Professional Certificate in

Marketing
(PCM)

Recommended Study Text

Part Three
Marketing Planning and Control and Digital Marketing

Chapter 11 Marketing Planning & Control

Chapter 12 Digital Marketing

PCM - Preliminary Certificate in Marketing, Study Text, Sri Lanka Institute of Marketing 135
Chapter 11
Marketing Planning and Control
“The overall purpose of marketing planning and its principal focus is the
identification and creation of sustainable competitive advantage”
(Malcolm McDonald)

1. THE NATURE AND IMPORTANCE OF PLANNING

“If you don’t know where you’re going, any road will get you there.” The point of this
statement is that all organisations need both general and specific plans to be successful.
Management first should decide what it intends to accomplish as a total organisation and
develop plans to achieve these results. Based on this overall plan, each division of the
organisation should determine what its own plan will be.

If planning is so important, exactly what is it? Quite simply, planning is deciding now what
we are going to do later, including how and when we are going to do it. Without a plan, we
cannot get things effectively and efficiently, because we don’t know what needs to be done
or how to do it. Planning provides specific direction, activities and timetables, and it creates
pathways to achieving a competitive advantage.

1.1 WHAT IS CORPORATE PLANNING?

Corporate planning is an important and vital business process. Under this, the organization's
top management sits down to formulate policies and strategies and communicate them
downward for implementation.
It is the process of drawing up detailed action plans to achieve an organization's goals and
objectives, taking into account the resources of the organization and the environment
within which it operates.
It provides clearly defined corporate objectives for the organisation as a whole, which can
then be translated down through the hierarchy of each of the business functions, inclusive
of marketing, finance, human resources, operations etc.

Corporate Objectives – Corporate objectives are statements of intent that provide the
basic direction for the overall activities of an organization in pursuit of its mission.

Corporate objectives are those that relate to the business as a whole. They are usually
set by the top management of the business and they provide the focus for setting more
detailed objectives for the main functional activities of the business.

Mission Statement – A mission statement or purpose statement represents the broad,

long term tasks that the organisation wants to accomplish through the conduct of its
business. Thus, a mission statement provides the organisation a clear purpose and
direction, keeping on track and preventing it from drifting. A mission statement answers
the question, "Why do we exist?"

REFERENCE FOR THE PCM II 2021 ONLY

2. WHAT IS MARKETING PLANNING?

Any Marketing Manager will readily agree that a sensible way to manage marketing and
sales functions is to find a systematic way of identifying a range of options, to choose one of
them, then to schedule and cost out what has to be done to achieve the objectives.

Marketing planning is simply a logical sequence and a series of activities leading

to the setting of marketing objectives and the formulation of plans to achieve
them. (Malcolm McDonald)

3. MARKETING PLANNING PROCESS

The marketing planning process can be expressed as a series of questions as shown in the
Figure 11.1. It is a continuous process that takes place within the organisation. As shown
below the marketing planning process consists of five stages:

Figure 11.1 Marketing Planning Process

Where are
we now?
▪ Situational
Analysis

How can we Where do we

ensure want to be?
arrival? ▪ Marketing
▪ Evaluation & Objectives
Control

Which way How might

is best? we get
▪ Tactics
there?
▪ Action Plan Marketing
▪ Budgets Strategies

REFERENCE FOR THE PCM II 2021 ONLY

3.1 Stage 1: Where are we now?

Situational Analysis or the Current Situation

The first stage in the marketing planning process involves the marketer in assessing the
current situation which faces the organisation. The process of identifying the organisation’s
current situation is known as the audit phase of the marketing planning process.
❑ Marketing Audit
❑ SWOT Analysis

Marketing Audit

Marketing audit is a comprehensive, systematic, independent and periodic

examination process of a company's marketing activities.

▪ It is a comprehensive process because it covers all (entire) marketing activities of an

organisation.
▪ It is a systematic process since marketing audit is an orderly examination of all the
marketing activities and strictly follows all the required steps or specified procedures
properly.
▪ It is an independent process usually conducted by an external consultant. Generally,
the best audits come from outside consultants who have the necessary objectivity,
broad experience with some familiarity with the industry being audited. This would
ensure that the audit is unbiased.
▪ It is a periodic process because; it should be conducted continuously and on a regular
basis. In order to be effective, marketing audits should be done on a regular basis.
They should not wait for a crisis before they conduct one. By that time, it may already
be too late, as the damage to the firm and may be irreparable. A periodic audit will
benefit organisations in good health as well as those in trouble.

Marketing audit is very beneficial for the success and survival of an organisation. It
examines, “How well the marketing department of a company works or functions.” It
compares the marketing plans of an organisation with its actual marketing performance. It
finds out the strengths and weaknesses of an organisation and it suggests measures to
remove the weaknesses. It guides an organisation to adapt its marketing strategies with the
changing marketing environment. It also helps the organisation to update its marketing
strategies and control its marketing expenses. In short, an organisation cannot survive
without conducting a proper marketing audit and is an excellent starting point for objective
setting.

An organisation has to conduct two types of audits;

a) Internal Audit or Appraisal
b) External Audit or Appraisal

REFERENCE FOR THE PCM II 2021 ONLY

a) Internal Audit
Internal audit is concerned about the organisations functions. These are the controllable
variables where the organisation has the ability to control its functions. The purpose of this
audit is to assess the organisation’s internal capabilities and resources as they relate to
the external environment. This is usually referred to as a “Strengths and Weaknesses”
assessment. The key areas or factors to be considered are;
Marketing
Financial
Managerial
Production
New Product Development
Technology
Human Resources
Systems and Controls

b) External Audit
By conducting an external audit which involves analyzing the external situation facing the
organisation will lead to the identification of “Opportunities and Threats”. The external
audit will consists of the following:

PESTEEL Factors: (already discussed in Chapter 2)

o Political Environment
o Economic Environment
o Social and Cultural Environment
o Technological Environment
o Ecological Environment
o Ethical Environment
o Legal Environment

Competitor Analysis:
o Who are the major competitors: actual and potential
o Their objectives and strategies
o Their strengths and weaknesses
o Market share
o Entry barriers

Market Analysis:
o Market size growth rates, trends and developments
o Customers: who are they, their choice criteria, how, when, where do they buy

REFERENCE FOR THE PCM II 2021 ONLY

 SWOT ANALYSIS
The commonest mechanism for structuring audit information to provide a critical analysis is
the SWOT analysis. Thus, out of the many audit tools available to a marketer, the SWOT
analysis is one of the most commonly used and well-accepted audit tools in the marketing
fraternity.
SWOT analysis and these initial letters stands for:

Strengths A particular skill or distinctive competence which the organisation possesses

Weaknesses Any aspect of the organisation which may hinder the achievement of its
objectives
Opportunity Any external feature that creates a favorable situation to the organisation
Threats Any external feature which will present problems and may hinder the
achievement of an organisation's objectives.

The two major strategic options from a SWOT Analysis are shown in figure 11.2.

Matching: Matching the strengths of the organisation to the opportunities presented by

the market.

Conversion: Conversion of weaknesses into strengths in order to take advantage of

some particular opportunity, or converting threats into opportunities which can then be
matched by existing strengths.

Figure 11.2 Strategic options of SWOT

Strengths Weaknesses

Internal Audit
(Controllable) M
A
Conversion
T
C
H
I
N
G
Opportunities Threats

External Audit Conversion

(Uncontrollable)

REFERENCE FOR THE PCM II 2021 ONLY

3.2 Stage 2: Where do we want to be?
Marketing Objectives
The marketing audit and the SWOT analysis enable the marketer to determine the overall
marketing objectives of the organisation.

Marketing Objective is a clear statement of what the organisation is going to achieve

through its marketing activities

It specifies the results expected from its marketing efforts. An organisation, without
determining its marketing objectives can be compared to a ship without a compass; it can
move, but it lacks a clear sense of direction.

More specifically, among the more important functions that objectives serve in an
organisation are;

Objectives provide for sense of purpose in an organisation. Without objectives,

organisations lack the means of focus.

Objectives help an organisation to achieve consistency between the various levels of

decision-making, and between different functions.

Objectives help to stimulate effort; they provide a basis for motivating individuals to
achieve them

Finally, objectives provide the basis for control in an organisation. Unless we know
precisely what is required, it is difficult, if not impossible, to know the extent to which
we have achieved it.
It is important that marketing objectives must conform to the SMART criteria.

SMART In what sense an objective SMART?

Specific Stating exactly what has to be achieved – descriptive and provides clarity.
Measurable Quantified, so that you could measure and monitor the results.
Aspirational Should be challenging but achievable, and should also motivate staff.
Relevant The objective must relate to the corporate objectives of the organisation.
Time Frame Deadlines and time frames for achieving the objectives must be stated.

3.3 Stage 3: How Might We Get There?

Marketing Strategies
A Marketing strategy is a broad plan of action by which an organisation intends to achieve
its marketing objectives. Thus, marketing strategy cannot be formulated in isolation. It has
to reflect the marketing objectives of the organisation.

REFERENCE FOR THE PCM II 2021 ONLY

There are number of strategies available to a marketer:

Target Marketing Strategies – Segmentation, Targeting and Positioning

Marketing Mix Strategies – Tactical Planning strategies
Growth Strategies – Ansoff’s Matrix

Target Marketing Strategies

Segmenting the market and selecting the target market and target marketing strategies and
choosing a suggested positioning strategy has already been discussed in Chapter 6.

Marketing Mix Strategies

Based on the type of segment and the positioning strategy, the marketer will now proceed
in developing the overall marketing mix strategies appropriate for each of the segments
selected to in order to achieve the objectives.

Growth Strategies: Ansoff’s Product-Market expansion grid

One useful device for identifying growth opportunities is the product/market expansion grid
developed by Ansoff and gives the marketer four strategic options to achieve sales growth.
Figure 11.3. The four strategic options are:

o Market Penetration

This is a strategy of selling more of the existing products in existing markets. This is the least
risky approach to growing sales. There are essentially three approaches:

Firstly, you can encourage your current customers to buy more products by offering
price incentives, promotional offers, gifts etc. For example, Horlicks offered a jar with
every bottle, Milo offers range of gifts, free recipe books with Milkmaid etc.

Secondly, you should try to gain your competitor’s customers by developing

competitive advantage.

Thirdly, you can try to convert non-users to users. For example strategy used by
Nestles in promoting its coconut milk powder.

REFERENCE FOR THE PCM II 2021 ONLY

 Figure 11.3 Ansoff’s Growth Matrix

Product
Present New
M
Present Market Penetration Product Development
A
R
K
E New Market development Diversification
T

o Market Development
This involves expanding into new markets with existing products thereby the organisation
seeks increased sales.
Again, there are essentially three possible options;

Firstly, you could consider new market segments.

Secondly, identify new geographic markets through regional, national or international

expansion.

Thirdly, new distribution channels could be sought, such as direct mail, vending
machines and web sites or advertising in other media.

o Product Development
This approach requires the organisation to develop new products to appeal to existing
markets. Options are;

The company can develop new product features or content.

The company also can create different quality versions of the product.

The company can develop additional models and sizes.

o Diversification
The company seeks increased sales by developing new products for new markets and is the
most risky strategy to employ because the organisation is moving into areas it has little or
no experience. For example Nawaloka group of companies diversified from timber business
to hospitals. In addition, Hemas Holdings, John Keells Holdings, Softlogic Group are
other examples who are in the process of diversifying their operations successfully in Sri
Lanka.

REFERENCE FOR THE PCM II 2021 ONLY

3.4 Stage 4: Which Way is Best?
Marketing tactics, Sales forecasting, Action plan and Marketing Budgets

Marketing Tactics

A tactic is a means by which a strategy is implemented. A tactic is more specific, detailed

course of action than a strategy. Having determined the marketing strategy, the next stage
of the marketing planning process is developing the more detailed marketing tactics in
order to implement the strategy.

Sales Forecasting
Forecasting would refer to how the overall sales volume planned at the objective stage is
forecasted into different months, or quarterly or different regions or different segments.
These estimates can be based on the marketing objectives and the planned marketing
tactics. The sales forecast (combined with marketing objectives) thus becomes the basis for
planning throughout the organisation.

Action Plan – Schedules and Implementation

Plans are nothing or useless unless they degenerate into action. Implementation is the step
and activities that are required to bring plans to life. Implementation involves the detailed
scheduling for planning activities and involves staffing, detailed timetables, and so on in
order to accomplish marketing objectives. The action plan spells out how the marketing
strategies will be turned into specific action programs that answers the following questions:
What has to be done? Who will do it? When will it be done?

Marketing Budgets
The organisation must specify and schedule all financial and other resource requirements,
otherwise managers might not be able to accomplish the tasks planned. This is partly about
allocating costs for all expenditures such as sales force, communications campaigns,
marketing research, dealer support, etc, and partly about forecasting expected revenues
from forecasted sales. Thus, we could determine the targeted profits anticipated.

3.5 Stage 5: How Can We Ensure Arrival?

Evaluation and Control
Evaluation and Control are both essential if managers are to ensure that the plans are being
implemented properly and that the outcomes are those expected. Planning sets forth what
should be done. Evaluation identifies what really was done while control involves evaluating
the results and taking corrective actions quickly to ensure that deviations are minimized or
eliminated.

REFERENCE FOR THE PCM II 2021 ONLY

c) Why Marketing Control is Important?

• To ensure that the planned targets are achieved

• Provides early warnings: deviations if any are detected quickly
• Allows corrective measures to be taken immediately
• Is proactive rather than reactive.

d) Marketing Control Process Model

The marketing control process model involves four steps as shown in the Figure 11.4.

Figure 11.4 The Control Process Model

Expected Performance
based on Objectives
What do we want to achieve?

Goal Setting

Measure actual against

Analyse Deviations expected Performance

What should we do about it? What is happening?

Variance Analysis
Corrective Action

Evaluate Performance

Why is it happening?

Performance Diagnosis

What do we want to achieve?

The organisation first sets marketing objectives. This is what was decided at stage 2.
These are what the organisations want to achieve. Planning and controlling are closely
linked because plans include statements about what is to be accomplished. For
purposes of control, these statements function as expected performance.

What is happening?

Secondly, the measurement of actual performance against the performance standards is

important in order to identify if there any variations or how much of variations exists?

REFERENCE FOR THE PCM II 2021 ONLY

 Why is it happening?

Thirdly the management determines the causes of any differences if any, between the
actual performance and expected performance.

What should we do about it?

Finally, management takes the necessary corrective action to close the gaps between its
actual and expected performance. This may require changing the action programs or
even changing the objectives. If any deviations are not detected, then the control
process could continue to monitor activities further.

c) Types of Control in Marketing

Table 11.1, lists the major types of control used in marketing:

Type of control Purpose of control Approaches

Annual-plan To examine whether the ▪ Market share Analysis
control planned results are being ▪ Sales-to expense ratio
achieved ▪ Sales analysis
▪ Financial analysis
Profitability To examine where the Profitability by:
control organisation is making & ▪ Product
losing money ▪ Territory
▪ Customer/segment
▪ Trade channel
▪ Analysis of costs & margins
Efficiency To evaluate & improve the Efficiency of:
control spending efficiency and ▪ Sales force
impact of marketing ▪ Advertising
expenditures ▪ Sales promotion
▪ Distribution
Customer To evaluate level of ▪ Customer surveys
satisfaction customer satisfaction ▪ Customer complaints
▪ Sales force reports
▪ Customer panels
Strategic To examine whether the ▪ Marketing effectiveness
control organisation is pursuing its rating reviews
best opportunities with ▪ Marketing audit
respect to markets, products ▪ Marketing excellence
and channels
review

REFERENCE FOR THE PCM II 2021 ONLY

4. THE MARKETING PLAN: THE OUTCOME OF THE MARKETING PLANNING
PROCESS
The Marketing Plan is the written document or blueprint, is the outcome of the marketing
planning process, which indicates how the organisation plans to achieve its marketing
objectives. It is effectively a business proposition and it contains tactical guidelines for the
marketing programs and financial allocations over the planning period. The acid test of any
marketing plan presentation is to ask you, ‘Would I put my own life’s savings into the plan
presented?’ ‘If the answer is ‘No’ then further work is needed to refine the ideas.

4.1 THE KEY CONTENTS OF A MARKETING PLAN

The key contents of a typical marketing plan are as follows:

Executive or Management Summary

An executive summary, sometimes also known as a management summary, presents a
brief summary of the main goals and recommendations of the proposed plan for
management review, helping the top management to identify the plan’s major points
quickly.

Current Marketing situation

Based on the internal and external audit presents relevant background data on the
company, target market, market trends, marketing mix variables, and macro and micro
environment factors and also will often include information on customer needs and
buying behaviour.

SWOT Analysis
This section of the plan encompasses the internal marketing audit encompassing
organisation’s strengths and weaknesses and external marketing audit encompassing the
PESTEEL factors, market analysis and competitor analysis which will give rise to
opportunities and threats.

Marketing Objectives
This element of the plan details broad sets of objectives that the organisation intends to
achieve. Remember, these objectives will stem not only from the analysis encompassed in
the first sections of the plan but also should reflect corporate objectives. Objectives
should be stated, in SMART terms.

Marketing Strategies
The marketing strategies element of the plan encompasses decisions regarding core
target markets, decisions regarding product market expansion plans (the Ansoff matrix),
the basis for competing that is the competitive advantage, and the desired product/brand
positioning.

REFERENCE FOR THE PCM II 2021 ONLY

 Marketing Tactics and Action Programs
The action programs part of the plan involves the preparation of detailed marketing
tactics for each of the marketing mix elements encompassing as a minimum the four
conventional Ps of the marketing mix or the extended marketing mix elements. The action
programs should contain plans for implementing these including the allocation of tasks
and responsibilities, and required marketing structures and systems. (What has to be
done? Who will do it? When will it be done?)

Budgets/Financial Implications
This part of the plan should encompass all associated costs and required budgets for
marketing programs. These budgets should be allocated to the various marketing
activities as appropriate. This part of the plan should also contain projected sales which
will enable, in turn, projected profit and loss statements.

Evaluation and Control

This part of the plan contains information on expected standards of performance as the
basis of control. It should also contain information on how results will be measured,
evaluated and the control mechanisms to be used.

Contingencies
The contingencies part of the plan details what actions will be taken if there be any
problems. So, for example, if the marketing plan is based on a set of assumptions, say
regarding levels of inflation/interest rates and so on, and should these materially alter
during the period of time that the plan is in operation, requiring changes in elements of
the plan, then this contingency section is aimed at encompassing any potential changes in
plans of action.

Appendices
The appendices part of the plan should contain most of the detailed background analyses
carried out in the production of the marketing plan.

4.2 The Purpose of Marketing Planning

Many organisations now undertake a structured marketing planning process because of;

Increasing turbulence, complexity and competitiveness

The speed of technological change
High level of investment required to develop new products
The need for superiors to inform
To obtain financial support from financial institutions
To create competitive advantage
To get support from other divisions
To set objectives and strategies

REFERENCE FOR THE PCM II 2021 ONLY

4.3 Benefits of a Marketing Plan

A marketing plan serves a number of purposes;

It offers a "road-map" for implementing an organisation's strategies and achieving its

objectives.

It assists in management control and monitoring of implementation of strategy.

It informs all participants in the plan of their role and functions.

It specifies how resources are allocated.

It stimulates thinking and makes better use of resources.

An awareness of key marketing trends, opportunities, threats, and internal strengths

and weaknesses.

It assists in ensuring that the organisation is customer focused.

It provides contingency plans.

It is proactive rather than reactive

REFERENCE FOR THE PCM II 2021 ONLY

Chapter 12
DIGITAL MARKETING
“As global competition intensifies, an organisation’s performance and strategic
positioning will become more dependent upon its ability to successfully exploit
information technologies”
(Doherty and Ellis –Chadwick)

“The new information technology, Internet and e-mail, have practically eliminated the
physical costs of communications.
(Peter F Drucker)

1. DIGITAL MARKETING

1.1 What is Digital Marketing?

Digital Marketing is a broad term that refers to various and different communication
techniques deployed to reach customers via digital technologies in a cost-effective manner.

Every marketer needs to understand how to exploit digital marketing tools and techniques
in order to improve their customer value proposition and overall competitiveness. That
means designing an accessible, usable and value-adding website, social networking sites
and using a range of inter-related digital marketing tools and techniques to drive traffic,
conversion, engagement and referrals.

2. DIGITAL MARKETING TECHNOLOGIES OR PLATFORMS

Digital marketing is essentially the use of digital platforms or technologies to communicate
and reach your target audience. These would include;
▪ Internet Marketing – Intranet, extranet, websites, E-commerce
▪ E-marketing
▪ Mobile Marketing
▪ Interactive Television Marketing
▪ Social Media Marketing

2.1 Internet Marketing

The internet is a network of computers which are linked together such that the computer
user may communicate with the other computers in the system.
An organisation usually will communicate with its internal staff and intermediaries and
suppliers through intranet and extranet for confidential purposes and with its target
audience through corporate websites.

REFERENCE FOR THE PCM II 2021 ONLY

▪ Intranet
Intranet is an electronic system of internal communication throughout an organisation.
A company intranet is a private, secure Website that enables employees to communicate,
collaborate, share documents and other information, and access productivity tools. An
intranet is often hosted and maintained on cloud or company servers and can only be
accessed by internal employees.
▪ Extranet
The extranet is a system of electronic communication which connects members of a
value/supply chain network together.
An extranet is a computer network which allows controlled access from the outside, for
specific business purposes. In a business-to-business context, an extranet can be viewed as
an extension of an organization's intranet that is extended to users outside the
organization, usually partners, vendors, and suppliers, in isolation from all other Internet
users.
▪ Corporate Websites
Organisations are increasing their emphasis on communicating with customers through
their corporate websites. Organisations must design websites that embody or express
their purpose, history, products and vision.
A key challenge is designing a site that’s attractive on first viewing and interesting enough
to encourage repeat visits. They use their websites to build their brand image and educate
customers about their products or services and where they can be purchased.

Search Engine Optimization: SEO, or Search Engine Optimization, is a marketing technique

for making a web page appear more frequently above others in a list of results from a
search engine. The higher up the list of results for a search term, a web page appears, the
more people will click on it.

▪ E-Commerce

One of the most important areas affected by advances in internet technology has been the
growth of electronic commerce, often referred to as 'e-commerce' or alternatively, 'e-
business'.
Electronic commerce, commonly known as e-commerce, is a type of industry where the
buying and selling of products or services is conducted over electronic systems such as the
Internet and other computer networks. Examples: eBay, Amazon, Anything.lk, My deal.lk
Needless to say, e-commerce has only grown to the extent that it has because it offers
significant advantages to the customer. Advantages of e-commerce to customers are;

One-stop shopping.
More convenient purchasing, example from home no need to travel, find parking
space etc.

REFERENCE FOR THE PCM II 2021 ONLY

 The ability to compare and contrast product offerings, prices, warranty etc from
different suppliers and therefore get the best value.
Faster and more flexible purchasing.
The opportunity to communicate directly with suppliers regarding, for example,
needs, terms, complaints, feedback etc.
Overcome Geographical Limitations

2.2 Email marketing

Email marketing is a marketing technique that uses emails to send a marketing message to a
targeted audience.
Marketers are attracted to the potential of e-mail marketing as a communication tool that
can target individuals rather than using mass media approaches. Carefully designed e-mail
marketing strategy can help to create initial contact as well as helping to develop an online
relationship with the target market once transactions have taken place.
▪ Permission Marketing: is an important concept based on the belief that people should
be given the choice of whether to receive further marketing communications or not. To
avoid irritating customers by sending unwanted marketing e-mails, organisations
should ask customers for permission to e-mail marketing pitches. They should tell
recipients how to “opt in” or “opt out” of e-mail promotions at any time. This approach
is known as Permission marketing and has become a standard model for email
marketing.
▪ Viral Marketing: Viral marketing, or ‘e-mail a friend’, is another form of word of mouth,
or “word of mouse,” marketing. Viral marketing involves creating a Web-site, e-mail
message, or other marketing event that is so infectious that customers will want to pass
it along to their friends. It is deliberately stimulated by the marketer and is easy to
achieve with the use of a forwarding facility. Thus, viral marketing is very inexpensive
and when the information comes from a friend, the recipient is much more likely to
open and read it.

2.3 Mobile marketing

Mobile marketing looks set to be one of the fastest growing and most exciting recent
developments in marketing communications.
Mobile marketing is defined as:

“Mobile Marketing is a set of practices that enables organizations to communicate

and engage with their audience in an interactive and relevant manner through and
with any mobile device or network”. (Mobile Marketing Association (MMA))

The convergence of the internet and wireless technology has revolutionized telecom
services. Technological advances are enabling more and more data and multimedia content
to be accessed through mobile handsets, smartphones, PDA’s,

REFERENCE FOR THE PCM II 2021 ONLY

Short Message Service (SMS) marketing and Multi Media Service (MMS) marketing; have
expanded rapidly as a marketing technique that focuses on the use of text messaging,
images, audio, videos to spread a marketing message. Similar to email marketing the goal of
SMS marketing is to build a database of subscribers and then message them in the future
with specials, promotions, news, etc. It allows addressing individuals with messages
accordingly to their specific needs and preferences and more importantly receiving almost
immediate feedback.
With the increasingly widespread use of smartphones, app usage has also greatly increased.
Therefore, mobile marketers have increasingly taken advantage of smartphone apps as a
marketing resource. This allows for direct engagement, payment, and targeted advertising.

▪ Apps - What is an App Used for?

“App” is an abbreviation for application or essentially a bit of software that is used to

further make use of your mobile device. By owning an iPhone, Windows or Android phone
you can download apps for free or pay for certain apps to your mobile phone to have easy
access to software that will perform specific functions right from the palm of your hands.

The apps can be used to make detailed task easy or can play games, make documents, listen
songs in just simple steps. Examples: Google Maps, Whatsapp, WeChat, Viber. (Many, Sri
Lankan organisations have developed many local applications to suit local markets)

2.4 Interactive Television Marketing

Interactive television (also known as ITV or iTV) is a form of media convergence, adding data
services to traditional television technology. Interactive TV lets viewers interact with
television programming and advertising using their remote controls. ITV gives marketers
and consumers with opportunities much greater interaction and individualization.

Interactive television is a two-way communication system that allows viewers to not only
receive information from broadcasters, but also enables them to provide feedback through
the set-top box. Due to this amazing feature, iTV is commonly referred to an active, rather
than a passive media. Unlike the traditional televisions, iTV does not involve merely a sole
participatory experience with the hardware. Rather, it enables users to engage with the
content on the television.

Most popular iTV’s today are;

▪ Smart TV – An equivalent of a computer built into a television, but providing users with
a greater number of services.

▪ Google TV – A web browser on a larger screen that also incorporates Android to the
television. This feature enables apps to be available on TV just like android phones.

REFERENCE FOR THE PCM II2021 ONLY

2.5 Social Media Marketing
Social Media Marketing (SMM) is a form of Internet marketing that utilizes social
networking websites as a marketing tool to attract website traffic or attention through
social media sites.
Social media marketing programs usually center on efforts to create content that attracts
attention and encourages readers to share it with their social networks. A corporate
message spreads from user to user and presumably resonates because it appears to come
from a trusted, third-party source, as opposed to the brand or company itself. Hence, this
form of marketing is driven by word-of-mouth, meaning it results in earned media rather
than paid media.
In addition, SMM helps a company get direct feedback from customers (and potential
customers) while making the organisation seem more personable. The interactive parts of
social media give customers the opportunity to ask questions or voice complaints and feel
they are being heard. This aspect of SMM is called social customer relationship
management (Social CRM).

3. WHAT IS SOCIAL MEDIA?

Social Media is a term used to describe a variety of Web-based platforms, applications and
technologies that enable people to socially interact with one another online and is the latest
buzz word in Internet marketing over the last few years.
Social media is a platform that is easily accessible to anyone with internet access that brings
people together for the exchange of information. Increased communication for
organizations fosters brand awareness and often, improved customer service. Additionally,
social media serves as a relatively inexpensive platform for organizations to implement
marketing campaigns.

3.1 Social Networking Websites and Blogs

Social networking websites allow individuals and organisations to interact with one another
and build relationships. Marketers can use social media to engage their customers in a
proactive dialogue with other customers. When an organisation provides content in a social
media website, people often begin sharing and commenting on it. When an organisation
finds an unhappy customer, it should recognize the event as a prime customer service
opportunity, engage the customer and attempt to remedy the situation immediately. By
proactively engaging with customers, an organisation can build a stronger brand and
customer relationships.
Social networking sites allow users to share ideas, activities, events, and interests within
their individual networks.
The success of the new generation of social networking websites or social media platforms
has changed the way we socialize, interact, shop and has also brought new channels to
digital marketing as well.

REFERENCE FOR THE PCM II 2021 ONLY

Different types of social networking sites are good for different marketing activities. The
most popular social media websites or platforms for an organisation are as follows:

▪ Facebook
Facebook is the most popular social networking website. Its name stems from the colloquial
name for the book given to students at the start of the academic year by some American
university administrations to help students get to know one another.
Facebook allows registered users to create profiles, upload photos and video, send
messages and keep in touch with friends, family and colleagues. With the help of Facebook
you can connect to different people from anywhere in the world because almost every
people around the world use Facebook. This gives us the opportunity to know more about
their custom and tradition, culture, religion etc.
Facebook offers a range of privacy options to its members. A member can make all his
communications visible to everyone, or block specific connections or can keep all his
communications private. For those members who wish to use Facebook to communicate
privately, there is a message feature, which closely resembles email.

▪ Twitter
Twitter is a social networking and micro blogging website that enables users to send and
read messages known as "tweets", which are text messages limited to 140 characters.
Registered users can read and post tweets but unregistered users can only read them.
Twitter allows organisations to promote their products on an individual level. The use of a
product can be explained in short that followers are more likely to read. These messages
appear on follower’s home pages. This interaction can create a loyal connection between
product and individual and can also lead to larger advertising opportunities. Twitter
promotes a product in real-time and brings customers in. Tweeting about special offers or
new products can encourage your followers to obtain more information, potentially leading
to sales.
▪ Google+
Google+ is a social networking and identity service owned and operated by Google. It is the
second-largest social networking site in the world, having surpassed Twitter in January
2013.
Google+ is the new Facebook competitor, and it promotes the same fun, casual
atmosphere. On Google+ you can upload and share photos, videos, links, and view all your
contacts. Also take advantage of Google+ circles, which allow you to segment your followers
into smaller groups, enabling you to share information with some followers while barring
others.
Google+, in addition to providing the profiles and features of Facebook, is also able to
integrate with the Google search engine. With the development of Google Personalized
Search and other location-based search services, Google+ allows for targeted advertising
methods, navigation services, and other forms of location-based marketing and promotion.

REFERENCE FOR THE PCM II 2021 ONLY

▪ You Tube
YouTube is a video-sharing website, created by three former PayPal employees in February
2005 and owned by Google since late 2006, on which users can upload, view and share
videos. The slogan of the YouTube website is "Broadcast Yourself." This implies the YouTube
service is designed primarily for people who want to publish videos they have created.
This platform gives organisation’s an effective medium for uploading product, instructional
videos and other relevant videos.
Type your text

▪ LinkedIn
LinkedIn is a social networking site designed specifically for the business community. The
goal of the site is to allow registered members to establish and document networks of
people they know and trust professionally.
LinkedIn Groups is a great venue for entering into a professional dialog with people in
similar industries and provides a place to share content with like-minded individuals. With
LinkedIn, you can build your brand and profile to share with others, can also it assists
members to find jobs, and search for potential candidates.

▪ Myspace
Myspace is a popular social networking website with a strong music emphasis owned by
Specific Media LLC and pop music singer and actor Justin Timberlake.
Myspace is considered the music network, connecting millions of bands with millions of
music lovers. Users of the service are able to create blogs, upload videos and photos, and
design profiles to showcase their interests and talents. Myspace has provided a place for
users to meet new friends and keep in touch with people across the world. The site has
grown tremendously since its inception in 2003 and has even launched the careers of some
music artists and actors.

▪ Instagram
Instagram is an online photo-sharing, video-sharing and social networking service that
enables its users to take pictures and videos, apply digital filters to them, and share them on
a variety of social networking services and also with other Instagram users.

▪ Blogs
A blog is sometimes referred to as an online personal journal. It is a site designated for an
individual to write about his/her daily experiences, to illicit thoughts and often allowing
readers to offer their comments. A well-received blog can communicate trends and special
events, create positive word of mouth, announce product launches, connect customers by
forming a community, allow the organisation to respond directly to customer’s comments
and develop long-term relationships with customers. (Example: Word Press, BlogSpot)

REFERENCE FOR THE PCM II 2021 ONLY

4. WHAT IS INBOUND MARKETING AND OUTBOUND MARKETING
Social media consists of various user-driven (inbound marketing) channels (e.g., Facebook,
Twitter, blogs, YouTube) the pull model. These channels represent a stark difference from
the advertiser-driven (outbound marketing) the push model.

• Inbound Marketing
Inbound marketing earns the attention of customers, makes the organisation easy to be
found and draws customers to the website by producing interesting content. By creating
content specifically designed to appeal to your target market, inbound attracts qualified
prospects to your business and keeps them coming back for more. (“Pulling” the customer
towards the organisation)
Inbound Marketing strategies, focuses on ensuring that customers and prospects can find
you online, by creating visibility for the organisation through social media sites, blogs,
Search Engine Optimization (SEO), and other forms of content marketing.
Type your text
Consumers no longer rely on billboards, Print, radio and TV spots to learn about new
products, because the web has empowered them. Potential customers now perform their
own online research to find the organisation that best suits their needs, and ultimately
choose a business based on their personal preferences and research rather than on a flashy
ad campaign.

Outbound Marketing
In contrast, Outbound marketing consists of the familiar types of traditional communication
media that have been used for years, such as billboards, email marketing, TV, Radio and
Print advertisements and telemarketing
All of these communication media focuses on the common goal of finding customers; but
there is one problem here. Modern society no longer wants to be found. Instead, people
prefer to determine for themselves which organisation’s they want to do business with.
Today’s customers are savvier than ever. They don’t want to be bombarded by high-
pressure sales tactics, irritating radio ads, or intrusive cold calls – nor do they want to be
bothered by irrelevant marketing.

5. Digital Marketing Mediums: Paid, Owned and Earned

In your digital marketing strategy the organisation must use as many different marketing
mediums as possibly can in order to communicate with its target market. The more
marketing mediums you use, the more successful your marketing strategy will be.

• Earned Media

Earned media in the digital world is a term used for generating traffic and customers
through organic means instead of paid advertisement. Earned traffic can be gained through
content marketing, search engine optimization, social media or editorial impact. Earned
media does not involve advertising, and it is the complete opposite of paid media.

REFERENCE FOR THE PCM II 2021 ONLY

Types of earned media are as follows;
▪ Word of mouth
▪ Facebook fans
▪ Twitter followers
▪ Reviews on social media websites
▪ Blogging
▪ Magazine and newspaper reviews

• Paid Media

Using paid media is the fastest way for businesses to advertise their products and services.
To put it simply, paid media is a good way to promote content in order to drive earned
media, as well as direct traffic to owned media properties encompasses all of the “paid”
investments a brand or business makes to drive growth. Paid media initiatives usually target
prospects in an effort to create brand awareness or new customer acquisition.
Types of paid media are as follows:
▪ Print
▪ Television
▪ Radio
▪ Billboards
▪ Online banner ads
▪ Search engine marketing

• Owned Media

These are the easiest to explain. It’s anything owned by the brand or organisation.
Owned media is the content that your brand has complete control over and using media is
one of the best ways that your organisation can build relationships with its customers. The
more owned media a business have the more influence and opportunities it creates.
Types of owned media are as follows;
▪ Retail outlets
▪ Corporate and Marketing website
▪ Facebook fan page
▪ Social media accounts
▪ Brochures/information

Integration of Channels: —balance your efforts

While each of these channels will play a critical role in your content strategy, the real power
is when you can integrate two or more of the channels into one campaign or initiative,
which is known as media convergence. By targeting and advertising to potential customers,
creating brand advocates and return customers, and focusing on your business, you will
create a well-balanced and integrated marketing plan.

REFERENCE FOR THE PCM II 2021 ONLY

6. NEW TRENDS IN DIGITAL TECHNOLOGY
6.1 Cloud Computing
According to the NIST’s definition, cloud computing is defined as:

Cloud computing is a model for enabling ubiquitous, convenient, on-demand

network access to a shared pool of configurable computing resources (e.g.,
networks, servers, storage, applications, and services) that can be rapidly
provisioned and released with minimal management effort or service provider
interaction. (National Institute of Standards and Technology)

Another simple definition of cloud computing was invented by Chris Poelker, author of
Storage Area Networks for Dummies. His simple definition is as follows:
Cloud computing is simply a way to describe how organizations can take some or
all of their existing IT infrastructure and operations and hand it over to someone
else.
Thus, Cloud computing provides the facility to access shared resources and common
infrastructure, offering services on demand over the network to perform operations that
meet changing business needs. Listed below a few of the exciting stuff you can do with
cloud computing;
o You can use the cloud computer to store all your data, just in case your laptop or smart
phone get stolen, damaged or lost.
o If you have a smart phone (e.g. Android, Windows or iPhone) you can use the cloud
computer to automatically synchronize things like email, pictures, music, contacts etc.
between your smart phone, cloud computer and your laptop.
o You can use the cloud computer to run a business e.g. instead of installing a CRM
software on all the individual computers in your business, just install the CRM software
on the cloud computer and everyone within your business can access it via the Internet.

6.2 Big data

Big data is high-volume, high-velocity and high-variety information assets that
demand cost-effective, innovative forms of information processing for enhanced
insight and decision making. (Gartner)

The Importance of Big Data

When big data is distilled and analyzed in combination with traditional enterprise data,
enterprises can develop a more thorough and insightful understanding of their business,
which can lead to enhanced productivity, a stronger competitive position and greater
innovation – all of which can have a significant impact on the bottom line.
The use of big data is becoming a key way for leading organisations to outperform their
peers. For example, McKinsey and Company estimates that a retailer embracing big data
has the potential to increase its operating margin by more than 60 percent.

REFERENCE FOR THE PCM II 2021 ONLY

6.3 Business Intelligence
Business intelligence (BI) is an umbrella term that includes the applications,
infrastructure and tools, and best practices that enable access to and analysis of
information to improve and optimize decisions and performance. (Gartner)

Business Intelligence as a discipline is made up of several related activities, including data

mining, online analytical processing, querying and reporting. Generally these systems will
illustrate business intelligence in the areas of customer profiling, customer support, market
research, market segmentation, product profitability, statistical analysis, and inventory and
distribution analysis to name a few.
Organisations use BI to improve decision making, cut costs and identify new business
opportunities. BI is more than just corporate reporting and more than a set of tools to coax
data out of enterprise systems. With today’s BI tools, marketers can analyze data
themselves, rather than wait for IT to run complex reports.
Although BI holds great promise, implementations can be dogged by technical and cultural
challenges. Executives have to ensure that the data feeding BI applications is clean and
consistent so that users trust it.

7. THE KEY ADVANTAGES OF USING DIGITAL MARKETING

Given below are some of the key advantages of digital marketing;
▪ Fast and easy access
With today’s digital age, almost everyone can gain access to the internet. Therefore, the
rate of response is far higher in comparison to the traditional media.
▪ Cost Effective
Compared to other media, digital marketing requires only little investment, but you can
expect far greater returns.
▪ Measurable
You can easily measure your digital marketing performance using various analytics tools.
When you place an ad in the newspaper or a magazine, it can be difficult to assess the
direct sales impact of your business.
▪ Focused and specific
Digital marketing helps consumers narrow their search for the specific product or service
they are looking for. This will most likely attract the target audience for your product.
▪ Instantaneous feedback
Online marketing platforms offer instantaneous feedback; Massages can be relayed
immediately at particular target and as a result receive instant feedback.

REFERENCE FOR THE PCM II 2021 ONLY

▪ Creates personalized messages
You can gain insights regarding your consumers using digital marketing tools and target
them with personalized messages.
▪ Wider geographical reach
Digital marketing gives your campaigns global coverage, which helps your online campaigns
reach more audiences.
▪ Brand engagement
Digital marketing allows you to engage with your consumers more proactively with digital
marketing platforms. You can interact with your customers in a personalized way by making
them more involved with your brand.
▪ Long-term exposure
The benefit of a search marketing campaign that optimizes a website for specific keywords
is that you will achieve a long-term return on your investment.

REFERENCE FOR THE PCM II 2021 ONLY

List of References

▪ Bearden, O,W, and Ingram, N,T, and LaForge, W,R, (2007) “Marketing Principles and
Perspectives” McGraw Hill publications

▪ Blythe, Jim, (2006) “Principles and Practice of Marketing” Thomson Learning

▪ BPP Study Text (2008) “Essentials of Marketing” BPP publications

▪ Brassington, F, and Stephen, P, (2003) “Principles of Marketing” FT Prentice Hall

▪ Dibb, S, and Simpkin, L, and Pride, W, and Ferrel, O,C, (2001) “Marketing Concepts and
Strategies” Houghton Mifflin Company

▪ Jobber, David, (2007) “Principles and Practice of Marketing” McGraw Hill

▪ Kotler, Philip and Gray, Armstrong, (2008) “Principles of Marketing” Prentice Hall

▪ Kotler, Philip and Gray, Armstrong, and Y, Agnihotri, Prafulla and ul Haque, Eshan (2010)
“Principles of Marketing – A south Asian Perspective” Prentice Hall

▪ Kotler, Philip, and Keller, Kevin, Lane, (2008) “Marketing Management” Prentice Hall

▪ Lancaster, Geoff, and Reynolds, Paul, (2002) “Marketing One Semester Introduction”
Butterworth-Heinemann

▪ Lancaster, Geoff, and Withey, Frank, (2006-2007) “Marketing Fundamentals”

Butterworth-Heinemann

▪ Palmer, Adrian, (2000) “Principles Of Marketing” Oxford University Press

▪ Stanton, W,J and Etzel, M, J, and Walker, B,J, (1994) “Fundamentals of Marketing”
McGraw Hill

REFERENCE FOR THE PCM II 2021 ONLY