DM Unit 1 PDF

INTRODUCTION What is marketing?. It is the process of discovering and translating consumer needs and wants into product and service specifications, creating demand for these products and services and in turn expanding this demand. Modern marketing – more than just developing a good product,...

INTRODUCTION What is marketing?. It is the process of discovering and translating consumer needs and wants into product and service specifications, creating demand for these products and services and in turn expanding this demand. Modern marketing – more than just developing a good product, pricing it attractively and making it accessible. Now companies are cast into the role of communicator! Definition of marketing The American Marketing Association defines marketing as “The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives”. “Marketing is the identification and anticipation of customers’ needs and the profitable satisfaction of those needs”. 1. Identification – Business must identify customer needs. 2. Satisfaction – customers must feel that the benefits offered by the company’s products or services meet their needs. If this doesn’t happen then no repeat sales. 3. Profitable – It’s an obvious business obj. For the business to survive and satisfy customer needs, profit is essential 4. Anticipation – Part of what marketing needs to do is study customer’s behavior and attitudes to make it possible to PREDICT how changes will affect future demand for products and serviceds Need for marketing Creating Awareness: Marketing helps in informing and educating the target audience about a product, service, or brand. Without marketing, potential customers may remain unaware of what is being offered. Building Brand Identity: Effective marketing establishes a distinct brand identity, differentiating it from competitors. It creates a lasting impression and builds trust with the audience. Driving Sales and Revenue: Marketing strategies attract and convert potential customers, directly impacting the bottom line. A well-executed marketing plan increases demand and leads to higher revenue generation. Need for marketing Understanding Customer Needs: Marketing involves market research and feedback, enabling businesses to understand customer preferences, pain points, and trends. This information is crucial for product improvement and customer satisfaction. Staying Competitive: In a dynamic marketplace, marketing ensures a brand remains relevant and ahead of competitors. It helps businesses adapt to changing customer behavior and technological advancements.  https://www.daswritingservices.com/scope-of-marketing/#What_are_the_Scopes_of_Marketing Scope of marketing  The marketing mix A company's marketing mix is the combination of products, pricing, places and promotions it uses to differentiate itself from the competition. 1. It helps in developing a product or service that satisfies these needs. Products carry benefits and features. Product strategy decisions – core benefit, actual product, augmented product (value added services) and product range (width and depth) 2. Offers it at a certain price: Amount the customer must pay to obtain the benefits of a product/service. Pricing triangle: The audience perception of value in our and the competitor’s offerings Our cost structure Competition’s price levels 3. 3. Making it available through a particular place or channel of distribution. Wholesalers and retailers Marketers consider the channels their competition utilizes and may choose the same channel Here channel means the places where the products are put up 4. Developing a programme of promotion or communication to create awareness and interest. Developing and delivering coordinated msgs designed to create a desired effect in the target audience. Strategies: define target audience, set promotional obj, create msgs, select media, create promo prog, set budget and evaluate results. Other 3 Ps: People, process and physical existence These are the elements of the marketing mix. The basic task of marketing is combining these 4 elements into a marketing programme to facilitate interaction with consumers in the marketplace Functions of Marketing At its most basic level, marketing tells a story that connects a brand to its audiences. In creating this connection, marketing may take numerous forms, which we’ve condensed 1. Promotion 2. Selling 3. Product/Service Management 4. Marketing Information Management 5. Pricing 6. Financing 7. Distribution Intro to Digital Comm Advertising, an essential component of marketing has been there for ages Egyptians used papyrus to create lost and found fliers for missing slaves Used pretty much anything available at their disposal to create messages Posters, signs and flyers were employed to publicize events like circuses and games Word of mouth and influencing started. Etching on cave wall to communicate ideas, tell stories and promoted ways of doing things Printing in 15 and 16th centuries began and newspapers came up Radio and TV Finally the internet – websites, Blogs, social media, mobile internet marketing etc., Consumer 2.0 A web-savvy elite It’s an evolution in the way that ppl are using tech It’s about harnessing the distributed collaborative potential of the internet to connect and communicate with other like-minded ppl wherever they are Eg: sharing pics on insta, making FB posts, tweets, finding location on google map, video calls – now u have used web 2.0 technologies  Once upon a time, customers were happy to sit in front of passive broadcast media, accepting whatever was peddled into their way by editors and prog schedulers. Yes there was choice – u could buy a diff NP, listen and watch diff channels – but the ultimate content decisions were made by someone else Then came the web, changed all the rules. Now Web 2.0 – consumers are in control  They choose the content they want, what time they want it and where, also they can create their own content and share it. Consumers are better informed, better connected, more communicative and more in control than ever! Better informed – increased ability to access and sift an abundance of info anytime Better connected – ability to instantaneously communicate with others across time zones and social strata Better communicative – ability to push and share their opinions and ideas  Ways in which adoption of digital tech influences consumer behavior 1. Interconnectivity: Enabling consumers to connect with each other more readily through email, instant messaging, social networking platforms or a combo of all. Consumers are interacting with like-minded people around the world, paying scant regard for time zones and geography 2. Tech is levelling the info playing field: Content can be created, accessed, published and consumers quickly and easily. The scope of news, opinion and info avai to consumers is broader and deeper Consumers can conduct their own unbiased research, comparing and contrasting products and services before they buy Digital tech is shifting the balance of power in favour of the consumer 3. Relevance filtering is increasing Consumers filter out items relevant to them and ignore anything they perceive as irrelavant They find a way to automatically retrieve updated posts/articles from a website 4. Niche aggregation is growing: The abundance and diversity of online content allows consumers to participate and indulge their special interests and hobbies Collection of line-minded individuals congregate online Mass consumer population is fragmentimg into smaller niche groups, with increasing indivi requirements 5. Micropublishing of personal content: Allows the consumers to express themselves online through discussion forums, feedback forms, voting platforms, personal photo galleries or blogs Users post their opinions online and consult peers for opinions before they make purchase decisions. Eg: online reviews checking 6. Rise of the ‘Prosumer’: Online consumers are increasingly involved in the creation of the products/services they purchase They’re letting producers know what they want. Indivi are more involved in specifying, creating and customizing products to suit their requirements Traditional mass production and mass marketing concepts are rapidly becoming a thing of the past 7. On-demand – any time, any place, anywhere: Time, geography, location and physical storage space are becoming irrelevant It is a world of instant gratification David Black, head of branding and consumer markets for Google, UK, referred to WWW as – what we want, where we want and when we want Digital communication What is interactive communication? It is an exchange of ideas where both participants, whether human, machine or art form, are active and can have an effect on one another. It is a dynamic, two-way flow of information. Many forms of communication previously thought one-way, like books and television, have become interactive with the rise of computers, the Internet, and digital and mobile devices. Such collaborative technologies, or new media, have rapidly increased the opportunities for interactive communication It is a primary characteristic of the present Information Age.  Interactivity through social media, smart phones and other visual aids increases awareness, productivity and collaboration Social media is about mass collaboration and not just mass communication The brownie point for new media is its nature of interactivity! Useful in a lot of areas like business, education, political governing etc DC Platforms Video Conferencing A video conference is a live, visual connection between two or more people residing in separate locations for the purpose of communication. It is the technology that allows you to hold meetings with several correspondents who are located in different places while seeing them and talking to them in real time. It is different from simple video calling, which is normally one-to-one video communication. Consumer services -- like Apple's FaceTime, Google's Hangouts and Microsoft's Skype -- have made video conferencing omnipresent on desktops and mobile devices that have an embedded camera. Video-conferencing is one of the most exciting areas of development in telecommunications, with application ranging from business to government to education to home and family.  Streaming media Streaming media is video or audio content sent in compressed form over the Internet and played immediately, rather than being saved to the hard drive Examples of streaming video and audio include Internet radio, Online radio stations, sound cloud, itunes youtube videos, and Netflix are all good examples of streaming content. Designed to store and play a large volume of media while providing users with on-demand access to content With streaming media, a user does not have to wait to download a file to play it. Because the media is sent in a continuous stream of data it can play as it arrives. Users can pause, rewind or fast-forward, just as they could with a downloaded file, unless the content is being streamed live.  So popular that many TV channels are now offering streaming option All streaming outlets use digital tagging to track user behaviour, which can be used to recommend content and target ads Why are live videos popular? Video appeal. First, there’s the basic appeal of video. The general population tend to prefer visual content to written content, because it’s a more basic form of interaction. Thanks to faster Internet speeds and mobile devices, it’s easier than ever to watch videos, so they’ve become even more popular as an online medium. “In the moment” value. Social media users also love to feel “in the moment,” and live videos give them that perspective. Rather than seeing a recorded event, they want to experience something vicariously and immediately. User engagement and instant feedback. Live video also opens the door to live feedback, such as user-contributed questions or comments, which adds a layer of engagement to the experience. User generated or user curated content platforms/ Social media Blogs, vlogs. Dating profiles and social media pages may be classed as user-generated or user-curated platforms Social media - online communication used by people to create networks, communities, and collectives to share information, ideas, messages, and other content, such as videos What is digital marketing? Digital marketing refers to the promotion of products or services using various digital communication channels. These channels include the internet, social media, mobile applications, email, and search engines, among others. Unlike traditional marketing methods, digital marketing allows for direct interaction with consumers and offers tools for measuring the effectiveness of campaigns in real-time This can also be referred as ‘online marketing’, ‘internet marketing’ or ‘web marketing’. In simple terms, any form of marketing that exists online is called as Digital Marketing. Key Components of Digital Marketing: ❖ SEO ❖ Content Marketing ❖ Social media marketing ❖ Email marketing ❖ Online advertising  DM channels Website Marketing: A website is the centerpiece of all digital marketing activities. Alone, it is a very powerful channel, but it’s also the medium needed to execute a variety of online marketing campaigns. A website should represent a brand, product and services in a clear and memorable way. It should be fast, mobile friendly, and easy to use. Should have an effective website and SEO strategy to achieve good reach and engage your leads online. Site content. SEO important – can use ‘Google keyword Tool’ – helps find terms that are relevant to your business;  Getting a web presence – important in today’s digital way of life It is also relatively easy and cheaper for promotion today, compared to tv or print ads Website can also get listed on common portals (Justdial, google addresses, yellowpages) Having a stand-out web page is very important for businesses Choosing a web address – URL/ domain name is important – should be as close as possible to the name of your business Important to register the website with the name Must be Content –driven attracting traffic Tracking the traffic for the site  A customer-oriented marketer would: - Give frequent interesting information (pdt, service, brand, industry) on website – customers can gain knowledge by visiting it - Engage existing customers (with an attached online forum) to give them all a connect; reasons to feel good about their past purchases - maintain a section dedicated to b2b relationships (dealers/distributors/stores)  BANNER AD Earlier, banner ads used to be the only format of internet advertising Being creative with these ads is the key Space Buying: - Large sites like Yahoo! And google have a dedicated space for banners that can be placed - There are also media buying agents who take a percentage of commission for placing the ads in a good spot - Click stats – number of views of a pop-up or banner ads by actually clicking on them Pay-Per-Click (PPC) Advertising: PPC advertising enables you to reach internet users on a number of digital platforms through paid ads. You can setup PPC campaigns on Google, Linkendin, Twitter, Pinterest, or Facebook and show your ads to people searching for terms related to your products or services. It’s a revenue model adopted by search engines whereby the advertiser pays only when a user clicks on an ad.  E-MAIL Though considered a bit outdated, is still a powerful tool of digi. Marketing Can get all creative with emails adding animations, links to websites Even today, queries, complaints, etc are handled through emails Constant follow-up on purchase, invoices, delivery and rating are done though emails legitimate, one-to-one communication – bringing the customer closer to the brand also useful for sending newsletters, ebrochures, invitations and other info  Keep emails optional – only for people who ask for them (while registering with the portal) Remove the addresses of the people who have opted out of emails (don’t bombard them, might be an irritant) Privacy of the customers must be respected Subject line must not be deceptive – must be straightforward Keep email lists updated SEARCH ENGINE OPTIMIZATION Search engines help find information online Building and maintaining a website – that finds itself indexed in an engine (higher order) is a strategy on its own SEO is a technique of digital marketing that ensures websites found and indexed – in an organic manner Customers can find the name of the product/service/brand LISTED FIRST when it is typed SEO is an industry today as the competition is very high – and the market flourishes with closely connected and resembling products/services at a global level SEO Leaving a comment on relevant queries online with the web address and emails could enhance traffic SEO specifically relates to how a website is read and ranked by search engine spiders Online Public Relations plays a key role in SEO. - PR stories could be shared/ published online and linked to the website – gain traffic SEO -Types Organic SEO: organic results are listings that match closely to the user’s search query – based on relevance. - Also called natural search - Getting your rank high in organic search displays good quality of SEO Pay Per Click: also known as cost per click - Association of advertisers with search engines – bid on keyword search - The advertiser pays the publisher for every click on their advert - These are known as sponsored ads (appear along with organic searches) - Not very beneficial to the brands in terms of lasting longer; click frauds MOBILE MARKETING Promotional activity involving cell phones Effective mobile marketing involves understanding of the mobile audience – designing content with keeping mobile platforms in hand - Making strategic use of SMS and MMS - Marketing through mobile apps - Marketers want to increase the visibility of an app – which in turn will increase the download and usage of that app - Appstore Optimization (ASO) MOBILE MARKETING Promotional activity involving cell phones Effective mobile marketing involves understanding of the mobile audience – designing content with keeping mobile platforms in hand - Making strategic use of SMS and MMS - Marketing through mobile apps - Marketers want to increase the visibility of an app – which in turn will increase the download and usage of that app - Appstore Optimization (ASO) - Content –driven mobile marketing – push messages, app notifications, customer information, product announcements, etc - Advertisement model – inserting adverts into the app – banner and pop-ups, recent search optimization, cart reminders, etc - In-game mobile marketing – using the gaming world - real-time 3D, multi-player games and socializing games - Using these portals to advertise – makes a gaming portal a consumer-driven one - creates interests in consumers – to purchase on-the-go while gaming BLOGS Are very simple websites - Share thoughts, ideas and content with people - Becoming massively popular in US and UK and a blossoming world of business in India - Keeping a blog page updated and relevant, with good/ attractive content is the best way to attract audiences - Brands (via corporate blogs) target their stakeholder and share their stories of success - A good way to build trust and gain loyalty Types of Blogs Personal Blogs – Blogger, Tumblr, WordPress - Can start one within minutes - No limitations and boundaries to what is being shared - Successful personal blogger – shares, quotes, comments, interactions with other personal bloggers - Blogs for businesses - More exposure, traffic to their websites, and customers to their brand - Topics that will attract customers Niche blogs - Specific blogs Travel, food, lifestyle, animals Focus and interests/write with passion Lot of eye-balls if used properly Freelance bloggers – Freelance bloggers are paid for their blogging services Eg., writing business content Cover topics provided by their clients Important to build a portfolio of experience and expertise – attract clients to They are different from ghostwriters (usually uncredited) Freelance bloggers can use their work to show other clients to get more opportunities Many freelance blogs go with Popular blog marketers - HubSpot – Inbound - Business Insider – BI Intelligence - Kissmetrics – Infographics - HootSuite- SMM for entrepreneurs - The knowledge bank – individual and corporate branding Social Media Marketing: A technique that uses a combination of various SM platforms to engage with the stakeholders – primarily consumers Plethora of opportunities for businesses and marketers, and most recently, the influencers SM refers to content created and consumed by people for each other It makes every common man a content publisher Studies say that SM Democratized world wide web Fb, Twitter, blogs, Instagram, LinkedIn, Snapchat, Tumblr, YouTube, wiki, etc  The first social networking site launched was six degrees in 1997 and was shut down in 2001 Friendster was founded 2002 LinkedIn was founded in 2003 – Reid Hoffman Orkut was launched in 2004 as Google’s Social Media Hi5 in 2005 Myspace – 2006 Facebook in 2006 (founded actually in 2004- Mark Zuckerberg) twitter also in 2006 –gained popularity in 2007 as a microblogging platform  Photobucket – major photo sharing networking site 2003 Flickr – became very popular in 2009 Youtube – first major video hosting and sharing site in 2005 Tumblr- blogging and lifestreaming platform – 2007 Instagram – 2010- Kevin Systrom and Mike Krieger  The push and pull strategies SMM differentiates itself from Advertising The usual forms of advertising on other media like radio, TV and outdoors can be referred to as PUSH strategy – where the ads are pushed out to customers and people passively ignore the messages The social media on contrary looks at building conversations with people – allowing the messaged to be PULLED by the customers/ potentials SM communication becomes a useful part of the customer’s experience Consumers on SM Knowing the audience is very important – esp on SM, their activities on a regular basis. These activities can be categorized and then float the SM campaigns The following are regular activities of the public online: 1. Information – internet is considered as a virtual library; finding info on google/Wikipedia is very common; gathering and sharing info – both via Sm pages happen on a regular basis 2. news: preference of mobile phones/online apps for news has increased over a period of time; instant, real-time news; growth of citizen journalism on SM 3. Communication: core communication of most people today, personal, professional, political and social communication at various levels happen; micro communication (twitter) is very popular 4. community: online communities and social networks (friends and communities with a common interest) Affiliate Marketing: Affiliate marketing is one of the oldest forms of marketing. With affiliate marketing, you promote other people’s products, and you get a commission every time you make a sale or introduce a lead. Usually used by online retailers – pay the referring website a fee on completion of certain functions Adopted by brands to bring in more traffic to their website Amazon, Flipkart, Jabong, TATA Clique are all affiliated marketers Inbound marketing: Another fancy term that refers to how you can use various digital marketing channels to reach new customers mainly through the process of content creation and how to ‘push’ them through a funnel until they convert. The main elements of inbound marketing are content, attention, engagement, trust, and satisfaction. All these elements have a single goal: to help businesses connect with their potential customers and establish a channel of bi-directional communication with them that will lead to more sales. While outbound marketing pushes the product through various channels, inbound marketing creates awareness, attracts new customers with channels like blog. Social media etc Differences between traditional and digital marketing  Aspect Traditional Marketing Digital Marketing Medium of Utilizes offline channels like TV, radio, print, and Employs online platforms such as websites, social Communication billboards. media, and email. Generally more expensive due to production and More cost-effective with options for free or low-cost Cost Efficiency distribution costs. promotions. Targeting and Broad targeting; less personalized messaging. Highly targeted and personalized using data analytics. Personalization Interactivity and One-way communication; limited audience Two-way communication; encourages audience Engagement interaction. engagement and feedback.  Aspect Traditional Marketing Digital Marketing Measurability and Difficult to measure effectiveness; relies on indirect Provides real-time tracking and detailed analytics for Analytics metrics. performance assessment. Typically local or regional reach; harder to scale Global reach with the ability to customize for different cultures Reach and Accessibility globally. and languages. Slower to launch and adjust campaigns; requires Quick to launch and modify based on immediate feedback and Speed and Adaptability extensive planning. performance data.  Aspect Traditional Marketing Digital Marketing Branding Effective for building trust through Potentially less credible; relies on the quality of content and Effectiveness established methods. channels used. Easier to learn and implement traditional Requires understanding of digital tools and platforms, which Learning Curve techniques. can be complex. Less flexible; changes are difficult once High flexibility; campaigns can be adjusted in real-time Flexibility campaigns are launched. based on performance metrics. Traditional Vs Digital marketing TM DM Cost: costs a lot to hold Cost : Social media ads an ad running under a are affordable; several DM techniques are free plan Result: Don’t have to wait Result: Have to wait for longer; easy to determine weeks/months to see the a return on investment result; they cannot be (ROI) by utilizing Google easily measured analytic tools. Differences.. TM DM Contains: Broadcast Contains: Websites, Social media(like TV and radio ads), networking sites, Content Direct mail (including fliers, marketing, Banner Ads, postcards, catalogs), Telemarketing, verified Google Ads, Online video techniques for a higher rate of marketing, Cost-effective success and analytics for strategies for marketing and measuring results enables primary response from the intended audience. Differences… TM DM Advertisement: Value: Digital marketers look to provide value to their audience by using content Traditional advertisers are marketing and other solutions. typically just looking to DM marketers are able to research what their audience is interested in and cares increase sales with their about using page analytics, molding their brand and messaging to actually offer ad spots, not to provide solutions, information or even value. entertainment to their audience; this provides value to the audience, building trust and ultimately turning them into repeat customers.  TM DM Communication: offers 2 way comm, allowing Communication: it is solely one way for feedback and relationship building, comm showcasing a product, event or service and leaving it at that. Tracking: you know how many people saw your post, ad, or video, how many of those Tracking: It is tough to track traditional people visited your brand's website and if you sell online products, you can even see how marketing techniques. many of those people purchased your product To evaluate your group of viewers and or booked your service. their communications we have to put up Tracking your digital marketing efforts means added efforts which are time-consuming. Measure traffic to your site, The level of engagement your audience has on your social networks, and Count the people visiting your blog. To sum up, the There are differential similarities too …. factors…. Communication style Objective of audience Cost structure reach and fostering Measurement tools connections Audience engagement Brand consistency Adaptability (Digital campaigns Strategic planning can be swiftly modified in response to Focus on promotion performance data or market trends) Targeting specific customer demographics BIG DATA Data refers to any collection of facts, statistics, or information that can be processed to derive insights. In the context of marketing, data encompasses various types of information, including customer demographics, behaviors, preferences, and interactions with a brand. This data can be collected from multiple sources, such as surveys, website analytics, social media interactions, and transaction records. Definition: The process of measuring, collecting, analysing and reporting the behaviour of visitors on a website, in order to understand and optimize web image  Number of outputs and customer characteristics have increased, companies face huge volumes of structured and unstructured data The level of processing is beyond the capacity of the traditional software Increased number of data analytic tools have come – both paid and free tools Google Analytics: Free web analytics tool provided by google – that helps measure web traffic and gather vital information For example, all the e-commerce sites use big data to accumulate information from a simple online registration form to have a deeper insight into their customers’ shopping behavior. Helps understand the customers better and helps the service providers to steer their work in innovative ways BIG DATA: organizations collect, store and analyze the massive amounts of data that is known as big data. Data analytics: Analyze the data and take out the useful insights from those data is known as big data analytics. ANALYTICS for marketing What you need to know in the digital market – - Who visits the websites - Where they come from - Which pages they are visiting - How long they spend on a site - Which pages of the org are the most popular ones If not known, the org would be appending money and effort on a wrong audience Data analytics helps – about web traffic, so the org can improve on their performance digitally and ensure conversion rates NEED FOR DATA Enables org to target the core needs of the customer in a better manner – by developing informative content E.g., companies retrieve personal data for analysing customer behaviour in cookie files 1. Designing better marketing campaigns: - Marketers can develop buyer persona – customer behaviour, purchasing patterns, favourites and background - What kind of campaigns they respond to 2. Making better pricing decisions: - Traditional pricing happened based on product cost, competitors pricing and perceived value of the product from customer and demand - Today, performance – based data helps in making pricing decisions 3. Showing appropriate web content: - Online marketers will be able to serve customized content to their website visitors - More interesting and engaging - E.g., Netflix recommendation of movies on an individual basis - Get the SEO stronger 4. Real time customer insights: The company can get a huge amount of data through interaction with the customers like, what they want from the brand, what they thinking about the brand and when they bought via which channel. Sentiment analysis: It is a process that analyzes information about how the customer feels about a company, its brand, and its product or service. It is also known as opinion mining. Analyze unstructured customer feedback through social media post, reviews, and customer care conversation allow companies to understand customer’s feelings, opinions, and attitudes about a certain brand, product or service. It tells whether the underlying sentiment is positive, neutral or negative. Sentiment analysis uses text analytics and natural language processing. 5. Personalized targeting: Personalized marketing is creating and delivering messages to the individuals or the group of the audience through data analysis with the help of consumer’s data such as geolocation, browsing history, clickstream behavior, and purchasing history. It is also known as one - to – one marketing Examples: product recommendation - Amazon is an excellent example of a product recommendation. It gives a better suggestion based on your searches, interests and previous purchases history.