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To learn more please visit us at www.com/uk Sixth Edition Digital Marketing Dave Chaffey Fiona Ellis-Chadwick Pearson Education Limited Edinburgh Gate Harlow CM20 2JE United Kingdom Tel: +44 (0)1279 623623 Web: www.com/uk First published 2000 (print) Second edition published 2003 (print) Third edition published 2006 (print) Fourth edition published 2009 (print) Fifth edition published 2012 (print and electronic) Sixth edition published 2016 (print and electronic) © Pearson Education Limited 2000, 2003, 2006, 2009 (print) © Pearson Education Limited 2012, 2016 (print and electronic) The rights of Dave Chaffey and Fiona Ellis-Chadwick to be identified as authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. The print publication is protected by copyright. Prior to any prohibited reproduction, storage in a retrieval system, distribution or transmission in any form or by any means, electronic, mechanical, recording or otherwise, permission should be obtained from the publisher or, where applicable, a licence permitting restricted copying in the United Kingdom should be obtained from the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS. The ePublication is protected by copyright and must not be copied, reproduced, transferred, distributed, leased, licensed or publicly performed or used in any way except as specifically permitted in writing by the publishers, as allowed under the terms and conditions under which it was purchased, or as strictly permitted by applicable copyright law.
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ISBN: 978-1-292-07761-1 (print) 978-1-292-07764-2 (PDF) 978-1-292-07762-8 (eText) 978-1-292-12564-0 (ePub) British Library Cataloguing-in-Publication Data A catalogue record for the print edition is available from the British Library Library of Congress Cataloguing-in-Publication Data A catalog record for the print edition is available from the Library of Congress 10 9 8 7 6 5 4 3 2 1 19 18 17 16 15 Cover image © Getty Images Print edition typeset in 10/12 pts and Sabon MT Pro by 76 Print edition printed in Slovakia by Neografia NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT EDITION Brief contents Preface xiii About the authors xxiv Acknowledgements xxv Part 1 Digital marketing fundamentals 2 1 Introducing digital marketing 4 2 Online marketplace analysis: micro-environment 54 3 The online macro-environment 118 Part 2 Digital marketing strategy development 174 4 Digital marketing strategy 176 5 The impact of digital media and technology on the marketing mix 248 6 Relationship marketing using digital platforms 298 Part 3 Digital marketing: implementation and practice 352 7 Delivering the online customer experience 354 8 Campaign planning for digital media 418 9 Marketing communications using digital media channels 476 10 Evaluation and improvement of digital channel performance 548 11 Business-to-consumer digital marketing practice 592 12 Business-to-business digital marketing practice 622 Glossary 649 Index 679 This page intentionally left blank Contents Preface xiii Summary 49 About the authors xxiv Exercises 49 Acknowledgements xxv Self-assessment exercises 49 Essay and discussion questions 50 Examination questions 50 Part 1 Digital marketing References 50 fundamentals 2 Weblinks 52 1 Introducing digital marketing 4 Learning objectives / Questions for marketers / 2 Online marketplace analysis: Links to other chapters 4 micro-environment 54 Introduction – how have digital technologies Learning objectives / Questions for marketers / transformed marketing? 6 Links to other chapters 54 Digital marketing in practice Introduction 56 The Smart Insights interview: Nick Dutch, Situation analysis for digital marketing 56 Head of Digital at Domino’s Pizza 9 Digital marketing in practice Definitions – what are digital marketing and The Smart Insights interview: Michael Welch of multichannel marketing? 11 Blackcircles.com 57 Paid, owned and earned media 11 The digital marketing environment 59 The growing range of digital marketing platforms 12 Understanding customer journeys 61 Introduction to digital marketing strategy 16 Customer analysis 68 Key features of digital marketing strategy 16 Demand analysis and implications for Applications of digital marketing 16 marketing planning 69 Benefits of digital marketing 17 Implications for marketing planning: Alternative digital business models 20 conversion models 69 What is the difference between e-commerce Consumer choice and digital influence 72 and e-business? 22 Consumer transactions 74 Different forms of online presence 24 Online consumer behaviour and implications for Challenges in developing and managing digital marketing marketing 76 strategy 25 Customer characteristics 76 A strategic framework for developing a digital marketing Consumer personas 79 strategy 27 The buying process 79 Introduction to digital marketing communications 29 Competitors 88 The relationship between digital and traditional The shape and nature of online competitive markets 88 communications 30 Competitor analysis and benchmarking 91 Using digital media channels to support Suppliers 93 business objectives 31 Online marketing intermediaries 94 The key types of digital media channels 32 Portals 96 Different types of social media marketing tools 34 New channel structures 96 Benefits of digital media 37 Business models for e-commerce 99 Key challenges of digital communications 43 Revenue models 103 Key communications concepts for digital marketing 43 Case study 2 Case study 1 Boo hoo – learning from the largest European eBay thrives in the global marketplace 46 dot-com failure 108 viii Contents Summary 111 3 Brand and trademark protection 159 Exercises 112 4 Intellectual property rights 161 Self-assessment exercises 112 5 Contract law 162 Essay and discussion questions 112 6 Online advertising law 163 Examination questions 112 Social forces 164 References 113 Social exclusion 164 Weblinks 116 Cultural forces 165 Environmental and green issues related to Internet usage 165 3 The online macro-environment 118 Case study 3 Learning objectives / Questions for marketers / Zopa launches a new lending model 167 Links to other chapters 118 Summary 169 Introduction 120 Exercises 169 Digital marketing in practice Self-assessment exercises 169 The Smart Insights interview: Fred Bassett of Essay and discussion questions 170 Blue Latitude 121 Examination questions 170 The rate of environment change 123 References 170 Technological forces 123 Weblinks 172 A short introduction to Internet technology 123 URL strategy How does the Internet work? 125 125 Part 2 Digital marketing Infrastructure components of the Internet 126 strategy development 174 Web page standards 126 Text information – HTML (Hypertext Markup Language) 127 4 Digital marketing strategy 176 Text information and data – XML (eXtensible Markup Learning objectives / Questions for marketers / Language) 127 Links to other chapters 176 Graphical images (GIF, JPEG and PNG files) 128 Introduction 178 Animated graphical information (Flash and plug-ins) 128 Digital marketing strategy as a channel marketing strategy 178 Audio and video standards 128 The scope of digital marketing strategy 179 The difference between the Internet, intranets Digital marketing in practice and extranets 129 The Smart Insights interview: Sajjad Bhojani Web application frameworks and application servers 129 of Dunelm 182 Digital security 130 The need for an integrated digital marketing strategy 184 Approaches to developing secure systems 133 How to structure a digital marketing strategy 186 Technology convergence 135 Situation analysis 190 SMS messaging and applications 135 Internal audit for digital marketing 191 Mobile apps 136 Customer research 192 QR codes 137 Resource analysis 192 Wi-Fi 137 Stage models of the digital marketing capability 193 Bluetooth wireless applications 138 Competitor analysis 194 Emerging technologies 138 Intermediary analysis 194 Assessing the marketing value of technology innovation 139 Assessing opportunities and threats 195 Economic forces 142 Setting goals and objectives for digital marketing 196 Market growth and employment 142 The online revenue contribution 200 International market growth and emerging economies 143 Setting SMART objectives 203 Economic disruption 143 Frameworks for objective setting 205 Political forces 144 Strategy formulation for digital marketing 208 Political control and democracy 145 Decision 1: Market and product development strategies 210 Internet governance 145 Decision 2: Business and revenue models strategies 213 Taxation 145 Decision 3: Target marketing strategy 215 Tax jurisdiction 146 Decision 4: Positioning and differentiation strategy Legal forces 147 (including the marketing mix) 220 Legal activities can be considered unethical 147 Decision 5: Customer engagement and social 1 Data protection and privacy law 148 media strategy 223 2 Disability and discrimination law 159 Decision 6: Multichannel distribution strategy 225 Contents ix Decision 7: Multichannel communications strategy 228 Self-assessment exercises 293 Decision 8: Online communications mix and budget 231 Essay and discussion questions 293 Decision 9: Organisational capabilities (7S framework) Examination questions 293 and governance 232 References 294 Strategy implementation 236 Weblinks 297 Assessing different Internet projects 236 The online lifecycle management grid 238 6 Relationship marketing using Case study 4 digital platforms 298 Tesco online development strategy supports Learning objectives / Questions for marketers / global expansion 239 Links to other chapters 298 Summary 242 Introduction 300 Exercises 242 From e-CRM to social CRM 302 Self-assessment exercises 242 Structure of this chapter 303 Essay and discussion questions 243 Digital marketing in practice Examination questions 243 The Smart Insights interview: References 243 Guy Stephens of IBM 304 Weblinks 246 The challenge of customer engagement 308 Benefits of using e-CRM to support 5 The impact of digital media and customer engagement 308 technology on the marketing mix 248 Marketing applications of e-CRM 311 Learning objectives / Questions for marketers / CRM technologies and data 311 Links to other chapters 248 Customer lifecycle management 311 Introduction 250 Permission marketing 313 What is the marketing mix?
