Module II: Understanding

Digital Environment
Digital Environment -Learning objectives

• Digital Marketing Definition

• 10Cs of Digital Environment
• Characteristics of Digital Environment
• Characteristics of Digital Space in Business Context
• Technical Definitions & Terminology of Digital
Environment
• Digital Marketing Mix
Digital Marketing - Definition
• The use of Internet and related digital
information and communications
technologies to achieve marketing
objectives
• Effective online marketers requires the
combination of IT and Marketing
competences to achieve customer
satisfaction
10Cs of Digital Environment (Digitalscape
or Digital space
2. Competitors

10. Control/
3. Company
Consistancy

9. Coordination
4. Cost
(Collaboration)

1.
Customer

8.
5. Content
Communication

6.
7. Convenience
Customization
 Key Features of
Digital Environment
 1. Ubiquity
(Anytime, Anywhere, Anyhow)
Technology Business Implications
Dimension

Internet Technology is •Marketplace is created or extended beyond

available everywhere, at traditional boundaries and removed from a
work, at home, and geographic location.
elsewhere via mobile •Shopping can take place anywhere.
device, anytime •Reduced shopping costs.
•Customer convenience enhanced
 2. Global Reach
Technology Dimension Business Implications

Technology reaches •Commerce is enabled across cultural and national

beyond national boundaries seamlessly and without modification.
boundaries •Marketplace includes potentially billions of
consumers and millions of businesses world wide
 3. Universal Standards

Technology Business Implications

Dimension

There is one set of •Lower market entry costs,

technology •Reduce product search cost and by creating a single ,
standard, namely one market place, price discovery becomes simpler, faster
Internet Standards and more accurate
•Easily find all the suppliers, prices, and delivery terms of
a specific product anywhere in the world
 4. Richness

Technology Business Implications

Dimension

Video, Audio, •E-Commerce technologies have changed the traditional

Picture and Text tradeoff between Richness and the Reach.
Messages are •The Internet and web can deliver to an audience of
possible millions rich marketing messages in a way not possible
with traditional technologies like radio, TV and magazines.
 5. Interactivity

Technology Business Implications

Dimension

The technology that •Consumers are engaged in a dialogue that dynamically

allows two way adjusts the experience to the individual, and make the
communication consumer a co- participant in the process of delivering
between merchant goods to the market.
and consumer •Similar to face-to-face experience but on a massive
global scale
 6. Information Density

Technology Business Implications

Dimension
The technology •Information processing, storage and communication
reduces information costs drop dramatically while currency, accuracy and
cost and raises quality timeliness improve greatly.
•Information becomes plentiful, cheap and accurate
 7. Personalization

Technology Dimension Business Implications

Technology allows personalized •Personalization of marketing

messages to be delivered to messages and customization of
individuals as well as groups products and services are based on
individual characteristics
 8. Convergence
Technology Dimension Business Implications

Convergence of computing, • Cheap and powerful digital technology

communications and media content has contributed to the merging of
industries, technology and content.

• When barriers between industries fall,

marketers have greater flexibility to
choose the best medium for the
consumer pitch.
 9. Networking

Technology Business Implications

Dimension

The technology that •Consumers are engaged in a discussion that

allows formation of dynamically enhances the knowledge about a concept,
consumer / product or business. Consumers get influenced by
merchant groups. experience or perceptions of other participants.
•Similar to word-of-mouth communication but on a
massive global scale
 10. Measurability

Technology Business Implications

Dimension

The technology that •Business are able to profile a consumer on geographic,

allows identification demographic, psychographic, behavioral, past activities,
of users profile and etc and map complete buying pattern.
map their digital • Company is able to accurate measure the consumer
activities. activities in the digital space.
Properties of Digital Landscape

• Media
• Communication Channel
• Distribution Channel
• Business Process (Transformation of
existing processes)
• Market Space (Buyer and Sellers
interactions)
Digital: Bits and Bytes
• Internet Protocol (IP) is a network address
contains 4 Bytes i.e. 32 bits
IP 192.168.0.1
11000000. 10101000. 00000000. 00000001

• Digital Speed: Kbps, Mbps, Gbps

• Digital Space (Data): Kilobyte (KB), Megabyte
(MB), Gigabyte (GB)
Technological Characteristics of Digital
Environments
• Procedural:
– Computers must be taught what to do in a digital
environment
• Participatory:
– Effectiveness depends on ease of consumer use and
interactive potential
• Spatial:
– Realistic features are important but hard to create in
business setting.
• Encyclopedic:
– Low cost allows almost endless storage capacity
Why Being Digital suits Business?
• The falling cost of digital technology is one
of the most powerful forces in the modern
economy
– Substituting with Digital goods or service when
possible can lead to substantial cost reduction.
– Substituting with Digital processes when
possible leads to improved efficiency and
productivity.
 Why being Digital suits Users ?
• Convenience is the most sought after benefit for the
modern consumer due to emerging socio-economic
factors such as dual parents working, career aspirations,
materialism, flexible working, the demise of the Joint
family, etc.
• We are becoming by nature channel hoppers and the
Internet is becoming a first port of call for consumers
seeking product and corporate information.
• We always looking for new sources of entertainment,
new ways to spend our time.
• The main consumer concerns that restricted the rate of
internet adoption were Security, Trust and Privacy
issues.
Digital Substitutions - Examples
• Sun Microsystems as early as 1995 saved hundreds of
thousands of dollars by moving to online customer
support
• Online software distribution saved Sun an estimated $1.5
million per quarter compared to traditional distribution
• Online banking services, such as automatic payroll deposit
• Online Banking Service cost is Rs. 2 per customer. Branch
Banking service cost Rs. 38 per customer.
• Wireless laptops for sales representatives working in the
field
• Automatic online language translations
Digital Marketing Mix
5. E-Mail
Marketing

3. 8. Affiliate
SEO/SEM Marketing

Digital
1. Websites 2. Display
Marketing Marketing Advertising
Mix

4.
7. Content SMO/SMM/
Marketing Viral
Marketing

6. Mobile
Marketing
 Advantage of Online Media
• One-to-One (Personalization of Message)
• Interactive (high engagement)
• Measurable (Response driven - PPC, PPA, PPI)
• Flexibility ( Ease of Operations and modifications)
• Lower Media Cost
• Higher Impact due to Richness of Media (Videos,
Reviews, Discussions, Audios, story-telling, etc)
Thank You