Digital Marketing Basics

& Business Models

DR. RISHI DWESAR
 Word Wide Web

The World Wide Web (www, W3) is an information space where documents
and other web resources are identified by URIs (Uniform Resource
Identifier), interlinked by hypertext links, and can be accessed via
the Internet. It has become known simply as the Web. The World Wide

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

Web is the primary tool billions use to interact on the internet, and it has
changed people's lives immeasurably

Source: Wikipedia
 Internet

The Internet is a global system of interconnected computer networks that

use the Internet protocol suite(TCP/IP) to link several billion devices
worldwide. It is a network of networks that consists of millions of private,
public, academic, business, and government networks of local to

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

global scope, linked by a broad array of electronic, wireless, and
optical networking technologies.

Source: Wikipedia
 Three Ways to Access Internet

 Public Internet- The global network that is accessible by anyone, anywhere,

anytime.

 Intranet- A network that runs internally in a corporation but uses internet

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

standards such as HTML and browsers.

 Extranet- Two or more proprietary networks that are joined for the purpose of
sharing information. If two companies, or a company and its suppliers, link
their intranet they would have extranet.

TB: C1P6
 Unique Properties of Internet
Marketing

 Lower Costs
 Trackable, measureable results
 Global Reach

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

 Personalization
 One-to-one Marketing
 More Interesting Campaigns
 Better Conversation Rates
 Twenty-Four-Hour Marketing
 DotCom Boom and DotCom Bust

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

 DotCom Boom

DotCom Boom: The dotcom bubble, also known as the internet

bubble, was a rapid rise in U.S. technology stock equity
valuations fueled by investments in internet-based companies

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

during the bull market in the late 1990s. During the dotcom
bubble, the value of equity markets grew exponentially, with
the technology-dominated Nasdaq index rising from under
1,000 to more than 5,000 between the years 1995 and 2000.
DotCom Bust

DotCom Bust: The burst of the bubble, known as the dot-com crash,
lasted from March, 2000, to October, 2004. During the crash, many
online shopping companies, such as Pets.com, Webvan, and
Boo.com, as well as communication companies, such as Worldcom,

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

NorthPoint Communications and Global Crossing, failed and shut
down. Others, such as Cisco and Qualcomm stock declined by more
than 80%. For some companies, such as eBay and Amazon.com,
stocks declined in value but recovered quickly.
Promise of online

 Disintermediates
 Drive down cost by aligning demand and supply
 Create dramatic sale

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

 Lower cost, price, higher sale profit
 Then why do companies fail?

Dell, Amazon and Lastminute.com vs. Pets.com, Orkut.com, Webvan, boo.com and clickmango.com etc.
 Lessons from the Dot.com Bust…

 Overestimating demand
 Underestimating promotional costs
 Over-reliance on few revenue streams
 Poor business plans with no clear strategic vision

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

 Target markets not adequately defined
 Basic failure to respond to enquiries
 Poor fulfillment strategies
 Short-term objectives to meet demand of VCs
 Being over-ambitious and setting up in several countries at the same time
 Implementation of web site design lacking customer focus
© 2020 Dr. Rishi Dwesar, IBS Hyderabad
 Web 1.0

It is the “readable” phrase of the World Wide Web with flat

data. In Web 1.0, there is only limited interaction between sites
and web users. Web 1.0 is simply an information portal where

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

users passively receive information without being given the
opportunity to post reviews, comments, and feedback. This
generation of web is considered to be started in 2004 and
ended in 2005.
 Web 2.0

It is the “writable” phrase of the World Wide Web with interactive

data. Unlike Web 1.0, Web 2.0 facilitates interaction between web users
and sites, so it allows users to interact more freely with each other. Web
2.0 encourages participation, collaboration, and information sharing.

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

Examples of Web 2.0 applications are Youtube, Wiki, Flickr, Facebook, and
so on. This generation of web started emerging in 2004 and is transitioning
in Web 3.0 as of today.
 Web 3.0

It is the “executable” phrase of Word Wide Web with dynamic applications, interactive services,
and “machine-to-machine” interaction. Web 3.0 is a semantic web which refers to the future. In
Web 3.0, computers can interpret information like humans and intelligently generate and distribute
useful content tailored to the needs of users. One example of Web 3.0 is Tivo, a digital video
recorder. Its recording program can search the web and read what it finds to you based on your

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

preferences. We started transitioning into this generation from 2016 onwards, and it is still emerging.
© 2020 Dr. Rishi Dwesar, IBS Hyderabad
© 2020 Dr. Rishi Dwesar, IBS Hyderabad
Business Models &
Revenue Models in Digital
World

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

DR. RISHI DWESAR
 Business Model

Describes the rationale of how an organization

creates, delivers, and captures value, in economic,
social, cultural or other contexts.

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

© 2020 Dr. Rishi Dwesar, IBS Hyderabad
 Enterprise Level Business Models

 At this level, the company automated many business processes in a unified systems-
demonstrating a significant commitment to e-business. Firms relying heavily on this type of
model includes are companies such as Delll, CNN etc.

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

 Enterprise Level E-Business Models

1. E-Commerce, Direct Selling, 5. Agent Models

Content Sponsorship -Manufacture/Selling
2. Portals Agents
3. Social Networking -Shopping Agent

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

4. Broker Models -Reverse Auctions
- Online Exchange
- Online Auction
 Broad categories

 Brick and Mortar

 Advantages: face to face customer interaction, physical proximity, some services by their very
nature, credit handling, customer experience in shopping
 Several companies do with information only websites
 Possibility of multiple channels and touch points
 Clicks and Mortar

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

 Formerly brick & mortar and now online.
 Online retailers – Toys R Us, Marks and Spencer’s, Next, Walmart
 Reduces seasonality
 Pure Players
 Clicks only company, traditional business – Amazon, eBay, lastminute.com
 Click and content
 Netflix, AOL, Youtube.com
 Revenue Model (Monetization)

It identifies which revenue source to pursue, what value to

offer, how to price the value, and who pays for the value. It is
a key component of a company's business model.

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

Online Business Models

Publishers Infomediary

Platforms Affiliates

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Aggregators Software as
Service (Saas)
Intermediaries
(Commission Platform as a
Agents & Service (PaaS)
Brokerage)
 Who are Publishers?

 Publishers usually dissimilate literature, music, or information — they make

information available to the general public.

 Traditionally, the term refers to the distribution of printed works such as books
(the "book trade") and newspapers. With the advent of digital information

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

systems and the Internet, the scope of publishing has expanded to include
electronic resources such as the electronic versions of books and periodicals, as
well as micropublishing, websites, blogs, video game publishers, and the like.

 Example: TimesofIndia, Wikipedia

 Who are Aggregators?

 Aggregator refers to a web site or computer software that aggregates a

specific type of information from multiple online sources. Common
example includes Review aggregator, Price Aggregators, Search, News
aggregator, Video aggregator etc.

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

Example: Price Dekho, Trivago
 What is a Platform?

 A platform is a business model that creates value by facilitating

exchanges between two or more interdependent groups, usually
consumers and producers.

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

E.g. Amazon, Uber, Swiggy etc.
 What is an Intermediary

 Intermediaries put buyers and sellers together without taking ownership of the
product, service or property. They act as go-betweens. They are not wholesalers or
distributors, which buy products and then resell them. They are usually paid on a
percentage of the total transaction.

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

Example: MakemyTrip, Booking.com etc
 What is Infomediary

The infomediary business model recognizes that there is value in this personal data and the
infomediary seeks to act as a trusted agent, providing the opportunity and means for
clients to monetize and profit from their own information profiles. Many times companies
using an infomediary model provide unbiased information to consumers about different
businesses on the Internet, helping them to choose the right ones.

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

E.g. Practo
Revenue Models & Pricing Strategies

Revenue Models Pricing Strategies

Advertising Free

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Sale of Freemium
Commission Information or
other services
Subscription

Affiliate Fees Pay Per Use

Pricing Models in Digital World

Free

Freemium

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

Pay Per Use

Subscription
Model
 Marketplace Vs Inventory-Led
Retailing Model

 An Online Marketplace is a platform that facilitates transactions (monetary or based in another

form of value) between users. The owner of a marketplace doesn’t own inventory. Instead, a
marketplace owner provides the means for people to find each other and complete a
transaction.

© 2020 Dr. Rishi Dwesar, IBS Hyderabad

 It's Inventory-Led model, a company (E-Retailer) sources directly from brands & sellers and
stock it. There are no multiple sellers selling one product, unlike marketplaces where buyers get
to choose from several merchants. The seller is the ecommerce company and invoice is issued
to the customers on the company's name.
 © 2020 Dr. Rishi Dwesar, IBS Hyderabad
Source: https://www.campaignmonitor.com/resources/knowledge-base/what-are-the-various-types-of-ecommerce-retail-
models/
Thank You