Component Specification Digital Marketing Project Level 5 5N1364 DIGITAL MARKETING PROJECT FOR COMPLETION BY OPTIMUM STUDENTS The following provides an outline of a comprehensive digital marketing plan that students of Optimum would complete for a real life case study organisation (be it their own business or that of a customer) as they progress through the training programme. The project builds on the learnings and experience of students from their Portfolio/Collection of Work mini projects that they will complete during this programme to populate Activity Plan section (section 7). 1 1. ORGANISATION VISION, MISSION & VALUES This section should the case study’s vision, mission and values. Mission – Content A written declaration of an organization's core purpose and focus that normally remains unchanged over time. Properly crafted mission statements (1) serve as filters to separate what is important from what is not, (2) clearly state which markets will be served and how, and (3) communicate a sense of intended direction to the entire organization. A mission is different from a vision in that the former is the cause and the latter is the effect; a mission is something to be accomplished whereas a vision is something to be pursued for that accomplishment. Also called company mission, corporate mission, or corporate purpose. Read more: http://www.businessdictionary.com/definition/missionstatement.html#ixzz3gRF68MwY Vision Statement – Content An aspirational description of what an organization would like to achieve or accomplish in the mid-term or long-term future. It is intended to serves as a clear guide for choosing current and future courses of action. See also mission statement. Read more: http://www.businessdictionary.com/definition/visionstatement.html#ixzz MISSION STATEMENT From Wikipedia, the free encyclopedia A mission statement is a statement of the purpose of a company, organization or person; its reason for existing; a written declaration of an organization's core purpose and focus that normally remains unchanged over time. 2 The mission statement should guide the actions of the organization, spell out its overall goal, provide a path, and guide decision-making. It provides "the framework or context within which the company's strategies are formulated." It is like a goal for what the company wants to do for the world.[2] According to Bart Christopher,[3][4] the commercial mission statement consists of three essential components: 1. Key market: Who is your target client or customer (generalize if needed)? 2. Contribution: What product or service do you provide to that client? 3. Distinction: What makes your product or service unique, so that the client would choose you? Ryanair -Mission Ryanair’s objective is to firmly establish itself as Europe’s leading low-fares scheduled passenger airline through continued improvements and expanded offerings of its low-fares service. Ryanair aims to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies. AerLingus- Mission Aer Lingus has positioned itself as a 'value carrier' on the basis that the pure low cost and low fares model is not sustainable while a full service model would not be viable in serving our key markets. The fundamental elements of this revised strategic approach included better matching of capacity to demand (involving reduction of long-haul capacity and reductions in capacity on over-served short-haul routes), a renewed focus on generating revenue per seat rather than simple maximisation of load factor as well as more emphasis on partnerships and connectivity to deliver on our primary mission of connecting Ireland with the world. See article in the guidance articles 2. MARKETING VISION & MISSION The above section establishes where the case study organisation is going which provides a framework for the digital marketing campaign’s purpose. The digital marketing campaign should support the organisation’s vision and mission. Digital Marketing Mission for Name- Content Digital Marketing Vision for Name- Content 3 3. SITUATION ANALYSIS All digital marketing planning should be driven from the analysis of the case study’s current situation and mission. The following sections are suggestions on what to include to inform the analysis which will become the foundation of the digital marketing plan. It’s important to review relevant aspects of the external environment of the case study organisation to highlight where your digital marketing campaign needs to focus in order to improve their competitive situation. External Environmental Analysis One of the most useful tools for conducting an external environmental analysis is the PESTEL framework. Pestel Analysis Factor What’s Happening Social e.g. E.g. Less profit on e.g. Consumers actual product. Long want value for Greater opportunity to money and are up sell services negotiating more Impact Term Options Moving Forward e.g. Develop the augmented product; value add services & finance options Technological Economic Environment Political Legal 4 Ethical MARKETING THEORIES – PESTEL ANALYSIS Welcome to our Marketing Theories series. In this post we will be looking at the PESTEL Analysis in a bit more detail. A PESTEL analysis is a framework or tool used by marketers to analyse and monitor the macro-environmental (external marketing environment) factors that have an impact on an organisation. The result of which is used to identify threats and weaknesses which is used in a SWOT analysis. PESTEL stands for: P – Political E – Economic S – Social T – Technological E – Environmental L – Legal Lets look at each of these macro-environmental factors in turn. All the external environmental factors (PESTEL factors) Political Factors These are all about how and to what degree a government intervenes in the economy. This can include – government policy, political stability or instability in overseas markets, foreign trade policy, tax policy, labour law, environmental law, trade restrictions and so on. It is clear from the list above that political factors often have an impact on organisations and how they do business. Organisations need to be able to respond 5 to the current and anticipated future legislation, and adjust their marketing policy accordingly. Economic Factors Economic factors have a significant impact on how an organisation does business and also how profitable they are. Factors include – economic growth, interest rates, exchange rates, inflation, disposable income of consumers and businesses and so on. These factors can be further broken down into macro-economical and microeconomical factors. Macro-economical factors deal with the management of demand in any given economy. Governments use interest rate control, taxation policy and government expenditure as their main mechanisms they use for this. Micro-economic factors are all about the way people spend their incomes. This has a large impact on B2C organisations in particular. Social Factors Also known as socio-cultural factors, are the areas that involve the shared belief and attitudes of the population. These factors include – population growth, age distribution, health consciousness, career attitudes and so on. These factors are of particular interest as they have a direct effect on how marketers understand customers and what drives them. Technological Factors We all know how fast the technological landscape changes and how this impacts the way we market our products. Technological factors affect marketing and the management thereof in three distinct ways: New ways of producing goods and services New ways of distributing goods and services New ways of communicating with target markets Environmental Factors These factors have only really come to the forefront in the last fifteen years or so. They have become important due to the increasing scarcity of raw materials, polution targets, doing business as an ethical and sustainable company, carbon footprint targets set by governments (this is a good example were one factor could be classes as political and environmental at the same time). These are just some of the issues marketers are facing within this factor. More and more consumers are demanding that the products they buy are sourced ethically, and if possible from a sustainable source. Legal Factors Legal factors include - health and safety, equal opportunities, advertising standards, consumer rights and laws, product labelling and product safety. It is clear that companies need to know what is and what is not legal in order to trade successfully. If an organisation trades globally this becomes a very tricky area to get right as each country has its own set of rules and regulations. After you have completed a PESTEL analysis you should be able to use this to help you identify the strengths and weaknesses for a SWOT analysis. http://www.professionalacademy.com/blogs-and-advice/marketing-theories---pestelanalysis 6 Porters Five Forces You may also choose to use Porters 5 forces to outline your external environments: FORCE WHAT’S HAPPENING? PRESSURE IMPACT Competitive rivalry e.g. new competitor e.g. high e.g. less market share Bargaining power of customers Bargaining power of suppliers Threat of new entrants Threat of products substitute PORTER’S FIVE FORCES http://www.mindtools.com/pages/article/newTMC_08.htm Assessing the Balance of Power in a Business Situation Assess the balance of power in a business situation, with James Manktelow and Amy Carlson. The Porter's Five Forces tool is a simple but powerful tool for understanding where power lies in a business situation. This is useful, because it helps you understand both the strength of your current competitive position, and the strength of a position you're considering moving into. With a clear understanding of where power lies, you can take fair advantage of a situation of strength, improve a situation of weakness, and avoid taking wrong steps. This makes it an important part of your planning toolkit. Conventionally, the tool is used to identify whether new products, services or businesses have the potential to be profitable. However it can be very illuminating when used to understand the balance of power in other situations. Understanding the Tool Five Forces Analysis assumes that there are five important forces that determine competitive power in a business situation. These are: 7 1. Supplier Power: Here you assess how easy it is for suppliers to drive up prices. This is driven by the number of suppliers of each key input, the uniqueness of their product or service, their strength and control over you, the cost of switching from one to another, and so on. The fewer the supplier choices you have, and the more you need suppliers' help, the more powerful your suppliers are. 2. Buyer Power: Here you ask yourself how easy it is for buyers to drive prices down. Again, this is driven by the number of buyers, the importance of each individual buyer to your business, the cost to them of switching from your products and services to those of someone else, and so on. If you deal with few, powerful buyers, then they are often able to dictate terms to you. 3. Competitive Rivalry: What is important here is the number and capability of your competitors. If you have many competitors, and they offer equally attractive products and services, then you'll most likely have little power in the situation, because suppliers and buyers will go elsewhere if they don't get a good deal from you. On the other hand, if noone else can do what you do, then you can often have tremendous strength. 4. Threat of Substitution: This is affected by the ability of your customers to find a different way of doing what you do – for example, if you supply a unique software product that automates an important process, people may substitute by doing the process manually or by outsourcing it. If substitution is easy and substitution is viable, then this weakens your power. 5. Threat of New Entry: Power is also affected by the ability of people to enter your market. If it costs little in time or money to enter your market and compete effectively, if there are few economies of scale in place, or if you have little protection for your key technologies, then new competitors can quickly enter your market and weaken your position. If you have strong and durable barriers to entry, then you can preserve a favorable position and take fair advantage of it. 6. Reprinted by permission of Harvard Business Review. From "How Competitive Forces Shape Strategy" by Michael E. Porter, March 1979. Copyright © 1979 by the Harvard Business School Publishing Corporation; all rights reserved. These forces can be neatly brought together in a diagram like the one in figure 1 below: Figure 1 – Porter's Five Forces 8 Using the Tool To use the tool to understand your situation, look at each of these forces one-by-one and write your observations on our free worksheet. Brainstorm the relevant factors for your market or situation, and then check against the factors listed for the force in the diagram above. Then, mark the key factors on the diagram, and summarize the size and scale of the force on the diagram. An easy way of doing this is to use, for example, a single "+" sign for a force moderately in your favor, or "--" for a force strongly against you (you can see this in the example below). Then look at the situation you find using this analysis and think through how it affects you. Bear in mind that few situations are perfect; however looking at things in this way helps you think through what you could change to increase your power with respect to each force. What’s more, if you find yourself in a structurally weak position, this tool helps you think about what you can do to move into a stronger one. This tool was created by Harvard Business School professor, Michael Porter, to analyze the attractiveness and likely-profitability of an industry. Since publication, it has become one of the most important business strategy tools. The classic article which introduces it is "How Competitive Forces Shape Strategy" in Harvard Business Review 57, March – April 1979, pages 86-93. 9 Example Martin Johnson is deciding whether to switch career and become a farmer – he's always loved the countryside, and wants to switch to a career where he's his own boss. He creates the following Five Forces Analysis as he thinks the situation through: Figure 2 – Porter's Five Forces Example: Buying a Farm This worries him: The threat of new entry is quite high: if anyone looks as if they're making a sustained profit, new competitors can come into the industry easily, reducing profits. Competitive rivalry is extremely high: if someone raises prices, they'll be quickly undercut. Intense competition puts strong downward pressure on prices. Buyer Power is strong, again implying strong downward pressure on prices. There is some threat of substitution. Unless he is able to find some way of changing this situation, this looks like a very tough industry to survive in. Maybe he'll need to specialize in a sector of the market that's protected from some of these forces, or find a related business that's in a stronger position. 10 Key Points Porter's Five Forces Analysis is an important tool for assessing the potential for profitability in an industry. With a little adaptation, it is also useful as a way of assessing the balance of power in more general situations. It works by looking at the strength of five important forces that affect competition: Supplier Power: The power of suppliers to drive up the prices of your inputs. Buyer Power: The power of your customers to drive down your prices. Competitive Rivalry: The strength of competition in the industry. The Threat of Substitution: The extent to which different products and services can be used in place of your own. The Threat of New Entry: The ease with which new competitors can enter the market if they see that you are making good profits (and then drive your prices down). By thinking about how each force affects you, and by identifying the strength and direction of each force, you can quickly assess the strength of your position and your ability to make a sustained profit in the industry. You can then look at how you can affect each of the forces to move the balance of power more in your favor. Market Overview Summarise the market situation of your case study – this will set your focus for the next few sections: E.g. They are in a competitive, fast moving market with a number of strong competitors offering similar products and services to them. The demand for XX is on the increase, however better resources are expected for free….etc. Current Target Markets Who are the high level markets of your case study? You may choose to write a summary of each, or simply list them here. This section will ensure that you’re clear on who you’re case study organisation is communicating with/needs to communicate with. Example Academics - Universities Professionals - Professional Bodies 11 Current Personas Persona analysis is a great way to make current/potential customers as realistic as possible in order to better inform decisions you need to make about recommended digital marketing strategies. Personas are fictional characters created to represent the different user types that might use a site, brand, or product in a similar way. Persona 1 Persona 2 Persona 3 Socio-economic group Gender Buying behaviour How they access the web (smartphone, laptop etc) Customer Touch Points Who/what engages with your case study’s clients? Evaluate this to check for gaps and improvements. Touch Point Department Website Marketing Does it meet their expectation/need? - Could be clearer on what we do - Easy to find information Competitive Edge - Video Centric 12 - Good call to action www.surveymonkey.com543 × 520Search by image Competition Understanding the competition of your case study and what they’re good at will help you develop a digital marketing plan which will add more value than your rivals. Now Who are they? Brand Marketing Mix Name Details about their brand Product Founded in Price Potential competitive advantage on us What do they offer which is better than you? 13 Placement Promotion General SWOT Analysis SWOT Analysis is a great way of highlighting what you’re case study is good at and what you need to invest time and resources into. Strengths - E.g. Strong and clear website Weaknesses - E.g. Weak organic presence Opportunities - E.g. Build a strong Digital Marketing brand Threats - E.g. Large number of free resources already available SWOT ANALYSIS From Wikipedia, the free encyclopedia A SWOT analysis (alternatively SWOT matrix) is a structured planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. Some authors credit SWOT to Albert Humphrey, who led a convention at the Stanford Research Institute (now SRI International) in the 1960s and 1970s using data from Fortune 500 companies.[1][2] However, Humphrey himself does not claim the creation of SWOT, and the origins remain obscure. The degree to which the internal environment of the firm matches with the external environment is expressed by the concept of strategic fit. Strengths: characteristics of the business or project that give it an advantage over others. 14 Weaknesses: characteristics that place the business or project at a disadvantage relative to others. Opportunities: elements that the project could exploit to its advantage. Threats: elements in the environment that could cause trouble for the business or project. Identification of SWOTs is important because they can inform later steps in planning to achieve the objective. First, the decision makers should consider whether the objective is attainable, given the SWOTs. If the objective is not attainable a different objective must be selected and the process repeated. Users of SWOT analysis need to ask and answer questions that generate meaningful information for each category (strengths, weaknesses, opportunities, and threats) to make the analysis useful and find their competitive advantage. Assumptions Any non-factual information about your environments go in here; these should ideally turn into facts over time. 15 4. ORGANISATION & MARKETING OBJECTIVES Now that you’re clear on the current situation of your case study organisation, you’re in a position to clearly outline your objectives. It’s recommended that you use the SMART framework when setting your objectives, so that each one is: - Specific Measurable Achievable Realistic Time bound Objectives for your case study organisation over the next 12 months Objective 1. Double the size of the business to £x turnover 2. Objective 2 Strategy 1. Provide the best range of products to key market segments 2. Strategy for objective 2 1. Increase number of new business Sales by X% 2. Objective 2 relating to organisational objective 2 1. Provide the best range of products to key market segments 2. Strategy for marketing objective 2 Marketing Mix Product 1. Objective 1. Strategy 1 for objective 1 Place 1. Objective 1. Strategy 1 for objective 1 Price 1. Objective 1. Strategy 1 for objective 1 Promotion 1. Objective 1. Strategy 1 for objective 1 Organisational (Next 12 months) Marketing (Next 12 months) 16 5. STRATEGY What is your recommended digital marketing strategy going to be based on the analysis of the case study’s situation and their goals? How are you going to achieve your objectives for this case study organisation? It can be useful to take each objective and outline what you will do at a high level to achieve it within the term. Objectives might include the following: Increase Brand Engagement Increase Conversion/Loyalty Increase ‘Sticky’ traffic to your website Increase Conversion/Loyalty Increased Sales 6. TACTICS The finer details of your recommended strategy should go in here – this could include breaking down each strategic line above, for example raising brand awareness through online campaigns. Resources Detailing the resources you require to deliver your plan will help you identify what is practical within a budget. You can detail each resource here and the role they will play in delivering your plan. Title Digital Marketing Manager Occupant Name of occupant or Vacancy Responsibilities Planning/Strategy/Tactical/Implementation 17 Budget Once you have compiled the tactical elements of your recommended plan you can put together the budget you require to deliver it. Annual costs Google adwords (PPC) Annum Quarter Month Sub Total Once Off Costs Software - Adobe Creative Suite - Demo Builder Sub Total Grand Total € € 7. ACTIVITY PLAN This is where you can really break your recommended plan down into clear actions. If you’re experienced in project management you may choose to create a full project plan, which could include Gantt charts, network charts etc. – however there are other options such as the ones shown below. Marketing Mix The marketing mix is a key set of tools for you to use as part of your plan – you can detail the specific actions for each element of the marketing mix here. Objective Product Strategy Strategy 1 from objectives section above Actions Main actions to complete Placement Price Promotion CAMPAIGNS Write the detail of each campaign you plan to run, these campaigns are specifically generated in support of the Strategy you have recommended in Section 5 and subject to the available budget identified in the Section 6 above. 18 Use your learnings and experience from your Portfolio/Collection of Work mini projects that you completed during this programme to populate this section. The campaign should be a combination of paid online advertising and social media activity. Campaign Generate 50 new customers Line of business New Strategy Goals - 600 leads required (380 in 2010) Target - All target markets Key messages - Affordable products Placement - Social Media Evaluate - No of leads Etc SOCIAL MEDIA Write up the details of your recommended social media activities here. Tool LinkedIn Target -Today’s audiences (as well as tomorrow’s) -Professionals -Targeted marketing by location, sector, job title, groups Actions -Set up company profile Facebook -Tomorrow’s audiences (as well as today’s) -More casual -Targeted marketing by location, likes and interests -Set up welcome page Twitter -Engaged users/prospects -Link with company blog YouTube -Engaged users/prospects -Set up video channel 19 Email Marketing Write up the details of your email marketing activities here. Many other factors need to be considered and reviewed such as: - Tone of messages and content Promotions/incentives offered Call to actions Content of “From” and "Subject" lines Length of email Campaign themes Timing and frequency of your emails 8. CONTROL AND EVALUATION It’s important that you outline how you will track and evaluate your recommended plan, objectives and strategies. This will be particularly important for justifying marketing budget to the case study organisation. As always there are many ways you can do this using online tools but here is a simple table as an example: Evaluate 1. Keywords 2. Brand Awareness Measure Tools 1. Rank well on top Google Adwords keywords 1. Number of Likes on Count the client’s Facebook page 20
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