Final exam Flashcards
Marketing
is ‘a process of meeting customer needs profitably’
Digital Marketing
is ‘a process in which organisations and existing or potential customers use the internet to create value and products as well as exchange them’
SOSTAC model
Marketing Strategy & Planning - SOSTAC model
Situation analysis: 5C
Objectives: SMART business (sales / profit) & marketing / customer goals
Strategy
Tactics: Marketing Mix – 4P
Action Plan
Controls: Key metrics & governance process -how will you track and measure success?
5C
Context, Customer, Competitor, Company & Collaborator analysis
Marketing Mix – 4Ps
Product / Price / Place / Promotion
Key metrics & governance process
how will you track and measure success?
6M Model of Marketing Communications
Just refer to SOSTAC and/or 6M models!
The Iterative method – Key in Digital Marketing!
Lots of (Digital) marketing models/frameworks to learn – how to know which ones to use
- Some models are more important than others – start with the Strategy and everything else must fall under that
- There are no ‘right’ or ‘wrong’ models to use – it’s all about the context, content and application rather than the structure
- Think of them as guidelines to structure your thinking, analysis, common sense and decision making, helping you not to forget anything that’s important to consider
- Bonus: they also help to convince others that you’re not just doing random things!
Defining a Digital Marketing Campaign
- Objective based
- Multiparted (traffic, content, landing pages, CRM, measurement etc.)
- Seamless and subtle (step by step)
- In flux (constantly changing / optimized in flight)
Establishing Marketing Objectives
Acquisition
Monetization
Engagement
Acquisition
- Increasing problem and solution (or brand) awareness
- Acquiring new leads and customers
- Activating leads and customers
Monetization
- Monetizing new leads and customers
Engagement
- Onboarding new leads and customers
- Building community and advocacy
SMART objectives
▪ S pecific
▪ M easurable
▪ A chievable
▪ R elevant
▪ T ime-bound
Possible advertising objectives
Market: Segmentation and Targeting
Digital targeting: manually vs AI-optimized
How does advertising really work?
Digital creative best practices – Meta Brilliant Basics
Media: digital marketing channel selection criteria
- Ability to find and target desired users
- Potential volume (in the mid to long term) / diminishing returns as you scale
- Cost (including setup, time, resources/skills)
- Ability to win (reach desired objective / ROAS) and optimize
+ Payback period
Money: methods for setting a marketing budget
Last year’s budget
Objective-task method
Percentage of sales (e.g. 10%)
Competitor-based
Affordability
Last year’s budget:
I will spend X% of what I spent on marketing last year
Objective-task method:
How much do I need to spend to reach my goal of 100 sales, based on historic results?
Percentage of sales (e.g. 10%):
If I have 100,000 euros worth of sales per month, I’ll invest 10,000 eur in marketing
Competitor-based:
If my competitor is spending 100,000 euros on marketing I’ll spend just as much or more
Affordability:
I only have 100 euros available to spend on marketing after all other expenses
Key digital marketing campaign metrics
- Spend
- Impressions
- Reach (unique no. of users)
- Frequency
- Viewability and/or Attention
- CPM
- Clicks / unique clicks & CPC
- CTR
- Conversions / sales (in units and value)
- CPA
- ROAS
- Website actions / qualified leads (e.g. add to cart, model comparison) for retargeting or longer sales cycles
- Brand lift (Ad recall, brand/product awareness, message association, action intent etc.)
CPM:
Cost per Mille (Cost / Impressions * 1,000)
Clicks / unique clicks & CPC:
Cost per Click (Cost / Clicks)
CTR:
Click-through rate (Clicks / Impressions)
CPA:
Cost per Acquisition (Cost / Conversions)
ROAS:
Return on Advertising Spend (generated value / marketing spend)
What do we mean by incrementality?
Gold standards for measuring incrementality
▪ A/B (or multi-variate) testing
▪ Econometric / regression known as marketing mix modelling
▪ Geo-testing (comparing similar / matched regions)
▪ Less accurate but often the most popular:
Trend extrapolation or before vs after comparison - not such a big problem if your baseline is 0 or very very stable!
A/B or multi-variate testing / experimentation
Marketing mix regression modeling
Marketing mix regression modeling theory
▪ Creating a regression model/formula to assess how much each internal and external influencing factor (marketing, pricing, competitor activity, seasonality, weather, etc.) affects sales
▪ Using past data (typically 2-3 years) to establish relationships between your independent (influencing factors) and dependent (sales) variables
▪ Measures ‘baseline’ sales plus the incremental impact on sales (positive or negative) from each other factor
▪ Typically conducted quarterly or annually, and can go down to channel, product, and even campaign level
Why not just use Marketing Mix Modelling for everything?
▪ Not fast/frequent enough
▪ Not granular enough – can pick up significant campaigns but not smaller ads, keywords, placements, etc.
▪ It relies on longer historical periods which may not be an accurate reflection of the present/future, especially with fundamental shifts in consumer and business behavior, for example with Covid-19
Multi-modal measurement toolkit
CPM – What might be driving the high/low price of impressions?
a. Optimization goal: optimizing for Reach/Impressions will typically deliver lower CPM than optimizing for Traffic / Link Clicks.
b. Target audience: broader/larger audiences are typically cheaper. Some countries are more expensive than others - the more advertisers are there bidding for the same target audience, the higher the price you have to pay to still win auctions.
c. Format & placement: Videos might be more expensive than static images, and their placement can have different prices too, e.g. IG Reels vs FB News Feed
CTR – what is driving the high/low click-through rate?
a. Target audience: are you targeting the right audience for your message?
b. Product/offer: is it attractive enough for the chosen audience?
c. Message: how relevant, effective, clear & concise is the message?
d. Creative: how attractive, attention-grabbing and action-inducing is it?
e. Call to action: is there a clear call to action?
f. Timing: is it the right time for your audience to act?
Conversion rate – what is driving the high/low conversion rate?
a. Target audience: are you targeting the right audience who are likely to buy and not just click on the ad at this point?
b. Landing page: is your website experience optimized to convert your target audience? Is it aligned with your ad message and offer? Is it the right sales funnel stage for them?
c. Product/offer: is it attractive enough for the chosen audience?
a. Lagged conversions: how much time has passed since the ads were served?
Could it be that more sales will happen in the near future?
Customer Journey
2 most common landing page categories
Key elements of a good landing page:
A gated offer
Headline/subheadline
Bullets
Product image
Proof
Lead form
A gated offer:
a small “chunk” of value that solves a specific problem for a specific market that is offered in exchange for their contact information
Headline/subheadline:
Text at the top of the page that compels the site visitor to read the bullets and consider taking the gated offer on the page
Bullets:
Strong statements that outline the benefits of the gated offer.
Product image:
If you can show a visual representation of the gated offer, do so.
Proof:
Include trust icons such as logos of associations you are a member of, reputable brands you are associated with, or testimonials from satisfied customers.
Lead form:
The form is the mechanism that actually collects the contact information.
Key elements of a good sales letter page:
- Long-form text or video
- Information-heavy
- Demonstrates value
- Helps to overcome any last-minute objections
Guide for crafting a sales letter
- Craft the headline
- Write the sub-headline
- Write the opening
- Show ease of use
- Forecast the future
- Establish credibility
- Write bullets that sell
- Show proof
- Make the offer clear
- Sweeten the deal
- Communicate urgency
- Reverse risk
- Make the call to action
Key elements of a good product detail page:
- Product name: specific and descriptive
- Call to action (CTA): clear and easy to find
- Price
- Product images/video: as many as possible
- Product description
- Size and/or quantity option
- Product reviews
- Other: wishlist, social media buttons, shipping info, usage/tutorial/endorsement videos upsells/cross-sells
Top 10 Website Analytics questions
- Which channels generate the most traffic to the website? What are the objectives and conversion rate?
What is the ratio between paid and unpaid traffic? - What keywords lead to people visiting the website? What is their conversion rate?
- On which days and at what time is the website visited most often? When is conversion highest?
- What browsers and devices are used most often and is there a difference in the number of conversions
between these browsers? - What are the top landing pages in terms of visitor counts and conversions? What does the clicking
behavior look like for the most important segments? - What are the most visited pages on the website? From which pages people leave the website the most?
- How do users navigate the site?
- What keywords do people use on the website? And how successful are those keywords?
- What does the funnel look like and where in this funnel do most exits occur?
- Which channels are responsible for the final conversion? Which channels are responsible for
orientation visits (conversion attribution)?
Key website/e-commerce / user experience metrics
The ABC model
Leveraging the 5 Google Analytics Report Suites:
Real-Time, Audience, Acquisition, Behavior, Conversions
Understanding where traffic is coming from:
using Urchin Traking Module (UTM) parameters in your URLs
Segmenting your audience:
based on channel, traffic source, completed actions and conversions
Analyzing your audience:
demographics & psychographics
Putting it all together:
your ideal target user / customer avatar
Understanding Split Testing:
A/B and Multivariate tests
Testing Tech:
Visual Website Optimizer, Unbounce, Optimizely
Split testing guidelines:
what not to test
Selecting page elements to optimize:
qualitative data & tools
Getting ready to test:
hypothesis, goal/metrics, timeline
Preparing to launch:
checklist
Calling the test:
when to stop running it
10 Essential Tools for Digital Marketing Success
- Building a Website: Content Management Systems (CMS)
- Hosting a Website
- Email Marketing software
- Customer Relationship Management (CRM) software
- Payment Solutions
- Landing Page software
- Sourcing and Editing Images
- Managing Social Media
- Measuring your performance: Data & Analytics
- Optimizing your Website
5C
Context, Customer, Competitor, Company & Collaborator analysis
4P
Product / Price / Place / Promotion
Strategy:
Segmentation, Targeting & Positioning
Objectives:
SMART business (sales / profit) & marketing / customer goals
Strategy
CPM
CPC
Cost per click
CTR
Click-through rate
CPA
cost per acquisition
ROAS
Return on ads spend
A/B testing
There are five requirements for good business objectives, which are summarized as the SMART principle. Which of the following details could relate to the S part of the SMART criteria?
A. The company aims to sell 10,000 products
B. The target must be achieved within one ear
C. The goal motivates the staff to work hard
D. Management believes that the objective is significant
A
What is the best framework for marketing communications briefs?
A SOSTAC
B. 5C
С. 6M
D. 4P
C
3) What is the final key step in any marketing strategy framework?
A. Objectives and KPIs
B. Measurement, Control or Evaluation
C. Media channels and budgets
D. Test and Learn
B
4) What is one of the key criteria for digital marketing channel selection?
A. Channel novelty
B. Channel popularity
C. Ease of platform/channel use
D. Ability to target desired users
D
airBaltic spent € 20,000 on Facebook ads last month. Ultimately, the campaign led to 100,000 visitors.
Of these, 400 visitors booked a flight with an average order value of € 400. Calculate CPA
A. € 0.20
B. €4
C. € 50
D. € 200
C (CPA = Cost / Acquisitions = 20,000 / 400 = 50)
6) What is one of the key flaws of using A/B testing in digital marketing?
A. The results cannot easily be aggregated to total sales
B. The results do not estimate incremental sales
C. The results are often not granular enough
D. The results do not include non-digital channels
A
7) A local bicycle shop in Vilnius has paid € 8,000 for a Display banner campaign in the weeks before
Valentine’s Day, advertising their online flower delivery service. The banner generated 200,000 impressions, and 16,000 people click on the banner. Calculate CPM.
A €0.04
B. € 0.50
C. € 12.50
D. € 40.00
D (CPM = Cost / Impressions * 1,000 = 8,000 / 200,000 * 1,000 = 40)
8) A TikTok campaign by Kaunas Zoo has 300,000 impressions in one month; 6,000 people click on the ads, and of these 1,500 then purchase tickets with an average order value of €20. Calculate CTR
A. 0.02%
B. 0.50%
C. 2%
D. 25%
C (CTR = Clicks / Impressions = 6,000 / 300,000 = 0.02 = 2 %)
9) What is the best definition of the conversion rate?
A. the percentage of visitors who place something in the shopping cart but do not pay
B. the percentage of visitors who achieve a certain goal
C. the percentage of visitors who are satisfied with the website
D. the ratio that indicates what proportion of the target audience have seen your digital ad
B
10) A local car dealership in Vilnius has spent €40,000 on a Facebook ads campaign which generated 150,000 clicks and 500 booked test drives, of which 10 resulted in an actual car sale with an average order value of €32,000. The average profit margin for these cars is 12.5%. Calculate ROAS.
A. 0
B. 1
C. 2
D. 4
A (ROAS = (Incremental value – Cost) / Cost = (10 * 32,000 * 0.125 – 40,000) / 40,000 = 0
SMART
specific, measurable, achievable, relevant, and time-bound
