Swarnabha Shankar Ray 10BM60092

Vinod Gupta School of Management Indian Institute of Technology Kharagpur




Introducing the term Digital Marketing


Differences between Digital and traditional Marketing


Differences between Digital and Internet Marketing


Understanding of Digital Marketing Concept in India


Digital Marketing Strategies


Future: How is Digital Marketing better






"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.


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


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.



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 farreaching 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.


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 standalone 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 Internet.

Understanding of the Digital Marketing Concept:

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 both) that are released episodically and are often downloaded through web syndication.

Voice Broadcast Voice E-mails Really Simple Syndication (RSS) Feeds

banner ads on websites Outdoor Digital Displays

Cell Phone(sms)



Digital Marketing 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


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 o Intangible products are service based products like the tourism industry&Hotel Industry 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 o o o o market share competition material costs product identity 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 o o advertising public relations 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.

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.

http://en.wikipedia.org/wiki/Digital_marketing www.fastfreenews.com 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

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