Digital Marketing

SESSION 1

Introduction to Digital
Marketing

S T A N L E Y N E LV I S G L A T E
Department of Marketing
 Session Outline

Introduction
Digital Marketing tools
Differences between Digital Channels and Traditional
Channels
Key Trends influencing the growth of digital
marketing
Opportunities of Digital Marketing
Advantages of Digital Marketing
Challenges with Digital Marketing
The development of E-commerce and Digital
marketing platforms
 Session Objectives

At the end of the session, students are expected to:

Critically appraise the nature, importance and

challenges of digital marketing
To examine consumer trends and insight fuelling
digital marketing
Understand the differences between Digital Channels
and Traditional Channels
Appreciate the development of E-commerce and
Digital marketing platforms.
 Introduction

 The Internet boom, electronic payment systems,

social media and other digital tools have created a
lot of opportunities for digital marketing landscape to
flourish in the 21st century for organizations and the
daily life of different audiences has brought about a
deep transformation in marketing, its tools and
strategies, Chaffery and Ellis-Chadwick (2012)

 With the marketing landscape continually evolving,

It is important for marketers to stay ahead of their
competitors and deliver cutting-edge digital
 Introduction (Cont’d)

 Technology has changed the way the world works,

from governments, to organisations and even
individuals. It has influenced every sphere of society
and has impacted on how we see ourselves as
consumers/customers and co-producers;

 These changes in technology have created

possibilities that were once seen as unthinkable and
unimaginable.

Digital marketing can be done both online and

 Understanding
Marketing

Marketing is the process by which companies create

value for customers and build strong customer
relationships in order to capture value from customers in
return. Kotler and Armstrong

 Marketing is an organizational function and a set of

processes for creating, communicating, and delivering
value to customers and for managing customer
relationships in ways that benefit the organization
and its Stakeholders (Kotler and Keller, 2012).
 What is Digital Marketing?

Digital Marketing can be understood as a well-targeted,

conversion-oriented, quantifiable, and interactive
marketing of products and services by utilizing digital
innovation to attract the customers, and transform
them into clients in a sustainable fashion.

Digital Marketing is a form of marketing using

electronic media such as the web, e-mail, interactive
TV, IPTV and wireless media in conjunction with digital
data about customers characteristics & behaviors.
(Chaffey, Chadwick, Mayer, Johnson 2009)
 What is Digital Marketing?
(Cont’d)

Digital marketing encompasses all marketing efforts

that use an electronic device or the internet

Digital marketing is advertising delivered through

digital channels. Channels such as social media,
mobile applications, email, web applications, search
engines, websites, or any new digital channel
(Patel,2020).
 Some important Statistics to
Note

Approximately 283 billion U.S. dollars were spent on

digital advertising in 2018 worldwide. Far bigger
than the total GDP of many countries!

Digital advertising spending is expected to reach

around 517 billion U.S. dollars by the end of 2023.

(Guttmann, 2019)
Some important Statistics to Note:
Digital around the world
Some important Statistics to Note:
Overview of Global Internet Use
Some important Statistics to Note:
Social Media Use around the World
Some important Statistics to Note:
Weekly Online Shopping Activities
 What Does a Digital
Marketer Do?

Digital marketers are in charge of driving brand

awareness and lead generation through all the
digital channels -- both free and paid -- that are at a
company's disposal. These channels include:

 Social media,
 The company's own website
 Search engine rankings,
 Email, display advertising,
 Key Digital Tools and
Hardware that are Available
to Marketers
Electronic payment systems

Mobile devices (Smart phones, laptops, tablets, etc.)

Google analytics:, provides statistics and basic

analytical tools for search engine optimization and
marketing purposes

Computers
 Differences between Digital
Channels and Traditional
Channels
Cost efficiency: The efficiency of digital channels
reaching mass audience is greater than the
traditional channels of communication. The digital
media like the internet and social media enable
organizations to share information with their
customers all over the world at a cheaper cost.

Wider coverage: The digital media is able to reach

customers and audience at a distance location. There
is a greater ability of digital media to reach a global
market due to its ubiquity feature.
 Differences between Digital Channels
and Traditional Channels (Cont’d)

Degree of interactivity: There is greater interactivity

of digital channels of communication that is greater
ability of respondents to provide instant responses to
messages unlike the traditional media like newspapers,
radio and television

Degree of customization: There is greater opportunity

for organizations that employs digital channels to tailor
messages and information to meet individual customer’s
preferences whilst the traditional channels lack that
capability and strength. For example the availability
of internet has enable E-mails which offers a
personalize messages to target audience.
 Class Discussion

What do you consider to be some of the consumer

trends driving the growth in digital marketing ?
 Key Trends influencing the
growth of digital marketing
landscape
Customer education
Customer Sophistication
Changing nature of customer choice
Convenience and instant gratification
Changing consumer life style
Demographic change
Competitive reasons
Trends towards inter-connectivity
Growth in internet usage
The rise of “prosumers” – more power in hands of
consumers
 Opportunities of Digital
Marketing
Global market: Digital marketing model creates a
larger market size for an organization since there is no
limitation or boundary to the world market. The online
business model can enable the organization to sell or
buy from any country without location limitation.
Mass customization: Digital marketing approach
enhances the business ability to tailor products and
services to meet individual customer’s needs and
wants.
Enhancing Customer experience; Digital marketing
has enhanced the satisfaction level of customers in
terms of customer convenience in accessing products
 Advantages of Digital
Marketing

Convenience: 24 hrs a day, 7 days a week

No geographic barriers
Variety in contents
Wide reach
Personalisation
Ease of data collection
Easy data analysis (Google analytics!)
Competitor analysis
Faster response
Challenges/Disadvantages
with Digital Marketing
Security threat: A key challenge facing business
utilizing electronic tools to facilitate business
transactions is the ability of the business to protect
customer information from fraudsters and hackers
Data protection: Another challenge of digital
marketing is the confidentiality of customer data
and accounts details.
Cost of building website: There is initial cost that
is incurred by the organization which can discourage
the implementation of digital marketing strategy by
the organization
Worldwide competition
 Challenges with Digital
Marketing (Cont’d)
Threats from employees within the
organisation
 Employees passing on information to criminals
 Computer access by unauthorised personnel
 Malicious software and computer viruses
 Cyber-terrorism and cyber warfare – attacking e-
business critical infrastructures.

Human and technical error

 Poor systems configuration by network security
administrators
 Hardware and software failures – network going
 The Development Od E-commerce And Digital Marketing Platforms

Consumer education: The level of consumer

sophistication has been increasing over the years
which have contributed to the development of e-
commerce and digital marketing platforms.

Changing lifestyle of consumers: The

conveniences and quick access to service delivery
has become a choice criterion by customers when
planning to buy.

Technological development: The changes in

technology coupled with the continuous
 Ways technology has
changed the way we do
business
Technology has made business faster:
Technology has allowed for far-reaching
collaboration
Technology has reduced the barriers to market entry
Technology in business encourages innovation
Technology has changed relationship marketing and
selling
 Implications of Digital
Marketing

Marketing managers must consider the following, to ensure

a successful digital marketing strategy:

 Who are our existing / potential customers?

 How much do we know about their online presence?
 What are their current / future needs?
 How can we satisfy these needs?
 Can we offer a product/ service that the customer would
value?
 Can we communicate with our customers?
 Why should customers buy from us?
 Implications of Digital
Marketing (Cont’d)-
Actions
Communicate with your customers and find out how
you can satisfy their needs better. Role of social
media?

Establish ways to record and interpret customer

feedback. Online survey?

Use the information when making important

decisions about marketing, buying and selling.
END OF SESSION

THANK YOU!