Digital Marketing Strategy Week 1 Lecture 1 PDF

Digital Marketing Strategy DR. CHINMOY KUMAR ROY Assistant Professor in Marketing Faculty of Commerce Banaras Hindu University Varanasi, India │ckroybhu  Course Digital Marketing Strategy Week 1 Digital...

Digital Marketing Strategy DR. CHINMOY KUMAR ROY Assistant Professor in Marketing Faculty of Commerce Banaras Hindu University Varanasi, India │ckroybhu  Course Digital Marketing Strategy Week 1 Digital Marketing Landscape Lecture 1 Emergence of Internet & Social Media Dr. Chinmoy Kumar Roy 1 Internet in India The Internet is a world wide network of billions of computers and other electronic devices. It is network of networks with interconnected devices which can communicate with each other using world wide web. Internet got introduced in India in 1986 (in the form of ERNET) but it took a decade to make it available for the public. Videsh Sanchar Nigam Limited (VSNL) first launched the internet in India on August 15, 1995. Dr. Chinmoy Kumar Roy 2 Some Key Insights In 2024, India has over 820 million ‘active’ internet users, which is expected to reach 900 million by 2025. India is second in the world in terms of internet users, just behind China. Despite the huge population and consistent increase in internet accessibility, internet penetration in India is only 48.7%. As per Ericsson’s report, until 2028, smartphone users may grow from 76 per cent (2022) to 93 per cent. India has some of the cheapest mobile data plans in the world, with 1GB of mobile data costing about $0.04 or about Rs. 13. Only Israel and Italy offer data cheaper than India. People in the US, on the other hand, pay 33X more than what people in India do. (Source: Firstpost.com) Dr. Chinmoy Kumar Roy 3 The overall internet users projected to grow to over 1.6 billion users by 2050, indicating a big market potential in internet services and related businesses. Dr. Chinmoy Kumar Roy 4  The exponential growth of Internet in recent time is primarily attributed to two major reasons among many –  The launch of Digital India initiative in July 1, 2015. It is a flagship programme launch by the Government of India with a vision to transform India into a digitally empowered society and knowledge economy. (Source: https://www.digitalindia.gov.in/)  Reliance Jio, launched on September 5, 2016, revolutionised Indian telecommunications by offering cheap or free data, unlimited talk time, and no roaming charges. (Source: https://www.cnbctv18.com/telecom/reliance-jio-turns-7--how-this-upstart- changed-indian-telecommunication-landscape-forever-17711501.htm) Dr. Chinmoy Kumar Roy 5 Social Media in India Social media is set of software applications and websites that allows people to communicate and interact with other users, communities, businesses, etc. It is both web and mobile phone based digital technology which allows user to create and exchange user-generated contents. Social media is defined as a group of internet- based applications that build on the ideological and technological foundations of Web2.0 and allow the creation and exchange of user- generated content. (Kaplan and Haenlein, 2010) Examples: Facebook, Instagram, LinkedIn Dr. Chinmoy Kumar Roy 6  (Source: https://datareportal.com/reports/digital-2024-global-overview-report) Dr. Chinmoy Kumar Roy 7  (Source: https://datareportal.com/reports/digital-2024-global-overview-report) Dr. Chinmoy Kumar Roy 8 Some Key Insights Chinese citizens certainly displayed a strong online presence, having approximately 1.03 billion active social media users as of January 2023. India and Indonesia, the second and third ranking countries for social media, had 467 and 167 million active social media users respectively. The most used social media platform in the world is Facebook, with 2.9 million monthly active users across the world. 74.70% of internet users in India will be using Instagram in 2023, making it the most popular social media network there. There are 516.92 million active Instagram users in India. The social media app market in 2022 was valued at $49.09 billion, with forecasts predicting a compound annual growth rate (CAGR) of 26.2% from 2023 to 2030. (Source: https://www.forbes.com/advisor/in/business/social-media-statistics/) Dr. Chinmoy Kumar Roy 9  Statista reports that social media ad spend for 2023 as a whole was up by 9.3 percent compared with 2022, reaching a total of USD $207 billion. 77% of businesses use social media to reach customers. 90% of users follow at least one brand on social media. 76% of social media users have purchased something they saw on social media. As of 2023, the fastest-growing social media platform is Instagram. Social commerce in India will witness a compound annual growth rate of 55-60% between FY 2020-2025, expanding the current market size from $1.5-2 billion to $16-20 billion. (Source: https://www.forbes.com/advisor/in/business/social-media-statistics/) Dr. Chinmoy Kumar Roy 10  So, What is the whole point? Internet and Social media is more than just network, app or program. They are the next big thing in Marketing. They have revolutionised the whole idea of sales and advertising. The digital environment flooded with digital technologies are reshaping the marketing strategies. They are not only posing challenges to the marketers but also providing opportunities to grow, sustain and remain profitable. Dr. Chinmoy Kumar Roy 11  Thank You Dr. Chinmoy Kumar Roy 12  Course Digital Marketing Strategy Week 1 Digital Marketing Landscape Lecture 2 Emergence of Digital Transformation Dr. Chinmoy Kumar Roy 1 What is Digital? The term ‘Digital’ refers to the representation of physical items or phenomenon through binary code. It involved converting, storing and transferring analog data into computer-readable language in binary values of ‘zero’ and ‘one’. For instance, audios, videos, images, etc. are now stored in digital format in computers and other digital devices. This facilitates in easy storage, quick mobility, customized manipulation, automation, etc. Dr. Chinmoy Kumar Roy 2 Digital Technology Digital technology refers to any digital devices, systems or resources that uses digital data and processes it electronically. It encompasses a wide range of technologies and devices that operate based on binary code. It encompasses a wide range of technologies, including computers, smartphones, software applications, the internet, information technology and emerging technologies such as artificial intelligence, machine learning, and blockchain. Digital technology has revolutionized various aspects of modern life, including communication, entertainment, shopping, education, healthcare, business, and more. Dr. Chinmoy Kumar Roy 3 Digital Transformation With ever evolving digital landscape, transformation is no longer a luxury but a necessity for businesses to remain competitive and relevant. Businesses that fail to adapt, risk being left behind. The term digital transformation refers to the integration of digital technologies in an organization in order to drive greater productivity, efficiency, and sustainability. (Taylor, 2024) Digital transformation refers to the adoption of digital technology to transform business processes and services from non-digital to digital. This encompasses, among others, moving data to the cloud, using technological devices and tools for communication and collaboration, as well as automating processes. (Sherif, 2024) Dr. Chinmoy Kumar Roy 4 Some Key Insights The global digital transformation market is expected to grow to $1,009.8 billion by 2025 from $469.8 billion in 2020, at a CAGR of 16.5% during this period. The global digital transformation spending is projected to touch whopping 3.9 trillion US dollar in 2027 as per the reports published by Statista. Organizations with an actively involved Chief Digital Officer are six times more likely to achieve successful digital transformation. IDC asserts that AI technology will be inserted into the processes and products of at least 90% of new enterprise apps by 2025. The digital economy is anticipated to account for more than 20% of the Gross Domestic Product (GDP) by the year 2026. (Source: https://quixy.com/blog/top-digital-transformation-statistics-trends-forecasts/) Dr. Chinmoy Kumar Roy 5  Machine Automation Learning Digital Artificial Avatars Intelligence Digital Transformation Cloud Blockchain Computing Augmented Metaverse & Virtual Reality Dr. Chinmoy Kumar Roy 6 Business Process Automation Business process automation is the use of advanced technology to undertake various repetitive business activities with minimal human interventions. A 2020 global survey of business leaders from a wide cross-section of industries conducted by McKinsey & Co. found that 31% of businesses have fully automated at least one function, whereas 66% were steering solutions to automate at least one business process, up from 57% two years earlier. (Source: https://www.websfarm.net/the-benefits-of-business-process-automation/) Dr. Chinmoy Kumar Roy 7 Artificial Intelligence Artificial intelligence is simulation of human intelligence in computers that are programmed to think and learn like humans. It involves development of algorithms and codes that can perform tasks which typically requires human intelligence. It involves understanding human language, recognizing images & objects and making decisions based on data analytics. Examples: Chatbots, content personalization, marketing research, etc. (Source: https://www.irctc.co.in/nget/train-search) Dr. Chinmoy Kumar Roy 8 Augmented and Virtual Reality Virtual reality uses a headset to place you in a computer-generated world that you can explore. Augmented reality, on the other hand, is a bit different. Instead of transporting you to a virtual world, it takes digital images and layers them on the real world around you through the use of either a clear visor or smartphone. (Source: https://edu.gcfglobal.org/en/thenow/ understanding-virtual-reality-and-augmented-reality/1/) Dr. Chinmoy Kumar Roy 9 Digital Avatar Digital avatar are our digital representative in the virtual world. It can be thought as the game character we use to play in our childhood with the difference that now we can customize it to look similar to us. This avatar represents us as we work, learn, shop and socialize in the virtual world also known as the Metaverse. Digital avatars are becoming increasingly realistic and lifelike, thanks to advances in computer graphics and artificial intelligence. Dr. Chinmoy Kumar Roy 10 Blockchain Blockchain technology is an advanced database mechanism that allows transparent information sharing within a business network. A blockchain database stores data in blocks that are linked together in a chain. The data is chronologically consistent because one cannot delete or modify the chain without consensus from the network. Blockchain technology can be used to create an unalterable or immutable ledger for tracking orders, payments, accounts, and other transactions. (Source: https://aws.amazon.com/what-is/blockchain/) Dr. Chinmoy Kumar Roy 11  Thank You Dr. Chinmoy Kumar Roy 12  Course Digital Marketing Strategy Week 1 Digital Marketing Landscape Lecture 3 Introduction to Digital Marketing Dr. Chinmoy Kumar Roy 1 “The key question is not whether to deploy Internet technology – companies have no choice if they want to stay competitive – but how to deploy it.” - Michael Porter (2001) Dr. Chinmoy Kumar Roy 2  E-Business E-Commerce E-Marketing Internet Marketing Web Marketing Online Marketing Digital Marketing Dr. Chinmoy Kumar Roy 3 Digital Marketing Digital marketing refers to the use of digital media, technology and data to reach and interact with audiences using different digital devices and platforms, combined with traditional media, to achieve marketing objectives. Digital marketing focuses on managing company’s different forms of online presence, through company websites, mobile apps and social media accounts/pages, integrated with online communication techniques such as search engine marketing, social media marketing, online advertisement, email marketing and partnership arrangements with other websites. (Dave Chaffey & Fiona Ellis-Chadwick, 2019) Dr. Chinmoy Kumar Roy 4 Institute of Direct and Digital Marketing defines digital marketing as “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.” Dr. Chinmoy Kumar Roy 5  Some defining characteristics of Digital Marketing – 1. Data- driven 2. Two-way communication 3. Content strategy 4. Targeting of one (personalization) 5. Level-playing field 6. Measurability 7. Push and pull 8. Real time 9. Zero moment of truth 10. Omni channel Dr. Chinmoy Kumar Roy 6  Traditional Marketing Digital Marketing Type of marketing Structured and clear Not structured and no pattern Direction of Unidirectional (one to many) Multidirectional (many to many) communication Scheduling Long term Short term Communication with Private (via email, phone) Public (via social media) consumer Availability During working hours All the time Language Formal, official and legally safe Informal, genuine and direct Response time Longer Quicker (Gupta, S., 2023) Dr. Chinmoy Kumar Roy 7  Benefits of Digital Marketing over Traditional Marketing – 1. Larger target audience 2. Cost-effective 3. Higher conversion rate 4. Measurability 5. Versatile 6. Quicker reach 7. Personalized message and ads 8. Enhanced customer engagement 9. Effective analytics 10. Suitable for all type of businesses Dr. Chinmoy Kumar Roy 8 The P-O-E-M Framework Dr. Chinmoy Kumar Roy 9 Paid media includes sponsored ads in different channels of digital marketing such as search engines, social media, websites, etc. Dr. Chinmoy Kumar Roy 10 Owned media is company’s own media channels such as company’s official website, social media accounts/pages, YouTube channel, etc. Dr. Chinmoy Kumar Roy 11 Earned media is organic and unpaid user generated content in which recommendation are given as publicity or word of mouth. Dr. Chinmoy Kumar Roy 12  Thank You Dr. Chinmoy Kumar Roy 13  Course Digital Marketing Strategy Week 1 Digital Marketing Landscape Lecture 4 Online Marketplaces Dr. Chinmoy Kumar Roy 1 Online Marketplaces Innovative e-commerce business models have transformed and revolutionized the buying and selling transactions done online. E-commerce has become an indispensable part of global retail. Like many other industries, buying and selling goods has undergone a substantial transformation following the advent of the internet. Online marketplaces have been a growing trend, showing that the shift from e-commerce to marketplace can be a turning point for companies in a fast-paced digital world. Dr. Chinmoy Kumar Roy 2 Some Key Insights – In 2024, retail e-commerce sales are estimated to exceed 6.3 trillion U.S. dollars worldwide. E-commerce share of total global retail sales is 20.1% With a market cap of over 87 billion U.S. dollars, Uber ranks first among the world's leading online marketplaces. Emergence of M-commerce: In late 2023, smartphones accounted for nearly 80 percent of all retail website visits worldwide, and in turn, also generated the majority of online orders compared to desktops and tablets. In the Business-to-Consumer (B2C) sphere, fashion and consumer electronics are among the top e-commerce verticals to date and contribute to the largest share of online retail sales. (Source: Statista) Dr. Chinmoy Kumar Roy 3 Online Marketplaces: Business Models Supplier of content/product/service Business Consumer of content/product/service Consumer Government (Organisation) Consumer C2C B2C G2C Business C2B B2B G2B (Organisation) Government C2G B2G G2G Dr. Chinmoy Kumar Roy 4 1. Consumer-to-consumer (C2C) – Informational or financial transactions between consumers, but usually mediated through a business site or platform that helps sellers find customers charging a percentage of their sales. This is also known as peer- to-peer e-commerce business model. Example: e-Bay, OLX, CarDekho Dr. Chinmoy Kumar Roy 5 2. Business-to-consumer (B2C) – Commercial transactions between organisation to consumers. It is the most common type of business model. A B2C business sells products or services to end users, not other businesses or manufacturers. Most retailers are B2C businesses. Common types of e-commerce B2C businesses include: Direct seller Intermediaries Advertising-based Community-based Fee-based Dr. Chinmoy Kumar Roy 6 3. Consumer-to-business (C2B) – The consumer-to-business (C2B) e-commerce model allows businesses and consumers to have a mutually beneficial relationship. In C2B, the consumers approach the business with an offer. In this relationship, the consumers create value that an organization uses to engage in a business process or gain a competitive advantage. This business model refers to when a consumer sells their own products or services to a business or organization. Example: Affiliate marketing Dr. Chinmoy Kumar Roy 7 4. Business-to-business (B2B) – In B2B model, one business sells to another businesses, which may further sell it to final consumer leading to B2B2C model. Wholesale transactions typically fall under this category. B2B transactions generally have a longer sales cycle, but higher-order value and more recurring purchases. Example: Amazon Business, IndiaMart Dr. Chinmoy Kumar Roy 8 5. Government-to-consumer (G2C) – Example: Passport Seva, DigiLocker 6. Government-to-business (G2B) – Example: Government e-Marketplace, Government portal for MSME registration 7. Consumer-to-government (C2G) – Example: Income tax e-filing, electricity bill payment 8. Business-to-government (B2G) – Example: Tata Power, LnT, Royal Enfield 9. Government-to-government (G2G) – Example: PFMS, Khajane Dr. Chinmoy Kumar Roy 9 Types of Digital Presence Chaffey (2015) identifies different types of digital presence and each has different objectives and functionality that are appropriate for different markets or industry sectors. 1. Transactional e-commerce 2. Services-oriented relationship-building for lead-building and support 3. Brand-building 4. Publisher or media site 5. Social network or community Dr. Chinmoy Kumar Roy 10 Pros & Cons of Online Marketplaces Wider choices of business models Additional business and source of income Reduced marketing costs 27x7 availability Wider market base Brand building Door to internationalisation Scam or counterfeit products Customer engagement Fake and misleading ratings and reviews Unsafe products Cross-border issues Technical challenges Online payments challenges Dr. Chinmoy Kumar Roy 11  Thank You Dr. Chinmoy Kumar Roy 12  Course Digital Marketing Strategy Week 1 Digital Marketing Landscape Lecture 5 Digital Marketing Communications Dr. Chinmoy Kumar Roy 1 Digital Marketing Communications Communications are integral to any marketing strategy. Digital marketing communication is communication through digital or electronic media among businesses and consumers. Unlike traditional marketing communication, digital marketing communication facilitates greater interactions or dialogs between the source and the recipient. (Shankar & Malthouse, 2007) Internet / Web Traditional Media Digital Media including including TV, radio, display ads, PPC, SEO, print, direct mail, etc. Affiliate, Email, etc. Dr. Chinmoy Kumar Roy 2 Digital marketing communications is typically the digital marketing equivalent of traditional marketing communication mix. The digital equivalents of these traditional media are known as digital media channels. Dave Chaffey has defined digital media channels as ‘Online communications techniques used to achieve goals of brand awareness, familiarity, favorability and to influence purchase intent by encouraging users of digital media to visit a website to engage with the brand and product, and ultimately to purchase online or offline through traditional media channels such as by phone or in-store. Dr. Chinmoy Kumar Roy 3  Search Engine Marketing Social Media Marketing Partner Marketing Digital Marketing Channels E-mail Marketing Public Relations Display Advertising Dr. Chinmoy Kumar Roy 4 1. Search Engine Marketing – Search engine marketing (SEM) is a digital marketing tactic to increase the visibility of company’s website on search engine results pages. Similar to search engine optimization (SEO) which help companies to structure their contents in such a way that it ranks high in organic search results, the SEM help companies bring their products and services to the attention of audiences through paid search engine advertising. (Source: TechTarget.com) Dr. Chinmoy Kumar Roy 5 2. Social Media Marketing – Social media marketing is the use of social networking platforms as means to interact with the customers to build brand awareness, increase sales and drive website traffic towards company’s website. Social media marketing have become increasingly popular technique of digital marketing. In social media sites, companies create their profile page and then place posts regarding their products and services, reviews of the customers, etc. Social media sites such as Facebook, Instagram, LinkedIn, Snapchat, etc. are popular sites for digital marketing. Dr. Chinmoy Kumar Roy 6 3. E-mail Marketing – Outbound communications from a company to prospects/customers to encourage purchase or branding goals. Email marketing is most commonly used for mailing to existing customers. Emails may be sent as part of a one-off campaign or can be automated, event-based, triggered emails – such as a welcome strategy that can be broadcast based on rules about intervals and customer characteristics. (Dave & Fiona, 2019) Dr. Chinmoy Kumar Roy 7 4. Display Advertising – Display advertising refers to the act of communicating the advertisement message using visually rich media. The main objective of display ads is to build brand image. Display ads is very powerful in creating awareness about the various attributes of the product and it acts as a push medium. The mode of communication may be through traditional media or digital media. Display ads through digital mode include ads served both via mobile and website. Rich media are the advertisements or site content that are not static, but provide animation, sound or interactivity. Dr. Chinmoy Kumar Roy 8 5. Public Relations – Online public relations, also known as E-PR or digital PR, is the use of the internet to communicate with both potential and current customers in the public realm. A Digital PR promotes a company via online blogs, websites, and social media. The digital PR improves SEO rankings, grows website traffic, generate leads, increase sales and helps in building brand. Dr. Chinmoy Kumar Roy 9 6. Partner Marketing – Partner marketing is a go-to-market tactic where two businesses work together to boost their prospects of reaching and winning over ideal customers. One popular technique of partner marketing is affiliate marketing. Partner marketing is the mutually beneficial collaboration between two businesses with the shared interest of developing marketing strategies to increase brand awareness and promote their products and services to the right target audience or consumer. Dr. Chinmoy Kumar Roy 10 Chaffey’s Six Channels & P-O-E-M Digital Media Paid Media Owned Media Earned Media Channels 1. Search Marketing Pay-per-click (PPC) Organic search (SEO) Backlinks 2. Social Media Marketing Paid social Organic social Earned mentions 3. Email Marketing Publisher email/push In-house email/push Partner emails 4. Display Advertising Programmatic display Native advertising Sponsorship 5. Public Relations Online advertorial Guest blogging Influencer outreach 6. Partner Marketing Affiliate marketing Co-branding Co-marketing Dr. Chinmoy Kumar Roy 11  Thank You Dr. Chinmoy Kumar Roy 12