Ch-1 Introduction to digital marketing.pdf

Digital marketing M.com notes

1. DIGITAL MARKETING
MODULE 1: INTRODUCTION TO DIGITAL MARKET
Introduction
The traditional manner of marketing involved businesses to advertise their products or services on
print media, radio and television, business cards, bill boards, and in many other similar ways where
Internet or social media websites were not employed for advertising. This had limited customer
reachability and scope of driving customers’ buying behaviour.
The 21st century has witnessed the developing a web presence in most companies, Internet has
opened a gate of vast variety of opportunities for businesses. Moreover, internet usage has more than
doubled over the past decade and this shift has massively affected how people purchase products and
interact with businesses. Using social networks, one cannot only share a private picture of one’s
birthday but also earn customers for one’s business and reach them conveniently. Its development
during the 1990s and 2000s, had changed the way brands and businesses use technology for
marketing. As digital platforms became increasingly incorporated into marketing plans and everyday
life, and as people increasingly use digital devices instead of visiting physical shops. The speed and
ease with which the digital media transmits information and helping boost a business is amazing.
Marketing that uses electronic devices to convey promotional messaging and measure its impact on
business. It can take many forms, including online video, display ads, and social media posts. In
practice, digital marketing typically refers to marketing campaigns that appear on a computer, phone,
tablet, or other device.
Digital marketing is the component of marketing that utilizes internet and online based digital
technologies such as desktop computers, mobile phones and other digital media and platforms to
promote products and services. The most common form of digital marketing is the website of the
organisation and the epicentre of all its online activities.
Meaning and definition
Digital Marketing is the term used for the targeted, measurable, and interactive marketing of products
or services using digital technologies to reach the viewers, turn them into customers, and retain them.
It includes in the promotion of brands to connect with potential customers using the internet and other
forms of digital communication. Basically, digital marketing refers to any online marketing efforts or
assets that help introduce your company to people and convince them to buy.
Digital marketing campaigns have become prevalent, employing combinations of (SEO), search
engine marketing (SEM), content marketing, influencer marketing, content automation, campaign
marketing, data-driven marketing, e-commerce marketing, social media marketing, social media
optimization, e-mail direct marketing, display advertising, e–books, and optical disks and games.

2. In simple terms, Digital Marketing is the promotion of products over the internet or any form of
electronic media. It can take many forms, including online video, display ads, and social media posts.
In practice, digital marketing typically refers to marketing campaigns that appear on a computer,
phone, tablet, or other device.
According to Kotler et al. “Digital marketing is a form of communication and interaction between
organisation and their customers through digital channels (internet, email and others) and digital
technologies.”
According to the Digital Marketing Institute, “Digital Marketing is the use of digital channels to
promote or market products and services to targeted consumers and businesses.”
According to Cheffey et al. “digital marketing includes the use of internet and related digital
technologies to achieve marketing goals”
History
A great digital marketing strategy has become the cornerstone of success for a lot of brands and
businesses. We can trace the beginnings of this revolutionary all the way back to the late 80s and
early 90s. The history behind online realm is fascinating. The following explains the evolution of
digital marketing from the 1990s through to projections for this new decade.
➢ Phase I 1990-2000
In the 90s, individuals properly began use the internet, especially once the world wide web became
publicly available in 1991. By 1995, there were around 16 million internet users worldwide. It was
the decade for search engines and the start of the era of information online. This decade saw many
businesses invest in Customer Relationship Management (CRM) tools to create and diversify their
interaction with current and potential customers.
Then in 1999, came the development of electronic Customer Marketing Management (eCRM). This
version combined all CRM functions with the use of the internet and online storage of information
allowing businesses to store a huge volume of customer data online which can be updated when
convenient. To deal with heaps of customer data, lead to the development of salesdforce.com, the
very first Software as a Service (SaaS) company, Marketing Cloud software: a platform that integrates
customer data storage with analytics, brand boosting, community building and campaign tracking.
This computing software served as a central point for the future of marketing technology.
Noteworthy achievements between 1990-2000
• First use of the term ‘digital marketing’ | 1990
• Launch of the first search engine: Archie | 1990
• First Clickable web-ad banner | 1994
• Launch of Yahoo | 1995
• First e-commerce transaction over Netmarket |1994

3. • Launch of first social media site: SixDegrees.com | 1997
• Birth of Google | 1998
• Launch of Microsoft’s web search engine | 1998
➢ Phase II 2000-2010
The 2000s saw a switch in customer behaviours. Through the prominence of search engines like
Google and Yahoo, many customers began researching products online before making a purchase.
This left a lot of marketers confused as they couldn’t quite understand the buying behaviour of
consumers. This hurdle was solved by companies like Marketo, Act and Pardot when they introduced
marketing automation platforms. This form of technology allowed marketing professionals to
segment the market and attempt multi-channel campaigns (through email, websites etc.) as well as
deliver personalised content especially for inbound marketing. It also had tools to schedule and track
the performance of different mediums of marketing to get analytics for better understanding of
consumers’ buying behaviour.
The 2000s also saw a boom in social media platforms, creating a new platform for marketing. It was
also the decade where smart phones were popularised, giving consumers easier access to the internet,
social platforms , online marketing.
Noteworthy Achievements between 2000-2010
• First mobile marketing campaign by Universal Music | 2001
• Launch of LinkedIn | 2003
• Launch of WordPress | 2003
• Google becomes publicly listed; Gmail is launched | 2004
• Launch of Facebook | 2004
• Launch of YouTube | 2005
• Launch of Twitter | 2006
• Launch of Hulu | 2008
• Launch of iPhone | 2007
• Launch of Google’s real-time search engine results | 2009
• Launch of WhatsApp | 2009
➢ Phase III 2010-2020
One of the biggest changes was society’s dependence on mobile phones. Individuals spent hours on
mobile phones, whether it was for seeking information, communicating with friends, taking photos,
paying bills or checking emails. The rise of apps for every aspect of life meant people spent an
increasing amount of time on their smartphones.

4. This in turn made marketers put a heavier focus on marketing online. These days one can’t
scroll social media without coming across an ad or promoted post. Facebook introduced mobile ads
in 2012 and seven years later it accounts for 91% of their total advertising revenue.
The increase in online advertising also allowed marketers to have better audience targeting.
Businesses could now better channel their marketing revenue towards target demographics that were
more likely to convert into sales.
Business also needed to ensure their websites were compatible with smartphones. Studies
showed 50% of consumers will buy from businesses less often if the website isn’t mobile-friendly –
even if it’s from a brand they like. In the same respect, 74% of users say they’re more likely to return
to a website that is mobile-friendly.
Messenger apps also saw a major rise in usage: the top three apps being WhatsApp, Facebook
Messenger and WeChat-all of which didn’t even exist in the previous decade. These mobile platforms
allowed business to have one-on-one conversations with customers.
This decade also saw an influx of content marketing, from Instagram influencers, twitter threads to
Vines, Snapchats, Instagram stories and Facebook stories. As our lives picked up the pace, so did our
desire for easy-to-consume content. Posts that did well with high levels of engagement were either
quick, punchy and humorous, aesthetically pleasing or tugged at the heartstrings. This made
marketers rethink their approach to content, focusing more on developing strategies for their online
content posting.
Noteworthy Achievements between 2010-2020
• Launch of Instagram | 2010
• Web-use overtakes percentage of TV viewership among youth demographic | 2011
• Launch of Snapchat | 2011
• 64% of advertisers expect to increase social media budget | 2013
• Amazon dominates e-commerce | 2013
• Launch of Facebook messenger app | 2014
• LinkedIn features tailored ads | 2014
• Mobile usage surpasses desktop browser traffic | 2014
• Rise of content marketing | 2015
➢ Heading into the 2020s
Digital marketing is now at its peak. Businesses need to make sure they have a good foot in with
current practices, to be able to gain the benefits of the advancements that are to come. From artificial
intelligence in marketing to using social media for customer service, insight and data-driven
marketing, as well as multilingual SEO search engine optimization, 2020 will see major innovations
in the online sphere.

5. Objectives of digital marketing
digital marketing objectives should be SMART (Specific, Measurable, Achievable, Relevant and
Time Related) and should benchmark against competitors to measure effectiveness.
The following are important objectives of digital marketing:
• Construct A Brand: Constructing a brand is one of the important objectives of digital marketing.
Well-known brands that are particularly associated with successful relationships are also more
trusted by consumers. The internet is an ideal resource for creating this policy because it is very
comprehensive and helps to directly communicate with people. Organizations also discovered
that the use of social media platforms such as Facebook, Twitter, Instagram, and Pinterest could
encourage this kind of brand.
• Increase Sales: Increasing sales is a top level digital marketing objective for many businesses
because it improves revenues and is easy to measure, using performance metric like key
performance indicators (KPI), one can then benchmark your progress towards achieving objective
• Develop Revenue: Increasing revenue is the primary objectives of digital marketing. Luckily, the
internet gives every company several opportunities to boost their performance. By combining
SEO (search engine optimization) with pay per click, this will increase the probability of getting
identified by potential clients.
• Reduce the Cost of acquiring new customer: The cost of attracting new customers is typically
high for most businesses. Companies spend too much on attracting new consumers hoping they
would become brand loyal fans and make regular purchases that would produce profits. Digital
marketing is one of the best ways to lower the sales price by attracting new customers. In addition
to the reduced costs, this makes it possible to reach a wide variety of highly targeted markets even
quicker than conventional marketing.
• Improve conversion rate: This is another digital marketing objective that can be tracked in web
analytics. By setting up goal tracking in analytics, one will have reports on percentage of visitors
to your website that complete a desired goal (regular purchase) out of total number of visitors. A
high conversion rate is indicative of successful marketing.
• Percentage of return visitors: The New v/s Returning visitors is a metric that is available in
analytics and it is easy to track. Knowing how many visitors return is an important objective
because it helps to see how effective business in creating customer loyalty.
• Organic traffic volumes: Organic traffic is natural traffic from the search engine result pages. It
is considered as free traffic. Lots of businesses have the objective to increase organic visitor traffic
by achieving high search engine rankings through implementing search engine optimisation
(SEO). To achieve this requires making changes in website that are effective at improving
rankings and including keywords in the content.

6. • Reduce bounce rate: Bounce rate in analytics is defined as people who enter your site and leave
(bounce) rather than continue viewing other pages. This is an important measure of the quality of
website, because almost all businesses want their visitors to complete an action like purchase,
contact or download on their websites. The lower the bounce rate the better and many marketers
say that a bounce rate below 50% is good, however that differs from business to business.
Features of digital marketing
• Flexibility - There are plenty of ways by which one can do digital marketing like email marketing,
social media posts, content marketing, banner ads, etc. Hence, responsibility is to choose an
appropriate medium and adopt proper methods to deploy marketing activities and utilize all the
possible mediums to increase your visibility and brand awareness. It also helps to analyse through
which medium one can get better responses and what kind of campaign is being effective.
• Affordability - Digital Marketing methods are reasonable compared to other methods of
marketing. Prices may vary based on the technique implemented. Besides, expenses for
advertisements are also comparatively low in digital marketing.
• Expansion - A majority of people spent a huge amount on online shopping. As it is easy in a few
clicks and nominal, people will choose online shopping. Digital marketing can be applied here to
attract customers. To promote products and services through severe paid campaigns. This will
help to drive more traffic to websites quickly with less effort.
• Interactivity - It opens up a platform to directly interact with the customers. By receiving
reviews, comments, and feedback from the customer and respond to it to gain the customer's trust.
This will also make them feel respected and encourage them to engage in more business deals.
Transparency can attract more customers. It will also let you fix any issues faced by customers
rapidly.
• Authority - Likewise, if business can leave the impression trustworthy in respective fields, this
makes customers to come back for collecting information, and eventually, they will end up buying
your products/services. Giving valuable suggestions/comments on issues or controversies related
to product/business sector can ascertain as an industry expert and instil trust in you.
• Reachability - Almost everybody owns a smartphone in the present day. One can easily reach
customers via email/text message marketing, banner ads in apps, social media promotions, etc,
and keep them updated about your products, services, and offers. It is the best way to reach more
targeted customers at a given point in time. This online presence can end up in a business deal.
• Tracking - Besides communication, it also tracks which campaigns lead a customer to
conversion. Thus, it is easy for business to concentrate on the area that is bringing more traffic to
site and boost efforts over there. Likewise, rework on the techniques which are not beneficial.

7. • Multimedia - People tend to engage more with marketing materials that combine different types
of content like photos and videos. It is easier to involve these contents in digital marketing. Thus,
this type of marketing lets business to attract more customers to your site.
Scope of digital marketing
• Analytics
A systematic computational analysis of data or statistics. Here marketers will publish a piece of
content, for instance, and then check to see how effective it was after a few weeks. This is certainly
helpful, but real-time analytics is beginning to shake up the world of digital marketing. Conducting
real-time analysis allows marketers to both individualize content for smaller subsets of consumers
and respond much more quickly to their performance.
• Social Media Influencers
Advertisers in all sectors are connecting with social media influencers who have more direct
relevance to the product, to help to enhance advertiser brands. This is proving to be an effective digital
marketing strategy, largely because consumers tend to trust other consumers more than companies
advertising products. It is expected that more companies in 2021 and beyond to use these influencers
to drive sales.
• Video Remains King
Video will remain a top strategy in 2021, as digital marketers capitalize on users’ short attention spans
and desire to view content instead of reading it. this medium will continue to play a significant role
in connecting customers and businesses. Most social media channels support video hosting and
sharing. This profoundly increases the scope of digital marketing.
• Artificial Intelligence
Artificial intelligence (AI) enables digital marketers to better analyse user data so they can further
customize the customer journey. AI helps companies understand a great deal about customers and
how to best target audiences. AI also provides users with a more personalized experience, giving
them customized assistance at each stage of the buying process. Businesses can achieve this customer
experience by automating ads to targeted audiences using programmatic advertising.
• Augmented and Virtual Reality
Companies will continue to use augmented reality (AR) and virtual reality (VR) which combines the
physical world with computer generated virtual reality, in their marketing strategies to enhance brand
awareness and satisfy customer demand. Companies like Starbucks, Nivea, and Volkswagen have
launched successful AR and VR campaigns to offer customers an experience that better connects
them to their brands and products.
• Omni-channel Marketing

8. While today’s consumer expects every business to at least have an online presence, using a variety of
media to engage target market in a seamless manner. Which is referred as “omni-channel” marketing,
For instance, a product advertised on television should also have an online tie-in that’s optimized for
both desktop and mobile users. The point is, consumers may use a variety of media to learn about and
engage with your product (or service) before and after they buy.
• Interactive Content
Interactive content is nothing new, but it’s beginning to be considered as an effective marketing tool
more than ever. Not only do they increase the amount of time a prospective customer engages with
brand, but they allow you to capture more data and, in turn, fine-tune your digital marketing strategy.
the perspective of expanding the scope of digital marketing, interactive content might include
contests, polls, surveys, or even games. Giving users more opportunities to interact with your brand
also plays into the ultimate goal of greater personalization.
Scope of Digital Marketing in building career
• Earn with Affiliate Marketing: One can start blog/website in a specific way of interest and
initially work hard to make a traffic and viewers. After creating good traffic one can make an
income with affiliate marketing techniques by which an affiliate earns a commission for
marketing another person’s or company product.
• Start Your Agency: It you have experience in managing a business and have resources, contacts
then you can start your own Digital Marketing Agency. You can able to make marketing strategies
for customers and implement them with digital marketing by your own agency.
• Become a Youtuber: You can select to become a full-time Youtuber in your selected interest.
You need to focus on the quality of content and build your viewers base on YouTube. When you
start getting subscribers and views, you can earn income by YouTube.
• Start Your Drop Shipping Business: Drop Shipping a business in which you can able to sell
products online to customers without owning the inventory physically with you. Generally, in this
business you need to develop an e-commerce website based on research. Then you connect your
store with manufacturer and online retailers. All the price of product is marked-up. When you sell
a product, the manufacturer will directly send the product to customer and you make profit.
Advantages or benefits of digital marketing
• High level of interactivity - creates an opportunity for interactive communication with
consumers, thus more responsive to their understanding and expectations for seeking and
receiving information. Interactive communication, in turn, creates opportunities to build a
dynamic environment, changing space, specific navigation, depending on the user's preferences,

9. dynamic design, use of top-level special computer code, mobile technologies and continuous
innovation.
• Overcoming geographical barriers - digital marketing helps companies to successfully
communicate with their customers, sell their products and services and find new business partners
in real time anywhere in the world.
• High degree of measurability of the achieved marketing results - very often, when conducting
traditional advertising campaigns, the registered results are unclear and inaccurate and do not give
an indication of whether the funds are spent efficiently whereas the results of digital campaigns
are easily and accurately measurable (using modern statistical tools) and are available in real time.
They allow marketers to track and analyse consumer behaviour and build their profiles.
• Facilitates customer segmentation and targeting - thus achieving better targeting of advertising
messages and greater effectiveness of marketing activities.
• High degree of personalization of advertising messages - collected online information of the
consumers, individual helps in responding to their needs and desires as precisely as possible in
order to increase the consumer satisfaction.
• Creates more convenience for consumers - with the help of digital technologies, they can
receive much more and better information about products and services that interest them, buy
them from home and save time.
• Increases the traffic to the companies’ websites - through the development of qualitative online
advertisements, Internet publications, related to the company's activity, etc. Thus, creating an
engagement of the users with the thematic content provided for them. As a result, the interest in
the offered products/services increases and the sales go up too.
• Facilitates communication and interaction with users - various platforms such as social
networks, web applications or websites, users can ask questions and receive the information they
need right away. Accordingly, companies can talk directly with their real and potential customers,
build trust and get feedback on the products and services they offer.
• It requires less investment - the use of different digital tools for marketing activities requires
less investment than traditional channels, therefore digital marketing has higher profitability.
• Suitable for start-ups, small and medium-sized companies - digital marketing is very suitable
for new and small companies as it provides a high degree of efficiency with small investments.
• Creates opportunities for developing new business models and strategies such as mass
customization, co-creation and more.
• Facilitates the tracking and analysis of competitors’ actions.
• Increases the degree of control and correction in the processes of development and
implementation of various marketing activities.

10. • Potential for shortening the time needed to prepare and conduct marketing research.
• Creates prerequisites and favourable conditions for successful development of virtual enterprises.
• Allows companies to reach more users through the use of social networks.
• Provides opportunities to respond more quickly and flexibly to user needs and wants.
Disadvantages of digital marketing:
• The use of digital marketing makes business organizations an “open book” for competitors
- this is probably one of the most serious disadvantages of digital marketing, as digital marketing
campaigns can be quickly and easily copied by their competitors. Trademarks and logos,
corporate identities, can be copied and used by them to mislead consumers in order to gain market
share. In addition, they can easily manipulate consumers through inaccurate information about
products, services or brands, which can seriously damage the image of a company and lead to
customer outflow.
• Lack of knowledge of the psychology - In digital marketing, you need to build relationships with
a consumer who you do not see in person, this requires specific knowledge of the psychology of
online consumer behaviour. Very often, however, marketers do not take this into account and rely
on traditional consumer psychology when designing digital marketing campaigns. This, in turn,
leads to a lower efficiency since it does not take into account the particularities of consumer
behaviour and the relationships that are created online.
• The online reputation of companies can be destroyed by negative feedback - negative
comments and information about products and services, and trademarks are visible and accessible
to all users on the Internet, which can seriously damage the image of a company and lead to
customer outflow.
• Lack of consumer trust - the fact that digital marketing campaigns involve the use of
technologies that track and collect data from users on the Internet leads to privacy issues including
the security of their privacy. Thereby, people take a serious distrust of this type of marketing and
often refuse to participate in such events, which is one of the biggest challenges facing the
development of digital marketing. For this reason, the topic of online trust and its impact on digital
marketing strategies is becoming increasingly important and has been the subject of much
research in the field.
• Overloading the Internet space with online advertising messages - the excess of online
advertising messages in the form of banners, the continuous appearance of open and close
windows, interruption of video materials and etc. can lead to consumer irritation, which will
inevitably affect their attitude towards the companies.

11. • Digital marketing is not suitable for all types of products, services and companies - there are
a number of products and services whose target audience cannot be reached and influenced by
the tools offered by digital marketing.
• Digital marketing is highly dependent on technics and technology - this on the one hand
requires serious knowledge in the field and on the other hand can lead to a number of technical
errors as the information and communication tools offered by digital marketing. It is often the
case that the chosen technical solution does not work properly and results in incorrect outcomes,
thereby causing the failure of the advertising campaign.
• Use of inappropriate digital tools and applications - there is a wide variety of tools and
applications on the Internet and new ones are emerging every day. This makes it very difficult for
the marketing professionals to choose the ones that will be most effective for the specific
marketing events and will meet the needs and goals of the companies in the best possible way.
• It is very difficult to keep up-to-date information in the digital world -in the present scenario
information gets old very quickly and have to be replaced very frequently with new ones. It
became a serious challenge for many companies as they do not have the necessary resources for
that. Very often, digital marketing campaigns are developed and conducted on their own without
aligning with the overall marketing strategy of the company - this usually results in the inability
to achieve the intended results, lower efficiency, and misuse of funds.
• Digital marketing campaigns can be perceived by users as unserious, if not professionally
designed and properly targeted;
Techniques of digital marketing
The many businesses experiencing significant success from online marketing campaigns because they
have found the most effective digital marketing techniques. Here are some of the most effective
digital marketing techniques:
1. Social Media Marketing: Social media has been growing rapidly. It is the most powerful media
on the internet, where a business can contact millions of people very effectively. Social media, like
Facebook, Instagram, and Twitter are used by every modern organization to promote their brands. A
strong presence on social media platforms is the most important digital marketing tool. There are
many ways to promote a brand’s on social media. Examples of this are employing social media
influencers to promote brands on their own social media accounts and actively posting and engaging
to promote its image.
2. Search Engine Optimization: Search Engine Optimization, or SEO, is the art and science of
getting pages to rank higher in search engines such as Google, yahoo, Bing etc, because search is one
of the main ways in which people discover content online, ranking higher in search engines can lead
to an increase in traffic to a website. In other words, it is a digital marketing technique that involves

12. creating more traffic to a website by making sure a website appears higher up in the results of a search
engine like Google, yahoo, Bing etc, this technique helps business marketing by improving a brand’s
awareness.
3. Email Marketing: This email marketing is the oldest concept of digital marketing and it is still
very much relevant. It is the act of sending a commercial message, typically to a group of people,
using email. In its broadest sense, every email sent to a potential or current customer could be
considered email marketing. It helps in fulfil the purpose of enhancing a merchant's relationship with
current or previous customers, encouraging customer loyalty and repeat business, acquiring new
customers or convincing current customers to purchase something immediately, and sharing third-
party ads.
4. Content Marketing: Content marketing is a strategic marketing approach focused on creating and
distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience
and, ultimately, to drive profitable customer action. A business can use content marketing as a tool
to achieve better brand awareness by marketing itself as a company to the world.
5. Video Marketing: Video marketing works well with content marketing and is also a popular
technique in digital marketing because of the easy access to videos that technology has provided. By
creating quality commercials videos, companies can inflict a lasting brand image in its audience heads
and get them to think about purchasing.
6. Web Advertising: Brands can market themselves more effectively by creating clickable
advertisements on popular websites. Examples of this are when ads for different companies appear
on the side of an article on a website like ESPN or CNN.
7. Affiliate Advertising: Affiliate advertising is when a brand pays to have a valuable spokesperson
with a large audience, usually a blogger or social media influencer, to post about their company so
that a company can increase its circulation. A good example of this is when Kylie Jenner, top 10 in
total Instagram followers, posted about a brand called Fashion Nova. This post rapidly increased
Fashion Nova sales as a result of how large Jenner’s audience and impact is on Instagram.
8. Overall Personalization: Personalizing brand awareness and creating a unique style can make
people believe whether a company is successful or not.
9. Paid Search Advertising: These are usually pay-per-click where one pay for every display or
click that your ad gets. Paid search advertising has the potential to increase profits or leave you in
considerable debt. So, mastering it and hiring an expert to handle is very much required.
10. Creating an App: The last of the popular digital marketing techniques is creating an app. Creating
an app for a brand can give viewers an accessible means of communication and show where to
purchase and get notified of new products.

13. Digital marketing v/s real marketing
The traditional manner of marketing involved businesses to advertise their products or services on
print media, radio and television commercials, business cards, bill boards, and in many other similar
ways where Internet or social media websites were not employed for advertising. Traditional
marketing policies had limited customer reachability and scope of driving customers’ buying
behaviour. Digital marketing achieves targets of marketing a business through different online
channels. Let us see how the following table lists a few points that differentiate digital marketing
from traditional marketing.

Traditional Marketing Digital Marketing
Communication is unidirectional. Means, a
business communicates about its products or
services with a group of people.
Communication is bidirectional. The customer also
can ask queries or make suggestions about the
business products and services.
Medium of communication is generally
phone calls, letters, and Emails.
Medium of communication is mostly through social
media websites, chat, and Email.
Campaigning takes more time for designing,
preparing, and launching.
There is always a fast way to develop an online
campaign and carry out changes along its
development. With digital tools, campaigning is
easier.
It is carried out for a specific audience
throughout from generating campaign ideas
up to selling a product or a service.
The content is available for general public. It is then
made to reach the specific audience by employing
search engine techniques.
It is conventional way of marketing; best for
reaching local audience.
It is best for reaching global audience.
It is difficult to measure the effectiveness of
a campaign.
It is easier to measure the effectiveness of a
campaign through analytics.

14. Landscape past – today- future:
Digital marketing at past
The history of digital marketing is relatively young when considering the big picture of marketing.
digital marketing has proven itself to be a driving force in the marketing and advertising industries.
The early 90’s the phenomenon known as the ‘world wide web’ in 1993, release of the Mosaic web
browser. Com 1995, that was the internet’s tipping point. Organizations created content on Web pages
and in e-mail and users consumed the content. companies and investors began to see potential and
the dot.com boom officially began. As the internet continued to grow through the latter half of the
90’s, investors jumped on board and rode the wave of success.
Benefits:
• Lower costs: Reach the right customers at a much lower cost than with traditional marketing.
• Trackable, measurable results: Obtain detailed data about customer responses to marketing
campaigns.
• Global reach: Access new markets across the globe.
• Personalization: Connecting a database to a Web site allows for individually targeted offers. The
more consumers and businesses buy, the better the data and more effective the marketing.
• One-to-one marketing: Gain instant access to individual customers on computers and mobile
phones.
• More interesting campaigns: Use creative multimedia content to engage customers.
• Better conversion rates.
• Twenty-four-hour marketing.
By the early 2000’s many dot.com companies began to go under. However, a handful of them
survived and thrived, leaving with life changing entities such as Amazon, eBay and Google.
Digital marketing at present
Today: Web 2.0 was responsible for the development of various sites that commonly used today like
twitter, flipkart and facebook, blogs and social networking. Digital marketing is the industry term for
promoting business objectives online. As the influence of the internet continued to rise in the early
2000’s, the concept of online marketing grew right along with it. Businesses began utilizing this
technology as a means of reaching their target audience. At the forefront of internet integration in
everyday life, is search engines. Today, shift from outbound tactics to inbound tactics, in which
Outbound tactics include traditional and online media advertising, telephone calling prospects, trade
shows, and e-mail blasts. The components of inbound marketing are content (e.g., blogs, videos,
eBooks, white paper pdf files), social networks (e.g., Twitter, Facebook, blogs), and search engine
optimization techniques to help get the social media or Web site come up on the first page of results

15. for a keyword search. The internet allows for tracking every mouse click. New Wireless high-speed
Networking, New Technology-Based Strategies etc.,
Changes due to web 3.0
• Power Shift from Sellers to Buyers.
• Consumers trust each other more than companies.
• Market and media fragmentation.
• Connections are critical.
• Everyone is a content producer.
• Information transparency.
• Social commerce.
Widely used digital marketing techniques in digital marketing:
• Search Engine Optimization
This is the process of affecting the visibility of a website or web page in a web search engine. This
can also be known as “organic” search results. Typically, the higher a business ranks on search results
and the more frequently it appears in searches the more traffic that site will receive. In fact, most
marketers report that organic traffic is typically their highest traffic source with the strongest close
rates and engagement.
• Search Engine Marketing
The goal of Search Engine Marketing is the same as that of SEO, the difference however is that SEM
is primarily “paid online advertising” or “paid search.” SEM incorporates SEO, it uses both paid and
organic search results. SEM uses paid advertising with Google AdWords or Bing Ads. Pay-per-click
is an internet advertising model used to drive traffic to websites. The advertiser pays the publisher
(website owner or network of sites) when the ad is clicked.
• Social Media
The role of Social Media in Digital Marketing continues to become more and more prominent each
year. The more recognizable benefits of social media marketing such as advertising and brand
awareness are an integral part in the marketing mix. However, a business’ social presence provides
additional benefits in SEO and website optimization.
• Content Marketing
Content marketing is a strategic marketing approach focused on creating and distributing valuable,
relevant, and consistent content to attract and retain a clearly-defined audience and, ultimately, to
drive profitable customer action. Content Marketing is, in a word, content the information on your
website that informs the customer about products or services. The elements like Blogs, White Papers,
Articles, Case Studies, Memes and Social Content will not only engage your readers but also gain

16. you visibility in the search engines. The best content will employ SEO best practices that will ensure
the search engines can read your content and index it online.
• Web Design
The website is the key component in a digital marketing strategy. Online presence without a
functional web design, users won’t convert into customers. Responsive web design will ensure that
website is easily viewable on a variety of devices, such as smartphones, tablets, laptops and desktops.
Usability allows visitors to easily browse your site and quickly find the information they’re looking
for.
Other Features:
• Image recognition takes root: Image recognition is a technology that sees the content within an
image.
• Improved online and offline strategy integration: This integration is especially evident in
multichannel marketing, offering customers more than one way to buy something, such as a Web
site, retail store, and catalogue.
• Intellectual capital rules: Imagination, creativity, and entrepreneurship are more important
resources than financial capital.
• Decline of print media.
• Online fund-raising increases.
• Location-based services. Many companies use the smartphone’s GPS (global positioning system)
feature to provide local search, such as Google local search.
Future Hold for Digital Marketing
It is believed that future of Digital Marketing is bright and it will continue to move forward with
every advancing step of technology. The Future: Web 3.0 Semantic Web is the Way that marketers
can give customers exactly what they want, when they want it, and where they want it. Many predict
that Web 3.0 will include higher bandwidth, faster connection speeds, artificial intelligence, seamless
social networking, or modular, 3D printing, Distance online education, “Big data” which refers to the
sea of information available about consumers, organizations and all internet users, Google Wallet,
Cloud computing, Augmented reality etc.,
The following are the few future looks of digital marketing industry.
• Virtual reality
Virtual reality (VR), the use of computer modelling and simulation that enables a person to interact
with an artificial three-dimensional (3-D) visual or another sensory environment. It is computer-
generated environment that simulates reality through the use of interactive devices like goggles,
headsets, gloves, or body suits which send and receive information.

17. virtual reality systems have become easily available to the everyday consumer. Industries such as
customer service and video gaming are being flipped upside down with this new technological
advancement, and digital marketing is no different. Not only is there an entirely new avenue for
marketing, but also a new means of selling your customers on a product.
• Live Streaming
Live video streams have only begun to scratch the surface in marketing efforts. Which gives audience
a real and organic perspective on your products and services. Engaging with audience on a natural
level, such as live streaming, could be the new way to generate a lead.
• Influencer Marketing
influencer marketing as digital marketing’s “word of mouth” strategy. It is a form of social media
marketing involving endorsements and product placement from influencers, people and organizations
who have a purported expert level of knowledge or social influence in their field
Internet Infrastructure Stack Business Models & Strategies


The technical infrastructure of the Internet is portrayed above
Internet infrastructure includes transmission media, including network cables, satellites and antennas,
and routers, repeaters, and other devices that control transmission paths.
Technology infrastructure generally does not include the operating systems or software stack above
the hardware. However, where public WANs or public cloud are used, such transport mechanisms,
along with platform or software as a service, may be part of the overall definition of infrastructure.
Infrastructure must provide a suitable platform for all the necessary IT applications and functions for
an organization or individual.
Forming the backbone of the stack is the telecommunications connection, either narrowband or
broadband. What is commonly referred to as the “Internet backbone” is actually a series of networks

18. run by various carriers. It is a redundant system that rarely experiences problems that are visible to
the average user and therefore remains essentially invisible. The average computer user gains access
to the Internet via an Internet Services Provider (ISP), who in turn accesses the services of the
backbone itself. The user of mobile devices must subscribe directly to a mobile telecommunications
service, so those carriers and the services they provide are highly visible. Wireless
telecommunications are especially competitive as a result of deregulation efforts around the world.
Strategic planning
Strategic planning is the “managerial process of developing and maintaining a viable fit between the
organization’s objectives, skills, and resources and its changing market opportunities.”
Two key elements of strategic planning are: -
1.The preparation of a SWOT analysis: SWOT Analysis Strengths, Weaknesses, Opportunities,
and Threats examines the company’s internal strengths and weaknesses with respect to the
environment, the competition and looks at external opportunities and threats. Opportunities may help
to define a target market or identify new product opportunities, while threats are areas of exposure.
2.The establishment of strategic objective such as: -
• Growth: How much can the firm reasonably expect to grow in terms of revenues, and how fast?
• Competitive position: How should the firm position itself against other firms in the industry?
Viable positions are: -
Industry leader (Microsoft),
Price leader (Priceline.com),
Quality leader (Mercedes),
Niche firm (Google.com),
Best customer service (Dell.com).
• Geographic scope: Where should the firm serve its customers on the continuum of local to
multinational?
• Other objectives: Companies often set objectives for the number of industries they will enter,
the range of products they will offer, the core competencies they will foster, and so on.
Strategy to Electronic Planning
Strategy to Electronic Planning: E-business strategy is the deployment of enterprise resources to
capitalize on technologies for reaching specified objectives that ultimately improve performance and
create sustainable competitive advantage. Business strategies including information technology
components (social media, digital data, databases, etc.) in business operation become e-business
strategies.

19. Most strategic plans explain the rationale for the chosen objectives and strategies. There are
four appropriate types of rationale:
1. Strategic justification shows how the strategy fits with the firm’s overall mission and business
objectives,
2. Operational justification identifies and quantifies the specific process improvements that will result
from the strategy,
3. Technical justification shows how the technology will fit and provide synergy with current
information technology capabilities,
4. Financial justification examines cost/benefit analysis and uses standard measures (ROI, NPV).

E business strategy flow from the firm’s environmental analysis. The ESP framework illustrates the
relationships among environment, strategy, and performance. A SWOT analysis of the business
environment (E) leads to the development of strategy (S) and the measurement of performance (P).
Strategic Drivers of the Internet Economy
As the internet continues to evolve and change, so must the marketing strategy of businesses, if they
want to be successful in today’s technical world. Following states, the strategic drivers of internet
economy.
1. The greatest added value for products and services of all kinds is Information. Products and service
products are essentially at par with their competitors in relations to a product’s features.
2. Distance and size do not matter in the many types of communications and transactions that can
occur. Whether the information is news, customer service, or product availability, information is
available all over the world and accessible at any time.
3. Flexibility and speed are more essential. Flexibility is required in everything from ways of
responding to customers and to business models.
4. The key assets in Internet enterprises are people. Innovation and creativity characterize companies
that are successful in the Internet era.

20. 5. A statement that has been part of technology culture since Robert Metcalf, the developer of the
Ethernet is “growth in the network causes exponential increase in value”.
6. The Internet is many-to-many and not a one-to-many network that allows marketers to deal with
customers on a one-on-one basis.
7. Because markers are closer to the customer, it allows for better forecasting through behavioural
data. What customers are doing is available to marketers long before conventional marketing research
is collected.
8. The Internet has changed the nature of transactions in markets by shortening supply chains and
making it more efficient as cost patterns change. Transactions and coordination costs are shrinking
for businesses and consumers are recognizing that switching costs are low.
9. Customers have power in information-rich channels. Customers, consumers, and businesses have
found their voice on the Internet.
10. An information economy is branded by choice and plenty of abundance. Information is not
uncommon and is becoming more valuable as its consumers use it.
business models to digital business models
The development of digital business models is an important task for companies being confronted with
digitalization and digital disruption. The mere extension of an existing analogue business model by a
digital component (e.g., online ordering of goods from a stationary retailer) is a preliminary stage. A
digital business model is a form of creating value based on the development of customer benefits
using digital technologies. The aim of the digital solution is to generate a significant advantage for
which customers are willing to pay.
A firm will select one or more business models as strategies to accomplish enterprise goals.
Based on the following terms.
• Scope: Which markets do the firm serve, and are they growing? Are these markets currently served
by the firm, or will they be higher risk new markets?
• Price: Are the firm’s products priced to appeal to markets and also achieve company share and
profit objectives?
• Revenue sources: Where is the money coming from? Is it plentiful enough to sustain growth and
profit objectives over time?
• Connected activities: What activities will the firm need to perform to create the value described in
the model? Does the firm have these capabilities?
• Implementation: The company must have the ability to actually make it happen.
• Capabilities: Does the firm have the resources (financial, core competencies, and so on) to make
the selected models work?

21. • Sustainability: The e-business model is particularly appropriate, will create a competitive
advantage over time.
Characteristics of digital business model
• The added value generated would not be possible without the use of digital technologies.
• The business model is characterized by digital business innovation, Services that are new to the
market.
• Customer acquisition and distribution are based on digital channels. Companies that develop and
drive digital business models using digital technologies to reach potential audiences.
• Customers are willing to pay for the digital service or the service. Digital business models thus
create a unique customer value that can be monetized.
Types of digital business model
• Freemium model
In this mode customers receive parts of the digital service (e.g., limited functions of software) free of
charge. This serves to manage the onboarding process with as little sales effort as possible.
• Marketplace model
Similar to Amazon, a digital platform functions as an intermediary marketplace for products and
services. Supply and demand are brought together. Digital business models that follow this model
derive their added value from the fact that a large number of independent players are active on the
marketplace and regular transactions take place. The marketplace model can work alone or represent
the extension of an existing offer of a company.
• Using instead of buying
This digital business model enables another form of use of an asset (e.g., software, automobile or
machine). It is no longer the possession, but the consumption or use of an asset that is monetarized.
In case of machines, payments can be made, for example, according to the operating time, the number
of units produced or other data retrieved from the machine. Digital business models based on the “use
instead of buy” principle can help companies to reach new target groups.
Development of digital business model
There are a number of questions to answer when developing a digital business model. These questions
are discussed as part of an innovation process in innovation management, often using methods such
as Open Innovation. The focus is on future customer benefits.
The development of digital business models therefore begins with a profound analysis of a
company’s future role in the market:
• What is the real problem behind buying existing products?
• Where do your existing products and services solve these problems well?
• Where do problems exist that have not yet been solved?

22. • In which areas does a product possibly create new problems that have not yet been solved?
• What problems and challenges do customers face in developing their own digital business
models?
• What problems and challenges will customers face in the future?
Implementation of digital business model
• Choosing the right ideas
Evaluating and choosing among a large number of innovative ideas is a key step that supports the
development of a portfolio of new business models which, in turn, needs to be aligned with the vision
as well as the strategy of the company. A business model consists of four dimensions: (WHO) is the
target customer and what his/her needs, (WHAT) is the value proposition and with the help of which
products and services is it generated, (HOW) is the value proposition delivered and (WHY) is the
business model profitable
• Problem/Solution-Fit
The first step after detailing a business model idea is the so-called Problem/Solution-Fit. This is where
the assumed problems and needs of the customer are validated. The early customer interaction allows
to evaluate whether the imagined solution can satisfy the needs or solve the problems and whether
the customer in interested in learning more about it. It is important to narrow down the market and
identify the customer group that has the biggest problem and is therefore most interested in the
solution.
• Product/Market-Fit
Once the fit between customer problems and solution is validated, the Product/Market-Fit phase
checks whether customers are interested in the business model as a whole, including the mix of
services, products and its features. The main objective is to identify the "must-haves" and the overall
desirability of the solution. This can only be achieved through visualizations, Minimal Viable
Products (MVPs) and direct customer interaction. It is crucial to incorporate what has been learned
directly into the solution and to verify the improved version again.
• Willingness to Pay
This third step is about deep diving into the revenue model. Many companies find it very difficult to
not check the willingness of customers to pay until this step, as this is the crucial aspect from their
point of view. A reliable assessment of the willingness to pay can only be achieved once the value
proposition and its related product and service offerings have been defined so exactly that any
customer can understand it. Otherwise, companies run the risk of overestimating unspecific approval
from previous phases and risk too much too quickly.
• Value Delivery Phase

23. As soon as the willingness to pay has been validated and pilot customers have been identified, the
Value Delivery Phase can be used to map and develop the production and logistics processes needed,
which cooperation partners are necessary and how the exact cost structure will look like.
• Scaling & KPI (Key Performance Indicator)
In the last step prior to the market entry, it is necessary to determine how the success of the business
model actually looks like and how this can be measured. The typical growth and financial key figures
may be enough, but due to the strategic character of new business models, aspects such as synergy
effects and scaling potential are also important factors. After this step, the business model turns from
a project into a product that needs to be managed accordingly.

E-Business Models Classification

1. Activity Level E-Business Models
• Online purchasing: Firms can use the Web to place orders with suppliers, thus automating the
activity.
• Order processing: This occurs when online retailers automate Internet transactions created.
• E-mail: When organizations send e-mail communications to stakeholders.
• Content publisher: Companies create valuable content or services on their Web sites, draw lots
of traffic, and sell advertising. Another type of content publishing, the firm posts information
about its offerings on a Web site, thus saving printing costs.
• Business intelligence (BI): This refers to the gathering of secondary and primary information
about competitors, markets, customers etc, and using it for strategic decision.
• Online advertising: As an activity, the firm buys advertising on someone else’s e-mail or Web
site.
• Online sales promotions: Companies use the Internet to send samples of digital products (e.g.,
music or software), or electronic coupons, among other tactics.

24. • Pricing strategies: With dynamic pricing, a firm presents different prices to various groups of
customers, even at the individual level.
2.Business Process Level E-Business Models
• Customer relationship management (CRM): Retaining individual customers through strategies
that ensure their satisfaction with the firm and its products, keep customers for the long term
increase the number and frequency of their transactions.
• Knowledge management (KM): Combination of a firm’s database contents and technology used
to create the system that transformation of data into useful information and knowledge
management.
• Supply chain management (SCM): coordination of the distribution channel to deliver products
more effectively and efficiently to customers.
• Community building: Firms build Web sites to draw groups of special- interest users. Firms
invite users to chat / post e-mail on their Web sites to attract potential customers to the site.
• Database marketing: Collecting, analysing, and disseminating electronic information about
customers, prospects, and products to increase profits.
• Enterprise resource planning (ERP): A back-office system for order entry, purchasing,
invoicing, and inventory control.
• Mass customization: Internet’s unique ability to customize marketing mixes electronically and
automatically to the individual level.
3. Enterprise level e business model:
• E-commerce refers to selling goods and services on the Internet, either in one transaction or over
time with an ongoing subscription.
• Direct selling refers to a type of e-commerce in which manufacturers sell directly to consumers,
eliminating intermediaries such as retailers.
• Content sponsorship is a form of e-commerce in which companies sell advertising either on their
Web sites or in their e- mail.
• A portal is point of entry to the Internet, such as the Yahoo! and AOL Web sites. They are portals
because they provide many services in addition to search capabilities.
• Online brokers are intermediaries that assist in the purchase negotiations without actually
representing either buyers or sellers.
-The brokerage model is E*TRADE (online exchange), and eBay (online auction),
-A B2B exchange is a special place because it allows buyers and sellers in a specific industry to
quickly connect.
• Online agents represent either the buyer or the seller and earn a commission for their work.

25. • Manufacturer’s agents represent manufacturing firms that sell complementary products.
• The catalogue aggregator, brings together many catalogue companies to create a new searchable
database of products for buyers.
• Shopping agents help individual consumers find specific products and the best prices online.
• The reverse auction, allows individual buyers to enter the price they will pay for particular items
at the purchasing agent’s Web site, and sellers can agree or not.
• An online purchasing agent is called a buyer cooperative or a buyer aggregator.
• A virtual mall is similar to a shopping mall in which multiple online merchants are hosted at a
Web site.
Performance metrics
The only way to know whether a company has reached its objectives is to measure results. There are
specific measures designed to evaluate the effectiveness and efficiency of an organization’s
operations. With this information, the company can make corrections to be sure it accomplishes the
goal. Performance metrics should be defined along with the strategy formulation so the entire
organization will know what results constitute successful.
Performance metrics used to measure strategy effectiveness:
It Translate the vision, strategy, or e-business model into components that have measurable outcomes
that various departments can use to create action plans,
It Communicate to employees what results the firm values. When employee evaluations are tied to
the metrics, people will be motivated to make decisions that lead to the desired outcomes.
Following are the some of the metrics used for measuring the performance of digital marketing:
• Web analytics software helps companies to analyse all the data on server logs to uncover usage
patterns. They can do this through free services or through purchased software. Web analytics is
the e-marketing term for the study of user behaviour on Web pages. Companies collect data as
users click through pages and take actions, such as registration or purchase. Companies use these
data to optimize their online investments. These metrics help firms manage Web content, improve
user targeting and personalization, and increase user engagement (and much more).
• Cookie files are small data files written to a user’s hard drive when visiting a site. They are
necessary for using shopping carts and other operations at a site. When customers return, the
cookie file data are retrieved and used to understand how many visitors are returning.
Amazon.com uses cookie file data to display the user name on its home page instantaneously.
• Page tags are one pixel on a page that is invisible to users (a pixel is one dot of light on a computer
screen). Page tags activate a special script when users are on the page, providing information such
as when items are removed from a shopping cart. Tags can also be activated based on cookie files
on the visitor’s hard drive from a previous visit creating data about the return visit and what the

26. user did. Geolocation, uses many different technologies to locate an internet-enabled device (and
its owner) at its physical world address: For example, WIFI, GPS (global positioning satellite
coordinates), or simply IP addresses. Marketers can use this for market segmentation when they
observe consumer behaviour from various countries or other more precise locations. E-marketers
use thousands of different performance metrics, The Balanced Scorecard
• Others like click through rate, web server statistics, changes in awareness, changes in purchase
intent, return on investment, changes in engagement level, sales conversion rate, inbound inquire
rate etc,
The balanced scorecard
before to measure success, firms used Financial performance, Market share, The bottom line (profits).
But these approaches are narrowly focused and place more weight on short-term results rather than
addressing the firm's long-term sustainability. The Balanced Scorecard method of Kaplan and Norton
is a strategic approach. It is a management and measurement system which enables organizations to
clarify their vision and strategy and translate them into action. The goal of the balanced scorecard is
to tie business performance to organizational strategy by measuring results in four areas such as
financial perspective, customer perspective, internal business perspective, and innovation and
learning perspective.

Four perspective of balance scorecard
• Customer perspective: The customer perspective scorecard includes ways to measure goals
such as customer loyalty, satisfaction, appropriateness of target markets, etc.

27. • Internal perspective: The Internal perspective scorecard includes ways to measure goals related
to the quality of online services.

• Learning and growth perspective: The learning and growth perspective scorecard includes
ways to measure goals related to online service innovation and continuous improvement.

• Financial perspective: The financial perspective scorecard includes ways to measure financial
goals.





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