DIGITAL MARKETING
Digital Marketing Fundamentals
Chapter 1:
Introducing Digital Marketing
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Chapter 1 – Introducing Digital Marketing
Main Topics:
• Digital Marketing: Introduction
• Digital and Multichannel marketing
• Customer Journey Maps
• Introduction to Marketing Funnels.
• Introduction to digital marketing strategy
• Introduction to digital marketing
communications
Case Study: eBay thrives in the global market place.
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Digital Marketing Concept:
• Objective: Promoting products, services, or brands
to a targeted audience.
• Strategy: Utilizing digital channels and
technologies.
• Methods: SEO, social media marketing, email
campaigns, and more.
• Purpose: Enhancing brand visibility, engaging
customers, and driving digital conversions.
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Digital and multichannel marketing?
A digital channel is any communication
method or platform a business can use to reach
their target audience online.
They are things like websites, search
engines, email, or social media
platforms.
If the aim of e-commerce is to sell products online,
then digital marketing helps businesses make that
happen.
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The 7Ds or pillars supporting effective digital
marketing
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Effective Marketing Strategy
Effective marketing strategy starts with learning
about customers needs and Pain points.
Pain points:
Are the specific problems customers and potential
customers want to solve.
Instead of asking, "How do we sell more
products?", the most successful businesses want
to know:
"How do we help customers address their pain
points or achieve their goals?"
One is about the company's goals, the other is
about the customer journey.
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Customer Journey Map
Each interaction with a brand during a customer journey is called a
touchpoint.
Touchpoints relate to a specific context or need
Touchpoints are customer-centric
Use touchpoints to your advantage: To get the most from touchpoints,
carefully define them for all media channels.
Touchpoints that are customer-centric and relate back to their needs will yield
the most useful data about customer motivations, preferences, and
behaviors. Copyright © 2022 Pearson Education, Inc. All Rights Reserved
The traditional marketing funnel to the digital
marketing funnel
It’s time to introduce a related concept: the marketing funnel.
A marketing funnel is a visual representation of the process through which
people go from first learning about a brand to becoming loyal customers.
Desirable outcomes for a sales funnel, like the one shown in the graphic,
might be:
Awareness (ToFU): The customer has a general
awareness of your brand, product, or service.
Interest (MoFU): Your brand, product, or service
comes up as a top choice when the customer researches,
comparison shops, or thinks about options.
Decision (MoFU): The customer chooses your brand,
product, or service over your competitor’s.
Action (BoFU): The customer purchases your brand,
product, or service.
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Combined marketing and sales funnel
Combined funnels for marketing and sales grew out of sales funnels. One example is
shown below. Funnel with Traditional and Digital Marketing inputs at the top of the
funnel and Awareness, Interest, Desire, Action, and Conversion as downward-
progressing stages of the funnel.
Desirable outcomes for a combined sales and marketing funnel,
like the one shown in the graphic, might be:
• Awareness (ToFU): The customer has a general
awareness of your brand, product, or service.
• Interest (MoFU): Your brand, product, or service comes
up as a top choice when the customer researches, comparison
shops, or thinks about options.
• Desire (MoFU): The customer has motivation or an
incentive to purchase your brand, product, or service.
• Action (BoFU): The customer purchases your brand,
product, or service for the first time.
• Conversion (BoFU): The customer makes regular
purchases and a customer relationship is established.
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Digital marketing funnel
As business and technology evolved, more specialized funnels were then
developed, as in the case of a funnel entirely dedicated to digital marketing. An
example of a specialized digital marketing funnel is shown below.
Desirable outcomes for a digital marketing funnel, like the one shown in the
graphic, might be:
Awareness and engagement (ToFU): The
customer has a general awareness of your brand, product, or
service, and engages in online activity to learn more.
Consideration (MoFU): Your brand, product, or
service comes up as a top choice after the customer has
engaged.
Remarketing (MoFU): The customer who didn’t
convert is re-engaged to consider your brand, product, or
service again.
Conversion (BoFU): The customer purchases your
brand, product, or service for the first time.
Retention (BoFU): The customer makes regular
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purchases and a customer relationship is established.
Measuring success at the top of the funnel
Measuring outcomes at each stage of the funnel allows you to find
out what you're doing right, what you're doing wrong, and where
you can improve. A metric is a quantifiable measurement used to
track and assess progress toward an objective.
• Marketing metrics: can gauge different aspects of campaign
performance and effectiveness in the Awareness stage.
• The metrics companies use to measure success at the top of the
funnel are: impressions, reach, and frequency.
• Marketers use tools to track things like
• Impressions are the total number of times an ad appears on
people's screens.
• In contrast, reach is the total number of unique individuals
who encounter an ad across their different devices.
• Frequency refers to how many times each individual
encounters the ad in a given timeframe.
Measuring success at the top of the funnel
• If an ad is encountered 200 times by 100 people,
the number of impressions is 200,
• since it's been shown 200 times.
• The reach of an ad that's encountered 200 times
by 100 people would be 100.
• So, if each of those 100 people gets the ad twice in
a week, their frequency would be two.
Measuring success at the top of the funnel
• Marketing metrics can gauge different aspects of
campaign performance and effectiveness in the
Consideration Stage.
• Consideration can be measured through website
engagement:
• Including page visits,
• Detailed views, and email sign-ups.
• Engagement: defined as How much, how often, and
for how long are potential customers engaging with
your content.
• Analytics tools can track things like how often
customers search for your business online, the
number of first-time visitors to a site, the number
of pages per visitor, and how long visitors spend
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Measuring success: Bottom of the funnel
• Marketing metrics can gauge different aspects of campaign
performance and effectiveness in the Conversion Stage.
• The most basic thing you can measure at the conversion stage
is the number of conversions:
• A conversion happens when a potential customer takes the
desired action, in this case, when they make a purchase.
• Tracking time to conversion, cost per conversion, the average number
of touchpoints before conversion, or the average order size can
provide valuable insights into how customers interact with your brand
• These insights also allow you to address drop off issues like abandoned carts.
• Cart abandonment is when a customer adds an item to their cart but doesn't
complete the purchase.
• It is estimated that nearly 70% of online carts are abandoned. So finding out
where customers drop off in the checkout process can help you improve
procedures and increase your conversions
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Measuring success: Bottom of the funnel
• Marketing metrics can gauge different aspects of campaign
performance and effectiveness in the Loyalty Stage.
• How a business chooses to measure loyalty depends on their
target audience and particular goals.
• Some common things to measure include the rate of repeat
purchases, the length of time between purchases, the number
of orders per customer and the rate of account activation after
sign-up. The level of engagement with rewards programs is also
another indicator of customer loyalty over time.
• Loyalty metrics allow businesses to assess and refine strategies
to keep customers, boost sales, and save money.
But they also reveal where they can manage customer relationships
more effectively. In the end, customer loyalty is the truest test of how
well the entire funnel served customers and meets their needs.
Customer lifecycle marketing touchpoint
summary for a retailer
A journey map traces the customer's path to purchase along specific touchpoints.
But a marketing funnel is part of a business's plan for moving customers along
their journey.
A journey map adopts the customer's
perspective, but a funnel considers that
same process from the position of the
business.
Second, the structure of a marketing
funnel is simpler than a journey map.
Customer journeys are complex
because they demonstrate how
customers might interact with the
brand.
Source: Smart Insights
(2017)
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The marketing technology landscape
Source: With permission –
[Link]
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Topic Wrap-Up
Before we move on, let's reflect on what you've already learned.
• Digital marketing is more than just creating ads to drive sales. An effective digital
marketing strategy can affect every interaction a brand has with its customers.
• Explored the idea of the customer journey and how businesses use journey maps
to understand their customers' needs and motivations.
• You also found out how customer journey maps can work together with
marketing funnels to focus marketing efforts where they'll be most effective.
• Learned more about the top of the funnel and the tactics businesses used to
reach and engage with potential customers in the awareness and consideration
stages.
• Explored the bottom of the funnel and some ways to turn leads into loyal
customers.
• Finally, discovered the importance of measuring success throughout the funnel,
and how the insights businesses gain can help them improve the customer
journey.
By learning customer journey maps and marketing funnels, you're beginning to
understand how to use digital channels effectively to reach customers.
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