Module 1-

Introduction & Basics of

Digital Marketing
 INTRODUCTION TO
DIGITAL MARKETING?

• Philip Kotler defines digital marketing as ‘a form of direct

marketing which links consumers with sellers electronically
using interactive technologies like emails, websites, online
forums and newsgroups, interactive television, mobile
communications, etc.’
• Referred e- marketing/Internet marketing earlier
• Involves getting closer to customers, adding value to products,
widening distribution channels, boosting sales by running
digital marketing campaigns using digital media channels like
search marketing, online advertising, affiliate
marketing ,generating leads through a website and managing
Achieving
after sales marketing objectives by applying digital
service
technologies and media
• E commerce – incl primarily selling online or ability to transact
online
TRADITIONAL MARKETING VS DIGITAL MARKETING
 P-O-E-M FRAMEWORK

Paid media
Media in which there is an investment to pay for visitors/reach/conversions through
search, display or affiliate advt. for eg Sponsored advertisements in search engines,
websites, Facebook, Linkedin and [Link] media
Owned media
Media owned by brand. Company’s official website, microsite, social media pages such
as Facebook page, Linkedin page,Youtube channel and Twitter handle. Offline incl.
brochures, retail stores Mobile apps or blogs
Earned media
Publicity that is generated through recommendations and word
of mouth Done by targeting influencers ,stimulations through
social/viral media
Social media engagement such as likes, shares, comments, replies, retweets,
favorites etc. partners like influencers, bloggers, customer advocates play a role
KEY DIGITAL MARKETING ACTIVITIES

Activities that require planning,

management and optimization
for online marketing to be
competitive and maximize ROI.
CHARACTERISTICS OF DIGITAL MARKETING

Two-way • Consumers seek a brand- for eg pre purchase search

Communicat online before buying
• Consumers co create the content- user stories
ion /testimonials

• Marketers- precisely tgt using age, location, gender,

Targeting of income ,interest, behavior, lookalike, remarketing etc
• Use algorithms and technology for targeting
ONE • Personalised and interactive – use of cookies,
recommendations

• Low entry barrier due to minimum costs

Level playing • Not restricted to big business, even small and medium
businesses can leverage it
field
CHARACTERISTICS OF DIGITAL MARKETING

Measurabi • Enables calculation of ROI to measure

performance
lity • For eg- how many ppl clicked,
stayed on site, interacted , bought
a product
• Enables marketers to do both push and
Push and pull
• Banner advt on a site- push marketing ,
Pull “search”- a pull method
• Instant feedback for a campaign
Real • Enables modification, optimization,
improvisation – leading to better ROI
time
 THE 5S – DIGITAL MARKETING OBJECTIVES

Benefit of How it Exampl

digital is es
marketing deliver Achieve 10% of sales
Sell – Grow ed online
sales givingdistribution,
Through wider customers extra Increase
Serve – Add benefits online
promotion, salesor inform conversion rate by
value product development through 5%
online dialogue and feedback.
Grow email coverage to
Speak – Get By tracking them, asking them 50% of current
closer to questions, creating a dialogue, customer database
customers learning about them.
Generate 10% more
Save – Save Through online email communications, sales for same
costs sales and service transactions to communications
reduce staff, print and postage costs. budget
Sizzle – Extend Add two new significant
the brand Through providing a new proposition enhancements to the
online and new experience online while at customer online
the same time appearing familiar. experience
 Call to Action (CTA),
promotes multichannel
selling

SELL : using leads

generated
SERVE- Add
value

SAVE: Drives
awareness, Key user tasks
reduces the
expensive need
brochures –customer
for thro concerns SPEAK
direct mail

SIZZLE :Testimon
ials,
KEY DIGITAL MEDIA CHANNELS – USED FOR COMMUNICATION

•Placing messages on SE– click to website---on

SE typing a specific keyword
•Using SEO/PPC
M •Used for targeting at the moment of intent

• Content distribution, influencer outreach to

increase awareness of the brand– attract visitors–
Online generate backlinks– improves SEO
PR •Maximise favorable mentions of companies/brands
on media sites, networks, blogs.

• creating/managing long term

arrangements to promote on third party sites
Online • includes link building, online
partnerships sponsorship, co-branding , affiliate marketing
KEY DIGITAL MEDIA CHANNELS – USED FOR COMMUNICATION

• Use of online display ads , rich

Interactive media ads, banner ads to
advt generate awareness and
clickthrough to the target site

Opt in
email • use of email marketing
for acquisition to get awareness
or generate a direct response
Social • helps
to get to amplify a message
leads
media through sharing of social
channel networks, viral marketing or WOM
s
Social monitoring looks at specific brand mentions and sends alerts whenever your
brand is mentioned online. It is sometimes referred to as brand monitoring.

Social listening, on the other hand, gives you a complete overview of all online
conversations related to your brand, products, industry, and competitors. This
holistic approach provides valuable insights that can help you make strategic
decisions about your marketing and social media strategy.
 USING THE RACE PLANNING FRAMEWORK TO LINK
BUSINESS OBJECTIVES TO DIGITAL MARKETING TACTICS

2. Reach- building
3. Act : Persuade
1. Plan – working awareness of brand
site
on STP, to achieve on websites/offline
visitors/prospects to
media to build traffic by
goals take the next step
driving visits to
of decision
owned/paid/earned
journey
media

5. Engage- build
4. Convert – a
deep customer
visitor commits
relationships to
to form a
relationship which achieve retention
will goals . Use
generate value advocacy ,recos or
WOM
( sales)
for engagement
Digital Marketing Strategy
Strategic significance of the digital channels relative to other communications channels
that are used to communicate directly with customers at different customer touchpoints.
E.g.: Some organizations, such as low-cost airlines, use virtual channels, such as
websites and email marketing, for delivering services and communicating with
customers, whereas others may follow a strategy that uses a mix of digital and offline
channels – for example, retailers which use face-to-face, telephone, mobile, direct mail
communications and the web.
Customer touchpoints

Communications channels with which companies interact directly with prospects

and customers. Traditional touchpoints include face-to-face (in-store or with
sales representatives), phone and mail. Digital touchpoints include web services,
email and, potentially, mobile phone.

Multichannel marketing strategy: Defines how different marketing channels should

integrate and
support each other in terms of their proposition development and communications
based on their relative merits for the customer and the company.
[Link]
Marketing Communication using digital
media channels
 Key Challenges to Digital Communication
• Complexity- Personalization, testing, and dynamic variation in ads through time –configuring the
campaign although the search engines provide defaults to enable easy setup. This requires specialist
expertise either in-house or at an agency to manage the campaign.
• Responding to competitors- Automated tools known as bid management tools can assist with this – they
will automatically check amounts competitors are paying and then adjust them according to pre-defined
rules.
• Responding to changes in technology and marketing platforms- Google and the other ad- serving
companies innovate to offer better capabilities for their customers. This means that staff managing
campaigns need training to keep up-to-date. Google offers ‘Ads Qualified Professionals’ so that
companies can be certain of a minimum skills level.
• Cost- Although costs can be readily controlled, in competitive categories the costs can be high, exceeding
€10 per click.
• Attention- While online paid search ads are highly targeted and there is arguably little wastage, not
everyone will view paid adverts, indeed there is a phenomenon known as ‘banner blindness’ where web
users ignore online ads (more details In continue). Engaging with the audience with advertising is also a
problem in social networks and other publisher sites, which can lead to a very low rate of people clicking
on ads.
ONLINE REVENUE MODELS
1. Revenue from subscription access to some content : Netflix
2. Revenue from pay per view access : Example: “a webinar on AI”
3. Revenue from display advertising(Cost per Thousand): example
banner ads
4. Revenue from CPC: google ads
5. Sponsorships : HSBC Banks sponsors the money section on
Orange portal
6. Affiliate revenue :commission based
7. Subscriber’s data access for email marketing either from publisher
or some third parties
8. Access to customers for online research: survey monkey
9. Freemium models : for a limited time period

Extra reading :
[Link]
trepreneurs/
ATTRIBUTION MODEL
• A digital attribution model is a set of rules that determines how credit is assigned to touchpoints
in a conversion path.
• Attribution models help marketers understand how their ads perform and how to optimize across
conversion journeys. They can also help advertisers determine which traffic sources are delivering
value
• The goal of attribution is to determine which channels and messages had the greatest impact on
the decision to convert, or take the desired next step.
• Effective attribution enables marketers to reach the right consumer, at the right time, with the
right message – leading to increased conversions and higher marketing ROI.
• [Link]
How to Measure Marketing Attribution?
• Analytics platforms like those available
through Google Analytics can provide
some marketing attribution insights.
Some of the basic attribution models
include:
• First Interaction: The first ad or
content a customer interacts with gets
100% of the credit.
• Last Interaction: The last ad or content
a customer interacts with gets 100% of
the credit.
• Last Non-Direct Click: The last content
the customer interacted with that isn’t
on your website gets 100% of the
credit.
First-Interaction Attribution Model
• Full recognition to the initial interaction or first click a customer makes before completing a
conversion.
• Consider a scenario where you operate a business specializing in eco-friendly and sustainable
clothing. A customer encounters your Google ad when searching for eco-friendly clothing nearby,
clicks on it, explores your website, and departs. Weeks later, they rediscover your brand on
Pinterest, visit your website, and ultimately make a purchase. According to the first-interaction
attribution model, the Google ad receives full credit, representing the entire value of the initial
interaction.
• This model aids marketers in discerning the most effective channels for introducing and generating
awareness of their product or service. It is particularly beneficial for businesses with extended
sales cycles that prioritize building enduring relationships with clients, fostering customer loyalty,
and cultivating brand advocates.
Final-Interaction Attribution Model

• This model serves as the counterpart to the initial-touch attribution model.

• It attributes credit to the ultimate touchpoint that a potential customer engages with just before
completing a conversion.
• Particularly useful for analyzing brief sales cycles characterized by fewer touchpoints.
Linear Attribution Model

• Emphasizes fairness by allocating equal credit to every channel and touchpoint engaged by the
customer throughout the purchasing process.
• In the given scenario, if a customer viewed your ad on Google, discovered your clothing on
Pinterest, encountered a display ad on Instagram weeks later, and subsequently made a purchase,
each of these channels—Google, Pinterest, and Instagram—is attributed an equal share of credit.
Last Non Direct Click
• This model excludes any “direct” interactions that occur immediately before a customer completes a
conversion.
• Eg: Suppose a customer first discovers your client’s website by clicking on a LinkedIn ad or through organic post clicks in your
client’s LinkedIn analytics. They then sign up for your client’s mailing list and start receiving newsletters, clicking on various
interesting links.
• This customer remains engaged with your client’s newsletters for some time. Several weeks later, they
directly visit your client’s website and complete a conversion.
• Rather than attributing the conversion credit to direct traffic (i.e., the customer going straight to your client’s
website), the last non-click attribution model assigns this value to the email marketing touchpoint.
• Thus, this marketing attribution model evaluates which channel prompted a customer to directly visit your
client’s website while ensuring a plague-free attribution process.
Multi-Touch Attribution Models
• Considers every touchpoint encountered during a customer’s conversion journey, offering a
comprehensive perspective that reveals more nuanced patterns and behaviors compared to single-
touch models.
Time Decay Attribution
• It allocates attribution credits in an incremental manner. In this approach, each touchpoint is progressively
assigned greater credit, where the initial touchpoint receives the least credit, and the final touchpoint garners
the highest. This proves to be a valuable method for delineating a customer’s journey to conversion.
• The underlying assumption of this model is that touchpoints in closer proximity to the conversion exert a
more significant influence than those occurring farther away from the conversion.
• Suppose a customer engaged with your company via an advertisement and subsequently through organic
search before making a conversion. In this attribution model, the distribution would indicate 25% for ads and
75% for organic, with the latter being the most recent interaction.
Position-based attribution model
• The position-based attribution model (also called U-shaped attribution) distributes conversion
credit in the following ways:
• A customer's first touchpoint (40%) A customer's last touchpoint before conversion (40%) Any
other brand touchpoints that happened in between the above stages (20%)
 Position-Based Attribution (U-Shaped):
• Credit Assignment: 40% credit goes to the first and last touchpoints,
and the remaining 20% is split between the middle touchpoints.
• Credit Distribution:
• Paid Search Ad: Rs40
• Email Campaign: Rs10
• Social Media Ad: Rs10
• Direct Visit: Rs40
INTERMEDIARY MODELS
Intermediary models are a platform where
buyers and sellers meet, hosted by a third
party. This third party does not have any
ownership over the products or services
but are there just to act as an
“intermediary”.
Example :
1. Trivago-This website compares hotel
prices over a large database and
provides the consumer with a range of
options to choose from.
2. Even Google acts like an intermediary
 Customer’s
information
processing in
the digital world
Hofacker's 5 states of information processing
Professor Charles Hofacker The 5 Stages of Information Processing
• Exposure: Is your content present on the website
originally created the 5 stages of for long enough to be processed?
information processing in his book • Attention: What physical factors are there, such
‘Internet Marketing’ originally as movement and intensity that attract attention
when visitors are on a website?
published in 2000. • Comprehension and perception: This is the
It was intended to help marketers user’s interpretation of the content – how well
do they understand the on-page content?
and advertisers consider how well • Yielding and acceptance: Is the information
their websites and adverts/promo (copy) presented accepted, believed and trusted
by customers?
panels communicated value to
• Retention: What is the user’s interpretation of
website visitors. the content – how well do they understand the
on-page content?
LOYALTY MODELS
1. Quality product, quality service standards and
quality website experience are must to
achieve online loyalty
2. Other traditional loyalty programs would also
work:
rewards/gamification/referrals/partnerships
etc.
COMMUNICATION MODEL: IT’S A WEB
INSTEAD OF LINEAR!
1. Web based communities have a
complex communication process
2. There is a sender followed by a
opinion leader(may be an influencer)
and then the receivers (customers)
3. It will happen in both B2B & B2C
4. Implicit in all these is also permission
based marketing(Barrier?) where
customers may hate unsolicited
SPAM
HOW DO COMPANIES SEARCH FOR RIGHT
INTERMEDIARIES?
1. Specific customer segments
2. Most famous search engines
in the country
3. Media sites
4. Price comparison sites called
aggregators
5. Affiliates
6. Online retailers
CUSTOMER BUYING PROCESS MODEL
1. The process has become two way
2. Customer has the right to
review/hold/delay/expediate the
purchase process
3. Can get online reviews/star
ratings/360degree view/advise
4. Marketers can enhance
marketing efforts through data
analytics
5. Online activities need to be
studied
6. AIDA can still be used in website
design or traffic building
 LADDER OF ENGAGEMENT: MEASURING
THE LEVEL OF INTERESTS

1. The concept of ladder of engagement is

developed by the company Groundwire
(Montgomery and Chester, 2009).
2. The engagement pyramid replicates an
outline that shows supporter
engagement from personal references at
the top of the pyramid and online
activities at the bottom of the pyramid
(Scully, et al. 2012).
AN EXAMPLE - [Link]
DIGITAL CUSTOMER
Introduction
• Buyers purchase products for personal, family, or group
use.

• How do they make purchase decisions?

• Are consumers fundamentally active or passive? Rational
or emotional? How do they make buying decisions?

• Marketers have turned to the work of behavioral

scientists, philosophers, economists, social psychologists,
and others to help them understand consumer buying
behavior.
Lots of questions to probe!!
• What they buy? for whom? From where? at
what price ? What payment mode?
• Why a consumer may buy online/offline?
• Why does he needs a wish list?
• What are the delight factors in online
shopping?
• What are the disappointments with online
purchases?
The perfect match between Consumer & Brand
• Before you can assign goals and metrics, define the stages in the customer
journey for your business using buyer personas. Based on the type of business
you run, the number of stages of the customer journey may vary.
• Based on your buyer personas, you’ll be able to understand the process which
your customers will go through. These steps will help you determine the stages of
your sales funnel.
• By understanding these stages, you’ll be able to improve their user experience
too.
Online buying cycle
• Problem recognition : stimulus that triggers the need even in casual browsing?
• Information search : online information , online communities ,reviews, vbloggers, unboxing ?
• Evaluation of alternatives : save products/wish list/comparison
• Purchase decision: check out; payment; choice of vendors for the same product?
• Post-purchase evaluation : email confirmation; order tracking/overall delivery cycle/feedback
and tracking mechanism
The complex journey- Consumer Decision Journey(CDJ)/ Digital
Purchase Journey
Finding the Touchpoints

• Once you’ve set up the customer journey, you need to find the points where your customers
interact with your brand. These points are called touchpoints and it’s there that you help them
accomplish their goals, and thus, these points define your user experience.
• By mapping these touchpoints, you can monitor the customer journey as well.
• You can also group the touchpoints for each stage of the customer journey to get deeper insights.
Your first touchpoint will, of course, be your website.
Types of online consumers
1. One who know exactly what he/she wants
and nothing is going to get in their way
2. One who has pretty good idea but she/he
would buy if it is presented well-
MOTIVATED
3. One who does not have anything specific
in mind but would buy if you could prompt
them hit the right link
4. One who landed on your website by
mistake and has zero motivation
How the cultural traits can be utilized?
• Email marketing
• Website design
• Images
• Navigation
• Offers
• Payment options
• Trust , security and privacy
The elements may vary with type of product
or activity…
1. Seek product info
2. Surf/browse
3. Look up facts
4. Plan travel
5.
6.
Buy
Download music/games
content
7.
8.
Bank online
Look for jobs
design
9.
10.
Study material
Chat
information
11. Read blogs
Website : Never leave your prospect stranded
anywhere on website!
• Site loading time
• Colour
• Consistency
• Typography-the art of arranging text to
make it legible, clear, and visually appealing
• Graphics
• Images
• Storytelling
• Navigation : headers and filters(persuasion
architecture)
Apple Store Online - Apple (IN)
Nike. Just Do It. Nike IN
 The online value
proposition (OVP) could
be described as
the addition of online
value that a web offers
to its customers or
potential clients to
differentiate itself from
other competitors.
Added value
(online)
• Reviews and recommendations
• Collaborative filtering
• Online customer
service/chatbot
• 360 degree product viewing
• Tailored responses
• Online seminars
• Online demonstrations
• Unboxing
Use of social communities
• Build personal relationships and networks of trust.
• Bring together people with common interests or profiles.
• Engage these specific groups of people.
Depending on the goals you want to serve and the target groups you
want to engage, there are different types of online communities. The
outcomes we strive for when engaging a community aim to fulfill
several marketing and business objectives. Depending on these
objectives, online communities will require more or less resources,
dedication and value.
Persona construct : its creative scientific
storming!
• A persona is a construct, a character fleshed out
from demographic, psychographic and topological
factors
• A buyer persona is a fictional profile that
represents a segment of your target audience
— who they are, what they value, and what they’re
concerned about. It typically includes information
like demographics, attitudes, interests and
behaviors.
• [Link]
• [Link]
• [Link]