MM Unit 4

Competitors action to Price Changes:

When companies develop their pricing structures & strategies, they wanted to see the
customer’s & competitors’ reactions. There’re some factors that affect the cut-off price &
increase of price.

Initiating price changes: Sometimes, companies try to find out the desirable price cut-off
or price increase but in both cases, it depends upon the buyer’s & competitor’s reactions.
Check – price elasticity.

 Initiating price cuts: There’re several reasons for the company to cut off its pricing.
One of the reasons is excess capacity; another one is the falling demand in the face of
competitors. In this type of situation, companies cut off their price aggressively to
boost their sales & growth of market share. A company also does that to dominate the
market growth through lower costs. Learn more about – new product pricing.

For example, HP reduces its pricing aggressively to increase its share of the PC market in
developing countries.

 Initiating price increases: Strategic pricing can bring improved profits. Profit is
determined by the cost of producing a product. One of the major factors in price
increase is cost inflation; another one is overdemand. Over demand occurs when the
company can’t supply products to all customer’s needs, then the company increases
its price.

Buyer reactions to price changes

Customers have always nothing to say directly if the price increase of any product that
previously was lower. Obviously, the changing prices may have some positive meanings for
buyers.

For example: If the price of a Rolex watch is increasing then what do you think about it? At
first, the consumer might think that the watch might be more exclusive than before. Or
Consumers also might think that the company is so greedy to get more profits. Learn more
about – price-quality relationships.

For example: If the price of a Rolex watch reduces its price suddenly, the consumer may
think it has something wrong or defective. The consumer also doubts its quality. Every brand
is influenced by its price & quality.

Competitor reactions to price changes

Competitors also worry about the change in prices in other companies. They also worry
about others’ better quality products. This problem is so complex because the competitor can
interpret a company’s price cut-off in many ways. First, they think that other companies may
try to grab a large market share or boost their present sales or increase the demand for their
product in the market. So, gathering knowledge on – Price is a part of the marketing mix.

Almost every company guesses the reactions of its competitors. All competitors may act alike
or act differently in the manner perhaps because of differences in size, market shares, or
policies. Then separate analyses are necessary to take in this situation. However, enhance
yourself by learning market leader strategies.

Responding to price changes

In this sector, we‘ll reverse the question & ask how a company should respond to the changes
in price by competitors. The company needs to consider several factors like –

 Why did the competitor change their price?

 Is the change temporary or permanent?
 Are the competitors going to respond?

Besides this entire question, the company considers its own position in the present market, its
strategy & its target customer’s reaction to price changes.

Suppose, a company learns that a competitor just reduces its price & decides that this
reduction will likely harm its sales & profits. But the company believes that this reduction
will not lose too much market share, so they should wait & respond when their competitors
change their prices. After waiting too long, the competitors get stronger & more confident as
its sales increase. Enhance yourself on – price adjustment strategies.

The company should take some corrective action like-

 Reduce price to match with competitors

 Raised the perceived value of its offer
 Maintain its quality as it cuts prices
 Launch a low-price “ fighter brand”

This is extremely necessary for every company. Because if the company lost its target
segment being price sensitivity. Explore – customer and competitors’ reactions to price
changes.

MM Unit 5

Brand:

A brand is a product, service or concept that is publicly distinguished from other

products, services or concepts so that it can be easily communicated and usually
marketed.
Branding is the process of creating and disseminating the brand name, its qualities
and personality. Branding could be applied to the entire corporate identity as well
as to individual products and services or concepts.

Well-known advertising copywriter and ad agency founder David Ogilvy defined a

brand as: "the intangible sum of a product's attributes: its name, packaging, and
price, its history, its reputation, and the way it's advertised."

How are brands identified?

Brands are often expressed in the form of logos and graphic representations of the
brand.

In computers, a modern example of widespread brand application was the "Intel

Inside" label provided to manufacturers that use Intel's CPUs.

A company's brands and the public's awareness of them are often used as a factor
in evaluating a company. Corporations sometimes hire market research firms to
study public recognition of brand names as well as attitudes toward the brands.

Brand Image:

Brand image is a consumer's interpretation of your company and its

products and services. It takes form inside the consumer's mind based on
their experiences and interactions, as well as their perception of your
company's mission and values. A strong brand image can create brand
recognition and encourage the formation of a loyal client base that can
provide a company with profits for years to come.

Importance of Brand Image:

1. Establishes Credibility
2. Makes a good impression
3. Increases Referrals
4. Creates Recognition
5. Establishes Professionalism
Brand Identity?
Brand identity is the visible elements of a brand, such as color, design, and
logo, that identify and distinguish the brand in consumers' minds. Brand
identity is distinct from brand image. The former corresponds to the intent
behind the branding and the way a company does the following—all to
cultivate a certain image in consumers' minds:

 Chooses its name

 Designs its logo
 Uses colors, shapes, and other visual elements in its products and
promotions
 Crafts the language in its advertisements
 Trains employees to interact with customers

Brand image is the actual result of these efforts, successful or

unsuccessful.

Building Brand Identity

The steps a company should take to build a strong, cohesive, and
consistent brand identity will vary, but a few points apply broadly to most:

1. Analyze the company and the market. A complete SWOT analysis

that includes the entire firm—a look at the company's strengths,
weaknesses, opportunities, and threats—is a proven way to help
managers understand their situation to determine better their goals
and the steps required to achieve them.
2. Determine key business goals. The brand identity should help
fulfill these goals. For example, if an automaker is pursuing a niche
luxury market, its ads should be crafted to appeal to that market.
They should appear on channels and sites where potential
customers are likely to see them.
3. Identify its customers. Conducting surveys, convening focus
groups, and holding one-on-one interviews can help a company
identify its consumer group.
4. Determine the personality and message it wants to
communicate. A company needs to create a consistent perception
rather than trying to combine every conceivable positive trait: utility,
affordability, quality, nostalgia, modernity, luxury, flash, taste, and
class. All brand elements, including copy, imagery, cultural allusions,
and color schemes, should align and deliver a coherent message.
Importance of Brand Identity
Besides the rationale that brand identity is what makes the brand
unique and identifiable in the market, here are some other importance
of brand identity –

Helps Develop A Suitable Brand Image

While brand identity is the outward expression of the brand, brand
image is how the customers perceive it. Having an identity is really
important for the business as it gives rise to brand image. However,
it’s a task for the marketer to make customers form an image of the
brand which is similar to its identity.

Differentiates The Product From The

Competition
Brand identity helps the brand develop its own unique stance and
differentiate itself from others in the market. This differentiation also
helps in developing a positioning strategy and getting a loyal
customer-base in the market.

Creates Consistency
Consistency is the most important aspect of branding and brand
identity is what gives rise to consistency. Developing a consistent
outward expression is important to be perceived in a way brand
wants.

Helps Develop A Personality

A brand identity is the visual identity and representation tool to
express the brand’s personality.
The Elements Of Brand Identity
Brand identity helps a brand differentiate itself from others. It includes
distinguishable brand elements that are used to promote the
business. Even though the brand name, logo, and tagline are an
important part of it, a brand’s identity isn’t limited to them. It includes
all the visual and non-visual elements which give rise to the brand
experience.

Visual Elements
 Brand Name: A brand name is a name decided by the brand
strategist to identify the offering and differentiate it from others.
 Brand Logo & Tagline: A logo is a textual and/or pictorial
symbol representing the offering or an organisation, and tagline
is a short memorable description that succinctly and clearly
communicates the brand message.
 Brand Typography Style: Typography is the art and style of
arranging letters and text which is unique to the brand.
 Colour Palette: Colour palette is the set of colours used by the
brand in its marketing materials.
 Imagery: It is the set of differentiated images and visuals used
by the brand to communicate its brand message.
Non-Visual Elements
 Brand Personality: Brand personality refers to the set of human
traits/characteristics assigned to the brand. This personality is
stems from the visual brand identity elements and customer
interaction.
 Brand Associations: These are elements other than the brand
which the customer feels is associated with the brand. These
include famous personalities, partner brands, etc.
 Brand Voice: Brand voice is the uniformity in selection of words,
the attitude and values of the brand while addressing the target
audience or others.
Ex: McDonald’s
Brand image vs. brand identity

A company's brand image differs from its brand identity. Where the
brand image is how the customer perceives the brand and its
services, the brand's identity is how the brand wants the customer,
competitors and industry experts to see it. For example, if a
company wants to establish a brand identity of honesty and quality,
they might reveal their production methods and how they source
raw materials so customers may believe the brand identity is
genuine.

Brand Image vs Brand Identity

Even though brand identity is often confused to be the same as brand
image, both are very different.

Brand identity is how the brand wants its customer to perceive it.

Brand image, on the other hand, is the customers’ perspective of the

brand which results from their interactions with the brand. It often
stems from the brand identity but is not necessarily same or similar to
it as the brand has little or no control over the brand image.

Brand Personality:
Brand personality refers to the association of human characteristics
and traits with the brand to which the customers can relate.

In simple terms, it refers to brand personification. It is the set of

human trait and characteristics assigned to the brand.

A brand personality comes into existence when human-like adjectives

– like unique, caring, funny, trustworthy, creative, straightforward,
dishonest, rebel, etc. – are assigned to a brand.
Importance Of Brand Personality
Branding is a lot more than just name, logo, and tagline. It involves
assigning characteristics and properties within and outside the
offering to give that generic offering an identity which is different from
those in the market.

Now, besides the fact that brand personality is imperative to

differentiate the product in the market, here are other important
factors why brand personality matters:

 Develops Brand Image: Brand identity and brand personality

are two interconnected tools which helps in developing a desired
brand image in the market. While brand personality strategizes
how a brand would behave in the market, brand identity
visualizes this strategy, which in turn, results in developing a
brand image.
 Positions The Offering: Customers use same products
provided by different brands differently. That is to say, brand
personality teaches customers how they should be using the
brand’s products.
 Develops Emotional Connection: Brand personality helps
develop emotional connection with the like-minded people who
look for more than just tangible offerings from the brand. This
emotional connection further helps the brand to develop more
meaningful brand interactions and start with customer powered
marketing strategies like word of mouth marketing, loyalty
marketing, etc.
 Eases Communication: Having a personality makes it easy for
the brand to communicate effectively with the customers mostly
because the customers can relate to the traits that they possess
with the personality traits that the brand has.

The Aaker Model: Brand personality dimensions

The Brand Personality Framework was developed by Stanford marketing
and brand expert Jennifer L. Aaker. In a seminal article published in the
1997 Journal of Marketing Research, she provides a structure for thinking
conceptually about brand personality through a five-dimensional model[3].
These dimensions are:

 Sincerity: this personality type tends to be ethical, trustworthy, and

down-to-earth, such as Patagonia
 Excitement: these brands are often bold, creative, and spirited, like
Red Bull or Tesla.
 Competence: brands that fall into this personality type are intelligent
and reliable. Think Volvo or Microsoft.
 Sophistication: these brands, like Chanel or Apple, are often upper-
class, glamorous, and charming.
 Ruggedness: rugged brands like Harley-Davidson and Land Rover
tend to be outdoorsy and tough

A brand’s personality features further define each dimension with more

nuance, and it is this resulting mix of traits that distinguishes and identifies
a brand.

When determining where your brand fits on the brand personality spectrum,
the goal is to discover the personality traits and characteristics that are
aligned with your brand’s positioning, purpose, and values.
Brand positioning:

Brand positioning refers to the unique value that a brand presents to its customer. It
is a marketing strategy brands create to establish their brand identity while
conveying their value proposition, which is the reason why a customer would prefer
their brand over others. Additionally, brand positioning is used when a company
wants to position themselves in a certain way to their audiences in order for
customers to create associations between the brand and its value proposition.

What is a brand positioning statement?

A brand positioning statement is an internal positioning summary that companies use

to articulate and promote the value their brand brings to a target market and their
customers. It is used as a way to articulate a brand’s value proposition in a succinct
way. Typically, brand positioning statements are part of a brand’s larger marketing
strategy - and these statements should be a balance of both aspiration and reality.

When creating a brand positioning statement, it is important to consider the

following:

 Who is the target market or customer?

 What is your product or service category?
 What is the greatest benefit and impact of your product or service?
 What is the proof of that benefit and impact?

By answering these questions within a brand positioning statement, companies are

distributing a clear value proposition that sets them apart from competitors, but more
importantly provides their brand’s value to customers.

Why is brand positioning important?

Brand positioning is important for a company to have a clear way to share the value
their brand brings to customers. This happens both internally through a brand
positioning statement and externally through various marketing strategies to which a
brand positioning statement ladders up. Brands should address who their customer
is and their value proposition within their brand positioning statement to maintain
relevancy while being realistic.

With Sponsored Display audiences on Amazon, advertisers can share their unique
brand insights in order to connect their display advertising strategy with their brand
positioning.

How do you create a brand positioning strategy?

There are various ways through which companies can create and scale out a brand
positioning strategy, depending on the size, mission, and segment of the brand.
 1. Understand how your brand is currently positioning itself.
2. Determine your unique value proposition.
3. Identify your competitors and their positioning.
4. Create your positioning statement.
5. Evaluate and test whether your positioning works.
6. Reinforce your brand’s differentiating qualities.

The above steps are intended to help brands dive deep into what differentiates their
brand while illustrating the unique value customers will gain from the brand’s product
or service. By focusing on what brands can offer to their target market, they can
create an impactful brand positioning strategy that resonates with customers.

Examples of brand positioning

Let’s take a look at some iconic brands that have effectively leveraged brand
positioning as part of their marketing strategy to reach their target market.

McDonald’s brand positioning

McDonald’s sets itself apart by promoting its customers both exceptional service and
consistency among its food products, across its many locations. The company’s
dedication to delighting its customers through subliminal customer satisfaction and
dedication to improving its operations is received through the way the brand
positions itself.

Dove’s brand positioning

Through its personal care products, Dove sets itself apart by focusing on the natural
and real beauty of women. Their brand positioning strategy emphasizes the way in
which all women can embrace their authentic self through the use of their products.
Dove utilizes brand campaigns and other marketing tactics to position themselves in
an impactful way while resonating with their customers.

Disha Publication’s brand positioning

Disha Publication is a dominant player in the publication world and has positioned
their brand on Amazon, through sponsored ads, to become a trusted name for a
wide range of academic disciplines. With sponsored ads, Disha Publication’s sales
skyrocketed, ultimately, strengthening their brand positioning on Amazon.
Characteristics Of A Good Brand
Positioning Strategy

Relevant
The positioning strategy you decide should be relevant according to
the customer. If he finds the positioning irrelevant while making the
purchase decision, you’re at loss.

Clear
Your message should be clear and easy to communicate. E.g. Rich
taste and aroma you won’t forget for a coffee product gives out a clear
image and can position your coffee brand differently from competitors.

Unique
A strong brand positioning means you have a unique, credible, and
sustainable position in the customers’ mind. It should be unique or it’s
of no use.

Desirable
The unique feature should be desirable and should be able to become
a factor which the customer evaluate before buying a product.

Deliverable
The promise should have the ability to be delivered. False promises
lead to negative brand equity.

Points of difference
The customer should be able to tell the difference between your and
your competitor’s brand.
Recognizable Feature
The unique feature should be recognizable by the customer. This
includes keeping your positioning simple, and in a language which is
understood by the customer.

Validated by the Customer

Your positioning strategy isn’t successful until the time it is validated
by the customer. He is the one to decide whether you stand out or
not. Hence, try to be in his shoes while deciding your strategy.

Types of Positioning
A positioning strategy depends on many factors which include current
market conditions, your product, USP of your product, competitors,
their products and the USPs of their products. Marketers plan of how
they want their product to be seen by the customers in future also
plays a vital role in deciding which type of positioning strategy to
choose.

While there are numerous position strategies in marketing to choose

from. The task for the marketers is to complement their promise to the
product features they have to offer.

Value-Based Positioning
Value-based brand positioning strategy positions the brand based on
the value the customers get on buying or consuming the brand’s
offerings.

In simple terms, this type of brand positioning is chosen to position the

brand based on its value proposition.

This value often relates to the customer-centric tangible benefits like

getting the work done, making things easier, etc.
A perfect example of a company using the value-based positioning is
DuckDuckGo – the search engine which doesn’t your data, unlike
Google.

Features-Based Positioning
When the competition is huge and the products are similar,
companies usually position their products by focusing more on
product-specific features like price, quality, or other micro features
depending on the product sold. This type of positioning strategy is
also called USP-focused positioning and is often seen in the mobile
industry.

Problem And Solution Based Positioning

Most of the brands focus on positioning their products as a one-stop
solution for a specific problem. They pinpoint the pain areas and the
challenges the consumers face in their communication and other
marketing strategies and mend it into promoting their product.

Lifestyle Positioning
By positioning itself as a lifestyle brand, a brand tries to sell an image
and identity rather than the product. The main focus is to associate
the brand with a lifestyle and focus is more on the aspirational value
than the product value. Cigarette, Alcohol, and Tabacco companies
are often seen to use lifestyle positioning while marketing their
products.

Parent Brand Driven Positioning

This positioning strategy aims at establishing a brand promise and a
reputation of the parent brand. All the products and sub-brands under
the parent brand seem to comply with the established promise.
Experience-Based Positioning
Experience-based positioning refers to positioning the offering based
on the experience the customer gets while buying or consuming it.

The main focus is on to developing a unique experience for the

customer which differentiates the offering from the competition.

Restaurants, hotels, and other service-based operators use this type

of brand positioning strategy.

What Is Brand Leveraging?

Brand leveraging refers to taking advantage of an existing brand name to gain
support and popularity while entering a new but relatable product category.
Leveraging the brand can help you only when you enter a similar product
category.

For example, you have a reliable company providing the best quality coffee
beans in the market, and your audience loves it. Then, you decide to enter into
the market of manufacturing and selling coffee maker machines as well. An
excellent relationship between the products and the audience is also similar.

Thus, the audience also prefers to purchase new products from your brand
and this is also called umbrella branding for a brand. Because they have a
good experience with your existing brand quality and delivery. However, you
have to maintain the quality of your new launches because some
disappointment can change the entire perception of a customer towards your
brand.

Brand Leveraging Strategy

Enter Into The Similar Field

Before leveraging a brand, you must enter into a similar field. This step will let
you have all the benefits of existing branding & create a brand positioning
map.

Remember the example of a coffee beans company. If you also offer similar
products, you will have the required customer base, trust factor, connections,
and much more. Thus, find your next business near your previous one to have
the most of the possible advantages.

Count All Of Your USPs

Secondly, you have to break the mindset of not being required to build great
products with quality if you already have existing branding. It can never be the
case. You must create the best possible outcome and write down all its USPs
(Unique Selling Proposition).

When you showcase all of your mighty USPs to your audience, they will find
you creating more valuable products than the other companies in the market.
Thus, it is essential to create a worthy product.
Maintain The Quality

Though you have a lot of benefits if you have an existing successful brand, it
has some downgrades if you fail to maintain the quality of your product.
Brand leveraging meaning is to use the credibility of an existing brand to
boost your new one.

Thus, it also indicates that if you don’t maintain the quality like the previous
one, you are also putting your previous brand’s credibility in danger. Because
customers need only one disappointing moment to break their trust in any
brand, all we will say at last is you have to maintain the quality even better
than the previous one.

Leverage The Existing Credibility Through The Marketing

Now, the mainstream role of brand leveraging strategy comes into action.
When you showcase all your points in your marketing and your existing
credibility, you will get a lot more exposure and appreciation than you could
without it.

Create a strategic brand development plan, which helps in getting customers’

trust, and you will get significant sales in the initial launching phase too. Every
successful company brand has its own separate loyal customer base list, and
you can also use that.

Inform Your Loyal Customer Base About Your New Launch

Once you are done with all the essential preparations, you should inform your
loyal audience base about your new launch. They will become your biggest
supporter if they find everything well and generously. It will bring you sales.
After this point, your brand leveraging remains with nothing to contribute
further. Your newly launched products have to bear all the responsibility.

Use Your Existing Connections

In the end, since you’re in a similar industry, you will also have the required
business connections, which will help you to promote your products more and
 get more genuine sales and revenue. Having existing relationships is a
blessing for any business. And, here, you can freely use that blessing.

What do you mean by brand equity?

Brand equity is the value of a brand, determined by the

consumer's perception of its quality and desirability. It is
based on factors such as the brand's recognition, customer
loyalty, and customer satisfaction. Brand equity is a key
factor in a company's success, as it can influence consumer
decisions, marketing strategies, and potential partnerships.

What are the 4 elements of brand equity?

 Brand Awareness: Recognition of the brand by customers

and potential customers.
 Brand Loyalty: Customers’ willingness to purchase from the
same brand over time.
 Perceived Quality: The level of perceived quality associated
with the brand.
 Brand Associations: The values and attributes associated
with the brand.
Published by MBA Skool Team, Last Updated: July 02, 2022

What is Brand Equity?

Brand Equity is a qualitative measure of the brand’s positive recognition or goodwill
in the minds of the consumers considering the brand as an independent
entity. Brand Equity is the tangible and intangible worth of a brand. The degree of
premium that a brand can charge on its offering is a direct measure of the equity it
possesses with its customers. Brand Equity is kind of power that the brand has over
its competitors or the generic brands and is developed over time. It represents the
overall value of the brand in the market.

Brand equity can be said to be coming from the aggregate worth of the following
constituents in the minds of its consumers:
Importance of Brand Equity
Brand Equity is quite important in the fact that it helps one brand gain importance
and additional revenue as when compared with the competitor. Brand Equity is a
complex parameter which takes into account a lot of parameters like brand image,
brand identity, brand awareness, brand loyalty, brand association etc. It is mainly
subjective and qualitative but can be represented quantitatively.

Brand Equity is driven by marketing strategy & efforts over the years and
consistency which results in customer perception and brand knowledge which may
be positive or negative. Positive perception would result in increase in brand equity.
Effectively communicating the product benefits to the customers helps in brand
building. Companies spend huge sums of money in advertising using integrated
marketing communications (IMC) channels to promotes its goods & services.
Elements & Components of Brand Equity
Brand equity is a function of several other qualitative parameters which a customer
can associate with a brand.
Some of the main components or elements of brand equity are as follows:
1.Brand Image
The image which is formed in customer's mind. Brand image is the most important
parameter when it comes to creating brand equity.
2.Brand Identity
The image what the company is trying to form. Brand identity is created by the
company to try to form positive brand image but it depends on how customers
perceive.
3.Brand Awareness
Awareness is what is the level of awareness about a brand on products and
services. Awareness should be high for good brand equity.
4.Brand Loyalty
How loyal is customer to the brand and will buy the products again even if options
are there.
High brand switching can lead to less brand equity.
5.Brand Association
Does the customer associate brand to a positive attributes or not? Sometimes
association something existing like event or celebrity can contribute to brand equity.
6.Customer Perception
What is the overall perception and experience of the customer related to the brand?
Since brand equity gives a qualitative outlook, it is quite complicated to define it
through numbers or a value.

Steps to Calculate & Measure Brand Equity

Brand equity is a subjective concept based on customer & market perception.
Measuring brand equity can be done by both qualitative research as well as
quantitative research. Brand Equity can be measured on the basis of three important
parameters which are:
1.Consumer Metrics
This measure of brand equity focuses on evaluating brands & products on the basis
of factors like customer perception, attitude, belief, brand association etc.
2.Financial Metrics
Financial factors like revenue, profits, cost of new acquisition, growth, market share
etc. help in measuring brand equity.
3.Strength Metrics
The strength of the brand in terms of brand recall, brand awareness, brand loyalty
etc. are used in the measurement of brand equity.
All the above data can be collected by marketers using consumer research where
customers can be given surveys or questionnaires to have their feedback.
Qualitative feedback can be open-ended and other factors can be given weights
which can help in the calculation of overall brand equity. Creating brand equity is a
gradual process & takes years of efforts in establishing a particular brand image or
perception in the mind of the consumer.

Example of Brand Equity

Some examples of brand equity are as follows. Consumers pay more for a Garnier
beauty product than another local product. A brand can also have negative equity in
cases where it does not fit well with its consumers. As an example, Tata Nano users
reported some fire incidents with the product which led to its negative equity for a
while.
Since brand equity is based on several parameters like brand image, brand identity,
customer perception etc., it is primarily a qualitative parameter for a brand or
company.
What Is Digital Marketing?
The term digital marketing refers to the use of digital channels to market
products and services in order to reach consumers. This type
of marketing involves the use of websites, mobile devices, social media,
search engines, and other similar channels. Digital marketing became
popular with the advent of the internet in the 1990s.

Digital marketing involves some of the same principles as traditional

marketing and is often considered a new way for companies to approach
consumers and understand their behavior. Companies often combine
traditional and digital marketing techniques in their strategies. But it comes
with its own set of challenges, including implicit bias.

Types of Digital Marketing Channels

As noted above, marketing was traditionally done through print
(newspapers and magazines) and broadcast ads (TV and radio). These
are channels that still exist today. Digital marketing channels have evolved
and continue to do so. The following are eight of the most common
avenues that companies can take to boost their marketing efforts. Keep in
mind that some companies may use multiple channels in their efforts.

Website Marketing
A website is the centerpiece of all digital marketing activities. It is a very
powerful channel on its own, but it’s also the medium needed to execute a
variety of online marketing campaigns. A website should represent
a brand, product, and service in a clear and memorable way. It should be
fast, mobile-friendly, and easy to use.
Pay-Per-Click Advertising
Pay-per-click advertising enables marketers to reach Internet users on a
number of digital platforms through paid ads. Marketers can set up PPC
campaigns on Google, Bing, LinkedIn, Twitter, Pinterest, or Facebook and
show their ads to people searching for terms related to the products or
services.

These campaigns can segment users based on

their demographic characteristics (such as by age or gender), or even
target their particular interests or location. The most popular platforms are
Google Ads and Facebook Ads.

Content Marketing
The goal of content marketing is to reach potential customers through the
use of content. Content is usually published on a website and then
promoted through social media, email marketing, search engine
optimization, or even pay-per-click campaigns. The tools of content
marketing include blogs, ebooks, online courses, infographics, podcasts,
and webinars.

Email Marketing
Email marketing is still one of the most effective digital marketing
channels. Many people confuse email marketing with spam email
messages, but that’s not what email marketing is all about. This type of
marketing allows companies to get in touch with potential customers and
anyone interested in their brands.

Many digital marketers use all other digital marketing channels to add
leads to their email lists and then, through email marketing, they create
customer acquisition funnels to turn those leads into customers.

Social Media Marketing

The primary goal of a social media marketing campaign is brand
awareness and establishing social trust. As you go deeper into social
media marketing, you can use it to get leads or even as a direct
marketing or sales channel. Promoted posts and tweets are two examples
of social media marketing.

Affiliate Marketing
Affiliate marketing is one of the oldest forms of marketing, and the internet
has brought new life to this old standby. With affiliate marketing,
influencers promote other people’s products and get a commission every
time a sale is made or a lead is introduced. Many well-known companies
like Amazon have affiliate programs that pay out millions of dollars per
month to websites that sell their products.

Video Marketing
YouTube is one of the most popular search engines in the world. A lot of
users are turning to YouTube before making a buying decision, to learn
something, read a review, or just relax.

There are several video marketing platforms, including Facebook Videos,

Instagram, and even TikTok to use to run a video marketing campaign.
Companies find the most success with video by integrating it with SEO,
content marketing, and broader social media marketing campaigns.

SMS Messaging
Companies and nonprofit organizations also use SMS or text messages to
send information about their latest promotions or give opportunities to
willing customers. Political candidates running for office also use SMS
message campaigns to spread positive information about their own
platforms. As technology has advanced, many text-to-give campaigns also
allow customers to directly pay or give via a simple text message.

The following are some of the most common KPIs that marketers can use
to help companies achieve their goals:

 Blog Articles: Marketers can use this KPI to figure out how many
times a company publishes blog posts each month.
 Clickthrough Rates: Companies can use this KPI to figure out how
many clicks take place for email distributions. This includes the
number of people that open an email and click on a link to complete
a sale.
 Conversion Rate: This measure focuses on call-to-action
promotional programs. These programs ask consumers to follow
through with certain actions, such as buying a product or service
before the end of a promotional period. Companies can determine
the conversion rate by dividing successful engagements by the total
number of requests made.
 Traffic on Social Media: This tracks how many people interact with
corporate social media profiles. This includes likes, follows, views,
shares, and/or other measurable actions.
 Website Traffic: Marketers can use this metric to track how many
people visit a company's website. Corporate management can use
this information to understand whether the site's design and
structure contribute to sales.
 The definition of mobile marketing
Mobile marketing relates to any promotional activity that takes place on smartphones and
other handheld devices, including tablets and other cell/mobile phones. Mobile marketing
aims to reach an audience of mobile users through methods such as mobile-optimized
ads, push notifications and mobile applications.

Why is mobile marketing important?

In the US, 77% of Americans own a smartphone, according to Pew research. This research
also highlighted a year-on-year surge, with the growing trend predicted to reach 6.1bn users
by 2020. As such, mobile audiences are so numerous and active (with many only using
mobile devices) that to ignore them would be a missed opportunity. Mobile marketing is a
core component of an overall advertising strategy.

Types of mobile marketing

Mobile marketing ad formats vary, and appear on a range of different platforms, from social
media to mobile-optimized websites and mobile apps, all offering unique mobile ad options,
such as:
 App-based marketing: Mobile advertising which involves mobile apps. Ads hosted
on apps can differ, from banner ads to video, and increasingly advanced demos of
other apps too.
 Social media marketing: Both organic and paid ads which appear on mobile social
feeds can be great drivers of traffic. Social media sites such as Facebook, Twitter and
Instagram often boast the largest user bases or highly specific use cases.
 Location-based marketing: Mobile marketing takes advantage of the fact that many
users of mobile devices carry them wherever they go. As such, mobile marketers can
create ads that appear on mobile devices based on a user’s location relative to a
specific area. For example, some advertisers may only want their mobile ads to appear
when users are within a 1-mile radius of their business.
 Mobile search ads: Search engines often offer specific ad types built for mobile.
These can create unique benefits to offer an improved user experience, such as click-
to-call functions or instant directions.
 SMS: SMS marketing involves texting a user’s phone number with specific offers or
notifications of upcoming deals. Note that SMS marketing can also be location-based.

Advantages and Disadvantages of

Mobile Marketing
Mobile marketing allows you to reach highly targeted customer segments and
engage with them through relevant marketing campaigns. Advantages of
mobile marketing include:

 Accessible and Immediate – you can reach an audience from anywhere at

any time, the fastest way to communicate with customers
 Global Audience – people have mobile phones across the world, so you
can reach who you choose

 Multiple Channels – provides flexibility and opportunity to reach

customers through websites, apps, text, social media, and more

 Personalization – mobile devices are an extension of the user, so any

information customers receive from their mobile devices will seem much
more personal to the customer

 Viral Potential – content is easily shared creating free exposure and the
potential for your content to be shared everywhere

Mobile marketing also has some disadvantages including:

 Little Room for Error – hard to fix any mistakes before they are seen by
customers, potential for a negative first Potential for
 Bad User Experiences – bad ads can also go viral, which can be
detrimental to your business

 Navigation Issues – different devices have different screen sizes making it

difficult to standardize an image, some people may not want to or be able
to go to your ad with their type of device

 Privacy and Permission – people are concerned about privacy on their

mobile devices, so consider how customers protect themselves online and
offer ways to opt out of communications

 Constant Updates – technology is continually updated, so you will

constantly have to educate your team on how to use the latest updates
and ensure your customers also know how to access your ad with new
updates.