A Project ON Digital Marketing - The New Face of Marketing Communication

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A PROJECT

ON

DIGITAL MARKETING – THE NEW FACE OF MARKETING


COMMUNICATION

BY

NAME OF THE STUDENT: SWADHINKUMAR SAHU

COURSE – MBA 4TH SEMESTER

REGD.NO-1906288052

NAME OF SUPERVISOR: SAROJKANTA JENA

DEPARMENT OF MASTER IN BUSINESS ADMINISTRATION

NM INSTITUTE OF ENGINEERING & TECHNOLOGY

BHUBANESWAR

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DEPARMENT OF MASTER IN BUSINESS ADMINISTRATION

NM INSTITUTE OF ENGINEERING & TECHNOLOGY

BHUBANESWAR

TO WHOOM IT MAY CONCERN

This is to certify that SWADHINKUMAR SAHU student of MBA 4th SEMESTER,


Roll No. 1906288052 of NM INSTITUTE OF ENGINEERING &
TECHNOLOGY has successfully completed the project on “DIGITAL
MARKETING –THE NEW FACE OF MARKETING COMMUNICATION”
under the supervision and guidance of MR.SAROJKANTA JENA The assignment
being submitted is genuine and original work to the best of my knowledge.

__________________________

MR.SAROJKANTA JENA

HOD OF MBA

NM Institute of Engineering & Technology

Bhubaneswar

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ACKNOWLEDGEMENT

As the old age salutation goes, I would like to express my whole hearted gratitude to
every individual who helped me in different ways to make this project a success
especially NM Institute of Engineering & Technology for giving the opportunity to do
this project under the guidance of their faculty.

It is a matter of great honour to acknowledge the invaluable guidance rendered to me


by my esteemed and revered guide MR.SAROJKANTA JENA He supported me
fully during my research.

I shall fail in my duty if I don’t express my gratitude towards the respondents without
whom this project would not have been successful.

Finally, no words of gratitude can express my indebtedness to my parents and my


friends for encouraging me throughout my study.

SWADHINKUMAR SAHU
4 TH SEMESTER
DEPT.OF MBA
REGD.NO-1906288052

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DECLARATION
I AM student of, NM Institute of Engineering & Technology,
Bhubaneswar declare that the Dissertation project entitled “ DIGITAL
MARKETING –THE NEW FACE OF MARKETING COMMUNICATION ” is
original work done by under the guidance of Mr.SAROJKANTA
JENA (HOD OF MBA Dept.)

We further declare that it is our original work as a part of our


academic course which is the partial fulfillment for Master OF
Business Administration ( MBA).

Submitted by:
SWADHINKUMAR SAHU

REDG NO - 1906288052

MBA 2ND YEAR

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TABLE OF CONTENT

SL. NO CONTENT PAGE NO.

1 EXECUTIVE 5
SUMMARY

2 INTRODUCTION 6 to 7

3 LITERATURE REVIEW 8 to 11

4 AIMS AND 12
OBJECTIVES

5 METHODOLOGY 13

6 INDUSTRY ANALYSIS 14 to 20

7 INDIA AND INTERNET 21 to 25


POPULATION

8 DIGITAL MARKETING 26 to 38

9 RESULTS AND 38 to 44
DISCUSSIONS

10 FINDINGS 46

11 CONCLUSIONS 47

12 APENDIX 48 to 51

13 REFERENCES 51 to 54

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EXECUTIVE SUMMARY:-

This report explains the importance of digital media marketing in presence era
and this report will help the reader to get an idea about the Industry, Indian
population and digital media, concepts of digital marketing, Duties and
responsibilities of client servicing executives in an agency, steps involved in
client servicing and consumer buying behaviour in the digital era. After
reading the whole report the reader will be able to understand the reason
behind growing digital media marketing.

Title of the Report is “Digital Marketing – The New Face Of Marketing


Communication”.and Objectives of the project is to understand the change
in consumer buying behaviour in digital era.

Methodologies used for achieving the objectives are descriptive study and a
research. For achieving the Objectives, I have done one research using an
online questionnaire. The title for the research is “Understand the consumer
buying behaviour of Indian in digital era”.

Main findings of the research are given here. Indian customers are highly
information seekers. They collect more information about a product before
buying it. Internet penetration in India is key player for this phenomenon. Most
of Indians are getting stimulus through advertisements, but they are not
reaching to end phase of customer purchase journey, mainly in high
involvement purchases. Brands are getting more touch point to reach their
target group in this digital era.

The successful completion of this project indicates that the future of marketing
is in the hands of digital. I conclude my research by quoting again that “
Brands can’t sustain without digital presence”.

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INTRODUCTION:-

Advertising in business is a form of marketing communication used to


encourage, persuade, or manipulate an audience to take or continue to take
some action. Most commonly, the desired result is to drive consumer
behaviour with respect to a commercial offering. Advertising is defined by
Richard F. Taflinger as “Advertising is the non-personal communication of
information usually paid for and usually persuasive in nature about products,
services or ideas by identified sponsors through the various media."

Advertising is normally done by a third party known as advertising agency.An


advertising agency is a service based business dedicated to creating,
planning, and handling advertising for its clients. An ad agency is independent
from the client and provides an outside point of view to the effort of selling the
client's products or services. An agency can also handle overall marketing
and branding strategies and sales promotions for its clients. Types of ad
agencies are

 Full service agencies


 Creative agencies
 Specialized agencies
 In-house agencies
 Digital agencies or new media agencies

This report is completely discussing about digital or new media agencies.


There was a time when Television was the most popular medium for Marketer
to promote, spread awareness and generate leads for their products but now
the trend has changed and Digital media has taken its place. Main reason for
this change was

 Traditional methods are expensive. Compared to digital marketing


channels, you could end up spending thousands of dollars more.
 Traditional marketing channels fail to provide instant feedback and reports
about who saw or heard an ad, and took action.

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Digital marketing, on the other hand, refers to marketing methods that allow
organizations to see how a campaign is performing in real-time, such as what
is being viewed, how often, how long, as well as other statistics such as sales
conversions.

Digital Media Marketing or 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.

Digital marketing was defined in Wikipedia as “marketing that makes use


of electronic devices (computers) such as personal computers, smart phones,
cell phones, tablets and game consoles to engage with customers. Digital
marketing applies technologies or platforms such as websites, e-mail, apps
(classic and mobile) and social networks”.

Peoples often referred digital marketing as 'online marketing' or 'internet


marketing' but it’s wrong. Digital marketing revolves around the Internet, which
explains why people tend to believe that digital marketing and Internet
marketing are synonymous. Nonetheless, they are different. Internet
marketing falls under the category of digital marketing. Internet marketing
encompasses digital marketing services such as search engine optimization,
display advertising, and email marketing.

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LITERATURE REVIEW:-

The purpose of doing research in the area of digital marketing is because it


seem huge, intimidating and foreign. Businesses are looking for clearer
picture to start but do not know where and how to start doing digital
marketing. In today’s time, social media channels such as Face book, Twitter,
Google and other social media firms have successfully transformed the
attitudes and perceptions of consumers and in the end helped revolutionized
many businesses. This was done through measurable vast network of
customers with trustworthy data with real-time feedback of customer
experiences.

It is much more convenient for businesses to conduct surveys online with a


purpose to get relevant information from targeted groups and analysing the
results based on their responses. Potential customers can look for reviews
and recommendations to make informed decisions about buying a product or
using the service. On the other hand, businesses can use the exercise to take
action on relevant feedback from customers in meeting their needs more
accurately.

Digital marketing is the use of technologies to help marketing activities


in order to improve customer knowledge by matching their needs
(Chaffey, 2013).

Marketing has been around for a long time. Business owners felt the need to
spread the word about their products or services through newspapers and
word of mouth. Digital marketing on the other end is becoming popular
because it utilizes mass media devices like television, radio and the Internet.
The most common digital marketing tool used today is Search Engine
Optimization (SEO). Its role is to maximize the way search engines like
Google find your website.

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Digital marketing concept originated from the Internet and search engines
ranking of websites. The first search engine was started in 1991 with a
network protocol called Gopher for query and search. After the launch of
Yahoo in 1994 companies started to maximize their ranking on the website
(Smyth 2007).

When the Internet bubble burst in 2001, market was dominated by Google
and Yahoo for search optimization. Internet search traffic grew in 2006; the
rise of search engine optimization grew for major companies like Google
(Smyth 2007). In 2007, the usage of mobile devices increased the Internet
usage on the move drastically and people all over the world started
connecting with each other more conveniently through social media.

In the developed world, companies have realized the importance of digital


marketing. In order for businesses to be successful they will have to merge
online with traditional methods for meeting the needs of customers more
precisely (Parsons, Zeisser, Waitman 1996).

Introduction of new technologies has creating new business opportunities for


marketers to manage their websites and achieve their business objectives
(Kiani, 1998).

With the availability of so many choices for customers, it is very difficult for
marketers to create brands and increase traffic for their products and
services. Online advertising is a powerful marketing vehicle for building
brands and increasing traffic for companies to achieve success (Song, 2001).
Expectations in terms of producing results and measuring success for
advertisement money spent, digital marketing is more cost-efficient for
measuring ROI on advertisement (Pepelnjak, 2008).
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Today, monotonous advertising and marketing techniques have given way to
digital marketing. In addition, it is so powerful that it can help revive the
economy and can create tremendous opportunities for governments to
function in a more efficient manner (Munshi, 2012). Firms in Singapore have
tested the success of digital marketing tools as being effective and useful for
achieving results. (Teo, 2005). More importantly, growth in digital marketing
has been due to the rapid advances in technologies and changing market
dynamics (Mort, Sullivan, Drennan, Judy, 2002). In order for digital marketing
to deliver result for businesses, digital content such as accessibility,
navigation and speed are defined as the key characteristics for marketing
(Kanttila, 2004). Other tried and tested tool for achieving success through
digital marketing is the use of word-of-mouth WOM on social media and for
making the site popular (Trusov, 2009). In addition, WOM is linked with
creating new members and increasing traffic on the website which in return
increases the visibility in terms of marketing.

Social media with an extra ordinary example Facebook has opened the door
for businesses to communicate with millions of people about products and
services and has opened new marketing opportunities in the market. This is
possible only if the managers are fully aware of using the communication
strategies to engage the customers and enhancing their experience (Mangold,
2009). Marketing professional must truly understand online social marketing
campaigns and programs and understand how to do it effectively with
performance measurement indicators. As the market dynamics all over the
world are changing in relation to the young audience accessibility to social
media and usage. It is important that strategic integration approaches are
adopted in organization’s marketing communication plan (Rohm & Hanna,
2011).

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Blogs as a tool for digital marketing have successfully created an impact for
increasing sales revenue, especially for products where customers can read
reviews and write comments about personal experiences. For businesses,
online reviews have worked really well as part of their overall strategic
marketing strategy (Zhang, 2013). Online services tools are more influencing
than traditional methods of communication (Helm, Moller, Mauroner, Conrad,
2013). As part of study, it is proven that users experience increase in self-
esteem and enjoyment when they adapt to social media which itself is a
motivating sign for businesses and marketing professional (Arnott, 2013).
Web experiences affect the mental process of consumers and enhance their
buying decision online (Cetină, Cristiana, Rădulescu, 2012). This study is very
valuable for marketing professional as it highlights the importance of digital
marketing.

The Internet is the most powerful tool for businesses (Yannopoulos, 2011).
Marketing managers who fail to utilize the importance of the Internet in their
business marketing strategy will be at disadvantage because the Internet is
changing the brand, pricing, distribution and promotion strategy.

Pakistan has seen tremendous growth in media with 20 million people have
access to the Internet but still marketers insist on doing things the traditional
way (Mohsin 2010). Management and structure in Pakistan are still based on
ancient paradigm where customers are moving ahead with their demands and
expectations. This gap is widening day by day with limited skills and mind-set
available in Pakistan to solve the problem for the demanding customers.
Companies in Pakistan including the MNC’s are going the traditional way and
keeping the digital aspect just to show off in tune with the modern trends.

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AIMS AND OBJECTIVES:-

PRIMARY OBJECTIVE:-
 The main objective of the study is to understand the consumer
buying journey in Digital era.

SECONDARY OBJECTIVES:-
 To know affinity in customers for collecting information before
purchase.
 To determine out the media, which is most important in
creating stimulus in Indians?
 To understand the media consumption of Indians.
 To figure out how Indian will purchase a product.
 To understand post purchase behaviour of Indian

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METHODOLOGY:-

The descriptive research design is used for analysing and studying the
process of Business Development. It is very simple & more specific than
explanatory study.

Data Sources:

Primary Data: -

It is a first-hand data which is collected by you only. The different way of


collecting primary data is personal interview, questionnaire, survey etc. As my
project is descriptive study there is no primary data collected as such.

Secondary Data:-

Secondary data is collected from already existing sources in various


organization broachers & records. Secondary data for the study were
collected from the magazines, websites & other previous studies.

To meet the objectives, the study used qualitative research. The descriptive
study was done through review of existing literature that helped in validation
and extraction of the important variables and factors. Data was collected from
secondary sources. Secondary sources were magazines, websites, books,
office executives, and company data.

I have also used an online questionnaire to understand the consumer buying


behaviour of Indians in digital era

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INDUSTRY ANALYSIS:-

The Indian Media and Entertainment (M&E) Industry, one of the most vibrant
and exciting industries in the world, has had a tremendous impact on the lives
and the Indian economy. As the M&E industry widens its reach, it plays a
critical role in creating awareness on issues affecting, channelling the energy
of and building aspirations among India’s millions. As it entertains and informs
the country, the M&E industry has been a catalyst for the growth of large parts
of the Indian economy. M&E industry consist of TV, Print, Films, Radio, Music,
OOH, Animation and VFX, Gaming and Digital Advertising.

The FICCI-KPMG 2014 Report 'The Stage Is Set' showing the Indian media
and entertainment (M&E) industry has grown by 11.8 per cent in 2013 while
comparing with 2012 and touched Rs 918 billion. It is expected to touch Rs
1785.8 billion by 2018, with a CAGR of 14.2 per cent.

By the end of 2014, the industry is expected to stand at Rs 1039 billion.


Additionally, digital advertising has shown promising growth in 2013 while
comparing with 2012, which is about 38.7 per cent, followed by gaming which
grew by 25.5 per cent. As for the 2018 prediction: Digital advertising is
expected to lead the CAGR with 27.7 per cent, followed by radio with 18.1 per
cent. Gaming and television are expected to register a CAGR of 16.2 per cent
each, followed by growth rates of animation and VFX (15.9 per cent), music
(13.2 per cent), films (11.9 per cent) and OOH with 9.2 per cent expected
CAGR.

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According to the annual advertising expenditure report from GroupM, The
digital media advertising revenues for the year 2013 is estimated at Rs
2,520.1 crore (around $405 million) , up 30% from Rs 1,938.6 crore in 2012,.
Digital contributed to 6.5% of the total media advertising expenditure in 2013,
up from 5.5% share in 2012.

The agency estimates that the digital media advertising revenues to reach Rs
3,402.2 crore ($546 million) in 2014, registering a 35% growth year on year.
This will represent around 7.9% of the total media advertising expenditure in
2014, which is estimated at Rs 43,065.4 crore. The company notes this will be
driven by election spending by the government and political parties across all
media.  GroupM made the prediction in the latest edition of its annual report
This Year, Next Year. Digital media were projected to increase 35%, with TV
slowing to 12% from last year’s 14.6% and print picking up to 8.5% from 4.6%
in 2013.

Digital ad spends accounted for 8.3 percent of the total ad spends of Inr362.5
billion in 2013. Digital media advertising in India is grown by 38.7 per cent in
2013, faster than any other ad category. [6] With the dramatic growth in
mobile usage, content providers and advertisers are seeking opportunities to
get their message across on this preferred medium of the masses.

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It is estimated that the total internet user base will reach 494 Million by the
end of 2018 as against 938 million TV viewers in the same year. This means
that the internet user population will be approximately 53 per cent of the total
number of TV viewer in the country in 2018 compared to 27 per cent in 2013.
This shift towards the digital media is important for digital media strategists to
consider, in order balancing their marketing budgets between online media
and traditional TV strategy.

IAMAI & IMRB report of March 2013 showing trends in breakup of Digital ad
market among various ad types like search ads, display ads, mobile ads,
social media ads, email ads and video ads. By seeing this breakup we can
understand marketer are giving importance to all venues to place ads.

BUSINESS MODEL OF INDUSTRY:-

ATD- Agency Trading Desk DSP- Demand Side Platform SSP- Selling Side
Platform

About Process

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Clients would give authority to agencies, to wear the shoes of clients. Agency
will create ads, which may be banner ads or videos. After the creation and
getting approval from clients, agency while find out the portals or websites
where the T.G is present. Later give the order to DSP or ATD, this order
contains details regarding where to place ads or which portal is requiring to
placing the ad. This DSP/ ATD will bid in ad exchange for that portal.
Otherwise agency can directly approach to ad networks and give orders.
These ad networks buy the inventories from publisher and give to agency.
From publisher view he can sell inventories through Ad networks or through
SSP. If publisher give to SSP, they will place those space in ad exchange for
bidding. Through ad exchange DSP/ATD will buy those inventories. Bidding
will not only for space but also for T.G which required for clients.

Ad exchanges are technology platforms that facilitate the bids for buying and
selling of online media advertising inventory from multiple ad networks. The
approach is technology-driven as opposed to the historical approach of
negotiating price on media inventory.

A demand-side platform (DSP) is a system that allows buyers of digital


advertising inventory to manage multiple ad exchange and data exchange
accounts through one interface. Real-time bidding for displaying online ads
takes place within the ad exchanges, and by utilizing a DSP, marketers can
manage their bids for the banners and the pricing for the data that they are
layering on to target their audiences. A supply-side platform or sell-side
platform (SSP) is a technology platform, web publishers of the world use a
supply-side platform to automate and optimize the selling of their online media
space.

Porter’s Five Model Analysis of Digital Advertising Industry


Porter’s model will help analysis the industry and understand where the power
lies in the business. Here I am using porter’s model to understand digital
advertising industry in India. Generally, in the Indian advertising industry,
contracts are long termed, and customers are likely to keep going back to the
same advertiser so long as results were obtained the first time.

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1) Threats of New Entry
 Full service agencies have high demand in Market.
 Lack of getting efficient work force is a threat in digital
advertising.
 Cost of setting up a digital agency is low. But agencies need to
invest a huge amount in backend function like technology.
 Getting clients in the initial stage is a bit difficult, because clients
will usually look the past experience of agency.
 Government regulations in the digital advertising are low. While
comparing with M&E industry.
2) Bargaining power of suppliers
 Lot of suppliers are there, but some suppliers who have high reach
and affinity will charge high price for placing ads in their portals.
 Real time bidding will lead to increase the demand of some portals.
 Bargaining power of suppliers, who provide data and information are
very high.
 Seasonal campaigns put pressure on supply side to charge high.
 Employee or work force with proper knowledge is limited.
3) Bargaining power of buyers
 Buyer are the clients of agencies, basically buyers are high idea
seekers.
 Clients will choose agencies which have good experience in
industry.
 Clients like long term relationships with agencies, so they also try to
adjust with agencies.
 Clients can ask agencies to change pattern of campaigns at any
time.
 Clients like MNC’s have high power over agencies, but SME’s will
satisfy with performance of agencies.
 Backward integration by buyers is not possible.

4) Threats of substitutes

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 No. of substitutes is high, substitutes include Print media, TV, OOH
and Radio.
 Substitutes are too popular among buyers. They had high demand in
past years.
 Main competitor for Digital advertising is TVC, but trends are now
changing FICCI-KPMG report of 2014 showing growth of digital is
very high while comparing with others media.
 But media consumption through radio is increasing now.

5) Rivalry by existing competitors


 At present competitors are low, but it can be increase in future.
Because lot new players are coming to the industry.
 Existing competitors have high profile clients and clients loyal toward
them.
 Most of the traditional agencies are now concentrating in digital also.
 Existing firms in the Industry are creating variety and unique
campaign for clients.
 Most of the firms have efficient backend support in technology.
 Existing firms have the expertise manpower and firms giving good
remunerations to employees. So employees are loyal towards
employers.
 Some firms are popular due to execution of innovative campaigns.
 Few of the brands have in-house agencies, it will reduce business
but not in a high level.

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Conclusion of Porter’s Five Force Analysis

 Low threats for new entry.


 High bargaining power of suppliers.
 Bargaining power of buyer is medium, but in coming year there is
chance for increase. Due to lot of players are coming to industry.
 Threats of the substitutes are high, but it will change in coming years.
 Rivalry by existing competitors is high, but possible to break it by doing
some unique campaign for client.
 Indian market is a potential market for digital advertising due to high
internet and mobile penetration.

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INDIA AND INTERNET POPULATION:-

India, with 1,387,297,452 people is the second most populous country in the


world, while China is on the top with over 1,439,323,776 people. [10] The
figures show that India represents almost 17.31% of the world's population,
which means one out of six people on this planet live in India. Although, the
crown of the world's most populous country is on China's head for decades,
India is all set to take the numerous positions by 2030. With the population
growth rate at 1.58%, India is predicted to have more than 1.53 billion people
by the end of 2030.

India is currently having online population of 560M, among them 60% are
males and 40% are females. In have 110 M mobile internet users, among
them 80% are males and 20% are females. 176M of the total internet
population are part of Social Medias.

India has bypassed Japan to become the world’s third largest Internet user
after China and the United States, and its users are significantly younger than
those of other emerging economies, global digital measurement and analytics
firm comScore has said in a report. Riding on a 31% year-on-year increase,
India’s online population grew to 73.9 million. With an extended online
universe in excess of 145 million the market is at a tipping point for online
businesses. The numbers are lower than other recent estimates, possibly
reflecting comScore’s methodology that only factors in PC and laptop-based
Internet usage.

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Online Behaviour of Indian Internet Users
Trends in online behaviour are changed a lot, social networking is leading
now. Early people will use internet to access email and for searching
information. But now people like to be social, they are interested in sharing
their life with others. 25% of the population are doing social networking in
India followed by 23% in services. Services include emailing and instant
messaging.

Mobile Internet Users


Internet penetration in India is driven largely by mobile phones, with some of
the cheapest and most basic hand-sets today offering access to the internet.
According to IMAI, India has 110 million mobile internet users of which 25
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million are in rural India. The growth of internet penetration in rural India is
driven largely by the mobile phone; 70% of rural India's active internet
population access the web via mobile phones. This may have to do with the
difficulty in accessing PCs. Forty-two percent of rural India's internet users
prefer using the internet in local languages. The high prevalence of content in
English is a hurdle for much of rural India.

Research report of InMobi showing the behaviour mobile user in internet, 21% of their total
consumption is for Entertainment and Social Media, which followed by Games, General
Information Search and Email.

Social Networking
Social Networks capture the largest percentage of consumers’ time in the
region. ComScore data’s showing 86% of the Indian web user visit a social
networking site. Facebook continues to be the number one social network
with a 28% increase in traffic and a reach of 86%. Average time spend by a
Indian user on Facebook is 217 minutes. LinkedIn emerges as number two,
while Pinterest and Tumblr are the fastest growing networks but growth of
twitter is declined by 15% in 2013 while comparing with 2012.

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Entertainment and Online Video
According to comScore data, the online video audience in India grew an
astounding 27 percent in the past years; YouTube continues to be the top
video property with more than 55% share. International publishers including
Facebook, Yahoo and Dailymotion get a majority of the 54 million who
watched videos. YouTube is the most popular with 32,519 visitor.

Social Video report saying 46% of internet users watch brand related video
every week. 54% watching videos that are informative or entertaining often
leads to a number of other positive activities such as visiting the brand
website. Peoples are now likely to regularly watch videos using their smart
phones. Almost six in ten internet users have gone to purchase an item after
seeing it in an online video.

Media Consumption of Indian’s


On an average Indian consumers are spending 6.10 hours in media per day.
In traditional media Indian audience spend only 195 min or 3.15 hours. If we
see the breakup it will be 86min in television, 37 min in newspaper and 30 min
in radio. Remaining 4.55 hours or 214 min in new media or digital media.
Break up of new media will be like 102 min in mobile, 79min in online and 33
min in tablets.

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From a marketers view digital platform is very important because customers
have more presence in digital media. Customers are spending more time on
digital, so it is easy to catch customers in digital platform, more than that
spending digital is much cost effective while comparing with traditional.

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DIGITAL MARKETING

Digital marketing is the promotion of your business, organisation or brand


using channels such as the Internet, mobile devices, television and radio in
addition to using creative online advertising, video, podcasts and other such
methods to communicate your message. Internet marketing in particular plays
a huge part in any digital marketing strategy and is becoming the core of
many organisations overall marketing strategies, particularly with regard to
social media and viral marketing.

Digital marketing ecosystem is not only concerned with internet marketing and
social media marketing, in introduction we discussed that peoples have a
belief that internet or social media marketing are same but not same, be clear
from beginning itself. Digital marketing ecosystem consists of internet
marketing and social media marketing. They are just a channels for
communication, digital ecosystem consist of integrating channels and
integrating services.

DIGITAL ECOSYSTEM

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SEARCH ENGINE
Search engine optimisation (SEO) is the art of getting a website to work better
with search engines (like Google, Bing & Yahoo), and to look for achievable,
profitable, ranking opportunities through keyword research. It is a quest for
increased visibility in search engines via relevant copy, quality links, domain
trust, social popularity and search engine connectivity.

Search engine marketing (SEM) is a broader term than SEO, and is used to
encompass different options available to use a search engine’s technology,
including paid ads. SEM is often used to describe acts associated with
researching, submitting and positioning a website within search engines.  It
includes things such as search engine optimization, paid listings and other
search-engine related services and functions that will increase exposure and
traffic to your Web site. 

DISPLAYS
Display advertising is a type of advertising that typically contains text (i.e.,
copy), logos, photographs or other images, location maps, and similar items.
In periodicals, display advertising can appear on the same page as, or on the
page adjacent to, general editorial content. Normal banners, Rich media
banner, Interstitials and pops are example of displays.

MOBILE MARKETING
Mobile marketing is used in reference to any marketing efforts on or with a
mobile device. It involves planning, creating, and implementing a mix of
initiatives to bring together sellers and buyers via mobile devices. Mobile ads,
Mobile websites, Apps and Games are some of examples for mobile
marketing.

SOCIAL MEDIA MARKETING


Social Media refers to any software tool that enables and encourages
engagement in conversation or sharing. Popular forms of social media include
Facebook, Twitter, LinkedIn, YouTube, Pinterest, Google + and blogs. Now all

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day’s social media become platform for marketer to make conversation with
customers. Brands are now engaging customers through social media.

EMAIL MARKETING
E-mail Marketing is a type of direct marketing that involves sending
personalized, targeted messages to a specific audience. E-mail Marketing is
easy to use, low cost, and effective. Most of the B2B business in present era
in following email marketing, but in B2C also email marketing is productive.

VIDEO
Marketers are now use video to make customers aware of brands and to
sharing the experience of other customers. YouTube ads are too popular in
video ads. In social media platforms also brands are sharing video.

ANALYSIS
Analytics is the practice of evaluating data, and the process by which a
company arrives at a most advantageous decision. Here marketer analysis
the integrate channel to understand the effectiveness of communication.
Analysis may be based on numbers of visitor or like in social media pages.
Etc.

CONTENT MANAGEMENT
After analysis the integrate channels marketer can able to understand the
problems with current contents. Later he can manage the content to increase
the engagement rate, content may be text in banners, images or websites.

ADVANCED TARGETING
Advanced targeting are techniques involving the sending of targeted
messages to a specific audience. It is used to increase the effectiveness of a
marketing campaign. Behavioural targeting is also a part of advanced
targeting, here marketer can target the customer based on their past
behaviour in online. Marketer can put ads in other webpage where customer
is going.

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CREATIVE
Creative is the artistic component of an ad or website. It usually includes an
image and copy present in ads or website. Marketer can make those contents
attractive to customers. Marketer will sometimes change the entire design of
websites, apps..etc.

RESEARCH AND PLANNING


Marketer will do some research to understand the behaviour, taste and
preference to customers in digital platform. This research may be doing by
using paid-tools like ComScore...Etc. Through this research marketer can
understanding where T.G is present or what T.G would to do in online. After
research marketer will plan new campaigns based on those research reports.
These campaigns are more effective to reach the T.G properly.

DIGITAL STRATEGY
Digital strategy is the process of specifying an organization's vision, goals,
opportunities and initiatives in order to maximize the business benefits
through digital media. Strategy will be different for each brand, it will base on
the brand objective and target groups interest. It is actual a plan formulated by
the marketer to explore the opportunities. Strategy may be short term or long
term, but it need to be fit with market situations.

Types of Digital Marketing

In normal outbound marketing, we will use pull and push marketing strategy.
Like that in digital marketing also pull and push are types.

In push digital marketing the marketer sends a message without the


recipient actively seeking the content, such as display advertising on websites
and news blogs. Email, text messaging and web feeds with customized
contents can also be classed as push digital marketing when the recipient has
not actively sought the marketing message. Push marketing allows you to
target your demographics and use your marketing dollars to promote your
product to the people you know are interested in what you have to sell. A
push marketing campaign can be more expensive when it comes to upfront

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costs, so you really need to be sure that your marketing is going to reach the
right people at the right time. Behaviour targeting is good example for push
digital marketing.

In Pull digital marketing includes blogging, email marketing, social media,


info graphics and other forms of visual messaging and search engine
optimization (SEO). A pull marketing campaign also includes public relations
or other ways of reaching out to potential or already realized customers who
you want to keep engaged. While a pull marketing campaign can be less
expensive to get started, you will incur costs in other ways. For example, if
you are running a social media campaign, you will need to hire someone to
manage your social media and respond to people who leave comments or ask
questions. Social media gets people talking and that has a major impact on
sales. Pull marketing also requires a greater investment in time, but it gives
you more ability to entertain your customers and educate them about your
company.

But don't get confused by seeing Email in push and pull, there is a difference.
If marketer is sending emails with customized content or banners to specific
group of customers is push digital marketing. If marketer is sending emails
with the same content or banner to all customers is pull digital marketing.

AIDMA as AISAS in Digital Era


AIDMA widely accepted model describing the psychological process leading
up to the consumer’s decision to purchase a product. This model is similar to
AIDA model. The AIDMA Model was first advocated by Roland Hall, an
American economist, around 1920.

According to this model, there are five key processes: Attention, in which the
consumer first notices the product or advertisement, followed by Interest,
desire, memory and action. This model has been used extensively in the
advertising and marketing industries.

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AISAS is a process model of consumers purchasing activities in the Internet
age. AISAS is a consumption behaviour model that has been advocated by
Dentsu since 2004. It was developed to observe behaviours based on the
understanding that the Internet has become prevalent, and that consumers
now have access to environments in which they can obtain and transmit
information themselves.

In this model, the key processes are: Attention, in which the consumer first
notices the product or advertisement, followed by Interest. After this, the
consumer Searches for information, and then makes a purchase (Action),
after which information is shared with others. In comparison to “AIDMA,” the
psychological process has become more compact, and the Action process
has expanded.

Advantages of Digital Marketing


Digital Advertising is increasingly an inherent budgetary component of many
organizations today. Organizations of all sizes use the medium to promote
their products and services. So well, why do so many organizations use the
medium? Simply put, it is due to the numerous advantages that online
advertising offers. These are discussed in the paragraphs ahead.

Reach - The ability of the online medium to target a certain demographic of


users is one of the greatest advantages of digital advertising. In addition, the
geographical reach of the online medium is far greater than that of traditional

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media. It’s not only cost effective to achieve a wider geographic area but the
ads can also be targeted to the desired audience. For example, if an
advertiser is keen on selling his or her products targeted to a certain
demographic of people, it is quite possible through online advertising. Digital
advertising has matured to the extent that web publishers, media agencies
and advertisers themselves know the optimal ways and websites for a certain
category of products or services.

Measurement - With various tools becoming available, tracking effectiveness


of ad campaigns is becoming possible today. In other words, measuring
Return of Investment (ROI) is increasingly possible today. Organizations that
were previously reluctant to spend online, now realize that the online medium
does offer means to alleviate any such fears. Moreover, when properly
designed online marketing campaigns generate the desired results,
advertisers are further encouraged to continue advertising online.

Interactive and Engagement - The Internet is arguably the most interactive


and engaging medium among various others. Interactive campaigns have
become a norm with the power of the online medium. One such
advertisement worth mentioning is the campaign by AXE where the end user
could alter the smile of a woman as he/she liked to i.e. in an interactive
framework. The advertisement struck an instant chord with the youth to which
AXE the brand is positioned for Customers are basically just a click away from
the advertisers. In other words, direct response between end users and
advertisers is possible through the online medium.

Time - Through the Internet, an advertiser can reach a desired target group or
demographic in a much shorter time frame. For example, if an advertiser
needs to plan some sort of ambush marketing, the online medium can be an
effective means of achieving it. Even otherwise i.e. for regular marketing
campaigns, the total time necessary to complete an online advertising
campaign is less than that of traditional advertising methods.

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Cost - When compared to traditional forms of advertising, digital advertising is
cheaper. Various payment models are available between the advertisers and
publishers. Many a time, advertisers are charged only when visitors click on
their ads. The various payment models are discussed in detail in the next
section.

Digital Advertising: Ad Avenues


SEARCH ADVERTISEMENTS: Advertisements made up of text (displayed
largely as sponsored links on search engines) come under this category.
These are backed by hyperlinks that when clicked on, take the potential
customer to the advertisers website.

DISPLAY ADVERTISEMENTS: Advertisements that are placed at various


points on a web page that typically contain logos, photographs, other images
or even text. Technologically these comprise of Image, Simple flash and Rich
media with& without video ads.

MOBILE ADVERTISEMENTS: Advertisements that are viewed or consumed


on mobile phones or tablets come under this category. These comprise of
Mobile Web ads, SMS, MMS, Mobile Video & TV ads and In-App ads.

SOCIAL MEDIA ADVERTISEMENTS: Advertisements of any type: text,


display, stamp pads etc displayed on various social media websites like:
Facebook, Twitter, LinkedIn, Pinterest, Orkut etc fall into this category.

EMAIL ADVERTISEMENTS: Advertisements that involve sending across a


commercial message to a group of people using email comprise of this ad
type. Emails are used to engage with existing customers to get repeat
business as well as to acquire new customers.

VIDEO ADVERTISEMENTS: Advertisements that fall broadly under the


display type but have video within them and are served before, during and/or
after a video stream on the internet. This type comprises In-Video ads,
Standard In-Stream ads (pre rolls, mid rolls or post rolls) and True View ads.

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Some of the Basic Terms in Digital Marketing

 Impression - An impression is a measure of the number of times an ad


is seen, whether it is clicked on or not. Each time an ad displays it is
counted as one impression.

 Page View - Viewing the page is known as page view. It gets counted
once the page loaded.

 Leads - When one person fills his details in the given box is known as
lead.

 Conversion - The percentage of people whose activity can be tracked


while clicking on an ad or visiting a website to actually purchasing a
product or service. A high conversion rate indicates that the link, ad or
site was successful

 Inbound link - Link connecting to your website from a different website.

 Profiling - To build a picture of a target customer based on information


from various sources including customer transactions completed forms
and demographic data.

 Unique Visitor - Unique IP address accessing a website.

 Landing Page - A custom we page designed to convert visitor into


leads or sales. Email, banner ads and even offline outbound marketing
campaigns drive traffic to a landing page to capture information or
trigger a sale. Landing page is also called as destination page or splash
page.

Types of ads
 Above The Fold: Above the fold refer to banners ads which are
displayed at the top of a web page.

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 Rich- media: Online ads that contain motion, sounds or video are
termed as rich media ads

 Interstitial Ads: Ads that appears between web pages.

 Banner Ads: Embedding an ad into a web page- know as a click


through due to interactive actions where the consumers clicks and is
taken to the banner ad’s company websites

 Pop-up: Ads that displays in a browser window either in the front or


behind the current browser window.

Monetary term in Digital Marketing

 Cost –Per- Action (CPA): Cost of advertising based on a visitor taking


some specifically defined action in response to an ad. “Action” include
such thing as a sales, transaction, a customer acquisition or a click

 Cost- Per -Click (CPC): Cost of advertising based on the number of


clicks received.

 Cost- Per-Thousand (CPM): The standard unit for buying or selling


Internet advertising. The thousand stands for ‘thousand advertising
impression or views’.

 Pay- Per- Impression: Online advertising where an advertiser pays a


pre-agreed price each time a user clicks on their advertisement. The
cost for the click is often negotiated through auction, with ad placement
determined by the relative size of the bid, as well as other factors.

 Pay-Per-Inclusion: Search engine marketing programs that guarantee


web site listing for specific keyword search term for a fee.

 Pay-Per-Lead: Paying to acquire leads from an outside party at a set


rate or amount per lead

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Branding in Digital Era
Before doing this internship, I believed marketer is responsible for building a
brand or marketer is a custodian for a brand. But while doing internship, I
understood marketer is not a custodian, he is a person who guides a product
to become a brand.

Today, brand custodians are the connected users who exist across digital
platforms. They are multifaceted. They are the publishers, circulators,
ambassadors, instigators and at the same time they are the custodians as
well. Their digitally connected existence has power, credibility, influence,
depth, and reach. Their digital messaging has the velocity, acceleration, and
momentum required to impact brands. Yet brands and their default custodians
continue to live blissfully in an illusion about the control they exercise over
their brand.

Brand is an enabler in the current age. It is the participants, the brand


conversations and the platforms that amplify the brand and drive the brand
philosophy. Businesses need to, therefore, understand the consumers and
the evolving digital sphere better and continue to build brands within the
digitally connected ecosystem by focusing on the following 3 elements-

People

The digital age has democratized individuals. They are no longer passive
consumers, but active and creative participants. They expect and believe in

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the co-creation of an experience, thereby evolving from consumers to users.
They are becoming the most credible and reliable source of the true picture of
a brand.

Consumers are beginning to seek a relationship of fair exchange between


themselves and the businesses where each contributes and everyone gains.
Individuals are seeking a multidimensional relationship that provides them
with more than just the brand product/service.

The fair exchange relationship is also offering new opportunities to the


business to build more human connections. Businesses will have to become
receptive to this new age definition of relationship that consumers seek.

Channels

With consumers evolving into users and participating in co-creation, it is


important for brands to offer those channels and platforms that allow them to
participate in this process. Users are seeking channels that offer them more
than just digital promotional activities; they want channels that allow them the
freedom to be publishers of content, information and data, that give them
control over what content they produce and consume, that allow them to co-
create brand experience.

The channels also need to be device agnostic. Users are adapting to the
usage of different devices throughout the day to execute tasks at hand. They
might use a smartphone or tablet to complete functional tasks etc. while on
the move, but they use a PC for heavy content creation and research.
According to a google research, 90 percent of people move between devices
to accomplish a task, with virtually all of them completing their task in one day.
The most popular starting point is the smartphone. In most cases, the tasks
are continued on a PC though tablets are also becoming a popular option for
continuing social networking and watching videos.

Businesses and brands need to accept that it is the consumer who has
become a more credible publisher by virtue of their access to a device which
is always on and active. Creating an environment of device agnostic platforms

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and channels that allow co-creation of content between brands and
consumers will address this shift.

Engagement

It is about creating a window with enhanced attention to influence behaviour


and motivations. With every business eyeing the opportunity to engage users,
it is critical to focus on engagement by increasing brand salience and
influencing buyer behaviour and choice. Brands should be able to map a
customer’s journey to understand where they can add value and create an
opportunity to engage them. Brands need to understand that engagement is
not about pushing product messages; it is about capturing the imagination
and the attention of the user. It is about designing a naturally engaging
experience.

Businesses need to understand that digital environment is not about


technology but about attention, where the consumer is at the core, armed with
powers like never before. Businesses and brands should, therefore, focus on
connecting the dots and realize that now, in the digital age, it is all about co-
owning a brand.

RESULTS AND DISCUSSIONS

1) How do you get information about new Products?

Other Sources 7%

News 13%

Advertisements 40%

Family 10%

Friends 30%

2) Do you Collect information before purchasing the products?

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5%

Yes
No

95%

3) What type of information will you collect?


Customer's Experience 21%

Quantity 11%

Attributes 10%

Quality 32%

Price 26%

4) Did you ever purchase from an online site?

19%

Yes
No

81%

5) If yes, then what type of product / services did you purchase


online?

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Electronic 22%

Books 11%

Travel products 17%

Fashion accessories 19%

Kichen an home items 2%

Toys 2%

Sport equipments 11%

Gifts 13%

Automotives 3%

6) Do you watch television?


7%

YES
NO

93%

7) Do you watch television programs through online?

47% Yes
53% No

8) Do you read Newspapers?


7%

YES
NO

93%

9) Do you read the News through online?

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26%

YES
No

74%

10) Do you have mobile phone or smartphones?


1%

YES
NO

99%

11) Do you have a laptop or PC?


6%

YES
NO

94%

12) Do you have a tablet?

30%

YES
NO

70%

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13) Do you have an internet connection in any of the above
mentioned gadgets?
4%

YES
NO

96%

14) When do you use these gadgets?

With friends 33%

College 26%

Office 16%

Watching T.V 25%

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15) What you do with these gadgets?

Chatting 21%

Watch Videos 14%

E- books 6%

Blogging 6%

News reading 11%

Shopping 12%

Surfing 16%

Games 14%

16) Do you ever notice advertisement?


3%

YES NO

97%

17) If yes, from where?

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Radio 6%

OOH 6%

Magazines 14%

Newspaper 17%

Online Ads (Banner & Videos) 35%

TV 22%

18) Mention one from of media, which you give more


importance?

Radio 4%

OOH 3%

Newspapers 11%

Online 48%

TV 34%

19) How do you normally purchase a product?

Visit and purchase from retail shop itself 19%

Visit the retail shop and purchase from laptop 7%

Visit the retail shop and purchase from mobile 4%

Research and purchase from laptop 11%

Research and purchase from mobile 6%

Research in mobile and purchase from laptop 10%

Research in laptop and purchase from retail shop 22%

Research in mobile and purchase from retail shop 21%

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20) After purchase, what type of experience will you share with
others?

Nice deal, in terms of price 14%

Bad experience 2%

Good experience 17%

All the above mentioned 67%

21) How will you share your experience with others?

Face to face talk 37%

In company website 4%

Write a blog 3%

Messaging 24%

Social networking sites 32%

FINDINGS

 Indian customers are highly information seekers. They collect more


information about quality, price and refer customer’s experiences before
purchasing a product.
 Advertisements have high impact for creating stimulus in Indian
customers. But this stimulus will get in to action only through opinion
leaders.
 Indian consumers have high tendency to go for online purchase. They
have high affinity to go online for electronic products and apparels.
 One of the current trends in Indian youth and young Indians are
watching the T.V programs via online portals. May be the main reason

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is convenience of time, they can watch programs which they had
skipped due to some reasons.
 The same thing is happening for the newspaper also, people have more
affinity towards online news portals. Here's the reason may be they can
get news updates very early; they don’t need to wait for daily
newspapers.
 From the first part of this research itself, we know that customers are
highly information seeker. It may be the reason for high trust in online
ads. They can search for more information after seeing an ad or online
is the only two way communication channel for customers.
 Most of the Indians prefer to purchase from a retail shop only, but
before going to retail shop they will seek information about the product
through an online platform. Here is actually change happens in
consumer buying journey, early times consumer belief a product only
after seeing the product in a retail shop.
 But now Indian customers want to get conviction about a product before
going to retail shop. So from a marketers view they want to convince
their customers before going to a retail shop.
 Brands want to build a cool presence over digital platforms because the
customer will do research about the product after seeing an ad or after
getting stimulated.

CONCLUSION

The successful completion of this project indicates that the future of marketing
is in the hands of digital. Digital marketing is not only concerned with placing
ads in portals, it consists of integrated services and integrated channels.
Marketers want to use these components in an effective way to reach target
groups and to build a brand. In this digital era marketer is not the custodian for
a brand, people who are connected across the digital platforms are the
custodians.

Brands want to build their presence over digital platform, because customers
have high affinity towards digital media than other media’s. More than that

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customers are highly information seekers and digital media is the only
platform for two way communication between brands and customers.

Digital media is the best platform to convert a product to a brand. Because it


is more cost effective and it provide lot of touch points to marketer. Brands
can able to engage their target group in an effective way through digital
platforms. Digital media is not only for engagement, brands can increase their
customers or they can retain their existing customers. Digital platforms help to
increase the impact of brand recall in target groups.

The research focused on the consumer buying behaviour shows that, Indian
consumers are highly information seeker and they will do research about a
product before going to a retail shop. So brands want to give platforms to
consumers to understand their product or to get a really feel of that brand.

I honestly believe that this project report will be at most useful for marketers to
understand the digital marketing and also to plan for future strategies.

I conclude my research by quoting again that “Brands can’t sustain without


digital presence”.

APPENDIX

Appendix 1: Questionnaire

Understand Consumer Buying Behaviour of Indians

This questionnaire will be used to understand the consumer buying behaviour


of Indians.

1) How do you get information about products?

 Friends
 Family
 Advertisements

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 News
Other sources

2) Do you collect the information before purchasing the product?


 Yes
 No

3) What type of information will you collect?

 Price
 Quality
 Attributes
 Quantity
 Customer's Experience

4) Did you ever purchase from an online site?


 Yes
 No

5) If yes, then what type of product/ service did you purchase online?

 Apparels
 Electronic
 Books
 Travel Products
 Fashion accessories  
 Kitchen and Home items 
 Toys
 Sports equipment’s 
 Health and Beauty Products
 Gifts
 Automotive 

6) Do you watch television?

 Yes
 No

7) Do you watch television programs through online?

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 Yes
 No

8) Do you read newspaper?

 Yes
 No

9) Do you read News through online?

 Yes
 No

10) Do you have mobile phone or smartphones?

 Yes
 No

11) Do you have a laptop or PC?

 Yes
 No

12) Do you have a tablet?

 Yes
 No

13) Do you have internet connection in any of the above mentioned


gadgets?

 Yes
 No

14) When do you use these gadgets?

  While watching TV
  Office
 College
 With friends

15) What you do with these gadgets?

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 Games
 Surfing 
 Shopping
 News reading
 Blogging
 E-booking Reading
 Watching Videos
 Chatting

16) Do you ever notice advertisements?

 Yes
 No

17) If yes, from where?

 TV
 Online
 Newspapers
 YouTube
 Magazines
 Out Door Hoardings
 Radio

18) Mention one form of media from the list below, which you give
more importance?

 TV
 Online 
 Newspaper
 YouTube
 Out Door Hoarding
 Radio
 Display ads in shops

19) How do you normally purchase a product?

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 Research in mobile and purchase from retail shop
 Research in laptop and purchase from retail shop
 Research in mobile and purchase from laptops
 Research and purchase from mobile
 Research and purchase from laptop
 Visit the retail shop and purchase from mobile
 Visit the retail shop and purchase from laptop
 Visit and purchase from retail shop itself

20) After purchase, what type of experience will you share with
others?

 Nice deal which you got in terms of price


 Bad experience with the product
 Good experience with the product
 All the above mentioned 

21) How will you share your experience with others?

 Social networking sites


 Messaging
 Write a blog 
 In company website
 Through face to face talk

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