Unit 1: Introduction to Digital Marketing

UNIT 1: Introduction to Digital marketing • The New Digital world • Trends that are driving the Shifts
from traditional marketing practices to digital marketing practices • The modern digital consumer
and new consumer digital Journey • Marketing Strategies for the digital world – Latest Practices

What is digital marketing?

Digital marketing can be described as actively promoting products and services using digital
distribution channels as an alternative to the more traditional mediums such as television, print and
radio.

Some Facts:

• Today’s consumer is more cognizant of the marketing messages all around them, leaving
them more likely to tune out advertisements or other forms of marketing communication.
• In the “golden age” of television, an ad on one of the big three networks could reach 70
percent of the viewing audience.
• According to Seth Godin (author of Permission Marketing) today’s consumer receives
roughly one million marketing messages a year on average.

History
• The term Digital marketing was first used in the 1990s, but digital marketing has roots in the
mid-1980s,

• when the SoftAd Group, now ChannelNet, developed advertising campaigns for automobile
companies: People sent in reader reply cards found in magazines and received in return floppy
disks that contained multimedia content promoting various cars and free test drives
 • In yr 2000 a survey in the United Kingdom found that most retailers had not registered their
own domain address.

• Digital marketing became more sophisticated in the 2000s and the 2010s, when the
proliferation of devices' capability to access digital media at almost any given time led to great
growth.

• Statistics produced in 2012 and 2013 showed that digital marketing was still a growing field.

•Digital marketing is often referred to as 'online marketing', 'internet marketing' or 'web

marketing'.

• The term digital marketing has grown in popularity over time, particularly in certain countries.
•In the USA online marketing is still prevalent. In Italy, digital marketing is referred to as web
marketing.

•In the UK and worldwide, however, digital marketing has become the most common term,
especially after the year 2013.

New Digital world

• Digital media growth is estimated at 4.5 trillion online ads served annually with digital media spend
at 48% growth in 2010.

• An increasing portion of advertising stems from businesses employing Online Behavioural

Advertising (OBA) to tailor advertising for internet users.

• But OBA raises concern of consumer privacy and data protection.

TRADITIONAL MARKETING CONCEPT

Mass Marketing One-to-One Marketing

Average customer Individual customer
Customer anonymity Customer profile
Standard product Customized market offering
Mass production Customized production
Mass Distribution Individualized distribution
Mass Advertising Individualized Message
Mass promotion Individualized incentives
One-way message Two way message
Economies of scale Economies of scope
Share of market Share of Customer
All customers Profitable customers
Customer attraction Customer retention
Trend change of marketing
• In an ever more complex Retail environment, customer engagement is essential but
challenging.
• Retailers must shift from a linear marketing approach of one-way communication to a
value exchange model of mutual dialogue and benefit-sharing between provider and
consumer.
• Exchanges are more non-linear, free flowing, and both one-to-many or one-on-one.
• The spread of information and awareness can occur across numerous channels, such as
the blogosphere, YouTube, Facebook, Instagram, Snapchat, Pinterest, and a variety of other
platforms.
• Online communities and social networks allow individuals to easily create content and
publicly publish their opinions, experiences, and thoughts and feelings about many topics
and products, hyper-accelerating the diffusion of information.

The Nielsen Global Connected Commerce Survey -Results

• conducted interviews in 26 countries to observe how consumers are using the Internet to
make shopping decisions in stores and online.
• Online shoppers are increasingly looking to purchase internationally, with over 50% in the
study who purchased online in the last six months stating they bought from an overseas
retailer. • Retailers are increasingly focusing on their online presence, including online shops
that operate alongside existing store-based outlets.
• The "endless aisle" within the retail space can lead consumers to purchase products online
that fit their needs while retailers do not have to carry the inventory within the physical
location of the store.
• Solely Internet-based retailers are also entering the market; some are establishing
corresponding store-based outlets to provide personal services, professional help, and
tangible experiences with their products.
• Using an Omni-channel strategy is becoming increasingly important for enterprises who
must adapt to the changing expectations of consumers who want even-more sophisticated
offerings throughout the purchasing journey.
• An Omni-channel approach not only benefits consumers but also benefits business bottom
line as Research suggests that customers spend more than double when purchasing through
an omni-channel retailer as opposed to a single-channel retailer, and are often more loyal.
This could be due to the ease of purchase and the wider availability of products.
• Customers are often researching online and then buying in stores and also browsing in
stores and then searching for other options online.
• Online customer research into products is particularly popular for higher-priced.
• Consumable goods like groceries and makeup eg : grofers and grocersmax.
• Consumers are increasingly using the Internet to look up product information, compare
prices, and search for deals and promotions.
• Word of mouth communications and peer-to-peer dialogue often have a greater effect on
customers, since they are not sent directly from the company and are therefore not
planned.
• Customers are more likely to trust other customers’ experiences.
• It is increasingly advantageous for companies to utilise social media platforms to connect
with their customers and create these dialogues and discussions.
• The potential reach of social media is indicated by the fact that in 2015, each month the
Facebook app had more than 126 million average unique users and YouTube had over 97
million average unique users.

Trend change in Marketing

Digital Marketing-All valued Customer

Marketing Automation
 Digital Marketing Advantage
1. The use of digital marketing allows for brands to market any products and services.
2. Allows for online customer support through 24/7 services to make customers feel
supported and valued all the time Eg : flipkart , Shopclues , Paytm
3. The use of social media interaction allows brands to receive ratings for Product and
services from their customers.
4. Helps in determining what media platforms work well for them Eg: Facebook , Twitter.
5. Digital marketing for Branding of Businesses like for (B2B- Sulekha , Justdial )and
(B2Cfilpkart, snapdeal, shopclues and Paytm mall)
6. Post feedback online through social media sources, blogs and websites on their
experience with a product or brand eg Comment on Ucnews and youtube.
7. To have direct contact with the customers and vis a vie manage the comments they
receive appropriately through social media channels.

UNDERSTANDING DIFFERENT ‘DIGITAL CONSUMERS THE SIX TYPES

OF DIGITAL CONSUMERS FROM SCOTT VALENTINE
• Almost half (48 per cent) of all purchases are heavily influenced by digital media and
advertising.
• The research groups examined more than 168,000 purchases of consumer electronics,
where the consumer used digital media in at least one step. The goal of this was to find
where consumers go online to make their purchases, and why they go there.
• The motivation for the insights were to understand how consumers continue to
incorporate digital media into their purchase process, exploring which sites and technology
consumers use in the process of making both online and in-store purchases and
• Why of all the consumers who utilized digital at least once in their purchase pathway, six
distinct segments emerged. The segments, as identified by GroupM Next, are said to be:
1. Digitally Driven Segment
2. Calculated Shoppers
3. Basic Digital Consumers
4. Retail Scouts
5. Brand Scouts
6. Eternal Shoppers

Types of Digital Consumers Explanation and Percentage Allocation

‘Basic digital consumers' (29 per cent) of digitally engaged shoppers
were identified as 'basic digital consumers'.
This group is comfortable with internet
shopping and research, but not mobile or
social, doing all their search on laptops and
desktops
‘Retail scouts' The second most common digital consumer
(22 per cent) were the 'retail scouts' who
 preferred to use retail sites to brand sites,
and also employed the use of mobile,
though it was twice as likely to be used at
home
‘Brand scouts' (20 per cent) who preferred a brand rather
than a certain retailer. Around 72 per cent
said they start their consumer journey with
a brand in mind.
Calculated Shoppers (11 per cent), who make use of a wide
range of tools and are willing to take the
time to secure the best deal.
External Shoppers (2 per cent) are non-mobile shoppers who
use social tools and have no urgency to
make a purchase.
‘Digitally driven shoppers’ (16 per cent) who used every digital tool at
their disposal, including search, retail and
brand sites, mobile, social, local and portal.

How are marketers adjusting?

• The goal for digital marketers is to focus on interactive elements, encouraging

consumers to participate in the marketing process.
• U.S. interactive marketing spending reached $150 billion in 2024, making up 70% of
all marketing spending, according to a report issued by Forrester Research.
Marketing Process
The market sensing process: All the activities involved in gathering market intelligence,
disseminating it within the organization, and acting on the information.
The new offering realization process: All the activities involved in researching, developing,
and launching new high quality offerings quickly and within budget.
The customer acquisition process: Al, the activities involved in defining target markets and
prospecting for new customers.
The customer relationship management process: All the activities involved in building
deeper understanding, relationships, and offerings to individual customers.
The fulfillment management process: All the activities involved in receiving and approving
orders, shipping the goods on time, and collecting payment.

Strategy for
• Website development that could be Static, Dynamic , Informative , Ecommerce Web portal
• Use of Superior technology like PHP , Asp.net , Ruby etc
• Making a SEO friendly site for Targeted Display (Audience in form of Digital customers)
• Adding Search Key words
• Website development followed by the SEO/PPC/SMO.
• Content Writing including the key words used for the SEO process
• Going for the Mobile friendly sites or preferably A
• Optimizing the Keywords and matching with the generic search
• Adding analytical tools for understating the various consumer behavior and making the
suitable product evolution.
• Adding intelligent analytics to establish reputation over the web portal in order to win
customer loyalty; Trust; Safe and Secure Practice.

Definitions
• SEO stands for Search engine optimization about trying to rank higher in search
engines. To rank higher you make changes to your website content that make it
easier for search engines to understand your content. Also, it can mean getting links
from other websites.
• Social media optimization (SMO) is the process of increasing the awareness of a
product, brand or event by using a number of social media outlets and communities
to generate viral publicity.
• Viral marketing : is a direct marketing technique in which a company persuades
internet users to forward its publicity material in emails (usually by including jokes,
games, video clips, etc) or a marketing strategy in which conventional media are
eschewed in favour of various techniques designed to generate word-of-mouth
publicity, in the hope of creating a fad or craze
What is Viral Marketing?
• Viral promoting, Viral advertising, or promoting buzz are buzzwords pertaining to
promoting techniques that use pre-existing social networking services and
alternative technologies to do to supply will increase in whole awareness or to
realize alternative promoting objectives (such as product sales) through self-
replicating Viral processes, analogous to the unfold of viruses or pc viruses (cf. web
memes and memetics). It are often delivered by word of mouth or increased by the
network effects of the net and mobile networks.
• Viral advertising is personal and, whereas returning from associate degree known
sponsor, it doesn’t mean businesses pay money for its distribution.
• Most of the well-known Viral ads current on-line ar ads paid by a sponsor company,
launched either on their own platform (company webpage or social media profile) or
on social media websites like YouTube.
• Viral marketing accelerates word of mouth online by harnessing the network effect
of the Internet. Viral marketing generates traffic via word-of-mouth i.e. encouraging
visitors to tell a friend. Email can also be used – inviting recipients to pass on the
message (whether text, animation or video) to a friend or colleague. Hotmail put a
message at the bottom of each email: GET YOUR FREE E-MAIL AT HOTMAIL.COM. It
spread to 11 million users in 18 months without any advertising.
• Email a friend is great for its simplicity and effectiveness. It involves a prompt next to
a small box to enter the email address of a friend or a colleague who might like to
receive the same message, article, web page or offer. It works well for both parties.
’email a friend’ is perhaps the safest and most effective example of viral marketing.
• Although similar to email a friend, this requires a site visit to pick up the postcard.
See how this technique is used by Freeserve to build traffic. Through a similar
technique, BlueMountain arts was so successful in building traffic it was acquired by
Excite for in excess of $1 billion.
• Games or software that can be used on site, or need to be downloaded as for the
screensaver, can generate word-of-mouth and if the experience is good enough, can
create massive traffic. The inventors of the ICQ chat software achieved over 32
million downloads in the first few years.
• Newsletters are powerful viral marketing tools. One of the easiest in the book. Many
newsletters ask readers if they want a friend or colleague to receive the newsletter
by either forwarding it themselves or, better still requesting an email address for a
friend or colleague.
• A stalwart of viral marketing of which the Guinness ‘Dancing Man’ is the best known
example, now followed by ‘Dancing Hamsters’ and ‘Dancing Babies’. An interesting
screensaver will be emailed to others and seen by many. Not only the preserve of
B2C. Screensavers are also used in B2B, for example, screensavers of construction
sites and setting concrete have been known to titillate engineers.
• Another approach to viral marketing is the email pyramid offer. This is frowned upon
by some who see it as a nuisance chain letter or even a pyramid selling technique. A
typical example is an offer of a free mobile phone if you email the message
promoting the phone to ten friends or colleagues.
• Affiliate campaigns, such as that used by Amazon, are considered by some to be viral
in that they use other sites to generate traffic which is referred back to Amazon.