You are on page 1of 8

White Paper Digital Marketing Implementing a brand-focused digital marketing programme ----------------------------------------------------------------------------------------------------------Abstract Todays world has given varied

possibilities and opportunities to marketers to explore new ways of marketing and communication. Digital Marketing stands to be one amongst the top scorer in list of new ways. Organizations seeking to promote their brands and products need to be active online as their customers and prospects already are. This white paper provides a point of view on why and how to implement an effective digital marketing strategy to promote, grow and nurture brands, its implications and what companies can expect as an output. Overview With latest technologies coming each day and replacing the old ones, bells and rings of marketers started ringing few years ago, so as how to leverage new technology to marketing . Companies want focused marketing campaigns delivering maximized results. This way, innovating new marketing strategies and blending them up with marketing has become not only essential but complicated as well. Business models are evolving and are designed according to the needs of new era of marketing and technology. Consumers have literally changed the whole game and industry trends reflect a major shift in marketers move to keep in touch with their customers. With so many different channels companies dont know from where to begin and try to start from somewhere just to avoid not being a part of it. On the other hand there is traditional marketing to confuse companies even more, advertising and promoting brands with traditional marketing is deep rooted and has affected brands in different ways. Although, digital marketing has breached some part of traditional marketing, but for a marketer to understand it, both have to be balanced in the right mix and proportion. For this changing industry digital marketing opens avenues of engaging new customers and audience to a higher level than before. What companies need is an effective digital marketing platform in order to build new and loyal customer base. Digital marketing has become a key driver in reducing costs and increasing marketing potency. This white paper provides an insight on ways to leverage digital marketing and grow brands online.

Digital Marketing Insight Digital Marketing takes advantage of digital medium to create a unified, focused and measurable communications methodology which can help companies in getting their right audience. Using an integrated approach to digital marketing provides a better response rate and building iterative relationships. Digital strategy and campaigns can push forward brands in the consciousness of their audience and lead to a lasting adoption and loyalty towards brands, Moreover, digital medium allows the model to change from being a monologue to a dialogue for audience. Promoting products using digital distribution channels reach customers in a timely and cost effective manner. These channels are varied such as internet, mobile, digital outdoors, and other forms of interactive digital media. Digital marketing uses both push and pull methodologies to access customers. Therefore a right mix has to be decided for both of these. Pull strategy off course is considered to be more engaging and effective as with this strategy users seek for information and information is not forced onto him. Some examples of pull media are websites, blogs, social media sites, audio and video. The digital marketing strategy largely involves high visibility of brand so that the customers may actively seek information related to the brand. On the other hand push digital marketing involves active engagement of a target market through email marketing, sending out marketing collaterals, mobile SMS etc. This strategy is primarily focused on brand promotion and does not seek users permission to send out the marketing message. These strategies are being used more and more by marketers so as to continuously keep customers engaged. In response to the promising flexibility and lower costs which it offers, pioneers in marketing have already started to spend a significant proportion of their marketing budgets on digital marketing. But not all organizations have come forward to adapt to this, some of them are still struggling to understand the very nature of it and the benefits it can offer. As this subject is evolving with time and touching new depths, it becomes must for the organizations to understand the whole process completely irrespective of the constraints like budgetary allocations and setting up proportions for traditional marketing and digital marketing. According to IMA research, 90% of the respondents are satisfied with their results from digital marketing campaigns. However the unsatisfied companies have agreed to the fact that having a shallow understanding of the subject and which channel to use became the root cause for their dissatisfaction. When it comes to growth, most organizations define it by expanding their businesses and getting more space in the pie. They are looking to tap untapped markets and consider Indian Market still have potential to be tapped. Another growth funda they have is eating out on

competitors share and may be overseas expansion. To achieve this growth, digital marketing seems to be an important marketing technique. Travel, tourism, hospitality and airline services have seen most dramatic changes in consumers media patterns and behaviors. This pattern has also changed because of the easily available broadband and internet connectivity and companies are also trying to be in their field of vision on the internet. Brand Focused Digital Marketing For each brand manager it is important to understand that digital marketing has to be brand focused. Any company with any size can create a successful digital marketing strategy with its digital marketing vendor. It is of utmost importance to have a good plan to implement. There are some basic steps which have to be followed in line with your marketing vendor. 1. Define your marketing goals Each promotional activity which is related to your brand has to be strategy driven. Each brand has to be cautious about their brand strategy and defining marketing goals. For creating a brand focused digital marketing campaign, a brand manager has to first take care of what does he want from online marketing programme. It has to be aligned with companys overall strategy. Specific goals will result in measurable results. For example, set a target beforehand about how many people you would like to reach with this programme. Brainstorm and devise a list of specific tactics you will utilize to achieve your marketing goal. 2. Develop specific goals for each objective You will likely have multiple objectives for each goal. So, all your goals have to be SMART. Specific- Quantify your objectives and be specific what your objectives actually are? Measurable- The objective has to be measurable Achievable- Is it realistic to expect to achieve the objective? Reasonable- Are the expectations reasonable? Tentative- Set a time goal for you and your vendor to achieve results? Is it achievable in the campaigns time frame?

3. Sensitizing your teamAnother important aspect is to sensitize your team about branding. Each brand has got a personality and the brand should speak out its message appropriately. So the team should also take this brand personality into consideration in their day to day tasks.

4. Finding Partners Then the next step is to find a partner, a digital marketing vendor who can translate your marketing goals into an online working programme. The digital strategy of the vendor should be aligned with your brands objective. 5. Measurement Tools Once you have devised the strategy for your brand focused digital marketing programme with your vendor, then its the time to implement it, which the vendor will take care of. But as a brand manager it would be your responsibility to measure the progress of this programme. It also has to be decided while the programme is going on which methods are you going to use to keep a track of the measurable results achieved as a result of this programme. 6. Review and Improve The next step in the strategy would be to review the progress on regular intervals with the vendor and refine the programme with time. Both of these should work as teams and should continuously improve and rework the tactics to be followed. Industries and brands have understood the fact that digital marketing can really work for their business and brands. 2011 has been another successful year for Indian digital marketing. This growth can be depicted at varied sectors in our country. E-commerce companies in India took this advantage to its brim with creating a strong social media presence and churning profits. Ecommerce spending grew approximately eight to ten times from 2010 to 2011. Impact on Industries Ecommerce Industry Ecommerce thus has largely been impacted by digital marketing. Flipkart introduced Cash on delivery business model which became truly successful and being followed by others. But its not just Cash on delivery, it also comes with favorable return policy, receipt of online order through emails and SMS and informing customers well before in advance about their order delivery so that they can be ready with cash. Hospitality Industry E-commerce is one of the most vital facets of the Internet to have emerged in recent times. Online booking in the hospitality industry (including hotel/motel, airlines, travel packages, etc.) is increasing rapidly. The hotel industry is using digital marketing to promote their businesses. The hotel industry is certainly well aware of this trend and it is willing to contribute its share to this effort. Every hotel chain has developed its own Web site in which bargain hunters can book their hotel rooms online, other than through the auspices of an Internet travel agency.

Rajdhani, the flagship brand of Mirah Hospitality has a strong presence in the social media space in form of Facebook and Foursquare. In a span of six months, it has built a fan base of 20,000 on Facebook. Not only this, Mirah Hospitality has also brought Book your table on its website where guests can fill in details of their visits and then guest relation team can take an action on that. Fans can also cast poll to make Rajdhani best restaurant in the city. Travel and Tourism Industry Travel and Tourism Industry is also coming on top on the charts for implementing social media and other digital marketing activities many of which can be leveraged without the help of a social media developer. However, with the aid of a specialist, ones opportunities are much wider. The average online consumer visits 20 sites before making a travel purchase out of which 66% are influenced by user reviews and 90% of the major travel brands report Facebook as being the top destination after visiting their site. Social media already influences $2 billion on online travel purchases, according to a recent Juniper Research Report, and is set to rise significantly in a $100B online. Applications and pages that have enjoyed mainstream success range from bookings (Facebook.com/trumpchicago) photo and video galleries showcasing accommodation and tours, Youtube aggregation (Facebook.com/TourismFijiAustralia), competitions raising brand awareness, discussion threads, newsfeed subscriptions and more. Retail Industry Another industry which has been benefited by Digital Marketing is retail. Most of the retailers can be seen creating digitalized experiences with their physical stores. Retailers are delivering consistent brand experience through use of digital advertising, online communities, consumer devices, search, and Web-based content. These help to leverage brand equity and reinforce brand consistency across all channels, and to attract client in new ways that harness the power of social networks. According to one of the latest report Digital marketing in retail 2012: Integrating voice of customers across channels the whole confusion is about traditional marketing methods. Marketers facing two sided pressure, one is weakening in the effectiveness of traditional marketing methods (41%) and rising costs associated with traditional marketing strategies (33%).This talks about large drop in the print marketing, advertising, and publishing environment and also customers turning their heads to digital channels for media consumption, and marketing executives are following suit. As a result, 75% of leading retailers are expanding their use of digital channels for marketing programs. According to KPMG report, Digital marketing has got huge impact on retail industry, because of which retailers are designing their strategies around the digital sphere. Some of these

strategies include- Implementing online shopping option to their websites as 59 percent of survey participants believe it is the most impactful digital marketing channel. Following behind are social media sites like Facebook and Twitter (58 percent), which have an edge on email marketing campaigns (49 percent). Mobile shopping (36 percent), mobile promotions (28 percent), and mobile payments (21 percent) Another major development in this context which across the industries has been followed is marketing through mobiles. Mobile penetration is high through all this time. More and more smartphones are coming in and users are getting adapted to them. With internet bandwidth providing adequate browsing capabilities to users, companies are getting their mobile sites in place. They have also started looking up to options like location based technology, offering free mobile downloadable apps and creating microsites for mobiles. With recent technological advancements it is now possible for the brands to showcase their products in an interactive manner. At its NEO Label store-front in Nurnberg, Adidas and TBWA\Helsinki took the help of advanced technology by placing an interactive digital window concept which can connect to the consumers smartphone without the need of using apps or scanning QR codes. The interactive interface enables customers to find out brands fashion label collection and experiment with various combinations on the mannequin. Automobile Industry Indias passenger vehicle sales is expected to grow from 14 to 16% from 2012- 2021 with production of 9 to 10 million units annually. Completion is increasing day by day for vehicle manufacturers; therefore companies have to adapt different strategies to promote sales. Digital marketing has become one amongst their choices. Original Equipment Manufacturers are expected to follow digital marketing practices and increase their spend on it with introducing online tools like live launch webcasts and online customer service, providing live chat forums etc. with a focus on innovative promotion tools such as live launch webcasts and online customer service among others. In rural markets, Indian social media users growing at 100% annually; over 38 million users on Facebook third largest globally; 16 million users on Twitter eighth largest globally; over 20 million smartphone sales annually. Consumers are sharing uncensored feedback and information of products and services via social media, according to Ernst and Young reports Any automobile players are joining this way, because they understand the scope of it. Maruti is one amongst them. Maruti has also applied digital marketing to its business and according to reports over lacs of cars has been sold last year because of the digital marketing initiatives. Similarly Tata Motors reported around 40,000 new online bookings for Nano. Other auto makers are also witnessing a similar response on their digital platforms.

FMCG Industry Consumers use digital to research purchases, from home and now whilst in store on portable devices (Smartphone, iPad). Manage consumer reviews on social media and review sites with a light touch (recognize any negative feedback, with a conciliatory response). Ensure product details are up to date. Global brands including Unilever and P&G are experimenting with Facebook commerce. Companies like PepsiCo are also targeting Digital Marketing to engage customers. PepsiCo does not sell online, but they have managed to engage people with their digital marketing campaigns. For example, PepsiCo launched Gatorades Mission Control and PepsiCo 10, a programme in which company identifies and partners with startup organizations so as to be tech savvy. PepsiCo has maintained an internal excellence centre for digital practices to work out on digital marketing strategies. Agricultural Sector ITC initiative, e-chaupal is not new to us, e-chaupal is the largest technology based initivative to help rural farmers to get the best prices for their crops. It implements greater exchange of information and offers a structured market to farmers. Agricultural sector is one of the most important sectors for India as it constitutes 23% of GDP. Therefore it has to be brought up using various ways. Internet centres are set up under the eChoupal project where the rural farmers easily gather real-time information via internet. It also diffuses information in different languages for the ease of farmers. Grey Areas in Digital Marketing The advantages of digital marketing are numerous but it comes with some cons as well. If we look at the other side of it, digital marketing has got some challenges to it. From a brands point of view, a digital marketing programme should generate leads, should fit in his time frame, should be cost effective and should deliver measurable results. An ideal digital marketing programme will do all this for you. The challenges attached to it are 1. The programme will take some time to take off and nothing can happen overnight. The brand manager and the vendor should decide the time frame and the length of the programme. 2. Another problem that comes with digital marketing is that it is a vast field and offers various mediums to a brand to be promoted and therefore it becomes difficult for the brand manager to decide where he wants to promote his brand. Although this decision can be mutually taken by vendor and the brand but at the same time it is equally important for the brand manager to understand different mediums of digital marketing, how many to choose. 3. It is very easy for the brand manager and the vendor to lose focus during the digital marketing programme and just getting tempted towards say more likes and followers on social media networks which might not get you actual prospects. Therefore, the

digital marketing programme has to always be in synchronization with the marketing objectives and the expected outcomes. 4. Another major hurdle is digital marketing world is dynamic and each day we see new changes happening around us. Therefore there is no surety of social media platforms, for how long these platforms are existent.

This white paper has been created by Indiamap Consulting and Indiamap Consulting owns the right for this content. Indiamap Consulting is a pure-play digital marketing company, we focus our expertise on methods and technologies that can help us grow brands and generate sales for the brands. We provide digital marketing solutions to brands. For more insights on Digital Marketing, please feel free to contact us and visit our website at www.indiamapcosnulting.com and can also visit our blog at www.indiamapconsulting.blogspot.in Annexure Retail Impact Page

http://www.neolane.com/usa/resources/industry-news/articles/digital-marketingchannels-highly-important-to-retail-marketers
Automobile Impact Ernst and Young Report http://www.ey.com/IN/en/Newsroom/News-releases/Indian-auto-industry-to-witness-majorchanges-in-a-decade-of-growth---opportunities Maruti Digital Marketing http://articles.economictimes.indiatimes.com/2009-05-14/news/28410741_1_digitalmarketing-honda-siel-cars-car-sales FMCG Page http://www.brightblueday.co.uk/bringing-fmcg-marketers-brand-routes-into-the-digitalsphere