DDM

Organizational Impact - Implementation

Shanaka Rathnayake – MBA (UWE Bristol)

shanaka.sar@gmail.com
How things evolved

• Internet becoming more accessible & affordable

• Boost digital adaptation
• Ignites disruption in business models & consumption
Disruption in Marketing
“Use of digital technology including blogs, websites, social media and online ads to
promote a brand, product or service.”

or

or
Achieving marketing objectives through applying digital media, data and technology.
Extended Reality (XR) encompasses virtual reality (VR), augmented reality
(AR), and mixed reality (MR) to create immersive digital experiences.

XR is being used to:

• Boost brand engagement
• Enable try-before-you-buy experiences
• Enhance customer service
• Improve workplace learning
• Streamline organizational processes
Digital Business Models
 • Flash sales
• Freemium
• Sharing
Understanding of
• Reverse auction model
new business • Crowdsourcing
models • Consume to consumer
• Gig economy
Flash sales

• Every item has a start and a finish time within which it will be available
for sale
• Almost all items are heavily discounted
• The company normally would not maintain any inventory – so the
product will be directly sourced from the manufacturer to the buyer
• Delivery usually takes longer than normal
• Examples – daraz.lk, buyabans.lk, etc
 Freemium
• Product or service is available for a period of time for free
• Usually uses advertising revenue to provide content for free
• Objective is to make the customer reliant on the service to such an extent
that they are convinced of the ‘value’ proposition
• A reasonably priced continuity clause (premium service) is usual to gain
long term business and trust of customers
• Built in assurance dimensions like items being selected by experts who
are constantly reviewing choices made by customers is also common
• Example: Spotify Sri Lanka
Crowdsourcing
• Works best in the case of wide interest and unavailability of funding
• Ownership of product/service is distributed in minor fractions
among multiple takers
• Normally the funds sought are very small in size and hence easy to
attract support
• Works well with certain types of products and services where IP is
not critically important
• Uniqueness and connection with public interests are key to gaining
support for raising money
• Example: Wikipedia, LEGO, Waze
Marketplace aggregator

• Concentrates information about products and services from

multiple providers at one central web platform

• Buyers can search, compare and sometimes be able to complete

sales transactions
• Examples: <activity>
Consume to consumer

• Sale of assets, second-hand goods & collectibles with a process

of bidding
Gig economy

• Labour offered on a temporary & flexible basis.

Leveraging Idle Time through digitalization
Vehicle owners having more idle Leveraged ‘idle time’ to rent the
time on their cars vehicle on hire through Uber –
(90% parked – idle time) Digital Platform

Unsold stock Sellers using ‘idle time’ of vehicles &

House owners sometimes don’t Leverage ‘idle space‘ by renting out No customers visiting fish
of fish deliver fish to customers via online
occupy all the rooms of the rooms for guests via mongers during lockdown
ordering
house AirBnb - Digital Platform

Idling resources that can be used Benefits of using Digitalization on ‘idle resources’

✓ Economic Opportunities

Bicycles & Trawlers & Parking Warehousing ✓ Increased Efficiency

Scooters sail boats Spaces & buildings
✓ Cost Savings – cost to income ratios

✓ Sustainability and Resource Optimization

✓ Community Building
Human skills Office Spaces
Vehicles Time
✓ Reduced Overconsumption
Implementation of
Digital Strategy
There is nothing called
Digital Marketing
 It’s Marketing
in a
Digital World
It’s about the ‘integration’
 Digital Strategy

A digital marketing strategy is

needed to provide consistent
direction for an organization's
online marketing activities so that
they integrate with its other
marketing activities and support
its overall business objectives.
What influence digital marketing strategy

Source: Smart Insights

Structuring a digital strategy

• Start with the right goal which is grounded in real economic value.

• Define a value proposition , which is unique but, importantly, deliverable.

• Do things differently; create a distinctive value chain.

• Be prepared to make trade-offs , tailoring a firm’s activities to outperform rivals.

• Create a fit between what the company does, where it wants to be and the resources available.

• Establish continuity. Planning decisions follow the distinctive position set out by the original
goals.
Digital marketing capability model

Source: Smart Insights

Stages of the digital marketing capability
Stages of the digital marketing capability

BCG research :
https://www.thinkwithgoogle.com/_qs/documents/8056/BCG-Mastering-Digital-Marketing-Maturity-Feb-2018_EN_WGk5Tbl.pdf
Marketing Strategy
What happens in general
Why it happens?

• A lack of mandate for overall orchestration of the things that

drive growth

• An increased focus on short term profits

• The fear of missing out on new trends and technologies

Short-termism…
Short-termism…

Read more on - https://phvntom.com/mark-ritson-targeting-or-mass-marketing-the-answer-is-both/

 The RACE Model

• Consists of four steps designed to help brands

engage customers effectively

• It reflects the stages in the customer journey or

lifecycle: starting with Awareness through to
Conversion and then post purchase Engagement.

• Provides a simple approach that can be used

across different levels within a digital marketing
plan.

• Assist in defining objectives, strategy & tactics as

well enabling the organization to set suitable KPI’s
at each stage.

Source: Smart Insights (2010)

REACH
• The awareness stage of branding where you focus on activities that will drive reach to your target
audience online and therefore traffic to your various website portals (websites, microsites or social
media pages) – destination pages.

• The media can be considered in the form of a paid for, owned or earned perspective.

• Key objective - Traffic driving objectives can be set from this.

 ACT - Act is short for Interact
• Encourage your visitor to interact with you – or take an action – when they land on your website page or
social media page. It’s the first stage of engagement before moving them to final conversion.

• This can be leaving details requesting a quote or further information (business-to-business), but it may
also be as simple as finding out more about a company or its products, searching to find a product,
signing up for a newsletter subscription or reading a blog post.

• These are all the top-level goals within your conversion funnels in analytics

‘How do you open the conversation and

encourage them to give you their time – and
sometimes their contact details’.
 CONVERT
• Getting visitors to take that final next step which turns them into paying customers (payment can happen
online or offline via as a strong business lead e.g. Apartment purchase, Insurance quote, etc.)

• Conversion % based objectives will need to drive activities in this stage.

 ENGAGE
• Focus on developing a long-term relationship with first-time buyers to build customer loyalty.

• Drive repeat purchases & ideally brand advocacy.

• Objectives and KPI’s need to focus on engagement (e.g. engagement or shares on social media) or repeat
sales %.

• Other measures that can link to engagement are customer satisfaction scores e.g. reviews/ratings, NPS.
RACE Model in action (the full customer journey)
 To be truly successful, digital techniques
must be integrated with traditional media
such as print, TV, and direct mail as part
of multichannel marketing
communications.

The RACE planning framework splits up the customer's digital experience over Reach, Act, Convert
and Engage - the full customer journey.
 Why use the RACE model?
• Practical and action-oriented – it focuses on tactics you can implement in your digital marketing
communications and on your website and mobile apps.

• Customer-centred – it follows the established customer lifecycle of relationship building or marketing

funnel from creating awareness; generating leads from new prospects; converting prospects to sale online
or offline and encouraging loyalty, repeat sales and advocacy such as social sharing.

• Integrates all modern marketing activities – RACE covers all the many paid, owned and earned inbound
marketing activities available from digital marketing. Plus, it also integrates traditional offline marketing
activities.

• It’s multi-channel – many businesses still rely on offline touchpoints to acquire and retain customers, you
will see these are built into RACE, particularly as part of ‘Convert’ where offline interaction is often needed
to make a sale.

• It’s based on a performance improvement process – it encourages a data-driven marketing approach that
defines KPIs that digital marketers should include at each stage for setting targets, reviewing results using
analytics and summary dashboards and continuous optimization.
Why do you need a Digital
Marketing Strategy?
You're directionless
No clear strategic goal for what they want to achieve online in terms of gaining new customers
or building deeper relationships with existing ones.

You won't know your online audience or market share

Customer dynamics will be different from traditional channels with different types of customer profiles
and behavior, competitors, propositions, and options for marketing communications.

Existing & new competitors will gain market share

Using an ad-hoc approach with no clearly defined strategies.

To have a powerful online value proposition

Value prop. tailored to your different target customer personas will help you differentiate your online service
encouraging existing and new customers to engage initially and stay loyal.
Wasting money and time through duplication
Invest in a marketing strategy that works for you and your team, to plan, manage and optimize
your digital channels and platforms.

Not agile enough to catch up or stay ahead

Be dynamic - trialing new approaches to gain or keep online audiences engaged.

You're not optimizing

digital marketing strategy enables you to get the basics right, then you can progress to the continuous
improvement of the key aspects like search marketing, site user experience, email, and social media
marketing.

You're not integrated

With an integrated plan in place, digital will become part of your marketing activity and part of business
as usual – no more separate business SILOS.
Convincing others you need a DM strategy

• Most companies uses a ‘series’ of tactics like social media, email marketing and Google ads
without a comprehensive plan & fail.

• Ultimately loosing faith in Digital Marketing.

Source: Smart Insights
 Digital Marketing Strategy

Different digital avenues/channels

requires a unique strategic approach.
Types of digital media channels
 Pick one example from each
digital channel that you have seen
Activity
or has been exposed to recently.
Approach to DM Strategy

Source: Smart Insights

 SMART objective example
Objectives set in customer acquisition, conversion, and retention categories via digital marketing.

Digital channel contribution objective.

Achieve 10% online revenue contribution within two years.

Acquisition objective.
Acquire 50,000 new online customers this financial year at an average cost per acquisition (CPA) of £30
with an average profitability of £5.

Conversion objective.
Increase the average order value of online sales to £42 per customer.

Engagement objective.
Increase active customers purchasing at least once a quarter to 300,000 in a market (a hurdle rate metric)
 Set SMART objectives for a brand
in the following categories;

Activity e-commerce Industry

Or

FinTech | Mobile Payment Apps

Application of Strategy

For established multichannel organizations, digital media offer a

range of opportunities for marketing products and services across
the buying cycle that companies need to review as part of their digital
strategy.
Example of Application
– Low cost Airline
Where does digital marketing fit in…
The relationship of strategies
Example
Thank You.