Module 1
Module 1
Meaning
The definition of digital marketing according to IDM (Institute of Direct and Digital Marketing)
includes "the management and execution of marketing using electronic media such as the web, email,
interactive TV, wireless media in conjunction with digital data about customers characteristics and
behavior."
Unique differentiators
1. Digital marketing involves reaching out to potential customers through a set of
interactive, intuitive, and advanced electronic devices and platforms which go
beyond the normal web and e-mail to include mobiles, interactive TV,
applications, social media, which were earlier not common to marketing online
through ‘e’ models
2. Application of marketing to consumer interaction touchpoints that integrate
digital data about customers and their behaviors in a manner which was not
extracted and targeted earlier
3. Introduction of interactive communication channels like search, display
advertising, social media, etc., which have a strong combination of pull–push
marketing rather than the earlier models which were primarily of push marketing
nature
4. Incorporation of a variety of technological advances in communication, social
integration, machine learning algorithms along-with their application to multiple
devices and platforms
Marketing as a discipline has undergone radical changes over the past few decades. Marketing
has kept up incredibly well with changing technology.
1. Marketing Era-
• Trade era: products were handmade; hence, supply was limited
• Production era: products were mass produced and consumers focused on features like
low cost and availability
• Product era: focus moved from quantity to quality and consumers laid more emphasis
on quality, performance, and innovative features
• Sales era: with increasing competition companies were compelled to emphasize on
aggressive selling and promotion, commoditization of products, leading to saturation of
consumer demand
• Marketing era: marketing emerged as a practice as consumers started demanding
better products; differentiators like pricing, distribution, and promotion became
important.
• Relationship era: customers started getting valued to build a long-term orientation
• Digital era: also called the social/mobile era, the focus is on real-time and social
exchange based marketing where communication and social interactions play a prime
role.
1. Mobile-First Marketing
6. Over the last decade, smartphones have taken over the mobile phone industry.
With the convenience that smartphones have provided users, accessibility to websites
straight from phone web browsers is essential.
According to the Digital Marketing Institute, “Smartphones have overtaken personal
computers as the primary device for going online.”
So, as smartphones continued to solidify their prominence in the online world,
businesses had to adapt their digital marketing to meet the mobile interface, especially
when it came to their websites.
Once smartphones had internet access, digital marketing never looked the same.
Now, we want to make it clear that having an accessible website and having a
mobile-friendly website are two very different things.
Because approximately half of the worldwide web traffic comes from mobile phones,
the importance of having a mobile-friendly website is even more evident, and this has
been consistent since 2017.
1. Wider Reach
Traditional advertising has a few critical flaws that internet marketing easily overcomes
— physical boundaries. While traditional marketing is mostly localized, online
marketing is globalized. That has opened up plenty of opportunities for business
owners to expand (or start new) businesses beyond a single country’s borders.
All of the above was possible thanks to the power of search engines like Google and
various social media platforms. Some social media giants like YouTube have more than
two billion monthly users. Just imagine how much exposure your brand could get if you
built a presence on one (or more) such platforms!
1. Minimum investment
7. Traditional marketing media like newspapers, hoarding, television ads incur an
immense cost and effort. With digital marketing, such expenses get lower and are not
cost-prohibitive. Hence, with digital marketing, there is no trouble doling out millions
for marketing and advertising. One can get maximum interest with minimum
investment through digital marketing.
Digital marketing includes all those techniques and concepts that utilize the intent (pull-based) action
of the consumer to market products and services (in a push-based manner) which would be most
needed, relevant, and of interest to him/her.
Types of digital marketing areas to see how digital technologies have been built around the
combinations of pull–push marketing concepts:
(a) Search marketing: Search was one of the most pioneering pull–push marketing concepts which
involved providing a technology platform to consumers to help them express their intent towards
finding a particular piece of information and building a push marketing-based business around that
search.
(b) Display advertising: Similar to print advertisements, display advertising was built on pulling data
from consumers’ readership interests on any particular website wherein display ads were pushed next
to the content being read for consumers to interact, click, and buy on landing pages created for this
action.
(c) Social media marketing: With the power of social networks coming to internet-based platforms, a
marketer could not only use the information pulled from customer intent but also from the intent of
his social networks which would be marketed back to him in the form of sponsored and native
advertisements.
Internet marketing, which also goes by the names of online marketing, digital marketing, web
marketing, e-marketing, etc., is defined as the process of promoting brands, products, or services,
over the Internet. It includes any promotional actions that are done via the Web or wireless media,
including email marketing, blogging, SEO, and social media.
The worldwide reach of the Internet has made it possible for businesses to easily reach hundreds of
new customers and has redefined relationships between businesses to businesses (B2B) and
businesses to consumers (B2C). Through the Internet, marketers from organizations of all sizes are
now able to share brands, products, and services on a global scale and can do so all the time. Through
websites, blogs, and social media platforms, consumers are able to find and access information about
and from an organization twenty-four seven, from wherever they are.
Due to the major role of Internet marketing in modern marketing, organizations cannot afford to
ignore marketing online. Because the vast majority of people spend a significant amount of time
online, whether they are at work or home on a desktop computer, at school on a laptop, or waiting at
the airport on a smartphone or digital device, marketing through the Internet provides organizations a
more effective way to promote themselves. It also provides a more efficient way because it does not
involve the costs that often come with traditional marketing. Costs that often include printing
brochures, shipping out promotional mailers, and paying for billboard advertising. By cutting down
on expenditures, Internet marketing allows organizations to experience higher revenue.
Internet marketing also helps organizations in achieving better global branding and in building greater
awareness of the products or services that they offer. Through marketing online, organizations can
more strategically reach their target audience; and if Internet marketing is done right, campaigns can
easily be tracked, measured, and tested to ensure proper results are being received.
Having the right Internet marketing strategies is an important part in helping organizations
successfully market and advertise their products and services to consumers, connect with customers,
and make sales.
Digital Strategy
Digital marketing strategy is a plan that helps your organization attain specific goals through carefully
selected marketing channels such as paid, earned, and owned media. Running a digital marketing
campaign without a strategy in place is much like exploring a new city without a GPS – you are likely
to take many wrong turns resulting in both frustration and an unnecessarily long route to get where
you want to go.
Digital strategy focuses on using technology to improve business performance, whether that means
creating new products or reimagining current processes. It specifies the direction an organization will
take to create new competitive advantages with technology, as well as the tactics it will use to achieve
these changes. This usually includes changes to business models, as new technology makes it
possible for innovative companies to provide services that weren’t previously possible.
Today, technology has integrated with business to become something more than hardware or
software. As digital technology becomes more pervasive and companies move further in the journey
of digital transformation, digital strategy and business strategy will be the same thing. For now, it is
still useful to use the term “digital strategy” to focus the effort behind digital initiatives.
Whatever your goal may be, you also must ensure you are measuring your results.
Maybe your goal is to boost email subscribers. In this case, your key performance
indicator (KPI) would be increased sign-ups.
Understanding your target audience, demographics, and the psychology of existing and
new customers is very important. There are several steps a potential buyer must move
through to get to a point of purchase, and ideally become a long-term customer. The
stages may vary, but they generally begin with brand awareness and education, then
move to the consideration phase, and finally end with a decision and sales conversion.
You can't simply write just any content, or follow a "spray and pray" method. You need to be strategic
about what you write about, what words you want to own, have an SEO keyword strategy in place,
and think about continuous optimization of your content.
Creating a clearly defined plan has obvious advantages for every venture. While digital tools
can transform a business, it is important to keep in mind that they should be viewed as
enablers. Simply going all in on every latest technological trend is not the answer, and will
only do more harm than good.
Developing a blueprint and laying out a digital strategy template can help to see the bigger
picture, to pinpoint where digital options can be applied to harness efficiency and
effectiveness. This plan can be utilized to reduce waste, keep departments on track, monitor
progress and make necessary adjustments.
● Strengths — Strengths are internal factors that help organizations reach and, potentially,
exceed their goals. Examples of strengths can include high sales and profits, customer loyalty,
long-term employees, or attractive brand/culture.
● Weaknesses —Weaknesses are internal factors that prevent businesses from reaching their
goals. Examples of weaknesses can include improperly marketed products or services, regular
customer complaints, high levels of employee turnover, inadequate funding, or supply chain
issues.
● Opportunities — Opportunities represent potentially positive, external situations that might
help an organization succeed in the future. Examples of opportunities can include changing
attitudes or aspirations, new laws or legislation, trade agreements, or removal of
tariffs/sanctions.
● Threats — Threats represent potentially negative, external situations that might harm an
organization in the future. Examples of threats can include shifts in the labor market,
increasing supply costs, or new competition/technology.
Another popular acronym in the marketing strategy context, SMART refers to business goals that are
Specific, Measurable, Attainable, Relevant, and Timely. By establishing SMART business goals,
organizations can help ensure that their marketing strategy moves forward in a positive direction.
In order to establish SMART business goals, marketers and leaders should evaluate the following
questions:
● Specific — What am I trying to achieve, why is it important, and what will be required?
● Measurable — How can I measure and track progress to meet deadlines and accomplish the
end goal?
● Attainable — Based on available resources and existing constraints, is the end goal actually
achievable?
● Relevant — In light of prevailing business needs/realities and overall environment, is the end
goal valuable at this time?
● Timely — When can I expect to make progress toward the end goal? What benefits are
expected immediately versus in the short, intermediate, or long term?
Market segmentation is usually a vital piece of an effective digital marketing strategy. This practice
involves dividing an organization’s target market or audience into smaller groups. By segmenting an
entire customer base into digestible pieces, it becomes easier to tailor unique marketing tactics to
each market segment.
Within the sphere of market segmentation, organizations typically start with four categories:
Often utilized in conjunction with market segmentation, buyer personas are fictional profiles that
represent the customer. Buyer personas are particularly helpful in helping to understand a company’s
customers — whether existing, prospective, or desired. Correspondingly, buyer personas vary greatly
from industry to industry and organization to organization.
As noted above, it is common practice for marketers to unify buyer personas with market
segmentation initiatives. In doing so, marketers attempt to create profiles of ideal customers based on
demographic, firmographic, psychographic and behavioral data. In that way, organizations can
individually customize their messaging, products, and services to match each different buyer persona
and market segment,
Fundamentally, commercial and nonprofit organizations of every flavor must ensure that they budget
appropriately to roll out an effective digital marketing strategy. Even the best marketing strategies and
tactics are dependent upon adequate cash flow. Consequently, it is vital for organizations to think
realistically about their budget to determine which marketing tactics are achievable and affordable.
● Digital Branders are most often consumer products companies or other marketers that focus
on building and renewing brand equity and deeper consumer engagement. These companies
are shifting their investment from traditional linear advertising toward more immersive digital
multimedia experiences that can connect consumers to the brand in new ways. They are
reimagining how they engage consumers with the primary goal of recruiting new consumers to
the brand and driving loyalty through multiple experiences with the brand.
● Customer Experience Designers use customer data and insights to create a superior
end-to-end brand experience for their customers. Typically, these companies (such as
financial-services companies, airlines, hotels, and retailers) build their business models around
customer service. By reinventing how they interact with customers, and wowing them at
multiple touch points, these companies hope to create an ongoing dialogue and build a loyal
customer base.
● Demand Generators (typically retailers) focus on driving online traffic and converting as
many sales as possible across channels to maximise marketing efficiency and grow their share
of wallet. All elements of the digital marketing strategy - website design, search engine
optimization, mobile connected apps, and engagement in social communities - are tailored to
boost sales and increase loyalty. Although Demand Generators also need to leverage content to
drive engagement, they are more focused on driving volume and efficiency than on curating
the deep, emotional branded experiences that Digital Branders pursue.
● Product Innovators use digital marketing to help the organisation identify, develop, and roll
out new digital products and services. These companies employ digital interactions with
consumers primarily to rapidly gather insights that can help shape the innovation pipeline. By
helping nurture new sources of revenue, the marketing group directly increases the value of the
company.
Although only 37% of marketers document their actions, data shows that recording your
strategies increases the chances of business success. An accurately designed plan contains a
"map" with step-by-step instructions for achieving goals. Here are the main advantages a
marketing plan can bring to your business.
● Understanding of the target audience. A well thought out marketing plan begins with
research to define your target audience. With a specified target audience, you will
understand the behavior of your customers and adjust your sales model to help them
purchase; speak one language with a customer and provide real help during the buyer
journey; better understand the needs of your audience and prepare relevant product
launches.
● Efficient use of resources. Having a plan prevents you from spending money on things
that are unnecessary for business and were not mentioned before. You can also manage
your time properly by having clearly defined deadlines in your marketing plan as well.
● The same direction for all company departments. Since all members of your
company can access the plan as a coordination tool, it allows your company’s team to
communicate and accordingly move in the same direction.
So, a digital marketing plan will guide you to your goals and help you benefit from your
business.