Digital Marketing Fundamentals

Digital Marketing Fundamentals

• Digital marketing is a strategy for implementing and practicing marketing through different digital interfaces.
• Digital marketing is a broad term encompassing internet marketing and e-marketing.
• Other forms of digital marketing include TV adverts, electronic billboards, mobile apps, in-app PPC campaigns, mobile apps, in-app PPC ads and databases.

Introduction to Digital Marketing

• Digital marketing has transformed marketing by introducing digital devices, platforms and media.
• Digital marketing and multichannel marketing are achieved through using digital media, data and technology.
• Digital marketing strategy includes the evaluation and selection of appropriate customer segments and associated offer developments.

Online Marketplace Analysis

• The micro-environment encompasses elements like Natural, Intermediaries, Customers, Suppliers and other company activities.
• Examples of these elements include Demographics, Economics and Cultural factors.
• The micro environment includes the overall management, or marketing company, and competitors in the market.
• The macro environment includes Technological factors, Political factors and Legal factors.

Key Performance Indicators (KPIs)

• Bounce rate is the percentage of visitors who enter a site and leave.
• Conversion rates represent the number of conversions divided by the total number of visitors.
• Conversion is any desired action a user takes on a site.
• Hurdle rate is the proportion of customers who fall within a specific activity or engagement level with a brand in a given period.

Paid, Owned and Earned Media

• Paid media, also known as bought media, is where a site owner or ad network receives payment for serving an ad or for a click, lead or sale generated.
• Owned media involves different forms of online media controlled by a company, including websites, blogs, email lists and social media presences.
• Earned media refers to audience reach through online channels like editorial content, comments and shared content.

Digital Marketing Strategy

• Developing a digital marketing strategy focuses on Customer segmentation, targeting and positioning.
• Target marketing strategy involves evaluating and selecting appropriate customer segments and developing corresponding offers.
• Effective digital marketing requires the selection of target customer groups and strategies for delivering value to these customer groups as a proposition of services and products.
• Positioning is how customers mentally perceive the product or brand relative to competitors.

Key Features of Digital Marketing Strategy

• Aligned with broader business and marketing strategy
• Clear objectives for business and brand development with regard to leads and sales through digital channels.
• Consistency with the customers using each digital channel.
• Compelling, differential value proposition for each channel
• Mix of online and offline communication tools
• Customer Journey Support
• Manage the online customer lifecycle (attraction, to conversion to retention).

Digital Business Models

• B2C (Business-to-Consumer): Commercial transactions between an organisation and consumers.
• B2B (Business-to-Business): Transactions between an organisation and other organisations.
• C2C (Consumer-to-Consumer): Transactions between consumers.
• C2B (Consumer-to-Business): Consumers approach the business with an offer.
• E-government: Use of Internet technologies for government services to citizens.

Key Communication Concepts for Digital Marketing

• Permission marketing: Customers agree to participate in marketing activities, typically as a response to an incentive.
• Content marketing: Creating and sharing relevant content (text, media, audio, video) with customers to engage them and achieve business goals using various forms of online/offline media.
• Customer engagement: Repeated interactions during the customer lifecycle, spurred by online/offline communication and driven by emotional/psychological involvement to strengthen brand loyalty.

This quiz explores the essential principles of digital marketing, including its strategies and components. Topics covered range from internet marketing to the analysis of online marketplaces. Test your knowledge about the transformation of marketing through digital media and technology.