Emarketing Excellence Now in its fourth edition, the hugely successful Emarketing Excellence is fully updated, keeping you in line with the changes in this dynamic and exciting field and helping you create effective and up-to-date customer-centric e-marketing plans. A practical guide to creating and executing e-marketing plans, it combines established approaches to marketing planning with the creative use of new e-models and e-tools. This new edition seamlessly integrates social media technology like Facebook check-in, social net- working, tablets and mobile applications into the mix, demonstrating how these new ways to reach customers can be integrated into your marketing plans. It also includes brand new sections on online marketing legislation and QR codes, plus an expanded section on email marketing, the most commonly used e-marketing tool. Offering a highly structured and accessible guide to a critical and far-reaching subject, Emarketing Excellence (fourth edition) provides a vital reference point for all students of business or marketing, and marketers and e-marketers involved in marketing strategy and imple- mentation, who want a thorough yet practical grounding in e-marketing. Dave Chaffey is CEO of Smart Insights (www.smartinsights.com), an online publisher and analytics company providing advice and alerts on best practice and industry developments for digital marketers and e-commerce managers. He also works as an inde- pendent Internet marketing trainer and consultant for Marketing Insights Limited, and has consulted on digital marketing and e-commerce strategy for a range of companies. Dave is a visiting lecturer on e-commerce courses at various universities including Birmingham, Cranfield, Derby, Manchester Metropolitan and Warwick. He is also a tutor on the IDM Diploma in Digital Marketing course, for which he is Senior Examiner. PR Smith (www.prsmith.org) is a best-selling marketing author, international speaker and adviser. His five other books are renowned for their ‘edutainment’ style. His SOSTAC® Planning System is used by organizations around the world (and in the top three business models of all time – as voted by members of the Chartered Institute of Marketing). Paul advises and trains organizations that embrace change and creativity in Asia, Africa and Europe. He is also the author and founder of the Great Sportsmanship Programme (www.greatsportsmanship.org), which uses social media to mobilize communities into sportsmanship. Emarketing Excellence Planning and optimizing your digital marketing Fourth edition Dave Chaffey and PR Smith 1st edition published 2001 2nd 2005 3rd 2008 by Butterworth Heinemann/ Elsevier This edition published 2013 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN Simultaneously published in the USA and Canada by Routledge 711 Third Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2013 Dave Chaffey and PR Smith The right of Dave Chaffey and PR Smith to be identified as the authors of this work has been asserted by them in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data Chaffey, Dave, 1963– Emarketing excellence: planning and optimizing your digital marketing / Dave Chaffey and PR Smith. – 4th ed. p. cm. Includes bibliographical references and index. 1. Internet marketing. I. Smith, P. R. (Paul Russell), 1957– II. Title. HF5415.1265.S615 2012 658.8’72–dc23 2012018941 ISBN: 978-0-415-53335-5 (hbk) ISBN: 978-0-415-53337-9 (pbk) ISBN: 978-0-203-08281-2 (ebk) Typeset in Iowan Old Style by Keystroke, Station Road, Codsall, Wolverhampton Contents List of figures ix List of tables xiii Preface xv Acknowledgements xxiii Chapter 1 Introduction to e-marketing 1 1.1 Introduction 3 1.2 Situation – the connected world 4 1.3 Situation – B2C, B2B, C2B and C2C 9 1.4 Situation – e-definitions 14 1.5 Situation – sloppy e-marketing 20 1.6 Objectives 22 1.7 Objective – sell – using the Internet as a sales tool 25 1.8 Objective – serve – using the Internet as a customer-service tool 29 1.9 Objective – speak – using the Internet as a communications tool 33 1.10 Objective – save – using the Internet for cost reduction 38 1.11 Objective – sizzle – using the Internet as a brand-building tool 40 1.12 Introduction to e-strategy objectives 41 1.13 Tactics, action and control 43 Chapter 2 Remix 49 2.1 Introduction to remix 51 2.2 What is the marketing mix? 52 2.3 Beyond the mix 57 2.4 The mix is morphing 58 2.5 Product 63 2.6 Price 70 2.7 Place 75 2.8 Promotion 80 2.9 People 86 vi CONTENTS 2.10 Physical evidence 90 2.11 Process 92 2.12 An extra ‘P’– partnerships 95 Chapter 3 E-models 101 3.1 Introduction to e-models 103 3.2 Online revenue models 104 3.3 Intermediary models 107 3.4 Attribution models 112 3.5 Communications models 120 3.6 Customer information processing models 124 3.7 Customer buying models 127 3.8 Loyalty models 131 3.9 Social media models 133 3.10 Social business models and the Ladder of Engagement 137 Chapter 4 E-customers 155 4.1 Introduction to e-customers 157 4.2 Motivations 165 4.3 Expectations 170 4.4 Fears and phobias 174 4.5 Online information processing 177 4.6 The online buying process 182 4.7 Online relationships and loyalty 187 4.8 Communities and social networks 191 4.9 Customer profiles 194 4.10 Researching the online customer 197 4.11 The post-literate customer 204 Chapter 5 Social media marketing 212 5.1 What is social media marketing and why is it important? 214 5.2 Benchmarking and setting goals for social media marketing 220 5.3 Create strategy and plan to manage social media 225 5.4 Social listening and online reputation management 235 5.5 Develop the content marketing and engagement strategy for your brand 241 5.6 Define social media communications strategy 244 5.7 Define approaches for the core social media platforms 262 5.8 Social media optimization (SMO) 271 Chapter 6 Site design 281 6.1 Introduction to site design 283 6.2 Integrated design 295 6.3 Online value proposition 299 CONTENTS vii 6.4 Customer orientation 304 6.5 Dynamic design and personalization 307 6.6 Aesthetics 311 6.7 Page design 320 6.8 Content strategy and copywriting 325 6.9 Navigation and structure 328 6.10 Interaction 333 6.11 Mobile site design 337 Chapter 7 Traffic building 346 7.1 Introduction to traffic building 348 7.2 Search engine marketing 352 7.3 Online PR 377 7.4 Online partnerships 385 7.5 Interactive advertising 392 7.6 Opt-in email 400 7.7 Viral marketing 403 7.8 Offline traffic building 405 Chapter 8 e-CRM 414 8.1 Introduction to e-CRM 416 8.2 Introduction to relationship marketing 422 8.3 Database marketing 433 8.4 e-CRM 440 8.5 Profiling 445 8.6 Personalization 450 8.7 Email marketing 454 8.8 Control issues 459 8.9 Cleaning the database 461 8.10 Making it happen 464 Chapter 9 Managing digital marketing 473 9.1 Introduction 475 9.2 Transformation to e-business 476 9.3 Creating the social business through implementing social CRM 480 9.4 The endless journey – reviewing digital marketing capabilities 487 9.5 Budgeting for digital marketing 488 9.6 Making the business case for e-marketing investment 494 9.7 Selecting the right suppliers for digital marketing 503 9.8 Change management for digital transformation 506 9.9 Measuring and optimizing digital marketing with digital analytics 512 9.10 Automation 518 9.11 Implementing new systems 521 viii CONTENTS 9.12 Managing data quality 525 9.13 E-business security 527 Chapter 10 E-planning 534 10.1 Introduction to e-marketing planning 536 10.2 Situation analysis 540 10.3 Objectives 547 10.4 Strategy 551 10.5 Tactics 559 10.6 Actions 564 10.7 Control 566 10.8 The 3Ms resources: ‘men’, money and minutes 576 Glossary 584 Index 603 Figures 1.1 SOSTAC® planning framework 4 1.2 Tesco home shopping service in South Korea 7 1.3 Options for online communications between an organization and its customers 10 1.4 Product categories at Alibaba 10 1.5 Vets Now Park Bench Facebook brand page 13 1.6 Euroffice Office Supplies serving B2C and B2B markets 17 1.7 E-marketing sloppiness causes high attrition rates 21 1.8 Ultralase 25 1.9 ROPO matrix showing main cross-channel customer behaviours 26 1.10 Online opportunities for product and market innovation 28 1.11 Categories of media: paid, owned and earned 34 1.12 Inbound marketing infographic 36 1.13 Using the PRACE framework 44 2.1 The 7Ps of the classic marketing mix 52 2.2 Revoo consumer product rating site 55 2.3 www.Bizrate.co.uk online shopping comparison site 56 2.4 Apple apps 60 2.5 Virtual Zippo® Lighter app 61 2.6 Gibson’s free app helps guitarists 62 2.7 The Gibson app’s metronome 62 2.8 Product information and news via the Gibson app 63 2.9 Unilever’s Domestos Flushtracker app 63 2.10 Helping customers to make decisions 65 2.11 New York’s Central Park QR codes allow visitors to enhance their experience 65 2.12 MoneySupermarket.com 72 2.13 EC21 global B2B