Digital Unit

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

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

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

Web 2.0 provides opportunities for

content creation and enables better
campaign management, consumer
engagement and interaction
 Internet
Usage in
India

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

• Indian Population Online: 450 million (June 2017, TRAI)
• Urban: 60%, Rural 30% (approx. source: TRAI, IMRB)
• Mobile phone as primary device for accessing internet:
Urban – 77% and Rural 92% (source: IMRB)
• 157,000,000 Facebook subscribers on June/2016, 11.7%
penetration rate.
Traditional Marketing / Digital Marketing
Traditional Marketing / Digital Marketing
Traditional Marketing / Digital Marketing
 Digital Marketing Advantages
• Online mass customization Personalization
Increases • 24/7 convenience
Benefits • Self-service ordering and tracking
• One-stop shopping

• Low cost distribution of communication messages

• Low cost distribution channel for digital products
Decreases • Lowers costs for transaction processing
Costs • Lowers costs for knowledge acquisition
• Creates efficiencies in supply chain
• Decreases the cost of customer service

• Online transaction revenues such as product,

information, advertising, and subscriptions sales; or
commission/fee on a transaction or referral
Increases • Add value to products/services and increase prices
• Increase customer base by reaching new markets
Revenues • Build customer relationships and thus increase current
customer spending
Benefits of Internet Marketing
Tangible benefits Intangible benefits

1. Increased sales from new 1. Corporate image

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

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

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

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

Wikipedia en.wikipedia.org
Quora www.quora.com
Yahoo in.yahoo.com
Bing www.bing.com
Types of E-commerce
B2
B
 Business-to-Business
Business-to-business (B2B) is selling products or services
between businesses through the internet via an online
sales portal. In general, it is used to improve efficiency for
companies. Instead of processing orders manually – by
telephone or e-mail – with e-commerce orders can be
processed digitally.
B2B transactions can be processed online in various ways, of
which Electronic Data Interchange (EDI) and B2B e-
commerce are most often used. Although EDI and B2B e-
commerce both have their own, distinctive features, they
are often mixed up.
B2B Websites
 AmazonBusiness.in
 Alibaba.COM
 Indiamart.com
 TradeIndia.com
 Intel
 IBM
 Qualcomm
 Sulekha.com
 Amagi.com
 e-cantonfair.com/China
B2
C
 Business-to-Consumer
Business to consumer B2C e-commerce or electronic
commerce is used to describe a transaction conducted
over the Internet between a business and a consumer
for his/her personal use. B2C as a business model
differs significantly from the B2B model, which refers
to commerce between two or more businesses.
B2C (Business-to-Customer) ecommerce is the
exchange of goods or services over the internet
between online stores and individual customers.
B2C Websites
 Flipkart.com
 Amazon. in
 Snapdeal.com
 Myntra.com
 pizzaonline.dominos.co.in (Dominos)
 online.pizzahut.co.in (Pizza hut)
 Lenskart.com
C2
C
 Consumer-to-Consumer
C2C, or customer-to-customer, or consumer-to-
consumer, (or citizen-to-citizen) electronic
commerce involves the electronically facilitated
transactions between consumers through some
party. A common example third
is the online auction, in which a
consumer posts an item for sale and other consumers bid
to purchase it; the third party generally charges a flat fee
or commission. The sites are only intermediaries, just
there to match consumers. They do not have to check
quality of the products being offered.
C2C
Websites
 www.quikr.com.
 www.ebay.in.
 www.olx.in.
 Use of B2C and B2B internet Marketing

While business-to-business and business-to-consumer Internet

marketing strategies are two different animals, in that one model
targets businesses and the other consumers, the benefits that B2B and
B2C provide to marketers are about the same. In short, both models
help businesses increase sales in an increasingly competitive
marketplace. In 2012, in the United States the number of potential
Internet buyers in this increasingly competitive marketplace reached a
new peak: 245 million potential buyers online.
 Use of B2C and B2B Internet Marketing
• Increased Awareness
• With over six billion Internet users across the world, it’s obvious why B2B and B2C
Internet marketing increases awareness of businesses and their products or services.
More than that, with more B2B and B2C companies marketing themselves on the
Internet, marketers are in a better position to pick up details about their competition.
Additionally, with the advent of the social networking explosion, more business and
consumer patrons are voicing their opinions about various products and services. This
gives marketers even more empowering info about what the market is thinking –
knowledge they wouldn’t have if they themselves weren’t using the Internet.

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

• Refined Messaging
• The Internet has also provided marketers with more specific information about their
customers, such as when they’re more receptive to receiving an advertising
message. Armed with this knowledge, some B2B and B2C companies use a
marketing method called “right-time marketing.” According to business analyst firm
Garner, Inc., the statistics are too compelling to ignore: strategically timing email
marketing messages will help marketers see as much as a 600 percent rise in
performance over more lax messaging methods, such as email blasts and cold
calling.