Digitalization and Economic Growth in Marketing

Seshadripuram Journal of Social Sciences (SJSS)
Peer reviewed Open Access National Journal

Vol.2, Issue 1, November 2019
Journal Home page: https://mcom.sfgc.ac.in/online-journal ISSN 2581-6748
Digitalization and Economic Growth – In Marketing

Apoorva Sunil
M.Com M.Com
Sri Krishna Degree College Sri Krishna Degree College
Bengaluru Bengaluru
8073875166 80506789958
apoorvaps8@gmail.com sunilganesh9723@gmail.com
ABSTRACT
The world has transitioned into a digital environment. For today’s businesses, it is imperative to have
a website and use the web as a means to interact with their customers. There are some successful
traditional marketing strategies, particularly if you are reaching a largely local audience, but it is
important to take advantage of digital marketing so as to keep up in today’s world. Economic growth
is the increase in the market value of the goods and services produced by an economy over time.
Virtually every business is threatened by new competitors in the age of digitization. Customer
relationship marketing (CRM) is a technique based on client relationships and customer loyalty.
Using customer data and feedback, companies utilizing this marketing strategy develop long-term
relationships with customers and develop laser-focused brand awareness. This is expected to rise to
435 million by 2019. Supported by other factors like availability of low cost smartphones and
dropping rates of data plan, this has led to a record-breaking number of internet connections. Online
Marketing uses internet to deliver promotional marketing messages. Digital marketing is also known
as Internet marketing, but their actual processes differ, as digital marketing is considered more
targeted, measurable and interactive. Since economic growth is measured as the annual percent
change of gross domestic product (GDP), it has all the advantages and drawbacks of that measure.
KEYWORD: customer relation, M-commerce and E-commerce and economic growth in marketing.
INTRODUCTION
Digital India concept was started by government of India in order to ensure the government’s
services are made available to citizens electronically. Digital marketing channels are systems based
on the internet that can create, accelerate, and transmit product value from producer to the final
consumer by digital network. Digital marketing’s development since 1990s and 2000s has changed
the way brand and business use technology for marketing. Nowadays, everyone seems to talking
about digital marketing services and it was creating a business in the market and there are some
people who know about it but the thing is why it is creating business and how does it work? Digital
marketing is the one which uses electronics devices for marketing purposes such as tablets,
Seshadripuram Research Foundation, Bengaluru Page 165
computers, cell phones, smart devices/phones, and other electronic devices to get tied up with the
customers and the business partners. The strategies of economic development among others include
industrialization which incidentally, is the fundamental objective of most developing countries.
Certainly, most countries see in “economic growth”: the achievement of social as well as economic
goals which among others include the following: satisfaction of such non material needs as better
education for all, better and more effective government, the elimination of social inequalities; as well
as improvements in moral and ethical responsibilities of both the public and private sectors of the
economy. Marketing as a functional discipline of business may be understood as a dynamic process
of society through which business enterprise is integrated productively with society’s purposes and
human values. The present paper aims to identify current patterns of CRM implementation among
companies in order to investigate whether Best in class companies display higher economic
performance and different characteristics with respect to other companies. Methodology. An online
cross-industry survey was conducted on managers belonging to more than 1000 Italian companies. A
total of 127 complete answers were collected. Cluster analysis on variables and subsequently on the
127 companies was applied to identify patterns of CRM implementation. The segmentation on CRM
implementation we conducted reveals the presence of two groups of companies. “Best in class”
companies show higher economic performance, higher levels of CRM-compatible organizational
alignment and longer previous experience with e-CRM than the other group, namely “Low
performers ". Industry type, company size and main business area (B2C vs B2B) have been found to
not significantly differ between the two identified clusters. Research limits. Insights from the present
study are correlational. The study has been conducted on a convenience sample of Italian companies.
Practical implications. CRM has not been fully adopted by the majority of Italian companies. Profit
and performance gains might be made by companies willing to step up their CRM implementation.
Results encourage CRM adoption by small companies that might be hindered from adopting CRM
systems by the perception of lacking supposed enabling conditions such as size. The 21st century is
the time for digital commerce to flourish. With an ever transforming market and demands for a
more seamless experience, companies are finding new innovative ways to sell their products.
Digitalization has slowly replaced other means of communication, with the advent of Facebook
and other social networking websites. You get to cover a larger base in a shorter time frame. For
startups and young companies having limited capital to spend on marketing, dig ital marketing is
the only money saving method to get their message across a large consumer base, in half the time.
Digital marketing: Digital marketing is marketing of product or services using internet marketing of
product or services using internet marketing or digital technologies. Digital marketing is just not

internet marketing it is also, includes channels that doesn’t require the use of internet such as laptops,
mobile devices etc. digital marketing includes internet marketing, social media marketing, display
advertising, search engine marketing and various other forms of digital media. The Benefits of E-
marketing
Digital-marketing gives businesses of any size access to the mass market at an affordable price and,
unlike TV or print advertising, it allows truly personalized marketing.
Benefits of digital marketing include:
1. Global reach – A website can reach anyone in the world who has internet access. This allows you
to find new markets and compete globally for only a small investment.
2. Lower cost-A properly planned and effectively targeted e-marketing campaign can reach he right
customers at a much lower cost than traditional marketing methods.
3. Track able measurable results-Marketing by email or banner advertising makes it easier to

establish how effective your campaign has been. You can obtain detailed information about
customer’s responses to your advertising.
4. 24-hour marketing-With a website your customers can find out about your products even if your
office is closed.
5. Personalization-If your customer database is linked to your website, then whenever someone
visits the site. You can greet them with targeted offers. The more they buy from you, the more you
can refine your customer profile and market effectively to them.
6. One-to-one marketing-digital marketing lets you reach people who want to know about your
products and services instantly.
7. More interesting campaigns-digital -marketing lets you create interactive campaign using music,
graphics and videos. You could send your customers a game or a quiz-whatever you think will
interest them.
8. Better conversion rate-If you have a website, then your customers are only ever a few completing
a purchase. Unlike other media which require people to get up and make a phone call, post a letter or
go to a shop, e-marketing is seamless

 The biggest advantages which the marketers get when they advertise in electronic devices
is that through word of mouth the information is shared easily to many people that is
when anything which is posted is liked by any using percentages.
 The information or the posts doesn’t focus on a specific location or a particular group of
people it is shared to many people across the globe.
 It increases the brand image and brand loyalty of the company if advertisements are good,
attractive, educational etc.
 The marketers can easily target their audience and according their tastes ads can be
created.
M-commerce: Mobile commerce is the buying and selling of goods and services through wireless
devices such as cellular telephone and personal digital assistance (PDA’S)
The most common services on mobile commerce that leads to digitalization are seen today
Mobile banking: inquire about your bank balance, manage your bank account, remits money and
transact with your bank through your mobile phone.
Mobile browsing and purchase: shopping can now be done on your mobile device and if something
catches your eye, you can immediately purchase it while browsing. This is made faster and easier if
the merchant has an app, instead of browsing their website.
Mobile content purchase and delivery: this is no longer a new concept, since this is one of the
earliest forms of mobile commerce. You can purchase mobile content such as music, games, movies
and even app, instead of browsing their website.
Mobile ATM: Automated teller machine (ATM) transactions, specifically, cash-in and cash-out
transactions, are now considered for widespread mobile application.
Mobile money transfer: now, money can be transferred through the use of mobile device. At
present, mobile companies (such as Vodafone) allow the payment- through cash or bank card- of
phone bills.
Mobile advertising: people check their mobile phones more often than they do their desktop
computers, so marketers and advertisers believe that they will be able to catch the attention of their
target consumers better if they send the promotional and marketing materials directly to them through
their mobile devices.

Customer relation management; Customer relationship management (CRM) is an approach
to manage a company's interaction with current and potential customers. It uses data analysis
about customers' history with a company to improve business relationships with customers,
specifically focusing on customer retention and ultimately driving sales growth. Business people
started using the term Customer Relationship Management (CRM) since the early 1990s when the
concept of business started to change from being transactional to relational. CRM directly contributes
towards customer benefits and the growth of businesses. Information Technology plays a very
critical role in identifying, acquiring, and retaining the customers, and thereby managing a healthy
relationship with them. Ingredients of CRM take a look at the following illustration. It shows the
ingredients that work together to form a successful CRM system. Here are some of the important
ingredients of CRM:
 Analytics – Analytics is the process of studying, handling, and representing data in various
graphical formats such as charts, tables, trends, etc., in order to observe market trends.
 Business Reporting – Business Reporting includes accurate reports of sales, customer care,
and marketing.
 Customer Service – Customer Service involves collecting and sending the following
customer-related information to the concerned department:
Objectives of CRM
The most prominent objectives of using the methods of Customer Relationship Management
are as follows:
 Improve Customer Satisfaction – CRM helps in customer satisfaction as the
satisfied customers remain loyal to the business and spread good word-of-mouth.
This can be accomplished by fostering customer engagement via social networking
sites, surveys, interactive blogs, and various mobile platforms.
 Expand the Customer Base – CRM not only manages the existing customers but
also creates knowledge for prospective customers who are yet to convert. It helps
creating and managing a huge customer base that fosters profits continuity, even for
a seasonal business.
 Enhance Business Sales – CRM methods can be used to close more deals, increase
sales, improve forecast accuracy, and suggestion selling. CRM helps to create new
sales opportunities and thus helps in increasing business revenue.

 Improve Workforce Productivity – A CRM system can create organized manners
of working for sales and sales management staff of a business. The sales staff can
view customer’s contact information, follow up via email or social media, manage
tasks, and track the salesperson’s performance. The salespersons can address the
customer inquiries speedily and resolve their problems.
E-commerce: Electronic commerce is the process of buying, selling, transferring or exchanging of

products, services or information via computer networks, including the internet. E-commerce is a
modern business methodology that addresses the needs of organization, merchants and consumers to
cut costs while improving the quality of goods and services and increasing the speed of service
delivery.
TECHNOLOGIES OF E-COMMERCE
While many technologies can fit within the definition of "Electronic commerce," the most important
are:
Electronic Data Interchange (EDI)
EDI is the computer-to-computer exchange of structured business information in a standard

electronic format. Information stored on one computer is translated by software programs into
standard EDI format for transmission to one or more trading partners. The trading partners’
computers, in turn, translate the information using software programs into a form they can
understand.
Bar Codes
Bar codes are used for automatic product identification by a computer. They are a rectangular pattern
of lines of varying widths and spaces. Specific characters (e.g. numbers 0-9) are assigned unique
patterns, thus creating a "font" which computers can recognize based on light reflected from a laser.
The most obvious example of bar codes is on consumer products such as packaged foods. These
codes allow the products to be scanned at the checkout counter. As the product is identified the price
is entered in the cash register, while internal systems such as inventory and accounting are
automatically updated. The special value of a bar code is that objects can be identified at any point
where a stationary or hand held laser scanner could be employed. Thus the technology carries
tremendous potential to improve any process requiring tight control of material flow. Good examples
would be shipping, inventory management, and work flow in discrete parts manufacturing.

Electronic Mail
Messages composed by an individual and sent in digital form to other recipients via the Internet.
Internet
The Internet is a decentralized global network of millions of diverse computers and computer
networks. These networks can all "talk" to each other because they have agreed to use a common
communications protocol called TCP/IP. The Internet is a tool for communications between people
and businesses. The network is growing very, very fast and as more and more people are gaining
access to the Internet, it is becoming more and more useful.
World Wide Web
The World Wide Web is a collection of documents written and encoded with the Hypertext Markup
Language (HTML). With the aid of a relatively small piece of software (called a "browser"), a user
can ask for these documents and display them on the user’s local computer, although the document
can be on a computer on a totally different network elsewhere in the world. HTML documents (or
"pages," as they are called) can contain many different kinds of information such as text, pictures,
video, sound, and pointers, which take users immediately to other web pages.
Objectives of the study:
 To know the importance or advantages of digital marketing and m-commerce, customer

relationship in the present word
 To identify the problem of digital marketing and to find overcome those problem.
Research questions
 following research questions were set up for achieving the research objectives;
 what is the demographic profile of the customer using digital channel of communication
while buying a product ?is there any preferred channel of communication use by customer
buying a product
 What is consumer attitude towards digital communication in Indian digital or traditional
market?
 What is the impact of digital marketing communication while buying product on consumer
buying decision process?
 Are there any factors related to digital marketing communication that could be leveraged by
marketers to alter the consumer behavior?

Research methodology
The present study is descriptive research based on the questionnaires administered to the people
in Bangalore. The required information was collected from 50 respondents where targeted
random sampling method was used.
 Collection of data: for the study, the required data was collected from primary sources
and secondary sources. The data is being collected from 50 people.
 Primary data: a questionnaire was being prepared by us, to collect the data from the
youth living in Bangalore for this study. There were different types of questions being
used in the questionnaire, such as open-ended questions and close ended questions.
 Secondary data: For the study, few definitions and some data were collected from
newspapers, journals, articles for our reference and for better understanding.
 Statistical analysis: The study was conducted among the youth group of the population in
Bangalore. The youth being the most people who use social media network, watch
television etc. the data collected was analysed mainly through descriptive statstistics.
90
80
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60
50
40
30
20
10
0
users of non user
internet of
internet

HOW DIGITALISATION IN MARKETING LEADS TO ECONOMIC GROWTH
Digitalization is the process by which technology lowers the costs of storing, sharing, and analyzing
data. This process has changed how consumers behave, how industrial activity is organized and how
governments operate. The economics of digitalization exists as a distinct field of economics for two
reasons. First, new economic models are needed because many traditional assumptions about
information no longer hold in digitized world. Second, the new types of data generated by
digitalization require new methods to analyze.
100
90
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60
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10
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
India’s digital economy in 2017–18 accounted for 8% of nominal GDP, or about $200 billion,
according to estimates of MGI. The report mentioned that most of this value - nearly $170 billion -
comes from core sectors that already provide digital products and services at scale, including IT and
business process management (IT-BPM), $115 billion; digital communication services, including
telecommunications, $45 billion; and electronics manufacturing, including mobile handsets $10
billion. The remaining value comes from early scaling of newly digitising sectors and applications
like e-commerce and direct benefit transfers. “We anticipate lot more new data driven business
models and ecosystems are coming up in agriculture, healthcare, logistics, energy, education and
financial services collectively could generate huge amounts of economic value by 2025,” said Anu
Madgavkar and Alok Kshirsagar, partners and co-authors of the report . A sharp rise in number of
smartphones has contributed to the all-encompassing digital growth in the country. The number of
smartphones and internet subscriptions could continue to go up rapidly in the next five years. “We
estimate that India could add as many as 350 million smartphones, more than doubling its absolute

level. Just as data costs have fallen sharply and sparked a sharp increase in usage, smartphone
penetration has grown rapidly as average prices have fallen,” said Madgavkar and Kshirsagar.
Disadvantages of digital marketing:
 Dependability on technology
 Security, privacy issues
 Maintenance costs due to a constantly evolving environment
 Higher transparency of pricing and increased price competition
 Worldwide competition through globalisation
Concluding remark and proposal:
Digital channel in marketing has become essential part of strategy of many companies. Nowadays,
even for small business owner there is a very cheap and efficient way to market his/her products or
services. Digital marketing has no boundaries. Company can use any devices such as smartphones,
tablets, laptops, televisions, game consoles, digital billboards, and media such as social media, SEO
(search engine optimization), videos, content, e-mail and lot more to promote company itself and its
products and services. Digital marketing may succeed more if it considers user needs as a top priority.
Just like “Rome was not built in a day,” so, digital marketing results won’t also come without attempt,
without trial (and error). The watchwords “test, learn and evolve” should be at the heart of all digital
marketing initiatives. Companies should create innovative customer experiences and specific
strategies for media to identify the best path for driving up digital marketing performance.
Bibliography:
https://marketingland.com/much-b2b-companies-invest-digital-marketing-204623
https://digitalagencynetwork.com/10-ways-you-can-use-instagram-stories-to-grow-
your-business-in-2019/

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Seshadripuram Journal of Social Sciences (SJSS)

Peer reviewed Open Access National Journal

Digitalization and Economic Growth – In Marketing

Seshadripuram Research Foundation, Bengaluru Page 166

Benefits of digital marketing include:

3. Track able measurable results-Marketing by email or banner advertising makes it easier to

Seshadripuram Research Foundation, Bengaluru Page 167

Seshadripuram Research Foundation, Bengaluru Page 168

Seshadripuram Research Foundation, Bengaluru Page 169

E-commerce: Electronic commerce is the process of buying, selling, transferring or exchanging of

Electronic Data Interchange (EDI)

EDI is the computer-to-computer exchange of structured business information in a standard

Seshadripuram Research Foundation, Bengaluru Page 170

World Wide Web

Objectives of the study:

 To know the importance or advantages of digital marketing and m-commerce, customer

Seshadripuram Research Foundation, Bengaluru Page 171

Seshadripuram Research Foundation, Bengaluru Page 172

Seshadripuram Research Foundation, Bengaluru Page 173

Disadvantages of digital marketing:

Concluding remark and proposal:

Seshadripuram Research Foundation, Bengaluru Page 174

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