BITS Pilani

Pilani Campus

Digital Marketing

BITS Pilani Nirankush Dutta

Pilani Campus
Question for Marketers
• What are the options for digital marketing to grow our
business?
• What are the key benefits of digital marketing?
• What differences do digital media introduce compared to
existing marketing communications models?

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Online Opportunities

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Online Opportunities…contd.

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Digital Marketing: Definition
• Achieving marketing objectives through applying digital
technologies
• Customer-centric digital marketing involves applying digital
technologies which form online channels (Web, e-mail,
databases, mobile, iPTV) to contribute to marketing activities
aimed at achieving profitable acquisition and retention of
customers (within a multi-channel buying process and
customer life cycle) through improving customer knowledge
(of their profiles, behaviour, value and loyalty drivers), then
delivering integrated targeted communications and online
services that match their individual needs

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Some More Definitions!
• E-Commerce: Digitally enabled commercial transactions
between and among organizations and individuals
• E-Business: Digital enabling of transactions and processes
within a firm, involving information systems under firm’s
control.
• E-Business does not include commercial transactions involving
an exchange of value across organizational boundaries

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How Do Digital Technologies
Contribute to Marketing?
• Marketing is the management process responsible for
identifying, anticipating and satisfying customer requirements
profitability (Chartered Institute of Marketing)
• Identifying – the Internet can be used for marketing research
to find out customers’ needs and wants.
• Anticipating – the Internet provides an additional channel by
which customers can access information and make purchases
– evaluating this demand is key to governing resource
allocation to e-marketing.
• Satisfying – a key success factor in e-marketing is achieving
customer satisfaction through the electronic channel, which
raises issues related to ease of use of the site, performance
parameters, standard of customer service and delivery
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Market Research vs. Market Reality

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3i Principle
• Initiate
• Iterate
• Integrate
– Across digital channels
– Digital and traditional marketing efforts
– Reporting sources

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Benefits of Digital Marketing
• Sell
• Serve
• Speak
• Save
• Sizzle

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Application of Digital Marketing
• An advertising medium
• A direct-response medium
• A platform for sales transactions
• A lead-generation method
• A distribution channel
• A customer service mechanism
• A relationship-building medium

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 Planning for Digital Marketing
Company
How
How do
exactly
we get
dothere?
we get there? How do we monitorCompetitors
performance?
•(The
Segmentation,
details of strategy) • 5Ss + web analytics
targeting and positioning Customer
– KPIs
Collaborator
•• Online
E-marketing Proposition (OVP) • Usability testing /Climate
Value mix mystery shopping
• Sequence
• Including
(credibility
the communication • mix,
before visibility) social satisfaction
Customer networking,surveys
what
• Integration
happens when(consistent
Where OVP) and
are we • database
now? Site visitor profiling
•• Tools
Details(web,
of contact
functionality,
• strategy e-mail,• IPTV
Goal performance etc.) of reporting
Frequency
(5Ss)
• E-campaign
Where initiative
do we want schedule
• toCustomer
be? • Process of reporting and actions
insight
5Ss objective • E-Marketplace SWOT
• Internal &
• Sell- customer acquisition capabilities The
& details of tactics
resources
retention target
• Serve- customer satisfaction target Who does what and when
• Sizzle- site stickiness, visit duration • Responsibilities & structures
• Speak- trialogue, number of engaged customers • Internal resources & skills
• Save- quantified efficiency gain • External agencies
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Situation
• Connected world
– Digital marketing platforms
• Desktop, laptop and notebook
• Mobile phone and tablet
• Other hardware platforms (gaming, indoor and outdoor kiosk-type
apps, interactive signage)
– Research trends and forecasts
• Google insights tools (Google Display Planner, Google Trends,
Keyword Planner), SimilarWeb / Alexa, Nielsen, ComScore, Govt.
sources (Eurostat, Ofcom), NGO (Pew Internet Surveys)
• B2C, B2B, C2B, C2C

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Options for Online
Communications

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Situation
• Connected world
– Digital marketing platforms
• Desktop, laptop and notebook
• Mobile phone and tablet
• Other hardware platforms (gaming, indoor and outdoor kiosk-type
apps, interactive signage)
– Research trends and forecasts
• Google insights tools (Google Display Planner, Google Trends,
Keyword Planner), SimilarWeb / Alexa, Nielsen, ComScore, Govt.
sources (Eurostat, Ofcom), NGO (Pew Internet Surveys)
• B2C, B2B, C2B, C2C
– Transactional e-Commerce site, Services-oriented relationship
building of lead-generating web site, Brand building site, Portal or
media site, Social network site

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Key Digital Marketing Activities

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E-Communication Tools

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Digital Marketing Sloppiness

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Digital Customers
• Online vs. offline behaviour
• More powerful
• Visually driven
• Multitasking
• Shrinking attention
• Think global, but act local
• Changing media consumption
• More freedom of expression; liberty
• Privacy & trust
• Information overload
• Do you know your ideal customers?
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Customer Engagement
Involvement
– Purchase frequency • Intimacy
– Frequency of site visit – Expressiveness
– Change in duration of stay • Influence
in the site – Referral
– Key service interaction
– Minor service interaction
Interaction
– Visit to discussion area /
blogs
– Participate in discussion /
review / UGC
– Connections
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Motivation
• Group behaviour
– Mexican wave 6C’s of Customer Motivation
• Socializing 1. Content
2. Customization
– Maslow’s hierarchy of needs theory
3. Community
• Product information 4. Convenience
• Convenience 5. Choice
• Price advantage 6. Cost reduction
• Entertainment
• Are the consumers rational? Trigger
Motivation
Ability

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De Kare-Silver’s electronic shopping
test
• Product characteristics
• Familiarity and confidence
• Consumer attributes

• Typical results from evaluations

– Groceries (27/50)
– Mortgages (15/50)
– Travel (31/50)
– Books (38/50)

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Expectations
• Service
• Convenience
• Delivery speed
– 2 seconds delay resulted into 4% revenue loss for Microsoft
– Correlation between download speed and conversion rate
• Price
• Choice
• Safe & secure
• Understand aspiration, motivation, expectation ->
Communicate -> Deliver

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Customer Expectation for Online
Retail Purchase
• Easy to find information
• Ease of use of site
• Price and service
• Delivery details
• Email notifications
• Privacy and security
• Verification of high value orders
• Timely delivery
• Returns policy

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Fears & Phobias
• Security • Information Overload
– Identity theft • How fast do you make
– Hackers friends or respond online?
– Viruses
– Spam • Provide clear and effective privacy statements
• Privacy • Follow privacy and consumer protection
• Cyber stalkers guidelines
• Make customer data security a priority
• Hate mail
• Present independent site certification
• Fake mail • Emphasize service quality in all communications
• Mail bombs • Use content on site to reassure customers
• Paedophiles • Cultivate leading edge design

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Customer Profiles: B2C
• What proportion of customers
– Accesses a particular channel?
– Are influenced by a particular channel?
– Purchase using a particular channel?
• Profiling B2C Customers
– Access to channel
• Access Location
• Access Device
• Webographics
– Influenced online
– Purchased online
• Geo-targeting and Behavioral targeting
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Customer Profiles: B2B
• Information about organization
• Information about individual
• Decision making stage
• Hot or cold prospect

• Decision Making Units

– Purchaser
– Adviser
– Gatekeeper
– End user
– Starter
– Intelligent bot!
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Researching the Online Customer
• Demographic / Psychographic / Behavioral
• Needs
• Time / occasion of purchase
• Attitude compared to competitors
• Persona: thumbnail description of a type of person
– Primary persona
– Secondary persona
– Complementary persona
• Customer scenario: set of tasks a particular customer wants or
needs to do to accomplish desired outcome
• Pre-launch and post-launch research

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Online Research Techniques

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Video Case: The Importance of the
Internet for E-commerce
• Source: https://www.youtube.com/watch?v=zQjaqn5BqfQ
• Questions
– 1. What are some examples cited in the video as to how a
customer might use the Internet on a typical morning?
– 2. Why is a company’s Web presence important for attracting
and retaining new customers?
– 3. According to the video, how important are Web applications?

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Video Case: The Future of E-
commerce
• Source: http://www.youtube.com/watch?v=EoaOy2sTRKk
• Questions:
• What other current Internet trends do you see as having an
effect, negative or positive, on Internet spending? Explain
your answer.
• Fulgoni refers to two major factors that drive consumers to
purchase online rather than in physical stores: convenience
and lower prices. What other factors might drive a consumer
to purchase a product online rather than from, say, the local
Walmart? What are the advantages of purchasing at a store?

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Video Case: The Future of E-
commerce
• Fulgoni states that the ability of consumers to use
smartphones to scan barcodes at physical stores and seek
lower prices could radically alter retailers’ decisions in locating
and designing stores and warehouses. He specifically
mentions retailers reducing the size of physical stores, and
using these stores more as demonstration venues with less
inventory, and placing warehouses in lower rent locations.
Explain the rationale behind this. Are there any disadvantages
in this solution?

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