Digital Marketing

“A Study on Challenges in Digital Marketing”

AT
PEPSICO
BY
Musaib Shaikh

A Project Report

Submitted To The

Department of Marketing

In Partial Fulfilment of the requirements for the award of the degree of

Abeda Inamdar senior college, Pune 411001

1
DECLARATION

I hereby declare that the Project entitled “ Challenges In Digital

Marketing”

submitted for the BBA degree is my original work and the

dissertation has not formed the basis for the award of any
degree, associate ship, fellowship or any other similar titles.

Place: Pune

Date: Musaib Shaik

2
ABSTRACT

An challenges in digital marketing will help you take the right decisions to make a
company successful online. Challenges process model provides a framework that
gives a logical sequence to follow to ensure inclusion of all key activities of
strategy development and implementation. A successful Digital Marketing should
be built on reviewing 7 core capabilities which are strategic approach, performance
improvement process, management buy-in, resourcing and structure, data and
infrastructure, integrated customer communications and customer experience.

This project is done with only Challenges in Digital Marketing. This project is
does not applicable for any other digital marketing services.

Marketers are faced with new challenges and opportunities within this digital age.
Digital marketing is the utilization of electronic media by the marketers to promote
the products or services into the market. The main objective of digital marketing is
attracting customers and allowing them to interact with the brand through digital
media.

3
Acknowledgement
I take immense pleasure in thanking our Honorable “Shaila Bootwala” and
our Marketing Director “Ameena Sabooni” for providing me an opportunity to
undergo BBA course.
I wish to express my sincere gratitude to our Principal Shaila Bootwala
and our HOD “Ameena Sabooni” BBA for encouraging me to complete the Project
Report.

I wish to express my deep gratitude to my Guide Miss Ameena

Sabooni BBA for his able guidance and useful suggestions, which
helped me in completing the Project Report in time.
Finally, yet importantly, I would like to express my heartfelt
thanks to my beloved PARENTS for their blessings, my
FRIENDS/CLASS MATES for their help and wishes for the
successful completion of this work.
Musaib Shaikh

4
 Index
DIGITAL MARKETING
-------------------------------------------------------------------------------------------------------------
--------------------------------
• Introduction-----------------------------------------------------------------------------
• Scope--------------------------------------------------------------------------------------
• Applications-----------------------------------------------------------------------------
• Importance -----------------------------------------------------------------------------

Current Landscape of Digital Marketing

-------------------------------------------------------------------------------------------------------------
--------

● Growth and Evolution of Digital Marketing -----------------------------

● Impact Of COVID – 19 On Digital Marketing --------------------------

Challenges Faced by Digital Marketers

-------------------------------------------------------------------------------------------------------------
------------

● Explanation of How Frequent Algorithm Updates Affect Digital

Marketing----------------------------------
● Strategies for Compliance and ethical data handling -------------------

● Content Saturation and its impact on audience engagement----------

● Analysis of the competitive landscape in Digital Marketing ----------

● Exploration of the Shortage of Skilled Digital Marketing

Professionals---------------------------------------------------------------------
● Recommendations for Digital Marketers to Navigate and Overcome
Challenges.

5
Conclusion --------------------------------------------------------------------------------------
Findings -----------------------------------------------------------------------------------------

Introduction
Today Digital marketing is one type of marketing being widely used to promote
products or services and to reach the consumers using digital channels very
rapidly. Digital marketing extends beyond internet marketing including channels
that do not require the use of Internet. It includes mobile phones (both SMS and
MMS), social media marketing, display advertising, search engine marketing and
many other forms of digital media.

Through digital media, consumers can access information any time and any place
where they want. With the presence of digital media, consumers do not just rely
on what the company says about their brand but also they can follow what the
media, friends, associations, peers, etc., are saying as well. Digital marketing is a
broad term that refers to various promotional techniques deployed to reach
customers via digital technologies. Digital marketing embodies an extensive
selection of service, product and brand marketing tactics which mainly use
Internet as a core promotional medium in addition to mobile and traditional TV
and radio. Nikon photo Gateway helps consumers share their digital photos with
friends online.
Titans brand Raga uses email newsletters to keep in touch with customers and
hence tries to strengthen customer brand loyalty. Magazine publishers can
activate and drive their customers into Internet with e-mails and SMS messages
to improve re-subscription rate for Example Film fare Magazines. Marketers
increasingly bring brands closer to consumers’ everyday life. The changing role of
customers as co-producers of value is becoming increasingly important (Prahalad
and Ramaswamy, 2004). Khan and Mahapatra (2009) remarked that technology
plays a vital role in improving the quality of services provided by the business

6
units. According to Hoge (1993), electronic marketing (EM) is a transfer of goods
or services from seller to buyer involving one or more electronic methods or
media. E-Marketing began with the use of telegraphs in the nineteenth century.

Scope
The scope of digital marketing is vast and encompasses various strategies and
channels for promoting products or services online. Here's a breakdown:

1. Search Engine Optimization (SEO): Optimizing website content to rank higher in

search engine results pages (SERPs) for relevant keywords, driving organic traffic.

2. Content Marketing: Creating and distributing valuable, relevant content to

attract and engage a target audience, including blog posts, videos, infographics,
and more.

3. Social Media Marketing: Utilizing social media platforms like Facebook,

Instagram, Twitter, LinkedIn, etc., to build brand awareness, engage with
audiences, and drive website traffic or conversions.

4. Email Marketing: Sending targeted emails to prospects or customers to nurture

relationships, promote products or services, and drive sales or conversions.

5. Pay-Per-Click (PPC) Advertising: Placing ads on search engines or social media

platforms and paying only when users click on them, providing instant visibility
and targeted reach.

7
6. Affiliate Marketing: Partnering with affiliates who promote products or services
in exchange for a commission for each sale or lead generated through their
efforts.

Applications
Digital marketing has numerous applications across various industries and
business sectors.

1. E-commerce: Digital marketing is extensively used by e-commerce businesses

to promote products, drive website traffic, and increase sales through channels
like SEO, PPC advertising, social media marketing, and email marketing.

2. Retail: Brick-and-mortar retailers utilize digital marketing to attract customers

to physical stores through online promotions, local SEO, social media advertising,
and mobile marketing.

3. B2B Marketing: Digital marketing plays a crucial role in business-to-business

(B2B) marketing by generating leads, nurturing relationships, and promoting
products or services through content marketing, email marketing, and LinkedIn
advertising.

4. Healthcare: Healthcare providers use digital marketing to reach patients,

promote services, and enhance patient engagement through online advertising,
content marketing, social media, and telemedicine platforms.

5. Hospitality and Tourism: Hotels, resorts, and travel agencies leverage digital
marketing to attract travelers, increase bookings, and enhance the guest

8
experience through strategies like search engine marketing, social media
campaigns, and online reviews management.

Importance
The importance of digital marketing lies in its ability to reach a vast audience,
drive targeted traffic, and generate measurable results.

1. Global Reach: Digital marketing allows businesses to reach a global audience

regardless of their size or location. With the internet's widespread adoption,
businesses can connect with potential customers worldwide through various
digital channels.

2. Targeted Advertising: Digital marketing enables precise targeting based on

demographics, interests, behavior, and other factors. This targeted approach
ensures that marketing messages reach the right audience, increasing the
likelihood of conversion.

3. Cost-Effectiveness: Compared to traditional marketing methods like TV or print

advertising, digital marketing often offers a higher return on investment (ROI) at a
lower cost. Businesses can allocate their budgets more efficiently by investing in
digital channels that deliver the best results.

4. Flexibility and Adaptability: Digital marketing offers flexibility and adaptability,

allowing businesses to quickly adjust their strategies based on market trends,
consumer behavior, or campaign performance. This agility ensures that

9
businesses can stay ahead of the competition and capitalize on emerging
opportunities.

5. Enhanced Customer Engagement: Digital marketing enables businesses to

engage with their audience in meaningful ways through social media interactions,
personalized email campaigns, interactive content, and more. Building
relationships and fostering customer loyalty are critical aspects of digital
marketing.

Current Landscape of Digital Marketing

1. Growth and Evolution of Digital Marketing

The growth and evolution of digital marketing have been fueled by advancements
in technology, changes in consumer behavior, and the expanding digital
landscape.

1. Early Years (1990s-2000s): Digital marketing began with the advent of the
internet and the proliferation of websites. Initially, strategies like banner ads,
email marketing, and basic SEO dominated the scene. Search engines like Yahoo!
and AltaVista were the primary channels for online discovery.

2. Emergence of Search Engines (2000s): The rise of Google and its dominance in
search marked a significant shift in digital marketing. SEO became more
sophisticated as marketers focused on optimizing websites to rank higher in
search engine results. Pay-per-click (PPC) advertising also gained traction with the
launch of Google AdWords.

3. Social Media Revolution (Mid-2000s): The emergence of social media platforms

like Facebook, Twitter, and LinkedIn revolutionized digital marketing. Brands
began leveraging social media for customer engagement, brand building, and
targeted advertising. Influencer marketing also started gaining momentum as
individuals gained significant followings on social platforms.

10
4. Mobile Marketing (Late 2000s-Present): The proliferation of smartphones and
mobile devices led to the rise of mobile marketing. Marketers began optimizing
websites for mobile users, creating mobile apps, and implementing location-
based targeting. Mobile advertising, SMS marketing, and mobile-responsive
design became essential elements of digital marketing strategies.

5. Content Marketing (2010s-Present): Content marketing emerged as a dominant

force in digital marketing, with brands focusing on creating valuable, relevant
content to attract and engage audiences. Blogs, videos, infographics, and
podcasts became popular mediums for content distribution, driving organic traffic
and building brand authority.

Impact of Covid 19 On Digital Marketing

The COVID-19 pandemic has had a significant impact on digital marketing, leading
to shifts in consumer behavior, changes in marketing strategies, and new
opportunities for businesses.

1. Acceleration of Digital Transformation: The pandemic accelerated the digital

transformation of businesses as they quickly pivoted to online channels to reach
consumers. Companies that previously relied heavily on traditional marketing
methods were forced to invest more in digital marketing strategies to maintain
visibility and connect with customers.

2. Increased Online Activity: With lockdowns, social distancing measures, and

remote work becoming the norm, people spent more time online for work,
entertainment, shopping, and socializing. This surge in online activity led to
increased opportunities for digital marketing, including higher website traffic,
engagement on social media, and online sales.

3. Shift in Consumer Behavior: COVID-19 altered consumer behavior and

preferences, leading to changes in purchasing patterns, brand loyalty, and content

11
consumption habits. Digital marketers had to adapt their strategies to meet
evolving consumer needs, preferences, and expectations in a rapidly changing
landscape.

4. Focus on E-commerce and DTC: The closure of physical stores and restrictions
on in-person shopping prompted a surge in e-commerce adoption. Businesses
prioritized their e-commerce and direct-to-consumer (DTC) channels, investing in
online stores, payment gateways, and logistics to facilitate online transactions and
fulfill customer orders.

5. Importance of Local and Mobile Marketing: As people stayed closer to home,

there was a heightened focus on local businesses and services. Local SEO, Google
My Business listings, and mobile marketing became essential for businesses to
reach consumers in their vicinity and drive foot traffic or online orders.

Challenges Faced by Digital Marketers

I. How Frequent Algorithm updates after digital Marketing

Algorithm updates in digital marketing platforms, such as search engines and

social media networks, occur regularly to refine and improve the algorithms that
determine how content is ranked, displayed, and distributed to users. These
updates aim to enhance user experience, combat spammy tactics, and ensure
that the most relevant and high-quality content is surfaced to users.

1. Search Engine Algorithms (e.g., Google):

- Google, as the leading search engine, continuously updates its algorithms to
provide users with the best possible search results.
- Major algorithm updates, often referred to as core updates, may occur several
times a year. These updates can have a significant impact on search engine
rankings and website visibility.

12
 - In addition to major updates, Google makes countless minor tweaks and
adjustments to its algorithms on a daily basis. These smaller updates are aimed at
improving search results and addressing specific issues or concerns.

2. Social Media Algorithms (e.g., Facebook, Instagram, Twitter):

- Social media platforms regularly update their algorithms to optimize user
engagement, prioritize content, and enhance the overall user experience.
- Algorithm updates on social media platforms can occur more frequently than
search engine updates, with changes often implemented on a weekly or monthly
basis.
- Updates may focus on factors such as content relevancy, user engagement
metrics, platform monetization strategies, and the promotion of certain types of
content or features.

3. Other Digital Marketing Platforms:

- Beyond search engines and social media networks, other digital marketing
platforms may also release algorithm updates or changes to their systems.
- Advertising networks like Google Ads and Facebook Ads may update their
algorithms to improve ad targeting, bidding strategies, and ad placement.
- Email service providers may adjust their algorithms for spam filtering, inbox
placement, and email delivery optimization.

II. Strategies For Compliance and Ethical Data Handling

Ensuring compliance and ethical data handling practices are crucial for
maintaining trust with consumers and complying with regulations.

1. Understand and Adhere to Regulations: Stay informed about relevant

regulations such as the General Data Protection Regulation (GDPR),

13
 California Consumer Privacy Act (CCPA), and other data protection laws
applicable to your jurisdiction. Ensure that your data handling practices
comply with these regulations, including obtaining appropriate consent
for data collection and processing.

2. Transparent Data Collection: Clearly communicate to users what data

you collect, why you collect it, and how it will be used. Provide users
with easy-to-understand privacy policies and terms of service that
outline your data handling practices in plain language.

3. Obtain Explicit Consent: Obtain explicit consent from users before

collecting their personal data. Use clear and unambiguous language
when requesting consent, and allow users to opt-in rather than relying
on pre-checked boxes or implied consent.

4. Data Minimization: Collect and retain only the data that is necessary
for your business purposes. Minimize the collection of sensitive or
unnecessary data, and regularly review and purge outdated or irrelevant
data from your systems.

5. Secure Data Storage and Transmission: Implement robust security

measures to protect the confidentiality, integrity, and availability of user
data. Use encryption, access controls, and secure protocols to safeguard
data during storage and transmission.

III. Content Saturation and Its Impact on Audience Engagement

Content saturation refers to the abundance of content available to

audiences across various digital channels, including social media,
blogs, websites, and email. As more businesses and individuals create
and publish content, competition for audience attention intensifies,
leading to content saturation.

14
 1. Decreased Visibility: With the sheer volume of content being
produced, it becomes increasingly challenging for individual pieces of
content to stand out and gain visibility. Content saturation can result
in lower organic reach on social media platforms, reduced search
engine visibility, and decreased website traffic.

2. Shortened Attention Spans: In a saturated content environment,

audiences may develop shorter attention spans and become more
selective about the content they consume. They are more likely to
skim through content quickly and may overlook or ignore content that
does not immediately capture their interest.

3. Increased Competition for Engagement: Content saturation leads to

increased competition for audience engagement. Businesses and
content creators must work harder to create compelling, high-quality
content that resonates with their target audience and encourages
interaction, such as likes, comments, shares, and clicks.

4. Content Overload: Content saturation can overwhelm audiences

with too much information, leading to content fatigue and decision
paralysis. Audiences may become disengaged or disinterested in
consuming content altogether, especially if they feel inundated with
irrelevant or low-quality content.

5. Quality vs. Quantity Dilemma: In a saturated content landscape, the

emphasis on quantity can sometimes overshadow the importance of
quality. Businesses may feel pressured to produce more content to
maintain visibility, but this can lead to a decline in content quality and
audience engagement.

IV. Analysis of the Competitive Landscape in Digital Marketing

Certainly, here's a point-wise analysis of the competitive landscape in

digital marketing:

1. Market Segmentation: Understanding how competitors target

different market segments can reveal gaps or areas of saturation.

15
 2. Target Audience Analysis: Examining competitors' audience
demographics, behavior, and preferences helps refine marketing
strategies and messaging.

3. Technological Advancements: Assessing competitors' adoption of

new technologies such as AI, AR/VR, and automation provides
insights into industry trends and potential areas for innovation.

4. Regulatory Changes: Monitoring how competitors navigate

regulatory challenges like data privacy laws ensures compliance and
may present opportunities for differentiation.

5. Digital Channel Strategies: Analyzing competitors' performance

across various digital channels (e.g., social media, search engines,
email) helps optimize resource allocation and identify gaps in
presence or engagement.

V. The shortage of skilled digital marketing professionals is a pressing issue

in today's job market.

1. Rapidly Evolving Industry: Digital marketing techniques and

technologies evolve at a rapid pace, creating a demand for
professionals who can adapt quickly to new platforms, algorithms,
and trends.

2. Diverse Skill Set Required: Digital marketing encompasses a wide

range of skills, including SEO, SEM, content marketing, social media
management, analytics, and more. Finding individuals proficient in all
areas can be challenging.

3. Technical Proficiency: With the increasing importance of data

analytics, automation tools, and AI-driven marketing solutions,
employers seek candidates with strong technical skills to navigate
these technologies effectively.

16
 4. High Demand, Low Supply: The digital marketing landscape has
expanded rapidly, but the supply of skilled professionals hasn't kept
pace with demand, leading to a talent shortage.

5. Global Competition: Companies worldwide compete for skilled

digital marketers, further exacerbating the talent shortage, especially
in regions with high demand and limited local talent pools.

VI. To navigate and overcome challenges in digital marketing, focus on:

1. Data-driven decision-making: Utilize analytics to understand

audience behavior and optimize strategies.

2. Adaptability: Stay updated with industry trends and be ready to

adjust strategies accordingly.

3. Collaboration: Work closely with other teams like sales, product,

and customer service to align efforts and maximize impact.

4. Experimentation: Don't be afraid to try new tactics and channels,

but be sure to measure results to learn from them.

5. Customer-centric approach: Prioritize providing value and solving

problems for your audience rather than solely focusing on promotion.

17
 Conclusion

The successful completion of this project indicates that the future of

marketing is in the hands of 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
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.

From this project we also learnt that challenges in digital marketing

highlights the dynamic nature of the digital landscape and the various
obstacles marketers face in reaching and engaging their target
audiences effectively.
Through our research, we have identified key challenges such as how
algorithm affects the Digital Marketing, content Saturation and its
impact on Audience, Competitive Landscape in Digital Marketing and
Shortage of Skilled workers. Digital marketers can navigate these
challenges successfully and drive meaningful results for their
organizations. It is essential for marketers to remain proactive, agile,
and innovative in overcoming obstacles and leveraging opportunities
in the ever-evolving digital realm.

18
 Findings

Get to know about challenges and opportunities for digital marketing

in India.

Gain basic understanding of SEO, SEM.

Fulfilling each and every requirement of client is very important

regardless of whether that requirements small or big.

I experienced the corporate feeling which gives me a good exposure.

I was able to put in practice what I have learnt in my first year of

marketing management curriculum.

Leadership quality, it’s all about the impact you have on other people.
You need to have leaders within an organization. Leaders will deal
with the customer, project, etc. as a leader.

Digital marketing work is all about a team work and it always try to
give best out of all.

Time management is the big management lesson I have learnt as make

individual more divert to words it work.

How to do a formal communication, the way how to communicate

with each level of management to get work done.

19
Observation is the best teacher
There are lots of situations where I am completely blank and I don’t
know how to do some task. In those situations I observed my
colleagues to know how they are doing it and I understood the
importance of observation.

20