UNIT-4
Business concepts in E-commerce.
Digital marketing referes to the use of various digital channels and platforms to promote a
product or service, build brand awareness and conversions. drive traffice and conversions
.
It involves the use of digital technologies Such as search engines. Social media etc.
Digital commerce marketing and Advertising Stategies and Tools.
Search engine Marketing (SEM) ?
SEM is the use of Search engines. build brand to visibility and promote businesses.
It helps in sustaining brands by showing relevent ads to users . users based on what they
search.
Google is the leading platforms for SEM.
1. Search engine marketing Advertising
This is the part of SEM that focuses direct sales through Search engines. It includes both paid and
organic methods to show content or when users search online.
Types of search engine advertising
1. Organic search
Involves listing and ranking web pages naturally, based on search engine algorithms.
Its Free, and ranking depends on how relevant and high quality a web page is
No payment involved for inclusion or position.
2. Paid inclusion
A fee-based program that guarantees website is added to a search engines index.
Helps increase how often a site is visited by the crawler.
Doesn't directly affect mank but improves visibility.
Google does not organic ranking. allow paid inclusion for organic ranking.
3) Pay-Peer-Click (PPC) Search.
Advertisers pay when someone clicks on their ad.
Uses a bidding Systens for keywords.
Ads appear above or beside organic results usually marked as sponsered.
The more the advertiser bids and the more relevant the ad, the better its positon.
4) keyword advertising
Advertisers purchase keyword, so their ads appear when those keywords are searched.
These ads may appear at the top or side of the Search results.
Advertisers bid for keyword positions.
This System used in Google Adwords.
5) Networks Keyword Advertising.
Ads are placed outside Search engines, like on blog's or content websites.
Googles AdSense program is a common example.
Ads are matched to content of webpage
publishers earn money when users click on ads displayed on their websites...
Benefits of SEA
Targets users who are actively searching for products / Services.
Allows Advertisers to appear exactly when intrest is highest
Supports brand building, product promotions, Customer research.
Reduces marketing costs and improves efficiency by reaching the right audience.
How SEO works ?
Altering the content
Designing site effectively.
updating content frequently
Using proper meta tags and headings.
Googles SEO enhancements :-
Panda :- Trargets low-quality/duplicate content.
Penguin:- Penalizes sites with Spammy backlinks.
Hummingbird :- Introduces Semantic Search understanding the meaning behind
knowledge Graph :- shows divect answers and related informat to user queries.
2. Display Ad marketing
Display ad marketing refers to the use of visual-based advertisements such as image vedio,
and rich media) that appear on websites.
Banner ad :- displayes promotional message in rectangular the top or a computer Screen.
Rich media ad :- ad employing animation Sound and interactively using flash.
intrestitial ad :- A way of placing a full page message between the current destinit of user.
And destination of user.
videa ad :- TV-like advertisement that appears as in page vedio commercial or betore during
or after content.
Native ad :- giving advertisements in TV.
3. Content Marketing
Native advertising is usually focused on partnering with a specific publisher.
creates a content compaign for a brand and then tries to Secure placement on variety
websi
It includes:1) Articles
2) infographs
3) Case studies.
4) interactive graphics
4. E-mail Marketing
E-mail marketing messages sent directly to intrested users.
Promote products & Services.
Build brand layality and customer trust
in form customers.
Generic traffic
Engage and retain customers.
Types:-
Promotional Emails :- "50% off All electronies"
Transactional Emails :- order - continuar
Newsletter email :- compony news
Behavioral email : As per the user search.
Tools used
Mailchimp
Constant contact
Sendinblue
Hubspot
Zoho Campaigns.
Challenge
Emails are marked as Spam
Low engagement if emalls are not persnolized.
5. Affiliate Marketing
Commissions paid by advertisers to affiliate websites for referring potential customers to
Their website.
Types
1. Pay-per sale: Affiliate eams a percentage of sale amocent
2. Pay-per-Clicks:- Affliate is paid based on the no. of clicks generated
3. Pay-per-lead :- Affiliate earms lead is generated. money when lead is generated.
Internet Marketing Technologies
Meaning: Internet marketing refers to the strategies used to marketproduct and services
online and through other digital means.
Internet marketing, also known as digital marketing or online marketing, refers to the use of
digital channels to promote a brand, product, or [Link] marketing includes a variety
of tactics, such as search engine optimization (SEO), social media marketing, email
[Link] marketing, and pay-per-click (PPC) advertising.
Internet Marketing includes variety of online platforms:
Website content and design
Email marketing
Social media marketing
Mobile marketing
Blogging
Sponsorship and paid promotions.
Internet marketing technologies
1) Search Engine Optimization (SEO): SEO is the practice of optimizing yourwebsite to
rank higher in search engine results pages (SERPs).
2) Pay-Per-Cilck Advertising (PPC): PPC advertising allows you to bid on keywords and
phrases so that your ads appear at the top of search engineresults pages. You only pay when
someone clicks on your ad.
3) Social Media Marketing (SMM): SMM involves promoting your brand andproducts on
social media platforms such as Face book, Twitter, Instagram,and Linkedin.
4) Emall Marketing: Email marketing involves sending promotional messagesto a list of
subscribers who have opted-in to receive them.
5) Content Marketing: Content marketing involves creating valuable content that is
designed toattract and engage your target audience. This can include blog posts, articles,
videos, podcasts, and more.
6) Video Marketing: Video marketing involves creating video content topromote your brand
and products. This can include product demonstrations, tutorials, testimonials, and more.
7) Affilate Marketing: Affiliate marketing involves partnering with other websites and
businesses to promote your products and services. You pay acommission to the affiliate for
each sale they generate.
These are just a few of the most commonly used internet marketing technologies. Other
technologies and techniques include mobile marketing, display advertising, retargeting, and
more.
Need for Internet marketing for business
Internet marketing has become an essential part of business strategy for a number of reasons.
Here are some of the key reasons why businesses needinternet marketing:
Reach a wider audience: With internet marketing, businesses can reach aglobal audience
with just a few clicks. This allows businesses to expand their customer base beyond their
local area and tap into new markets.
Cost-effective: Internet marketing can be much more cost-effective thantraditional forms
of advertising. For example, a business can run a social media campaign for a fraction of
the cost of a print ad or TV commercial.
Targeted marketing: Internet marketing allows businesses to target specificgroups of
people based on their demographics, interests, and behavior. This means that businesses
can create highly targeted campaigns that aremore likely to resonate with their ideal
customer.
Measurable results: With internet marketing, businesses can track theeffectiveness of
their campaigns in real-time. This allows them to makedata-driven decisions and optimize
their campaigns for better results.
Increased brand awareness: Internet marketing can help businesses buildtheir brand and
increase their visibility online. This can lead to increased brand awareness and customer
loyalty.
24/7 avallability: Unlike traditional forms of advertising, internet marketingis available
24/7. This means that businesses can continue to attract new customers even when they
are closed for business.
Social Marketing
It is the process of using Social media platforms to promote a product, Service or a brand.
Social marketing process
Social marketing process
1. Fan Acquisition
The first step is to attract users to your social media pages.
Methods include: social ads, display ads, contests, discounts, or viral posts.
Platforms: Facebook likes, Twitter follows, Instagram followers.
2. Engagement
Encouraging visitors to interact with your content and brand.
Once people are aware of the brand the next step to engage them using
Interactive content(photos,polls,vedios)
Blogger reports.
Users interaction on platforms like Facebook Tumber.
3. Amplification
Refers to users sharing or promoting the content further.
Users retweet, share, or tag others — helping the brand message reach a wider audience.
This step is crucial for viral marketing.
4. Community
Over time, a brand creates a loyal community of followers.
Communities are formed via brand pages, Facebook groups, regular Twitter chats, or
Instagram comments.
These users often become brand advocates.
5. Brand Strength (Sales)
The final goal is to convert engagement into brand loyalty and sales.
Includes using social commerce features like “Buy” buttons or direct links to e-commerce
platforms.
Strong communities lead to higher conversion rates and repeat customers.
Social media platform
Facebook :
Marketing tools :
Like button : Amplifies posts via user shares
Brand pages : For interaction and community building.
News Feed ads/ sidebar ads : Paid ads for fan acquisition.
Target audience : 18-54yrs
Industries : E-commerce,retail,banking, health,real estate.
Twitter :
Tools :
Short messages
Hashtags for each
Trends for engagement
Purpose : News,openion sharing, brand alerts
Target audience : Travel,news,e-com
Instagram :
Visual based content.
Influencer marketing
Story ads
Purpose : Visual story telling,product showcasing
Target audience : 18-35yrs
Industries : Fashion,beauty,travel,entertainment
Youtube :
Tools :
vedio content for promotion
Paid ads
Purpose : vedio marketing,product reviews.
Target audience : 18-55yrs
Industries : Education,tech,B2B
Snapchat :
Tools :
short disappearing
Lenses and filters .
Purpose : Brand awareness for younger users
Target audience : 18-35yrs
Industries : food,fashion,live events .
SOCIAL MEDIA BENEFITS:/Benefits of Social Media Marketing
1. Stay Top of Mind
We're in an age where the online community is drowning in a sea of information. People have
FOMO (fear of missing out), and brands are trying hard to be noticed. The adage out of sight,
out of mind couldn't be any [Link] media allows brands to send out regular content to
stay top of the mind ideas
2. Get New Content
The information overload, when used wisely, can work in your favor. With thehelp of social
media, you can get new content ideas through news, updates, competitors".Another way
brands can get content ideas while boosting engagement is throughcrowd [Link]-
generated content has become a staple for organizations to increase Content frequency while
making the audience a part of their contentcreation.
3. Online Reputation Management:
Your customers will speak about you whether you are on social media or not. Don't let your
customer suggestions, queries or complaints fall on deaf ears. Social media when used
proactively can be an excellent customer service andengagement platform.
4. Expanded Pald Ad Capabilities:
Social media platforms enable organizations to run ads with precision targeting. You can find
the exact audience segment that would want to buy your products. With features such as
remarketing, you can reconnect with past website visitors or reactivate a dormant user base.
The lookalike audience feature lets you to findnew audience segments that shares similar
characteristics to your existing customers.
5. An Effective Revenue generation Medium:
Social media is an important touch point when guiding leads through the marketing funnel.
Along with that, lead generation ads have proven to be aneffective way to source new
prospects.
Social Media Tools:
Social Media Marketing requires you to be active almost all the time and across multiple
channels. To be efficient and omnipresent, there are multiple automation tools that let you
manage your social media accounts from one placeeven when you're on the
Social Media Marketing Tools
1. Buffer: Buffer is a social media management tool and has been around since and trusted
by industry professionals as it allows them to manage multiple social media accounts,
measure performance, have multiple people access one account, get recommendations and
integrate with yourmost used apps.
Supports: Facebook, Twitter, Instagram, Linkedin, Pinterest
Plans: $15/month to $99/month
2. Hootsulte
Hootsuite is another widely used social media management tool that lets youschedule posts
on over 20 social media marketing platforms. It offers features that help you accurate,
schedule and boost content,
Supports: Facebook, Twitter, Instagram, Linkedin, YouTube, Word Press, Pinterest.
Plans: $29/month to $599/month
3. Sprout Social
Sprout Social offers all the common tools that other social engagement tools have. It also
offers some other features that let you schedule posts, monitor competition, track 2015
keywords and more. It also had a smart inbox that letsyou view and respond to all messages
received across platforms.
Supports: Facebook, twitter, instagram
Plans:$99/month to $249/month.
Mobile marketing
Mobile marketing is any advertising activity that promotes products and services via mobile
devices ,such as smartphone,tablets.
SMS and MMS marketing
It includes techniques such as :
Mobile-friendly websites
In-app advertisements
Push notifications
Social media marketing on mobile platforms
Location-based marketing
QR code marketing
MOBILE MARKETINIG VS TRADITIONAL MARKETINIG
Mobile marketing and traditional marketing differ in many ways. Here are somekey
differences:
Target audience: Traditional marketing typically targets a broad audiencethrough mass
media channels such as television, radio, newspapers, and billboards. Mobile [Link]
the other hand, is more targeted and personalized, as it allows businesses to reach customers
directly on their mobile devices.
Reach: Traditional marketing can reach a large number of people at once, but it may not
be as effective at reaching specific groups or individuals. Mobile marketing allows
businesses to reach specific audiences throughpersonalized messages, which can increase
engagement and conversionrates.
Cost: Traditional marketing can be expensive, especially if it involves mass media channels
such as television and radio. Mobile marketing can be morecost-effective, as businesses
can use social media and other digital channelsto reach customers.
Tracking and measurement: Mobile marketing offers more opportunities for tracking and
measuring the effectiveness of campaigns in real-time, while traditional marketing can be
harder to track and measure accurately.
Engagement: Mobile marketing offers more opportunities for engagementand interaction
with customers, as it allows businesses to communicate with customers in real-time through
social media, SMS messaging, andother channels.
Overall, while traditional marketing can still be effective, mobile marketing
offersbusinesses more opportunities to reach and engage with customers on a more
personalized level, and at a potentially lower cost.
Advantages of Mobile Marketing:
1) Reach: Mobile marketing allows businesses to reach a large number of people, as most
people carry their mobile devices with them at all times.
2) Targeting: Mobile marketing enables businesses to target specific demographics or
individuals based on their mobile usage patterns, location and behavior.
3) Cost-Effective: Mobile marketing can be cost-effective, especially whencompared to
traditional marketing methods such as television, radio, orprint advertising.
4) Real-time communication: Mobile marketing enables businesses to engagewith customers
in real-time through messaging, social media, and other channels.
5) Personalization: Mobile marketing enables businesses to personalize theirmessages and
promotions based on customer data such as location, preferences, and purchasing history.
6)Wide reach: Mobile marketing enables businesses to reach a wide and diverse
audiencethrough mobile devices such as smart phones and tablets, as these devicesare
ubiquitous and widely used around the world.
Disadvantages of Mobile Marketing:
1) Privacy concerns: Mobile marketing raises concerns over privacy, as personal data is often
collected from mobile devices, and customers may feel uncomfortable with businesses using
their data for marketingpurposes.
2) Limited screen size: Mobile devices have smaller screens than desktop computers, making
it more challenging to create compelling visuals andmultimedia content.
3) Technical Issues: Mobile marketing campaigns may face technical issues such as
compatibility issues, network connectivity, and device limitations.
4) Limited screen size: The limited screen size of mobile devices can make itdifficult for
businesses to create compelling and visually appealing ads ormessages.
5) Content overload: With so many businesses using mobile marketing to reach customers,
there is a risk of content overload, which can lead to customer fatigueand disengagement.
LOCATION BASED MARKETING
It is a strategy that involves delivering marketing messages to consumers based on their
geographic location. It leverages GPS data, Wi-Fi, Bluetooth, and other technologies to
determine a consumer's location and then servesthem relevant ads or promotions.
Types of location based marketing:
1) Geofencing: This involves setting up a virtual boundary around a physical location. When
target audiences enter that boundary, they will become an active target of the marketing
strategy. This might mean theyreceive content, offers.
How It works: GPS technology to create a border. Whenever a target usercrosses this border,
they receive a notifications or piece of messaging.
EX: if a customer has been reviewing a product online, they getnotifications that the product
is in stock at a nearby store.
2) Beacon-based marketing : This involves using small devices called beacons to send
targeted messages to consumers who are within range of the beacon. Beacons use Bluetooth
technology to communicate with customers' smart phones and can be usedto deliver
personalized offers, promotions, or product information. This uses Bluetooth beacons to
communicate with nearby mobiledevices and send targeted ads or notifications to users.
How It works
Beacons send a signal to your device that prompt a server to send contentto your device. This
could be a push notification, email, etc.
For example, say a sports stadium encourages attendees to download theirapp for ticketing,
concessions, etc. The venue would set up beacons to recognize when a device with that
application installed is in range.
Benefits
Users have to be opted-in and have Bluetooth on in order for youto take advantage of this.
However, this medium of location- based targeting does give you a more direct communication
channel with customers.
3) Mobile Targeting
Mobile targeting occurs when marketers target consumers with ads on their mobile devices.
Because consumers typically want to avoid advertising, marketers aim to make their ads
context specific, which can bebased on time, device, or location.
How It works
Create segments in your mobile ad platform that define who you want to target and what
qualifications to target them by (when they enter a certainarea, or are in proximity of your
store).
Benefits
This allows marketers to target users directly on their devices for amore personalized
connection.
Marketers often see greater returns on ad spend using a moretargeted approach.
Examples
Social media ads that target based on location data can helpencourage visits to a store,
restaurant, or event nearby.
4) Geo-Conquesting
Geo-conquesting uses location data to divert prospects away from competitor locations. For
example, car dealerships might create a boundary around a competitor's lot. When a target
consumer comeswithin that boundary, they will be sent an offer to users that encourages them
to visit the other dealer.
How It works : Geo-conquesting uses GPS technology to target users in the proximity of
yourcompetition.
Benefits
Organizations can win market share and new customers by encouraging users they know are
already shopping for a product in the space to purchase from themover a competitor.
Ethical Issues In e commerce
As with any industry, e-commerce has its own set of ethical issues that businessesand
consumers need to be aware of. Here are some of the key ethical issues in e-commerce:
Privacy: Online businesses have access to a wealth of personal data from their customers,
such as name, address, and credit card information. It is important for businesses to protect
this data and only use it for its intendedpurpose. Consumers also need to be aware of the
risks of sharing their personal information online and take steps to protect their privacy.
Security: E-commerce websites need to be secure to protect both the business and its
customers from cyber attacks. Businesses should implementstrong security measures, such
as SSL encryption and two-factor authentication, to prevent data breaches and protect
customer information.
Fraud: E-commerce businesses need to be vigilant about preventing fraud, such as credit
card fraud or identity theft. This can be done through verification processes, such as
requiring a billing address or CW code, andmonitoring for suspicious activity.
Fair pricing: E-commerce businesses need to ensure that their pricing practices are fair
and transparent. This includes avoiding price gouging during times of high demand and
accurately disclosing all fees and charges.
Environmental Impact: E-commerce can have a significant environmentalimpact,
particularly due to the increased use of packaging and shipping materials. Businesses
should take steps to reduce their environmental footprint, such as using sustainable
packaging and minimizing the use of single-use plastics.
Overall, ethical issues in e-commerce require businesses to be transparent and responsible
in their practices and consumers to be informed and vigilantin their online interactions.
Social Issues In e commerce
E-commerce has revolutionized the way we shop and do business, but it has also raised a
number of social issues that need to be addressed. Hereare some of the key social issues in e-
commerce:
Employment: E-commerce has disrupted traditional brick-and-mortar retail, which has led
to job losses in the retail sector. At the same time, e-commerce has created new job
opportunities in areas such as logistics, customer service, and digital marketing. Businesses
need to be aware of the impact of e-commerce on employment and take steps to support
theirworkforce.
Accessibility: While e-commerce has made shopping more convenient for many people, it
can also create barriers for those who have limited access to technology or who are not
comfortable with online shopping. Businessesneed to ensure that their e-commerce
platforms are accessible to everyone, regardless of their technological ability or location.
Digital divide: E-commerce requires access to high-speed internet and other technologies,
which can create a digital divide between urban and rural areas or between wealthy and
low-income households. Businesses need to be aware of this divide and work to ensure that
all consumers haveequal access to their products and services.
Consumer protection: E-commerce has raised new challenges for consumerprotection,
such as online fraud and scams, as well as issues with product quality and customer service.
Governments and businesses need to work together to develop policies and regulations that
protect consumers in the e-commerce space.
Cultural Impact: E-commerce has made it possible to buy and sell products across
borders, which has created new opportunities for cultural exchange and economic growth.
However, it has also raised concerns about the impact of globalization on local cultures and
businesses. Businesses need tobe aware of the cultural implications of their e-commerce
activities and work to respect local cultures and customs.
Overall, social issues in e-commerce require businesses to be aware of thebroader social
impact of their activities and to take steps to ensure that e-commerce is accessible, fair, and
beneficial for all stakeholders.
Political Issues related to E commerce
E-commerce has become a significant political issue, as it raises a number of challenges for
governments around the world. Here are some of the key politicalissues related to e-commerce:
Taxation: E-commerce has created challenges for governments in terms oftaxing online
transactions. Many countries have struggled to develop effective tax policies for e-
commerce, which has led to concerns about tax evasion and unfair competition.
Governments need to work together to develop policies that ensure a level playing field for
all businesses, whetheronline or offline.
Regulation: E-commerce has raised concerns about consumer protection, privacy, and
intellectual property rights. Governments need to develop effective regulations and
enforcement mechanisms to address these issuesand ensure that consumers are protected.
Cross-border trade: E-commerce has made it easier for businesses to sell their products
and services across borders, but it has also raised challengesrelated to trade regulations and
tariffs. Governments need to work together to develop policies that support cross-border e-
commerce while ensuring fair competition and protecting local industries.
Cybersecurity: E-commerce has increased the risk of cyber attacks, data breaches, and
other forms of online crime. Governments need to work withbusinesses to develop effective
cybersecurity policies and measures to protect consumers and businesses from these
threats.
Digital rights: E-commerce has raised concerns about digital rights, including freedom of
expression and access to information. Governments need to develop policies that ensure
that these rights are protected in the online world, while also balancing the need for security
and privacy.
Overall, political issues related to e-commerce require governments to work together to
develop policies and regulations that support fair competition, protect consumers and
businesses, and promote innovation and growth in thedigital economy.