Marketing Management

Marketing Management _ Direct Marketing &

Digital Marketing

Unit V

Direct Marketing & Digital

Marketing
 Marketing Management _ Direct Marketing &
Digital Marketing
Learning Outcome (Unit V)
In this unit, you will learn
1. Nature & Scope of Direct Marketing
2. Differences between Mass Marketing Vs Direct Marketing
3. Forms of Direct Marketing
4. Digital Marketing
5. Components of Digital Marketing
6. Digital Marketing Communications
7. Digital Marketing in India.
 Marketing Management _ Direct Marketing
Marketing Management _ Direct Marketing & &
Digital Marketing
Digital Marketing
Differences between Mass Marketing & Direct Mktg
Mass Marketing Direct Marketing
• Mass Segment • One to One Marketing
• Little scope for Customization • High scope for Customization
• One way activity • Interactive Marketing
• Relies on Marketing Channels • Does not involve Marketing Channels
• Relies on Advertising/Mass Promotion • Does not involve Advertising/Mass
• Opts for Sales Promotion Offers on Mass Promotion
basis • Opts for Individualised Sales Promotion
Offers
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Digital Marketing
Forms of Direct Marketing
• Mail Order Marketing/Catalogue Marketing
• Direct Mail Marketing/Direct Response Marketing
• Telemarketing
• Teleshopping/Homeshopping
• Digital Marketing/Online Marketing
• Marketing through Mobile Phone
• Direct Selling (Amway, Herbalife, Tupperware, Modicare, Oriflame)
• Multi-level Marketing/Network Marketing
 Marketing Management _ Direct Marketing &
Digital Marketing
Digital Marketing
• It is marketing of products or services using digital technologies, mainly
internet but also includes other digital medium/instruments such as
mobile phones.
• Also can refer to advertising/marketing communications that are
delivered through digital channels
 Marketing Management _ Direct Marketing &
Digital Marketing
Advantages of Digital Marketing
• It brings market to the doorstep of the customer due to internet-the most
powerful tool known to man
• Taps the potential of all the relevant digital technologies such as:
✓ Speed in transactions
✓ Enormous capacity for storage and analysis of data
✓ Capacity to process huge volume of transactions
✓ Revolutionary logistics capability
• It is powerful on account of its interactive capability
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Digital Marketing
Benefits of Digital Marketing to Seller
• Access to all markets and constraint free growth
• Delivery of enhanced value to the customers through customisation
• Carrying out better CRM
• Achieving better Marketing Productivity and cost control
• Achieving flexibility in marketing communications
 Marketing Management _ Direct Marketing &
Digital Marketing
Benefits of Digital Marketing to Buyer/Consumer
• Convenience
• Scope for informed and competitive buying; greater bargaining power
• Search Advantage and wider options
• Customised and personalised products and services
• Greater transparency
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Digital Marketing
Components and Tasks of Digital Marketing
• Developing a strategy and a busines s plan
• Effective targeting/assessing of ‘net habits’ of target audience
• Setting up the IT infrastructure
• Setting up electronic storefront for transactions and payment
• Getting high traffic by making the site interesting
• Specialisation – becoming ‘product magnets’ and ‘customer magnets’
• Securing affiliates
• Developing communication messages for online display
• Creating backroom logistics for physical delivery of products
 Marketing Management _ Direct Marketing &
Digital Marketing

Developing a strategy and a busines s plan

• One needs to prepare strategies, competitive advantages, resources and

execution abilities in order to succeed
• The marketer needs to first analyse the market and figure out how to
reach his customer
• Decide which of the products in the firm’s business basket are suitable
and amendable for web marketing
 Marketing Management _ Direct Marketing &
Digital Marketing
Effective targeting/assessing of ‘net habits’ of target audience

• Identify the right market and understand the marketing opportunity

• The marketer should know the surfing behaviour of his audience
• First job is to get the target prospects to visit his site
• Second step is to get on the one to one mode and refine the offer to suit
each individual prospect
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Digital Marketing
Setting up the IT infrastructure
• Creation of required satellite and internet connectivity
• Getting the network in place is important because e-commerce and web
marketing rely totally on networking
• Online/real-time communication and interactive / two way
communication are important for networking irrespective of B2B or
B2C marketing
 Marketing Management _ Direct Marketing &
Digital Marketing
Setting up electronic storefront for transactions and payment
• Start an own electronic store front of his own on the internet or buy a
location from an independent commercial online service
• There are two options for buying from online commercial online service:
Hire storage space or establish a gateway from his computer to the
service’s shopping mall
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Digital Marketing
Getting high traffic by making the site interesting
• Success of any website depend on high traffic
• Amazon is, in fact, one of the most trafficked site on the internet
• Attract prospects to their site through e-mail, advertisements in
newspapers/magazines and on billboards
• Information, entertainment and incentives are basic tools to entice the
surfers to visit their site
• Constant updating of web pages / offers is required to sustain audience
interest
 Marketing Management _ Direct Marketing &
Digital Marketing
Getting high traffic by making the site interesting
• Web marketers use Discounts, Gifts, Sweepstakes, Contests and games
to attract visitors to participate in these and thereby collect the required
database of the prospects by requiring them to provide such details as
required
• The websites can be made interactive thereby increasing the chance of
success
• Make the site user friendly by making it fast loading, get them to reach
where they want to on the site within two clicks, quick search/quick
results, live help,
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Digital Marketing
Specialisation–becoming ‘product
magnets’ and ‘customer magnets’
• Product Magnets: Web marketers who specialise in one
product category E.g: Amazon was originally for books
• Customer Magnets: Organise around a specific segment
of customers. E.g. Specialise in legal matters serving
the needs of the lawyer community
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Digital Marketing

Securing Affiliates/Partners
• Affiliate is a selling agent and an affiliate programme is a tool by which
web marketers acquire a bunch of selling agents
• Affiliates are equivalent to sales force in mass marketing where they get
paid only for the sales actually generated by them
 Marketing Management _ Direct Marketing &
Digital Marketing
Developing communication messages for online display
• This will be dealt with in detail
 Marketing Management _ Direct Marketing &
Digital Marketing
Creating backroom logistics for physical delivery of products

• Distribution: The number one challenge for e-commerce in India is

logistics and the last mile connectivity
Amazon has been using tie ups to cut delivery time by partnering with
the company to act as the last mile fulfilment centres
• Pricing: In case of pricing, online marketing has its own uniqueness
where they can adjust the pricing in a customer centric manner and
move from one fixed pricing to win-win dynamic pricing
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Digital Marketing
Creating backroom logistics for physical delivery of products
• Promotion: Festival season sale and discounts are the main promotion
tools.
The trend towards “exclusive on app’ model.E.g Myntra moved to app
only business model in 2015 and after a year retracted in an attempt to
win back its lost customers
• Problem of Product Returns: Product returns accounts for 20-30% of
total sales depending on the category. This not only brings down the net
sales but also erodes the profitability
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Digital Marketing
Digital Marketing Communications
• Digital Communications means advertising delivered through
digital channels
• It deals with only promotion of the firm’s offer
• Digital Marketing deals with the entire marketing activity leading
to sale and physical delivery of the product under offer.
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Digital Marketing
Advantages of Digital Marketing Communications
• Active and interactive
• Can lead to action
• Goes beyond mere communication and enhances the value of the
offer (facilitates customer engagement, Customise offer, represent
customer’s complaint, company’s agent to earn the customer’s trust)
• Cost effective
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Digital Marketing
Digital Marketing Platforms
• Search Engines (Google, Yahoo, Bing etc…)
• SEO: Process of optimising the content, technical set-up and reach
of one’s website.
SEO enforces the need for a well constructed and easy to use website,
valuable and engaging content, and the credibility for other websites
and individuals to recommend you by linking to one’s site or
mentioning it in social media posts
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Digital Marketing
Digital Marketing Platforms
• Content: Great content is the fuel that drives digital marketing
activities. It is a key pillar of modern SEO. It helps you to get
noticed on social media. It gives you something of value to offer
customers in e-mails and paid search ads. Content should educate
and inspire. This ripple effect matters most in digital context. It
generates a chain of prospects/customers
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Digital Marketing
Digital Marketing Platforms
• Social networking sites: Facebook, WhatsApp, YouTube, Snapchat,
Twitter, LinkedIn etc.. Are the hang out spaces for a large section
of the society and hence these spaces have become the sought after
medium for advertisers
• Company Websites: Crucial part of the media mix. They not only
publicise sales promotion offers but provide more information to
participants to engage them. From dumb sites, they are moving to
dynamic sites
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Digital Marketing
Digital Marketing Platforms
• Operating Discussion Groups among users: Users air their opinions on
such discussion groups or forums. Amazon users can post their views or
reviews in the groups and such positive reviews will influence the
prospective buyers
• Live Webcasts: To announce any new events like product launches etc…
• Mobile Phone and related Devices: Mobiles have brought the world on
our palm. Marketers are turning to mobiles as an essential platform for
their messages. From SMS, MMS and ‘in-app’ marketing mobiles offer
unique opportunity for the marketers
 Marketing Management _ Direct Marketing &
Digital Marketing
Digital Marketing Platforms
• SMS
• E Mail Marketing
• Blogs
• Viral Advertising
• 3D Digital Shops Add more versatility
• Brand specific sites (Sunsilk Gang of Girls Hair Club)
Marketing Management _ Direct Marketing &
Digital Marketing

Digital Marketing Scene in India

• E-commerce has transformed the way business is done in
India.
• The Indian E-commerce market is expected to grow to US$
200 billion by 2026 from US$ 38.5 billion as of 2017.
• Much of the growth for the industry has been triggered by an
increase in internet and smartphone penetration.
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Digital Marketing
Digital Marketing Scene in India
• As of August 2020, the number of internet connections in India
significantly increased to ~760 million, driven by the ‘Digital India’
programme.
• Out of the total internet connections, ~61% connections were in
urban areas, of which 97% connections were wireless.
• Online retail sales in India is expected to grow 31% to touch US$
32.70 billion in 2018, led by Flipkart, Amazon India and Paytm
Mall.
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Digital Marketing
Digital Marketing Scene in India
• Flipkart and Amazon dominate the space
• Paytm
• BigBasket
• Grofers and super Daily
• Future Bazaar
• The ‘Rule of Three’ may govern India’s Online Marketplace
• Social Media Fuels Digital Marketing: Facebook launches its online
marketplace
• The Advent of ‘the mobile’ in Digital Marketing
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Digital Marketing
Advantages of ‘the mobile’

• Anytime, Anywhere shopping

• Location-based services
• Enhanced ‘in-store shopping’
• Mobile Wallet
 Marketing Management _ Direct Marketing &
Digital Marketing
Digital Marketing Scene in India
• Contextual Digital Marketing can take Digital marketing to a higher
level
• Digital Marketing: A Big Disruptor of Traditional Marketing
Marketing Management _ Direct Marketing &
Digital Marketing

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