated?
6. What competencies are needed? Etc.
7. What should be measured?
Jobber 2007 25

26. Users create their own meanings
http://www.youtube.com/watch?v=ai-RMD39aos 30

27. There is nowhere to hide
Monitor social media sites and
react in a timely fashion
Fortune, Rey 2008 http://www.youtube.com/watch?v=t8XxcOj3Seo 31

28. The 5 Is of digital marketing
 Identification – customer specifics
 Individualism – tailored for lifetime purchases
 Interaction – dialogue to learn about customers’
needs
 Integration – of knowledge of customers
throughout company
 Integrity – develop trust through non-intrusive
marketing such as permission marketing
Will it replace the
traditional marketing mix?
Peppers & Roger 1997 32

29. Today’s discussion
Background to digital marketing
Reshaping the marketing mix – 4Ps
Digital marketing implementation
Beyond marketing through digital marketing
 Guest speaker – Lisa Enckell (SSE 4M)
33

30. Here comes the Immersive Internet
O’Driscoll 2009 34

31. “Clearly if social activity migrates to
synthetic worlds, economic activity will go
there as well.”Castranova
•USD 3 bln in virtual goods
sales in 2009, to grow to
USD 12 bln in 2012
•Swedish government
granted bank license to Mind
Bank in 2009
•USD 330,000 for virtual
space station in 2010
http://www.youtube.com/watch?v=-ahqjBeknT0 35

32. Virtual World revenues
USD 2bln
in 2009
US spending on virtual goods expected to double to
between USD 400 and 600 mln in 2009

33. Thanks and
see you in world!
Karinda Rhode
aka Robin Teigland
robin.teigland@hhs.se
www.knowledgenetworking.org
www.slideshare.net/eteigland
37

34. Sources and acknowledgements
− Allen, JP, https://usffiles.usfca.edu:443/FacStaff/jpallen/www/5thingswithcustomersv3.pdf
(Accessed 24 April 2009).
− Chaffey, D. 2009. Benchmarking to improve your digital marketing strategy,
www.davechaffey.com/blog/.
− Deloitte, 2008. 2008 Tribalization of Business Study.
− DesAutels, P. 2008. The Multinational’s Nemesis, ICIS 2008.
− Di Gangi, P. 2008, The Content Web Sites, Co-Creation of Value: Exploring Engagement
Behaviors in User-generated Content Web Sites, Colloquium at Florida State University
College of Business
− Gurteen, D. Online Information 2007: KM goes Social,
http://www.slideshare.net/dgurteen/km-goes-social-194717
− Haag & Cummings, 2008. Information Systems Essentials, McGraw-Hill/Irvine.
− Jobber, 2007. Principles & Practices of Marketing, Fifth Edition, McGraw-Hill.
− Poole, IBM: Web 2.0 goes to work, http://www.slideshare.net/jward5519/ibm-web-2-0-
goes-to-work-presentation
− Wesch, M. http://www.youtube.com/watch?v=TPAO-
lZ4_hU&feature=PlayList&p=F3C55BF4FAEC5737&playnext=1&playnext_from=PL&index
=22
 Acknowledgements
− Allen, JP, University of San Francisco
− Mahaley, S., Duke Corporate Education
− Fuller, R., Goh, S., Wasko, M., Florida State University, College of Business
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