A short introductory overview presentation on Digital Marketing, its concepts, controlling, and perspectives.

1. Digital Marketing: Concepts, Controlling, Perspectives | Prof. Dr. Paul Marx
Digital Marketing
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Concepts, Controlling, Perspectives
Prof. Dr. Paul Marx

2. Digital Marketing: Concepts, Controlling, Perspectives | Prof. Dr. Paul Marx
Marketing
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Peter Drucker
“Marketing is so basic that it cannot be considered a
separate function…
It is the whole business seen from the point of view of
its final result, that is, from the customer’s point of
view.”

3. Digital Marketing: Concepts, Controlling, Perspectives | Prof. Dr. Paul Marx
Marketing
Companies are not in business
to create things
but they are in business
to create customers
(Unknown)
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4. Digital Marketing: Concepts, Controlling, Perspectives | Prof. Dr. Paul Marx
Digital Marketing… Is it Something New?
“Each year brings its crop of new ideas about philosophy and practices of
marketing, some of them being dressed up in pseudo-scientific terminology
by consultants and academics, eager to use their knowledge base to sell a
new idea to people who fear being left behind.
In fact, basic principles of marketing have been quite enduring, and claims
for completely new approaches to marketing should be treated cautiously.
For the experienced marketer, most new ideas are based on age-old
underlying theory […].
We really have to distinguish between genuinely new marketing ideas –
which are quite rare – and old ideas that have been applied to a new
marketing environment.”
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Prof. Dr. Adrian Palmer
Keele University
(2012)

5. Digital Marketing: Concepts, Controlling, Perspectives | Prof. Dr. Paul Marx
New Marketing Environment
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6. Digital Marketing: Concepts, Controlling, Perspectives | Prof. Dr. Paul Marx
New Marketing Environment
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7. Digital Marketing: Concepts, Controlling, Perspectives | Prof. Dr. Paul Marx
Digital: A New Plane for Projection?
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• Internet
• Interanet, LAN
• Digital TV & Radio
• Interactive Screens, POS terminals
• Mobile Devices, Digital Gadgets
• IoT
• RFID
• Location Based Services
• Additive Manufacturing (3D Printing)
• Big Data
• Machine Learning, AI
• Self driving Cars
• Robotics
• ...

8. Digital Marketing: Concepts, Controlling, Perspectives | Prof. Dr. Paul Marx
Past Metaphor: The Purchase Funnel
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Attention Consideration Purchase Loyalty

9. Digital Marketing: Concepts, Controlling, Perspectives | Prof. Dr. Paul Marx
Modern Metaphor: Consumer Decision Journey
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McKinsey (2009), „The Consumer Decision Journey“
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The consumer considers an initial set
of brands, based on brand
perceptions and exposure to recent
touchpoints.
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After purchasing a product or service,
the consumer builds expectations
based on experience to inform their
next decision journey
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Consumers add or subtract
brands as they evaluate what
they want.
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Ultimately the consumer selects
a brand at the moment of
purchase.

10. Digital Marketing: Concepts, Controlling, Perspectives | Prof. Dr. Paul Marx
Has the Web Made the Funnel Fat?
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McKinsey (2009), „The Consumer Decision Journey“
Attention Consideration Purchase Loyalty
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The consumer considers an initial set
of brands, based on brand
perceptions and exposure to recent
touchpoints.
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After purchasing a product or service,
the consumer builds expectations
based on experience to inform their
next decision journey
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Consumers add or subtract
brands as they evaluate what
they want.
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Ultimately the consumer selects
a brand at the moment of
purchase.
Loyalty

11. Digital Marketing: Concepts, Controlling, Perspectives | Prof. Dr. Paul Marx
Customer Journey uses different channels and needs to be fully
understood to identify barriers to purchases as early as possible
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Source: Prof. Dr. Christian Schlereth (WHU)

12. Digital Marketing: Concepts, Controlling, Perspectives | Prof. Dr. Paul Marx
Instruments of Digital Marketing
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SEO
E-Mail MarketingSocial Media Marketing
SEA Content Marketing
CRM
Data Analytics, Artificial Intelligence, Recommender Systems

13. Digital Marketing: Concepts, Controlling, Perspectives | Prof. Dr. Paul Marx
Classic “mid-funnel“ became less effective
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Consider, Preference, Buying intention and Loyalty matter less than Awareness
Consumers need to be aware, then look online
Pauwels (2016), „Rethinking Path to and from Purchase“

14. Digital Marketing: Concepts, Controlling, Perspectives | Prof. Dr. Paul Marx
So, the Relevant KPIs are
• Measures of Awareness
• Impressions (Paid, Direct, Organic, Social, Referral, Display)
• Clicks
• Open Rate, Clicks (emails)
• Engagement (SMM): Number of Likes, Shares, Comments
• Measures of Conversion
• Number of Conversions
• CPC
• CPA
• Value per Conversion
• Average Sale
• Measures of the efficiency of Digital Marketing Investments
• ROMI
• All Costs / All Conversions = Average Costs of Conversion
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15. Digital Marketing: Concepts, Controlling, Perspectives | Prof. Dr. Paul Marx
Challenges in KPIs
• Carry-Over Effects
(previous campaigns affect subsecuent ones)
• Spill-Over Effects
(campaings of other products of the same brand influence the one in question)
• Attribution
(What advertising/communication channel caused byuing?)
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16. Digital Marketing: Concepts, Controlling, Perspectives | Prof. Dr. Paul Marx
Case Study: QUESTIONSTAR
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• 40 new users whilst Facebook
analytics showed only 12
engagements with the post
• No way to infere they all came via
Facebook
• Because instead sharing the post
they shared the screenshot of the post
via WhatsApp

17. Digital Marketing: Concepts, Controlling, Perspectives | Prof. Dr. Paul Marx
Perspectives
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Old Marketing
New Marketing

18. Digital Marketing: Concepts, Controlling, Perspectives | Prof. Dr. Paul Marx
Perspectives
• Increased role of Data Analytics
• Increase in mobile device usage
• Location Based Servises
• IoT
• Additive Manufacturing =>
Boundaries beween physical goods and information diminish
• AI & Machine Learning => better reaction to user actions, less
understanding why
• One to One communication => Building Relationships with
most active users
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19. Digital Marketing: Concepts, Controlling, Perspectives | Prof. Dr. Paul Marx
Thank you!
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