DIGITAL MARKETINGBy: Akshay sethi (4548/12)

Birla Institute of technology,Mesra

What is digital marketing

• “Digital marketing” is the process of building and maintaining customer relationships through online activities to facilitate the exchange of ideas, products, and services that satisfy the goals of both parties.

• In simple words: Getting found online

History of digital marketing The term 'digital marketing' was first used in the 1990s. In the 2000s and the 2010s, digital marketing became more sophisticated

as an effective way to create a relationship with the consumer that has depth and relevance.

The rapid evolution of digital media has created new opportunities and avenues for advertising and marketing.

In 2012 and 2013 statistics showed digital marketing remained a growing field.

Digital media growth is estimated at 4.5 trillion online ads served annually with digital media spend at 48% growth in 2010.

Digital marketing consist of ?

• Key components:

Website design (user experience) Search engine optimization (SEO) * Pay per click (PPC) * Social media marketing (SMM) * Email marketing Display advertising (banner ads) Affiliate marketing Content marketing Online reputation management (ORM)

NEED FOR DIGITALISATION Innovative companies are taking the elements of each

channel that their customers value most, and combining them to deliver a more valuable experience overall. For example, fashion retailer All Saints has integrated the convenience of web browsing in their physical stores by adding internet enabled kiosks on-site, so customers can browse and check availability on-line, and then try the item on in-store and get the best of both worlds. Apple stores use mobile Point of Sale terminals to add the convenience of ‘click to pay’ to their physical shopping experience and provide customers with an email receipt from the POS terminal.

NEED FOR DIGITALISATION

Loss of control over the customer relationship The proliferation of digital channels and devices gives

consumers greater access to information, and the means for communication and collaboration. The physical world is being replicated in the digital world through digital communities, businesses and assets, fundamentally changing the way consumers engage with businesses and each other.

NEED FOR DIGITALISATION Brands are facing a loss in the information monopoly and a

shift towards two-way communication and conversation. It is vital that brands embrace the shift in consumer power and find ways to make it work for mutual advantage. This is because as customers gain more power to choose where and how they interact, they will begin to choose a smaller number

of organisations with which to maintain primary relationships.

Benefits of digital marketingOver traditional marketing *

Puts the consumer in control Provides convenience Increases satisfaction Drives brand loyalty Reduces the selling cycle Reduces the cost of sales Builds your brand Provides targeted results It is measurable * Cost effective *

COMPETITION AND RISK OF DIGITALISATION

Digital channels lower barriers to entry and increase globalisation, leading to a spiral of intensifying competition and commoditisation

Innovative organisations are taking the opportunity to diversify, bringing cross-industry convergence and blurring of the boundaries between industries.

Previously physically distinct products and sectors now compete with one another, over less clearly defined customer bases. In this way, there is an extension of ‘superbrands’, such as Tesco, Google or Virgin.

Google, is today in direct competition with social networking sites, they have also moved into the mobile handset market, and even the online fashion market

RISK

As more and more information becomes available to customers and competitors, and non-traditional players enter the market, prices, values and product characteristics all tend to converge

Price comparison, and unbundling of products, means that the margin play is becoming more and more transparent, and less and less acceptable to consumers.

To reduce the impact, many organisations are successfully shifting their focus from products to services as a way of differentiating themselves and also increasing margins

Nike allow customers to personalise large aspects of their product range through NikeID; Apple and Amazon have successfully integrated their products with service propositions; and publishing houses such as Random House and BBC Books are partnering to create a set of re-bundled ebook and television series products

How digital marketing evolved over the years?

Back in the day, it was all about search engine optimization – (organic search)

Build a website Apply the art of on and off page SEO to your website, you build links, you build more links, and

you build even more backlinks, focus on the meta-tags, content, etc. You hope it shows up in Google someday You hope it displays on the results with the right keywords (what people are typing in when they

search) It was like fishing and hoping you will get a catch.

With SEO, PPC was born – (paid search)

Google’s Adwords (3 line ads that show up on the right/top of search engine results)

Microsoft’s Adcenter Yahoo’s search marketing (Overture) Build ads around keywords and pay for

everyone that clicks the ad and visits your site

Latest Developments and Strategies

• As digital marketing is dependent on technology which is ever-evolving and fast-changing, the same features should be expected from digital marketing developments and strategies. This portion is an attempt to qualify or segregate the notable highlights existing and being used as of press time.

Segmentation Influencer Marketing Online Behavioural Advertising Collaborative Environment

Latest Developments and Strategies

• Segmentation: more focus has been placed on segmentation within digital marketing, in order to target specific markets in both business to business and business to consumer sectors.

• Influencer Marketing: Important nodes are identified within related communities, known as influencers. This is becoming an important concept in digital targeting. It is possible to reach influencers via paid advertising, such as Facebook Advertising or Google Adwords campaigns, or through sophisticated sCRM (social customer relationship management) software, such as SAP C4C, Microsoft Dynamics, Sage CRM and Salesforce CRM. Many universities now focus, at Masters level, on engagement strategies for influencers.

Latest Developments and Strategies

• Online Behavioural Advertising: Online Behavioural Advertos refers to the practice of collecting information about a user’s online activity over time, “on a particular device and across different, unrelated websites, in order to deliver advertisements tailored to that user’s interests and preferences.

• Collaborative Environment: A collaborative environment can be set up between the organization, the technology service provider,and the digital agencies to optimize effort, resource sharing, reusability and communications.

REFERENCES• http://en.wikipedia.org/wiki/Digital_marketing• http://www.ey.com/Publication/vwLUAssets/The_digitisation_of_e

verything_-_How_organisations_must_adapt_to_changing_consumer_behaviour/$FILE/EY_Digitisation_of_everything.pdf