BSMA Notes - Digital Marketing PDF

# Chapter 1: Introduction to Digital Marketing ## Key Points: 1. **What is E-Marketing?** E-Marketing (or Digital Marketing) involves using the internet and digital platforms (websites, social media, etc.) to market products and services. It's often more interactive and cost-effective than traditi...

# Chapter 1: Introduction to Digital Marketing ## Key Points: 1. **What is E-Marketing?** E-Marketing (or Digital Marketing) involves using the internet and digital platforms (websites, social media, etc.) to market products and services. It's often more interactive and cost-effective than traditional marketing. 2. **E-Marketing vs. Traditional Marketing:** - **E-Marketing:** Uses online channels like social media, websites, and online ads. It is generally cheaper and can reach a global audience. - **Traditional Marketing:** Involves offline methods like TV, radio, print ads, and direct mail. It tends to be more expensive and less targeted. **Example:** Amazon: Reaches millions of people worldwide using digital marketing techniques like search engine optimization (SEO) and online ads. 3. **Importance of E-Marketing:** - **Global Reach:** Can reach customers all over the world. - **24/7 Availability:** Your ads can work even when you're not. - **Lower Costs:** Less expensive compared to traditional ads like TV or print. 4. **Advantages of E-Marketing:** - **Cost-effective:** Lower advertising budgets - **Convenient for customers:** Easy to research and purchase products online - **Measurable:** Pay-per-click (PPC) and analytics let you measure performance instantly. 5. **Limitations of E-Marketing:** - **No physical interaction:** Customers cannot touch or try products. - **Scams:** Risk of online fraud. - **Technology issues:** Poor internet connections or device limitations can affect customer experience. 6. **Consumer Behavior:** Understanding how customers make decisions is essential. Consumer behavior refers to the entire process of selecting, purchasing, and using products or services. Marketers need to recognize the specific needs and preferences of different consumer segments. 7. **Big Data in Marketing:** Companies use data (from social media, websites, etc.) to understand customer preferences and tailor marketing campaigns. This is called Big Data, and it helps companies make more informed decisions. ## Recap: - E-Marketing is more cost-effective, global, and measurable than traditional marketing. - Understanding customer behavior and using Big Data helps companies create better-targeted marketing strategies. - Though powerful, e-marketing has limitations like scams and the lack of physical product interaction. # Chapter 2: Digital Marketing Strategy ## Key Points: 1. **What is a Marketing Mix?** The Marketing Mix involves the combination of various elements like product, price, place, and promotion to meet customer needs and business objectives. 2. **The SOSTAC Model:** This is a framework used to create a digital marketing plan. It includes: - **Situation:** Where are we now? (Current performance, competitive advantages) - **Objectives:** Where do we want to go? (Goals like increasing sales or market share) - **Strategy:** How do we get there? (Targeting the right customers, positioning the brand) - **Tactics:** What tools will we use? (Social media, email marketing, paid ads) - **Action:** What steps are involved? (Who does what, and when) - **Control:** Did we achieve our goals? (Track progress with key metrics like sales growth) 3. **Steps to Creating a Marketing Plan:** - Know your market and competitors - Perform strategic analysis to set objectives. - Develop tactics to target customers and build brand value. - Implement your strategies. - Monitor performance and adjust the plan based on results. 4. **How to Execute a Marketing Plan:** - **Tactics:** Select the communication tools you'll use (e.g., email, social media ads). - **Action:** Set roles, timelines, and metrics to measure success. - **Control:** Use key performance indicators (KPIs) to monitor the progress of your marketing efforts. **Real-Life Example:** A company like Nike uses the SOSTAC model to plan its digital marketing campaigns. They analyze their current position (Situation), set goals (Objectives), and create strategies to target fitness enthusiasts (Strategy). Tactics include using social media influencers and email campaigns. They continuously monitor their performance (Control) to ensure their campaign is effective. ## Recap: - The SOSTAC Model is crucial for planning a digital marketing strategy. It involves analyzing the current situation, setting objectives, creating strategies, and continuously monitoring the results. - Marketing tactics and control measures ensure that the plan is implemented effectively. # Chapter 3: Digital Customer Behaviour ## Key Points: 1. **What is a Digital Consumer?** A digital consumer interacts with brands and purchases goods or services online. They use the internet for activities like browsing, shopping, streaming, and sharing. 2. **Types of Digital Consumers:** - **Basic Digital Consumers:** Comfortable with online shopping but don't heavily use mobile or social media. - **Retail Scouts:** Loyal to specific brands and prefer perks like free shipping. They often use paid search to find products. - **Brand Scouts:** Look for the best deals across multiple retailers and usually compare prices. - **Calculated Shoppers:** Take their time, often making careful decisions before purchasing. They are responsive to discounts. - **Eternal Shoppers:** Take the longest time to make decisions and aren't in a hurry to buy. They look for answers to questions like "What should I buy?" and "Which brand is best?". 3. **Behaviour of Digital Consumers:** Digital consumers are well-informed and want quick, relevant information. They actively share opinions and reviews, and often seek convenience when shopping online. 4. **Technological Impact on Consumer Behaviour:** - **Internet Access:** Faster internet speeds provide more opportunities for shopping and engaging with brands. - **Mobile Technology:** Consumers use smartphones to make purchases, search for products, and interact with brands. - **On-Demand Media & Wearable Technology:** Services like Netflix and wearable devices like fitness trackers influence the consumer journey. **Real-Life Example:** Apple: Uses customer behaviour data to personalize the experience for users, making recommendations based on past purchases and usage patterns. ## Recap: - Digital consumers have different types of behaviours, from quick shoppers to those who take time to decide. - Technology, like mobile devices and internet speed, greatly influences how consumers interact with brands and make purchasing decisions. - Understanding these behaviours helps businesses create more personalized and effective marketing strategies. # Chapter 4: Digital Marketing Funnel ## Key Points: 1. **AIDA Model:** The AIDA model outlines four stages that a customer goes through during the purchasing process: - **Attention:** Attract the customer's attention - **Interest:** Keep them interested in the product or service - **Desire:** Make the customer want the product by highlighting benefits - **Action:** Encourage the customer to take action, such as making a purchase. **Example:** Coca-Cola Zero Campaign: They used black posters with questions that grabbed attention and sparked interest. After creating curiosity, they revealed the product (zero sugar but same taste), building desire and encouraging people to try it. 2. **The Funnel Model:** The marketing funnel shows how customers move from being potential leads to loyal customers. The goal is to have as many people as possible go through the funnel stages (awareness, interest, desire, action) and retain them. 3. **Customer Relationship Management (CRM):** CRM is all about building strong relationships with customers. It's cheaper to keep existing customers than to acquire new ones. Examples of CRM benefits include customer loyalty, repeat business, and opportunities for cross-selling. **Example:** Netflix: In 2004, Netflix spent $37 per new customer. CRM helped retain these customers, leading to more business over time. 4. **Evolution of Consumer Behavior:** - **First Moment of Truth (2005):** Focused on how customers make decisions in physical stores. - **Zero Moment of Truth (2011):** Google's idea that digital channels (like social media) influence the customer decision journey. - **Accelerated Loyalty Journey (2015):** Focuses on using technology (like AI) to build customer loyalty quickly by delivering personalized and fast information. 5. **Customer Decision Journey:** The customer decision journey emphasizes understanding the steps a customer takes from becoming aware of a product to making a purchase. Modern businesses focus on creating continuous, positive experiences throughout the journey to build long-term loyalty. **Real-Life Example:** Amazon: Amazon uses the Customer Decision Journey to streamline the buying process, offering recommendations and personalized deals to enhance customer loyalty. ## Recap: - AIDA Model: Steps customers go through from attention to action. - Funnel Model: Helps convert leads into loyal customers. - CRM: Builds customer loyalty and saves money on new customer acquisition. - Consumer Behavior Evolution: Customer decision-making has shifted due to digital and technological advancements. # Chapter 5: Digital Marketing Processes ## Key Points: 1. **Conversion Funnel:** The conversion funnel is a model that illustrates the customer journey from awareness to purchase. It helps marketers understand how customers move through different stages before making a buying decision. The funnel is divided into three parts: - **TOFU (Top of Funnel):** Awareness stage where customers recognize a problem and look for information. - **MOFU (Middle of Funnel):** Consideration stage where customers evaluate different solutions - **BOFU (Bottom of Funnel):** Decision-making stage where customers are ready to purchase. 2. **Stages of the Conversion Funnel:** - **Awareness:** Customers identify a problem and seek solutions (e.g., blogs, social media posts). - **Interest:** Customers actively look for information to solve their problems. This is where businesses collect leads by offering valuable content (e.g., eBooks, checklists). - **Consideration:** Customers are now comparing solutions and businesses can tailor their messaging (e.g., webinars, case studies). - **Intent:** Leads are ready to hear about products and services. Provide them with detailed sales-level content (e.g., pricing info, competitor analyses). - **Evaluation:** Customers are finalizing their decision and comparing offers. - **Purchase:** The final stage where customers complete the transaction. 3. **Funnel Interpretation:** - **Market:** How many potential customers are there? - **Awareness:** How much of the audience knows the brand? - **Acquisition:** How many clicked through to the website? - **Interest:** How many users became leads? - **Conversion:** How many leads became paying customers? - **Retention:** How often do customers return to make additional purchases? - **Referral:** How many customers recommend the brand to others? 4. **Customer Journey Hourglass:** The customer journey can also be visualized as an hourglass where the process of acquisition, conversion, and retention continues even after the initial purchase. Building loyalty and encouraging referrals is a key part of the journey after conversion. ## Recap: - The Conversion Funnel outlines the stages from awareness to purchase (TOFU, MOFU, BOFU). - Each stage requires a different strategy to nurture leads effectively. - Funnel Interpretation helps assess the effectiveness of your marketing strategy by tracking key metrics like acquisition, conversion, and retention. # Chapter 6: Digital Marketing Analytics & Metrics ## Key Points: 1. **What are Digital Marketing Metrics?** Metrics are measurable values used to assess the performance of various digital marketing efforts. These help in making informed business decisions and tracking the success of marketing strategies. 2. **Key Metrics:** - **Traffic Source:** Shows where website visitors come from, helping to understand which channels (e.g., social media, search engines) are most effective. - **Page Views:** Measures how much content visitors are consuming on the site. - **Visits:** Indicates how many people are coming to the website. - **Unique Visitors:** Counts individuals visiting a site, even if they visit multiple times. - **Average Visit Duration:** Shows how long visitors are staying on your site. - **Page Views per Visit:** Measures how much content each visitor consumes during one visit. - **Bounce Rate:** The percentage of visitors who leave the site after viewing only one page. A high bounce rate indicates that the site might not be meeting visitors' expectations or is slow to load. - **Exit Rate:** Measures the percentage of visitors who leave the site from a specific page. - **Conversion Rate:** Tracks how many visitors perform a desired action, like making a purchase or signing up for a newsletter. 3. **Key Attributes of Effective Metrics:** - **Simple:** The metric should be easy to understand and act on. - **Relevant:** The metric must align with the organization's goals and strategies. - **Timely:** Metrics must be available when decisions need to be made. - **Credible:** The data must be reliable so that it is trusted by the organization. - **Actionable:** The metric should guide decision-making and help take concrete actions. **Example:** A company like Amazon uses metrics like conversion rate and traffic source to understand where their customers are coming from and what's making them buy. They can adjust their marketing strategies based on which channels are performing the best. ## Recap: - Metrics help assess performance and guide strategic decisions. - Traffic, conversions, and bounce rates are key metrics in understanding the effectiveness of marketing efforts. - Effective metrics are simple, relevant, timely, credible, and actionable. # Chapter 7: Attract Website Visitors ## Key Points: 1. **What Attracts Website Visitors?** - **Content Publishing:** Use blogs, videos, podcasts, and social media posts to draw in visitors. - **SEO (Search Engine Optimization):** Optimize your site so that it ranks higher in search engine results. - **Social Media Engagement:** Use social platforms like Facebook and Instagram to drive traffic to your website. 2. **Blog Metrics:** - **Traffic Drawing Keywords:** Use relevant keywords that attract visitors. - **Subscribers and Comments:** Track how many people subscribe to your blog and engage with your content through comments. - **Inbound Links:** Links from other websites that bring visitors to your site. They also improve your search rankings. 3. **SEO Metrics:** - **Organic vs. Pay-Per-Click (PPC):** Organic SEO means optimizing your website for search engines without paying, while PPC involves paying for each click. - **On-Page SEO:** Factors you control like title tags, content, and images. - **Off-Page SEO:** Getting links from other websites to improve your domain authority. 4. **Social Media Metrics:** - **Audience Growth:** The number of people engaging with your brand on social media. - **Engagement:** Track likes, comments, shares, and retweets to measure how well your content is connecting with your audience. - **Traffic from Social Media:** The number of visitors who come to your website from social media platforms. 5. **Micro-Moments:** - These are brief instances when people turn to their devices for quick answers or information. By optimizing for these moments, businesses can capture attention and convert visitors into customers. ## Recap: - Blog, SEO, and social media metrics are essential to understanding how well your digital marketing efforts are attracting visitors. - Optimizing content and utilizing social media and SEO strategies can help drive more traffic to your website. - Micro-moments present opportunities to provide instant value and boost conversions.