Use of Digital Marketing for increasing Sales and Market Share

An explorairtry on online shopping industry in Pakistan

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 Acknowledgement
I would like to express my deepest appreciation to all those who provided me the possibility to
complete this report. A special gratitude I give to our final year to my supervisor Sir Farook
Qaisor whose contribution in stimulating suggestions and encouragement helped me to
coordinate my project especially in writing this report.

In addition, I would like to thank my parents for their wise counsel and sympathetic ear. You
were always there for me. Finally, there are my friends, who were of great support in
deliberating over our problems and findings, as well as providing happy distraction to rest my
mind outside of my project.

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 ABSTRACT

Digital Marketers are moving forward and relying upon to spend through millions in internet
advertising in coming years more than TV, print advertisements and other conventional
publicizing media.
With the fast development in innovation, the internet is turning into a significant and one stop
point for consumers in discovering the vast majority of their shopping needs. In this project the
current study will investigated the effectiveness of internet advertising or promotion on
consumer in Pakistan.
The study sought to determine the effectiveness of internet advertising and promotion and on
reach and creation of awareness; to establish the reliability of internet advertising through
recall; and to determine the relationship between internet promotion and increase market
share in Pakistan.
The study found that internet advertising was effective on reach and creation of awareness due
to diverse usage, and established that its reliability as an advertising media was low compared
to TV. Internet advertising has significant relationship with purchase decision of the consumers
and therefore is a key determinant in influencing consumer behavior. The study determined
that there is a positive relationship between internet advertising and consumer purchase
decision and further recommends that companies should conduct a market research on the
different markets in various countries to ensure that the internet advertising initiatives being
implemented suits the targeted markets to improve product purchases.

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Contents
Background ................................................................................................................................................... 5
Promotion Concept ....................................................................................................................................... 6
The Concept of Digital Marketing ................................................................................................................. 6
Digital Marketing examples ...................................................................................................................... 7
Overview of Pakistan E-commerce industry ............................................................................................... 10
Pakistan top shelf online stores .................................................................................................................. 11
Daraz ....................................................................................................................................................... 12
Digital marketing strategy.............................................................................. Error! Bookmark not defined.

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Background

Internet has become common in very short period of time and it has grown rapidly in both its
applications and its users. It has been a very helpful tool for information sharing, comunication,
entertainment, education, and shopping. The radical change brought forth by information
technology has an important impact on the daily lives. It has changed the dynamics’ of the way
we do business by allowing sellers and retailers to offer maximum range of products and
services to every potential consumer from around the world. The Internet has also become
advertising platform for companies. Almost every company has turned towards the Internet to
advertise their products and services; and the Internet is consider to be the most important and
reliable tool for direct marketing channel for the global marketplace.
Companies are investing billions of dollars into digital marketing to obtain greater return on
investment on ads.
The Internet has given awareness to consumers of accessing information on products and
services. There are many reasons that contribute to consumers pull for online content.
Consumers have decision power, where, what, and how much commercial content they wish to
view .The Internet facilitates consumers to access an unlimited range of products and services
from companies around the globe, and it has minimized the time and effort they spend on
shopping.
Individuals play a much more active role in searching for information through internet with
some goal in mind, and that goal can support individual behaviors and engagements towards
online information and Ads. With the rapid advancement the internet industry, many
companies have made the Internet as part of their advertising media mix to take advantage of
the online technologies. The Internet has become a most important advertising platform
because marketers found that the Internet possess greater flexibility and control over the
advertising materials. Since the Internet can be used as an efficient marketing communication
tool, marketers are focusing on understanding how to take full advantage and maximizing the
value of this communication medium.

Over the years marketing strategies have evolved with technology leading to the internet
creating unprecedented opportunities for digital marketers to connect with customers to
create an immersive connected digital environment, influence and drive purchases, fuel new
growth and create new market share. The growth of internet advertising is both globally and
locally outpacing offline advertising. While outdoor advertising is also experiencing growth, it is
not growing as rapidly as Internet advertising. It is on this basis that the study investigated the
effectiveness of online advertising based on a consumer sample from University of Nairobi to
determine the relationship between advertising and consumer behaviour.

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Promotion Concept

Promotion is delivery of company message to target audiences that emphasizes the benefits of
your brand, products and services. Benefits of promotion include building brand awareness,
creating favorable brand attitudes, capturing market share, inducing buying, building loyalty
and increasing sales. To achieve its promotional goals, a company develops an effective
promotional mix, which is a combination of marketing strategies including advertising, personal
selling, sales promotion. In large companies, the marketing department determines the
promotional mix, establishes the budget, allocates resources, coordinates the campaign,
supervises any outside resources, and measures the results.
To promote a product to large retailers that sells its products, a manufacturer might want to
use a mix of personal selling, advertising, and buying discounts. This is
known as the push policy. (The manufacturer pushes the product to the retailer.) The
same manufacturer might use a different promotional mix of local and national
advertising, in-store displays, sales promotion, and public relations to reach
consumers. The pull policy directs promotions towards the consumers. It is used to
create customer interest and demand. This study focuses on advertising as one of the
strategies in the promotional mix used by companies within Kenya.
Advertising is the communication relayed from companies to persuade an audience to
purchase their products. This communication is usually through various forms of paid
media -- TV and radio commercials, print ads, billboards and more recently, product
placements, social media and online ads. Ads are placed where advertisers believe
they will reach the largest, most relevant audience. Commercial businesses within
Kenya e.g. Unilever, Safaricom use advertising to drive the consumption of their
product, while non-profit organizations may place ads to raise awareness or
encourage a change in behavior or perception.

The Concept of Digital Marketing

Digital marketing is the marketing of products or services using digital technologies on the
Internet, mobile phones, display advertising, and any other digital medium. Digital Marketing is
a form of promotion of your product, brand, services etc by using internet and specific tools for
purpose of delivering marketing messages to attract customers.
Examples of Digital marketing include contextual ads on search engine results pages, banner
ads, Rich Media Ads, Social network advertising, online classified advertising, advertising
networks and e-mail marketing. Attractive videos of your specific product or service you are
promoting. 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.

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Digital Marketing examples

 Search Engine Optimization (SEO)

 Content Marketing
 Social Media Marketing
 Pay Per Click (PPC)
 Affiliate Marketing
 Native Advertising
 Marketing Automation
 Email Marketing
 Online PR
 Inbound Marketing

Search Engine Optimization (SEO)

This is the process of optimizing your website to show higher in search engine
results, It drives potential audience into your store by targeting right keywords

The channels that benefit from SEO include websites, blogs, and infographics.

On page SEO: This type of SEO focuses on your website which content is on it
and what your website is about.
Off page SEO: This type of SEO focuses on all of the activity that takes place
off your site.It is how much other sites refer your site or how much relevant
back links on other sites.
Content Marketing

Creating and promotion of content assets for the purpose of generating brand
awareness, potential traffic growth and customers.

Content marketing channel are:

Blog posts: Writing and publishing articles on a company blog helps you
demonstrate your industry expertise and generates organic search traffic for
your business. This will gives you more opportunities to convert online store
visitors into leads for your sales team.

Ebooks and whitepapers: Ebooks, whitepapers, and similar long-form content

helps further educate website visitors. It also allows you to exchange content
for a reader's contact information, generating leads for your company and
moving people through the buyer's journey.

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Infographics:
It is type visual form of message that is converted to the user
some time users needed some kind of visual message to understand the
product so in this visual and content are mixed to deliver a understandable
message to the visitor.
Social Media Marketing

This is platform which promotes your brand and your content on social media
channels to increase brand awareness, drive traffic, and generate sales for
your business. The channels you can use in social media marketing include:

 Facebook.
 Twitter.
 LinkedIn.
 Instagram.
 Snapchat.
 Pinterest.
Pay Per Click (PPC)
PPC is a method of driving traffic to your website by paying a publisher every
time your ad is clicked. One of the most common types of PPC is Google Ads,
which allows you to pay for top slots on Google's search engine results pages
at a price "per click" of the links you place. Other channels where you can use
PPC include:
Paid ads on Facebook: It is a Paid advertisement where customer can customize
a video, image post, or slideshow, which Facebook will publish to the
newsfeeds of relevant audience.
Twitter Ads campaigns: Here, users can pay to place a series of posts or profile
badges to the news feeds of a specific audience, all dedicated to accomplish
a specific goal for your business. This goal can be website traffic, more Twitter
followers, tweet engagement, or even app downloads.
Sponsored Messages on LinkedIn: Here, users can pay to send messages directly to
specific LinkedIn users based on their industry and background.
Affiliate Marketing

This is a type of performance-based advertising where you receive

commission for promoting someone else's products or services on your
website. Affiliate marketing channels include:

 Hosting video ads through the YouTube Partner Program.

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 Posting affiliate links from your social media accounts.
Native Advertising
Native advertising refers to advertisements that are primarily content-led and
featured on a platform alongside other, non-paid content. BuzzFeed-
sponsored posts are a good example, but many people also consider social
media advertising to be "native" -- Facebook advertising and Instagram
advertising, for example.
Email Marketing

Companies use email marketing to stay in in touch with their existing

customers. Email is often used to promote content, discounts and events sale,
as well as to direct people toward the business's website. Email marketing
champions include:

 Blog subscription newsletters.

 Follow-up emails to website visitors who downloaded something.

 Customer welcome emails.
 Holiday promotions to loyalty program members.
 Tips or similar series emails for customer nurturing.
Online PR

Online PR is the practice of securing earned online coverage with digital

publications, blogs, and other content-based websites. It's much like
traditional PR, but in the online space. The channels you can use to maximize
your PR efforts include:

Reporter or blogger outreach via social media: Talking to journalists or bloggers

on social media, for example, is a great way to develop a relationship with
hose who has followers they can charge for your for your company or brand
discussion in their blog or videos ,this is one f the vast way to reach potential
audience.
Engaging online reviews: When any individual reviews about your store,
whether the review is positive or negative, engaging with company reviews
helps you humanize your brand and deliver powerful messaging that protects
your reputation.

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Inbound Marketing
Inbound marketing refers to a marketing methodology where you engage, and
delight customers at every stage of the buyer's buying journey. You can use
every digital marketing tactic listed above, throughout an inbound marketing
strategy, to create a customer experience that works with the customer,
not against them. Here are some classic examples of inbound
marketing versus traditional marketing:
 Blogging vs. pop-up ads
 Video marketing vs. commercial advertising
 Email contact lists vs. email spam

Effectiveness of Digital Marketing

Most entrepreneurs think of marketing of superstition, rather than a science. That’s why they constantly battle on
whether to spend money on marketing efforts or not. To justify your marketing budget, and turn marketing from
superstition into a science, you need ways to measure these efforts.With the ability to measure marketing
campaigns, you have evidence on what works as well as where you need to focus your attention and resources.
Here are 5 metrics you can measure in your digital marketing efforts.

Return on Investment

The return on investment (ROI) is perhaps the most important measurement in your digital marketing campaign. It
answers the question of whether your digital promotion efforts are working. By measuring ROI, you get to know
whether new leads gained through digital marketing lead to new sales.In the strictness of sense, ROI as a Key
Performance Indicator (KPI) helps attribute increased sales to digital marketing efforts. If your ROI indicates there’s
a direct correlation of new sales to online marketing efforts, you know your efforts are paying off.To calculate your
digital marketing ROI, divide your total revenue realized from digital marketing and divide it with the total cost of
your digital marketing expenditure. The resulting figure should help focus your marketing team and avoid any
unnecessary conflicts.

Conversion Rate
Another KPI you want to track is the conversion rate of your various channels. The conversion rate is an indicator
of the percentage of people completing the desired action on a digital advertisement or call to action. For instance,
an action in a search engine advertisement would be the user entering their email address in a website form.
Another action can be clicking on the purchase button on a website.Tracking conversion rates help you get a sense
of the performance of your marketing campaign. You get to evaluate how effective your digital marketing
campaign is in making viewers complete an action.For instance, your conversion rate tells you how well your
display advertisement is working. If you it gets a thousand visits, but only two of the visitors complete the action,
you’ll know there’s something wrong with the advertisement. You can then take steps to change various elements
to see if the conversion rate goes up.While most people tend to give a lot of attention to the conversion rate of
their websites, it is equally important to monitor and measure the conversion rates of other mediums as well. That

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is, measuring the conversion rate on your display advertisement, social media campaigns, and email marketing
efforts push your digital marketing success significantly further.It is only by measuring conversion rates across your
digital marketing mediums that you are able to tweak each to get the desired result, which then leads to greater
sales.

Overview of Pakistan E-commerce industry

The first online store was started in 2001 by the name of Beliscity and even
though it no longer exists, other stores which are started very early such as
Shophive (2005), Symbios (2006) and HomeShopping (2008) still do.
In 2012 Rocket Internet to entered the Pakistani market. In their six months they
had already launched three ventures namely Kaymu, Daraz and FoodPanda.
After that many online stores took place even the local brands started their online
stores. With the development of internet and awareness amoung individuals in
Pakistan people are exploring new horizons and expanding their businesses.
Pakistan’s e-commerce market almost doubled 2017-18 as digitalization paved
the way for the services sector to increase its contribution to the gross domestic
product (GDP) from 52% to 60%, according to the State Bank of Pakistan (SBP).
Sales of local and international e-commerce merchants reached Rs40.1
billion in FY18 compared with Rs20.7 billion in FY17, an encouraging
growth of 93.7%.
Online selling is helping online sellers to set up easier business systems. For
example, a conventional exchange would involve multiple channels such as
producers, transporters, wholesalers, retailers and consumers whereas e-
commerce allows the possibility to eliminate the middle parties, thereby allowing
direct dealing between buyers and suppliers.
Pakistan has got 152 million mobile phone users, almost 73% of the total
population of 207 million, out of which 59 million are 3G/4G subscribers with
total internet subscribers at 62 million.

Pakistan top shelf online stores

I. Daraz
II. Export left over
III. Homeshopping
IV. Mega.pk
V. Yavo

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Daraz

Daraz is a Chinese-owned online B2C portal which operates in Pakistan. It was founded by
Rocket Internet in 2012. Daraz Group provides a platform for Pakistani sellers and bring
potential customer into their stores by digital marketing and bringing right ad to right
customer.In May 2018, Daraz Group was purchased by Chinese company Alibaba Group.

Export left over

Elo is of young entrepreneur by Umar farook who won award of most grossed sales of 2018 of
apparel division online in Pakistan it is a family's textile business and created an E-Commerce
website called Export Leftovers (elo) that sold garments made in their family's factories to the
Pakistanis online. What began with a 2 member team in December2013 eventually grew to become
one of the biggest ecommerce stores in Pakistan and now works with over 100 factories across
Pakistan, Bangladesh, China & Vietnam. elo has served more than half a million customers since its
inception and was recently featured in the top 100 startups of the country.

Summary
With the rapid development of the internet onlien shoppping become a new and widely used medium for
retailing.In oirder to undertand the the consumer the retailers need to know what influences the consumer

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