Unit I

Digital Marketing
Digital marketing is the component of marketing that uses the Internet and online based digital
technologies such as desktop computers, mobile phones and other digital media and platforms
to promote products and services
Origin of digital marketing:
The 90s

Archie, the first search engine, debuted in the early 1990s, heralding the birth of search. SEO, or
Search Engine Optimization, quickly followed.

The first clickable web-ad banners were introduced in 1994. The first identifiable social media
site was launched in 1997, with 3.5 million users. In the 1990s, a slew of websites still in use
was found, including Google and Yahoo’s web search, both of which debuted in 1998.

The Millennial Generation

A massive economic bubble grew in the new millennium. However, the bubble’s peak and burst
between 2000 and 2002 harmed many businesses. Many new sites were launched in the 2000s
as the economy recovered from the boom, including the beginnings of LinkedIn in 2002,
Myspace and WordPress in 2003, and Facebook in 2004. In the early 2000s, mobile text
messaging marketing became increasingly popular.
The Mobile Era
The latter half of the decade saw increased marketing and sales, with Amazon’s e-commerce
sales surpassing $10 billion. Over the next few years, mobile app culture expanded with the
introduction of Whatsapp, Instagram, and Snapchat to the digital world.
The Present
Today, 65% of an individual’s digital media time is spent on a mobile device. The digital
advertising industry is now valued at around $200 billion, with Google Ad Words accounting for
96% of the company’s revenue. With an estimated 3.1 billion online users, social networking
has led the digital marketing revolution. The rise of bloggers and Instagram has resulted in a $1
billion industry for influencers, which are anticipated to grow. Digital marketing is expected to
grow in the coming years, with many new developments and changes in this exciting industry.
Traditional VS Digital Marketing:
Internet Users in India:

The 4 P’s of digital marketing:

The marketing mix, also known as the four P’s of marketing, refers to the four
key elements of a marketing strategy: product, price, place and promotion
Product:
The item or service being sold must satisfy a consumer’s need or desire.
Example:
Before the iPhone was launched, most consumers did not realize the need for a
phone that would let them access everything at their fingertips. The way Apple
marketed its product compelled people to simplify their lives by carrying a
smartphone that could also serve as a GPS, calendar, search engine, flashlight,
weather guide and calculator.
Price:
An item should be sold at the right price for consumer expectations, neither too low nor too
high.
Example:
Price points play a vital role in making a product successful. For example, if a
product is overpriced, only a few consumers will purchase it. Conversely, a
product that is priced too low can give consumers an impression of inferior
quality, thus preventing them from purchasing it.
Promotion:
The public needs to be informed about the product and its features to
understand how it fills their needs or desires.
Example:
Timing can play an influential role in promotional marketing. Take, for example,
the football season during which pizza delivery deals are targeted during games.
This entices consumers to try new products they may not have enjoyed
otherwise.
Place:
The location where the product can be purchased is important for optimizing sales.
Example:
The place is where the product is marketed and distributed from. For example,
when targeting a product to seniors, it would be wise to not market it on
TikTok. Similarly, products targeting the younger generations would gain more
attention if they were promoted online and on social media platforms.

Mapping 4Ps of Digital Marketing to 4Ps of Marketing

Product or Service or Solution

 In the digital world, the way a product is presented has changed. Since the
customer is showing knowledge of their requirements, Businesses are more
showing the ability in describing their products.
 They have the power to define the product in the form of a short blog or a
video.

Place or Access
  In the digital world, the product is quickly and globally available or accessible with
complete information on the Internet.
 The only change we have from the traditional marketing era is the change of
platform to educate customers about the product.
 People prefer to compare and buy products online rather than going with the
traditional purchase.
 With Digital Marketing, you promote your product online in an easy-to-understand
manner by creating interactive content which has to power to reach a wider
audience.

Price or Value

 Usually, people prefer to compare different features of products before buying

them and pricing comes last, but pricing changes consumer behavior within a
fraction of seconds.
 Digital marketing allows you to set prices and update campaigns around buying
or purchase habits of clients.
 Consider this, you know the customer has bought health-related products in the
past. That means there is more possibility to pitch health-related products to the
client by viewing history.

Promotion

 In the digital era, companies have started educating or informing people by

providing content, blogs, or article in the form of promotion.
 Similarly, digital marketing campaigns give you the flexibility to set up
campaigns based on age, gender, interest, location, and a variety of other
parameters.

The significance of 4P’s of Digital Marketing

 The mentioned elements of the “marketing mix” are interrelated to each

other.
  Usually, based on these elements, business strategy and plans are created to
achieve success.
 However, set them in an incorrect order, and the results can be catastrophic
(damage).

What is the consumer decision journey?

 Consumer decision journey is a model of the customer buying process that describes
how Consumers make their decisions throughout their experience or relationship with
the brand.
 This model evaluates how it can influence the customer’s purchase decision process by
recognizing key touchpoints and customer interactions.
 The consumer’s decision journey is not a linear model, so the actions they describe
overlap and repeat until the purchase decision. The importance of factors such as
customer loyalty and postsale strategies is highlighted.

Steps in the consumer decision process:

The consumer decision-making process involves five basic steps.

1. Problem recognition

 The first step of the consumer decision-making process is recognizing the need for a
service or product.
 Once consumers recognize a want, they need to gather information to understand how
they can fulfill that want, which leads to step two. But how can you influence consumers
at this stage? Since internal stimulus comes from within and includes basic impulses like
hunger or a change in lifestyle, focus your sales and marketing efforts on external
stimulus.
 Develop a comprehensive brand campaign to build brand awareness and recognition––
you want consumers to know you and trust you.
 Most importantly, you want them to feel like they have a problem only you can solve.
Example: Winter is coming. This particular customer has several light jackets, but she’ll
need a heavy-duty winter coat if she’s going to survive the snow and lower
temperatures.

2. Information search

 When researching their options, consumers again rely on internal and external factors,
as well as past interactions with a product or brand, both positive and negative.
  In the information stage, they may browse through options at a physical location or
consult online resources, such as Google or customer reviews.
 Your job as a brand is to give the potential customer access to the information they
want, with the hopes that they decide to purchase your product or service.
 Create a funnel and plan out the types of content that people will need.
 Present yourself as a trustworthy source of knowledge and information another
important strategy is word of mouth—since consumers trust each other more than they
do businesses, make sure to include consumer-generated content, like customer
reviews or video testimonials, on your website.
Example: The customer searches “women’s winter coats” on Google to see what
options are out there. When she sees someone with a cute coat, she asks them where
they bought it and what they think of that brand.

3. Alternatives evaluation

 At this point in the consumer decision-making process, prospective buyers have

developed criteria for what they want in a product.
 Now they weigh their prospective choices against comparable alternatives. Alternatives
may present themselves in the form of lower prices, additional product benefits,
product availability, or something as personal as color or style options.
 Your marketing material should be geared towards convincing consumers that your
product is superior to other alternatives. Be ready to overcome objections—e.g., in sales
calls, know your competitors so you can answer questions and compare benefits.
Example: The customer compares a few brands that she likes. She knows that she wants
a brightly colored coat that will complement the rest of her wardrobe, and though she
would rather spend less money, she also wants to find a coat made from sustainable
materials.

4. Purchase decision

This is the moment the consumer has been waiting for: the purchase. Once they have gathered
all the facts, including feedback from previous customers, consumers should arrive at a logical
conclusion on the product or service to purchase.

 If you’ve done your job correctly, the consumer will recognize that your product is the
best option and decide to purchase it.
Example: The customer finds a pink winter coat that’s on sale for 20% off. After
confirming that the brand uses sustainable materials and asking friends for their
feedback, she orders the coat online.
5. Post-purchase evaluation

This part of the consumer decision-making process involves reflection from both the consumer
and the seller. As a seller, you should try to gauge the following:

• Did the purchase meet the need the consumer identified?

• Is the customer happy with the purchase?

• How can you continue to engage with this customer?

Remember, it’s your job to ensure your customer continues to have a positive experience with
your product. Post-purchase engagement could include follow-up emails, discount coupons,
and newsletters to entice the customer to make an additional purchase. You want to gain life-
long customers, and in an age where anyone can leave an online review, it’s more important
than ever to keep customers happy.

‍Digital Landscape
Today’s digital landscape isn’t the same as what we saw ten years ago—or even two years ago.

 The digital landscape is the total collection of hardware, software, and content that
interacts with digital advertising.
 This includes email services, websites, computers, smartphones, videos, blog posts,
and so on.
 In many respects, services like Facebook and Google are fundamental aspects of the
digital landscape.
 The digital landscape is constantly evolving based on the collective actions of all
potential customers.
 If some advertisements don’t work, companies create new ways of showing ads. If
content doesn’t reach people, companies make different types of content.

Components of a Digital Landscape

Digital landscape up into four main components:

Social Media Landscape

 The social media landscape includes sites like YouTube and Facebook.
 These platforms tend to have broad access to users and distinctive
characteristics.
Marketing Landscape
 The marketing landscape includes the digital tools and techniques use to
market to customers.
  This frequently crosses over with the social media landscape but also includes
other marketing tactics like Google’s services, blog posts, and offline content
that intersects with or directs people to your website.
 Technology Landscape
 The technology landscape includes the tools people use to access the internet, as
well as the hardware and software you have access to.

Media Landscape

 Finally, the media landscape is the overall realm of news and information that
you’re advertising in.
 The media landscape is important because it’s arguably the most challenging part to
control, so you may need to adapt to it instead of trying to direct it.

How Can a Digital Landscape Be Improved?

 There are two main ways to improve a digital landscape: adjusting your techniques and
applying machine learning and AI.
 Machine learning is key to processing the enormous amount of data that internet
users create during their engagement with each part of the web.
 We know that data is a pile that there are valuable materials in it, but processing pile will
provide more valuable material in less time than trying to sort by hand.
 There is no way any human can keep track of large amount of information.
 Computers training AI to not just understand trends but predict them to offer values
next year so on until we can completely predict the market.
 Machine learning is figuring out how to create decision trees.
 Figure out what questions to ask and what the likely outcome of each result will be can
use existing data sets to create startlingly accurate predictions on almost any topic.

Digital Landscape Trends

1. Influencer Marketing & Transparency

 Influencer marketing is a powerful way for connecting with potential audiences, but
only when it’s applied well.
 Most customers prefer influencers who are honest and upfront about advertising
partnerships.
 This is essentially a recommendation from a friend, and it’s a sharp break from the kind
of techniques we’ve seen in the past.

2. 5G and the Future of Cellular Technology

  5G and cellular technology are mainly about speed.
 Screen resolution is high enough that most companies don’t need to worry about this
any longer, but connectivity speeds impact how quickly people can access your content
and how likely they are to engage with it.
 High connection speeds also allow you to deliver many types of advertising more
effectively.
 A video can be captivating in ways blogs aren’t, for example, so speeds fast enough to
let people load videos can change your digital landscape.

3. Content Quality vs. Quantity

 Both of these are important, but according to experts like Neil Patel, quality ultimately
matters more than quantity.
 High-quality posts can help you establish yourself as an authority on a topic and make
people want to engage with your material, whereas frequent low-quality posts are more
likely to drive people away.

POEM framework

 The POEM framework can be applied to many marketing practices, e.g., social media
marketing, search engine optimization and marketing, email marketing, print advertising,
retail marketing, and many more.
 POEM stands for paid, owned, and earned media. While not a new framework, POEM
represents a foundational approach to any a digital marketing strategy. POEM can be
used to formulate and guide your digital marketing strategy and tactics, allowing you to
capture more qualified leads and deliver better results.

There are three key components to the POEM framework:

Paid Media:

 Represents sponsored or paid ads that organizations run on various communication

platforms. Digital examples include Facebook ads, Google ads, LinkedIn sponsored ads,
banner or display ads, YouTube video ads, etc. However, offline paid media is also
included, e.g., newspaper, radio, and magazine ads. In essence, paid media is any media
where you pay to get exposure or access to an audience that you may not have an existing
relationship with, i.e., “strangers”.

Owned Media:

 Includes the content an organization creates and controls. Websites, e-newsletters,

and blogs are good online examples. Offline examples could be a physical store, trade
show booth, a paper newsletter, or even your employees (because they do represent your
organization and your brand). The target audience for this type media is often prospective
or existing customers.

Earned Media:

 Represents content about your organization, services, or products, but created and
distributed by others.
 Digital examples include shared posts, posts by customers about your organization,
reviews, referrals, etc.
 Non-digital examples could include articles written by news organizations based on a
press release or anyone who decides to write about your organization on their own. In
 essence, when you have earned the attention of your fans or advocates such that they
“talk” about your brand, this is considered earned media.

Digital Marketing plan

A digital marketing plan is a document that outlines the marketing goals pursued by a company.
It encompasses strategies, timelines, channels, and budget.

Components of a digital marketing plan

1. Advertising

 Online advertising involves bidding and buying relevant ad units on third-

party sites, such as display ads on blogs, forums, and other relevant websites.
 Types of ads include images, text, pop-ups, banners, and video. Retargeting is
an important aspect of online advertising.
 Retargeting requires code that adds an anonymous browser cookie to track new
visitors to your site. Then, as that visitor goes to other sites, you can serve them
ads for your product or service.
 This focuses your advertising efforts on people who have already shown interest
in your company.

2. Content marketing

 Content marketing is an important strategy for attracting potential customers. Publishing

a regular high-quality, relevant content online will help establish thought leadership.
 It can educate target customers about the problems your product can help them
resolve, as well as boost SEO rankings.
 Content can include blog posts, case studies, whitepapers, and other materials that
provide value to your target audience.
 These digital content assets can then be used to acquire customers through organic and
paid efforts.

3. Email marketing

 Email is a direct marketing method that involves sending promotional messages to a

segmented group of customers.
 Email marketing continues to be an effective approach for sending personalized
messages that target customers’ needs and interests.
 It is most popular for e-commerce business as a way of staying top of mind for
consumers.
4. Mobile marketing

 Mobile marketing is the promotion of products or services via mobile phones and
devices.
 This includes mobile advertising through text messages or advertising in downloaded
apps.
 However, a comprehensive mobile marketing approach also includes optimizing
websites, landing pages, emails, and content for an optimal experience on mobile devices.

5. Paid search

 Paid search increases search engine visibility by allowing companies to bid for certain
keywords and purchase advertising space in the search engine results.
 Ads are only shown to users who are actively searching for the keywords you have
selected.
 There are two main types of paid search advertising — pay per click (PPC) and cost
per mille (CPM).
 With PPC, you only pay when someone clicks on your ad.
 With CPM, you pay based on the number of impressions.
 Google Adwords is the most widely used paid search advertising platform; however,
other search engines like Bing also have paid programs.

6. Programmatic advertising

 Programmatic advertising is an automated way of bidding for digital advertising.

 Each time someone visits a web page, profile data is used to auction the ad
impression to competing advertisers.
 Programmatic advertising provides greater control over what sites your advertisements
are displayed on and who is seeing them so you can better target your campaigns.

7. Reputation marketing

 Reputation marketing focuses on gathering and promoting positive online reviews.

 Reading online reviews can influence customer buying decisions and is an important
component of your overall brand and product reputation.
 An online reputation marketing strategy encourages customers to leave positive reviews
on sites where potential customers search for reviews. Many of these review sites also
offer native advertising that allows companies to place ads on competitor profiles.

8. Search engine optimization

  Search engine optimization (SEO) focuses on improving organic traffic to your
website.
 SEO activities encompass technical and creative tactics to improve rankings and
increase awareness in search engines.
 The most widely used search engines include Google, Bing, and Yahoo. Digital
marketing managers focus on optimizing levers — such as keywords, crosslinks,
backlinks, and original content — to maintain a strong ranking.

9. Social media marketing

 Social media marketing is a key component of digital marketing. Platforms such as

Facebook, Twitter, Pinterest, Instagram, Tumblr, LinkedIn, and even YouTube
provide digital marketing managers with paid opportunities to reach and interact with
potential customers.

10. Video marketing

 Video marketing enables companies to connect with customers in a more visually

engaging and interactive way.
 Pre-roll ads (which are shown for the first 5–10 seconds before a video) are another
way digital marketing managers can reach audiences on video platforms.

11. Web analytics

 Analytics allow marketing managers to track online user activity.

 Capturing and analyzing this data is foundational to digital marketing because it
gives companies insights into online customer behavior and their preferences.
 The most widely used tool for analyzing website traffic is Google Analytics, however
other tools include Adobe Analytics, Coremetrics, Crazy Egg, and more.

12. Webinars

 Webinars are virtual events that allow companies to interact

 Webinars are an effective way to present relevant content — such as a product
demonstration or seminar — to a targeted audience in real time.

Ethical Challenges in Digital Marketing

1. Consumer privacy
 Online marketing has become so successful because it allows companies to target their
advertising based on certain demographics.
  With the use of cookies and online tracking, search engines are able to gather
information about a person including where they live, how old they are and their
interests.
 This information is then used by online marketers to sell products and services directly to
consumers. But what happens if a company gets hold of this information without
consent? What rights do the consumers have over the ethical data collected? Privacy
policies for all ethical methods of online marketing should always be made clear before
any consumer interacts with an ethical digital marketer.

2. Copyright infringement

 Everyone understands the importance of copyright law, but ethical issues in online
marketing are being constantly challenged. Take for example ‘Google bombing’ which
is an unethical technique aimed at increasing a specific website’s ranking on Google
searches by linking the site’s content to another site which constantly comes up high
in search rankings.

3. Personal information security

 The ethical way for companies to handle customer data is clear; take care of the
personal information given to you by consumers, ensure it remains secure and never
disclose any details without consent. But what happens when a company gets
hacked? Hackers have become increasingly sophisticated at breaching measures put in
place by ethical marketers.

 Typically, hackers access the website through vulnerability in the server’s hosting system
which allows them to gain access to private information stored on that server or similar
servers. They then use this data illegally to try and capture more details through
phishing ( attack that attempts to steal your money, or your identity, by getting you
to reveal personal information ) -, such as card and bank details.

4. Advertisements on ethical websites

 Many online marketers choose to advertise products and services through ads on third-
party websites.
 Marketers may use a third-party to place their ads across websites, but need to be
mindful of how well that website aligns with the company’s ethics and values.
 Professional looking ads are also key in ensuring ethical online marketers get their
message across ethically.

5. Using social media influencers

 A social media influencer is someone with a large following on social media platforms
such as Twitter, Facebook and Instagram for example, who has the ability to influence
many consumers in purchasing goods or services.
 There have been many examples of social media influencers promoting products to their
following without explaining that they have been paid to do so. This impacts the
effectiveness and authenticity of a campaign.
  Consider how ethical it is to use ethical influencers who will be transparent about any
ethical agreements they may have entered into.

Frauds on the web:

 Everyone understands the importance of copyright law, but ethical issues
in online marketing are being constantly challenged.

 Example ‘Google bombing’ which is an unethical technique aimed at

increasing a specific website’s ranking on Google searches by linking the
site’s content to another site which constantly comes up high in search
rankings. Copyright infringement can be highly damaging to any
campaign.
 Many examples of social media influencers promoting products to their
following without explaining that they have been paid to do so
Data and Integrity theft:
 The ethical way for companies to take care of the personal information
given by consumers, ensure it remains secure and never disclose any
details without consent.

 But what happens when a company gets hacked? Hackers have become
increasingly sophisticated at breaching measures put in place by ethical
marketers.

 Typically, hackers access the website through in the server’s hosting

system which allows them to gain access to private information stored
on that server. They then use this data illegally to try and capture more
details through phishing campaigns, such as card and bank details.
Issues of privacy:
 Online marketing has become so successful because it allows companies
to target their advertising based on certain demographics.
 With the use of cookies and online tracking, search engines are able to
gather information about a person including where they live, how old
they are and their interests.
  This information is then used by online marketers to sell products and
services directly to consumers. But what happens if a company gets hold
of this information without consent? Privacy policies for all ethical
methods of online marketing should always be made clear before any
consumer interacts with an ethical digital marketer.

IT Act 2000
 Due to people with filthy and intelligent minds have been grossly
misusing the internet to commit crimes in cyberspace. Hence, it was
necessary to farm and enforce a law that would provide adequate legal
protection and recourse against the people who are causing security
threats to the resources of e-commerce of any legal organization.
Therefore, the IT Act 2000 was passed by the Government of India.
 The important issues that are dealt with by the Information Technology
Act 2000 include
 Data protection
 The legality of the products,
 The services being offered online,
 Protection of the customer’s privacy policy,
 Online advertising compliance, and
 Compliance with the provisions of the IT Act 2000.
Objectives of Information Technology Act 2000
 In I996, the UNCITRAL ( United Nations Commission on International
Trade Law ) adopted the model of electronic commerce. The provisions
or objectives of the Information Technology Act 2000 [IT Act 2000] can be
summarized as follows:
• To provide legal recognition for all the transactions that carried out
by the means of electronic data interchange in place of paper-based
methods of communication.
 • To grant legal recognition to digital signatures for the
authentication of any matter or information, that requires
authentication under any law.
• To facilitate the electronic filing of Government documents with
the respective departments. Also, it facilitates the electronic
storage of data.
• To provide legal sanction for the transfer of funds electronically to
and between financial institutions and banks.
• To grant legal recognition for keeping the books of accounts in
an electronic format for the bankers.
• To promote legal infrastructure and e-commerce along with secure
information systems. At the same time, amend the Indian Penal
Code, Bankers Book Evidence Act, 1891, and RBI Act, 1934.
• To enforce certain laws that would manage and reduce cyber-
crimes at national and international levels. The IT Act 2000 governs
all internet activities in India and it is applicable to all online
transactions. It provides for the penalties and prosecution for all the
non-compliances.
Positive Aspects of IT Act 2000
Considering the viewpoints of e-commerce industry in India, the Information
Technology Act 2000 contains many beneficial aspects which are as follows:
• Email will be an accepted of the communication system in India that can
be acknowledged in a court of law.
• Section 4 of the IT Act 2000 confers all legal recognition of electronic
records (ie) information should be in writing or in printed or typewritten
form.
• With the coming of the various provisions of the IT Act, 2000 digital
signatures are now getting legal validity.
• Section 3 of the Information Technology Act 2000 contains various
provisions related to the authentication of electronic records by attaching
 the digital signature.
• Section 35 of the IT Act 2000 allows companies being the authority to
certify and issuing of legal validated signatures certificates as prescribed
by the Central Government. It also heralds e-governance by issuing
notifications on the e-web.
• Section 6 of the Information Technology Act 2000 provides that the filing
of any form, document, application, creation or retention or preservation
of records, permit, receipt, or payment in the government offices and its
agencies must be done through electronic form.
Defects Of Information Technology Act 2000
The IT Act had its own advantages and dis-adavantages. While it increased the
security in cyberspace, it caused the conflict of jurisdiction amongst the
population. The following points mentioned below analyze the defects of IT Act
2000 briefly.
• Moreover, e- commerce is totally based on the system of names
(domain). This act does not look after the rights and liabilities of the
domain owners.
• This act does not provide the protection for the IPR (Intellectual
Property Rights). This is because the issues related to computer
programs and relations are very common.
• While the IT Act promotes safety in cyberspace. It does not provide
security in various kinds of cybercrimes such as: cyberstalking, cyber
threat, cyber room abuse and the rest of it.
• Lastly, the main issue of the Information Technology Act, 2000 was about
its implementation. It does not lay down any kind of parameters for its
regulation and parameters.