Digital strategy #DS

2

implications and planning

management

SOSTAC® planning model…

1

2

3

4

5

6

situation

objectives

strategy

tactics

actioncontrol

corporate

marketing

digital

resources scheduling

Smith, 1990

5S’s

marketing mix

marketing

the macro environment

the micro environment

strategysystems

functionsresources

suppliers

other stakeholders

intermediaries

competitors

customers

political forces

social cultural forces

technological forces

economic forces

environmental forces

legal forces

environments

the internal environment

Situation analysis...

external (macro) context…

present organisations with opportunities and threats

political

economic

social

technological

environmental

legal

PESTEL analysis…

Your Notes PESTEL Factors Potential Impact Implications & Importance

About your organisation & how the factors might impact on marketingfor your organisation/SBU

PoliticalEconomicSocialTechnologicalEnvironmentalLegal

H = HighM = MediumL = LowU = Undecided

Time Frame:ShortMediumLong

Type:Opportunity orThreat

Implication:IncreasingReducingNot yet determined

Relative ImportanceH = HighM = MediumL = Low

customer analysis...

segment characteristics

decision-making process

involvement

perceived risks

awareness, perception and attitude

influence

media consumption and use

investment priorities, objectives & goals

market importance & commitment

relative strengths & weaknesses

competitors - now? 5 years on?

weaknesses making them vulnerable

changes likely in future strategies

‘7 step competitor analysis drill’

effect on industry, market & you

Davidson, 1997

Internal analysis...

strengths and weaknesses

linked to use and availability of resources…

and analysis of current digital activity…

TOWS Analysis

Strengths Weaknesses

Opportunities“Maxi-Maxi” Strategies

Strengths used to maximiseopportunities

“Mini-Maxi” Strategies

Minimise weaknesses by taking advantage of

opportunities

Threats“Maxi-Mini” Strategies

Strengths used to minimisethreats

“Mini - Mini” Strategies

Minimise weaknesses and avoid threats

Weihrich, 1982

digital objectives...

avoid solely focusing on sales, what are the key metrics

help to determine/clarify position, drive traffic, create interest, retention, engagement, interaction…

help highlight the balance of tactics needed

provide a time frame

provide a means of evaluation and measurement

SMART

the 5S’s...

sell… grow your sales

speak… dialogue, participation and engagement

serve… add value

save… costs

sizzle… take your brand online

Smith, 2017

strategy… Segmentation

…can use ‘classic’ bases and variables for B2C and B2B

…often developed further as persona’s

…persona’s

profile

personality

influencers

technology

user experience

devices

apps and software

do’s and don’ts

relationship

targeting...

three key approaches…

undifferentiated

differentiated

concentrated

positioning…

products can be positioned in the market by focusing on specific factors such as…

features, benefits or advantages

solutions presented

specific usage (occasions)

positioned against other products

class disassociation

strategy… OVP

closely tied to the brand position

the reasons why the customer will click, register, buy and share

the intrinsic benefits from the site, content, service and functionality

the customer journey…

acquisition, conversion, retention

reach, act, convert, engage

reach, engage, activate, nurture

…reach

social media, SEM, affiliates, display…

…convert/activate

web optimisation, user experience, interaction

…nurture

…social media, earned media, direct

…developing intelligent strategic objectives

Objective Substantiation Strategies to achieve goals

KPI’s

Link to stage of consumer journey and SMART

Link to audit findings and TOWS options

Link to STP, OVP, growth and positioning

What will you be measuring?

Conversion –increase averageorder value to £30 per customer

- Increase in disposable income- Increased desire for product

- Position as luxury against key competitors- Differentiation through featuresOVP – exclusivity

% of unique visitorsresponding to promotions

product

promotion

tactics…

price

place

people

process

physical evidence

implementation…

is the scheduling of digital campaign

Gantt chart or project plan

Key resources are determined

responsibilities are allocated

management processes are put in place

control and evaluation...

evaluate the success of…

different digital mix elements

different digital channels

different digital media

finally, feedback and learn

key focus on analytics here… but what are the metrics?

SOSTAC® planning model…

1

2

3

4

5

6

situation

objectives

strategy

tactics

actioncontrol

corporate

marketing

digital

resources scheduling

Smith, 1990

5S’s

marketing mix

References and reading

Armstrong, G & Kotler, P. (2008) Marketing- An Introduction. 9th ed Pearson Education: London

Chaffey, D. & Smith, P.R., (2017) Digital Marketing Excellence. Routledge: Oxon

Dibb, S., Simkin, L., Pride, W.M. & Ferrell, O.C. (2012) Marketing: Concepts and Strategies. 5th European ed. Houghton Mifflin: Abingdon

Richardson, R., James, J. & Kelley, N. (2015) Customer-Centric Marketing. KoganPage: London

Ryan, D. and Jones, C. (2014) Understanding Digital Marketing: Marketing Strategies for Engaging the Digital Generation London: Kogan Page

http://www.smartinsights.com/digital-marketing-strategy/online-business-revenue-models/dealing-with-digital-disruption/

http://www.smartinsights.com/digital-marketing-strategy/sostac-model/