MODULE 1

INTRODUCTION TO DIGITAL MARKETING

Digital marketing or E-Marketing stands for electronic marketing, is also known as
Internet marketing.

In contrast to traditional marketing, digital marketing takes marketing techniques and

concepts, and apples them through the electronic medium of the internet.

Essentially, E-marketing threads the technical and graphical aspects of online tools
together, allowing for design , advertising, broad development, promotion and sales.
Internet marketing offer the possibility to tracking almost every action a visitor or
potential customer takes in response to marketing messages and how they navigate
through their buying cycle. One of the most desirable aspect of Internet marketing is
low barrier to entry.

ONLINE MARKETPLACE ANALYSIS : MICRO ENVIRONMENT

All organization operate within environment that influences the performance of

their business. Organization that monitor, understand and respond appropriately to changes in
environment that has the greatest opportunity to compete effectively in the online market.

What is micro-environment?
The actor(stakeholder) and their interactions which influence how an organization responds in its
marketplace.

THE DIGITAL MARKETING ENVIRONMENT

Micro Macro
Environment Environmrnt

known as "operating
known as "remote environment"
environment"

Focus on the actor which consist of economic condition,

change into international change,
shape the immediate trading
technological innovation, socio-
environment cultural change

impact on consumers, suppliers,

impact on future success.
employees, vendors.

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The environment under which organization functions determines how it will conduct its
business. Organizations have to constantly monitor and appraise the external business
environment. Organizations have to make changes in its operations in accordance to the
environment as to be profitable and effective. Therefore, understanding the business
environment is important before developing any marketing strategy.

Specific forces such as a market place, customers, organization, etc. which directly affects
organization are referred to as micro-environment.

The internet has made a direct impact on the micro-environment of the organization.

Market Place

The market place for an organization includes interaction between all the elements of the
micro-environment. There are five forces which impact organization in the marketplace. The
impact of internet on the five forces is as follows:

Bargaining Power of Customers: with the advent of the internet, customers have wider
choices of products than before. The increase in competition has reduced the price level as
customer demand more transparency in operations. Thus the bargaining power of customers
has increased.

Bargaining Power of Suppliers: again with wider choice due to the internet. The bargaining
power of the supplier has gone down

Threats of substitute: the internet has enabled quicker introduction of products and services.
The organization must carefully observe the introduction of substitute in the market as to
avoid losing market share.

Barriers to entry: the internet has substantially reduced establishment costs, especially in the
services industry. Therefore, organization has to carefully observe the movement of the new
entrants in the market.

Competition: the internet has started the trend of faster commoditization of products. Thus
companies need to find new ways through which it can differentiate itself from competition.

Customers

An organization's success is dependent on strong customer base. Therefore, customer needs

and requirements require a better understanding from the organization. A qualitative and
quantitative analysis needs to be developed by the company to track consumer behavior and
create more consumer insights. These consumer insights can be used by marketing groups to
develop specific strategies.

Companies are using demand analysis to understand and determine the potential of the new
business proposition among customers. Companies also deploy qualitative analysis to
understand perception of a consumer towards new products and services.

After assessing demand and perception among consumer for the products and services,
companies develop marketing communication to target specific potential customers and
convert them to actual customers. This conversion marketing technique helps companies
improve their customer base.

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Online sites track the way consumer navigates to reach particular destination or buying
decision. This helps companies to design better websites. The internet search engines are the
first stop for many consumers to begin searching for a particular product or service. Hence it
is important to understand the phrases or sentence consumers are using to reach a particular
product or service.

Companies divide consumer into a particular group or segment based upon their
demographics and psychographics.

Online Buying Behavior

It is very important for an organization to understand how the internet works in a multiple
channel scenario. Thus, companies develop different models to understand online buying
behavior.

Companies have started creating personas which summarize the customer needs,
requirements and environment based on their internet usage. Based on this persona,
companies develop a customer scenario. This customer scenario is series of task or path taken
to come at a desired buying decision.

This customer scenario is part of the overall buying experience and it involves multiple
channel partners. Therefore multi-channel strategies have to be built in assessing overall
customer online buying behavior.

Competitors

Online business is dynamic in nature. Therefore, it is important for organizations to monitor

usage of the internet by the competition. The internet is the new medium through which
companies undertake the task for customer retention and acquisition.

This dynamism has introduced new services and innovative marketing mix more frequently
compared to traditional marketing techniques. Benchmarking also has become dynamic and
cannot be considered one of, activity, but has to be continuous.

The strategies of traditional competitor are well known. However, with the internet and
globalization, new entrants are always posing a constant competition to the organization.

Companies for benchmarking should analyze competitor’s web site, identify the current
trends and keep an eye on future trends.

Suppliers

Total customer satisfaction is the key in developing long and fruitful relationship with
consumers. Therefore, it becomes important for the organization to monitor supplier, as they
do affect quality or experience for customers.

Intermediaries

Marketing intermediaries are companies which help the organization sell, promote and
distribute products and services in the market. For internet marketing, there are online
intermediary websites. These intermediary websites work as a platform between consumers
and business suppliers. The online social networks also act as an intermediary. They provide
a platform which facilitates collaboration and exchange between various individuals.

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The companies need to maintain constant watch on the internet environment. This will help
organization respond to ever changing and evolving internet micro environment.

Overview of the E-Marketing Planning Process:

The best firms have clear visions that they translate, through the marketing process,
from e-business objectives and strategies into e-marketing goals and well-executed
strateg es a d tactics for achieving those goals.

This marketing process entails three steps:

- Marketing plan creation,

- Plan implementation,

- Evaluation/corrective .

The e-marketing plan is a blueprint for e-marketing straegy for mulating and
implementation.The plan serves as a road map to guide the firm, allocation of e-
resources, and make decisions.

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 Seven-Step E-Marketing Plan
1. Situational analysis

2. E-Marke ing strategic planning

3. Objec ives

4. E-Marketing strategy

5. Implementation plan

6. Budget

7. Evaluation plan

STEP 1: SITUATION ANALYSIS :

a) Review the firm’s environmental and SWOT analysis.
b) Review the exixting market plan and any other information that can be obta ed about the
company and its brands.
c) Review the firm’s e- business objectives, strategies, and performance metri cs.

Opportunities Threats

1. Customer (online) markets growing 3. Pend ng secur y law means c stly

and untapped in our industry. s f ware upgrades.

2. Save postage costs through e-mail 4. Compe or X aggressively using e-

marketing. commerce.

Strengths Weaknesses

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 1. Strong customer service department. 3. Low-tech corporate culture.

2. Excellent Web ite and databa e 4. Seasonal business: Peak is summer

system. months.

STEP 2: E-MARKETING STRATEGIC PLANNING

*Market and product strategies, called Tier 1 tasks or strategies, are outcomes of strategic
planning.

 Segmentation
 Targeting
 Differentiation
 Positioning

*Marketers conduct analyses to determine strategies.

 Market opportunity analysis (MOA)

 Demand analysis
 Segment analysis
 Supply analysis

STEP 3: OBJECTIVES

An objective in an e-marketing p an may include under the following prospects:

 Task (what is to be accomplished)

 Measurable quantity (how much)

 Time frame (by when)

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 -marketing plans have multiple objectives:

1) Increase market share


2) Increase the number of comments a blog

3) Reduce costs
4) Achieve branding goals
5) Increase database size
6) Achieve customer relationship management goals

7 ) mprove supply chain management

Step4:E-MarketingStrategies

Tier 2 strategies include strategies related to the 4 P‟s and relationship egemt to achieve plan
objectives.

* Product strategies: merchandise, content , servi ces, advertising n its website.

*Pricing strategies: Dynamic pricing, Online bidding.

*Distribution strategies

 Direct marketing
 Agent e-business models

*Marketing communication strategies

*Relationship management strategies

Some firms se CRM (customer relationship management) or PRM (partner relationship lationship
management) software to integrate customer communication and purchase behaviour into a
database.

STEP 5: IMPLEMENTATION PLAN

*Tactics are used to achieve plan objectives

Marketing mix (4 Ps) tactics

Relationship

* Marketing organization tactics

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 Staff, department structure

* Information-gathering tactics

Website forms, cookies, feedback e-mail, websites

Business intelligence and secondary research

STEP 6: BUDGET

The plan must identify the expected ret rns from marketing investments, in order to develop:

 Cost/benefit ana ysis


 ROI calculate
 f retu
 Internal rate
 Return marketing investment (ROMI)

*Revenues and Costs

Intangible benefits, such as brand equity

Cost savings

E-Marketing costs

Technology

Site design

Salaries and other development

STEP 7: EVALUATION PLAN

 Marketing plan success depends continuous evaluation.

 E-marketers must have tracking sys ems n place to measure results.
 Various metrics relate to specif c plan goals.
 E-marketers must show how intangible goals will lead to higher revenue.
 Accurate and timely metrics can help justify expenditures.

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