Amity Business School

Introduction to Digital Marketing

Module 1
 Amity Business School

• What is digital marketing?

• How is it different from traditional marketing, ROI between Digital
and traditional marketing?
• New trends and current scenario, Digital marketing a boon or a
Bane?
• How can digital marketing be a tool of success for companies?
• Study and Analysis of recent infographics released by companies
about digital marketing?
• How did digital marketing help the small companies and top
Organisations.
• Categorization of digital marketing for the business, Swot analysis
of business, present website and media or promotion plan,
Inbound vs Outbound Marketing
 Amity Business School

Marketing

Companies create value for customers and build strong

customer relationships to capture value from customers in
return.

Kotler & Armstrong (2010)

Digital Marketing

Marketing using electronic media such as the web, e- mail,

interactive TV, IPTV and wireless media in conjunction with
digital data about customers characteristics & behaviors.
Chaffey, Chadwick, Mayer, Johnson (2009)
 Amity Business School
Objectives of digital marketing
• An improved conversion rate
• Greater brand awareness
• An increase in visits to your website
• A greater market share
• Increase sale
• Decrease bounce rate
• Your digital marketing objectives should be SMART
(Specific, Measurable, Achievable, Relevant and Time
Related);
• Enabling your company, no matter its size, to compete
internationally
 Amity Business School

• A suite of media platforms to spread the message about your

products, services and brands.
• More opportunities to educate customers about your
business and products.
• Providing a vital platform for ongoing engagement with your
customers.
• Obtaining timely feedback from your current and potential
customers.
• Scaling up your business by facilitating growth and
expansion.
• Generating faster revenues.
• Precise measurement of your marketing campaigns
 Digital Plan Amity Business School

Your plan needs to look at the whole

customer journey:
• awareness - how a customer will become
aware of your brand
• acquisition - why they will then want to
visit your website
• conversion - how easily will they be able
to make a purchase or register once on
your site.
 Digital strategy
Amity Business School

Reach Engage convert Nurture

• Growth strategy
• Web presence
• Digital advertising
• Creative support
• Offline marketing
• Conversion, tracking and optimization
 Amity Business School

Channels of Digital marketing

• Search engine optimization, search engine optimization
• Content marketing
• blogs
• Influencer marketing
• E-commerce
• Online advertising or display marketing
• Web pr
• Social media management
• Email marketing
• Web analytics
• Mobile marketing
Amity Business School
Amity Business School
Amity Business School
Amity Business School
Amity Business School
 Amity Business School

Paid Media
•  Paid or bought media are media where
there is investment to pay for visitors,
reach or conversions through search,
display ad networks or affiliate marketing.
Offline traditional media like print and TV
advertising and direct mail remain
important accounting for the majority of
paid media spend.
 Amity Business School

Earned media
• Traditionally, earned media has been the name given to
publicity generated through PR invested in targeting
influencers to increase awareness about a brand. Of
course, it’s still an investment.
• Earned media also includes word-of-mouth that can be
stimulated through viral and social media marketing and
includes conversations in social networks, blogs and
other communities.
• It’s useful to think of earned media as developed through
different types of partners such as publishers, bloggers
and other influencers including customer advocates..
 Amity Business School

Owned media

• This is media owned by the brand. Online

this includes a company’s own websites,
blogs, mobile apps or their social presence
on Facebook, Linked In or Twitter. Offline
owned media may include brochures or
retails stores.
Amity Business School
Amity Business School
Amity Business School
Amity Business School
Amity Business School
Amity Business School
Amity Business School
Amity Business School
Amity Business School
 Amity Business School

The Seven-Stage Cycle of Digital Marketing

Step 2 Step 3
Formulating the Designing
Marketing Strategy the
Customer
Experience
Step 1
Framing the
Market
Opportunity

Step 4
Crafting the
Customer
Step 7
Interface
Evaluating
the
Marketing
Program Step 6 Step 5
Leveraging Designing the
Customer Marketing
Information Program
Through
Technology
 Amity Business School

Framework for Market Opportunity

Seed
SeedOpportunity
Opportunity in
inExisting
Existing New
New Value
Value System
System

Identify
Identify Unmet
Unmetand
andUnderserved
UnderservedNeed(s)
Need(s)

Identify
Identify Target
TargetSegment(s)
Segment(s)

Declare
Declare Company’s
Company’sResource-Based
Resource-Based
Opportunity
Opportunity forAdvantage
for Advantage

Assess
Assess Competitive,
Competitive, Technological,
Technological, and
and Financial
Financial
Opportunity Attractiveness
Opportunity Attractiveness

Make
Make“Go
“Go//No-Go”
No-Go”Assessment
Assessment
 Amity Business School

The Online Consumer

The digital ecosystem Amity Business School
 Amity Business School

Top Reasons for Digital Marketing include-

• Brand Building and Differentiation
• Consumer Communication
• Understanding consumer satisfaction with product
• Shop-ability or improving the ability of the shopper to find and
select products
• Gathering product or service innovation insights
• B2C sales relationships (brand to consumer)
• Services associated with products to drive differentiation.
 Amity Business School

Marketing in a virtual world

 Amity Business School

The Potential of Digital Marketing

 Amity Business School

Web Characteristics
and
Cultural Implications
Amity Business School
 Amity Business School

The Dynamics of the Online Consumer Visit

• At each visit on an online page, a consumer has the

chance to either continue the visit or exit. The
average web visit is less than three page views, as it
is totally dependent on the choice of a typical online
visitor. The website subsequently has a short time to
• Communicate with the visitors
• To deliver a message
• To build a brand image
• To engage in commerce
• To persuade visitors
 Amity Business School

Models explaining short visit length

 Amity Business School

Task Directed vs Experiential Online Behavior

Amity Business School
 Amity Business School

Types of Online Behavior

 Amity Business School

Online Decision Making

 Amity Business School

Database Marketing
 Amity Business School

Online Consumers
 Amity Business School

The Analytical Toolkit

 Amity Business School

Thankyou
 Amity Business School

Framework for Market Opportunity

Online Car sale & purchase Example
 Amity Business School

Leverage
Leverage the
the Internet
Internet to
to Improve
Improve the
the Consumer
Consumer • CarPoint identified an opportunity to leverage
Car-Buying
Car-Buying Process
Process the Internet to deliver customer value in the
car industry
• The retail car-buying process was frustrating
Car
Car Buyers
Buyers Are
Are Dissatisfied
Dissatisfied With
With Current
Current Retail
Retail and inefficient:
Car-Buying
Car-Buying Process
Process • Little information available to the consumer
• Bargaining with salesperson viewed as an
hassle
Shoppers
Shoppers Who
Who Feel
Feel Intimidated
Intimidated by
by Sales
Sales People
People
• Long process overall
and Look for More Efficient Way
and Look for More Efficient Way • CarPoint selected two primary target
segments for its service:
• “The intimidated by the process”
• “The information seekers”
Microsoft’s
Microsoft’s Software
Software and
and Free
Free Placement
Placement on
on All
All
Its Websites
Its Websites • CarPoint could leverage Microsoft’s
expertise in software development, its
brand name and its multitude of online
How properties
How Big
Big Is
Is the
the Online
Online Car-Buying
Car-Buying Market?
Market? Who
Who • Competition was getting fierce with more
Are CarPoint’s Main Competitors?
Are CarPoint’s Main Competitors? and more online car services entering the
market…
• But the financial opportunity was large:
66% of new car buyers were estimated to
Make
Make “Go
“Go // No-Go”
No-Go” Assessment
Assessment
use online services in 2000
 Amity Business School

Corporate, Business-Unit and Marketing Strategy

Linkages Example

Corporate
Corporate Strategy
Strategy Amazon
Amazon

Business
Business Unit
Unit Strategy
Strategy Consumer
Consumer durable
durable

Integrated
Integrated Marketing
Marketing Integrated
Integrated Marketing
Marketing
Strategy
Strategy for
for Unit
Unit Strategy
Strategy for
for the
the Unit
Unit

Internet
Internet Traditional
Traditional Online
Online Offline
Offline
Marketing
Marketing Marketing
Marketing Marketing
Marketing Mix
Mix Marketing
Marketing Mix
Mix
 Amity Business School

The Four Key Stages of Customer Relationship

Four Key Stages of Customer Relationship

Exploration
Exploration //
Awareness
Awareness Commitment
Commitment Dissolution
Dissolution
Expansion
Expansion
 Amity Business School

Four Key Stages of Customer Relationship by Level

Intensity of Intensity
Level of

Intensity

Awareness Exploration Commitment Dissolution

Stages of Customer Relationships

 Internet Marketing Mix Amity Business School

Branding

Product Pricing Communication Community Distribution

 Amity Business School

Impact of the 2Is on the Internet Marketing Mix

Interactivity

Branding

Product Pricing Communication Community Distribution

Individual
Amity Business School
 The Market space Matrix Amity Business School

Relationship Stages
Awareness Exploration Commitment Dissolution
Product

Price
Categories

The
The2Is2Is should
should influence
influence
Communication the
the design of eachcell
design of each cell
in the matrix
in the matrix

Community

Distribution

Branding
Brandingcan can also
also
accentuate (or lessen)
accentuate (or lessen)
Branding the
the impact
impact of
ofthe
thelevers
levers
in each cell
in each cell
 Amity Business School

Critical Success Factors for Digital Marketing Executives

 The willingness to understand customer needs
Customer and provide added value to each customer
Customer Advocacy
Advocacy and
and Insight
Insight interaction

 The ability to have a holistic view of the

Integration customer and the enterprise in order to create
Integration a uniquely advantaged strategic plan

 Being able to understand the dynamic tension

Balanced between one-to-one marketing and mass
Balanced Thinking
Thinking marketing and being able to strike a strategic
balance between them

 The willingness to change the status quo, take

Passion
Passion and
and chances and use “bleeding edge” tools to lead
Entrepreneurial
Entrepreneurial Spirit
Spirit teams to success

 The ability to manage marketing campaigns in

Willingness
Willingness to
to Accept
Accept a more uncertain, dynamic environment, with a
Risk new set of tools that often have few records of
Risk and
and Ambiguity
Ambiguity
successes, failures or best-practices
 Amity Business School

The New Rules of Marketing for the Digital World

• The New Rules
1. Target segments of one, and create virtual communities
2. Design for customer-led positioning
3. Expand the role of branding in the global portfolio
4. Leverage consumers as coproducers through customization
5. Use creative pricing in the Priceline.com world
6. Create anytime/anyplace distribution and integrated supply chains
7. Redesign advertising as interactive and integrated marketing,
communication, education and entertainment
8. Reinvent marketing research and modeling as knowledge creation and
dissemination
9. Use adaptive experimentation
10. Redesign the strategy process and supporting organizational
architecture
Source: Wind, Jerry and Vijay Mahajan. Digital Marketing. New York: John Wiley and Sons, p.8.
 Amity Business School

Point-Counterpoint: New Rules or Old Rules of

Marketing
Point-Counterpoint

New Rules Old Rules

Several
basic conceptual and process Differencesin the online marketing world
changes occur in online marketing are overstated
One such change is the increased ability Segmentation is still at the core of
to deliver on the promise of one-to-one marketing — “clusters” of consumers will
marketing emerge that share behavior
There is also a fundamental shift to a From the supply side, it is most efficient
more consumer-driven and controlled to aggregate these consumers to reduce
world — for example, a shift towards costs
pull-marketing and the use of more Successful marketing programs include
“pull” levers, such as online community mixing different marketing levers, both
new and old: the “master-mixer” concept
still remains
 Amity Business School

 Traditional marketing methods are still highly relevant in the

networked economy, though firms must now consider a host of
new and innovative marketing methods available online (e.g.,
dynamic pricing, online community)

 In contrast to the one-way mass promotion that characterizes

modern marketing, Internet marketing enables firms to engage
the individual in personalized dialogues

 Individualization and Interactivity are two forces that make

online marketing different

 Marketing, and the relationships it creates, should be

considered in the context of particular processes and stages
 Amity Business School

Framing the Market Opportunity

 Amity Business School

Framework
Seed Opportunity in Existing New Value
System
Influenced by the New
Economy
Identify Unmet and Underserved Need(s) • Competition occurs across
industries rather than within
industries
• Competitive behavior occurs
Identify Target Segment(s) at unprecedented speed
• Competition occurs between
alliances of companies rather
than between individual
Declare Company’s Resource-Based companies
Opportunity for Advantage • Easier to influence customer
behavior because still in early
stages of being defined
Assess Competitive, Technical, and • Industry value chains are
Financial Opportunity Attractiveness being reconfigured

Make “Go / No Go” Assessment

 Amity Business School

Opportunity Analysis Steps Benefit of Step

Step 1: Investigate opportunity in an Identifies previously unexploited areas of

existing or new value system potential market value for further analysis
Step 2: Identify unmet or underserved Uncovers customers decision process and
needs “opportunity nucleus” that a new offering
could address
Step 3: Determine target customer Allows a company to craft an offering that
segments will appeal to the target customers
Step 4: Assess resource requirements to Identifies existing resource strengths and
deliver the offering weaknesses needing to be addressed
internally or with partners to bring offering
to market
Step 5: Assess competitive, technological, Determines the character and magnitude
and financial attractiveness of opportunity of the opportunity; establishes barriers to
entry and potential rewards
Step 6: Conduct go/no-go assessment Determines whether the opportunity is
attractive enough to pursue
 Amity Business School

Three Types of Basic Value

Trapped Value New-to-the-World Value

 More Efficient  Disrupt Pricing  Customize Offerings

Markets  Ease Access  Build Community
 More Efficient Value  Radically  Introduce New
Systems Extend Reach Functionality or Experience

Hybrid Value
 Amity Business School

Exploring Basic Value

Trapped Value New-to-the-World
Value
More efficient markets
lower search and Customizing offerings
transaction costs allows customers to add
• Bizbuyer.com and remove features
• Yahoo
• Indiamart.com.
• Quickr.com
More efficient value systems
compress or eliminate steps Build communities to
in an existing value system leverage customers’
participation
• Amazon.com Hybrid Value
• Zeal.com
Disrupt pricing and change
pricing-power relationships Introduce new
• MySimon.com/ trivago.com functionality to transform
all or part of an industry
Enable ease of access and help value chain
customers find products
• e-books
• Abebooks.com
• Internet telephony
Extend reach and welcome distant
customers
• Distance education
 Amity Business School

Customer Decision Process

A framework to look systematically for unmet or underserved needs

Origination
Origination What prompts the customer to action?

Pre- Information
Information
Gathering What factors influence the customer’s decision?
purchase Gathering

Because
Because value
value
Evaluation
Evaluation
What attributes of the product creation
creation is
is based
based
does the customer consider? on
on understanding
understanding
and
and meeting
meeting
customer
customer needs.
needs.

Purchase
Purchase What options does the customer identify?
Purchase Decision
Decision What decision(s) does he make?

Post- Postpurchase
Postpurchase
Evaluation
Evaluation and
and What does the customer do about his decision?
purchase Behavior
Behavior
 Amity Business School

Competitor Profiling — Eastman Kodak

Amity Business School
Amity Business School