DIGITAL

MARKETING
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 Eighth Edition

DIGITAL
MARKETING
Dave Chaffey
Fiona Ellis-Chadwick

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ISBN: 978-1-292-40096-9 (print)

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978-1-292-40100-3 (ePub)

British Library Cataloguing-in-Publication Data

A catalogue record for the print edition is available from the British Library
Library of Congress Cataloging-in-Publication Data
Names: Chaffey, Dave, 1963- author. | Chadwick, Fiona, author.
Title: Strategy, implementation and practice / Dave Chaffey, Fiona Ellis
Chadwick.
Description: Eighth Edition. | Hoboken, NJ : Pearson, [2022] | Includes
bibliographical references and index. | Summary: “Digital marketing has
transformed how businesses and other organisations communicate with
their audiences. Consumers now have access to a much wider choice of
entertainment, products, services and prices from different suppliers
and a more convenient way to select and purchase items. Organisations
have the opportunity to expand into new markets, offer new services,
interact with audiences in new ways and compete on a more equal footing
with larger businesses. Marketers working within these organisations
have the opportunity to develop new skills and to integrate these new
tools to improve the competitiveness of the company”-- Provided by
publisher.
Identifiers: LCCN 2021049493 (print) | LCCN 2021049494 (ebook) | ISBN
9781292400969 (Paperback) | ISBN 9781292400990 (eBook) | ISBN
9781292401003 (ePub)
Subjects: LCSH: Internet marketing. | Strategic planning.
Classification: LCC HF5415.1265 .C455 2022 (print) | LCC HF5415.1265
(ebook) | DDC 658.8/72--dc23/eng/20211207
LC record available at https://lccn.loc.gov/2021049493
LC ebook record available at https://lccn.loc.gov/2021049494

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Cover design: Kelly Miller Cover image: molotovcoketail/DigitalVision Vectors/Getty Images

Print edition typeset in 10/12 pts and Sabon MT Pro by Straive Print edition printed in Slovakia by Neografia
NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT EDITION
Brief contents

Preface xiii
About the authors xxiv
Acknowledgements xxvi

Part 1 Digital marketing fundamentals 2

1 Introducing digital marketing 4

2 Online marketplace analysis: micro-environment 45
3 The digital macro-environment 92

Part 2 Digital marketing strategy development 134

4 Digital marketing strategy 136

5 Digital branding and the marketing mix 189
6 Data-driven relationship marketing using digital platforms 233

Part 3 Digital marketing: implementation and practice 282

7 Delivering the digital customer experience 284

8 Campaign planning for digital media 347
9 Marketing communications using digital media channels 393
10 Evaluation and improvement of digital channel performance 461

Glossary 494
Index 523
Publisher’s Acknowledgements 531
Contents

Preface xiii Case study 1 Boo hoo: learning from Boo.com –

About the authors xxiv the largest European dot.com failure and the
Acknowledgements xxvi success of Boohoo.com 37
Summary 42
Exercises 42
Part 1 Self-assessment exercises 42
Digital marketing Exam and discussion questions 43
fundamentals 2 References 43
Weblinks 44

1 Introducing digital marketing 4 2 Online marketplace analysis:

Learning objectives and topics 4 micro-environment 45
Introduction: how has digital marketing Learning objectives and topics 45
transformed marketing? 5 Introduction to online marketplace analysis 46
How will this text help me? 5 Customer journeys and the online marketplace 46
What is digital marketing? 5 Situation analysis for digital marketing 47
Paid, owned and earned media 6 The digital marketing environment 48
Context – the 7Ds of digital marketing 8 Digital marketing insight 2.1
Digital marketing goals and strategy 9 Resources for analysing the online marketplace 50
Goals of digital marketing 9 Customers: understanding how they interact
Direct-to-consumer communications and with digital markets 52
e-commerce 12 Digital marketing insight 2.2
Key challenges of digital communications 14 From share of search to share of searches –
Digital marketing insight 1.1 evaluating search marketing effectiveness 55
Social commerce – how much do social Customer analysis to understand the digital
networks influence purchase? 14 consumer 56
Introduction to digital marketing strategy 15 Demand analysis and conversion marketing 58
Key features of digital marketing strategy 15 Implications for marketing planning:
Business and revenue models 16 conversion models 58
Different forms of functionality of digital presence 16 Customer choice and digital influence 60
Challenges in developing and managing digital Customer characteristics 62
marketing strategy 17 Social media and emotions 65
A strategic framework for developing a digital Personas 66
marketing strategy 18 The buying process 67
Digital marketing audiences and buyer behaviour 21 Competitor analysis 70
Benefits of digital media 22 The shape and nature of online competitive markets 71
Digital devices and digital platforms 27 Competitor analysis and benchmarking techniques 73
Digital platforms 28 Suppliers, publishers, intermediaries and
Digital media 28 influencers 76
Introduction to digital marketing communications 28 Publishers 76
Key communications concepts for digital marketing 31 Intermediaries 77
Digital data 34 New channel structures 77
Digital marketing technology 35 Digital business models 79
viii Contents

Digital revenue models 80 Exercises 130

Digital publisher and intermediary revenue models 81 Self-assessment exercises 130
Forecasting revenue for an online business 82 Exam and discussion questions 130
Case study 2 Creating the beauty that moves References 130
the world 84 Weblinks 133
Summary 87
Exercises 87
Self-assessment exercises 87
Part 2
Exam and discussion questions 88 Digital marketing strategy
References 88 development 134
Weblinks 91

3 The digital macro-environment 92 4 Digital marketing strategy 136

Learning objectives and topics 92 Learning objectives and topics 136
Introduction to macro-environment forces 93 Introduction 137
The rate of environment change 95 What is a digital marketing strategy? 138
Technological forces 96 Digital marketing strategy as a channel marketing
A short introduction to digital technology 96 strategy 138
URL strategy 97 Which digital marketing activities should have focus? 139
Web standards 99 Why are a digital marketing strategy and digital
Selecting a martech stack for a business 99 transformation needed? 141
Cybersecurity, blockchain and digital currencies 101 Digital marketing insight 4.1
Digital marketing insight 3.1 Is a digital marketing strategy needed in the
The main website security risks 102 post-digital world? 142
Emerging technologies 105 Challenges of managing digital marketing 143
Assessing the marketing value of technology How to structure a digital marketing strategy 145
innovation 105 Situation analysis 148
Legal forces 108 Internal audits of digital marketing 148
Legal activities can be considered unethical 108 Customer research 150
1 Data protection and privacy law 108 Digital marketing insight 4.2
Digital marketing insight 3.2 Consumer profiles: segmenting digital audiences 150
Understanding cookies and the cookieless future 112 Resource analysis 152
2 Disability and discrimination law 115 Competitor analysis 153
3 Brand and trademark protection 115 Intermediary analysis 153
4 Intellectual property rights 116 Assessing opportunities and threats 153
5 Contract and distance-selling law 118 Setting goals and objectives for digital
6 Online advertising law 118 marketing 154
Social forces 119 The online revenue contribution 156
Social exclusion 119 Setting SMART objectives 157
Digital minimalism and digital addiction 120 Frameworks for objective setting 158
Digital marketing insight 3.3 Strategy formulation for digital marketing 160
Digital minimalism and digital addiction 120 Decision 1: Market and product development
Economic forces 122 strategies 162
Market growth and employment 122 Decision 2: Business and revenue models
Economic disruption and the COVID-19 pandemic 123 strategies 164
Political forces 124 Decision 3: Target marketing strategy 165
Political action and control 125 Decision 4: Positioning and differentiation strategy
Internet governance 126 (including the marketing mix) 168
Taxation 126 Decision 5: Customer engagement and social
Tax jurisdiction 127 media strategy 171
Case study 3 Social media and the changing face of Decision 6: Multichannel distribution strategy 172
celebrity influencers 127 Digital marketing insight 4.3
Summary 129 Retail digital channels and mixed-mode buying 173
 Contents ix

Decision 7: Multichannel communications strategy 174 People, process and physical evidence in a
Decision 8: Online communications mix and budget 176 digital marketing context 218
Organisational issues of strategy implementation 177 People 219
Assessing different digital initiatives including Process 221
marketing technology 178 Physical evidence 222
The online lifecycle management grid 180 Case study 5 Spotify streaming develops new
Case study 4 ASOS shifts the focus of high-street revenue models 223
retailing to enhance the customer experience 181 Summary 226
Summary 184 Exercises 227
Exercises 185 Self-assessment questions 227
Self-assessment exercises 185 Exam and discussion questions 227
Exam and discussion questions 185 References 227
References 186 Weblinks 232
Weblinks 188
6 Data-driven relationship marketing
5 Digital branding and the using digital platforms 233
marketing mix 189 Learning objectives and topics 233
Learning objectives and topics 189 Introduction 234
Introduction 190 Concepts of data-driven customer relationship
What is the marketing mix? 190 marketing 236
Digital branding 192 Digital marketing insight 6.1
Success factors for online branding: brand The goals of marketing orchestration 238
advocacy 196 The challenge of customer engagement 239
Success factors for online branding: brand Benefits of using marketing automation to
identity 196 support customer engagement 239
Success factors for online branding: brand Customer lifecycle management strategy 241
names for online brands 197 Permission marketing 242
Product in a digital marketing context 198 Profiling leads with lead scoring and lead grading 246
1 Options for varying the core product Defining contact strategies 249
(online) 199 Data-driven marketing techniques 252
2 Options for offering digital products 200 Personalisation and mass customisation 252
3 Options for changing the extended product 201 Applying artificial intelligence and Big Data to
Digital marketing insight 5.1 support data-driven marketing 253
Zoom freemium products 201 Artificial intelligence for marketing 254
4 Conducting research online 202 Using data analysis and targeting techniques to
5 Speed of new product development 203 increase customer loyalty and value 258
6 Speed of new product diffusion 203 Determining what customers value 258
Price in a digital marketing context 205 The relationship between satisfaction and loyalty 259
Digital marketing insight 5.2 Measuring the voice of the customer in digital
Beauty Pie has created a luxury brand at discount media 260
prices 206 Using measures to differentiate customers by
1 Increased price transparency 207 value and engagement 261
2 Price uncertainty 208 Lifetime value modelling 262
3 Innovative pricing approaches 209 Product recommendations and propensity
4 Alternative pricing structure or policies 211 modelling 268
Place, channels and distribution in a digital Using social media to improve customer loyalty
marketing context 211 and advocacy 269
1 Place of purchase 212 What is social media marketing and why is it
2 New channel structures 214 important? 271
3 Channel conflicts 214 What are the main social media platforms? 272
4 Virtual organisations 215 Social media activities requiring management 273
Promotion and social media in a digital Case study 6 Buffer: from idea to paying business
marketing context 216 customers in seven weeks 275
x Contents

Summary 278 Virtual reality and augmented reality 327

Exercises 279 Content design and auditing 329
Self-assessment exercises 279 Managing and testing content 332
Exam and discussion questions 279 Online retail merchandising 333
References 279 Evaluating the impact of service quality on
Weblinks 281 e-loyalty 334
Tangibles 336
Part 3 Reliability and responsiveness 337

Digital marketing: Assurance 337

Empathy 337
implementation and practice 282 Multichannel customer service preferences 338
The relationship between service quality, customer
7 Delivering the digital customer satisfaction and loyalty 338
experience 284 Case study 7 Refining the online customer
experience at i-to-i.com 339
Learning objectives and topics 284
Summary 342
Introduction 285
Exercises 342
Structure of this chapter 285
Self-assessment exercises 342
Creating effective digital experiences 285
Exam and discussion questions 342
Planning website, app design and redesign
References 343
projects 288
Weblinks 346
Who should be involved in a digital experience
project? 291
Prototyping 292 8 Campaign planning for
Digital marketing insight 7.1 digital media 347
Success factors for delivery 293 Learning objectives and topics 347
Agile software development 293 Introduction 348
Initiation of a digital experience project 295 The structure of this chapter 348
Domain name registration 295 The characteristics of digital media 349
Selecting a hosting provider 296 1 From push to pull 350
Website performance optimisation 296 2 Interactive dialogues 351
The availability of the website 298 3 From one-to-many to one-to-some and
Defining site or app requirements 298 one-to-one 351
Business requirements 300 4 From one-to-many to many-to-many
Usability requirements 301 communications 352
Digital accessibility requirements 304 5 From ‘lean-back’ to ‘lean-forward’ 352
Personalisation 305 6 The medium changes the nature of standard
Localisation and cultural customisation 307 marketing communications tools such as
Reviewing competitors’ websites 309 advertising 353
Designing the information architecture 310 7 Increase in communications intermediaries 354
Card sorting 311 8 Integration 354
Blueprints 312 9 Timing of campaign communications has
Wireframes 312 additional ‘always-on’ and real-time marketing
Landing pages 315 components 354
Designing the user experience 316 Digital marketing insight 8.1
Elements of digital experience design 317 #OpenYourWorld shares individual’s views 355
Site navigation schemes 319 Step 1. Goal setting and tracking for interactive
Mobile design requirements and techniques 321 marketing communications 356
A. Responsive web design (RWD) 322 Terminology for measuring digital media 357
B. Adaptive design 323 Examples of digital campaign measures 362
C. Accelerated Mobile Pages (AMP) 323 Campaign response mechanisms 363
D. Progressive web apps (PWAs) 324 Online response mechanism 364
E. Native mobile apps 324 Digital marketing insight 8.2
The Internet of Things 326 What’s in a hashtag – #!? 366
 Contents xi

Step 2. Campaign insight 367 Affiliate marketing 424

Customer insight for digital marketing campaigns 367 Advantages and disadvantages of affiliate marketing 426
Step 3. Segmentation and targeting 368 Best practice in planning and managing affiliate
Step 4. Big idea, offer, message development marketing 427
and creative 372 Online sponsorship 428
Which factors affect campaign effectiveness? 373 Digital display advertising 429
Content marketing 374 What is digital display advertising? 429
Step 5. Budgeting and selecting the digital Advantages and disadvantages of display advertising 431
media mix 377 Best practice in planning and managing display
1 Level of investment in digital media techniques in ad campaigns 434
comparison to offline promotion 377 Digital messaging including email marketing and
2 Selecting the right mix of digital media mobile messaging 437
communications tools 379 What is email marketing? 437
Digital marketing insight 8.3 Opt-in email options for customer acquisition 438
Campaign tracking in Google Analytics 380 Opt-in email options for prospect conversion and
3 Level of investment in digital assets 385 customer retention (house list) 438
Step 6. Integration into overall media schedule Digital marketing insight 9.4
or plan 385 SEAT combines email with display advertising
Key activities in media selection and planning 385 to increase awareness 438
Case study 8 Global Action Plan: campaigning Advantages and disadvantages of email marketing 439
for a better world 388 Best practice in planning and managing email
Summary 390 marketing 440
Exercises 390 Mobile text messaging and mobile push
Self-assessment exercises 390 notifications 442
Exam and discussion questions 390 Social media and viral marketing 443
References 391 Viral marketing 444
Weblinks 392 Advantages and disadvantages of social media
and viral marketing 446
9 Marketing communications using Best practice in planning and managing viral
digital media channels 393 marketing 449
Learning objectives and topics 393 Digital marketing insight 9.5
Introduction 394 Is social media ‘mostly a waste of time’ and an
How is this chapter structured? 394 ‘infantile delusion’? 450
Digital marketing insight 9.1 Offline promotion techniques 450
How balanced is your referrer mix? 396 Advantages and disadvantages of using offline
Search engine marketing 397 communications to support e-commerce 451
What is SEO? 400 Incidental and specific advertising of the online
Advantages and disadvantages of SEO 403 presence 452
Best practice in planning and managing SEO 403 Case study 9 Smart Insights: how content strategy
Digital marketing insight 9.2 fuels inbound marketing to grow an online
Is SEO a zoo of Pandas and Penguins? 405 B2B service 452
Digital marketing insight 9.3 Summary 456
Reviewing the links into a site 410 Exercises 457
Paid search marketing 410 Self-assessment exercises 457
Advantages and disadvantages of paid search Exam and discussion questions 458
marketing 412 References 458
Best practice in planning and managing paid search Weblinks 460
marketing 414
Digital public relations and influencer 10 Evaluation and improvement
relationship management 417 of digital channel performance 461
What is digital or online public relations? 417 Learning objectives and topics 461
Advantages and disadvantages of online Introduction 462
public relations 419 Performance management for digital channels 463
Best practice for online public relations and IRM 419 Creating a performance management process 464
Digital partnerships including affiliate marketing 424 Defining the performance metrics framework 465
xii Contents

Tools and techniques for collecting insight, running Who owns the process? 482
processes and summarising results 469 Who owns the content? 483
Using Google Analytics to evaluate and improve Who owns the format? 483
digital marketing 469 Who owns the technology? 484
How is Google Analytics data recorded? 469 Case study 10 Learning from Amazon’s culture
Applying Google Analytics reports and measures 470 of metrics 485
Digital marketing insight 10.1 Summary 491
Focus on measuring social media marketing 474 Exercises 492
Marketing research using the internet and digital Self-assessment exercises 492
media 478 Exam and discussion questions 492
Questionnaires and surveys 479 References 492
Focus groups 480 Weblinks 493
Mystery shoppers 480
Content management process 480
Glossary 494
How often should content be updated? 481
Index 523
Responsibilities for customer experience and
Publisher’s Acknowledgements 531
site management 482

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Preface

Digital media and technology, an opportunity and a threat

Digital marketing has transformed how businesses and other organisations communicate
with their audiences. Consumers now have access to a much wider choice of entertainment,
products, services and prices from different suppliers and a more convenient way to select and
purchase items. Organisations have the opportunity to expand into new markets, offer new
services, interact with audiences in new ways and compete on a more equal footing with larger
businesses. Marketers working within these organisations have the opportunity to develop
new skills and to integrate these new tools to improve the competitiveness of the company.
In Chapter 1 we introduce the 7Ds of digital marketing to highlight the many factors that
contribute to effective digital marketing. The 7Ds are digital goals and strategy, digital audi-
ences, digital devices, digital platforms, digital media, digital data and digital technology.
These can be used, alongside traditional marketing techniques, to get closer to audiences than
ever before. Throughout the text we emphasise the importance of integrating the 7Ds, such
that digital marketing is not treated in isolation but aligned with marketing and business strat-
egy, while offering opportunities to impact strategy through new revenue and business models.
At the same time, the internet and related digital technology platforms give rise to many
threats to organisations. For example, online companies such as ASOS and Zalando (cloth-
ing); Amazon (retail); Spotify (music) and Booking.com and Expedia (travel) have captured
a significant part of their market and struck fear into the existing players. Many consumers
now regularly use social networks such as Facebook, Instagram, LinkedIn, Snapchat, TikTok
and Twitter as part of their daily lives, with the majority of access via smartphones. Engag-
ing these consumers is an ongoing challenge but, as we will see, companies such as those
above have taken advantage of these opportunities to interact with customers and evaluate
these interactions, and this has helped them develop as worldwide brands.
Throughout this text we highlight the potential of digital data, analytics and insight to
learn more about customers and their interactions, and customise marketing propositions
and communications to increase relevance and response. We show that a data-driven or
insight-driven marketing approach offers many advantages, but that organisations must
carefully consider the implications for customer data privacy and security.

Management of digital marketing

With the success stories of companies capturing market share following the rapidly increas-
ing adoption of the internet by consumers and business buyers, it is a prerequisite that all
organisations must have an effective online presence to prosper, or possibly even survive!
What Michael Porter said in 2001 is still valid today:
The key question is not whether to deploy Internet technology – companies have no choice
if they want to stay competitive – but how to deploy it.

What are the marketing communications techniques that businesses need to master to make
effective use of digital marketing? The proliferation of new media channels, digital tech-
nologies and interaction options has given a challenge of understanding, prioritising and
xiv Preface

Table P.1 The RACE planning framework for managing key activities for integrated digital marketing across the
customer lifecycle

Plan Reach Act Convert Engage

Create a digital Increase awareness, Generate interactions Achieve sales online Encourage customer
marketing strategy or drive website, mobile and leads or offline loyalty and advocacy
transformation plan and social media visits

1.1 Situation review 2.1 Media effectiveness 3.1 Customer journey 4.1 Retargeting 5.1 Customer
(Chapters 2 and 3) review effectiveness (Chapters 6 and 9) onboarding
(Chapters 8 and 10) (Chapter 7) (Chapters 6 and 7)

1.2 Set vision and 2.2 Search marketing 3.2 Data profiling 4.2 Personalisation 5.2 Customer
objectives, evaluate (Chapter 9) (Chapter 6) (Chapter 7) experience
(Chapters 4 and 10) (Chapter 7)

1.3 Strategy 2.3 Earned and 3.3 Content 4.3 Mobile 5.3 Customer
(Chapters 4–8) owned media marketing experiences service
(Chapters 6–9) (Chapter 8) (Chapter 7) (Chapter 7)

1.4 Segmentation 2.4 Paid media 3.4 Landing pages 4.4 Multichannel selling 5.4 Email marketing
(Chapters 4 and 6) (Chapter 9) (Chapter 7 and 8) (Chapter 4) (Chapters 6 and 9)

1.5 Value proposition 2.5 Acquisition plan 3.5 Content strategy 4.5 Conversion rate 5.5 Social media
and brand (Chapters 8 and 9) and campaign plan optimisation marketing
(Chapters 4 and 5) (Chapter 8) (Chapters 7 and 10) (Chapters 6 and 9)

Source: Chaffey (2021)

managing many new digital communications techniques. To help summarise these at a top
level of the customer lifecycle or classic marketing funnel, Chaffey (2021) defined the RACE
planning framework shown in Table P.1. RACE planning defines a structure of 5 : 5 = 25 key
digital marketing techniques that need to be harnessed in most organisations to fully exploit
digital marketing to reach, interact with, convert and engage online audiences across the
customer lifecycle, from generating awareness, conversion to sale (online and offline) and
retention and growth of customers. RACE also emphasises the need to plan to create a
coordinated, integrated approach to digital marketing, which is integrated with other com-
munications activities. Many of the activities across RACE are introduced in Chapter 1
as ‘always-on’ lifecycle communications, meaning businesses need to ensure that they can
optimise their capabilities to achieve the RACE goals shown in the second row of Table P.1.
For larger organisations, Table P.1 provides a summary of activities that need to be managed
as part of digital transformation programmes, which review the innovation across people,
process, tools and measures needed to increase competitiveness.
The table shows the range of different marketing activities or operating processes needed
to support acquiring new customers through communicating with them on third-party web-
sites and social media, attracting them to a company website, mobile app or social network
and converting interest into leads and sales, and then using online customer communica-
tions to encourage further purchases and advocacy. You can see that applying social media
and content marketing is a part of RACE that can be deployed to support many activities,
and therefore is one of the key management challenges in digital marketing, so we consider
approaches to managing social media and content marketing throughout the text, with a
focus in Chapters 6, 8 and 9. Applying digital platforms as part of multichannel marketing to
integrate customer journeys between traditional and digital media is also a major challenge
and a theme throughout this text. Management processes related to governance of digital
marketing include planning how digital marketing can be best resourced to contribute to
the organisation and integrated with other marketing activities. The increased adoption of
digital marketing also implies a significant programme of change that needs to be managed.
New objectives need to be set, new communications strategies developed and staff developed
through new responsibilities and skills.
 Preface xv

Digital marketing – new skills required?

The aim of this text is to provide you with a comprehensive guide to the concepts, techniques
and best practice to support all the digital marketing processes shown in Table P.1. This
text (the structure of which is shown in Figure P.1) is based on emerging academic models
together with best practice from leading adopters of digital media. The practical knowledge

Figure P.1 Structure of the text

Part 1
Chapter 1
FUNDAMENTALS Introducing
digital
marketing

Chapter 2
Chapter 3
Online market
The digital macro-
place analysis:
environment
micro-environment

Part 2 Chapter 4
STRATEGY Digital
marketing
strategy

Chapter 5 Chapter 6
Digital branding Data-driven
and the relationship
marketing mix marketing

Part 3 Chapter 7
IMPLEMENTATION Delivering the
AND PRACTICE digital customer
experience

Chapter 8 Chapter 9 Chapter 10

Campaign Marketing Evaluation and
planning for communications improvement of
digital media using digital digital channel
media channels performance
xvi Preface

developed through reviewing these concepts and best practice is intended to enable gradu-
ates entering employment and marketing professionals to exploit the opportunities of digital
marketing while minimising the risks.
Specifically, this text addresses the following needs:

• To know to what extent digital technology and media changes existing marketing models
and how new models and strategies can be applied to exploit the medium effectively.
• How to best integrate and align digital marketing with business and marketing strategies
and communications, including dedicated digital transformation programmes and digital
marketing strategies where necessary.
• Marketing practitioners need practical digital marketing skills to market their products
effectively. Knowledge of the jargon – terms such as ‘marketing automation’, ‘click-
through’, ‘cookie’, ‘uniques’ and ‘page impressions’ – and of effective methods of site
design and promotion such as search engine marketing will be necessary, either for direct
‘hands-on’ development of a site or to enable communication with other staff or agencies
that are implementing and maintaining the site.

The text assumes some existing knowledge of marketing in the reader, perhaps developed
through experience or by students studying introductory modules in marketing fundamen-
tals, marketing communications or buyer behaviour. However, basic concepts of marketing,
communications theory, buyer behaviour and the marketing mix are outlined.

Summary of changes for the eighth edition

The acclaimed structure of previous editions has been retained since this provides a clear
sequence to the stages of strategy development and implementation that are required to plan
successfully for digital marketing in existing and startup companies.
The main changes made for the eighth edition, based on feedback from reviews and our
close monitoring of the trends and latest developments, are:

• Increased coverage and examples of data-driven marketing techniques including digital

analytics, artificial intelligence and machine learning.
• Updated examples of deploying organic and paid social media.
• Simplified chapter introduction pages blending learning objectives and topics.
• Increased diversity within case studies and mini case studies to feature more startup and
not-for-profit businesses.
The main innovations included in the chapters are as follows.

Chapter 1 – Introducing digital marketing

• The 5Ds of digital marketing extended to 7Ds to emphasise the importance of goal set-
ting, strategy and customer insight.
• New and updated visuals to introduce and explain digital marketing concepts and
options. Overall, this edition has over 50 new or updated figures and tables.

Chapter 2 – Online marketplace analysis: micro-environment

• Table 2.1 updated to include the latest customer research tools and sources for students
to use in their assignments.
• New research on share of searches and examples of keywords.
• New mini case study on how social media influencers can shape our opinions.
 Preface xvii

• New activity on B2B social network LinkedIn.

• New digital marketing competitor benchmarking framework based on RACE.

Chapter 3 – The digital macro-environment

• Increased focus on marketing technology and AI and reduced introductory content on

‘how the web works’.
• New mini case study covering Bitcoin and marketing applications of blockchain.
• New digital marketing insight covering digital minimalism and digital addiction.
• Updates to legislation related to digital marketing and coverage of the ‘cookieless future’.

Chapter 4 – Digital marketing strategy

• New digital marketing insights box exploring: ‘Is a digital marketing strategy needed in
the post-digital world?’
• New section and figure on completing a digital marketing capability review.

Chapter 5 – Digital branding and the marketing mix

• New focus on digital branding.

• New research and examples on each part of the marketing mix added.

Chapter 6 – Data-driven relationship marketing using digital

platforms

• New section on data-driven marketing covering Big Data, AI and machine learning, and
analysis techniques including lead scoring and lead grading with a mini case study illus-
trating the concept. Chapter restructured to emphasise this, with social media marketing
moved to the end and now including social media monitoring.
• New figures explaining how email marketing and social media can be used to support
marketing activities across the customer lifecycle of Reach, Act, Convert and Engage.
• New case study showing how a startup business – B2B social media sharing service Buffer –
has used data-driven marketing to grow the business.

Chapter 7 – Delivering the digital customer experience

• Options of cloud-based hosting and website hosting introduced. Google Core Web Vitals
added.
• Usability and digital accessibility updated with new Voice of the Customer examples and
McGovern’s ‘top tasks’ methodology.
• Updates of new IoT and AR applications including addition of classical literature on VR,
AR and mixed reality.

Chapter 8 – Campaign planning for digital media

• New coverage and research covering balance between brand-building and brand-response
campaigns and how digital media can facilitate this.
• Case study on Facebook replaced by not-for-profit Global Action Plan, which campaigns
for environmental improvements.
• Updated figures recommending an integrated campaign timeline and best media types
for different campaign budgets.
xviii Preface

Chapter 9 – Marketing communications using digital media

channels

• Best practices recommendations updated, particularly for organic and paid search. New
mini case added on advertising in TikTok.
• New case study on using analytics to review media effectiveness at Smart Insights.

Chapter 10 – Evaluation and improvement of digital channel

performance

• More practical coverage of Google Analytics, including a student activity reviewing the
main reports in the Google Analytics Demo Accounts for Universal Analytics and GA4.
• Short section and mini case study added on Voice of Customer research.

Table P.2 In-depth case studies in Digital Marketing, 8th edition

Chapter Case study Themes

1 Introducing digital Boo hoo: learning from Boo. Business and revenue model,
marketing com – the largest European proposition, competition, objectives
dot.com failure and the success and strategies, risk management.
of Boohoo.com Updated to contrast with Boo.com

2 Online marketplace Creating the beauty that moves Assessing a consumer market,
analysis: the world business models, marketing
micro-environment communications

3 The digital Social media and the changing Companion vision, branding,
macro-environment face of celebrity influencers target market, communicating
the proposition, challenges and
reasons for failure

4 Digital marketing ASOS shifts the focus of high- Business models, proposition
strategy street retailing to enhance the and online product range, target
customer experience market strategy

5 Digital branding and Spotify streaming develops new Peer-to-peer services, revenue
the marketing mix revenue models models, proposition design,
strategy, competition, risk factors

6 Data-driven Buffer: from idea to paying Testing concepts and innovating

relationship marketing business customers in seven value propositions using
using digital platforms weeks data-driven marketing in a startup
business

7 Delivering the digital Refining the online customer Strategy, proposition, site design,
customer experience experience at i-to-i.com on-site search capabilities

8 Campaign planning for Global Action Plan – Exploring the campaign planning
digital media campaigning for a better world process at charity GAP, with
examples of different participation
and social-media-led campaigns

9 Marketing Smart Insights: how content Digital media channel strategy

communications using strategy fuels inbound and measurement using Google
digital media channels marketing to grow an online Analytics for a small business
B2B service

10 Evaluation and Learning from Amazon’s culture Strategy, measurement, online

improvement of digital of metrics marketing communications,
channel performance personalisation approach
 Preface xix

The structure and content of this text

The text is divided into three parts, each covering a different aspect of how organisations
use the internet for marketing to help them achieve competitive advantage. Table P.3 shows
how the text is related to established marketing topics.

Part 1 Digital marketing fundamentals (Chapters 1–3)

Part 1 relates the use of the internet to traditional marketing theories and concepts, and
questions the validity of existing models given the differences between the internet and
other media.

• Chapter 1 Introducing digital marketing considers using the internet as part of customer-
centric, multichannel marketing; it also reviews the relationship between internet market-
ing, digital marketing, e-commerce and digital business, and the benefits the internet can
bring to adopters; and outlines differences from other media and briefly introduces the
technology.
• Chapter 2 Online marketplace analysis: micro-environment reviews how digital media
and technology changes the immediate environment of an organisation, including the
marketplace and channel structure. It describes the type of situation analysis needed to

Table P.3 Coverage of marketing topics in different chapters

Topic 1 2 3 4 5 6 7 8 9 10

Advertising ✓ ✓

Branding ✓ ✓ ✓ ✓

Consumer behaviour ✓ ✓ ✓ ✓ ✓ ✓

Channel and market structure ✓ ✓ ✓ ✓

Communications mix ✓ ✓ ✓

Communications theory ✓ ✓ ✓

Customer service quality ✓ ✓ ✓

Direct marketing ✓ ✓ ✓

International marketing ✓ ✓ ✓ ✓

Marketing mix ✓ ✓ ✓ ✓

Marketing research ✓ ✓ ✓ ✓

Evaluation and measurement ✓ ✓ ✓ ✓ ✓ ✓

Pricing strategy ✓ ✓ ✓

Promotion ✓ ✓ ✓ ✓ ✓

Public relations ✓ ✓

Relationship marketing ✓ ✓

Segmentation ✓ ✓ ✓ ✓ ✓ ✓

Services marketing ✓ ✓

Strategy and planning ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

Technology background ✓ ✓ ✓ ✓
xx Preface

support digital strategy by examining how customers, competitors and intermediaries,

and the interplay between them, can be evaluated.
• Chapter 3 The digital macro-environment reviews the impact of social, technological,
economic, political, legal and environmental influences on digital strategy and its imple-
mentation. The emphasis is on privacy and data protection regulations and managing
technology innovation.

Part 2 Digital marketing strategy development (Chapters 4–6)

Part 2 describes the emerging models for developing strategy and provides examples of the
approaches companies have used to integrate the internet into their marketing strategy.

• Chapter 4 Digital marketing strategy considers how the digital strategy can be aligned
with business and marketing strategies, and describes a generic strategic approach with
phases of situation review, goal setting, strategy formulation and resource allocation and
monitoring.
• Chapter 5 Digital branding and the marketing mix assesses how the different elements
of the marketing mix can be varied in the online environment as part of strategy
formulation.
• Chapter 6 Data-driven relationship marketing using digital platforms details strategies
and tactics for using digital communications to build and sustain ‘one-to-one’ relation-
ships with customers.

Part 3 Digital marketing: implementation and practice

(Chapters 7–10)

Part 3 of the text explains practical approaches to implementing a digital marketing strategy.
Techniques for communicating with customers, building relationships and facilitating elec-
tronic commerce are all reviewed in some detail. Knowledge of these practical techniques is
essential for undergraduates on work placements involving website, content or social media
marketing activities, and for marketing managers who are dealing with suppliers such as
design agencies.

• Chapter 7 Delivering the digital customer experience explains how an online presence
is developed to support branding and customer service quality objectives. The stages
of analysis of customer needs, design of the site structure and layout and creating the
site are covered, together with key techniques such as user-centred design, usability
and accessibility design. It also covers different service quality models used to assess
experience.
• Chapter 8 Campaign planning for digital media describes the novel characteristics of
digital media, and then considers different aspects of marketing communications that
are important for developing a successful online campaign.
• Chapter 9 Marketing communications using digital media channels covers techniques
such as banner advertising, affiliate networks, promotion in search engines, co-branding
and sponsorship, email, online PR, viral and word-of-mouth marketing, with particular
reference to social networks.
• Chapter 10 Evaluation and improvement of digital channel performance reviews methods
for assessing and improving the effectiveness of a website and digital communications
using digital analytics, with a focus on Google Analytics. The chapter briefly covers pro-
cess and tools for updating content.
 Preface xxi

Who should use this text?

Students

This text has been created primarily as the main student text for undergraduate and post-
graduate students taking specialist marketing courses or modules that cover e-marketing,
internet and digital marketing, electronic commerce and e-business. The text is relevant to
students who are:

• undergraduates on business programmes that include modules on the use of the internet
and e-commerce, including specialist degrees such as digital marketing, electronic com-
merce, marketing, tourism and accounting or general business degrees such as business
studies, business administration and business management;
• undergraduate project students who select this topic for final-year projects or disserta-
tions – this text is an excellent supporting text for these students;
• undergraduates completing a work placement in a company using the internet to promote
its products;
• students at college aiming for vocational qualifications, such as an HNC or HND, in
business management or computer studies;
• postgraduate students taking specialist master’s degrees in electronic commerce or inter-
net marketing, generic MBAs and courses leading to qualifications such as the Certificate
in Management or Diploma in Digital Marketing or Management Studies that involve
modules on electronic commerce and digital marketing.

Practitioners

Previous editions have been widely used by digital marketing practitioners including:

• marketing managers or specialists such as e-commerce managers or digital marketing

managers responsible for defining digital marketing strategy and implementing and main-
taining the company website;
• senior managers such as chief marketing officers (CMOs) and directors wishing to under-
stand the potential of digital marketing for a company and who need practical guidelines
on how to exploit this potential;
• technical project managers or webmasters who may understand the technical details of
building a site, but have a limited knowledge of marketing fundamentals and how to
develop an internet marketing strategy.

What does the text offer to lecturers teaching these courses?

The text is intended to be a comprehensive guide to all aspects of using the internet and
other digital media to support marketing. The text builds on existing marketing theories
and concepts, and questions the validity of models in the light of the differences between
the internet and other media. The text references the emerging body of literature specific
to internet marketing. It can therefore be used across several modules. Lecturers will find
the text has a good range of case studies, activities and exercises to support their teaching.
Website links are given in the text and at the end of each chapter to provide important
information sources for particular topics.
xxii Preface

Student learning features

A range of features has been incorporated into this text to help the reader get the most out
of it. Each feature has been designed to assist understanding, reinforce learning and help
readers find information easily, particularly when completing assignments and preparing for
exams. The features are described in the order in which you will find them in each chapter.

At the start of each chapter

The ‘Chapter at a glance’ page is a summary of the content for each chapter. It contains:

• Learning objectives and topics: a list relating the learning objectives to the main
sections in which they are covered in the chapter.
• Case study: an organisation is featured in the main case at the end of each chapter.
• Links to other chapters: a summary of where key concepts are also covered in other
chapters.

In each chapter

• Definitions: when significant terms are first introduced in the main text, there are suc-
cinct definitions of these terms in the margin for easy reference.
• Web references: where appropriate, web addresses are given to enable readers to obtain
further information. They are provided in the main text where they are directly relevant
as well as at the end of the chapter.
• Essential digital skills: practical ideas to boost employability by showcasing students’
interests and experiences.
• Mini case studies: short features that give a more detailed example, or explanation,
than is practical in the main text. They do not contain supplementary questions.
• Digital marketing insights: short features and examples of using research to facilitate
data-driven marketing.
• Activities: exercises that give readers the opportunity to practise and apply the tech-
niques described in the main text.
• Case studies: real-world examples of how companies are using the internet for market-
ing. Questions at the end of each case study are intended to highlight the main learning
points from the example.
• Chapter summaries: intended as revision aids to summarise the main learning points
from the chapter.

At the end of each chapter

• Self-assessment exercises: short questions that will test understanding of terms and
concepts described in the chapter.
• Exam and discussion questions: these include questions that can be set for students
or used for self-review by students. They include individual essays, topics for seminar
discussion and short questions for exams to assess knowledge about a topic.
• References: these are references to books, articles or papers referred to within the
chapter.
Note: In addition to the end of chapter material in the text, website links are hosted at
www.davechaffey.com/book-support, structured by chapter to enable students to click-
through to relevant sites. These are significant sites that provide further information on the
concepts and topics of the chapter.
 Preface xxiii

At the end of the text

• Glossary: comprehensive definitions of all key terms and phrases used within the main
text.
• Index: all key words and abbreviations referred to in the main text.

Support material

Free supplementary materials are available at Dave Chaffey’s website at www.davechaffey.

com/book-support to support all users of the text. This regularly updated website contains
advice, comment, support materials and hyperlinks to reference sites relevant to the text.
A companion website for lecturers and students is available from the publisher at go.pearson.
com/uk/he/resources. Lecturers can download an Instructor’s Manual and supporting
PowerPoint slides.

References

Chaffey, D. (2021) Introducing the RACE framework: a practical framework to improve your
digital marketing, Smart Insights blog post, 27 May, smartinsights.com/digital-marketing-
strategy/race-a-practical-framework-to-improve-your-digital-marketing (accessed August
2021).
Porter, M. (2001) Strategy and the internet, Harvard Business Review, (March), 62–78.
About the authors

Dave Chaffey BSc, PhD, FCIM, FIDM

Dave is co-founder of Smart Insights (www.smartinsights.com), an online marketing training
platform and blog providing advice and alerts on best practice and industry developments
for marketers, digital marketers and e-commerce managers. Dave’s personal blog features
a glossary and other advice created to help readers of Dave’s books, available from www.
davechaffey.com/book-support.
Dave also works as an independent digital marketing trainer and consultant. He has consulted
on digital marketing and e-commerce strategy for companies of a range of sizes from larger
organisations such as 3M, Barclaycard, Dell, HSBC, Mercedes-Benz, Microsoft and The North
Face to smaller organisations such as Arco, Confused.com, Euroffice and Scan Computers.
Dave’s passion is educating students and marketers about the latest and best practices in
digital marketing, thus empowering businesses to improve their online performance through
getting the most value from their web analytics and market insight. In other words, making
the most of online opportunities and avoiding waste.
He is proud to have been recognised in 2004 by the Department of Trade and Industry as
one of the leading individuals who have provided input and influence on the development and
growth of e-commerce and the internet in the UK for the previous ten years. Dave has also been
recognised by the Chartered Institute of Marketing as one of 50 marketing ‘gurus’ worldwide
who have helped shape the future of marketing. He is also proud to be an Honorary Fellow of
the Chartered Institute of Marketing and the Institute of Data and Marketing.
Dave has been a visiting lecturer on digital marketing and e-commerce courses at differ-
ent universities including Birmingham, Cranfield, Derby, Leeds, Manchester Metropolitan
and Warwick.
In total, Dave is author of five best-selling business books including Digital Business
and Ecommerce Management (with Tanya Hemphill and David Edmunson-Bird), Digi-
tal Marketing: Strategy, Implementation and Practice, Digital Marketing Excellence (with
P.R. Smith) and Total Email Marketing. Many of these books have been published in new
editions since 2000 and translations include Chinese, Dutch, German, Italian and Serbian.
When offline, Dave enjoys fell-running, orienteering, indie guitar music and travelling
with his family.
Dave is a volunteer at Abilitynet.org.uk helping people with disabilities, including visual
impairment, to use digital devices.

Fiona Ellis-Chadwick PhD, BSc, PGCE

Fiona Ellis-Chadwick has a successful professional business and academic career. She had
a successful commercial career in retail management before becoming an academic in 1998
and completing her PhD in 2000. Since then, she has been working on projects aiming to
advance research in the fields of digital marketing; online retail management and the digital
high street. She is currently working with central, regional and local government authorities
and leading technology and retail organisations on projects that aim to ensure the future
sustainability of UK high streets.
Additionally, as part of her academic career, Fiona is a very active researcher and inno-
vator who frequently leads the development of thought-provoking multimedia teaching
materials, bringing together her knowledge of research and business. Fiona’s work has
 About the authors xxv

been widely published in national and international journals, including Journal of Business
Research, European Journal of Marketing, International Journal of Retail Distribution &
Management, Internet Research and Journal of Retailing and Consumer Services.
Fiona is passionate about business research and education and creating value for society,
having started her working career as a young entrepreneur building a retail business. She
believes bringing management research to life is very important, especially in her current role
as Director of Impact at The School of Business & Economics, Loughborough University.

Academic profile: http://www.lboro.ac.uk/departments/sbe/staff/fiona-ellis-chadwick/

LinkedIn: https://www.linkedin.com/in/fiona-ellis-chadwick-6919136/
Acknowledgements
I am fortunate to have shared my journey of understanding how best to use digital marketing
with thousands of students and marketing professionals and I thank you for sharing your
experiences with me. I’d particularly like to thank all the practitioners who have shared their
experiences on applying digital marketing in their articles and webinars on Smartinsights.
com and past, present and future colleagues who I have enjoyed working with to develop
our digital communications at Smart Insights, in particular my co-founders Stu Miller and
Danyl Bosomworth.
Likewise, I appreciate the effort made by the digital marketing specialists who have shared
their knowledge as expert commentators on Smart Insights, including Mike Berry and
Richard Sedley (marketing strategy), Dan Barker, Ben Jesson and Pritesh Patel (analytics),
Dan Bosomworth, Paul Fennemore, Katy Howell and Marie Page (social media marketing),
Rene Power (B2B marketing), Rob Thurner (mobile marketing), Chris Soames, James Gurd
and John Newton (search marketing), Lilach Bullock (social media marketing), Mel Henson
(copywriting), Paul Rouke (usability) and Kath Pay, Tim Watson and Jenna Tiffany (email
marketing). Also to the many occasional contributors who have shared their expertise and
experiences.
The authors would like to thank the team at Pearson Education for their help in the crea-
tion of this text through many useful reviews, especially Anita Atkinson, Rufus Curnow,
Elizabeth Leight, Manoj Lodhi and Diane Jones.
As always, special thanks go to my family for supporting me in the ongoing updates and
educating me via their personal and business use of social media marketing!
Dave Chaffey
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