Stages of evolution of marketing eras

• Trade era
• handmade products -> limited supply
• Production era
• mass production of products
• Consumer focus on low cost and availability
• Product era
• consumer focus on product quality, performance, and innovativeness
• Sales era
• Aggressive selling and promotion, commoditization of products -> saturation of consumer demand
• Marketing era
• Differentiators like pricing, distribution, and promotion became important
• Relationship era
• Customer being valued for long term relationship
• Digital era (or social/mobile era)
• Real time, social exchange based marketing
Premise of Traditional marketing
Traditional marketing used one – way communication rather than interactive.
Some important traditional tools are –

Print Marketing (Newspapers/Magazines/Direct Mailers/Catalogues)

Broadcasting (Television/Radio)

Out of Home Marketing (Billboards)

One-to-One Marketing (Telemarketing)

Factors Impacting the Shift From Traditional To Modern

Power shift from Business to Consumer

Growing amount of communication channels
Consumers preference to interactive mediums
The need to validate marketing with product and service recommendations
The need for comparison of product benefits to take informed decisions
Higher interaction with product
Marketing has shifted to being a discovery-led immersive exercise
Platforms and techniques of modern
marketing
• Search marketing
• Online advertising
• E-mail marketing
• Social media marketing
• E-commerce
• Digital on traditional mediums
• E.g., set top box for TV can be integrated with internet enabled features to
support digital sales
Evolution of digital marketing

 From Traditional to Modern Marketing

 Rise of the Internet - The Dotcom Era
 Post Dotcom - Creation of Internet Business Models
 Growth and impact of search technologies
 From web 1.0 to web 2.0 – changing nature of web
 The Growth of ‘E’ Concepts- From E-Business to Advanced E-Commerce
 Digital - the Next Wave of Marketing
Key differences between web 1.0 and web
2.0
Areas of comparison Web 1.0 Web 2.0

Information discovery Read only web Read-write web

Publish and subscribe
Information retrieval transactional relationship

Information aggregation Commercial aggregators Micro aggregators

Web forms Web applications
Directories (taxonomy) Tagging (folksonomy)
Marketing and sales Push – contextual Conversational ; personal
Page views Cost per click
Low targeting Individual targeting
Content control Publishers Content authors
Singularity Collaboration
Portals Really simple syndication (RSS)
Content structure Domain and pages Tagged objects
Static site Dynamic site
E-models
• “E” stands for “electronic networks”
• E-business
• Application of ICT to support physical processes and activities of any business
• E-commerce
• It is considered to be the sales aspect of e-business
• E-commerce strategy involves marketing mix to drive users to website or marketplace for purchase of
product or service
• Revenue oriented
• Focus toward technology investments for commerce and better collaboration with internal – external
tools to carry out the sales process
• E-marketing
• Facilitates the transition of physical marketing and sales based activities to automated, technology
supported systems
• Has broader coverage and includes e-CRM, digital customer data
Online/internet and digital marketing
• Online/internet marketing
• Started with reference to internet and e-mail based aspects of physical
marketing
• Has grown to include all marketing activities to web and online platforms
• Digital marketing
• Consumer and data based technology implementation
• Integration of new technology for data oriented targeted marketing ->
personalization
• Use of marketing automation tools for lead generation/reverse auction
platforms, search marketing, social media marketing etc.
Comparison
of E-models
Stakeholder based
digital
transformation
model

Digital marketing typically correspond to the consumption function

Definition of marketing
• “The activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value
for customers, clients, partners, and society at large”.
American Marketing Association
Digital marketing definition
The management and execution of marketing using electronic media such as the
web, email, interactive TV, wireless media in conjunction with digital data about
customers characteristics and behaviour
Institute of Direct and Digital Marketing

Digital marketing, by definition, cannot change the physical attributes of the

product but in reality it does much more to make it more marketable than
competitive. With the use of testimonials, customer reviews, positive social
feedback, and product championing by top adopters, marketers are able to
influence key buyer groups and create a positioning in their mind which adds
tremendously to a positive marketing influence.
Modern vs traditional marketing
• Interactivity
• Engagement
• Agility
• Conversions
• Personalization
• Brand imagery
• Social involvement
Reasons why digital scores over traditional
• Audience targeting
• Cost leverage
• Actionable reporting
• Location based messaging
• Quicker funnel fulfilment (awareness -> action)
• Multi channel reach (integrated marketing)
• Instant customer interaction
Push and Pull marketing
• Medium-initiated contact (Push marketing): This is the traditional type of
marketing where marketing messages are packaged with information pre-
configured for a particular set of users.
• Consumer-initiated contact (Pull marketing): Pull marketing involves a
consumer placing his intent and specific interest for a particular type of
information and being offered that information along with marketing
messages suited to his intent, query, or profile-based interests.
• Digital marketing includes all those techniques and concepts that utilize
the intent (pull-based) action of the consumer to market products and
services (in a push-based manner) which would be most needed, relevant,
and of interest to him/her.
Media drivers of new marketing environment
• Emergence of internet
• Rise of millennial generation or Generation Y (those born during the 1980s
and early 1990s)

• Technology advancements in devices and investments in hardware,

infrastructure, location positioning and device memory

• Advancements in design/UI is becoming crucial.

• Consumerism/rising global economies

Consumer
behaviour
model
Marketing funnel
• Marketing funnel is also referred to as purchase funnel, customer
funnel, or sales funnel
• It explains how a marketer or consumer goes through the various
stages of marketing and consumption to finally purchase any product
or service.
REAN
marketing
engagement
framework
Digital marketing types
Intent based marketing (search marketing)

Brand marketing (display/digital advertising)

Content marketing (website, blog, native content)

Community based marketing (social media, business communities)

Partner marketing (affiliate marketing, sponsorship, PR)

Communication channel marketing (email, messaging, SMS)

Platform based marketing (mobile, video, out of home, kiosks, in-apps)

5S framework
• 5S of digital marketing are a simple framework to review and define
the top-level goals of digital marketing in an organization
• Sell – Grow sales
• Serve – Add value
• Speak – Get closer to customers
• Save – Save costs
• Sizzle – Extend the brand online
7Ds of managing digital marketing
Types of media
 RACE framework

strategic planning
of digital marketing
activities or
omnichannel
communication
plans
Marketing
technology stack
Marketspace and marketplace
• According to a Harvard Business Review article the value creation
exercise differs between a marketplace and a marketspace. In a
marketplace, the three differentiating concepts of content, context,
and infrastructure are all combined as an entity to provide the
experience, while in a marketspace the marketer can utilize and build
upon each of the three components as unique differentiators by
themselves which individually can build unique differences difficult to
replicate otherwise.
Advantages of digital over traditional
• Audience Targeting
• Cost leverage
• Actionable reporting
• Location-based messaging
• Quicker funnel fulfilment
• Multi-channel reach
• Instant customer interaction
Key Benefits
• Provides a level-playing field
• Much cheaper to run campaigns, collaborate, and analyze insights
• Helps to reach out to customers in real time based on their latest actions
• Easier to measure effectiveness of a campaign or a marketing message
• Viral effect includes ability of a strong concept to reach the mass market instantly
• Provides greater engagement with the use of imagery, content, information, customer support, and
personalization
• Utilizes multiple technologies and collaborative platforms available to harness the power of big data and
internet reach
• Acts as a medium to understand customer segments and their actions better
• Helps understand customer intent across multi-channel platforms
• Utilizes the power of social networks to reach out to multiple users in a trusted environment
• Integrates traditional campaigns to extend the reach of branding to its longest possible tail
opportunities
1. Reaching out to new set of prospects and leads
2. Improving customer connect
3. Increasing availability
4. Multiple pricing options
5. Reaching international markets
 Digital marketing revenue models
Revenue Models Explanation Key types Examples Fulfillment type

Advertising based Fees from advertisers in CPA, CPM, CPC Yahoo Online websites/portals;
revenue models exchange for advertisements interest blogs; mobile
sites and apps
Subscription based Fees from subscribers in Portal subscription, WSJ.com, consumer Web portals, info-
revenue models exchange for access to content information-based reports.org educational websites,
or services subscription, service premium services sites
subscription
Commerce based Direct revenue from sales Pay-per content Amazon, Flipkart, iTunes E-commerce sites,
revenue models happening through commerce product websites, mobile
(direct sales) sites and portals sites, and apps
Transaction Fees (commissions) for Pay-per referral My points E-commerce sites,
fee/affiliate enabling or executing a content websites, mobile
revenue model transaction or for business sites, and apps
referrals
Social collaboration Pull-through revenue from Pay –per lead Facebook, WhatsApp Social media sites,
based revenue leads generated through social portals, interest blogs,
model media sites and interest blogs messaging services
Digital marketing business models
• Search engines
• Maps customer searched content to pre-classified content
• Content aggregators
• Companies/websites which aggregate content pieces from various sources
• Vertical portals
• Niche content companies which focus on only particular vertical (e.g., onlye marketing related
articles)
• News, views, articles, forums only related to one particular subject area
• Marketing apps
• Content licensing
• Content is leased or licensed to other websites, to create other content based offerings or
packages, a portion of which is then paid original content producers
Internet marketing challenges
• Investment
• Getting a firm to invest in IT
• Marketing is seen as a cost centre
• Adoption
• Clear strategy is to be adopted by company divisions to meet the objectives
• Resource
• Hiring/internal grooming of resources to execute digital marketing
• Training
• Provide right kind of training and establish deliverables
• Integration
• Integration across departments and end channels
• Establishing RoI
• Establish cause and effect
• Consistent reporting for follow up
key areas of investment and management
• Governance: Goals – Analytics, Strategy (Segmentation, Targeting,
Brand Positioning), integration, marketing and sales alignment,
resourcing, structure, marketing technology and data
• Media: Paid, owned, earned media i.e. Search, Social and Display ads
• Experience: Desktop / mobile website and apps. Customer service
• Messaging: Email, Chat, Social media, on-site interactions and
personalization
• Content: Product and blog content, PDF downloads, Interactive tools
6i Model
• The model help create a compelling reason for any product/service to
be marketed online
• Intent-based
• Interactive
• Immersive
• Immediate
• Interesting
• Informative
Key types of interactions
• Information Seeking Interactions
• Problem-solving Interactions
• Community Interactions
• Activity/promotions-based Interactions
• Expert opinion Interactions
• Feedback eliciting Interactions
Online marketing mix
Integrated Marketing Communications (IMC)
• “IMC is a concept of marketing communications planning that
recognizes the added value of a comprehensive plan that evaluates
the strategic roles of a variety of communications disciplines (for
example, general advertising, direct response, sales promotion, and
public relations) and combines these disciplines to provide clarity,
consistency, and maximum communications impact.”
Factors driving IMC adoption
1. Decreasing message impact and credibility
2. Decreasing cost of using databases
3. Increasing client expertise
4. Increasing mergers and acquisitions of agencies
5. Increasing mass media costs
6. Increasing media and audience fragmentation
7. Increasing global marketing
8. Increased number of competitive products
Channels for IMC
• Advertising: It includes broadcasting/mass advertising (print, internet advertising, radio, television
commercials) and outdoor advertising (billboards, street furniture, stadiums, rest areas, subway
advertising, taxis, transit).
• Sales promotion: Contests, coupons, product samples (freebies), premiums, prizes,
refunds/rebates, special events, bonus packs, loyalty programs, sales materials (sell sheets,
brochures, presentations), installation, customer help, returns and repairs, billing.
• Public relations: includes special events, interviews, conference speeches, industry awards, press
conferences, testimonials, news releases, publicity stunts, community involvement, charity
involvement, and events.
• Direct marketing: refers to direct mail, telemarketing, catalogs, shopping channels, internet sales,
emails, text messaging, websites, online display ads, fliers, catalog distribution, promotional letters
• Digital/internet marketing: This being the latest addition to IMC includes all the digital marketing
and communication channels like search, display, content, community, partner, communication,
partner marketing
 Value chain digitization
• A value chain is
defined as a chain of
activities that a firm
operating in a specific
industry performs in
order to deliver a
valuable product or
service for the
market.
 Digital value elements
Value elements essentially are the set of key differentiators which when used
individually or in conjunction with each other provide a unique compelling
proposition for any customer to buy a product from online rather than physical
channels:
1. Convenience
2. Variety
3. Cost
4. Aesthetics
5. Communication
6. customization
Factors impacting digital marketplace
 From Brick and Mortar (offline) to Bricks and Clicks (offline + online)
 Growth of Interactive Platforms (two way interaction)
 The New Network Economy
 From Marketplaces (offline) to Marketspaces (online)
 Changing Sales and Customer Service Patterns
characteristics of the modern consumer

• Around-the-clock-shopping
• Consumers are in control
• Omnichannel shopping
• Content consumers
• Global experience
• Collaborators
• Social sharers
Types of web users

1. Directed information-seekers
2. Undirected information-seekers
3. Directed buyers
4. Entertainment seekers
5. Bargain hunters
 Types of consumer demands
• Negative demand: consumers dislike the product and may even pay a price to avoid it
• Non-existent demand: consumers may be unaware or uninterested in the product
• Latent demand: consumers may share a strong need that cannot be satisfied by an existing
product
• Declining demand: consumers begin to buy the product less frequently or do not buy at all
• Irregular demand: consumer purchases vary on a seasonal, monthly, weekly, daily, or even
hourly basis
• Full demand: consumers are adequately buying all products available in the marketplace
• Overfull demand: more consumers would like to buy the product than can be satisfied
• Unwholesome demand: consumers may be attracted to products that have undesirable
social consequences
 Concept of Network
Type of Network Effects
The Network Economy Phenomenon
1. Direct network effects- where increase in usage of a
The concept of network economy particular good or service leads to a direct increase in
involves value being added to value and subsequent adoption for other users.
products and services through social
networks operating on a large or 2. Indirect network effects- where increase in the usage of
global scale. The core principle one product or service augments the value of a
behind this economy is termed as complimentary product or service which in turn raises the
the “network effect.” which states value of the original product.
that a product displays positive 3. Two-sided network effects- where increase in the usage
network effects when increasing by one set of users increases the value of a
usage by a user augments the complementary product to another set of users distinct
product’s value for other users (and from the first set and vice versa.
sometimes all users).
4. Local network effects- where the micro-structure of the
networks influences how much network effects matter to
each group.
Building blocks of web experience
• Functionality Factors
• Usability
• Interactivity
• Psychological Factors
• Integrity
• credibility
• Trust
• Content Factors
• Aesthetics
• Marketing Mix
factors impacting consumer demand
• Consumer Factors
• Product Factors
• Micro Factors
• Macro Factors
Customer relationship management
• CRM is defined as a company wide strategy of managing interactions with
potential and existing customers to improve profitability.
• All customer touchpoints are integrated and managed to deliver consistent
customer experience across platforms.
• Touch point data analyzed to build CRM
• Modern CRM systems are an outcome of
• Relationship marketing
• Direct marketing
• Database marketing
• Building blocks of CRM systems
• Insights about customers
• Information about customer’s decision making
• Information processing capability
CRM functions
• Marketing
• Customized e-mails
• Support
• Previous Customer interactions are available to service representatives based
on customer identifiers such as their contact numner
• Sales
• Reports are generated for leads, conversions, sales and services
• Loyalty
• Help customer climb up the loyalty ladder
• Contract management, lead scoring, forecasting etc.
Customer loyalty ladder
• Suspect – fits your market
• People may become interested if the company made efforts
• Prospect – supplied details
• People show interest and search for detials
• Customer- buy
• Those prospects who purchase one-time but do not show loyalty
• Client
• Customers show a tendency for repeat purchase
• Advocate
• Customers recommend the brand to their friends and relatives
• Fans
• Customers show deep loyalty and start thinking of brands as an extension of their personality
Key CRM applications
• Contact management
• Information on leads, personalized messages
• Customer opportunity management
• Identify customer opportunities
• Decide level of engagement
• Lead management
• Identify high quality leads based on readiness to buy
• Use of demographic and psychographic data
• Reports and dashboards
• Real time reporting
• Traffic and conversion ratio
• Sales analytics
• Social media data, poll, website traffic, campaign effectiveness
• Sentiment analysis
• Track and analyse customer feelings about the brand
e-CRM
• e-CRM is the process of gathering data and data analytics to build customer
profiles and devising strategies and methods to move customers up the
loyalty ladder.
• It is a philosophy and business strategy, supported by technology, business
rules, work flow, processes, and social characteristics designed to engage
the customer in a collaborative conversation to provide mutually beneficial
value in a trusted and transparent business environment.
• It uses internet based technologies such as e-mail, website, chatrooms,
social media, discussion forums, and other channels to achieve the objective
of keeping in touch with the customers.
• Tracks customers over their decision journeys in real time.
Benefits of e-CRM
• Improves customer relations, service, support, customer satisfaction, and
loyalty
• Improves customer orientation in organization
• Improves precise and individually tailored offerings that match customer’s
needs
• Improves efficiency and cost reduction, leading to profitability
• Improves lead generation, sales support, and builds a friendly company
image
• Improves identification of best customers and helps company focus on them
• Drives customer centric innovation
 Driving traffic
• Organic traffic methods • Paid traffic methods
1. SEO
1. Google adds
2. Content
3. Quora 2. Social media adds
4. Youtube tutorials 3. Influencer marketing
5. Social media 4. Partner for paid
6. Email marketing giveaways
7. Update content
8. Free online course 5. Re-targeting ads
9. Create and share infographics
10. Surveys
11. Mobile friendliness
12. Implement content delivery
network and browser caching tools
13. Free webinars
14. SlideShare presentations
Channels of purchase

Pull based
Verticle sites, price
Personal blogs, comparison sites,
curated apps affiliates, value
Sales orientation

added resellers

E-commerce sites,
Main website marketplaces, web
Push based

and micro sites portals, product

listings

Direct sales Indirect sales

Channel ownership
Promotional channels

Reach Engage Activate

• Search marketing • Content marketing • Interest based
• Display • Public relations marketing
advertising • Special interest • Social targeting
• E-mail marketing marketing • Retargeting
• Affiliate marketing • Viral marketing • Response
• Social media sites • gamification marketing
• Custom
recommendations
Media
• Media channel: It is the medium/platform through which brands communicate their message to
target audiences.
• Media vehicle: It includes the specific methods used by companies to deliver the
communication message, for example, advertisements placed in a TV or a radio program.
• Media audience: The target audience which consumes a particular communication message
placed onto a channel.
• Media schedule: In traditional media planning, specific insertion dates or time periods (parts of
the day in case of broadcasting) were chosen to share promotions.
• Media budget: With digital channels, marketers need to think and invest in multiple other
factors like market research, customer profile development, testing strategies, costs of tracking
and monitoring, purchasing analytical products, etc.
• Media delivery: Finally, there are concepts of media delivery like reach, frequency, impressions,
etc., which have differing connotations and strategies in the online world
Media plan concepts
• Reach: refers to the total number of potential audience exposed to media during the plan time
period at least once.
• Response: includes the actual audience who actually read, viewed, or made a web visit and
performed an action which is related and is important for marketer’s promotion.
• Relevance/impact: involves looking at the relevance or context of a particular promotion in relation
to the media vehicles chosen.
• Timing and scheduling: relates to decisions taken by a firm for its specific set of products to
determine the period for promotions run and the way they would be scheduled for maximum
impact.
• Cost: includes the basis on which costs are calculated to communicate different types of
promotions. Digital media is typically bought as cost per million impressions (CPMs).
• Frequency: It involves the number of times a particular promotion is exposed to a person during
the media plan.
• Media plan RoI: It refers to the overall RoI which a marketer would achieve based on the total
amount spent on a particular media plan across all the media channels and promotions combined.
Media plan concepts
• Web visits: A visit refers to a visitor’s session on all the firm’s product sites within a
particular period of time. During the session, the user might view multiple pages but the
overall session is counted as a single one.
• Page visits: involves the number of people visiting a particular page of the firm’s website.
This could be the homepage or a landing page specifically created to channel pre-defined
consumer actions across the funnel.
• Unique visitors: refers to the number of unique individuals that visit a website within a
specific timeframe. The two methods to track unique visitors include tracking cookies or
unique IP addresses.
• Impressions: impressions relate particularly to display ads placed on multiple webpages and
are the sum total of responses from a web server to a page request from the user browser.
• Page views: The total number of unique pages viewed by a person in a particular session
would be the page views for that session.
Media plan concepts
• Clicks: The opportunity for a user to download another file by clicking an
advertisement, as recorded by the server. After impressions count, this is the
next stage in the conversion funnel for advertising.
• Click-through: The action of following a link within an advertisement or
editorial to another website or page or frame within the website.
• CPM (cost-per-thousand): defines the cost of serving 1000 impressions. Almost
all digital media buys are executed using this metric.
• CPC (cost per click): Cost of advertising based on the number of clicks received.
• CPA (cost per action): Cost of advertising based on a visitor taking a specifically
designed action in response to an ad. Actions could include sales transaction,
customer acquisition, or a click.
Core elements of media plan
• Channels (e.g., social media, email, mobile)
• Affiliates (e.g., reward/loyalty sites, coupon sites)
• Content creators
• crowdsourcing and curating relevant user-generated content
• pay content producers
• Costumers
• Discounts, coupons, cashbacks for writing product feedback
• Make customers influencers/advocates of the product