UNIT - 3

Digital Marketing Strategy

• An organization should define the capabilities and strategic
initiatives that will support its marketing and business
objectives in order to use digital media, data, and marketing
technology to increase audience multichannel engagement
using digital devices.
• The goals of a digital marketing strategy are comparable to
those of traditional marketing strategies, which are to increase
sales by attracting and keeping customers, or to advance the
communications objectives of not-for-profit
organizations.organisations.
• In order to support marketing goals, digital strategy development
emphasizes the use of digital media, data, and technology deployed in
conjunction with traditional channels.
• Digital marketing strategy is a type of channel marketing strategy that
outlines how a business should establish channel-specific goals and create
competitive advantage while also taking into account Channels ought to
connect.
• The main objective is to use digital channels to help businesses and
organizations stand out from the crowd when speaking with the right target
audiences. There are two parts to a digital channel strategy, which some
people may mistake for a simple digital communications strategy.
• Channel marketing strategy explains how a business should
vary its offer and communications for this channel and set
specific goals for digital channels, including how they integrate
with traditional channels like the web, mobile, and social
media.
• The strategy establishes the strategic importance of digital
channels in comparison to other forms of direct customer
communication at various customer touchpoints.
• Therefore, the decisions about how to use digital channels to
support already-existing marketing strategies, how to take
advantage of their strengths and weaknesses, and how to
combine them with other channels as part ofa marketing plan
using multiple channels.
 Structure of Digital Marketing
1. Start with the right goal, which is grounded in real economic
value.
2. Define a value proposition, which is unique but, importantly,
deliverable.
3. Do things differently; create a distinctive value chain.
4. Be prepared to make trade-offs, tailoring a firm’s activities to
outperform rivals.
5. Create a fit between what the company does, where it wants to
be and the resources available.
6. Establish continuity. Planning decisions follow the distinctive
position set
• out by the original goals.
SOSTAC Model
• 1. Situation analysis means ‘where are we now?’. Planning
activities involved at this stage include performing an Internet-
specific SWOT analysis, and reviewing the different aspects of
the micro-environment including customers, competitors and
intermediaries. Situation analysis also involves review of the
macro-environment
• 2. Objectives means ‘where do we want to be?’. This can
include a vision for digital channels, and also specific numerical
objectives for the digital channels such as projections of
sales volumes and cost savings
• 3. Strategy means ‘how do we get there?’. Strategy summarises
how to achieve the objectives for the different decision points
explained in this chapter, including segmentation, targeting,
proposition development, including the elements of the
marketing mix and CRM
• 4. Tactics defines the usage of tactical digital communications
tools. This includes specific details of the marketing mix,
experience and digital communications.
• 5. Actions refers to action plans, change management and
project management skills. We refer to some of the issues of
modifications to organisational roles and structures
• 6. Control looks at the use of management information
including web analytics to assess whether strategic and tactical
objectives are achieved and how improvements can be made to
enhance results further. This is closely related to goal setting as
described in this chapter (and in and also the coverage of web
analytics and tracking
Strategy Formulation for Digital Marketing

• Finding alternative strategies, weighing their merits, and choosing the one
that fits a company's trading environment, internal resources, and goals are
all steps in the strategy formulation process capabilities. Companies must
base their digital strategies on sound reasoning and in-depth analysis and
should be realistic about what their strategies can accomplish.
• Strategies are agreed to be most effective when they support specific
business objectives (e.g. increasing the online contribution to revenue, or
increasing the number of online sales enquiries). A useful technique to help
align strategies and objectives is to present them together in a table, along
with the insight developed from situation analysis that may have informed
the strategy.
• Making the appropriate choices for the varied forms of value delivery for online
channels and the selective targeting of customer groups are the main goals of developing
a digital marketing strategy. A channel for digital marketing strategymarketing plan and
ought to:
• be based on objectives for online contribution of leads and sales for this channel;
• be consistent with the types of customers that use and can be effectively reached through
the channel;
• support the customer journey as they select and purchase products using this channel in
combination with other channels;
• define a unique, differential proposition for the channel; specify how this proposition is
communicated to persuade customers to use online services in conjunction with other
channels;
• manage the online customer lifecycle through the stages of attracting visitors to the
website, converting them to customers and retention and growth;
• be consistent with the types of customers that use and can be effectively reached through
the digital communications channels and targeted using online tactical marketing
segmentation.