Digital Marketing

Unit - 1
Key Terms
• Internet marketing can be simply defined as:
Achieving marketing objectives through applying digital technologies.
• E-marketing or electronic marketing can be considered to have a broader
scope since it refers to digital media such as web, e-mail and wireless
media, but also includes management of digital customer data and
electronic customer relationship management systems (e-CRM systems).
• Digital marketing involves:
• Applying these technologies which form online channels to market:
– Web, e-mail, databases, plus mobile/wireless and digital TV.
• To achieve these objectives:
– Support marketing activities aimed at achieving profitable acquisition
and retention of customers, within a multi-channel buying process and
customer lifecycle.
Marketing
Definition of marketing by the Chartered Institute of Marketing (www.cim.co.uk):
Marketing is the management process responsible for
identifying, anticipating and satisfying customer requirements profitably.

The role of e-marketing in supporting marketing is suggested by applying the

definition as follows:
• Identifying – the Internet can be used for marketing research to find out
customers’ needs and wants.
• Anticipating – the Internet provides an additional channel by which customers
can access information and make purchases – understanding this demand is
key to governing resource allocation to e-marketing.
• Satisfying – a key success factor in e-marketing is achieving customer
satisfaction through the electronic channel, which raises issues such as: is the
site easy to use, does it perform adequately, what is the standard of associated
customer service and how are physical products dispatched etc.
Digital Marketing
• Digital marketing encompasses all marketing efforts that use an
electronic device or the internet. Businesses leverage digital channels
such as search engines, social media, email, and their websites to
connect with current and prospective customers.
• Marketing has always been about connecting with your audience in the
right place and at the right time. Today, that means you need to meet
them where they are already spending time: on the internet.
• Enter digital marketing — in other words, any form of marketing that
exists online.
• Digital marketing is defined by the use of numerous digital tactics and
channels to connect with customers where they spend much of their
time: online. From the website itself to a business’s online branding
assets — digital advertising, email marketing, online brochures, and
beyond — there’s a spectrum of tactics that fall under the umbrella
of “digital marketing.”
Scope
• Digital Marketing industry is booming not just in India but all parts of the world.
The year 2016 took the industry by surprise with over 1.5 lacs job opportunities in
the Digital Marketing domain. In recent times, the most sought-after career
opportunity is digital marketing. Statistics show that digital marketing industry is
booming worldwide - offering 8lakhs jobs in the very first quarter of 2017.
Naukri.com, India’s largest job portal, announced and advertised for as many as
13000 job opportunities for digital marketing professionals through its portal in
the first quarter of 2018. The USA itself has generated 49000 qualitative digital
marketing jobs in the year gone by (2017). However, 91% of top employers
consider certification as key hiring criteria, while 48% are willing to offer a higher
salary to certified candidates. So, internet marketing training proves highly
rewarding for you during the hiring process.
• The surveys conducted by several forums have predicted this number to grow with
Digitalization in the nation. Our Prime Minister has been actively promoting the
idea of Digital India. PM Modi’s digital India campaign gained massive popularity.
The initiative of Government of India is aimed at providing easy services to its
natives.
• Now imagine when a nation’s government is promoting the digital interaction,
what do you think will be the Digital Marketing scope in that nation.
Importance of Digital Marketing
•It is the newest thing in town
There was a time when a new serial on the TV used to be the hot topic whereas today,
the online posts or a new music video on YouTube grabs our attention. What is this?
This is a shift in the choice and preferences. Digital media is gaining mass attention
because of the fresh air it has got with itself. It’s like living in a new era. We are
experiencing a revolution, while we are shifting from the traditional to the Digital
media.
•It is flexible
Since the entire work is to be done on the internet, there is no restriction of the place.
It doesn’t matter if you are at the office or at home. All you need is a device that is
connected to the internet and you are sorted. Do you want to check your bank
balance? Do it on your smart phone. Want to book movie tickets? Pick up your
Smartphone and book! This is the digital age; everything is available at your fingertips.
•It is easy
Accessing the digital media is no rocket science. The newest of users also take a
maximum of few days to learn how to operate the digital media. This is purely because
it is designed in such a user-friendly manner that its primary objective is to ease the
operations for human beings, the reason why our mobile phones are now called
Smartphone.
Importance of Digital Marketing
• Eco- friendly
Being responsible citizens of the world it is important that we operate through mediums
that do not harm our atmosphere. The digital media additionally cuts down on paper
usage. We operate the digital media over the internet and thus can save ourselves a lot
of hustle in terms of hard work, long process of work and all the other drawbacks of
using the traditional medias.
• Fastest Reach
Previously radio and TV was considered to have the fastest reach because of the live
communication feature. Radio is still the medium with the widest reach but the new
media is gradually overshadowing the most popular medias like a newspaper, television,
etc. Today, you post anything online and it gets trending within a few hours. This is
because the number of users of the digital media are touching heights with each passing
day.
• Influential
The man kind is used to being influenced by whatever is trending the most. The virtual
media has not fallen short of influencing the masses of its own new style. The social
media occupying the most space has infused itself so well in the lives of the users that it
is like the early morning newspaper that is a must. Only this newspaper is carried
forward all day long.
Importance of Digital Marketing
• Job Opportunities
The massive user engagement calls for more and more job opportunities. The
employment sector has seen a major share of jobs generated by the Digital Marketing
Industry. The statistics show that the total number of job opportunities in the Digital
Marketing industry to cross 8 lakh job in 2017. The career scope in Digital Marketing
seems attractive to masses.
• High engagement
It is true that the traditional media are being completely overshadowed by the internet-
led Digital Marketing due to high engagement factors. The brands and companies have
begun to give extra emphasis to the ad campaigns run on the internet over television
ads. The revolution is here!
• Small investments and big Returns
Digital Marketing ad campaigns ask for a very little amount of investments as compared
to television and print ads. The high ROI is attractive enough to draw the attention of the
marketers and advertisers.
• Measure immediate results
An advertiser running a social media campaign can easily measure the performance of
the campaign in real time without waiting for long intervals. The leads generated and
online purchases are a direct measure of the performance of the campaign.
Marketing applications of Internet marketing
• An advertising medium. For example, BP plc and its subsidiary companies, such as Castrol Limited,
uses large-format display or interactive ads on media sites to create awareness of brands and
products such as fuels and lubricants.
• A direct-response medium. For example, SpiceJet uses sponsored links when a user is researching
a flight using a search engine to prompt them to directly visit the SpiceJet site by clicking through
to it. Similarly the SpiceJet e-mail newsletter sent to customers can encourage them to click
through to a web site to generate sales.
• A platform for sales transactions. For example, SpiceJet sells flights online to both consumers and
business travelers.
• A lead-generation method. For example, when BP offers content to business car managers about
selecting the best fuel for company cars in order to identify interest from a car fleet manager.
• A distribution channel. For example, for distributing digital products. This is often specific to
companies with digital products to sell such as online music resellers such as Napster
(www.napster.com) and Apple iTunes (www.itunes.com) or publishers of written or video
content.
• A customer service mechanism. For example, customers serve themselves on SpiceJet.com by
reviewing frequently asked questions.
• A relationship-building medium where a company can interact with its customers to better
understand their needs and offer them relevant products and offers. For example, SpiceJet uses its
e-mail newsletter and tailored alerts about special deals to help keep its customers and engage
them in a dialogue to understand their needs through completing surveys and polls.
Web 2.0
A collective term for certain applications of the
Internet and the World Wide Web, which focus on
interactive sharing and participatory collaboration
rather than simple content delivery.
 Blogs
 You tube
 Podcasts
 Twitter
 Facebook pages
 Wikis
 Online communities

Web 2.0 provides

opportunities for content
creation and enables better
campaign management,
Internet
Usage in
India

• Total Population of India : 1,342,549,041 (July 2017)

• Indian Population Online: 450 million (June 2017,
TRAI)
• Urban: 60%, Rural 30% (approx. source: TRAI,
IMRB)
• Mobile phone as primary device for accessing
internet: Urban – 77% and Rural 92% (source:
Traditional Marketing / Digital Marketing
Traditional Marketing / Digital Marketing
Traditional Marketing / Digital Marketing
Digital Marketing Advantages
• Online mass customization
Increas Personalization
es • 24/7 convenience
• Self-service ordering and tracking
Benefit
• One-stop shopping
s • Low cost distribution of communication
messages
Decreas • Low cost distribution channel for digital
es products
• Lowers costs for transaction processing
Costs • Lowers costs for knowledge acquisition
• Creates efficiencies in supply chain
• Decreases
Online transaction
the costrevenues such
of customer as
service
product, information, advertising, and
subscriptions sales; or commission/fee on
Increas a transaction or referral
es • Add value to products/services and
Revenu increase prices
es • Increase customer base by reaching new
markets
Benefits of Internet Marketing
Tangible benefits Intangible benefits

1. Increased sales from 1. Corporate

new sales leads image
communicati
giving rise to on
increased revenue 2. Enhance
from: brand
3. More rapid, more
 new customers, new responsive
markets marketing
 existing customers communications
(repeat- including PR
selling) 4. Improved customer
 existing customers service
5. Learning for the
(cross- selling) future
2. Cost reductions 6. Meeting
from: customer
 reduced time in expectations
customer 7. Identify new
service partners,
Different Types Internet Sites
Internet Sites are classified into four
Categories
1. Company / Brand sites
2. Selling sites
3. Service sites
4. Information sites
Types of Company Websites
Sites
1. Company / Brand Hindustan Unilever www.hul.co.in
sites
PepsiCo India PepsiCo India
Coca-Cola India www.coca-colaindia.co
Procter & Gamble, m
ww.pg.com
India
NIKE www.nike.com
Puma in.puma.com

2. Service sites State Bank of India www.sbi.co.in

MakeMyTrip www.makemytrip.com
Jet Airways www.jetairways.com
Indian Railway www.irctc.co.in
BookMyShow in.bookmyshow.com
Monster www.monsterindia.com
Facebook Facebook.com
twitter twitter.com
Types of Company Websites
Sites
3. Selling sites Flipkart www.flipkart.com
Snapdeal www.snapdeal .com
Amazon www.amazon.in
Myntra www.mynta.com
Olx www.olx.in
Jabong www.jabong .com

4. Information sites Google www.google.co.in

Wikipedia en.wikipedia.org
Quora www.quora.com
Yahoo in.yahoo.com
Bing www.bing.com
Types of E-commerce
B2B
 Business-to-Business
Business-to-business (B2B) is selling products or
services between businesses through the
internet via an online sales portal. In general, it
is used to improve efficiency for companies.
Instead of processing orders manually – by
telephone or e-mail – with e-commerce orders
can be processed digitally.
B2B transactions can be processed online in
various ways, of which Electronic Data
Interchange (EDI) and B2B e- commerce are
most often used. Although EDI and B2B e-
commerce both have their own, distinctive
features, they are often mixed up.
B2B Websites
 AmazonBusiness.in
 Alibaba.COM
 Indiamart.com
 TradeIndia.com
 Intel
 IBM
 Qualcomm
 Sulekha.com
 Amagi.com
 e-cantonfair.com/
China
B2C
 Business-to-Consumer
Business to consumer B2C e-commerce or
electronic commerce is used to describe a
transaction conducted over the Internet
between a business and a consumer for
his/her personal use. B2C as a business
model differs significantly from the B2B
model, which refers to commerce between
two or more businesses.
B2C (Business-to-Customer) ecommerce is the
exchange of goods or services over the
internet between online stores and individual
B2C Websites
 Flipkart.com
 Amazon. in
 Snapdeal.com
 Myntra.com
 pizzaonline.dominos.co.in
(Dominos)
 online.pizzahut.co.in (Pizza hut)
 Lenskart.com
C2C
 Consumer-to-
Consumer
C2C, or customer-to- or consumer-
consumer, customer,
(or citizen-to- to-
involve citizen)
the electronicallyelectronic
commerce s consumers
facilitated through
betwee
party. A common example is thesome third
online auction, in
transactio
which n
a consumer posts an item for sale and
ns
other consumers bid to purchase it; the third
party generally charges a flat fee or commission.
The sites are only intermediaries, just there to
match consumers. They do not have to check
quality of the products being offered.
C2C Websites
 www.quikr.co
m.
 www.ebay.in.
 www.olx.in.
Use of B2C and B2B internet Marketing
While business-to-business and business-to-consumer
Internet marketing strategies are two different
animals, in that one model targets businesses and the
other consumers, the benefits that B2B and B2C
provide to marketers are about the same. In short,
both models help businesses increase sales in an
increasingly competitive marketplace. In 2012, in the
United States the number of potential Internet buyers
in this increasingly competitive marketplace reached a
new peak: 245 million potential buyers online.
Use of B2C and B2B Internet Marketing
• Increased Awareness
• With over six billion Internet users across the world, it’s obvious why B2B and B2C
Internet marketing increases awareness of businesses and their products or services.
More than that, with more B2B and B2C companies marketing themselves on the
Internet, marketers are in a better position to pick up details about their competition.
Additionally, with the advent of the social networking explosion, more business and
consumer patrons are voicing their opinions about various products and services. This
gives marketers even more empowering info about what the market is thinking –
knowledge they wouldn’t have if they themselves weren’t using the Internet.

• Better Interaction
• The social network explosion, in addition to email and website marketing, also gives
marketers the ability to interact more directly with their customers, whether businesses
or consumers. An important part of this interaction is educating customers, either as a
group or as individuals. Marketing strategists at the firm Customer Paradigm cite
business authors Margaret Clark and Carol Pearson, who say that educated customers
will buy more than confused ones. So whether it’s marketing via email, podcasts, a
website or social networks, marketers who are interactive on the Web increase their
authority in the marketplace – another advantage from using the Internet.
Use of B2C and B2B Internet Marketing
• Better Service
• Better education relates to better service. In the days of mom-and-pop stores,
customer service usually meant the interaction you got once you walked in the store,
when what you ordered was delivered to your doorstep or when you called via
telephone. Now that more B2B and B2C companies are using the Internet, though,
they’re providing marketing websites on which customers can make contact when
they have questions or concerns, and they’re sending informative emails that don’t
merely advertise but also inform their customers with practical information. This
means that customers, ideally, are getting much more robust service.

• Refined Messaging
• The Internet has also provided marketers with more specific information about their
customers, such as when they’re more receptive to receiving an advertising message.
Armed with this knowledge, some B2B and B2C companies use a marketing method
called “right-time marketing.” According to business analyst firm Garner, Inc., the
statistics are too compelling to ignore: strategically timing email marketing messages
will help marketers see as much as a 600 percent rise in performance over more lax
messaging methods, such as email blasts and cold calling.
Why is digital strategy needed?
 To set clear goals for
digital channels
 To align with business
strategy (avoid ad-hoc
approaches)
 Create a specific online
value
proposition (OVP)
 Specify communications
tools to drive visitors
 Integrate digital and
traditional
channels
Generic Digital
Strategy
Development
Process

Source:
Internet
Marketing
by
Chaffey,
Ellis-
Chadwick,
Johnston &
Meyer, 3rd
ed.
The 5s of Digital Marketing
Source: Internet Marketing by Chaffey, Ellis-Chadwick, Johnston
& Meyer, 3rd ed.

• Grow sales
Sell
• Add value
Serve
• Get closer to customer

Speak • Save costs

Save • Extend the brand online

Different forms of web
presence
• Transactional e-
commerce site • Amazon.in, Flipkart, Jabong

•Services-oriented/ • HDFC Bank, Bharath Gas

relationship building

•Brand Building site Portals• Nestle, Hyundai, Himalaya

– general or • Yahoo!, Naukri, Times of India

• domain specific

• Social network or • Facebook, Twitter, YouTube

media site
Types of online business models
1. E-shop
2. E-procurement
3. E-auctions
4. Virtual communities
5. Collaboration platforms
6. Third-party
marketplaces
7. Value-chain integrators
8. Value-chain service
providers
9. Information brokerage
10.Trust and other services