BBA VI Semester

Assignment 1

Digital Marketing- BBA 304

Q1. What do understand by Digital Marketing? Discuss importance of the same.

Q2. Discuss Internet Microenvironment.

Q3. What are the Benefits of Digital Marketing? Explain.

Q4. Differentiate between Internet and Traditional Marketing Communication.

Q5. What is Internet Marketing Strategy? Discuss.

Q1 What do understand by Digital Marketing? Discuss importance of the same.

Ans Digital Marketing refers to the use of internet mobile devices social media search engines and
other channels to reach to customers to promote the products. In other words, it is the process of
building and maintaining customer strong relationship through online activities to facilitate the
exchange of goods services and idea to reach out the certain goal.

Importance of Digital Marketing

1. Cost-Effective
Digital marketing efforts require barely any initial investment. This is great for small
businesses. Most digital marketing tools offer basic features free of cost. It is up to the
businesses to make the best use of them. Check out the types of digital marketing tools.

2. High Reach
With digital marketing, the reach is global. Hence, you can take orders for your product
or service from all over the world and it need not be limited to one area. And when you
go global, you can still niche your audience to selected individuals. Thus, it’s a win-win.

3. Brand Awareness
If a customer has no awareness of your brand then he cannot make a conversion. To
tackle this, brand visibility is extremely important. With pay-per-click and other kinds of
paid promotions, you can really attract customers to your small business. We
recommend this Facebook and Instagram Ads online course to understand some more.

4. Building a Customer Base

The challenge with small businesses is that one needs to build a customer base. This is
based on building a rapport with a strong customer relationship. With CRM tools such
as HubSpot and Oracle, you can manage this easily.
The challenges for big businesses are slightly different. They need to retain existing
business and focus on brand reputation, client retention and on the growth of the
business.

5. Brand Image
An established company’s image is everything. The right campaign strategies can make
or break a company’s brand image. Through digital marketing, effective campaigns can
be designed and the scope fixing any glitches immediately is there.

6. Measurable Results
With digital marketing, big companies can have real-time measurable results. With this,
they can analyze the effectiveness of the campaign and accordingly formulate
strategies. Today, the significance of analyzing data is very important to evaluate the
effectiveness and success of your campaigns.
7. Increase in ROI
Companies can increase their revenue with digital media by investing in ads and thus,
increasing conversions. The investment in digital media is much lesser than traditional
media and the returns are also higher. Did you know? You can run ads on certain digital
platforms for as low as 1$.
Q Differentiate between Traditional and Internet Marketing
Communication

BASIS FOR TRADITIONAL INTERNET

COMPARISON MARKETING MARKETING

Meaning Traditional Marketing Digital Marketing implies the

refers to the marketing marketing of products and
that uses traditional services via digital
channels or media, for channels, such as the
the purpose of marketing internet, smartphone,
communication. display ads, and other
digital medium.

Return on Cannot be measured Can be measured easily.

Investment easily.

Effectiveness Less effective more Less expensive more

and expensive effective
expensiveness

Tracking Not possible Possible

Reach Local Global

Interruptions Consumers cannot skip Allows the consumers to

the ads, as they are avoid or skip the ads which
bound to see them. do not interest them.

Communication One-way Communication Two-way Communication

Q Discuss Internet Microenvironment
Internet Microenvironment Involves individuals or organizations that a firm deal with on a
regular basis as suppliers, customers, Intermediaries’ employees and competitors. They all have
direct interest in the activities of the firm and are clearly affected by its actions

Suppliers: can provide high quality of product at a good price. The supplier’s side by
accessing levels to the internet, propensity to use and integration with existing systems

Customers: (Oxygen of business) it is necessary to understand and supply what customer

need. Identify the buyer behaviour, where is to access customers online

Intermediaries: new capabilities, new intermediaries

Employees: relate to Human resources that are so important especially in the new field of
doing business through internet systems. It requires the capability to learn new think and act
fast. That help create competitive advantage for the company

Competitor: Keep an eye on competition

Q What is Internet Marketing Strategy? Discuss.
Internet marketing is the process of promoting a business or brand and its
products or services over the internet with the help of essential tools that
helps us to boost traffic, leads, and sales on the website. Tools Are:

1) Affiliate Marketing: Affiliate marketing is an advertising model in which

a company compensates third-party publishers to generate traffic or
leads to the company’s products and services. The third-party
publishers are affiliates, and the commission fee incentivizes them to
find ways to promote the company.

2) Email Marketing: Email marketing is the act of sending a commercial message,

typically to a group of people, using email. Every email sent to a potential or current customer
could be considered email marketing. It involves using email to send advertisements, request
business, or donations. Email marketing strategies commonly seek to achieve one or more of
three primary objectives, to build loyalty, trust, or brand awareness.

3) Social Media Marketing: Social media marketing is the use of social media
. Social
platforms and websites to promote a product or service.
media marketing provides companies with a way to engage with existing
customers and reach new ones while allowing them to promote their
Products Online.

4) Pay-per-click (PPC) : is an internet advertising model used to

drive traffic to websites, in which an advertiser has to pay the amount
of money which is set during the adv whenever the ad is clicked.

5) SEO: Search engine optimization is the process of improving the quality and
quantity of website traffic to a website or a web page from search engines. SEO
targets unpaid traffic rather than direct traffic or paid traffic.

6) Content Marketing: Content marketing is a form of marketing focused on creating,

publishing, and distributing content for a targeted audience online. This approach
 establishes expertise, promotes brand awareness, and keeps your business top
of mind when it's time to buy what you sell.

Q IMC

IMC is a strategic business process

used to plan, develop, execute brand
communication programs with
consumers, customers, prospects
employees and other relevant external
and internal audiences The goal of
IMC is to generate short-term financial
returns and build long-term brand
value.

Steps Of IMC
1. Identify your customers from behavioral data
Let’s start with this assumption: For education institutions, the customer is
the student.

Behavioral data: Tells us what customers do, how they act, and their history
in relation to our offering.

Demographic data: Tells us a customer’s age, location, gender, income, and

so on.

IMC is based on what people do. The key takeaway is that behavioral data is
going to yield better results over demographic data, every single time.
Aggregate your customers according to their behaviors first. After that,
enhance it with other types of segmentation.

2. Determine the financial value of your customers and prospects

Marketing is traditionally considered an organizational expense. However, an

IMC mindset requires us to look at marketing as an investment, a strategic
tool that influences incoming dollars.

To know what we can spend to attract new students, we must know the
financial value of our current students and prospects. This value becomes the
basis for marketing investment because customers drive revenue. Use this
value to set goals and determine what marketing actions to take.

3. Create and deliver messages and incentives

We can now set marketing goals that tie back to our institution’s financial
goals, and then create and deliver meaningful marketing communications to
prospects and customers.

Tie marketing objectives to financial outcomes using these two

components:

1. Delivery: Where do customers come into contact with your brand?

Where do they want to come into contact with your brand?
2. Content: What customer insights can you use to connect what your
brand wants to deliver with what your customer wants to acquire?
While a traditional marketing approach would require you to determine your
creative content first and then select the channel, IMC flips this process
around by asking first for an understanding of where your customers are.
With that knowledge, you can meet them there with content and messaging
that is grounded in customer insights.

4. Estimate the return on customer investment (ROCI)

Step four focuses on determining ROCI as a result of your marketing and

communications. This is the goal of IMC.

Wouldn’t you rather invest in marketing efforts that will yield the most loyal
and profitable customers? Prove to senior leaders that you can turn a $100
investment into $1,000 in customer revenue and you’ll never need to fight for
budget again.

How? Use:

• Analytics: descriptive, predictive

• Attribution: first, last, and multitouch
• Optimization: A/B tests, control groups

5. Budget, allocate, evaluate, and recycle

A true IMC approach requires that you budget at the end, which is the
opposite of how most college and university budgeting processes unfold.

Think like an investor and know important financial numbers: customer

acquisition cost, retention rate, and the difference between your short-term
and long-term returns.

Understand the three C’s:

• Contribution: dollars generated over time

• Commitment: how many dollars you get vs. the competition
• Champions: support, involvement, and advocacy of your brand
And now that you can prove IMC’s impact, you can truly evaluate the
effectiveness of your program and use that insight to plan for the future.
Remember that IMC is cyclical.

Q 7p’s of Marketing Mix

Product

Product refers to what you are selling, including all of the features, advantages and
benefits that your customers can enjoy from buying your goods or services. When
marketing your product, you need to think about the key features and benefits your
customers want or need, including (but not limited to) styling, quality, repairs, and
accessories.

You can use research and development to inform the development of new products in
your business.

Price

This refers to your pricing strategy for your products and services and how it will affect
your customers. You should identify how much your customers are prepared to pay,
how much mark-up you need to cater for overheads, your profit margins and payment
methods, and other costs. To attract customers and retain your competitive advantage,
you may also wish to consider the possibility of discounts and seasonal pricing.

Learn more about pricing your products.

Promotion

These are the promotional activities you use to make your customers aware of your
products and services, including advertising, sales tactics, promotions and direct
marketing. Generally these are referred to as marketing tactics.

Learn more about promotional activities.

Place

Place is where your products and services are seen, made, sold or distributed. Access
for customers to your products is key and it is important to ensure that customers can
find you.

You can set yourself apart from your competition through the design of your retail
space and by using effective visual merchandising techniques. If you are not a retail
business, place is still an important part of your marketing. Your customers may need a
quick delivery turnaround, or want to buy locally manufactured products.

If you are starting a new business, finding the right business location will be a key
marketing tactic.

People

People refer to the staff and salespeople who work for your business, including yourself.

When you provide excellent customer service, you create a positive experience for your
customers, and in doing so market your brand to them. In turn, existing customers may
spread the word about your excellent service and you can win referrals.

Give your business a competitive advantage by recruiting the right people, training your
staff to develop their skills, and retaining good staff.

Process

Process refers to the processes involved in delivering your products and services to the
customer. It is also about being 'easy to do business with'.

Having good process in place ensures that you:

• repeatedly deliver the same standard of service to your customers

• save time and money by increasing efficiency.

Learn more about business processes, procedures and standards.

Physical evidence

Physical evidence refers to everything your customers see when interacting with your
business. This includes:

• the physical environment where you provide the product or service

• the layout or interior design
 • your packaging
• your branding.

Physical evidence can also refer to your staff and how they dress and act.

Consider how your store's layout, fixtures and signage can build your brand and
increase your sales.

The 7 P’s of Online Marketing

Mix
7P's of the online marketing mix is a model for marketing decisions,
which incorporates the placement, promotion, pricing, products, and
more.

•
•
•
•

Online Marketing Mix

We will go through the 7 P’s online marketing that completely models
and expects every aspect of a marketing mix to be online and to apply
digital technologies to create a marketing mix for modern business.

A benefit of an online marketing mix in your business model is that

understanding every element of your marketing process enables us to
create better, highly functioning, and profitable businesses online.

To create and execute a proper digital marketing strategy, understanding

how different elements of an online marketing mix connects to your
business is essential.
How to use this information, you might ask? Every business model has
different requirements, while others can benefit directly from complete
online methods; others require a more mixed strategy to succeed.

In this article, we hope to give insight on how to build a business model

only through online methods. With a little modification, you can utilize
and implement it into your business model as well, even if it’s not a
100% online business.

First, we’ll go through what the traditional marketing mix is. Then we
will go through each of the P’s individually through the lens of online
marketing to benefit an online business model.
What Is A Marketing Mix
The marketing mix traditionally consists of four marketing decisions to
drive business goals into a specific target market. These four marketing
decisions are: Product, Price, Place, and Promotion (Also called the four
P’s)