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Fundamentals Of Digital Marketing

Puneet Singh Bhatia


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Puneet Singh Bhatia

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Copyright © 2017 Pearson India Education Services Pvt. Ltd

Published by Pearson India Education Services Pvt. Ltd, CIN: U72200TN2005PTC057128,


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Gian Dhyaan Kich Karam Na Jaana
(Shri Guru Granth Sahib - Page 750)

I know of no bigger karma than the knowledge of truth.

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Case Studies

Flipkart: Heralding Indian E-commerce 1

Amazon India: The Global Unicorn 50

Google India: From Keyword to Alphabet 81

Facebook India: Expanding the Network 115

Twitter India: Monetizing Communication 155

Times Internet: The Voice of News 200

LinkedIn India: Identity that Matters 243

Make My Trip: Profiting from Experiences 277

Info Edge India: The Story of Real Jobs 345

One97 Communications: No Cash, No Corruption! 375

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Contents

Preface xv
Acknowledgments xix
About the Author xxi

UNIT I BASICS OF DIGITAL MARKETING

Chapter 1 Introduction to Digital Marketing 1


Evolution of Digital Marketing 3
From Traditional to Modern Marketing 4
Rise of the Internet: The Dotcom Era 6
Post Dotcom: Creation of Internet Business Models 8
Growth of ‘E’ Concepts: from E-Business to Advanced E-Commerce 10
Digital—The Next Wave of Marketing 15
Digital Marketing: An Introduction 17
Emergence of Digital Marketing as a Tool 19
Media Consumption Drivers for New Marketing Environment 20
Digital Marketing Channels: Types and Business Models 21
Digital Marketing Applications and Benefits 27
Internet Marketing: Underlying
Technology and Frameworks 28
Internet Basics—Internet/Intranet/Extranet/Portals 29
Understanding Web and Wireless Technologies 29
Reshaping Interactions: Individuals/Businesses/Non-Profit 31
Opportunities and Challenges to Internet Marketing 34
Digital Marketing Framework 35
Delivering Enhanced Customer Value 36
Market Opportunity Analysis and Digital Services Development 38
ASCOR Digital Marketing Framework 39
Application of Digital Marketing 42
Critical Success Factors for Digital Marketing 46
Chapter Summary 47
Review Questions 47
Digital Application Exercises 48

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viii | Contents

Chapter 2 Digital Marketing Models Creation 50


Factors Impacting Digital Marketplace 52
From Brick and Mortar to Bricks and Clicks 52
Growth of Interactive Platforms 54
The New Network Economy 57
From Marketspaces to Marketplaces 58
Changing Sales and Customer Service Patterns 60
Value Chain Digitization 62
Understanding Value Chain Functions 63
Key Value Chain Process: A Basic Understanding 64
Value Chain Elaboration: A Case of Journal Publishing 65
Emergence of Digitized Value Chain 67
Digital Marketing Business Models 69
Understanding Digital Value Elements 69
Digital Value-Led Marketing Approach 72
Digital Marketing Models Creation 73
Application of Digital Marketing Models 76
Chapter Summary 79
Review Questions 79
Digital Application Exercises 80

Chapter 3 The Consumer for Digital Marketing 81


Consumer Behavior on the Internet 83
Evolution of Consumer Behavior Models 84
Impact of Digital Technology on Consumer Behavior 87
Attributes of Online Buying Behavior 90
Influence of the Web Experience 92
Marketing Intelligence from User’s Online Data 93
Managing Consumer Demand 96
Understanding Consumer Demands 96
Demand-Led Product Development Process 98
Brand Building on the Web 100
Web-Tracking Audits and Forecasting 104
Integrated Marketing Communications (IMC) 105
Basics of Integrated Marketing Communications (IMC) 105
Channels for Integrated Marketing Communications  107
Four Pillars of the IMC Construct 109

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Contents | ix

Impact of Digital Channels on IMC 111


Chapter Summary 112
Review Questions 113
Digital Application Exercises 113

UNIT II DIGITAL MARKETING STRATEGY DEVELOPMENT

Chapter 4 Digital Marketing Assessment Phase 115


Elements of the Assessment Phase 117
Marketing Strategy and its Digital Shifts 117
The Assessment Phase Elements 121
Macro-Micro Environment Analysis 123
Marketing Situation Analysis 125
Digital Marketing Internal Assessment 128
Analyzing Present Offerings Mix 128
Marketing Mix Analysis 133
Internal Resource Mapping 136
Core Competencies Analysis 138
Digital Marketing Objectives Planning 140
Digital Presence Analysis 140
Digital Presence Analysis Matrix 143
Digital Marketing Objectives Development 145
Digital Marketing Objectives Review 151
Chapter Summary 152
Review Questions 153
Digital Application Exercises 153

Chapter 5 Digital Marketing Strategy Definition 155


Digital Marketing Strategy Groundwork 157
Understanding Digital Business Strategy 158
Emerging Digital Business Structures 162
Digital Core Competency Alignment 166
Customer Development Strategy (STP 2.0 Framework) 170
Defining the Digital Marketing Mix 178
Offering Mix for Digital 178
Digital Pricing Models 182
Channels of Purchase—Reaching the E-Consumer 185

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x | Contents

Managing Promotional Channels 187


Developing the Extended Ps- People, Process, Programs, and Performance 189
Digital Marketing Strategy Roadmap 190
Developing Digital Marketing Strategy Roadmap 190
The 6S Digital Marketing Implementation Strategy 193
PLC Concept—Marketing across the Product Life Cycle 195
Chapter Summary 197
Review Questions 198
Digital Application Exercises 199

UNIT III DIGITAL MARKETING PLANNING AND SETUP

Chapter 6 Digital Marketing Communications and Channel Mix 200


Digital Marketing Planning Development 202
The Media Planning Shift to Digital 202
Understanding Digital Media Planning Terminology 205
Digital Media Planning Stages 207
Investment Analysis and Planning for Marketing RoI 215
Designing the Communication Mix 217
Marketing Communications: from Mass Market to Mass Customized 218
Steps to Creating Marketing Communications Strategy 220
Developing Communications Messaging 223
Communication Mix across Digital Channels 225
Introduction to Digital Marketing Channels 227
Intent-Based Marketing (Search Marketing) 227
Brand-Based Marketing (Display Marketing) 231
Community-Based Marketing (Social Media Marketing) 234
Partner, Direct, Content, and Platform-Based Marketing Channels 236
Chapter Summary 239
Review Questions 240
Digital Application Exercises 241

Chapter 7 Digital Marketing Operations Set-up 243


Understanding Digital Marketing Conversion 245
Basics of Lead Generation and Conversion Marketing 246
Lead Nurturing and Lead Scoring Concepts 248
Setting up for Conversion: from Web-Page to Landing Page 251
Lead Management across Channels—Owned, Earned, and Paid 254

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Contents | xi

Basics of Web Development and Management 256


Pre-Planning for Web Development 256
Website Development Stages 259
Developing Site Diagrams and Wireframes 261
Website Content Development and Management 262
User Experience, Usability, and Service Quality Elements 265
Understanding Elements of User Experience 265
Implementation of Interaction Design 268
Understanding Web Usability and Evaluation 269
Measuring Service Quality Elements 271
Chapter Summary 273
Review Questions 274
Digital Application Exercises 275

UNIT IV DIGITAL MARKETING EXECUTION

Chapter 8 Digital Marketing Campaign Management 277


Basic Elements of Digital Campaigns 279
Basic Elements of Digital Campaign Management 280
Campaign Planning and Budgeting 282
Campaign Set-up and Launch 284
Campaign Monitoring to Reconciliation 285
Implementing Intent-Based Campaigns (Search Execution) 287
Search Campaign Planning Basics 288
SEM Campaign Set-up and Execution 290
SEO Basics and Management 301
Implementing Brand-Based Campaigns (Display Execution) 309
Display Campaign Management Basics 310
Emerging Data-Driven Display Models (Programmatic and RTB) 319
Rich Media Ad Campaign Management 324
Campaign Execution for Emerging Marketing Models 326
Content Marketing (Cornerstone of Emerging Marketing Models) 326
Community-Based Campaigns (Social Media Execution) 329
Campaigns for Partner, Communication, and Platform-Based Marketing 331
Campaign Analytics and Marketing RoI 334
Basics of Web Analytics 334
Understanding KPIs 335
Web Analytics 2.0: Developing a Marketing Analytics Framework 335

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xii | Contents

Marketing Implementation RoI 338


Digital Marketing Refinement Phase 340
Chapter Summary 341
Review Questions 342
Digital Application Exercises 343

Chapter 9 Digital Marketing Execution Elements 345


Managing Digital Marketing Revenue 347
Digital Revenue Generation Models 347
Customer Loyalty Management in the Digital Era 349
Rise of Relationship Marketing: Turning Loyalists to Advocates 351
Driving Advocates through Customer Experience 353
Managing Service Delivery and Payment 355
Understanding Electronic Payment Systems 356
Emerging Digital Payments Solutions 357
Managing Digital e-Services (Setting up Digital Services Unit) 360
Selling through Cybermediaries 362
Managing Digital Implementation Challenges 364
Understanding E-commerce Implementation Challenges 365
Internal Challenges: Business and Infrastructure 366
External Challenges: Legal and Compliance 368
Consumer-Specific Security, Privacy, Ethical, and Social Challenges 370
Chapter Summary 372
Review Questions 373
Digital Application Exercises 373

UNIT V DIGITAL BUSINESS - PRESENT AND FUTURE

Chapter 10 Digital Marketing-Landscape and Emerging Areas 375


Digital Marketing—Global Landscape 378
Digital Marketing Overview—Global Spend 378
Digital Marketing Overview—Advertising Spend 379
Conceptualizing Digital Marketing Landscape  382
Digital Marketing Technology/Tools Landscape 384
Digital Marketing—The Indian View 384
India Digital Spend Overview 387
India Digital Advertising Spend 390

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Contents | xiii

Key Digital Advertising Trends in India 391


India Digital Marketing/Advertising Tools Landscape 394
Digital Marketing—Emerging Trends and Concepts 394
Big Data and IoT—Data Technologies Impacting Marketing 398
B2B and SMB—Segments-Based Digital Marketing 400
SoLoMo—the Next level of Hyperlocal Marketing 402
Chapter Summary 404
Review Questions 405
Digital Application Exercises 406

Chapter 11 A Career in Digital Marketing 407


Emerging Opportunities for Digital Marketing Professionals 408
The Changing Role of CMOs in Organizations 408
Building a Career in Digital Marketing 409
Top Digital Marketing Areas as Career Tracks 411
Approaching a Career in Digital Marketing 414
Chapter Summary 416
Bibliography 1 417
Bibliography 2 450
Index457

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Preface
Digital marketing is all about the challenge of balancing both the sides of the marketing wheel
while walking tightrope on the rim. On one side lies any marketer’s owned media (websites,
apps, social media pages) while the other represents the ever-changing demands and percep-
tions of his target customer. And this is just the start of the balancing act; one which extends
across an advertiser and a publisher’s needs, between CPM (Cost per mile) and CPC (Cost per
click) and extends to measuring data and managing privacy concerns. The list is endless and so
are the solutions available in the market.
It is these complexities and choices that make digital marketing unique and render a distinct
flavor to this field of study. This book aims at helping both digital marketing enthusiasts and
practitioners discern such nuances to make informed decisions right from digital marketing envi-
ronment assessment and strategy development to marketing operations till refinement.
One of the key endeavors of authoring this title was to develop a textbook on Digital
Marketing in India which starts from base zero and explains the key fundamentals to those new
to the subject. This book will act as a primer not only for management students but also media
professionals, marketing managers, brand marketers, budding entrepreneurs and even individ-
uals looking to create a personal brand online and understand the basics of digital marketing
concepts, tools, and techniques from grounds-up.
So why should you consider this text for academic, corporate, or personal needs? While there
are many international texts available on multiple constituent areas of digital marketing like
search, social, display, mobile, video marketing, etc., a need was felt for an India-specific stan-
dard text which lays the foundation for the genesis of digital marketing, explains the transition
from traditional ‘E-marketing’ to ‘Digital Marketing’ and presents an integrated digital market-
ing framework to move step by step towards creating a digital presence, and finally benefitting
from it.
Fundamentals of Digital Marketing provides unique features along the following lines:
• Outlines the move from ‘E-marketing’ to ‘Digital Marketing’: This is one of the first marketing
titles in India which moves beyond the ‘E-marketing’ plank to cover the new digital para-
digm which is in essence a movement from:
(a) ‘Traditional Channels’ marketing to purely ‘Digital Channels’ marketing
(b) ‘Supply Orientation’ marketing to ‘Personalized Consumer’ marketing
(c) ‘Product or Service’ marketing to ‘Digitized (Hybrid) Offerings’ marketing
• Underlines a practically-oriented digital marketing model (ASCOR Framework): This is one of the
first Indian marketing texts which has a ‘Digital Marketing’ specific Framework: ASCOR
(Assessment, Strategy, Channel and Communication, Operations and Refinement) that
forms the backbone for the entire ecosystem of digital marketing activities and concepts.

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xvi | Preface

• Provides a detailed orientation to Digital Transformation: To understand ‘digital’ as a concept and


establish its importance for marketing, in the beginning of the textbook itself (Chapter
2) we have provided an extensive orientation to ‘digital transformation’ to help students/
business owners/entrepreneurs realize how they can best digitize any traditional business
at hand through ‘Digital Marketing Models’ and identify key ‘Digital Value Elements’
• Showcases industry deployable frameworks: This title has been written in a manner which
would help readers to deploy digital marketing concepts across each aspect of their indus-
try, and be realistically ready to market each product digitally.
• Details concepts through topical Case Studies of Indian businesses: Each chapter starts with a case
study on a prominent India-born or global India-based business, traverses through the
company’s growth in digital marketing, key challenges faced and lessons the reader can
learn from their business story.
• Includes Digital Application exercises on Indian brands: At the end of each chapter, application
exercises on key digital marketing concepts (pertaining to each chapter) have been pro-
vided, for students to self-assess their concepts and also apply them to brands which they
have seen around/grown with in India since the last decade.
• Devotes a complete chapter to careers in digital marketing: The last chapter of the book is devoted
specifically to the kind of jobs available in the market and how to approach those career
tracks. Once the reader has mastered the concepts in all preceding chapters, he/she would
know exactly the areas where he can look to be employed across digital marketing.
Coming to the structure of the book, this book has been covered across eleven chapters which
form a part of five core units as follows:
• UNIT I (Basics of Digital Marketing): The first part introduces the reader to the basics
of digital marketing, its underlying technologies and frameworks and establishes the
ASCOR digital marketing framework. It further delves into defining the concepts of value
chain digitisation and digital marketing models creation. It also touches upon consumer
behaviour aspects for digital marketing including consumer demand management and
Integrated Marketing Communications (IMC) for digital platforms.
• UNIT II (Digital Marketing Strategy Development): This part begins with an elabo-
ration of the Assessment stage of ASCOR Framework which covers the Ecosystem for
Digital Marketing, key elements of Digital Marketing Assessment and Digital Marketing
Objectives Planning. It is followed by an exploration of the Digital Marketing Strategy
stage which includes developing an understanding of the Digital Marketing Mix elements
and a deep-dive into the 6S Digital Marketing Implementation Stages.
• UNIT III (Digital Marketing Planning and Setup): In the third part we cover the planning
and setup stages of the ASCOR Framework including Digital Marketing Communications
and Channel Mix and Digital Marketing Operations Setup. It starts with the coverage of
Digital Media Planning stages and provides an introduction to all key digital marketing
channels. Apart from this it also covers the basics of conversion marketing, web devel-
opment and management along with developing an understanding of User Experience,
Usability and Service Quality Elements.

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Preface | xvii

• UNIT IV (Digital Marketing Execution): The fourth part drills deep into the basic elements
of digital campaigns and their execution across all key Digital Marketing Types (Search,
Display, Social, Partner, Direct, Content, Platform marketing). It completes the ASCOR
Framework stages with coverage of Digital Marketing Measurement and Refinement. This
part concludes with a full chapter on Digital Marketing Execution Elements including
Digital Marketing Revenue, Service Delivery & Payment, Security & Privacy Concerns,
Legal and Ethical Issues.
• UNIT V (Digital Business-Present & Future): This last part sheds light on key present and
future aspects of Digital Marketing starting with the latest trends in digital business to
covering the rise of E-commerce along-with discussing emerging digital business models.
The book ends with a dedicated chapter on emerging career opportunities for digital pro-
fessionals which will help readers of the book decide on career tracks they could follow
being digital marketing professionals.
This book comprises insights gained from my years of corporate work experience and industry
interactions with clients/workmates across multiple sectors, domains and geographies, which I
have aimed to transform into practical and actionable frameworks and models. The title has been
authored keeping in mind the needs of students, faculty, corporates, entrepreneurs and individu-
als who want to master the core concepts of digital marketing. I believe the title will best equip
readers to begin a career in digital marketing and use the concepts as a launchpad to venture into
specific channels, platforms and techniques as they discover them during their digital marketing
careers.
And as is beautifully put in the parting words of the iconic and inspiring Pixar animation
‘Ratatouille’, I hope that with the knowledge gained from this book, you don’t just ‘Inspire
Others’ but regularly ‘Surprise Yourself’ in the true moments of exhilaration this journey presents!

We, at Pearson, wish you all the best for these digital expeditions.

Puneet Singh Bhatia

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Acknowledgments
Among the many endeavors of marketing is to make its way into one’s subconscious. And that
is what this field of study probably did to me through mediums unknown and ways unsaid. The
thrill of being able to reach out and influence even strangers through the written word and asso-
ciated imagery is probably one of the most lucrative aspects of a marketing career (the ability to
make a real dent in sales for business being the other).
It is between these traverses that one finds the inspiration and influence to write a book on
marketing. And in this journey there are many who inspire you with their passionate conversa-
tions and those who make it real with their practical insights. From those who let marketing run
breathlessly to those who let it tiptoe with a strict bridle, a marketer gets shaped through interac-
tions across such multiple extremes. And it is these exchanges that have manifested themselves
in the form of the text laid out in front of you right now.
From academic influences including Prof. Simran Singh (Simran Singh & Associates) who
taught me the basics of Retail Marketing at NIFT, Delhi to Prof. Ramesh Kumar (IIM, Bangalore)
who reiterated the fact that each word in Marketing had a meaning (to quote one of his most
popular comments ‘There is a difference between Marketing and English and you should know
when you are speaking what!’) to corporate gumption exemplified by Ganesh Venkataraman
(AVP, Cognizant Technology Solutions), I have both been impressed and blessed to be associ-
ated with media, marketing and digital professionals who have shaped my understanding of the
subject and brought me closer to viewing it through the lens of a regular observer (which has
been my attempt in writing this book).
From ideation to the ink on this page there are special mentions which I have for Pearson
India team whose support has been highly instrumental in bringing forth this book. I would
like to thank Varun Goenka for believing in my idea and the need for a comprehensive India
specific title on Digital Marketing. A big word of thanks to Jubi Borkakoti for making sure that
not only do we have the best edited text at hand but also supporting introduction of new ideas
and features and for the relentless hours of discussions, at times on just a single image or an
inverted comma. My gratitude also goes out to Priyankita Dey and Anumeet Kaur from the
Rights and Permissions team at Pearson for their painstaking work on obtaining the rights for
each image along-with Neha Nupur and team for all her efforts on the marketing of the title. I
am also deeply thankful to Vikram Singh (DGM Product & Senior Managing Editor, Pearson)
for providing me this opportunity to convert and present my experiences in the form of this title.
And finally coming to those who lay right to the major share of my gratitude: Family. My
biggest indebtedness to my parents, especially to mom who taught me how to burn the brightest
even when situations seemed tough- her strength and wisdom will always be the backbone for
each of my endeavours. I also owe a lot to the endless technical and data related discussions with
my brother (Avneet Bhatia) and content related feedbacks from my partner (Manpreet Kaur)
both of whom have been my constant support throughout this extensive undertaking.

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xx | Acknowledgments

My final acknowledgment to the light of my life, my daughter Aarza, who lovingly (and
unknowingly) gifted a lot of her hours which went into the making of this title for which I am
obligated forever.
I hope that this edition provides you (the reader) the most simple yet practical way of learn-
ing digital marketing concepts from scratch and really helps in developing your knowledge to
emerge as a strong digital marketing professional in future. Request each of you to share feed-
back and suggestions on topics you would like to extend or change in the book and I would try
my best to include the same in forthcoming editions.
Thanks again for providing an opportunity for us to learn this wonderful and emerging area
together.

Puneet Singh Bhatia


Let’s be in touch at:
Email:connect.fodm@gmail.com
Skype ID: puneet.bhatia75

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About the Author
Puneet Singh Bhatia is a digital marketing and media professional with
over 13 years of experience in providing marketing consulting, opera-
tions and delivery services for prestigious international and Indian clients
including Google, Viacom, RTL Group, Wiley, New York Times, Apple,
Twitter, Reliance, Hindu, Hindustan Times, Anand Bazaar Patrika, among
others. Throughout his career, Puneet has led digital marketing projects
across social, search, display, mobile, video, programmatic among other
areas of digital marketing.
During his corporate stint, Puneet has been responsible for creating marketing strategies,
developing digital domain and process transformation frameworks, and executing thought
leadership in multiple positions he has held at Patni Computers (now CapGemini), Cognizant
Technology Solutions, and Axtria Inc. At Axtria, he presently holds a leadership position at one
of the fastest growing big data and decision sciences company serving global clients across sales
and marketing functions.
Puneet has completed his Post Graduation from IIM-Bangalore, with a specialization in
marketing. His interests include tracing the shifts in digital marketing landscape especially in
upcoming areas including data-driven marketing, experiential marketing, conversion optimiza-
tion, marketing automation, etc. He is a regular participant at key digital marketing forums and
has been a guest speaker across major Indian campuses, promoting digital marketing knowledge
and concepts. ‘Fundamentals of Digital Marketing’ is Puneet’s second book title. Prior to this, in
2015, he has adapted an academic textbook on ‘E-Marketing’ for Pearson India.
In recognition of his efforts across digital marketing, in 2016 he was cited with the ‘100 Most
Influential Marketing Tech Leaders Award’ by World Marketing Congress and CMO Council.

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Fundamentals of
Digital Marketing

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CHAPTER

1
Introduction to
Digital Marketing

LEARNING OBJECTIVES
After studying this chapter, you will be able to:
• Explain the evolution of digital marketing
• Define digital marketing and differentiate it from traditional ‘e-models’ like e-business
and e-commerce
• Outline the underlying technology and frameworks within which digital marketing op-
erates and gain an understanding of digital transformation models
• Describe the structure of digital marketing, opportunities, applications, business modes
and challenges
• Understand key components and application of ASCOR Digital Marketing Framework
across multiple stakeholder scenarios

CASE STUDY flipkart: heralding indian E-commerce

F lipkart, the poster boy of digital entrepreneurship and flagbearer of e-commerce in India,
has had multiple firsts to its credit which has given it a distinctive advantage as well as a
good positioning in India’s rapidly evolving digital marketing landscape. With the expected
valuation of Indian e-commerce industry estimated to be $100 billion by 2020 (at currently
$17 billion), Flipkart has undoubtedly showed stellar growth from being an exclusively online
bookselling portal to garnering a valuation of $15 billion (figures as per May 2015 last fund-
raising round). According to Forbes.com, the e-commerce platform lists 30 million products,
ships eight million packages a month, and has 45 million registered users (as declared on
18 May 2015). Flipkart delivers in over 1,000 Indian cities and towns.
Flipkart began its operations in 2007, with the company’s founders Sachin Bansal and Binny
Bansal (alumni at the prestigious Indian Institute of Technology (IIT), Delhi) pooling in ` 2 lakh

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2 | Fundamentals of Digital Marketing

each and deciding to launch Flipkart, out of their two-bedroom apartment in Koramangala,
Bangalore. There was not a single transaction in the first 10 days, with the first order finally
placed by a customer from Andhra Pradesh for the book Leaving Microsoft to Change the World
by John Wood. From then to now, Flipkart has reported a revenue of ` 2,846 crore (FY
2014) with an estimated employee base of 33,000 (2015). In May 2014, Flipkart received
$210 million from DST Global and raised $1 billion in July 2014. Led by existing investors,
Tiger Global and South Africa’s media group Naspers, in May 2015, it raised $550 million.
Till today, the company has privately raised about $2.7 billion through multiple rounds of
funding.
What makes Flipkart so successful in the face of intense competition, difficult funding
climate, and ever-changing preferences of digital customers? The key to their success is widely
attributed to the unique marketing initiatives they had introduced early-on, including cash
on delivery (CoD), on-time deliveries, mobile-first initiatives, strategic acquisitions, in-house
product launches, and so on. Even on the promotional front, Flipkart has been known for
running some unique advertising campaigns like dressing kids as grown-ups enacting key
features of the brand and what it stands for. Exclusive branding through tie-ups with com-
panies like Motorola (for the launch of their Moto-G Series) was also one of their digital
marketing firsts in India. The impact of such initiatives can be judged from the fact that the
entire stock of Xioami Mi3 took just five seconds to sell, when booking was opened for the
second time for 20,000 phones. On the acquisitions side, Flipkart started its string of digital
acquisitions in 2010 obtaining companies like WeRead (social bookdiscovery tool), Mime360
(digital content platform firm), Chakpak.com (bollywood news site), LetsBuy.com (electron-
ics e-tailer), Myntra.com (a US$319 million deal of a competitor portal), Adiquity (global
mobile network), and Appiterate (mobile marketing start-up). The company is also investing
in four firms, including maps provider MapmyIndia, as it seeks to improve its supply chain
efficiencies, an area where it plans to invest over $2.5billion in the coming years.
It also is a great case study on digital seller partnerships, warehousing, and inventory man-
agement. Key initiatives to help suppliers grow their businesses include F1 Stop campaign
(offering registration, training, cataloguing, packaging, and financial assistance), Flipkart
Seller Campus (special four-hour training sessions on inventory management during peak
season), Growth Capital (helping SMEs leverage their business through the e-marketplace
platform), Seller Hub App (supporting sellers reaching out to 45 million Flipkart customers
on-the-go). Through these initiatives, Flipkart hit $1 billion in annual Gross Merchandise
Value (GMV) in 2014 (an year ahead of their target).
Since 2014, in their bid to improve margins, Flipkart has started concentrating on launch-
ing its own set of tablet, mobile phones, and even a phablet. The first among the series of
tablet phones was Digiflip Pro XT 712 Tablet. In July 2014, Flipkart launched its first net-
working router, under its own brand name—DigiFlip WR001 300 Mbps Wireless N Router.
In September 2014, Flipkart launched its in-house home appliances and personal healthcare
brand (Citron) which includes a wide range of cooking utilities and grooming products.
With a lot going their way across their digital journey, there have also been incidents
which have marred the brand’s reputation and posed execution-related challenges to Flipkart.

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The key among them was the handling of their ‘Big Billion Day’ online sale on 6 October
2014, which exposed certain flaws like non-availability of products, out-of-stock listings,
backend (technical) issues, post-booking cancellations, leading to customer dissatisfaction
and apologies from the firm to all. A different kind of challenge included Flipkart receiving
mass criticism on the subject of net neutrality after they announced a partnership with Airtel
to use the Airtel Zero platform. On 14 April 2015, Flipkart had to move back to its decision
on using Airtel Zero platform. On the product side, Flipkart faced some setbacks like the
launch of Flyte Digtial Music Store, a legal paid-music download service, which did not get
popular and had to be shut down on 17 June 2013.
With the target of becoming India’s first $100 billion internet company, there are clear
challenges and opportunities at hand for this market leader. Key challenges include manag-
ing the supplier ecosystem; providing superior service for their ever-growing customer base;
managing an efficient back-end; enticing top talent; improving ease of payments; rural sales
management; and so on. Since Flipkart is eyeing to earn more than 50 per cent of its revenue
from mobiles, it sees this platform as its biggest opportunity. This is because from a mar-
keting and customer data standpoint, mobiles provide a greater in-depth transaction-level
data which would help Flipkart forecast better to provide the right kind of experience. It
has also introduced a new mobile web application called Flipkart Lite which is designed for
those who do not want to install apps for reasons like low storage capacity on their phone.
According to sources, Flipkart plans to phase out commissions and wants sellers to adver-
tise on its platform for a fee, a move aimed at enlisting more vendors and at the same time
earning higher advertising fee. Flipkart is also trying to cut dependence on its largest vendor
(WS Retail), which accounts for majority of the sales on the website.
With the company said to have set the target to reach a GVM of $8 billion, by adding
another 100,000 sellers on its platform, it is well set to target selling 1 billion goods by the end
of 2017. Flipkart appears to be the bellwether for all Indian digital businesses in the future
and with its phenomenal success, goes on to prove day after day that strong product knowl-
edge combined with astute marketing can make digital realities possible.

Evolution of Digital Marketing


Marketing as a discipline has undergone radical changes over the past few decades. Since 1450,
when Gutenberg’s printing press began its operation, leading to mass production of flyers and
brochures, till the present time when automated posting of online advertisements has become
very common, marketing has kept up incredibly well with changing technology. Along with
shifts like customers’ social orientations towards buying and the humongous information avail-
able at hand to compare multiple products and brands, ‘modern marketing,’ a phrase coined
recently, has emerged steadily marking a new phase.
To understand how and why the original marketing concept and its orientations have shifted,
let us go through the various stages of evolution termed as ‘Marketing Eras’—

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4 | Fundamentals of Digital Marketing

• Trade era: products were handmade; hence, supply was limited


• Production era: products were mass produced and consumers focused on features like low
cost and availability
• Product era: focus moved from quantity to quality and consumers laid more emphasis on
quality, performance, and innovative features
• Sales era: with increasing competition companies were compelled to emphasize on
aggressive selling and promotion, commoditization of products, leading to saturation of
consumer demand
• Marketing era: marketing emerged as a practice as consumers started demanding better
products; differentiators like pricing, distribution, and promotion became important
• Relationship era: customers started getting valued to build a long-term orientation
• Digital era: also called the social/mobile era, the focus is on real-time and social exchange-
based marketing where communication and social interactions play a prime role

From Traditional to Modern Marketing


To appreciate the evolution of marketing through its history, we need to first understand how
marketing as a discipline was applied in a traditional sense to its modern avatar.
The classic definition of marketing according to AMA (The American Marketing Association)
is ‘the activity, set of institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and society at large.’
If we elaborate this definition to compare and contrast traditional marketing activities with
how they are being managed in the modern sense, we will see that technology has played a big
part in this transition.

Premise of Traditional Marketing


Traditional marketing, by definition, includes platforms and techniques which were used as one-
way communication tool rather than interactive ones. Four such historically important tools are
listed below.
• Print marketing (newspapers/magazines/direct mailers/catalogues) provided daily news,
classifieds, local and interest-based dailies/periodicals/flyers which were monetized
through promotions and local advertisements
• Broadcasting (television/radio) provided entertainment, knowledge, and live events, pri-
marily supported by television advertisements
• Home marketing (billboards) has had great impact over decades in terms of influencing
consumers
• One-to-one marketing (telemarketing) had been effective though expensive

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Factors Impacting the Shift from Traditional to Modern Marketing


Traditional marketing techniques (more prevalent prior to the 1990s, before interactive technology
started making its impact) focused on elements which in the present age have undergone
significant shifts (for comparative estimate between traditional and modern marketing areas,
(see Table 1.1). Key reasons for such shifts include:
• Power shift from business to consumer attributed to availability of a wide variety of prod-
uct choices and saturation of key categories
• Growing amount of communication channels leading to clutter and brands moving away
from mass marketing to customized online marketing
• Consumers’ preference for interactive rather than traditional medium like newspapers,
magazines, TV, which had a one-way information flow
• Need to validate marketing with product and service recommendations from trusted group
of influencers/social interactions
• Need for comparison of product benefits to make informed decisions (multiple messages
need to be heard, understood, and trusted upon by target segment)
• Higher interaction with products and more avenues for such interactions facilitating holistic
messaging rather than the traditional practice of one-off marketing
• The emergence of marketing as a discovery-led immersive exercise for an individual/group
rather than forced messages targeted to large audiences

table 1.1 Comparison of Modern Marketing Scoring over Traditional Techniques

area of Comparison traditional Marketing Modern Marketing

(a) Interactivity Customer has no choice in All channels have certain


receiving messages of his interest interactivity
(b) Engagement Difficult to track results and impact Focus is on customer satisfaction
of marketing and building a relationship
(c) Agility Delivery though physical channels Efficiency in terms of ‘agility of
takes larger fulfillment time service’ is much higher
(d) Conversions Closer to product awareness and Activities targeted to more towards
interest stages ‘end of the funnel’ relating them
with consumption
(e) Personalization Mass marketing techniques with High potential to customize
low personal touch offerings for each customer
(f) Brand imagery Difficult to build brand imagery With rich media/video gaining
because of platform limitations prominence strong imagery is
possible
(g) Social involvement Not able to involve social Ability to socialize and build trust
integration features by leveraging social networks

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Advent of Modern Marketing Techniques


Modern marketing involves the following platforms and techniques:
• Search marketing: using search technology towards marketing
• Online advertising: placing ads across websites/digital platforms
• E-mail marketing: sharing commercial messages with people
• Social media marketing: using social media platforms/networks for marketing
• E-commerce: selling/trading goods and services on any online platform
• Digital on traditional mediums: integrating digital technologies with traditional market-
ing mediums to improve interactivity (set-top box for TV can be integrated with inter-
net-enabled features to support digital sales)
Although modern marketing is surging ahead, traditional marketing methods have their own
importance while targeting niche customers and high-end groups who are more used to person-
alized and value-added targeting.

Rise of the Internet: The Dotcom Era


The transition from traditional to modern marketing has occurred over a period of time on the
basis of fundamental technological changes impacting marketing. Most of them, undoubtedly,
have been the invention of the internet and its wide application to business marketing. The con-
cept of internet which began with development of electronic computers in the 1950s in United
States impacted the basic manner in which information would be stored and distributed globally
through the concepts of communication protocols and internet networking (wherein multiple
separate networks could be joined to a network of networks).
More important were the advancements which led to the creation of e-mail and World Wide
Web (WWW), which brought out the power and influence of the internet and related it to
common man’s needs for communication and information. E-mail started in 1965 as a way for
multiple users of a time-sharing mainframe computer to communicate with each other. In 1989,
Tim Berners-Lee, a scientist at CERN, with his invention of the World Wide Web ensured that
the practical application of this technology would be made available to all. This, followed by the
inventions of web browsers like Mosaic and Netscape, made sure that sitting in any corner of
the world one would be able to access data and receive information from any other part of the
globe. It liberated the way information would be shared and marketing would be promoted in
the coming years.

World Wide Web Leading to an Explosion of Information Share


The invention of the internet led to a large-scale economic boom never witnessed before. The
evolution of WWW brought with it the development of HTTP (Hypertext Transfer Protocol)
which is the foundation of data communication for the World Wide Web. HTTP functions as
a request–response protocol in the client–server computing model. Typically for any particular

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Chapter 1 • Introduction to Digital Marketing | 7

data to appear on any web page, a request is placed by the client to the server using an HTTP
protocol. For example, a web browser like Netscape could be the client and a music player run-
ning on a computer can be the server.

Emergence of Websites and the Concept of URL


World Wide Web started facilitating the display of text and images through websites which were
a set of static web pages containing information useful for their target audience. A website is
typically hosted on at least one web server and is accessible through an internet address known
as the Uniform Resource Locator or the URL. All the websites together constitute what we call
the World Wide Web. Websites contain web pages which are typically documents in plain text
with specified formatting instructions of Hypertext Markup Language (HTML).

Dotcom Era and the Phenomenon of Modern Marketing


Modern marketing began to create and use web pages to build virtual information centers for
their products and brands primarily for information dissemination and also to become the first
movers to adapt technology as a part of their marketing activities. In that period, the entire scale
of activities and reach of internet for marketing was still not well established, even difficult to
envision. A unique phenomenon that occurred with the rise of WWW related to what we call
the dotcom era, or more popularly referred to as the Dotcom Bubble.
With websites started to be developed at a rapid scale, each individual/firm would need to
create a unique name or URL which would become the address for its online venture. Dotcom
(.com), the last part of the url and a short form for commerce, indicated that the companies were
engaged in internet commerce. As it became clearer to companies, investors, and speculators
that internet was going to be the next biggest medium for selling and marketing, several com-
panies started setting up virtual shops in the hope that a large part of their business would start
functioning online through these websites.
This led to multiple initial public offerings (IPOs) in succession wherein businesses were
throwing huge sums of money on a relatively new medium for which they had little knowledge
and no experience. The valuations of these companies were based on nothing more than just
business ideas scribbled on a piece of paper. The basic principle was that investors did not want
to lose out on a chance to be a part of the gold rush, even when they had no understanding of
how or by when these investments would turn into a profit.
On 11 March 2000, Nasdaq, the key stock index for Wall Street witnessed a tumble of tech-
nology shares’ valuation, following which the net worth of a large of number of dotcom com-
panies started to fall rapidly. Nasdaq experienced big falls as the business community realized
that most of these technology companies were merely bubbles waiting to burst and blew away
billions of dollars with them. This led to the era which we now commonly know as the dotcom
bust, post which a lot of companies understood that digital was to play a supportive role in
marketing and sales would primarily be driven through physical models, a thought that would
eventually change in the subsequent decade.

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Throughout this mayhem, the biggest positive takeaway was that digital marketing as it is
known to be today got defined and established. Many interesting business ideas came forth,
which a decade later, would flourish to actually become internet behemoths.

Post Dotcom: Creation of Internet Business Models


As discussed in the last section, even while the dotcom bubble was taking technology stocks
down, a lot of positives were being registered on the internet timeline. In 1995, Amazon.com
bookstore had appeared; Netscape IPO was launched; and Sergey Brin and Larry Page were
planning the future Google. Microsoft Internet Explorer appeared in 1996 and Hotmail came
up as the first web e-mail site whereby internet started to impact the daily lives of its con-
sumers laying the foundation of business to consumer (B2C) as a prominent online business
model.
By 1997, people in the United States were looking at more than one million sites on their
screens and blogging as an activity was beginning to attain prominence. The next year saw
Mozilla come up with an open-source browser and Google answer more than 10,000 search
queries a day. All of these were positive and stable milestones which saw internet take its baby
steps in an environment of huge frenzy and over-hyped expectations.
The emergence of Microsoft as the most dominant browser along with AOL’s purchase of
Netscape were activities at the peak of the dotcom bubble which had significant impact post
2000, with Microsoft and Google dominating the technology landscape. The biggest impact at
this point of time was the emergence of search as a broad area of research where rapid strides
led to the expansion of web as a critical marketing platform and Google as its most dominating
player.

Growth and Impact of Search Technologies


The biggest impact which internet had on marketing can be clearly attributed to the rise of search
technologies. The main aim of a search engine is to organize the internet and provide a coherent
structure for easy access to information on specific keywords. Research on search computing had
begun as early as 1990 with the launch of WebCrawler, the first full-text web search engine, in
1994. Before WebCrawler only web pages were searched and this was the first search engine
which was ‘all-text’ crawler based and allowed users to search for any word on any web page.
Also in 1994, Lycos was launched and it became the first major commercial endeavor of its kind.
The following years saw the emergence of a lot of competing search engines including Excite,
Infoseek, Inktomi, Altavista, Yahoo, the last two becoming industry leaders in web directo-
ries and web search engines respectively. Around 2001, Google with its proprietary ‘Relevancy
Ranking’ approach was close to disrupting the search engine business and, in the process, went on
to create a commercial engine which made it the center of internet activity. Google’s Page Rank
patent was not only a technological revolution but also a business innovation which changed the
way marketing could be approached and profitable business models developed on the internet.

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Chapter 1 • Introduction to Digital Marketing | 9

The impact of search technology is pivotal to digital marketing and would be discussed in later
chapters in detail.
Post 2000, there have been multiple other technological advances, apart from search, which
have impacted businesses run on the internet. Key ones of those include impact of file-sharing
technology, integration of communication services, growth of design—user interface (UI) tech-
nologies, and emergence of social collaboration tools. We would touch upon a few of these in
detail to understand their right impact on the growth of digital marketing.

From Web 1.0 to Web 2.0: The Changing Nature of Web


With the emergence of multiple technology streams beyond the dotcom era, it is important to
trace how the nature of web transformed over the years and how it impacted internet commerce
and marketing.
The term Web 2.0, which was coined by Darcy DiNucci in 1999, was popularized by Tim
O’Reilly at the O’Reilly Media Conference in 2004. It came to signify the cumulative changes in
the manner web pages were made and built from their earlier avatar in the pre dotcom era. Web
1.0 came to be known as the era when a vast majority of users simply acted as consumers of
content and content creators were few (Cormode and Krishnamurthy, 2008). Table 1.2 outlines
the differences between Web 1.0 and 2.0.

table 1.2 Key Differences between Web 1.0 and Web 2.0

areas of Comparison Web 1.0 Web 2.0

(a) Information Discovery Read-only web Read-write web


Search and browse Publish and subscribe
Stickiness Syndication
(b) Information Retrieval Transactional Relationship
(c) Information Aggregation Commercial aggregators Micro-aggregators
Web forms Web applications
Directories (Taxonomy) Tagging (Folksonomy)
(d) Marketing and Selling Push; Contextual Conversational; Personal
Page views Cost per click
Low targeting Individual targeting
(e) Content Control Publishers Content authors
Singularity Collaboration
Portals Really simple syndication
(f) Content Structure Domain and pages Tagged objects
Static site Dynamic site

Source: Adapted from White (2007).

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The shift from Web1.0 to Web2.0 and now even extending to Version 3.0, has had a major
impact on how marketing through the internet has evolved and continues to do so, thus opening
newer avenues to reach out to and meet the ever-changing demands of the consumer. We would
cover the impact of these changes in the upcoming chapters.

Growth of ‘E’ Concepts: from E-Business to Advanced E-Commerce


The rapid rise of internet and its effects on business at large can only be appreciated once we
understand the influence, extent, and impact of multiple technologies at the business value chain
level. A value chain is a chain of activities that a firm operating in a specific industry performs in
order to deliver a valuable product or service for the market.
Essentially, as defined by Michael Porter in his understanding of value chains, there are five
key primary activities, (as listed below), performed by any firm towards reaching its goals of
value and revenue creation.
(a) Inbound Logistics includes relationships with suppliers and all the activities required to
receive, store, and disseminate inputs.
(b) Operations refers to all the activities required to transform inputs into outputs (products
and services).
(c) Outbound Logistics includes all the activities required to collect, store, and distribute the
output.
(d) Marketing and Sales refers to activities that inform buyers about products and services,
induce them to purchase, and facilitate their purchases.
(e) Service includes all the activities required to have the product or service work effectively
for the buyer after it is sold and delivered.
To understand and trace the impact of technology on these stages, it is imperative to map the
processes enhanced by technology across each of them (see Fig. 1.1). This would also help us
appreciate the differences in the definitions of terms such as e-business, e-commerce, e-mar-
Primary Activities
Ma

Inbound Outbound Marketing


Operations Service
rgi

Logistics Logistics and Sales


n

Firm Infrastructure
Activities
Support

Human R a
Resource Management
gin
ar

Technology
n Development
p
M

Procurement

Figure 1.1 Source: Michael E. Porter (1985: 11–15).

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Chapter 1 • Introduction to Digital Marketing | 11

keting, online marketing, or the most recently coined term, digital marketing. In all these
cases, ‘E’ stands for ‘Electronic Networks’ and describes the application of electronic network
technology—including internet and electronic data interchange (EDI)—to improve and change
business processes.
The reason for application of Porter’s Value Chain model is that it explains in a single con-
solidated view the coverage of each of the e-models and why they are essentially different even
though they are used interchangeably in multiple contexts across business discussions and texts.
That said, there are variations in the way these concepts have been explained across various
standard marketing primers and one would benefit from taking this explanation as an instance
of such attempts.

Understanding E-Models
To understand what each e-model encompasses, we would need to map the key physical process
areas as described in Porter’s model and understand the extent and coverage of technology on
each of them in a holistic manner. To understand, let us take an example of the most ubiquitous
internet term ‘e-business’ whose impact covers each of the four process areas outlined in Fig. 1.2
to appreciate how it impacted business in general and became the pioneer of future e-models.
E-business The term ‘e-business’ was coined by IBM’s marketing and internet teams in 1996
and was looked at as a key differentiated market offering. It involved application of information
and communication technologies (ICT) to support all the physical processes and activities of any
business looking to go virtual.
Here are some examples of the kind of processes that impact across the value chain which
form the basis of any e-business model.
(a) Impact on procurement function: management of physical procurement through IT, for
example, Supply Chain System
(b) Impact on production function: improvements in internal production or resourcing, for
example, production/knowledge portal
(c) Impact on delivery function: technology for internal logistics, for example, intermediaries
collaboration portal
(d) Impact on consumption function: integration with internal customer management tools,
for example, CRM platforms
These examples illustrate the key objective of ‘e-business,’ which was set up to help transition of
the physical processes of any business to make them more technology enabled and efficient. The
key point to note here is that ‘e-commerce’ as a concept has a more internal focus to transform
internal processes and tools and enable them for better external collaborations.
The Concept of E-commerce Follows E-business E-commerce is considered to be the sales
aspect of e-business and involves a wide variety of internet-based business models. Typically,
an e-commerce strategy incorporates various elements of the marketing mix to drive users to a
website or an online marketplace (like Ebay) for the purpose of purchasing a product or service.

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12 | Fundamentals of Digital Marketing

Comparison of E-models

Inbound Logistics Operations Outbound Logistics Marketing and Sales


(also known as (also known as (also known as (also known as
Procurement Function) Production Function) Delivery Function) Consumption Function)

Suppliers Internal Teams Intermediaries Customers


Entities
Involved
Processes Processes Processes Processes

Technology collaborations increase as we move to newer models


Enchanced Enchanced Enchanced Enchanced
Business

Systems for
Improvements in Technology for Integration with
physical
E-

internal processes internal logistics CRM tools


procurement
Commerce

Cross-business Collaboration with Improvement in


Integration of
integration for external delivery customer transaction
E-

production facilities
commerce platforms processes
Marketing

Delivery platform Improving internal


integration with sales and marketing
E-

external partners systems

Online Marketing Technology platform Implementation of


Traditional collaboration with top online marketing
Marketing product platforms concepts
Models
Emerging Digital Marketing Collaboration with Implementation of
Marketing advanced technology digital marketing
Models intermediaries channels, platforms
and concepts

Business moving from production orientation to customer, delivery and search orientation

Figure 1.2 Comparison of E-models Mapped to Porter’s Business Value Chain

Baourakis defines it as: ‘The trading of goods and information through the internet’ (Baourakis,
Kourgiantakis, and Migdalas, 2002).
The major difference between e-commerce and e-business is that while e-business is aimed
at improvements in efficiency and productivity, e-commerce is a more revenue-oriented concept
which focusses on bridging internal and external systems through improved collaboration across
all commerce-oriented functions, from procurement to delivery.
As in the case of ‘E-business,’ let us go through some examples of e-commerce implementa-
tion across the value chain which would clarify the differences more clearly.
(e) Impact on procurement function: cross-business integration with portals/systems of other
suppliers, for example, portal-based procurement
(f) Impact on production function: integration of common production facilities, for example,
value added production chains

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Chapter 1 • Introduction to Digital Marketing | 13

(g) Impact on delivery function: collaboration with external delivery platforms for example,
web-based marketplaces
(h) Impact on consumption function: improvement in transaction/sales/payment-focused
processes, for example, customer payment platform
As can be seen above, e-commerce has a stronger orientation towards technology investments
for commerce and better collaboration with the internal–external tools to carry out the sales
process.
As can be seen in Table 1.3, e-commerce in India had started with the launch of IndiaMART
in 1996, almost during the same time as the rise of the dotcom era. The recent growth in
e-commerce had started with the rise of Flipkart in 2007 by two ex-Amazon employees which
gave Indian customers the first taste of how orders, placed through a website, can be fulfilled effi-
ciently, in time, and of the expected quality. (A detailed case on Flipkart and its unique growth
characteristics is covered in the beginning of this chapter.)

table 1.3 A Timeline for the Development of E-commerce Globally

1979: Michael Aldrich demonstrates the first online shopping system.


1981: Thomson Holidays, UK, is the first business-to-business online shopping system installed.
1982: Minitel was introduced across the nation in France by France Télécom and was used for
online ordering.
1984: Gateshead SIS/Tesco is the first B2C online shopping system and Mrs Snowball, aged 72,
is the first online home shopper.
1984: In April 1984, CompuServe launches the electronic mall in the USA and Canada. It is the
first comprehensive electronic commerce service.
1992: ‘Book Stacks Unlimited’ in Cleveland opens a commercial sales website (www.books.com)
selling books online with credit card processing.
1994: Netscape releases the ‘Navigator’ browser in October under the code name Mozilla.
Netscape 1.0 is introduced in the late 1994 with SSL encryption that made transactions
secure.
1994: Ipswitch IMail Server becomes the first software available online for sale and immediate
download via a partnership between Ipswitch, Inc. and Open Market.
1994: ‘Ten Summoner’s Tales’ by Sting becomes the first secure online purchase.
1995: Jeff Bezos launches Amazon.com and the first commercial-free 24-hour, internet-only
radio stations, Radio HK and NetRadio, started it broadcasting. Dell and Cisco begin to
aggressively use the internet for commercial transactions. eBay is founded by a computer
programmer Pierre Omidyar as Auction Web.
1996: IndiaMART, a B2B marketplace was established in India.
1996: ECPlaza, a B2B marketplace was established in Korea.
(Continued)

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Table 1.3 (Conitnued )

1998: Electronic postal stamps can be purchased and downloaded for printing from the web.
1999: Alibaba Group is established in China. Business.com was sold for US $7.5 million to
e-companies, which was purchased in 1997 for US $149,000. The peer-to-peer file sharing
software Napster was launched
2000: The dotcom bust
2001: Alibaba.com achieved profitability in December 2001.
2002: eBay acquires PayPal for $1.5 billion. Niche retail companies like Wayfair and Netshops are
founded with the concept of selling products through several targeted domains, rather than
a central portal.
2003: Amazon.com posts its first yearly profit.
2004: DHgate.com, China’s first online B2B transaction platform is established, forcing other B2B
sites to move away from the ‘yellow pages’ model.
2007: Business.com was acquired by R.H. Donnelley for $345 million.
2009: Z
 appos.com was acquired by Amazon.com for $928 million. Retail Convergence, an operator
of private sale website RueLaLa.com, was acquired by GSI Commerce for $180 million, plus
up to $170 million in earn-out payments based on the performance through 2012.
2010: Groupon reportedly rejects a $6 billion offer from Google. Instead, the group buying
websites went ahead with an IPO on 4 November 2011. It was the largest IPO since Google.
2011: Quidsi.com, the parent company of Diapers.com, was acquired by Amazon.com for
$500 million in cash plus $45 million in debt and other obligations. GSI Commerce, a
company specializing in creating, developing and running online shopping sites for brick
and mortar businesses, was acquired by eBay for $2.4 billion.
2012: US ecommerce and the online retail sales was projected to reach $226 billion, an increase
of 12 per cent over 2011.
2014: Overstock.com processes over $1 million in bitcoin sales. India’s e-commerce industry is
estimated to have grown more than 30 per cent from a year earlier to $12.6 billion in 2013.

Difference between E-Business and E-Commerce


While some use e-commerce and e-business interchangeably, they are distinct concepts.
In e-commerce, information and communications technology (ICT) is used in inter-business or
inter-organizational transactions (transactions between and among firms/organizations) and in
B2C transactions (transactions between firms/organizations and individuals).
In e-business, on the other hand, ICT is used to enhance one’s business. It includes any
process that a business organization (either a for-profit, governmental, or non-profit entity) con-
ducts over a computer-mediated network. Apart from the above-mentioned processes, from

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Chapter 1 • Introduction to Digital Marketing | 15

procurement to sales, e-business can also include enhancement of internal management pro-
cesses like employee services, training, internal information-sharing, video-conferencing, and
recruitment which help improve internal productivity.
Moving ahead from business and commerce, the most commonly used marketing term to denote any form
of internet operations is e-marketing. By definition, e-marketing involves utilization of electronic
medium to perform marketing activities and achieve the desired marketing objectives for an
organization. This term is typically misused for e-business and e-commerce and, as per proper definition,
should also be used to denote and represent marketing-related activities.
The focus of e-marketing is to facilitate the transition of physical marketing and sales-based
activities to a more automated, technology supported system which can drive the product discov-
ery process. Two examples which make the concept of e-marketing clearer include:
(a) Delivery of products/services through collaborations with external partners, for example,
logistics platform implementation
(b) Improvement of internal sales and marketing systems for stronger customer connect, for
example, loyalty automation platforms
Before we move on to explain ‘Online Marketing,’ we should understand how it differs from
e-marketing. Typically (as shown in Fig.1.2), e-marketing has a broader coverage which includes
not only online/internet marketing aspects but also more enterprise-specific marketing areas like
e-CRM, digital customer data, which gives it a broader scope than both of them. This is also the
reason why in the e-models comparison diagram, e-marketing has been shown in the traditional
bucket along with e-business and e-commerce.
The Concept of Online/Internet Marketing Online/Internet marketing started with refer-
ence to the internet and e-mail-based aspects of physical marketing and went on to grow and
represent activities aimed at transitioning all marketing activities to web and online platforms—
most primary of them being web-portals, e-mails, and blogs.
Along with the transition to web, the other most crucial characteristic of online market-
ing was the collaborations which started developing with other top platforms/websites holding
inventory for commerce including Amazon/E-bay. These collaborations formed the basis of the
growth of online marketing to its present avatar called digital marketing whose mainstay is deep
technology and multi-platform marketing engagement.

Digital—The Next Wave of Marketing


The growth of online marketing and proliferation of new media platforms and communication
channels have led to the evolution of marketing to its present form most commonly known as
digital marketing.
Digital marketing if explained on the lines on the Porter Value Chain concept would include
consumer and data-based technology implementations which aim at introducing and integrating
newer technologies for a more data-oriented highly targeted marketing which is personalized for
every consumer.

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16 | Fundamentals of Digital Marketing

Key examples which bring forth the power of digital marketing in the context of the Porter
model include:
(a) Delivery function: Collaboration with advanced technology intermediaries, for example,
Marketing Automation Tools for Lead Generation/Reverse Auction Platforms
(b) Consumption function: Implementation of digital marketing platforms, channels, and con-
cepts, for example, Search Marketing, Display Advertising, Social Media Marketing, etc.
While in the above section we have made introductions to key e-concepts and the basics of
online and digital marketing, before we delve deeper into defining digital marketing, its types,
models, and applications, it is imperative to also spend some time to understand the basis behind
digital becoming so important to companies globally and how it has become a broad subject of
study.

Definition of Digital and What It Means for Business


Digital by definition involves storing and transferring data in machine-readable language by con-
version into binary values of ‘zero’ and ‘one.’ It involves a shift from the way data, be it audio,
video, and images, was stored in the traditional mode (analog) to the manner in which it is
presently stored in the digital world.
For business verticals of all types, moving to digital helps improve efficiency of operations
and support transfer of more data at lower costs and bandwidths. It also optimizes the move to
paperless processes, improves data procurement and delivery functions, and helps better integra-
tion with end-consumer technologies to enhance customer interaction and service.
To understand how digital is transforming overall stakeholder interactions, let us look at
Fig. 1.3 which showcases transformation elements for each of the four key stakeholders—sup-
pliers, internal teams, intermediaries, and customers across the Porter value chain model, as
discussed in the preceding sections.
For each of the process functions related to each stakeholder (Procurement, Production,
Delivery, and Consumption), Fig. 1.3 showcases transformation elements across three key trans-
formation types:
(a) Automation: includes automation of various functions to enable faster and cheaper ways
of performing key business activities
(b) Digitization: involves conversion of physical assets and processes to port them on digital
platforms to be utilized by stakeholders and delivered to customers
(c) Collaboration: helps integrate and share knowledge through a set of tools and practices to
provide customers with a multi-channel digital experience.
Apart from the above elements, other digital support functions, which are essential to digital trans-
formation, include analytics, cloud (infrastructure), data management, and communication-related
technologies. This underlying technology stack is crucial to any successful digital implementation
and will be discussed in greater detail in the later chapters.

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Chapter 1 • Introduction to Digital Marketing | 17

Digital marketing typically corresponds to consumption function, wherein the main scope of
this book lies. The importance of explaining digital transformation elements (before we cover
digital marketing in detail) is to help visualize it as a part of the overall digital transformation
strategy. Before we move further that since the scope of digital marketing itself has expanded
tremendously, this textbook aims to cover digital marketing strategies in depth, while touching
upon other digital transformation elements, as and when they seem important in relation to
digital marketing itself.

Digital Marketing: an Introduction


As seen in the Digital Transformation Model (Fig. 1.3), the extent of technologies and collab-
orations across digital marketing are much more pronounced than all the other e-concepts put
together which outlines the essential difference and its rising prominence.
The definition of digital marketing according to IDM (Institute of Direct and Digital Marketing)
includes ‘the management and execution of marketing using electronic media such as the web, email, interactive
TV, wireless media in conjunction with digital data about customers characteristics and behavior.’

Product development Productivity


Process Digitization
Automation Collaboration

Internal Teams
Producrement Production Function Automating
Automation Consumption
Customers
Suppliers

Content Procurement Digital Transformation Consumption Channel


Digitization Function Model Function Digitization

B2B Collaboration Community


Portals Delivery Function Collaboration
Intermediaries

Supply Chain Fulfillment Tech Enablers


Automation Digitization Collaboration

Digital Support Functions

Transformation Analytics
Types
Cloud
Automation
Data Technologies
Digitization

Collaboration Communication Technologies

Figure 1.3 Stakeholder-Based Digital Transformation Model

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18 | Fundamentals of Digital Marketing

The unique differentiators from the definition are explained below.


(a) Digital marketing involves reaching out to potential customers through a set of interactive,
intuitive, and advanced electronic devices and platforms which go beyond the normal web
and e-mail to include mobiles, PDAs, interactive TV, applications, social media, which
were earlier not common to marketing online through ‘e’ models. This explosion of plat-
forms and devices has been possible due to rapid growth in mobile technologies and suc-
cessive innovations which have made instruments like smartphones available in the hands
of large audiences with readily accessible information.
(b) Application of marketing to consumer interaction touchpoints that integrate digital data
about customers and their behaviors in a manner which was not extracted and targeted
earlier. This has resulted in a whole new ecosystem of advanced technologies to target
each valued customer customized with messages and promotions specific to their needs
and intent.
(c) Introduction of interactive communication channels like search, display advertising, social
media, etc., which have a strong combination of pull–push marketing rather than the ear-
lier models which were primarily of push marketing nature. (In the next section, we shall
detail the differences between the two types of models—pull/push and how this affects
the way in which digital marketing creates a difference.)
(d) Incorporation of a variety of technological advances in communication, social integration,
machine learning algorithms along-with their application to multiple devices and platforms,
all of which have made it possible for digital to carve itself as an established area of marketing.
The key reasons as to why digital scores over other traditional forms of marketing include:
(a) Audience targeting: Helps to know which audience to target and why, with specific
pre-designed messages suited to their specific problems and needs.
(b) Cost leverage: Digital mediums can be the most cost effective for messaging across a larger
audience, which was the key reason in the first place for marketers to adopt them.
(c) Actionable reporting: The kind of quantitative customer segment data and qualitative
feedback obtained here is far more authentic and actionable.
(d) Location-based messaging: No other type of marketing can develop and target personal-
ized, location-based messages for customers as per their specific interests.
(e) Quicker funnel fulfillment: The covering of marketing funnel from awareness to action
can be fulfilled much quicker after the customer has shown the first intent.
(f) Multi-channel reach: Digital marketing integrates data, communication, and messaging
across multiple platforms, making it the best form of integrated marketing.
(g) Instant customer interaction: With customer interaction and service tightly integrated,
it is the first time that marketers can interact in real-time to understand and support the
problems faced by first-time or their most engaged users.
In the next section, we shall discuss the reasons behind the rise of digital as a prominent mar-
keting tool, its types, and key applications and benefits.

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Chapter 1 • Introduction to Digital Marketing | 19

Emergence of Digital Marketing as a Tool


Why has digital become so important and prominent lately and how does it matter to practi-
tioners of marketing?
To understand and appreciate the rapid rise of digital marketing over its preceding concepts,
it would help to gain an understanding of how the marketing function has changed over the
years in terms of the most important parameter—customer interaction.
We define customer interaction as the manner in which any potential lead or customer gets
to know or interacts with any product or service with the intention of gaining information or to
respond to the marketer’s goal of considering him/her as a consumer and finally convincing the
latter to buy its products. This leads us to a key question as to what does a consumer really look for
from marketing?
Any consumer, in a reactive or proactive mode, is typically looking to obtain information
on any specific area of interest. He/she might not be looking at a product or a service itself but
information which would solve any one of the problems at hand. He might also be just curious
to gain knowledge on any subject (academic or general interest) or might just generally want to
know what is happening currently around his neighborhood, city, or the world at large.
In the traditional form of marketing, the information to be delivered to consumers was
decided, selected, or created by a group of media experts who took the decision of what knowl-
edge would be circulated, printed, or broadcasted (in the relevant examples of newspaper, maga-
zines, radio, and TV), which format it would be shared, and at what price would it be delivered.
The consumer was more of a passive receptor of information and while in certain feedback col-
umns or radio programs he could raise some questions. He was essentially gaining information
and knowledge pre-curated for him and packaged with advertisements and promotions which
he had no control over and maybe not much interested either.
The difference which successive marketing concepts kept bringing about till the present digi-
tal marketing era relate most to the manner in which the power of consumer choice has shifted
from being a tame receptor to an active seeker of information. And, it is in this active seeking of
information process that the heart of digital marketing lies. With this understanding, we would
now put forth the two most important concepts which define and differentiate digital market-
ing—Pull and Push marketing.

Pull and Push Marketing


Any type of customer interaction with any digital media can be most simply be divided into two
types depending upon where the contact is initiated:
(a) Medium-initiated contact (Push marketing): This is the traditional type of marketing
where marketing messages are packaged with information pre-configured for a particular
set of users. Take the example of a newspaper, which typically is current information pack-
aged across different verticals like politics, economics, sports, etc., and packaged along
with large ad columns which bring in the revenue (along with the classifieds). In contrast,
let us understand what pull marketing entails.

M01 Fundamentals of Digital Marketing XXXX 01.indd 19 6/15/2017 10:09:59 AM


20 | Fundamentals of Digital Marketing

(b) Consumer-initiated contact (Pull marketing): Pull marketing involves a consumer plac-
ing his intent and specific interest for a particular type of information and being offered
that information along with relevant marketing messages suited to his intent, query, or
profile-based interests. In the same example of a newspaper, as above, consider that the
company decides to provide information in a way that each article of the newspaper is
tagged and categorized based on multiple criteria to be searched upon a digital platform.
In this case, when a consumer makes a specific search for a piece of content and chooses
matching information/news, promotions are sent based on his profile preferences, real-
time location, and the topic of the article he found interested in reading. This would then
become be an example of pull marketing.
Based on key characteristic of these two types of marketing, the development of new digital
platforms can be explained and understood. Digital marketing includes all those techniques and concepts
that utilize the intent (pull-based) action of the consumer to market products and services (in a push-based
manner) which would be most needed, relevant, and of interest to him/her.
Let us understand a few key types of digital marketing areas to see how digital technologies
have been built around the combinations of pull–push marketing concepts:
(a) Search marketing: Search was one of the most pioneering pull–push marketing con-
cepts which involved providing a technology platform to consumers to help them express
their intent towards finding a particular piece of information and building a push mar-
keting-based business around that search. (We would cover this particular topic and its
technologies in detail in subsequent chapters and sections).
(b) Display advertising: Similar to print advertisements, display advertising was built on pull-
ing data from consumers’ readership interests on any particular website wherein display
ads were pushed next to the content being read for consumers to interact, click, and buy
on landing pages created for this action.
(c) Social media marketing: With the power of social networks coming to internet-based
platforms, a marketer could not only use the information pulled from customer intent but
also from the intent of his social networks which would be marketed back to him in the
form of sponsored and native advertisements.

Media Consumption Drivers for New Marketing Environment


With the understanding of the pull–push concept, one would naturally tend to think about the
key drivers behind this change in marketing to digital platforms and the reasons for shifting
consumption patterns:
(a) Emergence of internet as discussed in the previous sections was one of the biggest factors
of the transition to digital marketing. With growing availability of the internet, it became
possible to access data and information as and when required.
(b) Rise of millennial generation or Generation Y (those born during the 1980s and early
1990s) with their differing attitudes and aspirations and also the rapid rise of social

M01 Fundamentals of Digital Marketing XXXX 01.indd 20 6/15/2017 10:09:59 AM


Another random document with
no related content on Scribd:
and palps; the body-segments are more or less alike, and (except in some
Spioniformia, some of the Terebelliformia, and the Capitelliformia) do not
present two sharply marked regions, owing to the differential arrangement or
character of the chaetae. In the second branch, the Cryptocephala, the
peristomium grows forwards during development, so as to compress or even
hide the prostomium, which thus becomes a very insignificant organ. The
tentacles are reduced, but the palps become greatly developed and take on
sundry new functions. The body in this group, by the character and
arrangement of the chaetae, is distinguishable into a thorax and abdomen,
presenting certain internal differences.

These two branches may be supposed to have arisen from a common


ancestor having a general resemblance to a nereidiform worm, such as Syllis,
possessing palps and tentacles on the prostomium, definite parapodia and
cirri on the body, and internally, a well-marked and regular repetition of
organs.

The branch Phanerocephala contains the following five sub-Orders, though


it is possible that the Capitelliformia deserves a more important position in the
system:—

Sub-Order 1.—The Nereidiformia have well-developed tentacles and palps;


the peristomium almost invariably possesses special cirri; the parapodia are
well-marked locomotor organs, supported by acicula, and carry dorsal and
ventral cirri. The chaetae are usually jointed, though unjointed ones may
coexist with these; uncini are never present. An eversible buccal region leads
into a muscular pharynx, which in the majority is armed with chitinous jaws;
the septa and nephridia are regularly repeated throughout the body. The
worms lead a predaceous life, and are mostly carnivorous; a few form tubes.

Sub-Order 2.—The Spioniformia possess neither tentacles nor palps; the


peristomium usually carries a pair of long tentacular cirri, and extends
forwards at the sides of the prostomium. The parapodia project only to a slight
degree; the dorsal cirri may attain a considerable size, and act as gills
throughout the greater part of the body. The chaetae are unjointed; uncini are
only present in the aberrant Chaetopterus.[364] The body may present two
regions more or less distinctly marked externally, but without corresponding
internal differences. The buccal region may be eversible, but there are no
jaws. Septa and nephridia are regularly developed. The worms are burrowers,
or tubicolous.
Sub-Order 3. Terebelliformia.—The prostomium is a more or less prominent
lobe (upper lip) with or without tentacles but without palps. The peristomium
may carry cirri or "tentacular filaments."[365] The parapodia are feebly
developed; there are no ventral cirri; the dorsal cirri may exist and function as
gills on more or fewer of the anterior segments. The chaetae are unjointed,
and uncini are usually present. The buccal region is not eversible; there are
no jaws. The septa are usually incomplete, with the exception of one strongly-
developed "diaphragm" anteriorly; the nephridia are dimorphic, those of the
anterior (prediaphragmatic) segments are of large size and are excretory; the
posterior series are mere funnels, and act as genital ducts. These worms are
burrowers or tube-formers, and in the majority the tube-forming glands are
grouped on the ventral surface of the anterior segments to form "gland-
shields."

Sub-Order 4.—The Capitelliformia have no prostomial processes, but


possess a pair of large retractile "ciliated organs." The parapodia do not
project; the chaetae are unjointed, and are hair-like in the anterior segments
and hooded "crotchets" posteriorly; this external division of the body does not
correspond with definite internal differences. There are no cirri, though special
"gills," often retractile, are frequently present. The buccal region is eversible;
there is no armed pharynx. An "accessory gut" or "siphon" exists. The
nephridia are small, and sometimes more than one pair in a segment; special
genital funnels exist in more or fewer of the anterior segments of the hind
body. There is no system of blood-vessels; the coelomic corpuscles are red.
The worms are burrowers.

Sub-Order 5.—The Scoleciformia possess a prostomium, which rarely


(Chlorhaemidae) carries any sensory processes; the peristomium is without
cirri (except, perhaps, in the Chlorhaemidae). The parapodia are ill
developed, and may be absent; only rarely are dorsal cirri present, acting as
gills; ventral cirri are absent. The chaetae are unjointed; true uncini are not
present. The buccal region is eversible, but there is no armed pharynx. The
septa are not regularly developed, as more or fewer are absent, and the
nephridia are considerably reduced in number, it may be to a single pair
(Sternaspidae and some Chlorhaemidae), but they are all alike.[366] The
worms are mostly burrowers.

The branch Cryptocephala contains two sub-Orders:—


Sub-Order 1. Sabelliformia.—The prostomium is entirely hidden by the
forward extension of the peristomium; the tentacles are very small, being
frequently represented merely by small knobs of sense-cells; the palps, on
the other hand, are greatly developed, branched, and contain blood-vessels,
acting as respiratory as well as sensory organs. The peristomium never
carries cirri or chaetae, and it is usually raised up into a projecting collar, used
in fashioning the lip of the animal's tube. The parapodia are but feebly
developed; cirri are absent, except in the Serpulidae, where the dorsal and
ventral cirri become united to form the "thoracic membrane" (Meyer). The
chaetae are of two kinds—unjointed, hair-like, fringed bristles and "uncini." By
their arrangement the body is divided into a thorax of nine segments and an
abdomen; in the former the capillary chaetae are dorsal, and in the latter
ventral. The buccal region is not eversible; there is no pharynx. The septa are
regularly developed in the abdomen, but are absent in the thorax; the
nephridia are dimorphic; there are two large ones in the thorax opening by a
median dorsal pore just above the brain; those of the abdomen are small
funnels, and act as genital ducts. The worms are tubicolous; "gland-shields"
are present on the thoracic segments.

Sub-Order 2. Hermelliformia.—The peristomium (Fig. 135) is enormously


developed, and forms a bilobed hood capable of closing over the mouth; the
truncated free end of each lobe carries three semicircles of peculiar chaetae,
which act as an efficient protection when the worm is withdrawn into its tube.
The prostomium is very small, but retains a pair of well-developed tentacles;
the palps, which are subdivided as in the Sabelliformia, have become fused
with the ventral edges of the peristomium, and appear as a series of ridges on
each side, carrying numerous filaments. The thorax consists of five segments,
the notopodia of three of which are well developed and bear strong chaetae;
dorsal cirri are present along the greater part of the body, and act as gills. The
arrangement of the chaetae and of the internal organs is as in the
Sabelliformia. The worms form tubes of sand.

BRANCH A. PHANEROCEPHALA.

Sub-Order 1. Nereidiformia.[367]

Fam. 1. Syllidae.—These are small worms, the majority being less than an
inch long, so that they are not easily observed. The body consists of a fair
number of segments.[368] In many genera a dorsal bundle of unjointed,
natatory chaetae makes its appearance at maturity. The palps, which are
grooved, are in some cases so united with one another and with the
prostomium as to be scarcely recognisable. (For head see p. 262, and for feet
see p. 264.) The pharynx is armed with one or more teeth. There is a special
gizzard, following the pharynx, and provided with thick, muscular walls of
peculiar structure. Following the gizzard, the oesophagus receives in many
genera a pair of T-shaped diverticula, that are used for storing water, which is
swallowed with food. These diverticula are absent in Autolytus and other free-
swimming forms. The reproduction of the members of this family is
interesting, and has already been described (p. 278).

Fig. 160.—Syllis armillaris Müll. × 2. (From Johnston.) The head is towards the
right.

Syllis.—The tentacles and cirri are moniliform; the palps large; there is a
single dorsal tooth, which is provided with a poison gland, the duct of which
opens near its apex; it is used rather for stabbing its prey than for grasping
and tearing. S. krohnii Ehlers, is abundant under stones, and forms tubes of
sand; it is nearly an inch long, and consists of some eighty-five to ninety-five
segments marked with yellow bands. It may readily be identified by longer
dorsal cirri, terminally dilated, alternating with shorter ones. S. cornuta
Rathke, has a translucent green body, about half an inch long; no alternation
of cirri. Mediterranean, Atlantic, on the Norwegian coast, off Spitzbergen, and
on the Madeira coast. S. armillaris Müll. is very common at low water; it is
pale yellowish-brown, with a couple of dusky marks on each segment; and
measures 2 inches. The dorsal cirri are quite short, consisting of only eight to
ten joints. In Pionosyllis the tentacles and cirri are not moniliform; a single
dorsal tooth. P. malmgreni M‘I. under stones. Sphaerosyllis.—The dorsal cirri
are swollen at the base, and are not moniliform; the long palps are fused
along nearly their whole extent. S. hystrix Clap. is only about one-eighth of an
inch in length. Exogone Oerst. Grubea Qfg.

Autolytus.—The small palps are entirely fused with the prostomium; the
pharynx, which is bent upon itself, is armed with a circle of denticles. Dorsal
cirri somewhat foliaceous. There are no ventral cirri. The male and female
differ from one another and from the asexual "stock" (see p. 279). A. pictus
Ehl. is abundant under stones. It measures about two-thirds of an inch in
length, is darkly coloured with a median lighter band; the anterior dorsal cirri
are long. A. prolifer Müll. is common.

Myrianida fasciata Milne Edwards, with its foliaceous cirri, occurs off our
coasts (see Fig. 149, p. 280). Atlantic, Mediterranean.

Fam. 2. Hesionidae.—The body is relatively short, with only a few segments


(sixteen to fifty, according to the genus); in the larger forms it is cylindrical.
The parapodium is usually uniramous; the dorsal cirri are long and
multiarticulate; the chaetae are jointed. The prostomium carries, in addition to
four eyes, two or three tentacles, and generally a pair of jointed palps. The
peristomium and two or more of the following segments are achaetous, and
carry long "peristomial" cirri. The pharynx is very long but unarmed.

Psamathe Johnston, has many segments; head with two tentacles and a pair
of three-jointed palps. P. fusca Jnstn. occurs amongst coralline Algae, to
which it bears some resemblance, which is heightened by the moniliform cirri.
It is a small worm, less than an inch in length. Mediterranean. Castalia
punctata Müll. is dirty green or brownish, with a narrow purplish band on each
side. It occurs in deeper water than the preceding. In Ophiodromus the head
has three tentacles; the palps are two-jointed; there are six pairs of
peristomial cirri; the parapodia are biramous. O. vittatus Sars is dredged in
numbers off the Scotch coast, and is found also at low tides. It measures 2
inches in length. A closely allied species lives in the ambulacral grooves of
the starfish Astropecten.

Fam. 3. Aphroditidae.[369]—The most characteristic feature of this family, and


one by which its members are absolutely distinguished from all other
Chaetopods, is the possession of scales or "elytra" on the back. These
flattened dorsal cirri are of a somewhat horny texture, and are carried,
generally, on alternate segments of the body; filamentous cirri occurring on
the other segments. In the sub-families Hermionina and Polynoina the
elytriferous segments are 2, 4, 5, 7, 9, etc., up to 23; then every third
segment. The worms are usually short, with some thirty-five to forty-five
segments, though Sthenelais and a few others have many more. (For head
see p. 262, and for parapodium see pp. 265, 268.) The pharynx is very thick
walled, and furnished with two pairs of jaws, which are, however, not
hardened in the sub-family Hermionina. The intestine is provided with a
number of paired longer or shorter caeca (Fig. 142). A considerable number
of this family are commensal or parasitic (see p. 297). The family is well
represented on our own coasts, so that only a few of the more readily
distinguishable species can be here described.

Fig. 161.—Polynoë squamata L. Nat. size. c, Notopodial cirrus; e, elytron; f,


parapodium; p, palp; t, tentacle. (From Johnston.)

Sub-Fam. 1. Polynoina.—Body flattened, with nearly parallel sides, usually


short, more rarely worm-like; three tentacles; peristomium with long dorsal
and ventral cirri; the ventral cirri of the next segment are also elongated. Jaws
are present. Elytra, usually twelve to eighteen pairs, the surface of which is
more or less papillose, and may be "fringed" along the outer border, with long
processes. The colouring of the elytra is characteristic in most cases, though
liable to considerable variation in some species. The chaetae are generally
strong, and of bright golden colour: they are all unjointed. The Polynoina are
generally but feeble swimmers, and are mostly found under stones at low
tide. Some species have a very wide geographical range.

Polynoë.[370]—The body is short; none or only a few segments at the end of


the body are uncovered by the elytra, except in the long body of P. johnstoni.

A. With twelve pairs of elytra.—In P. squamata Linn. the elytra entirely cover
the body and conceal the head, each elytron overlapping the next posterior
one, and those of the two sides overlapping. General colour sandy-brown,
speckled, lighter or darker. The fringed elytra are very firmly fixed to the body.
The notopodial chaetae scarcely project from below the elytra. The worm is
common between tide-marks and in the coralline region, is about one to one
and a half inches in length, and about one-third of an inch in width. Atlantic. P.
clava Montagu, may attain a larger size, though it is generally smaller. The
elytra are dark, usually grey, mottled with white or light grey, unfringed, and do
not overlap to so great an extent as in P. squamata, so that the middle of the
back and the hinder part of the body is more or less exposed. This is never
the case in the preceding species, but even here it is subject to variation in
extent, depending on the amount of food contained by the worm or on the
ripeness of the genital products. It occurs in the Mediterranean.[371]

Fig. 162.—Elytra, A, of Polynoë squamata L.; B, of P. clava Mont. × 10. a, Area


of attachment; e, external margin; f, fringe (the letter is at the posterior side
of the elytron); i, internal margin. (From Bourne.)

B. With fifteen pairs of elytra.—P. imbricata L. is probably the commonest


species of the genus, occurring nearly everywhere under stones at low tide. It
is about an inch in length; the elytra are deciduous, and are very variously
coloured and marked; sometimes uniformly grey or even black, sometimes
mottled with brown: in other specimens each elytron has its outer half pale or
white, while its inner half is darker, usually some tint of brown or olive green,
so that the worm appears to have a dark band along the middle of its back.
Other patterns occur. The body is entirely covered by the elytra. The chaetae
project considerably, and are nearly as long as half the width of the body;
those of the notopodium are brown and are directed upwards, being nearly as
long as the golden neuropodial chaetae. This species has a very wide range,
occurring on both sides of the Atlantic, even on the shores of Nova Zembla,
and reappearing again at Japan. P. semisculptus Leach is rather larger than
the foregoing. The elytra are very readily detached: they are light in colour,
without a fringe, but with large papillae near the margin. The notopodial
chaetae are thicker than those of the neuropodium. Several other species are
also common, but P. johnstoni v. Marenz.[372] differs from the rest in having
an elongated body of some seventy segments, so that the posterior half is
uncovered by the elytra, which are small, greenish-grey, speckled, and have
no fringe. It is common and widely distributed, but appears to be only found in
the tubes of Terebella nebulosa.

Fig. 163.—Elytron of Polynoë imbricata. a, Area of attachment to body; e, outer


border; i, inner border.
C. With eighteen pairs of elytra.—P. gelatinosa Sars, may attain a length of 2
inches. The elytra are very faintly coloured, transparent and soft, attached by
rather long peduncles. In spirit they become swollen and folded, giving the
worm a very untidy appearance. The prostomium is partly overlapped by a
peculiar collar-like fold of the peristomium.

D. With numerous pairs of elytra.—Lepidasthenia has a very long body,


consisting of more than eighty segments. The elytra are quite small, and
occur throughout the body on the usual segments. There are no notopodial
chaetae. L. elegans Gr. is a very elegantly marked worm, which, however,
has not been recorded from the British area; it occurs in the Mediterranean
(see Fig. 156, p. 293).

Sub-Fam. 2. Hermionina.—The body is short, oval and depressed; the


particularly strong notopodial chaetae are directed upwards and backwards
so as to protect the elytra. The neuropodial chaetae are also strong. The
prostomium carries a single tentacle and two long palps; the prostomial ridge
may be well developed. The peristomium is chaetigerous, with long cirri. The
jaws are represented merely by thickened prominences.

Fig. 164.—Aphrodite aculeata L. (from Règne Animal). Nat. size. c, Neuropodial


chaetae; p, palps; 1, iridescent bristles; 2, stiff chaetae; 3, felting bristles of
notopodium.

Aphrodite.—The fifteen pairs of elytra, arranged as in Polynoë, are concealed


by a "felting" of hair-like chitinous threads arising from the notopodium (Fig.
139, p. 268). A. aculeata L.—The "sea-mouse" is one of the most beautiful of
the Polychaetes. The small tentacle is very readily detached; the palps are
very long; the parapodia of the peristomium are directed forwards so as to
form lateral lips; and its cirri are not especially modified (see Fig. 132, p. 260).
The body, which measures 3 to 6 inches, consists of thirty-five to forty
segments, and is broadest in the middle, the last dozen segments being very
small; the body terminates in a point. Some of the notopodial chaetae are
brilliantly iridescent, and give the worm its characteristic coloration. It is fairly
common in the coralline regions, and is frequently thrown ashore after storms.
Atlantic and Mediterranean.

In Hermione the "felt" is absent, so that the elytra are exposed. H. hystrix Sav.
occurs in ten to thirty fathoms of water all over the British area and
Mediterranean. It resembles in its general appearance a fat Polynoid, with
strong chaetae. Laetmonice filicornis Kinb. also occurs on our north-west
coasts, and L. producta Gr. has been dredged in 500 fathoms off the west
coast of Ireland; it has been recorded also from Kerguelen and from Japan,
so that it has a very wide distribution.[373]

Sub-Fam. 3. Acoetina.[374]—The long, vermiform body has some thirty-nine


to ninety-three pairs of elytra, placed on every alternate segment throughout.
It is represented in the British area by Panthalis from 75 fms., which forms a
tube of black mud.

Sub-Fam. 4. Sigalionina.—This sub-family includes forms with a long,


vermiform body; anteriorly the elytra are on alternate segments, up to the
twenty-sixth, and posteriorly on every succeeding segment; "gills" here
coexist with elytra; cirri are absent. The prostomium in Sthenelais Kinb. has a
median tentacle, which is absent in Sigalion Aud. and Edw. Sth. boa Jnstn. is
common off our coasts near low-water mark, where it burrows in the loose
sand with rapidity. It is an elegant worm, and may attain a length of 8 inches,
though it is generally smaller; it is narrow, flat, and only slightly tapering at
each end; the elytra, which may be more than a hundred pairs, are greyish or
slightly brownish, some being lighter than others; the margin is fringed with
simple processes (which in Sigalion are pinnate). Atlantic and Mediterranean.
In Psammolyce the elytra are covered with sand grains. British and
Mediterranean.

Fam. 4. Phyllodocidae.—The members of this family make use of the


foliaceous cirri (Fig. 136, F) in their very active movements. The rounded
prostomium bears four or five tentacles; there are four long peristomial cirri on
each side (see Fig. 134, E).
Sub-Fam. 1. Phyllodocina.—The body is elongated, with numerous
segments; the eyes are small; the chaetae are jointed; the dorsal and ventral
cirri are foliaceous; the pharynx is covered with papillae externally, but
contains no "jaws."

Phyllodoce has a more or less depressed body; four prostomial tentacles;


four pairs of peristomial cirri. P. lamelligera Jnstn.[375] (the "paddle-worm")
may reach a length of 24 inches, but is usually 8 to 12 inches long and ½ inch
across. The general colour is bright bluish-green or yellowish-green, with
metallic iridescence; the parapodia olive-green or brown, the sensory
processes yellow. It lurks, during day, under stones and shells, etc., in the
Laminarian zone. The green egg masses, so frequently referred to as
belonging to Arenicola, are laid by Phyllodocids.[376]

Fig. 165.—Phyllodoce paretti Blv. × ½. (From Règne Animal.)

In Eulalia an additional (fifth) tentacle arises from the middle of the back of the
prostomium. E. viridis Müll. is a dark green worm smaller than the preceding;
common between tide-marks, hiding in cavities and tunnels in limestone
rocks, which have been bored by the mollusc Saxicava; it is rare where such
rocks are absent. It might have been thought that its vivid colour would
harmonise with its surroundings, but it is most abundant in regions where
Fucus abounds and Ulva is absent. It is evident then that the colour is not
protective; it may perhaps be of warning significance, for the mucus secreted
in quantities by glands on the cirri of the Phyllodocids is probably
objectionable to their enemies. Phalacrophorus Grf. and Pontodora Grf. may
be mentioned as pelagic genera.

Sub-Fam. 2. Lopadorhynchina.—This includes small forms, Lopadorhynchus


Gr., Pelagobia Grf., and other pelagic genera.
Fig. 166.—Nauphanta celox R. Grf. × 4. (From Greef.) e, The large eye.

Sub-Fam. 3. Alciopina.—These are surface forms, and, like most pelagic


animals, are colourless and transparent; the eyes, however, are very large,
and, with certain brown spots in each segment,[377] are the only coloured
parts in the body; in structure the eyes are much more complicated than
those of other Polychaetes. The prostomium has five tentacles; there are long
peristomial cirri, and in general their anatomy agrees most closely with that of
Phyllodocids. Alciope, Asterope, Vanadis, Nauphanta are genera of the
family;[378] none have been recorded from the British area.

Fam. 5. Tomopteridae.[379]—This includes but one genus, Tomopteris, which


is pelagic. The transparent, colourless body consists of only a few (eighteen
to twenty) segments; the parapodia are as long as the body is wide, and carry
no chaetae; each is bilobed, and fringed with a membrane; each of these
lobes contains a yellow rosette-shaped photogenic organ. The only chaetae
present in the worm are on the "head." The prostomium is hammer-shaped,
and appears to carry a pair of short filaments ventrally (Fig. 167, x) each with
a single chaeta within it; and a longer filament laterally (y), supported by a
long, very delicate chaeta. The mouth is behind these, and they probably are
the first pair of parapodia which have shifted forwards. T. onisciformis
Eschscholtz is not unfrequently obtained off our shores in the tow-net.
Fig. 167.—Tomopteris rolasi Grf. × 10. From Guinea Isles. pr, Hammer-shaped
prostomium; x, first chaetigerous process; y, second chaetigerous
process; c, rosette (photogenic) organ on first two parapodia; b, similar
organ in the lobes of the following parapodia; d, pigment spots; f,
parapodium. (From Greef.)

Fam. 6. Nereidae (Lycoridae).—This family contains a very large number of


species, differing from one another in small and not readily recognisable
characters, such as the relative lengths of the various processes of the head,
of the lobes of the feet, the arrangement of the "paragnaths" (see Fig. 125, d)
and so forth. The general features of the family have been already described.
The genus Nereis is represented by six fairly common species on our coast,
which are almost world-wide in distribution.

N. diversicolor Müll. is about 3 to 4 inches in length, of a general fleshy-red


colour, though tending in some cases to yellowish-brown or even greenish. It
may be distinguished by two diverging brown bands, which start on the
peristomium and pass backward one along each side of the body for several
segments. The prostomium is broader than it is long. The worm burrows in
mud or sand, all round our coast between tide-marks. It has a very wide
distribution, being met with on this side of the Atlantic, and off the coast of
Greenland, and off Japan. It is even found in brackish water at Bembridge,
Isle of Wight.

N. cultrifera Gr. is green or greenish-grey, with a series of small rectangular


light spots along the mid-dorsal surface, and oblique light lines at the sides of
each segment. Posteriorly the greenish pigment becomes less and less till the
hinder segments are flesh-coloured. The prostomium is as long as it is broad.
This species attains a length of 6 inches. Southern coasts: locally known as
"Red Cat."

N. dumerilii Aud. and Edw. is rather smaller and narrower than the two
preceding species; it is reddish-violet in colour, marked with darker transverse
lines in each segment. It is readily recognised by the two dark brown spots on
the upper surface of the base of the notopodium in most of the segments, and
by the great length of the peristomial cirri, the longest of which reaches the
fifteenth segment. It is sometimes found enclosed in a cocoon-like tube of
hardened grey mucus, more or less covered with foreign particles, such as
sand grains. Atlantic, Mediterranean, Japan.
Fig. 168.—Nereis cultrifera Gr. × 6. Head with buccal region everted, to show
the arrangement of the jaws. (From Ehlers.) Cf. N. diversicolor, Fig. 125, p.
248.

N. pelagica L. is red-brown or bronze in colour, and is generally larger than


the other species, from which it is distinguished by being widest about the
middle of the body (see Fig. 122, p. 246); whilst in the preceding species the
greatest breadth occurs at the segments immediately following the head.
Further, the palps are long, the peristomium is twice as long as the next
segment, and the back of the worm is strongly arched. At all depths on rocky
and stony ground. Northern coasts.

N. (Nereilepas) fucata Sav. lives in the topmost whorls of empty whelk shells
and in those occupied by hermit crabs. The ground colour is tile-red, with two
milk-white bands along the dorsal surface. The dorsal lobe of the foot is
slightly foliaceous, glandular, and vascular.

N. (Alitta) virens Sars. is a giant amongst Polychaetes, reaching a length of


18 inches. Its name suggests its colour; it is very plentiful at certain times at
St. Andrews, and between tide-marks along the shore of the Mersey estuary,
as well as elsewhere. It forms a burrow in the clay, etc., of the shore, and
lines it with mucus, which is abundantly secreted by the great foliaceous
lobes of the parapodia. These great leaf-like lobes of the foot recall the
modification which the foot of many species of Nereis undergoes in
transformation into Heteronereis: they are so greatly developed that, at first
sight, the worm might be mistaken for a large Phyllodoce. The worm is known
as the "Creeper," and is much esteemed as bait on some parts of our coast.

Fig. 169.—Parapodium of N. virens Sars. ×4. a, Notopodial cirrus; b,


notopodium; c, neuropodium; d, neuropodial cirrus; l, foliaceous
appendage. (From Ehlers.)
Fam. 7. Nephthydidae.—The elongated body is quadrangular in section, the
dorsal and ventral surfaces being almost flat. (For head see p. 262, and for
parapodium, p. 264.) The two lobes of the parapodium are widely separated,
and each is fringed with a membrane, while a sickle-shaped "gill" hangs down
from the under surface of the notopodium. The pharynx is enormous. Of the
genus Nephthys two species, called the "Lurg" or "White Cat" by fishermen,
occur on our coasts. Their active movements and beautiful mother-of-pearl
tint are characteristic. N. hombergii Aud. and Edw. occurs on the shore, and
down to 20 fathoms; it is 3 or 4 inches long, and may be found burrowing in
the sand; the chaetae exceed in length those of N. caeca Fabricius, which
occurs less frequently and in deeper water, and is larger than the preceding.
Both are Atlantic forms.

Fam. 8. Amphinomidae.—The body in this family is either vermiform, as in


Eurythoe, or oval and flattened, as in Euphrosyne and Spinther. The head
carries a peculiar sense organ, the "caruncle," consisting of a smooth axis
with the sides folded so as to look like a number of lamellae. The parapodia
carry gills. Most of the Amphinomids are tropical and Southern forms.

Eurythoe borealis Oerst. measuring 6 inches, occurs all round the British
area, from the Shetlands, where it occurs in deep water, to the Channel Isles,
where it lives on shore, under stones, etc. (For parapodium of Amphinome
see p. 264.)

Euphrosyne.—The body is short, oval, and flattened. The parapodia are not
distinct processes, but the chaetae extend from each side of each segment
nearly to the middle dorsal line, and are absent ventrally (Fig. 137, C, p. 265).
The dorsal and ventral cirri are more or less filiform, and there is an
intermediate similar process on the back (? = lip of chaetigerous sac).
Amongst the chaetae are a number of curious branched processes—usually
called "gills."[380] The presence of these and of the chaetae give the upper
surface of the body a fluffy appearance. E. foliosa Aud. and Edw. is fairly
common under stones on our southern shores. It is about an inch in length
and is of a cinnamon-red colour.

Fam. 9. Eunicidae.—The elongated body is provided with parapodial gills in


more or fewer segments (except in Lumbriconereis). The "gills" may be
cirriform (Hyalinoecia), pectinate (Eunice, Onuphis), or more complex
(Diopatra). The notopodium is represented by a lobe (usually called "cirrus")
into which an aciculum projects; in some cases it even contains a few
chaetae; most of the neuropodial chaetae are jointed (Fig. 138, F). The
prostomial tentacles vary in number; they may be three or five, or five and two
short "frontal palps," or they may be absent. Peristomial cirri are absent,
though in Eunice, Diopatra, and Onuphis "nuchal cirri" are present on the
dorsal surface of the second segment (Fig. 134, D). One of the most
characteristic features in the anatomy of the Eunicids is the peculiar jaw
apparatus (see p. 270). The majority of the genera form permanent tubes of
parchment-like consistency, which may be further strengthened by the
addition of grains of sand, small pebbles, etc.; the tubes may be branched.

Eunice has five tentacles, two great palps, and a pair of nuchal cirri; the gills
are pectinate, and there are four anal cirri. E. harassii Aud. and Edw. is about
8 inches long. It is reddish-brown, with white spots down the back, one to
each segment, and others at the sides. The gills begin at the sixth segment,
and when fully developed have eleven branches. The dorsal cirrus is not
longer than the gill. E. philocorallia Buch.[381] forms its tube amongst the
branches of Lophohelia prolifera, in 200 fathoms, off the west coast of Ireland.

Marphysa resembles Eunice, but has no nuchal cirri. M. sanguinea Mont. is a


fine bronze colour, with bright red gills, which commence on the twentieth
segment, and have only four or five branches. The worm, which measures 12
to 18 inches, and is as thick as one's finger, hides in clefts in rocks and under
stones below low water. Mediterranean. It is known as "Rockworm" in the
Channel Islands.

Hyalinoecia Mgrn., in addition to the five prostomial tentacles and palps,


possesses a pair of small "frontal palps" arising from the anterior border of the
prostomium; there are no nuchal cirri, and the gills are simple filiform
processes. H. tubicola Müll., about 3 inches long, is yellowish-brown, and
forms a transparent, parchment-like tube. Atlantic and Mediterranean.
Fig. 170.—Ophryotrocha puerilis Clap., Metsch. × 25. ci, Bands of cilia; cp,
ciliated pit (nuchal organ); J, jaws. (From Korschelt.)

Onuphis Oerst. has a head like the preceding, from which it differs in having
pectinated gills and two nuchal cirri like Eunice. In making its tube it employs
small pebbles, bits of shell, and even echinid spines, which it glues together
with mucus, so that it bears a general resemblance to its surroundings. O.
conchylega Sars, has a flattened, scabbard-like tube, which can be carried
about by its owner. Atlantic.

Lumbriconereis has a more or less conical prostomium, without any tentacles,


but with large palps: segments without gills. L. fragilis Müll. is reddish or
brownish, with a beautiful iridescence; it is cylindrical, very narrow, and some
5 or 6 inches long; L. tricolor Jnstn. is much larger.

Ophryotrocha (Fig. 170) is a small form often occurring in aquaria; it is chiefly


remarkable for the possession of segmentally-arranged girdles of cilia—a
permanent larval feature. Lysidice ninetta Aud. and Edw. belongs here.

Fam. 10. Glyceridae.—Elongated worms with numerous segments. The


prostomium, though narrow, is long, conical, annulated, and carries at its
apex four very small tentacles; at its base a pair of palps. Special retractile
gills are present. The armed pharynx is very long, and when protruded
appears wider than the animal. The members of this family are without any
system of blood-vessels, but the coelomic corpuscles are coloured red.
Glycera has four jaws, the parapodia are all alike (Fig. 136, C). G. capitata
Oerst. is 2 or 3 inches in length, is yellowish in colour, with a dark-red median
line. It may be found burrowing in sand. The setigerous lobes of each foot are
coalesced to form one large lobe with pointed apex. The dorsal cirrus is a
small wart above the base of the foot. Atlantic and Mediterranean. A second
species, which is much larger and flesh-coloured, also occurs.

Fig. 171.—Glycera meckelii Aud. and Edw. with pharynx everted, × 1. (Règne
Animal.)

Goniada is distinguished from the preceding by the fact that the parapodia
suddenly change in size and character at about one-third the length of the
body. The pharynx has numerous paragnaths. G. maculata Oerst. occurs off
our coasts.

Fam. 11. Sphaerodoridae.—The dorsal and ventral cirri of each segment are
spherical. The chaetae are usually jointed, and there is an aciculum to each
parapodium. Ephesia Rthke. (E. gracilis R. = Sphaerodorum peripatus Jnstn.)
is exceptional in having unjointed chaetae. North Sea, Arctic Ocean, and the
Channel. The family, which is much modified, is allied in some respects to the
Syllidae.

Fam. 12. Ariciidae.—These worms burrow in sand between tide-marks. The


body consists of many short segments, and is nearly cylindrical. The
prostomium is more or less pointed; the chaetae are all capillary; in the first
few segments they project laterally but soon come to lie dorsally, and are
carried by slight conical papillae (supported by acicula), which are longer in
the middle of the body. Most of the segments carry filiform "gills," representing
the dorsal cirri (Fig. 137, B).
Scoloplos armiger Müll. is extremely common on our coast. It is about an inch
long, yellowish, with red gills, commencing about the twelfth segment. Each of
the lobes of the parapodium possesses an aciculum, and the chaetae are
bent in a peculiar way. The everted buccal region has the form of a six- or
eight-rayed star. The spawn of this species may be found on the shore in
spring as brown, pear-shaped, jelly-like masses, each with a long stalk, by
which the mass is fixed to the sand. In the jelly are the eggs, which may be
watched passing through the earlier stages of development. Atlantic on both
shores, even off Spitzbergen, and Nova Zembla. Another representative is
Theodisca mamillata Clap., which occurs amongst the roots of Laminaria.

Fam. 13. Typhloscolecidae.[382]—Pelagic, greatly modified forms, apparently


related to the Phyllodocidae, but with very uncertain affinities. The
prostomium is pointed and carries a pair of foliaceous tentacles; each of the
first two segments bears a pair of foliaceous cirri; the remaining segments
possess a dorsal and a ventral pair of foliaceous cirri, with a small bunch of
chaetae and a single aciculum. All the cirri have peculiar rod-cells.
Typhloscolex Busch, Sagitella Wagner, and Travisiopsis Uljanin: all small
worms. North Sea Atlantic.

Sub-Order 2. Spioniformia.

Fam. 1. Spionidae.—Mostly small worms, with small ridge-like prostomium


carrying a pair of eyes, but no tentacles or palps. The peristomium, which
extends forwards on each side of the prostomium, bears a pair of very long
cirri (usually termed "tentacles") normally directed backwards, very mobile,
and more or less coiled. They are readily thrown off by the animal. The
notopodial cirri are long, finger-shaped, and curved over the back; they are
vascular and ciliated, and function as "gills." The neuropodia project laterally.
Both are usually provided with a "podal membrane" along their outer margin.
There are no ventral cirri; the dorsal chaetae are fringed capillaries; the
ventral are "crotchets." The buccal region is eversible. The worms burrow in
mud and sand.

Spio seticornis Fabr. is a small worm less than an inch in length, colourless
except for the red blood in its vessels. It builds long and flexible tubes of sand
in the clefts of rocks and under stones in the upper part of the littoral zone.
The prostomium is notched at the anterior margin. The gills commence on the
twelfth segment, and do not extend to the end of the body. A membrane-like
cirrus exists also on the second chaetigerous segment. The podal membrane
is adnate to the gill throughout its extent. Four short anal cirri occur.
Greenland and Scandinavia.

Fig. 172.—Nerine vulgaris Jnstn., enlarged. (From Cunningham.) a,


Prostomium; c1, cirrus of peristomium; c2, "gill"; l, lobes; m, podal
membrane; I, peristomium; II, III, IV, following segments.

Nerine is represented by two species, sometimes called "Ragworms." The


genus is very similar to Spio, but the worms are of larger size. The
prostomium is compressed by the forward growth of the peristomium, and
appears as a ridge on the latter segment, extending downwards in front
towards the mouth. The "gills" commence on the second segment, and are
continued in every segment except the hindmost. Nerine (Scolecolepis)
vulgaris Jnstn. is readily distinguished from other species by its somewhat T-
shaped prostomium. It is an extremely common worm under stones and
amongst seaweed at low water. It is some 3 or 4 inches in length and more
slender than the following species. Its colour is yellowish-brown, and the red
gills directed upwards and backwards give the appearance of oblique red
lines. The podal membrane does not reach the tip of the gill. North Atlantic. It
is said to ascend rivers and live in brackish water. N. coniocephala Jnstn. is
much the same colour, but reaches a length of 8 inches, and a diameter of ¼
inch. The prostomium is conical. The podal membrane reaches to the tip of
the gill in the anterior segments. The worm burrows rather more deeply and
nearer low-water mark than the preceding species.

Fam. 2. Polydoridae.—Polydora Bosc (= Leucodore Jnstn.) is readily


distinguished from the other Spionids, and, indeed, from any other Polychaet
(except Chaetopterus), by possessing specially strong chaetae in the
enlarged fifth chaetigerous segment. The anterior segments differ from the
rest in the absence of gills and in the character of the chaetae (Fig. 133, A, p.
261).

P. ciliata Jnstn. inhabits soft mud tubes near low water; it also makes U-
shaped galleries in stones and shells, and the tube projects from each mouth.
The worm is about ½ inch long, consists of some forty segments, and is
yellowish or flesh-coloured. The prostomium resembles that of Spio; the
peristomium is raised into a slight collar at each side. The anus is surrounded
by an incomplete funnel. The species has almost a world-wide distribution,
having been recorded from Iceland, Australia, the Philippine Islands, as well
as from the European seas. P. coeca Oerst. often lives commensally with a
sponge, having a protective odour.

Fam. 3. Chaetopteridae.—The family is represented on our coasts by


Chaetopterus variopedatus Ren.,[383] which is found at the Channel Islands,
the Scilly Isles, the Isle of Man, and the west Scottish coast, and probably at
various other places, at low water and down to a depth of some 15 fathoms. It
occurs in all European seas. The animal builds a long tube, the basis of which
is a tough, parchment-like substance; this is coated externally with sand,
small pebbles, and other débris: it is of considerable length and about ¾ inch
in diameter, is U-shaped and open at both ends, the greater part of it being
embedded in sand or in crevices of rocks. The animal, whose body-wall is
thin and delicate, never leaves its tube. The body has a bizarre appearance;
three regions are readily distinguishable, which may be denoted by the letters
A, B, and C. The most anterior region, A, is flattened, and carries nine pairs of
conical lobes with delicate chaetae, though the fourth lobe possesses special
stouter chaetae (as in Polydora). The anterior end of the body terminates in a
wide funnel, the boundary of which is formed chiefly by the peristomium; on
its dorsal surface is a pair of tentacle-like processes (peristomial cirri); the
region between which represents the prostomium.

Fig. 173.—Chaetopterus. (From Panceri.) Natural size of a young specimen. A


is the anterior region of the body; B, the middle region; C, the hinder
region. c, Peristomial cirri; d, "sucker"; e, the great "wings"; f, the first of
the three "fans"; m, mouth.

The second region, B, is very curiously modified; it is formed of five


segments. The most anterior is produced on either side into a great wing-like
process, which in life is directed forwards above the region A. Each is
grooved on its inner side, the ciliated grooves being continuous with a median

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