Chapter 1 Flashcards
Strategy
Indicates the most advantageous direction for an organizatin to take over a defined period of time. It also outlines which tactics and means should be used to execute this direction. Originating as a military term, strategy is about using your strengths, as well as the context in which you are operating, to your advantage.
Cluetrain Manifesto
A set of 95 theses organised as a call to action (CTA) for businesses operating within a newly connected marketplace, published in 1999. While some of the book’s claims have failed to materialise, it was
an early source of guidelines for social media and obtained a cult-like following.
Market share
In strategic management and marketing, market share is the percentage or proportion of the total available market or market segment that is being serviced by a company.
Metric
A unit of measurement.
Pay per click
PPC
Pay per click is advertising where the advertiser pays only for each click on their advert, not for the opportunity for it to be seen or displayed.
Return on investment
ROI
The ratio of cost to profit
Search engine optimisation
SEO
SEO is the practice that aims to improve a website’s ranking for specific keywords in the search engines.
Short Message Service (SMS)
Electronic messages sent on a cellular network
Strategy
A set of ideas that outline how a product or brand will be positioned and achieve its objectives. This guides decisions on how to create, distribute, promote and price the product or service.
Tactic
A specific action or method that contributes to achieving a goal.
What is marketing?
The creation and satisfaction of demand for your product, service or ideas. If all goes well, this demand should translate into sales and, ultimately, revenue.
The value that a marketer should seek to create should
be…
…equal to or even greater than the cost of the product to the consumer
What is digital marketing?
There is, in fact, no difference between ‘traditional’ marketing and digital marketing. They are one and the same, apart from digital being specific to a medium.
Digital marketing is powerful in what two fundamental ways?
First, the audience can be segmented very precisely, even down to factors like current location and recent
brand interactions, which means that messages can (and must) be personalised and tailored specially for them.
Second, the digital sphere is almost completely measurable. Every minute and every click by a customer can be accounted for. In digital you can see exactly how various campaigns are performing, which channels bring the most benefit, and where your efforts are best focused. Cumulatively, access to data that measures the whole customer experience should lead to data driven decision making.
What can be an example of an exchange in value?
A brand on the Internet can gain value in the form of time, attention and advocacy from the consumer. For the user value can be added in the form of entertainment,
education and utility.
What does a business need to establish and why?
A brand because it justifies why the business
matters, what the business’ purpose is and what value the business adds to people’s lives.
How do you measure the value of a brand?
In terms of its brand equity i.e. how aware are
people of the brand? Does it hold positive associations and perceived value? How loyal are people to the brand?
When you have the answers to these questions, you can formulate a marketing strategy to address the challenge or objective you’ve discovered.
How do you measure the value of a brand?
In terms of its brand equity i.e. how aware are
people of the brand? Does it hold positive associations and perceived value? How loyal are people to the brand?
When you have the answers to these questions, you can formulate a marketing strategy to address the challenge or objective you’ve discovered.
What are the factors that affect the business?
Conduct a situational analysis that looks at the following four pillars:
- The environment
- The business
- The customers
- The competitors
What are the factors that affect the business?
Conduct a situational analysis that looks at the following four pillars:
- The environment
- The business
- The customers
- The competitors.
The environment
The overall context or ‘outside world’ in which the business functions.
An analysis of the business and brand environment will typically consider political, economic, social, technological, legal and environmental (PESTLE) influences to identify a clear set of considerations or issues pertinent to the marketing strategy.
PESTLE
political, economic, social, technological, legal and environmental influences in the environment
one of the factors that affect the business in a situational analysis
The business
What does it stand for? What does it mean? What associations, ideas, emotions and benefits do people associate with it? What makes it unique?
Brand Template
Brand Idea - Essence of your brand
Brand Product/Persona - The manifestation of the brand
in human characteristics
Emotional Benefits - How does your product service
Functional Benefits - Summarises the tangible benefits to the consumer
Features & Attributes - Tangible assets of your product or services focus on most desirable/differentiation
The customers
Need to conduct market research.
The customer journey
Awareness > Consider > Evaluate > Buy
Cyclical
The goal is to reach customers with the right marketing message at the right stage of their journey. For example, you may want to use aspirational messages for someone
in the exploration phase, but focus on more direct features and benefits (such as a lower price) when they’re almost ready to buy.
The competitors
Not just those who are aiming to earn your
customers’ money; they are also those who are capturing your customers’ attention.
When considering competition it’s also worthwhile looking at potential replacements for your product.
To stay ahead, you should be looking at potential
disruptors of your industry as well as the existing players.
T/F
A marketing strategy should be constantly iterating and evolving.
True
Since the Internet allows for near-instantaneous feedback and data gathering, marketers should
constantly be optimising and improving their online marketing efforts.
User-centric thinking
Placing the user at the core of all decisions.
What should be built into any strategy?
A testing framework and the ability to remain flexible and dynamic in a medium that shifts and changes as user behaviours do.
Porter’s Five Forces Analysis
A business tool that helps determine the competitive intensity and attractiveness of a market. *** - Competetive rivalry within Industry ^ Power of suppliers ^ Power of customers ^ Threat of new entrants ^ Threat of substitute products
SWOT Analysis
Strengths, Weaknesses, Opportunities, Threats
An ideal way to understand your business and your market. Part of a situational analysis and identifies the key issues that direct the marketing strategy. Be mindful of the fact that weaknesses can
be opportunities and strengths threats, especially in the world of digital disruption.
What should you always have in mind when conducting a SWOT analysis?
A purpose
What else should a strategy cover?
The questions of who you are and who you are not. It
should also include what you are offering and to whom, as well as why and how you are doing so.
What is the first step in crafting a successful strategy?
Examine the context of the organisation and the various stakeholders.
What is the context in which you are operating (PESTLE factors) and how is this likely to change in the future?
Who are you, why does your brand matter and what makes your brand useful and valuable?
Who are your customers, and what needs, wants and desires do they have?
Who are your competitors? These may extend beyond organisations that compete with you on the basis of price and product and could also be competition in the form of abstracts such as time and mindshare. Thorough
market research will reveal the answers to these questions.
What is the second step in crafting a successful strategy?
An examination of your value proposition or promise: in other words, what unique value your organisation can add to that market.
What extras, beyond the basic product or service, do you offer to customers? The definition of what is ‘valuable’ depends largely on the target audience, so it is crucial to research your users and gather insights into what they want and need.
What is the third step in crafting a successful strategy?
Setting your digital marketing goals.
What are the four key aspects to consider when setting digital marketing goals?
Objectives
Tactics
Key Performance Indicators (KPIs)
Targets.
Objectives
What are you trying to achieve?
How will you know if you are successful?
What do we want to achieve with this marketing
campaign?
Objectives need to be SMART:
- Specific – the objective must be clear and detailed, rather than vague and general.
- Measurable – the objective must be measurable so that you can gauge whether you are attaining the desired outcome.
- Attainable – the objective must be something that is possible for your brand to achieve, based on available resources.
- Realistic – the objective must also be sensible and based on data and trends; don’t exaggerate or overestimate what can be achieved.
- Time-bound – finally, the objective must be linked to a specific timeframe.
Goals
The goal of a website or campaign in web analytics refers to an action that a user takes on a website or a type of user behaviour. A completed goal is called a conversion.
Goals are derived from objectives and answer the question, “What do we need users to do in order to achieve our objective?”
Tactics
The specific tools or approaches you will use to meet your objectives. Tactics may change (and often should), but the objective should remain your focus.
Key Performance Indicators (KPIs)
Metrics that are used to indicate whether tactics are performing well and meeting your objectives.
Answer the question, “What data do we need to look at to see if goals are being completed?”
Targets
The specific values that are set for your KPIs to reach within a specific time period.
SEO Tactic
This is the practice of optimising a website to rank higher on the search engine results pages for relevant search items. SEO involves creating relevant, fresh and user-friendly content that search engines index and serve when people enter a search term that is relevant to your product or service.
SEO Outcome
Customer retention and acquisition
SEO has a key role to play in acquisition, as it ensures your organisation’s offering will appear in the search results, allowing you to reach potential customers. A site that is optimised for search engines is also a site that is clear, relevant and well designed. These elements ensure a great user experience, meaning that SEO also plays a role in retention.
Search Advertising Tactic
In pay-per click or search advertising, the advertiser pays only when someone clicks on their ad. The ads appear on search engine results pages.
Search Advertising Outcome
Sales, customer retention and acquisition
The beauty of search advertising is that it is keyword based. This means an ad will come up in response to the search terms entered by the consumer. It therefore plays a role in sales, acquisition and retention. It allows the advertiser to reach people already in the buying cycle or are expressing interest in what they have to offer
Online Advertising Tactic
Online advertising covers advertising in all areas of the Internet – ads in emails, ads on social networks and mobile devices, and display ads on normal
websites.
Online Advertising Outcome
Branding and acquisition
The main objective of online advertising is to raise brand
awareness online. It can be more interactive and therefore less disruptive than traditional or static online advertising, as users can choose to engage with the ad or not. Online advertising can be targeted to physical locations, subject areas, past user behaviours, and much more.
Affiliate Marketing Tactic
Affiliate marketing is a system of reward whereby referrers are given a ‘finder’s fee’ for every referral they give.
Affiliate Marketing Outcome
Sales and branding
Online affiliate marketing is widely used to promote
eCommerce websites, with the referrers being rewarded for every visitor, subscriber or customer provided through their efforts. It is a useful tactic for brand building and acquisition.
Video Marketing Tactic
Video marketing involves creating video content. This can be wither outright video advertising, or can be valuable, useful, content marketing.
Video Marketing Outcome
Branding, customer retention and value creation
Since it is so interactive and engaging, video marketing is
excellent for capturing and retaining customer attention.
Done correctly, it provides tangible value – in the form of
information, entertainment or inspiration – and boosts a
brand’s image in the eyes of the public.
Social Media Tactic
Social media is media in the form of text, visuals and audio, that can be shared online. It has changed the face
of marketing by allowing collaboration and connection in a way that no other channel has been able to offer.
Social Media Outcome
Branding, value creation and participation
From a strategic perspective, social media, is useful for
brand building, raising awareness of the brand and its story, and encouraging the customer to become involved with the brand. The shareable and accessible nature of social media platforms allows brands to communicate and engage directly with their customers. Social media also offers brands a way to interact with their customers, instead of just broadcasting to them.
Email Marketing Tactic
Email marketing is a form of direct marketing that delivers commercial and content-based messages to an
audience. It is extremely cost effective, highly targeted, customisable on a mass scale and completely measurable – all of which make it one of the most powerful digital marketing tactics.
Email Marketing Outcome
Customer retention and value creation
Email marketing is a tool for building relationships with
potential and existing customers through valuable content and promotional messages. It should maximise the retention and value of these customers, ultimately leading to greater profitability for the organisation a whole. A targeted, segmented email database means that a brand can direct messages at certain sectors of their customer base in order to achieve the best result.
What should you do once the objectives and tactics have been set?
Cross-check and re-evaluate them against the needs and resources of your organisation to make sure your strategy is on the right track and no opportunities are being overlooked.
The Learning Loop
The knowledge gained from reviewing the performance
of your tactics, which can then be fed back into the strategy.
