UNIT 1 OVERVIEW OF DIGITAL MARKETING

INTRODUCTION
MEANING :

Digital marketing is the marketing of products or services using digital technologies, mainly on
the Internet, but also including mobile phones, display advertising,and any other digital
medium. Digital marketing channels are systems based on the internet that can create, accelerate,
and transmit product value from producer to the terminal consumer by digital networks.

DEFINITION :
Digital marketing is 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 etcetera (Kotler and Armstrong, 2009).

It facilitates many-to-many communications due to its high level of connectivity and is usually
executed to promote products or services in a timely, relevant, personal and cost-effective manner
(Bains et al., 2011).

NEED AND IMPORTANCE OF DIGITAL MARKETING :

1. Reaches People Where They Spend Their Time & Money

In 2019, the average Internet user has at least 7 social media accounts. That’s up from 3 just 5
years ago.

97% of US adults under 65 are on social media at least once a month. The vast majority are on it
every day. Social media is strongly preferred as a means of customer care.

2. Levels the Playing Field for Small Business

You’ve seen it happen before. A huge company like Walmart comes to town and wipes out 100’s
of local specialty shops. Starbucks rolls in and mom and pop coffee and bagel shops close down.

3. More Targeted

When you run a magazine ad, for example, you definitely do some targeting. You know if your
target audience reads that publication. You have some control over placement and size. You
control the message within certain publisher guidelines.that ad may reach 1 million plus readers.
4. Can Be Hyper-Personalized

We’ve only just begun to discuss the importance of digital marketing in regards to targeting. With
email marketing, yet another important part of digital marketing, you can target almost down to
the individual level.

We call this “segmentation“. In some cases, you actually can get to the individual level. Marketers
call this “personalization“.

5. More Advanced Analytics

What do you really know about how a TV ad performed? You can determine best times for the ad
to air and best frequency if you do some testing. You might create a focus group to drill down on
the data. But generally, you only know its reach according to the agency and whether it increased
buzz, sales, or met a similar marketing goal

6. Easy to Scale & Adapt

As with any marketing, there’s initial investment required to get traffic flowing. But
the importance of digital marketing to small businesses becomes very clear when you see how
easy it is to scale and adapt as your business grows.

For example, with social media campaigns, display ads and search ads you can choose a daily
budget. You know exactly how much that campaign will cost you

7. Best ROI

Email marketing has the highest ROI of any marketing method…period. It can get a whopping
3800% return. That’s $38 in revenue for every $1 you spend. About 20% of companies are seeing
an ROI of $70 to $1 spent

8. Integrates Marketing with Mobile Technology

According to research by IBM, mobile transactions are increasing at the lightning fast speed of
35% year over year. But it’s not just the actual buying and selling happening on mobile.

People are increasingly using their mobile phones as a kind of augmented reality layered over a
business. They’re looking at reviews and product information while in your store. They may be
ordering online or communicating with customer care en route.
A selfie they take in your store becomes a promotional opportunity for you. They may write a
review for you before they even leave your office.

9. How People Prefer that Businesses Reach Them

People are tired of traditional advertising. They learned that they have a choice. 20% of 16 to 34
year olds use an ad blocker online. Overwhelmingly, people flee websites that pop up annoying
invites and ads when they first land on the page.

They’re choosing to consume media that doesn’t force them to sit through commercials.

It seems cliche. But people want respect. They want someone to provide them with information
that helps them make informed decisions. They want to buy from brands that value what they
value. They want you to be part of their conversations.

SCOPE OF DIGITAL MARKETING :

Digital marketing is the key to hold an in-demand profession. Apart from these, there is a broad
scope of digital marketing as promoting and branding business through digital media is the fastest
and reliable mode of marketing to target mass audience.

In recent times, the most sought-after career opportunity is digital marketing. Statistics show that
digital marketing industry is booming worldwide - offering 8lakhs jobs in the very first quarter of
2017. Naukri.com, India’s largest job portal, announced and advertised for as many as 13000 job
opportunities for digital marketing professionals through its portal in the first quarter of 2018. The
USA itself has generated 49000 qualitative digital marketing jobs in the year gone by (2017).
However, 91% of top employers consider certification as key hiring criteria, while 48% are willing
to offer a higher salary to certified candidates. So, internet marketing training proves highly
rewarding for you during the hiring process.

Supporting digitization, the Prime Minister of India has come up with the idea of digital India.
And it acts as a promotional campaign for digital marketing resulting in many more job
opportunities for youth to a great extent.

Massive job opportunity

Being reliable, eco-friendly, reachable, influential, user engagement and measurable digital
marketing is the magic tool for brands and businesses. As more and more entities join the online
bandwagon for a wider market-reach, the job opportunities in digital marketing are ever-growing.
Unlike other sectors of employment, this arena is an all-season field. It's too inviting to turn a blind
eye, folks.!

Flexibility : Digital marketing industry celebrates a very open culture. With skills and tools
knowledge advancement, empiricism holds a big portion and that pushes you up for being the next
level of the marketer. There is umpteen number of sub-branches within the digital marketing field
such as SEO analyst, Social media marketing executive, online reputation management executive,
digital marketing manager, PPC specialist and so on. And so is the remuneration package range.

Higher paid profile

Digital marketing profession is one of the highest paid job profiles. Google says, the national
average salary of the senior digital marketing manager is $95,415 and that in India is Rs 447, 346.
Additionally, the average pay tends to defy the principle of gravitation – ever on the rise – by at
least 30% YOY.

Digital Marketing Certification

60% of professionals consider that certification led them to a new job. Hence it is ideal to join
a digital marketing institute to get certified and grasp marketing tools and techniques of experts.

DIFFERENCE BETWEEN DIGITAL MARKETING AND TRADITIONAL

MARKETING:

Digital Marketing vs Traditional Marketing: What is Traditional?

Traditional marketing is a type of marketing that is hard to ignore and includes the traditional ads
we encounter on a daily basis. Many of the common and most tried offline marketing tactics come
under the following five major categories:

• Print (magazines, newspapers, etc.)

• Broadcast (TV, radio, etc.)
• Direct Mail (catalogues, postcards, etc.)
• Telephone (telemarketing, sms marketing, etc.)
• Outdoor (billboards, fliers, etc.)

Traditional marketing may have evolved over the past few decades, but the fundamental aspects
remain the same. The selling techniques that we use today heavily rely on the infamous four P’s
of marketing: product, price, place, and promotion.

Every successful business knows how integral it is to create a proper sales funnel. By leveraging
the four P’s of marketing, a business can actually lead its prospects and customers through any
sales funnel and see favorable results.

Let’s take a brief look at each of the 4 P’s that power every form of marketing technique:
 • Product: Effective marketing starts with a good understanding of your own product.
Which could be an intangible service or type of a good that fulfills the demand of a target
market.
• Price: The overall cost of the product depends on how well you know it. Price is always
the determining factor when it comes to things like supply, demand, profit margin, etc.

• Promotion: How you get the word out about your product and market it to your target
audience is promotion. Any method that helps you promote the product and help it gain
more visibility/exposure comes under promotion — whether it is advertising on a billboard
or setting up an ad campaign on Facebook.
• Place: Traditional marketing heavily relies on getting your product in front of your target
audience at the right time and place. Which also means pricing it right. In the marketing
world, placement plays a crucial role. Because when a product is placed in an ideal location,
the chances of converting prospects to customers or clients increase manifold.

On the surface, digital marketing may look different than traditional marketing in a big way as it
is all about the fourth P: promotion. However, the fact of the matter is, digital marketing is highly
effective because it does not ignore any of the four Ps of marketing. It rather uses each one of them
in a unique manner, and sometimes even better than traditional marketing.

Digital Marketing vs Traditional Marketing: What is Digital?

Digital marketing or online marketing refers to the marketed related work that a business does
through the Internet or an electronic device such as a mobile phone. Any business (regardless of
its size) can leverage digital marketing to reach out to their target market, connect with prospects
and convert more of them into customers/clients. Everything from search engine marketing to
Facebook marketing comes under digital marketing. And we offer an array of digital marketing
services here at LYFE. Feel free to check them out and see which ones might be best for your
Business

The reason why digital marketing is crucial for a business today is because the Internet is becoming
one of the most used tools. More and more people are logging on the web to carry out their day to
day activities, which includes purchasing goods and services.

If you look at the past decade you’ll see that online marketing has grown exponentially. So when
it comes to digital marketing vs traditional marketing, it’s clear that that digital as a definite edge.

Successful marketing requires a business to connect to prospects and customers in the best possible
way, so that their is an actual return on the investment. Given the fact that a large majority of
people (especially the Millenials) are spending their time on the Internet, it makes sense for you,
as a business, to connect to them on it.

As technology grows and the new digital ideas are brought to life, the digital marketing world
grows with it. One of the reasons why it continues to deliver results is because it is a form of
inbound marketing. Which means, instead of you going out there to find people, they find you.
Whether it is running an advertisement on Google or creating marketing related content for your
blog, it’s all about attracting your target audience and spreading awareness.

The idea is to get out there and gain exposure. Because the more people know about your website,
your brand and the products you sell, the more familiar they become with your agenda. Which
eventually leads to close relationships or bonding that is developed on the basis of trust.

Being a business, the Internet offers you a way to build an authority in your niche and grow your
online presence like never before.

So basically that was a detailed distinguish between traditional marketing and modern digital
marketing as well saw above using the pictures we can easily understand the difference there and
how it impacts the markets at a global level.