eMarketing eXcellence Planning and optimizing your digital marketing This page is intentionally left blank eMarketing eXcellence Planning and optimizing your digital marketing Third edition Dave Chaffey and PR Smith AMSTERDAM • BOSTON • HEIDELBERG • LONDON • OXFORD • NEW YORK PARIS • SAN DIEGO • SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO Butterworth-Heinemann is an imprint of Elsevier Butterworth-Heinemann is an imprint of Elsevier Linacre House, Jordan Hill, Oxford OX2 8DP, UK 30 Corporate Drive, Burlington, MA 01803, USA First published 2002 Reprinted 2003 (twice) Second edition published 2005 Third edition published 2008 Copyright © 2008, Dave Chaffey and PR Smith. 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British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloguing in Publication Data A catalogue record for this book is available from the Library of Congress ISBN 978-0-7506-8945-8 For information on all Butterworth-Heinemann publications visit our website at http://elsevierdirect.com Typeset by Charon Tec Ltd, (A Macmillan Co) Chennai, India www.charontec.com Printed and bound in Slovenia 08 09 10 11 12 10 9 8 7 6 5 4 3 2 1 Contents Preface xi Preface to the third edition xvii Acknowledgements xix Chapter 1 Introduction to e-marketing 1 1.1 Introduction 3 1.2 Situation – the wired-up world 4 1.3 Situation – B2C, B2B, C2B and C2C 7 1.4 Situation – e-definitions 12 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 35 1.11 Objective – sizzle – using the Internet as a brand-building tool 37 1.12 Introduction to e-strategy 40 1.13 Tactics, actions and control 43 Chapter summary 44 References 45 Further reading 46 Web links 46 Self-test 46 Chapter 2 Remix 48 2.1 Introduction to Remix 50 2.2 What is the marketing mix? 51 2.3 Beyond the mix 54 2.4 Product 56 2.5 Price 64 2.6 Place 69 2.7 Promotion 71 vi CONTENTS 2.8 People 78 2.9 Physical evidence 82 2.10 Process 83 2.11 An extra ‘P’ – partnerships 86 Chapter summary 88 References 89 Further reading 90 Web links 90 Self-test 91 Chapter 3 E-models 92 3.1 Introduction to e-models 94 3.2 New models required 96 3.3 E-marketplace models 98 3.4 Online revenue models 103 3.5 Digital communications models 105 3.6 Models for assessing online communications effectiveness 109 3.7 Web 2.0 and social network models 112 3.8 Customer buying models 120 3.9 Customer information processing 121 3.10 Loyalty models 122 Chapter summary 125 References 126 Further reading 128 Web links 128 Self-test 128 Chapter 4 E-customers 130 4.1 Introduction to e-customers 132 4.2 Motivations 140 4.3 Expectations 145 4.4 Fears and phobias 149 4.5 The online buying process 151 4.6 Online information processing 156 4.7 Online relationships and loyalty 159 4.8 Communities and social networks 163 4.9 Customer profiles 168 4.10 Researching the online customer 170 4.11 The post-PC customer 176 Chapter summary 178 References 179 Further reading 180 Web links 180 Self-test 181 CONTENTS vii Chapter 5 E-tools 182 5.1 Introduction to e-tools 184 5.2 Technology development and customer impact 185 5.3 Interactive digital TV 188 5.4 Digital radio 194 5.5 Mobile (wireless) devices 197 5.6 Interactive self-service kiosks 202 5.7 Miscellaneous tools 204 5.8 Repurposing content 209 5.9 Convergence 210 5.10 Integrated campaigns 212 Chapter summary 216 References 217 Further reading 218 Web links 218 Self-test 219 Chapter 6 Site design 220 6.1 Introduction to web site design 222 6.2 Integrated design 232 6.3 Online value proposition 235 6.4 Customer orientation 239 6.5 Dynamic design and personalization 245 6.6 Aesthetics 248 6.7 Page design 257 6.8 Copywriting 261 6.9 Navigation and structure 263 6.10 Interaction 268 Chapter summary 272 References 272 Further reading 274 Web links 274 Self-test 275 Chapter 7 Traffic building 276 7.1 Introduction to traffic building 278 7.2 Search engine marketing 282 7.3 Online PR 303 7.4 Online partnerships 310 7.5 Interactive advertising 319 7.6 Opt-in e-mail 325 7.7 Viral marketing 328 7.8 Offline traffic building 330 7.9 Control 335 7.10 Resourcing 338 viii CONTENTS Chapter summary 341 References 341 Further reading 343 Web links 343 Self-test 344 Chapter 8 E-CRM 345 8.1 Introduction to CRM 347 8.2 Introduction to relationship marketing 352 8.3 Database marketing 359 8.4 E-CRM 367 8.5 Profiling 372 8.6 Personalization 375 8.7 E-mail marketing 378 8.8 Control issues 383 8.9 Cleaning the database 385 8.10 Making it happen 386 Chapter summary 390 References 391 Further reading 392 Web links 393 Self-test 393 Chapter 9 E-business 395 9.1 Introduction to e-business 397 9.2 E-business architecture 405 9.3 An e-business value framework 408 9.4 Buy-side applications 412 9.5 In-side applications 414 9.6 Sell-side applications 416 9.7 Creating the e-business 420 9.8 E-business security 422 9.9 E-business success criteria 426 9.10 E-business failure criteria 430 Chapter summary 434 References 435 Further reading 436 Web links 436 Self-test 437 Chapter 10 E-planning 438 10.1 Introduction to e-marketing planning 440 10.2 Situation analysis 444 CONTENTS ix 10.3 Objectives 451 10.4 Strategy 454 10.5 Tactics 464 10.6 Actions 469 10.7 Control 471 10.8 Resources – men, money and minutes 475 Chapter summary 480 References 480 Further reading 481 Web links 481 Self-test 482 Glossary 483 Index 501 This page is intentionally left blank Preface Why eMarketing eXcellence? E-marketing impacts all aspects of marketing from strategy and planning through the mar- keting mix, marketing communications and buyer behaviour to marketing research. eMar- keting eXcellence highlights the most significant opportunities, pitfalls and defines the new marketing approaches needed. It highlights best practice in applying digital media to support a range of organizational goals based on the 20 years ’ plus combined practical Internet mar- keting experience of the authors. Best practice is exemplified by a selection of the leading pureplay and multichannel organizations who have exploited the unique characteristics of digital media. E-marketing impacts all organizations. eMarketing eXcellence shows you how to assess your current use of e-marketing and then develop and resource an effective plan. E-marketing does not exist in a vacuum. Planning must ensure that e-marketing integrates with the marketing objectives and the corporate aims of moving towards e-business. eMar- keting eXcellence shows how to develop a plan that achieves this integration. The e-marketing imperative is further indicated by success stories from leading adopters of e-marketing such as Alliance and Leicester, BMW, Dell, CIPD, Diageo, E-consultancy, ING Direct, Tektronix and TUI, who have found e-marketing to be effective and who are sub- stantially increasing their online marketing expenditure to double-digit percentages of total marketing communications spend. How is eMarketing eXcellence structured? eMarketing eXcellence has been developed to help you learn efficiently. It has supported stu- dents on many university and college business and marketing courses and a range of spe- cialist qualifications in digital marketing offered by the Chartered Institute of Marketing, E-consultancy/Manchester Metropolitan University and The Institute of Direct Marketing. It is structured around ten self-contained chapters, each of which supports learning through a clear structure based on sections with clear learning outcomes, summaries and self-test ques- tions. The E-marketing Insight boxes give varied perspectives from practitioners and aca- demics while the E-marketing Excellence boxes give examples of best practice. We have also included numerous tips and best practice checklists for you to compare your e-marketing against and to help you develop a plan. xii PREFACE Chapter 1 Introduction to e-marketing This chapter introduces e-marketing and its benefits and risks. It describes the difference between e-commerce, e-business and e-marketing; the alternative digital communications channels, the dangers of sloppy e-marketing; how to present a business case for increasing your online activities and the benefits – Sell, Serve, Save, Speak and Sizzle.