Syllabus topics (RTMNU)
- Digital marketing: Meaning, concept, evolution
- Difference between digital marketing and traditional marketing
- Opportunities and challenges in digital marketing
- Digital marketing channels: mobile marketing, search engine optimisation, affiliate marketing, content marketing
- Online consumer: concept, factors influencing, latest trends, business requirements for online consumer
- Customer value journey: Meaning, stages, factors influencing
- 5As Framework
- The Ozone O3 Concept
Digital Marketing: Meaning and Concept
Definition: Digital marketing is the promotion and selling of products and services using digital technologies โ the internet, websites, search engines, social media, e-mail and mobile phones โ to reach and engage customers.
Concept: It is customer-centred, interactive and measurable. Every click, view and purchase can be tracked, so a firm knows which campaign works. It can target people by age, place, interest and behaviour at low cost.
Evolution of Digital Marketing
- 1990s โ first websites, e-mail and banner ads; early search engines.
- 2000s โ Google search ads and SEO grow; e-commerce begins (in India, sites like Rediff and later Flipkart, 2007).
- 2010s โ social media (Facebook, YouTube, Instagram) and smartphones; cheap mobile data in India after 2016 brought crores of new users online.
- 2020s โ video, short reels, influencer marketing, UPI-based payments, quick-commerce, and AI-based personalised ads.
Digital Marketing vs Traditional Marketing
| Basis | Traditional marketing | Digital marketing |
|---|---|---|
| Media | TV, radio, newspapers, hoardings | Websites, search, social media, e-mail, apps |
| Communication | One-way | Two-way, interactive |
| Cost | High | Low; even small firms can start |
| Targeting | Broad mass audience | Precise (age, location, interest) |
| Measurement | Difficult | Real-time results (clicks, conversions) |
| Reach | Mostly local/national | Global, 24ร7 |
| Changes | Hard once printed/aired | Can be edited any time |
Opportunities and Challenges in Digital Marketing
Opportunities: (1) huge and growing internet and smartphone users in India; (2) low cost reach for small businesses and start-ups; (3) precise targeting and personalisation; (4) easy measurement and quick changes; (5) direct sale through e-commerce and UPI; (6) new careers โ SEO expert, content creator, social media manager.
Challenges: (1) heavy competition and ad clutter; (2) frequent changes in platform algorithms; (3) privacy and data protection rules (Digital Personal Data Protection Act, 2023); (4) fake reviews, fake news and online fraud; (5) negative comments spread fast; (6) need for skilled staff; (7) poor connectivity and digital literacy in some rural areas.
Digital Marketing Channels
- Mobile marketing โ reaching customers on smartphones through SMS, WhatsApp Business, mobile apps, in-app ads, push notifications and location-based offers. Example: Swiggy and Zomato sending meal-time notifications.
- Search Engine Optimisation (SEO) โ improving a website so that it appears higher in the free (organic) results of search engines like Google for relevant keywords.
- Affiliate marketing โ a business pays a commission to outside partners (affiliates, bloggers, influencers) for each sale or lead they bring through their special link. Example: Amazon Associates programme.
- Content marketing โ creating and sharing useful, interesting content (blogs, videos, infographics, e-books, podcasts) to attract and keep customers rather than directly selling. Example: banks' YouTube videos on saving tips.
Online Consumer: Concept and Factors Influencing
Meaning: An online consumer is a person who searches, compares, buys or uses products and services through the internet โ websites, apps or social media.
Factors influencing online buying:
- Convenience โ shopping anytime, anywhere, home delivery.
- Price and offers โ discounts, cashback, easy comparison.
- Trust and security โ safe payment, brand reputation, return policy.
- Reviews and ratings โ opinions of other buyers.
- Website/app experience โ speed, easy design, local language.
- Payment options โ UPI, cards, cash on delivery, EMI.
- Social influence โ friends, influencers, social media posts.
- Personal factors โ age, income, digital skill.
Latest Trends and Business Requirements for Online Consumers
Latest trends: mobile-first shopping; quick-commerce delivery in minutes; short-video and live commerce; voice and vernacular (regional language) search; social commerce through WhatsApp and Instagram; buy-now-pay-later; AI chatbots and personalised recommendations.
What a business needs to serve online consumers: a fast, mobile-friendly website or app; clear product information and photos; secure payment gateway; reliable delivery and easy returns; quick customer support (chat, WhatsApp); active presence on search and social media; data privacy and protection of customer information.
Customer Value Journey: Meaning, Stages and Factors
Meaning: The customer value journey is the path a person follows from first hearing about a brand to becoming a loyal customer who recommends it to others. Marketers plan content and offers for each stage.
Common stages: awareness โ engagement โ subscription (gives e-mail/phone) โ conversion (first purchase) โ excitement โ ascension (buys more) โ advocacy โ promotion.
Factors influencing the journey: quality of the product, customer experience at each touchpoint, price, trust, reviews and word of mouth, after-sales service, and personalised communication.
5As Framework
Given by Philip Kotler and co-authors in Marketing 4.0 (2016) to describe the customer path in the digital age:
| Stage | Customer behaviour |
|---|---|
| Aware | Comes to know of the brand from ads, past experience or others |
| Appeal | Gets attracted to a few brands |
| Ask | Searches, reads reviews, asks friends and online communities |
| Act | Buys and uses the product, takes service |
| Advocate | Becomes loyal, repurchases and recommends to others |
The O-Zone (O3) Concept
Also from Marketing 4.0. It says a customer's decision is shaped by three influences:
- Own influence โ the customer's own past experience, preferences and judgement.
- Others' influence โ friends, family, online reviews, social media communities (word of mouth).
- Outer influence โ the company's own marketing: advertising, sales staff, offers.
Marketers try to manage the outer influence and encourage positive others' influence, so that customers move towards advocacy.
Likely exam questions
- (Long, 8/16 marks) What is digital marketing? Distinguish between digital and traditional marketing and explain the opportunities and challenges of digital marketing in India.
- (Long, 8/16 marks) Explain the customer value journey. Describe the 5As framework and the O-Zone (O3) concept.
- (Short, 4 marks) Explain any two digital marketing channels.
- (Short, 4 marks) State the factors influencing an online consumer.
- (Short, 4 marks) What is affiliate marketing?