Digital Marketing:
Strategic
Planning &
Integration
2nd edition
© Annmarie Hanlon
Chapter 1
The digital marketing
environment
Learning objectives
• Understand key issues in the digital environment
• Apply nudge theory
• Analyse opportunities for Buy Now Pay Later (BNPL)
• Evaluate the impact of the digital environment
• Create a plan to develop digital products
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The digital marketing environment
• Digital people
- Digital generations
- The digital divide
• Digital products and places
- Digital disruption
- Cryptoassets
- Big data
• Digital payments and processes
- E-money and digital wallets
- Cryprocurrencies and Blockchain
• Digital privacy
- Data protections
- Acquisition of data and targeted advertising
- The right to be forgotten
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Table 1.1 The move from traditional to
digital marketing tools
Traditional Digital Why the change?
Newspaper and Online adverts; social Newspaper and magazine sales have declined and
magazine adverts media, paid search it’s easier to target people online
Door-to-door sales Email Door-to-door is expensive and we can now
people personalise offers to existing customers via email
Company Websites Printing brochures is expensive, so is creating
brochures websites, but they are agile and easier to change as
needed
Traditional PR Online PR, blogs With the decline in newspaper and magazine sales,
the number of staff has declined too; online PR
makes the process easier
Directories like the Search engine The default is to search online and voice search is
Yellow Pages marketing growing, so directories have become smaller and are
rarely used
Community groups Social networks We live in a more mobile world where people move
from hometowns to find work, so traditional
community groups have declined, but social media
networks increased
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Digital people: Digital generations
• Baby Boomers: mid-1946 to mid-1964
• Generation X: mid-1960s to the late 1970s/early 1980s
• Digital Immigrants: before 1980
• Digital Natives: after 1980
• Net Generation: between 1982 and 1991
• Millennials: in or after 1982
• Google Generation: after 1993
• Generation Y: between 1981 and 1999
• Generation C: after 1990
• Gen Z: mid 1990s to early 2010s
• Generation Alpha: early 2010s – mid 2020s
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Digital products and places
• Audio-visual: TV shows, movies, online videos (e.g. YouTube, Twitch,
TikTok)
• Business or educational: Computer software (e.g. Microsoft, Google)
• Entertainment: Video games (e.g. Xbox, PlayStation, Amazon, Google)
• Recreational: Sports, cooking or lifestyle apps (e.g. Any app store)
• Sound: Recordings, audio books, podcasts, musical compositions,
ringtones (e.g. Spotify, Apple, SoundCloud, Clubhouse)
• Theatrical: Dramas, plays, musicals (e.g. Netflix, Hulu)
• Visual: Paintings, posters, advertisements (e.g. On social media sites or
via specialist retailers)
• Written: Lectures, articles, ebooks (e.g. Your university’s online learning
environment such as Blackboard, Brightspace, Canvas, Moodle)
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BNPL companies
• Afterpay
• Klarna
• Laybuy
• Payright
• Zip Money
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Table 1.2: Examples of sectors
experiencing disruption
Sector Example of disruptive service Traditional businesses in this
sector
Accommodation Airbnb Hotels
Car rental Zipcar Car rental companies
Clothing swap Vinted Swap with friends
General services Taskrabbit Local people
Personal transport Uber Regular taxi companies
Ride-sharing Via Car pooling with colleagues
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Table 1.3 Examples of weak
behaviour based on abuse of data
Weak behaviour What this means Examples PESTLE Factors
Barriers to switching Making it less attractive or difficult Difficulty in switching banks or Economic
to switch providers mobile phone providers
Financial penalties Only benefiting consumers using Special offers for clients wearing Economic,
the products and penalising those fitness devices Technological
that don’t
Privacy issues Collecting personal data and Fitness providers collecting health Social
selling online data and potentially sharing with
insurance companies
Favouritism and Micro-segmentation based on One gender charged more than Social
discrimination shared customer behaviour another for the same products
Unfairness Discriminating against certain Charging higher prices to Mac Social,
user types users Technological
Confusing Only providing complex pricing Utilities providers (e.g. electricity, Social
customers models water) using pricing models
based on units that are difficult to
understand
Information misuse Abusing the data held about the Companies selling data to Legal
customer influence elections
Dishonesty Cross-selling potentially Promoting plastic surgery to Legal
unwanted or unneeded products young girls
based on behaviour
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Application of blockchain data
• Medical records: Every specialist, every appointment, diagnosis,
treatment and prescription history could be viewed in one place.
• Education and training data: All results, certificates, accreditations,
memberships and awards are in one place.
• Property records: A property passport could be established that lists
all safety checks, mortgages attached to the property, equipment
installed (and removed), planning permissions and ownership
• Food safety: French supermarket Carrefour uses blockchain to track
foodstuffs including milk and fruit from the farmer to their stores. The
farmers can add when the goods were harvested, picked or packed,
the distributor can add collection times and the supermarket can
record when the goods were placed on the shelves
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Nudge theory
• Proposed by Professors Thaler and Sunstein in 2008
• Gently encourage or nudge someone to do something,
rather than force options
• Often used in government marketing campaigns where
behaviour change is needed
• E.g. for health purposes, such as diabetes management,
stopping smoking or losing weight.
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Figure 1.1 The blended data
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Summary
Chapter 1 has explored
• The evolution of digital marketing and why it matters to
marketers
• The move from traditional to digital marketing
• Types of digital products and ethical issues around digital
theft
• Different types of digital payments
• Big data and issues concerning digital privacy
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References
• Hanlon, A. (2022). Digital Marketing: Strategic Planning &
Integration (2nd ed.). SAGE Publications Ltd
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Reading for next week
• Chapter 2: Hanlon, A. (2022). Digital Marketing: Strategic
Planning & Integration (2nd ed.). SAGE Publications Ltd
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Next Week:
The Digital Consumer
Chapter 2
