Digital Marketing

Management
Digital Marketing
Management
A Handbook for the Current
(or Future) CEO

Second Edition

Debra Zahay, PhD

President, Zahay, Inc.
Professor of Marketing,
St. Edward’s University, Austin, TX
Digital Marketing Management: A Handbook for the Current
(or Future) CEO
Copyright © Business Expert Press, LLC, 2020.

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First published in 2020 by

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 Dedication
To my husband Edward Blatz, my mother Joyce Zahay and our families,
and the late MaryLou Roberts for her guidance and inspiration.
 Abstract
This book is for managers and would-be managers who need to upgrade
their knowledge of digital marketing. Told from the perspective of mar-
keting strategy, it puts digital marketing in the context of firm strategy
selection. The first step in digital marketing is to understand your com-
pany and your brand. The next step is to put content and keywords on
your website so that they can be found in search. The next step is to use
the other delivery platforms of digital content, e-mail, social, and mobile,
to deploy that content to the customer. The final topics in the book focus
on the importance of data management and privacy. I discuss how to
develop a database and an integrated data platform and how to create
an organization that puts data quality at its center. These practices are as
critical to digital marketing success as the digital marketing delivery plat-
forms. Without quality data, no digital marketing program can be suc-
cessful. After discussing how to create processes for high-quality data and
a platform to manage that data, I then briefly discuss the use of analytics
in digital marketing. Finally, I cover issues in managing digital marketing
organization in the age of automation. In particular, I examine the skills
needed for digital marketing and the best way to structure an organiza-
tion for knowledge transfer in the area. After reading this book, the reader
should have a good idea of where to start on the path to an integrated dig-
ital marketing management strategy. Each chapter concludes with a list of
action steps or “what to do next” to get started on implementing a digital
marketing strategy, as well as review questions and key terminology.

Keywords
Digital marketing; search engine marketing; e-mail marketing; social
media marketing; data quality; database management; data analytics
 Contents
Acknowledgments....................................................................................xi
Introduction.........................................................................................xiii
Part I Foundations ................................................................... 1
Chapter 1 How Did We Get Here? Definitions and Background........3
Chapter 2 Creating the Strategic Digital Marketing Objective..........19
Chapter 3 Web and Mobile Design..................................................27
Part II Delivery......................................................................... 43
Chapter 4 Search Engine Marketing.................................................45
Chapter 5 E-mail Marketing.............................................................63
Chapter 6 Content Marketing, Social Media and The Role
of Mobile.........................................................................79
Part III Context......................................................................... 97
Chapter 7 Customer Relationship Management (CRM) and the
Role of Leadership in Digital Marketing..........................99
Chapter 8 Legal Issues: Data Privacy, Security, and
Intellectual Property.......................................................115
Chapter 9 The Customer Database, Analytics, and the
Data-Driven Organization.............................................123
Chapter 10 Managing the Digital Marketing Enterprise in a
World of Marketing Automation....................................145
Chapter 11 Concluding Thoughts....................................................153

Appendix.............................................................................................157
About the Author.................................................................................161
Index..................................................................................................163
 Acknowledgments
Victoria Crittenden, Rich Hagle, Charlotte Mason, George Milne, Kurt
Ruf, Lisa Spiller, Thorne Washington
 Introduction
When I began my career as a marketing professional, e-mail was a
rare privilege. There were four major forms of marketing communica-
tion: in-person, phone, fax, and postal mail. Everything that we needed
to know about the customer we learned from talking to the customer,
through research surveys, or from transaction records, laboriously col-
lected, and sometimes painstakingly supplemented. There was no online
behavioral data to analyze, no web logs, or click-through rates.
I remember, not too long ago, going through hard copies of print-
outs with a yellow highlighter to pick out the industries which were most
likely to yield increased sales in terms of vertical marketing specialization
(a technique which worked, by the way). I was somewhat unique in hav-
ing come from an information systems background and being able to
coax decisions from data in the organization. Those who knew how to do
so usually labored, as I did, in direct marketing, one of the few areas of
marketing which relied on customer data analysis for decision making.
Now I would argue that an individual who is in marketing cannot
escape the inexorable rise of technology and its applications. A prolif-
eration of communications channels and a reliance upon technology
by both business-to-business (B2B) and business-to-consumer markets
(B2C) mean that we marketers are dependent upon the importance of
digital marketing. Not only that, digital marketing is the responsibility
of everyone in the organization, beginning with upper management. For
example, if 93 percent of purchases begin with searching the web, then
search is everybody’s business in the company, not just that of marketing.1
This book is a handbook for the management of digital marketing. It
is not, like my other digital marketing book, Internet Marketing: Integrat-
ing Online and Offline Strategies in a Digital Environment, 4th edition,
with MaryLou Roberts, designed to also be used in a skills-based course

1
Sticky Branding. “93% of B2B Purchases Start with Search.” https://stickybranding
.com/93-of-b2b-purchases-start-with-search/, (accessed October 13, 2019).
xiv INTRODUCTION

and provide a detailed overview of the ins and outs of the execution of
digital marketing. Those seeking to learn the details of operating social
media platforms or how to effectively create paid search ads can look to
that text or other resources to do so.
This book is for managers, students of management, or would-be
managers, and those who are just seeking knowledge of the subject who
need to know not how to do things on digital marketing tools but why to
do things. The intent of this book is to teach managers how to reframe
and rethink their organizations so that digital marketing is integral to
their operations. A 2013 study from the Online Marketing Institute said
that only 8 percent of brands think that their team is up to speed in
digital marketing and strong across all channels.2 In 2019, Econsultancy
published a report with similar results. In this report, only 8 percent of
the 500 CMOs interviewed said that there was not a skill gap in market-
ing.3 In my classes, I supplement this material with practical, hands-on
applications, such as the Google Ad Grants Online Marketing Challenge
(OMC) or an Internet marketing simulation.
This book will also help pinpoint the people skills necessary to build
the digital marketing organization and also help identify and classify the
important elements of digital marketing in the organization. Although
there are some leading-edge programs in this area, marketing academics
have been slow to make the transition to digital marketing. A recent study
by Langan, Cowley, and Nguyen found that only one in ten university
undergraduate marketing programs accredited by Association to Advance
Collegiate Schools of Business (AACSB) requires a digital marketing
course in the core marketing curriculum.4 Therefore, this book plays an

2
Gesenhues. 2013. “Study: Only 8% of Brand Believe Their Marketing Team Is Strong
across All Digital Marketing Channels,” Marketing Land. https://marketingland
.com/study-only-8-of-companies-believe-marketing-team-is-strong-across-all-areas-
of-digital-marketing-64404, (accessed November 13, 2019).
3
Marketing Charts. February 27, 2019. “What Skills Would Marketers Stake Their Fu-
ture on?” https://www.marketingcharts.com/business-of-marketing/staffing-107533,
(accessed October 10, 2019).
4
R. Langan, S. Cowley, and C. Nguyen. 2019. “The State of Digital Marketing in
Academia: An Examination of Marketing Curriculum’s Response to Digital Disrup-
tion,” Journal of Marketing Education 41, no. 1, pp. 32-46.
 INTRODUCTION
xv

important role in terms of its use in upper-level master’s classes and as a

resource for managers.
This book is relevant because what constitutes digital marketing is
constantly evolving, with skills in data analysis and management, content
marketing and storytelling, and the user experience becoming core skills
to accompany competencies in search, e-mail, and social media. Increas-
ingly, flexibility and openness to new ideas are just as critical as skill sets in
managing a digital marketing team. It is more likely than ever that skills
and specializations will have to be developed in-house as well as hired
from without, because of the shortage of those with knowledge in this
field. Managers need to know what skills and capabilities to develop in
their employees, not necessarily have the skills themselves.
To summarize, the book’s target is anyone who needs to understand
how to incorporate digital marketing into their organization at a strategic
level. It is hoped the book will be as useful to the small business owner as
to the CMO of a large company. Many of those reading this book devel-
oped and succeeded in their careers in an era without Facebook, Twitter,
e-mail, and paid search; many are “digital natives” but use the Internet
for their own education and enjoyment and not for marketing purposes.
The book can be read on its own or to upgrade your skills or as part of an
undergraduate or master’s level course in the subject.
The book will focus on current technology usage but not the details,
which change on a daily, if not hourly, basis. This book is meant, as the
title says, to be used as a guideline for the management of digital market-
ing processes. I hope that, at the end, readers will have a better idea of
why these principles and ideas are important and how to implement them
in the organization. So, let’s get started. . .
 PART I

Foundations
 CHAPTER 1

How Did We Get Here?

Definitions and Background

As you read this book, you will see how to incorporate digital strategy into
firm strategy. These key elements of strategy are core competencies, how
to produce value, and basic positioning theory. The book then explains
to managers how marketing strategy and objectives can be incorporated
into the design of a web and mobile site and then through to what I
call the four foundations of the digital marketing delivery mix (DMDM)
(see Figure 1.1)—search, social, e-mail, and web/mobile.1 The impor-
tance of quality customer data as the foundation for these strategies is
also explored here with managerial implications. Finally, guidelines for
managing the successful implementation of these marketing technologies
in the organization are presented and covered.
It is worth noting how we arrived at the point where digital marketing is
now one of the proper occupations of the executive suite. Today marketers
are concerned not only about digital marketing but increasingly about the
analytics to gauge their effectiveness. However, many companies struggle to
staff their organizations with the basic skills needed in critical areas such as
content marketing and video production.2 Although marketing has always
been an important and sometimes overlooked occupation in a corporation,
digital marketing screams for the attention of not only the chief market-
ing officer but the chief executive officer as well. A report by ExactTarget

1
D. Zahay-Blatz. 2013. “Four Foundations of the Digital Marketing Mix,” New In-
teractive Marketing Updates. http://niuinteractivemarketing.blogspot.com/2014/02/
four-foundations-of-digital-marketing.html, (accessed October 13, 2019).
2
Tom Treanor. 2019. Digital Marketing 2019: 10 Top Skills Your Digital M­ arketing
Team Needs. https://blog.treasuredata.com/blog/2019/01/03/the-top-10-digital-­
marketing-skills-your-team-needs-in-2019, (accessed April 20, 2020).
4 DIGITAL MARKETING MANAGEMENT, SECOND EDITION

Figure 1.1  The four foundations of digital marketing delivery

mix integrated with marketing strategies and objectives

indicated that marketing priorities have shifted to measurement and data,

branding, and online conversion rates.3 With the exception of branding,
most of these terms were not even considered a part of traditional mar-
keting a few years ago. Now, if you can digitize the information, you can
measure it. The increased importance of measurement in marketing has
paralleled the increase in the importance of digital marketing.
Terms used to describe the type of marketing we are talking about in
this book have evolved in usage over time, with digital marketing cur-
rently being the most popular and on an upward trend. When I first
started teaching, I taught in an e-commerce program, which emphasized
selling products over the Internet. As we know, digital marketing is so

3
ExactTarget. 2014. “2014 State of Marketing,” White Paper. https://brandcdn
.­exacttarget.com/sites/exacttarget/files/2014stateofmarketing.pdf, (accessed January 20,
2020).
 How Did We Get Here? Definitions and Background 5

much more than selling products; it has come to encompass engagement

with our customers across many types of electronic channels. With the
use of Google Trends, a wonderful tool for competitive and other types
of research we will discuss later in this book, we can see that the term
digital marketing has experienced rapid growth and has outpaced the use
of other terms to describe what we do as marketers in the modern age.
Speaking of terminology, digital marketing, as a practice, has its basis
in direct marketing, which required a customer database to track and
measure customer response. This marketing database later became crucial
in the development of the concept of interactive marketing. Interactive
marketing was a term that originated in the mid-1990s to capture and
describe the fact that marketing was now a two-way conversation4 and
not just the one-way communication of the mass media world. Interac-
tive marketing also required the use of a database that was developed by
direct marketers, most importantly to address the individual customer in
a relevant fashion. Along the way, Internet marketing came to mean using
the Internet to facilitate the marketing process (see Figure 1.2).
The goal of interactive marketing as originally theorized by Dr. John
Deighton was that marketing would become a “conversation.” What
Deighton and others did not foresee was the rapid expansion of the mar-
keting conversation and the shift in control of the process from the mar-
keter to the customer.5 In fact, digital marketing can be defined as using
any digital technology to facilitate the marketing process, with the end
goal of facilitating customer interaction and engagement.6,7
Taking all these trends into account, Figure 1.2 shows how the term
digital marketing has evolved from a process of response measurement to
conversation to engagement. Engagement will be discussed in a later chapter,

4
J.A. Deighton. November–December, 1996. “The Future of Interactive Marketing,”
Harvard Business Review 74, no. 6, pp. 151-60.
5
A. Deighton and L. Kornfeld. Winter, 2009. “Interactivity’s Unanticipated Con-
sequences for Markets and Marketing,” Journal of Interactive Marketing 23, no. 1,
pp. 2-12.
6
Gartner. 2014. “It Glossary,” Gartner. https://blogs.gartner.com/it-glossary/digital-
marketing-2/, (accessed October 13, 2019).
7
Technopedia. 2014. “Digital Marketing.” https://www.techopedia.com/definition/
27110/digital-marketing, (accessed October 13, 2019).
6 DIGITAL MARKETING MANAGEMENT, SECOND EDITION

Figure 1.2  The evolution of marketing terminology from direct

communication to engagement

but in short it means that customers are involved with the brand and creat-
ing and developing their own content around the brand. What will happen
beyond engagement and how it will be named is anyone’s guess. However, if
I had to guess, I would predict a continued trend toward less control by the
marketer and more control by the customer, aided and abetted by marketing
technology that will be enabled to make choices for the marketer.
Digital marketing includes the ability to interactively communicate
with customers through electronic channels, such as the web, e-mail,
smart devices such as phones and tablets, and mobile applications. The
four most recognized techniques of digital marketing are social, mobile,
analytics, and e-commerce.8

8
Gartner. 2014. “Key Findings from U.S. Digital Marketing Spending Survey, 2013,”­
Gartner for Marketing. http://www.gartner.com/technology/research/digital-marketing/
digital-marketing-spend-report.jsp, (accessed October 13, 2019).
 How Did We Get Here? Definitions and Background 7

These digital technologies that form digital marketing can include In-
ternet tools such as search engine marketing and social media, customer
databases, and the like. Even print processes, which now rely on digital
technology, can be included broadly in this definition. As noted above,
digital marketing also includes measurement and the process of customer
engagement. An interesting question is, “Is all marketing digital market-
ing now?” Certainly, digital marketing is getting the attention of CMOs,
although most of them do not think their teams are digitally ready or
have the necessary skills.
For our purposes, it is useful to take a step back and realize that
there have been several underlying trends that have made the develop-
ment of digital marketing management a proper occupation of the
executive suite. Without the convergence of these trends, shown in
Figure 1.3, we would likely be looking at marketing as a different
type of occupation and perhaps less relevant to the executive suite.
These trends are the revolution in technology, the revolution in mar-
keting thought, and the revolutions in communication and distribu-
tion channels.

Figure 1.3  Revolutionary trends contributing to digital marketing

8 DIGITAL MARKETING MANAGEMENT, SECOND EDITION

The Revolution in Technology

Several technologies together have facilitated the rise of digital marketing.
Technologies that will be addressed here are the Internet, browsers, wide-
spread computing, and database technology. First, the commercialization
of the Internet made the technology widely available to most consumers.
The Internet was developed for government use in the early 1970s by the
Defense Advanced Research Projects Agency (DARPA) and used primar-
ily for the transfer of large data files and the facilitation of communica-
tion among scientific researchers. In those days, most individuals did not
have access to this vast network of information. It is useful to think of the
Internet as exactly what the name implies, a network which is intercon-
nected through technology. According to network theory, many relation-
ships can be visualized by their relationship as nodes on a network. These
nodes are represented usually as circles and the interrelationships between
the circles as lines.
Almost anything can be represented by the nodes on a network. Much
of social network theory represents individuals on the network as nodes
and the lines represent the connections between individuals. In telecom-
munications theory, the nodes represent areas on the network where in-
formation is processed before moving on to another “node.” Nodes tell us
how our cell phones get information from one point to another as well
as how information is communicated from one person to another. In
Figure 1.4, Sarah is “centric” in that she knows everyone but not everyone
in the network knows each other. The dark lines represent strong “ties” or
relationships and the lighter lines represent weaker relationships.
Networking theory is a powerful tool for the representation of infor-
mation and how it travels. Networking theory also helps to explain the
phenomenal growth of the Internet as a marketing tool. The browser is
a way of navigating the nodes of the Internet and is another technologi-
cal innovation that spurred the growth of digital marketing. When the
IT people at the university where I was teaching in 1995 installed one
of the first browsers on my computer, I said to myself, “This changes
everything.” Because I am a business professor, what I meant when I said
that everything would change was that “commerce” would change. And
everything did change and is changing, more rapidly every day. What I
 How Did We Get Here? Definitions and Background 9

Figure 1.4  One way of representing network relations, nodes,

and ties

recognized when the browser was put on top of a vast network connect-
ing businesses and individuals was that all of a sudden it became easier
to navigate the Internet. In fact, Internet technology was adopted more
quickly than any previous technology, in part because of the effects of
networks and how they facilitate growth and information sharing. It has
taken less than 20 years for the Internet to reach 40 percent of the world’s
population, perhaps the most rapid growth of any technology except the
mobile phone, which is also related to Internet usage. Currently, nearly
60 percent of the world’s population has access to and uses the Internet
for various applications. Penetration rates range from almost 90 percent
in North America to nearly 40 percent in Africa. 9

9
Internet World Stats. 2019. “Internet Growth Statistics.” https://www.internetworldstats
.com/emarketing.htm, (accessed January 7, 2020).
10 DIGITAL MARKETING MANAGEMENT, SECOND EDITION

Browser technology, software programs that allow the user to navi-

gate the web, also facilitated the growth of the Internet. The first browser
was called Mosaic and was developed by programmers at the University
of ­Illinois. Other browsers rapidly followed, with the most popular today
being Microsoft’s Bing, Google Chrome (largest market share), and Mozilla
Firefox. Of these three, only Mozilla remains as a not-for-profit company.
The other firms recognized the vast commercial potential of the Internet.
In the early days of web browsers, the Internet was the domain of the
young, with the typical user being the 20-something male who spent the
vast majority of his time “surfing” the net. Interfaces were simple. Online
chat forums are a good example of a simpler form of communication.
Forums and discussion boards are a way for individuals interested in a
particular topic to interact on the Internet and keep a record of their
discussions. This type of interface is used to this day, but other means of
communicating on the Internet have become more prevalent. The pro-
liferation of devices with which to access the Internet also facilitated its
growth. The availability of desktop and laptop computers and now mo-
bile devices, thin clients, and notebooks means that the Internet is every-
where and literally at everyone’s fingertips. Of course, the Internet would
be nothing without the data behind it. Database technology is used to
capture Internet transactions, place advertisements, and analyze browsing
history, all leading to a more satisfactory web experience targeted to the
needs of the individual customer.
The growth of the Internet would not have been possible without
data processing and analysis. Just look at what happened in the booksell-
ing industry. Amazon.com was developed as an online firm and had the
ability, through a process known as “collaborative filtering” of the orders
its customers made from the beginning, to make recommendations on-
line that were based on customer preferences. Offline booksellers such as
Barnes and Noble, and the now defunct Borders, struggled to differenti-
ate themselves in the marketplace and many ultimately failed. Amazon
started with an excellent database management system and did not have
to play “catch up” to discover its customers’ preferences and identities
and now controls both the bookselling and publishing industries. Barnes
and Noble developed its loyalty program to catch up and start collecting
customer information. Perhaps the program has slowed the decline in
 How Did We Get Here? Definitions and Background 11

sales since 2012, even if it has not reversed the downward trend. Barnes
and Noble’s loyalty program has aided with customer retention and club
members spend more than the average customer.10 The loyalty program
data also provides valuable customer insights.

The Revolution in Marketing Thought

While technology was changing, so was the way marketers were thinking
about marketing (see Figure 1.5). There has been a clear evolution from
mass communication to two-way communication to interactive forms
of communication. While changes were happening that allowed us to
communicate directly with customers more easily, marketers were begin-
ning to be frustrated with the traditional mass marketing approach. Mass
marketing started in the 1900s and mass advertising developed with the
advent of another technology, the television, in the 1950s. In mass adver-
tising, while we might do some rough marketing segmentation (breaking
customers into groups with similar characteristics) in general, the message
is the same for all consumers. In direct or two-way communication, we
acknowledge that customers have true differences and customize offers to

Figure 1.5  Progression of communications in marketing

and advertising

10
B. Unglesbee. 2019. “Can a New Owner Rewrite the Story of Barnes & Noble?”
https://www.retaildive.com/news/can-a-new-owner-re-write-the-story-of-barnes-no-
ble/557310/, (accessed January 15, 2020).
12 DIGITAL MARKETING MANAGEMENT, SECOND EDITION

them in such a way that demonstrates we understand that uniqueness. For

example, a catalog marketer might send different versions of catalogs to
different targeted segments. Direct marketing therefore formed the roots
of Internet marketing because of the direct marketer’s use of customer
databases to create a two-way form of interaction with the customer.
In true interactive marketing, we take into account what the customer
has said, remember what was said, and demonstrate in our next offer to
the customer that we remember what was said. We eagerly anticipate the
response from the customer so we can tailor our next communication.
The definition of marketing has changed from a marketplace based on
a one-time exchange to a conversation that is expected to be ongoing
and evolving. Rogers and Peppers popularized this notion of interactive
marketing, calling it one-to-one marketing in their original book.11 The
two hypothesized a future which only later became technically possible,
in which customer communications would be different for each customer
based on their preferences. For this type of communication to occur, we
needed the technological developments of the Internet, browsers, data-
bases, and pervasive computing discussed earlier in this chapter.
Marketers were then able to respond to customers in a way that dem-
onstrated that they had taken into account the customers’ past history
and expressed preferences. To do so they used marketing concepts such
as personalization and customization. Personalization means that we use
information about the customer such as name, address, and other prefer-
ences in our communications with the customer. Customization means
that a product is actually built for that customer based on their preferenc-
es.12 True customization is quite difficult to master. Think of a custom-
ized suit which requires measuring, crafting, and fitting to the individual.
Mass customization, on the other hand, is quite easily handled by the
technology used to facilitate the Internet. Mass customization allows the
customer to select from certain preprogrammed or preset options to de-
velop a product suited to their needs. An example of mass customization

11
D. Peppers and M. Rogers. 1993. The One to One Future (New York, NY: Doubleday).
12
D.L. Zahay and A. Griffin. 2003. “Information Antecedents and Consequences of
Personalization and Customization in Business-to-Business Service Markets.” Journal
of Database Marketing 10, no. 3, pp. 255-271-326.
 How Did We Get Here? Definitions and Background 13

would be Nike.com, which allows the customer to create a shoe based

on certain parameters, which is unique to them. Another example is
modelmyoutfit.com, which allows the retail customer to see what clothes
would look like on their body type.
Both personalization and customization are firm capabilities that are
related to the development of the database within the corporation. The
database allows the firm to develop the understanding of the customer
to engage in these activities. This view of the customer is often called the
360-degree view. In other words, the firm knows about the customer, the
name, the transactions history, and other supplemental or enhanced data.
This data is critical to developing a marketing program that is “one to
one” or targeted for the individual customer. Data means that the focus
shifts from the process of marketing management from the firms’ point
of view to a “customer-centric” focus. A marketing program that is essen-
tially customer-centric is focused on the needs, wants, and desires of the
customer and not those of the company. This customer centricity leads to
customer engagement and interaction of digital marketing, making the
next step of marketing communications collaboration.
Similarly, whereas marketing efforts earlier sought to attract, acquire,
and retain customers, we now seek a fourth objective—to engage cus-
tomers once we have them (see Figure 1.6). We will speak more about
engagement later in the book, but for our purposes now, engagement
means creating customer relationships where there is a true give and take
and where the customer is a partner and participant in marketing and
product efforts. An example would be the difference between the old-style
airline loyalty programs where users collected points and the innovative
programs such as those at KLM (Royal Dutch Airlines), which uses social
media engagement for everything from customer information dissemina-
tion to the decision to open new markets.13
As we can see, at the same time that technology was developing that
enabled the collection of data about the customer and its rapid communi-
cation over the Internet, marketing thought was developing to the point

13
Van der zee interviewed by Kane. 2014. “Communication with Customers through
Social Media Instead of by Phone is Becoming Standard at Global Airline KLM.”
MIT Sloan Management Review.
14 DIGITAL MARKETING MANAGEMENT, SECOND EDITION

Figure 1.6  Updated customer relationship management

objectives

where marketers wanted to communicate with the customer in ways that

went beyond mass communications and even direct communications.

The Revolution in Communications/Distribution

It is unlikely that the evolution of digital marketing would have been

possible without the development of communications and distribution
channels. Technology meant that digital communications were increas-
ingly possible, creating new methods of communication with the cus-
tomer. Evolving from traditional forms of direct communication with
the customer (sales, phone, fax, direct mail), e-mail was the first digital
channel to emerge in the 1990s. This channel allowed marketers to com-
municate with the customer directly but also to more quickly respond
to information gained from the customer. E-mail marketing tools also
provided easy access to data about response rates and the effectiveness of
varying marketing offers.
Since that time, there has been a proliferation of digital channels of
communication, including social networks, text messages, RSS feeds, and
so on. Communications have proliferated to the point where we can com-
municate with the customer at every point in the customer lifecycle and
decision-making process in the manner in which the customer wishes
to be communicated, which is true one-to-one marketing. In this time
 How Did We Get Here? Definitions and Background 15

Figure 1.7  The evolution of direct media

period, a media evolution, or more accurately a media revolution, has oc-

curred where the types of media available to the marketer have exploded.
Figure 1.7 shows how much the world of direct marketing communi-
cations has changed in just over a generation, with implied challenges
for marketers. From a few simple channels, we now have more ways to
reach the customer than ever before, including search and social media,
which can in some sense be seen as direct communication. Indirect media
has evolved in an even more fragmented fashion, from simple TV, radio,
print, and display advertising in the 1990s to a list that includes the fol-
lowing fragmented media channels:

• TV
• Radio
• Print
• Display advertising, including behavioral
• Websites
• Search, paid, and organic
• Online display
• Landing pages/Microsites
• Online video/Picture sites
16 DIGITAL MARKETING MANAGEMENT, SECOND EDITION

• Affiliate marketing
• Webinars
• Blogs
• RSS
• Podcasts
• Wikis
• Social networks
• Mobile web/Apps
• Social media ads
• Virtual worlds
• Widgets
• QR codes/Alternatives

Another key development that facilitated Internet commerce and

the rise of digital marketing management was the rise of distribution
networks in the form of Federal Express, UPS, and other improve-
ments in delivery service and technology. These networks meant that
orders could be delivered quickly enough and door-to-door in such
a manner that customers find ordering on the Internet an attractive
alternative to brick-and-mortar shopping experiences. Without these
changes, Internet shopping experiences would be considerably less
appealing.
All these changes and forces resulting in the rise of digital marketing
have created a situation where customer acquisition and relationship
management and development are a continuous process, and one not
always in the control of the marketing manager. Along each step of the
way as we work to manage the marketing process, we must develop
clear actions for every marketing step. As Figure 1.8 shows, objectives
can be categorized as conducting research, raising awareness, brand-
ing, generating leads, acquiring customers, customer management and
communication, up-selling and cross-selling, retention and loyalty, and,
finally, the identification of customers who can be brand advocates.
Technology plays a role each step of the way but is not the main focus of
the company. As we shall see in Chapter 2, to develop an effective digi-
tal marketing strategy, the firm must first consider how it creates and
delivers value.
 How Did We Get Here? Definitions and Background 17

Figure 1.8  Customer acquisition and relationship management: A

continuous process

What to Do Next after Chapter 1

1. Select a major customer relationship management objective(s): at-

tract, acquire, retain, and engage for your firm or another (Figure 1.6).
2. Develop a list of detailed objectives for that objective and for the
relationship management process (Figure 1.8).
3. Define how about defining website objectives and how they might
align with stated marketing objectives.

Discussion Questions
Discussion 1.1: Discuss the role the Internet plays in the lives of con-
sumers and businesses. Has it changed the way businesses operate in any
significant fashion? Can you give examples of the impact of the Internet
18 DIGITAL MARKETING MANAGEMENT, SECOND EDITION

in either B2C or B2B markets? Give an example of a company that has

significantly changed its business practices because of the Internet.

Discussion 1.2: What do you think the future is for customized prod-
ucts? Think of an example of a product that could reasonably be cus-
tomized and explain why the target customer would find value in the
customization. Find an example of product customization online and
discuss whether or not you think it will be successful.
Discussion 1.3: Are there other types of customer relationship manage-
ment objectives that should be added to Figure 1.8? How relevant is cus-
tomer relationship management (CRM) if the customer is increasingly in
charge of the marketing “conversation”?

Discussion 1.4: How do you think digital marketing will evolve? Will
there be more types of media in the future and what will be the goals of
managing these types of media?

Glossary
Customization:  Making each product uniquely for every customer.
Digital marketing: Using any digital technology to facilitate the market-
ing process, with the end goal of facilitating customer interaction and
engagement.
Interactive marketing: Remembering what the customer tells us so mar-
keting is a conversation.
Internet marketing: Using the Internet to facilitate the marketing
process.
Mass customization: Using a predefined set of product features to allow
customers to develop their own product.
 Index
A/B testing, 38–39, 49, 76, 147 BERT update. See Bidirectional
Above the fold, 36, 76 Encoder Representations
AC Nielsen, 128 from Transformers update
Activision, 103 Bespoke, 103
Acxiom, 93, 128, 130 Bidirectional Encoder Representations
Adobe Analytics, 34 from Transformers (BERT)
Adobe’s Marketing Cloud, 140 update, 53
Advertisements, 94–95 Big Data, 135–136
Agile marketing, 147 Big Data analysis, 111, 127, 136
AI. See Artificial intelligence Bing, 10
AIDA. See Attention, interest, desire, paid search, 47
and action Bounce rate, 72, 77
Airbnb, 24 Branding, and search rankings, 59–60
Alexa.com, 34 Braun, 81
Algorithm, 53 Broad Data, 136
EdgeRank, 88 Broad match, 47
Google Algorithm, 54–55, 57 Browser technology, 10
Hummingbird, 53 Business customer
Panda, 53 external information, 132
Penguin, 53 internal information, 132
Alt tags, 55 Business markets, market
Alt text. See Alt tags segmentation for, 132–133
Always on marketing, 104–107 BuzzSumo, 86
Amazon, 10, 59, 60, 94, 100,
116–117 California Consumer Privacy Act
Analytics (CCPA), 74, 119
data, 137 Call to action, 75, 76
predictive, 137–138 CCPA. See California Consumer
web, 139–141 Privacy Act
Apache Hadoop, 126–127 CDP. See Customer data platform
Artificial intelligence (AI), 145–146 CE. See Customer engagement
Association to Advance Collegiate CEB Marketing Leadership Council.
Schools of Business (AACSB), See Corporate Executive
xiv Board Marketing Leadership
Attention, interest, desire, and action Council
(AIDA), 101–102 CEM. See Customer experience
Attribution modeling, 88, 140 marketing
Automation, in marketing, 145–146 Chaffey, Dave, 148–149
Channel correlation matrix, 107
Banner ads, 92 Children’s Online Privacy Protection
Barnes and Noble, 10–11 Act (COPPA), 119
164 INDEX

Click-through rates (CTRs), 66, 67, Customer data platform (CDP),

72, 77 141–142
Click to open rate (CTOR), 72 Customer engagement (CE)
Clicktale.com, 36 definition of, 84
Cluster analysis, 129 social media marketing and, 84–86
Collaborative filtering, 10 Customer experience marketing
Communications (CEM), 103
in marketing and advertising, Customer lifecycle, 30
progression of, 11–12 Customer relationship management
revolution in, 14–17 (CRM), 13–14, 29
Consumers data quality, vicious circle of,
attitudes toward privacy, 116–117 109–113
external information, 131 definition of, 102
internal information, 129 marketing management versus,
markets, market segmentation for, 99–103
129–130 measurement of, 107–109
Content marketing and social media data quality, importance of, 109
marketing, relationship Customization, 12
between, 80–82 mass, 12–13
Controlling the Assault of Non- true, 12
Solicited Pornography and
Marketing Act (CAN-SPAM), DARPA. See Defense Advanced
73–74 Research Projects Agency
Conversational search, 53 Dashboards, 139, 140
Coolidge, Calvin, 115 Data
COPPA. See Children’s Online analysis, 123–124
Privacy Protection Act analytics, 137
Core competencies, 19–21 quality, vicious circle of, 109–113
Corporate Executive Board (CEB) security, 120–121
Marketing Leadership sharing, 155
Council, 109 silos, 136, 155
Cost per click (CPC), 48 Data-driven organization, organizing,
CPC. See Cost per click 135–137
Crawlers, 54, 58 Database structure, designing, 125
Creative Commons approach, Database technology, 10
120–121 Database Wizard, 126
CRM. See Customer relationship Defense Advanced Research Projects
management Agency (DARPA), 8
Cross-device marketing, 33 Digital advertising landscape, 92–95
Crowdsourcing, 86, 100 Digital marketing, 5
CTOR. See Click to open rate definition of, 69
CTRs. See Click-through rates plan outline, 157–160
Current data, keeping, 155 scope and responsibilities, 150
Customer strategic ideas, 19–26
acquisition and relationship structuring, 148–150
management, 16–17 Digital marketing delivery mix
experience, 39 (DMDM), 3–4
lifecycle management, 29–32 Digital marketing technologies, 22
 INDEX
165

Digital Millennium Copyright Act, Facebook, 24, 47, 50–51, 55, 59, 84,
120 94, 100
Direct media, evolution of, 15–16 Facebook Insights, 87
Display ads, and paid search, 59 Fair Information Practices principles,
Distribution, revolution in, 14–17 118
DMDM. See Digital marketing Federal Express, 16
delivery mix Federal Trade Commission (FTC),
Doritos, 83 74, 118
Double Click, 94 Firm objectives, prioritization for,
Dreamfield’s Pasta, 64, 65 33–34
Duopoly, 94 Flickr, 84
Former customers, 31
E-commerce marketing, 23 Forrester Research, 85–86
E-mail marketing, 14, 63–78 Fortune 500, 100
as branding tool, 67–68 FTC. See Federal Trade Commission
effective design and offers, 75–76
fitting to digital marketing, 63–64 Gartner Group, 68, 69, 108, 111
metrics, 76–77 GDPR. See General Data Protection
as process, 72–75 Rules
as retention tool, 68–72 General Data Protection Rules
unsung hero of digital age, 65–67 (GDPR), 118
E-mail service provider (ESP), 74, 77 Golden triangle, 36–37, 76
Earned media, 83–84 Google, 46, 47, 59, 84, 88–89, 94,
EAT factor. See Expertise, 118
authoritativeness, and BERT update, 53
trustworthiness factor organic search, 49, 55
EdgeRank algorithm, 88 paid search, 48–49, 50
Eloqua, 103 Webmaster tools, 89
eMarketer, 155 Google Ad Grants Online Marketing
Epsilon, 93 Challenge (OMC), xiv
ESP. See E-mail service provider Google Ads, 46
EU. See European Union ad groups, 49
European Union (EU) match types for selection in, 48
approach to data privacy, paid search, 47
117–119 Google Alerts, 87
General Data Protection rules, 74 Google Algorithm, 54–55, 57
Safe Harbor provisions, 117–118 Google Analytics, 34, 137, 139–141
ExactTarget, 4, 65 Google Business Profile, 55
ExactTarget Marketing Cloud Google Chrome, 10
Services, 74 Google Glasses, 89
Excluded match. See Negative match Google Trends, 5, 23–24, 46, 86
Experian, 93, 128, 130 Gramm-Leach-Bliley Act, 119
Expertise, authoritativeness, and
trustworthiness (EAT) factor, Health Insurance Portability &
53–54 Accountability Act (HIPPA),
External data, 124, 127 119
versus internal data, 128 Hierarchical databases, 125
Eyeball tracking studies, 36–37 Hilton Hotels, 88
166 INDEX

Hilton Worldwide, 124 Keyword Planner, 46

HIPPA. See Health Insurance Portability Keywordtool.io, 46
& Accountability Act KLM (Royal Dutch Airlines), 13
Hootsuite™, 86 KPIs. See Key performance indicators
House of Quality for Multichannel
Marketing, 105, 154 Laissez-faire capitalism, 115
HubSpot, 86, 141 Landing page, 58
Hummingbird algorithm, 53 Lead nurturing process, 32
Learning
IAB. See Internet Advertising Bureau organization theory, 19
IBM, 85 role in creating competitive
Analytics solutions, 140 advantage, 20
Digital Analytics, 34 Legacy systems, 136
Identify, differentiate, interact and LinkedIn, 85
customize (IDIC), 102 Logistic regression, 138
Identify, differentiate, interact and Luma Partners, 93
customize/personalize
(IDICP), 102 M&M, 90
IDIC. See Identify, differentiate, Mail Chimp, 74
interact and customize Market(ing)
IDICP. See Identify, differentiate, actions, 101
interact and customize/ agile, 147
personalize always on, 104–107
Indeed.com, 25 automation in, 145–146
Index Server, 54 cross-device, 33
Informational websites, 27 digital. See Digital marketing
Inimitable resources, 19 e-commerce, 23
Instagram, 84, 85 E-mail, 14, 63–78
Intellectual property issues, 120–121 evolution of, 5–7
Interactive marketing, 5, 12 interactive, 5, 12
Internal data, 124, 127 Internet, 5, 8, 10–11
versus external data, 128 mix, 101
International Standard Industrial mobile, 79–95
Classification System, 134 multichannel (omni-channel),
Internet Advertising Bureau (IAB), 104–107
92, 119 orientation, 100
Internet marketing, 5, 8, 10–11 permission, 69
simulation, xiv persona, 34–36, 75, 85
Internet of Things, 89 revolution in, 11–17
Internet Service Provider (ISP), 74, search engine, 45–61
76, 120 social media, 79–95
iPhone, 90 technology stack, 146–148
ISP. See Internet Service Provider Market segmentation, 35, 129–130
based on actions taken, 130–137
Jobs, Steve, 28 for business markets, 132–133
Marketing Charts, 155
Key performance indicators (KPIs), Mason, Charlotte, 29
148, 155 Mass customization, 12–13
Keyhole, 86 Match codes, 135
 INDEX
167

Mckinsey & Company, 109 Online-analytical processing (OLAP),

The Media company (TMC), 112 126
Merge/purge, 135 Online Marketing Institute, xiv
Microsite, 58, 64 Online-transaction processing
Microsoft Access, 126 (OLTP), 125
Middle management, role in CRM Open rate, 77
implementation, 110–113 Operations planning, 20
Middle managers, 155 Organic search, 53–56
MINI Getaway, 90 and paid search, synergies
Mobile advertising, 91–92 between, 58
Mobile analytics, 141 rankings, 56
Mobile marketing and SoLoMo, Owned media, 83–84
combining, 89–91
Modeled data, 124, 127, 128 Paid media, 83–84
modelmyoutfit.com, 13 Paid search, 46–48
Monster Spray, 56, 57 campaign, organizing, 50
Mosaic, 10 display ads and, 59
Moz Keyword Explorer, 46 and organic search, synergies
Mozilla Firefox, 10 between, 58
Multichannel marketing, 104–107 Panda algorithm, 53
Pay per click (PPC), 46–47
NAFTA. See North American Free Peer-to-Peer (P2P) sharing system,
Trade Agreement 120
NAICS code. See North American Penguin algorithm, 53
Industry Classification System Permission marketing, 69
code layers of, 71
Napster, 120 Persona marketing, 34–36,
Natural search. See Organic search 75, 85
Negative match, 47–48 Personalization, 12
Networking theory, 8–9 Personally identifiable information
New customers, 31 (PII), 116, 119, 120
Nike.com, 12–13 Pervasive computing, 91
Nordstrom, 19 Phrase match, 47–48
North American Free Trade PII. See Personally identifiable
Agreement (NAFTA), 134 information
North American Industry Pinterest, 84
Classification System Positioning, 23, 56
(NAICS) code, 35, exercise, 57
134–135 statement, 24, 25
PPC. See Pay per click
Office Depot®, 36 Predictive analytics, 137–138
Office Max®, 36 Privacy
OLAP. See Online-analytical consumer attitudes toward,
processing 116–117
Old Spice, 83 right to, 115–116
OLTP. See Online-transaction Profiling, 128
processing Programmatic advertising, 145
Omni-channel marketing. See Prospects, 30–31, 127, 130
Multichannel marketing Prototypes, 38
168 INDEX

Query, 54, 58 types of, 46

Search engine optimization (SEO),
Rack Room Shoes, 70 53–56
Radian6, 81 Search Engine Results Page (SERP),
Real-time advertising, 104 47, 54, 60
Real-time bidding (RTB), 94 Search rankings, 55, 56
Recency/frequency/monetary (RFM), branding and, 59–60
128, 138 SEM. See Search engine marketing
Red Bull, 81 Semantic search, 53, 57
Reddit, 84 SEO. See Search engine optimization
Relational databases, 125 SERP. See Search Engine Results Page
building, 125–126 Share of wallet, 108
Hadoop, 126–127 Shared media, 83–84
online-analytical processing, 126 Shopkick, 83
Relationship matrix, 107 SHU. See Super heavy user
Responders, 31 SIC coding system. See Standard
Responsive web design, 33, 91 Industrial Classification
Retained or repeat customers, 30 coding system
Return on investment (ROI), 108 Site content, 36–38
Revolution Site maps, 38
in communications/distribution, Smart Watches, 89
14–17 Smith, Adam, 115
in marketing, 11–17 Social media marketing, 79–95
in technology, 8–11 and customer engagement, 84–86
RFM. See Recency/frequency/ definition of, 79
monetary digital advertising landscape, 92–95
Right keywords, choosing, 56–58 measuring, 86–89
Right to privacy, 115–116 mobile advertising, 91–92
Roberts, MaryLou, 118 monitoring, 86–89
Robots, 54 planning, 86–89
Roe v. Wade, 115 relationship with content
ROI. See Return on investment marketing, 80–82
RTB. See Real-time bidding successful campaigns, 83–84
various forms, 79–80
Safe Harbor provisions (European Social media networking platforms,
Union), 117–118 84–85
SAP, 103 SoLoMo and mobile marketing,
Screwfix, 124 combining, 89–91
Search Engine Land, 155 Spam, 69
Search engine marketing (SEM), 45–61 Spiders, 54, 55, 57–58
branding and search rankings, 59–60 Sprout Social, 86
display ads and paid search, 59 Standard Industrial Classification
organic search, 53–56 (SIC) coding system, 35,
paid search, 47–48 133–134
phases of, 49 Stickiness, 28
process, 48–52 Stockholm, 90
right keywords, choosing, 56–58 Storytelling, 80–81
synergies between paid and organic SumAll, 86
search, 58 Sungard’s Zombie Apocalypse, 83
 INDEX
169

Super heavy user (SHU), 56 Web 1.0, 28–29

Supply chain management, 20 Web 2.0, 29
Web 3.0, 29
“T” shaped digital marketer, 146, 147 Web analytics, 139–141
Tag management, 140 Web Content Management
Target market, 34–36 System, 38
Technology, revolution in, 8–11 Web/mobile design, 154
Tesco, 108 Website design, 27–40
Threadless.com, 86 customer lifecycle management,
360-degree view, 13, 103, 136, 141 29–32
TikTok, 85 evolution of, 28–29
TMC. See The Media company firm objectives, prioritization for,
Toyota, e-mail marketing campaign, 33–34
64, 65 future challenges to, 39–40
Transactional databases. See responsive, 33
Hierarchical databases site content and design,
Transactional websites, 27 36–38
True customization, 12 targeting and personas, 34–36
Tumblr, 84 usability testing/launch/
Twitter, 84, 85, 87, 94 measurement, 38–39
Website navigation, 37
University of Illinois, 10 Wells Fargo, 103
Unpaid search, 47, 53–56 Westin, Alan, 116
Unsubscribe rate, 77 WhatsApp, 84–85
UPS, 16 Wireframes, 38
Usability testing, 38 WSJ. See Wall Street Journal

Value chain, 20–21 Yahoo!, 47

Visualizations, 139 paid search, 47, 51
Wall Street Journal (WSJ ), 50 Yelp, 85
Walmart, 21, 60, 100 YouTube, 84, 94
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