Swarnabha Shankar Ray

10BM60092

Vinod Gupta School of Management

Indian Institute of Technology Kharagpur

Index

Abstract 2

Introducing the term Digital Marketing 3

Differences between Digital and traditional Marketing 4

Differences between Digital and Internet Marketing 5

Understanding of Digital Marketing Concept in India 6

Digital Marketing Strategies 7

Future: How is Digital Marketing better 11

Conclusion 12

References 13
Abstract
"A widely practiced strategy in launching this type of marketing program is to do a test run initially. Data
collected from the test run will provide an indication of the level of response to be expected if the direct
marketing campaign is launched. If the level of response is judged to be too low, then the management
has to revise its procedures of selecting the right consumer segment. Because the costs of implementing
direct marketing programs are high and because digital marketing programs usually generate a very low
percentage of response, it is critical that the right consumer segment be selected."

This paper examines the ways that digital marketing can provide the operational framework through
which digital relations with customers may be built and maintained. The paper stresses that, because the
investments required to launch a digitalmarketing campaign are quite high, management has to evaluate
rigorously the profitability of launching digitalmarketing campaigns. The paper then underscores the
importance of the market research through all stages of the functional value chain. The paper then points
out methods of evaluating digitalmarketing programs such as calculating the return on investment (ROI).
The paper presents various examples of digitalmarketing programs.
Introduction:Gone are the days when internet marketing was considered a stand-alone

promotion medium. The next big thing in the marketing world is Digital Marketing. This mode is
contemporary, user-friendly and very accessible. Also known as online marketing, this is a way of
endorsing products and services using the digital interactive distribution channels. This medium
involves usage of modern communication media like internet, mobile and digital outdoor
mediums.The importance of digital media advertising can be ascertained by a prediction which
says 'Strategic internet marketing is likely to replace the traditional tools of marketing in the next
five years.' A large section of marketing experts believe that this digital interactive marketing
medium will make traditional marketing tools appear irrelevant to the new generation media
consumer.

Before going any deep into the topic ‗digital marketing‘ we need to understand the concept
called Marketing.Marketing is basically one‘s interaction with one‘s consumer. This interaction
with one‘s consumer is done so that one can get the consumer to purchase ones product or
service. Marketing is all about, getting the customer to purchase ones product or service.There
are tendencies to confuse ―marketing‖ with other terms like ―advertising‖ or ―publicity‖ etc.
However, advertising is a small part of marketing,it is just like the tip of the marketing glacier.
Advertising is one of the methodsby which you can get the customer to purchase your product or
service. There are many other ways. Like "publicity" though newspaper will increase awareness
about one‘s product or service and thus may get the customer to purchase one‘s product or
service.The thing is that marketing is a mixture of all the activities of advertising, promotion,
publicity, deciding the look and feel of the product, how it will be sold and sent to the consumer
etc. All of these are the different parts of marketing. They are not marketing.

Whereas a Digital describes electronic technologies that generate, store, and process data in
terms of two states: positive and non-positive. Digital systems are data technology that uses
discrete (discontinuous) values. By contrast, non-digital or even analog systems use a
continuous range of values to represent information. Although digital representation is discrete,
the information represented can be either discrete, such as numbers, letters or icons, or
continuous, such as sounds, images, and other measurements of continuous systems. 1

Digital Marketing is the practice of promotion of products and services using interactive digital
distribution channels to reach consumers in a timely, relevant, personal and cost-effective manner.

While digital marketing include many of the techniques and practices contained within the category of

1
http://en.wikipedia.org/wiki/Digital
Internet Marketing extends beyond this by including
other channels with which to reach people that do
not require the use of The Internet. As a result of
this non-reliance on the Internet/digital media, the
field of digital marketing includes a whole host of
elements such as mobile phones, sms/mms,
display / banner ads and digital outdoor.

Previously seen as stand-alone service in its own

right, it is frequently being seen as a domain that
can and does cover most, if not all, of the more
traditional marketing areas such as Direct
Marketing by providing the same method of
communicating with an audience but in a digital
fashion. Digital is now broadened to support the
"servicing" and "engagement" of customers.

Digital Marketing is the promoting of brands using all forms of digital advertising. This now includes
Television, Radio, Internet, mobile and any other form of digital media.2

At this point we need to answer a few obvious questions

What is the difference between digital and traditional marketing?

Gone are the days when internet marketing was considered a stand-alone promotion medium. With
increasing reach of digital marketing technologies, online marketing is capable of taking over most of the
traditional marketing areas in a digital way. Direct marketing seems to be an outdated phenomenon after
internet marketing made its place in commoners' life. Direct marketing is now quick, easier, interactive
and beyond human limitations with the use of internet marketing tools.

With every passing day, human lives are moving online. Traditional marketing media is losing its
momentum. A TV spot, which was considered most effective a few years back, is losing its charm. Today,
it is 25% less effective as compared to a situation few years back. Strategic internet marketing reaches
the consumers where they are. A recent survey study disclosed that up to 90 percent of the real estate
prospective buyers begin their search on the internet. This indicates that real estate companies have no
choice but to resort to digital marketing strategies.

2
http://en.wikipedia.org/wiki/Digital_marketing
Internet marketing tools have advantage of easy accessibility. SEO, banner placement, email marketing,
social media, various other online tools of marketing are easy to access at consumers' end. The
marketers can get the exact figures of hits on advertisements. They can easily figure as to how many of
the hits are converted into leads. Whereas, incase of traditional marketing, ascertaining exact figures is a
hard nut to crack.With the development of business societies and the rapid progress of information
technology, the internet has become a unique business
environment. Meanwhile, the marketing techniques applied in
electronic commerce, the business activit on the net, has
even become a marketing way that a lot of companies would
like to explore. The significant differences between them
come from the combination of traditional marketing (4Ps:
product, price, place and promotion) and that of . Internet
marketing is derived from traditional marketing. The line of
difference is very thin in terms of what is on offer. Both hold
prime positions. But time is changing and one‘s prospective
clients are far more likely to 'Google' their needs as a first
port of call than go anywhere else for information. And it
becomes the switched on business person to go where the
people go. The difference between traditional method and Internet marketing really lie in effectuality, ease
and cost. The costs are certainly lower with the former and the effects of online promotions are more far-
reaching and have a higher impact. Testimony to the fact, that we are living in new and exciting times.
And this is strongly indicated by the ways that online social media marketing enables businesses to
commune with hundreds of thousands of people, whereas the traditional methods of actually meeting
people in person at corporate events or expos might result in contacts that would struggle to make the
100 mark. In that respect the Internet offers all that traditional marketing does, but on a wider scale, for a
longer term and at a significantly reduced cost. 3

What is the difference between digital marketing and Internet

marketing?

In a nutshell, Digital Marketing technique is the practice of promoting products and services using digital
distribution channels to reach consumers in a timely, relevant, personal and cost-effective manner.

3
Article source - WebTotal Marketing/Srssolutions
While it is a fact that digital marketing technique includes many techniques and practices contained
within the category of Internet Marketing, it extends beyond this by including other channels with which to
reach people that do not require the use of The Internet. As a result of this non-reliance on the net, the
field of digital marketing
includes a whole host of
elements such as mobile
phones, sms/mms, display /
banner ads and digital outdoor.

Previously seen as a stand-

alone service , digital
marketing is now taking over
on most, if not all, of the more
traditional marketing areas. In
the not too distant future the
majority of marketing
communication will be done in
digital form and the internet
will only encompass a small
piece of the digital universe.

The big difference between

digital marketing and Internet marketing is in the type of marketing techniques used. Internet marketing,
although using the digital media, focuses on every means of getting information to potential customers
about products and services a merchant is offering using only the Internet. Digitalmarketing use all the
channels available in the digital media to get information to customers, and it does not limit itself to the
4
Internet.

Understanding of the Digital Marketing Concept:

4
By -Wayne Shantz
The concept ‗digital marketing‘ is path
breaking and new in the Indian market.
It will take a little time before Indian
Consumer market gets fully aware and
used to it.The prospect of web based
companies are expected to be very
bright considering the fact that more
and more Indians are going in for web
based marketing.The following pie
chart shows the understanding of the
digital presence among the internet
users in India.

Digital Marketing Strategies

The importance of developing an effective digital marketing strategy is indicated by Michael Porter (2001)
who has said:

‘The key question is not whether to deploy Internet technology – companies have no choice if
they want to stay competitive – but how to deploy it.’

A digital marketing strategy is required to provide consistent direction for an organization‘s e-marketing
activities that integrates with its other marketing activities and supports the overall objectives of the
business. For many companies, the first forays into digital marketing are not the result of a well-defined,
integrated Internet strategy; rather, they are a response to competitors activities or customers demand.

Digital marketing lays emphasis both traditional and digital marketing strategies for providing customers
with the latest news and developments about products and services. Digital marketing uses all the
available channels available in the digital media to get information to customers, and it does not limit itself
to the Internet.

Digital Marketing Media

The digital marketing sector use many different digital marketing media channels, such as- Cell phone
Short Message Service (SMS) , Really Simple Syndication (RSS) feeds , Podcasts , Voice Broadcast ,
Video E-mails , Banner ads on affiliate websites , Outdoor digital displays , Websites and Blogs

RSS Feed is a network of web feed formats used to publish frequently updated works—such as blog
entries, news headlines, audio, and video—in a standardized format.

A podcast also known as non-streamedwebcast, is a series of digital mediafiles (either audio, video or
5
both) that are released episodically and are often downloaded through web syndication.

Voice
Broadcast banner ads
Voice E-mails
on websites

Really Simple Outdoor

Syndication Digital
(RSS) Feeds Displays

Cell
Blogs
Phone(sms)

Digital
Prodcast Marketing Websites
Media

It uses all these digital medias to reach out to the prospective customers. These forms of media channels
are both cost effective and are also targeted and positioned to proper segment.

New marketing mix for the digital business strategy:

The 4 Ps marketing mix was created in the earlier days of the marketing concept when physical products,
physical distribution and mass communication were dominant. Today, with the new business environment
created by the different and empowered capabilities of digital contexts, the marketing mix paradigm
increasingly becomes object of criticisms. E-marketing research and practice arrives to a deeper
comprehension and maturity in the digital environment, and advents a new marketing mix paradigm which
will definitely put to the traditional 4 Ps to rest and give light to a new widely accepted paradigm for

5
Wikipedia
marketing operations.In the Italian literature, Prandelli and Verona (2006) propose a 3 Cs model, where
each C contains some key elements: content (Web site and platform), community(interaction platform and
relational capability), commerce (including the 4 Ps: product, price, place and promotion); while Pastore
and Vernuccio suggest a 3C+I (interface) model where the 4 Ps are integrated and recontextualized in
the on-line environment

Then came the theory of 8 P‘s of Digital Marketing.

Product – A tangible item or an intangible service that is producedin bulk amount or

manufactured on a large scale with a specific volume of units.
o Intangible products are service based products like the tourism industry&Hotel Industry
o Tangible products such as a car,bike,soapetc

To retain the competition in the market, product differentiation is required and is one of the
strategies to differentiate from its competitors.

Price – It is the amount a customer pays for the product. It is determined by a number of factors
o market share
o competition
o material costs
o product identity
o the customer's perceived value of the product.

The condition of the business may increase or decrease the price of product if other stores have
the same product.
 Place–represents the location/demography where a product can be purchased. It is often referred
to as the distribution channel. It can include any physical store,metamarket,malls as well as
virtual stores on the Internet.Digital marketing uses this virtual market as its mode of operation.

Digital Promotion represents all of the communications that a digital marketer may use in the
marketplace. Promotion has three distinct elements:
o advertising
o public relations
o sales promotion.

In digital media advertising is done through web pages. Feedbacks are taken after one avails a
online service. This is done to maintain a long term relation with the customer and for marketing

surveys.Offers available online in the form of pop ups form the sales promotion.Any organization,
before introducing its products or services into the market; conducts a market survey. The sequence
of all 'P's as above is very much important in every stage of product life cycle Introduction, Growth,
Maturity and Decline.

Precision refers to the increased accuracy of the selection process of the target segment and for
marketpositioning in digital contexts. This is explicitly possible due to database management
systems
Payment systems must be secure and easy for customers to use
Personalizationis the possibility to create a flexible interface, which is able to adapt to
customers‘ needs and wills
 Push and Pull regards to the choice of trade-off among the active communication policies (push)
and communication onuser‘s demand (pull).
o Pull digital marketing– the customer seeks information about products or services by
visiting the company‘s sources of information searching for the specific product or service
information. They are basically requesting to view this specific content.

These are typically located in

 Websites
 blogs
 streaming audio
 video sources

Customers have found related information on other websites or been directed to the
company‘s sources by a referring website to find the information.

o Push digital marketing– customers are provided information by receiving or viewing

advertisements digitally, such as: cell phones, Short Messaging Services, RSS, calls, etc.

Future: How is Digital Marketing better

Digital marketing

With the advent of globalization all businesses had to undergo modification, at least it is
mandatory today for every company to have their digital presence. Customers are global in
scope. There's no boundary in ones business and transactions is 24 * 7 and more importantly no
holiday.
In online business it is considered as very fast and economical for promoting product and
business growth.
Credibility plays an important role to invite more customers. You can't fool your customers, once
they've been fooled, you're out online forever.
Good public relation contributes to the success and failure of any product available online. You
should have a strong public relation to your customers to survive on the Internet. Feedbacks are
taken and worked upon, and a large database management system helps in maintaining
customer feedback.
Integrated cross-functional solutions. Customization, for example, requires close integration of
marketing, operations, and customer services.
 Global perspective. In a world in which the reach of the Internet is global and the firm may have
no knowledge of customer needs, preferences, likely behavior, or local competitive
behavior, a global perspective is a required
Strategic alliances: The increased importance of strategic alliances as outsourcing
initiatives for the development and delivery of the Internet strategy is evident from the
enormous growth of the professional services firms.

Time competitive. Shorter development cycles, faster decisions,faster market penetration,

and time as a key objective are the new realities.

Expand the Role of Branding in the Global Portfolio

Traditional Marketing

Customers are only limited in one‘s service area. There is a boundary and scope of product
distribution.
Product promotions entail big budget, using tri-media methods of promotion.
Because customers can see, touch and feel the actual product, they've the choice to buy it,
based on their personal decision.
Good public relation contributes one‘s failure and success in offline business. One‘s dealing with
one‘s customers would attributes how you'll succeed in the traditional method of marketing.

Conclusion

As the digital revolution has taken place, as the world shifts from physical to virtual, as values
move from the hard steel of the industrial age to the high concepts of a knowledge economy--
what could be more important to companies than their relationships with customers and other
external constituencies? Knowing how to communicate with customers, meet their changing
needs, and build sustainable relationships and loyalty--this is what digital marketing and its new
rules are about. The Internet provides us with powerful outlets to strengthen our commitment to
customer satisfaction. In new business environments, it is essential to focus on changing
customer needs and behavior and on the establishment of strong relationships with customers
and other stakeholders. Marketing competencies based on the new rules of marketing articulated
here are, therefore, one of the primary sources of advantage for companies in a digital age.

For dot-com companies, the challenge is what to adapt and prepare for the next Internet
technology, business models, and theirmarketing implications. How to avoid being on the
"bleeding edge" and how best to move towardthe "brick-and-click" world.In addressing these
issues, a key task for the firm is the implementation of the adaptiveexperimentation philosophy.
This should encourage the development of customercentric newbusiness incubators to develop
and launch innovative "out of the box" businesses that addressemerging customer needs.This
recommendation is motivated by a recognition that the new marketing paradigm defines a central
philosophy, approach, and set of activities that should be adapted by all executives. If wehave
great technologies that arenot focused on the market, what value will it provide? Whatadvantages
will it create? By understanding the new global digital reality and focusing on the newrules of
marketing, marketing professionals can begin to reclaim some of their lost ground andcorporate
executives can increase their likelihood of success.Digital technologies have opened new
channels for selling products. It provides the consumer with apreviously unimaginable quantity
and quality of information in an easily accessible form.Consumers can sort products based on
any desired attribute: price, nutritional value, functionality,or combination of attributes such as
price/value. Consumers can use it to obtain third-partyendorsements and evaluations, or they can
tap into the experience of other users. Digitaltechnology has put the customer in charge, creating
a fundamental shift in the dynamics ofmarketing. Empowered by technology, customers are
unforgiving. Pity the poor company that failsto see this or refuses to play by the new rules.The
enormous advancement in information technology is shattering walls between industries as
well,shifting the balance of power to empowered consumers and creating what information
technologyexpert Colin Crook has called the emergence of a "global grid." This grid is a network
of users andportals, offering free communications, scalability for even the smallest corporations,
globalization,total connectivity, and universal digitalization. In this new environment, simple rules
often producecomplex outcomes, such as fractals or traffic patterns on the Internet. Internet
performance hasbeen improving even though the volume of traffic has increased tremendously.
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http://en.wikipedia.org/wiki/Digital_marketing

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http://www.smartinsights.com/wp-content/uploads/2010/09/Marketplace-analysis.png

http://EzineArticles.com/?expert=Crisologo_Ramasasa

http://www.livrariacultura.com.br/imagem/capitulo/483875.pdf

International Journal of Business Management -

http://www.ccsenet.org/journal/index.php/ijbm/article/viewFile/2606/3326

http://www.glennward.co.uk