strategies is that the digital marketing is based on usage of electronic content, internet or digital

media for promotion of product or services while the traditional marketing is based on use of
traditional media: print, visual media or audio media for promoting a product or a service

Case Study
1. Rita wants to start her own baking and cooking training institute offering online and ofline
classes. She has a limited budget which she is planning to spend on buying kitchen equipment
and material for her training classes. She is planning to take up courses on Indian and Continental
cuisine. What will be the best marketing strategy for her? Identify the best marketing techniques
orher.

2. Ram runs a mom-and-pop store in a small locality in Delhi. Recently he is planning to expand his
business and include bakery items as well. But since bakery items are perishable and he wants to
minimize his losses, he wants to identify the prospective demand so that he can bake accordingly
How can we help him with the help of digital marketing techniques?

Questions for Discussion

1. What is Digital Marketing? Discuss the importance ofdigital marketing
2. Examine the scope of digital marketing in India. What are the challenges that come with digit:
marketing?
3. Explain the concept of digital marketing. How is it diferent from traditional marketing?
4. Write a note on Digital market penetration in India
Discuss the importance of digital marketing over traditional marketing

Multiple Choice Questions (MCas)

Which of the following is the correct depiction of Digital Marketing?
a) E-mail Marketing b) Social Media Marketing
c)Web Marketing d) All of the above
Which of the following is incorrect about digital marketing?
a) Digital marketing can only be done offline
b) Digital marketing cannot be done ofline.
c) Digital marketing requires electronic devices for promoting goods and services.
d) In general, digital marketing can be understood as online marketing, web marketing, ar-
e-mail marketing.
Basis of Difference
Digital Marketing Traditional Marketing
Reaching niche It is easier to
target people based on | It is not possible to reach niche audience
audience various characteristics like
demographics, | as the advertisements are general and
location, interest, gender etc. target customers locally.
Interactivity This approach is more interactive as it In traditional
is possible to
gather the feedback of the| wasted in waiting approach, a lot of time is
for the feedback and
customers and resolve their issues in real
responses the customers as interaction
of
time. is not possible in real time.
Advantages It is very cost efficient and leads to
better The main advantage is to reach customers
customer satisfaction as their issues
and concerns are who are not active on digital platforms or
quickly addressed and do not have access to internet.
resolved.
Disadvantage The main disadvantage is inability to| The main disadvantage is inability to-
reach people who do not have access to interact with the customers in real
digital media. time and measure the effectiveness of a

marketing strategy.

SUmmary
This chapter talked about basics of Digital marketing. Internet has also changed the way businesses
aredone and opened up various
opportunities in the field of product development, service delivery,
customer connect and most
importantly marketing. Today, digital marketing plays a significant role
in the success of an
organization as internet has changed the way people shop and thus it becomes
Extremely important for businesses to change the way they market their products. Strengthening of
digital payments and infrastructure along with increased access of internet and electronic devices
has also increased the scope for e-commerce and the need and benefits of
digital marketing. using
marketing is a form of direct marketing which links consumers with sellers electronicallyDigitalI
interactive technologies like emails, websites, online forums and
newsgroups, interactive television,
mobile communications etc. In present scenario, digital marketing extremely
is relevant and is of
paramount importance to any business. It not only gives direction to the business but also help
adopting/changing
inBusinesses strategies based on changing environment and changing customer needs.
across the globeare employing various tools of digital marketing to generate significant
return oninvestment (ROI). Digital marketing includes Website planning and development,
Web Display advertisement, Search Engine optimisation, social Engine marketing,
Searchmedia Content
marketing,
about
Affiliate marketing. Web/marketing analytics, marketing
etc. We will

study all these techniques in

various chapters in this book. Businesses have option of
adopting traditional form of marketing or digital marketing strategies or both. In order to design
the most appropriate marketing strategy for a business, firm must understand each channel and
how all strategies work and what is the best possible integration of both traditional and modern
marketing strategies for maximising the reach of the business. The basic difference between the two
1.16| DigitalMarketing
What is Digital Marketing?
Any kind of online marketing using internet may be called digital marketing. It can be defined as the
promotion of products or services via one or more forms of electronic content and media (digital
channels.) Some of the digital marketing channels are: official website of the company, Social media
platforms like Facebook, YouTube, Twitter, Instagram etc., blogs, e mail marketing, bilboards etc
Technological advancements, increased internet penetration and smartphones usage has made
digital marketing very popular. Digital marketing has reduced the marketing cost significantly and
benefitted both startups and large firms.
Digital marketing appears to be more cost-effective and rewarding than traditional because it is
increasingly becominga more direct way to connect with the target audiences globally.
For instance, the cost and rewards of organic searches continue to increase with the continuous
development of Social Engine Optimization. Promoted tweets and Facebook posts, influencer trips,
SEO, are examples of how expensive digital marketing can be.

Difference between Digital and Traditional Marketing

Basis ofDifference Digital Marketing Traditional Marketing

Meaning The digital marketing is based on usage The traditional marketing is based on use
of electronic content, internet or digital | of traditional media: print, visual media|
media for promotion of product or or audio media for promotinga product
services. or a service.

Targeted audience People who are using social media and The audience are people who are not |

other digital platforms. active on digital platforms.

Reach Digital marketing has wider reach. | It can cover only a certain area or
Through Social media marketing. | population.
mobile marketing etc. business can
reach the whole world. It brings business
possibilities across the globe.

Cost It is more cost effective as promoting on |It is comparatively costly as it involves

digital platforms can be done with less payments for the advertisements on TV,
or no cost. Upgrading in real time is also radio or print media.
cost free.

Measurement With the help of marketing analytics, it | It is difñicult to measure how much a
of result helps to monitor and track the impact of| company has gained from the traditional
marketing strategy in real time and thus marketing as it is extremely difficult for|
enables taking quick remedial action if them to know how many people watched
necessary. Measurement is also more |their advertisement on TV or read it in|
accurate as it is very easy to know clicks newspaper etc.
on ads and conversion into sales rate.
 Introduction to Digital Marketing || 1.15

1.8 Difference between Tradiional and Digitol Marketing

Today's marketers face a marketplace that is becoming increasingly more competitive, more specialised,
more globalised and more technologically-driven. To participate and sustain relevance, marketers
require a combination of creativity and knowledge.
Businesses have to identify the way of presenting information and gathering feedback about a service
or a product. They have option of adopting traditional form of marketing or digital marketing strategies
or both. In order to design the most appropriate marketing strategy for a business, firm must understand
each channel and how all strategies work and what is the best possible integration of both traditional and
modern marketing strategies for maximising the reach of the business. Thus, it is important to identify
the difference between the two.

What is Traditional Marketing?

Traditional marketing in business is the oldest form of marketing. It was more popular in 1990s before
the wide spread of internet. It involves offline marketing channels like Print (newspapers, magazines,
brochures, etc.), Broadcast (radio, TV, etc.), Outdoor (fliers, billboards, banners, etc.), Direct Mail
(postcards, catalogs, etc.) and Telephone (SMS marketing, telemarketing, etc.) The promotional content
is presented to the consumers using above mentioned medium.
The traditional approach to marketing is based on as 4Ps of marketing i.e. Product, Place, Promotion
and Price. Businesses try to maximise their sales by leveraging on these components. But over the time,
it has been realized that this approach is more seller oriented than being customer oriented. Modern
concept of marketing surrounds around the consumer and offering products and services which provides
maximum utility to the consumer. For example: Urban Clap offers services which was available earlier
also, but it is successful because it not only provides services but offers time and place utility also by
providing the service at your doorstep at the convenient time. That too just through a few clicks. An
approach proposed by Robert E Lauterborn (1990) is an alternative to the traditional model of 4Ps. This
approach of 4Cs focus on Consumer, Cost, Communication and Convenience. This implies that focus
has to be shifted from Product to Consumer. Cost of providing a service has to be given more focus
than the price. Promotion is to be replaced by Communication. This means that instead of focusing
on promotion of a product, a business should focus on building communication with the customers.
Further, Place' in 4Ps is replaced by convenience i.e. providing place utility and time utility.
With the rise of social media, traditional marketing is often undervalued by marketers. However, it
still holds extreme value in total marketing and should be allotted budget in total marketing expenditure.
Traditional marketing can be extremely impactful and easier to understand. Many TV commercials have
become extremely memorable and have contributed significantly to the sales revenue. Ads like that of
maggi, rasna have always captured place in heart of the kids. Another traditional marketing campaign
Asli masale sach sach as its tagline, MDH built on the values and traditions of Indian culture to sel
its masalas. "Jab mein chhota bachcha tha, badi shararat karta tha, meri chori pakdi jaati.. jab roshni
deta Bajaj" The Bajaj bulb ad of the 80s had a jingle that was catchy and it subtly connected the brand
with the trust of generations. There can be numerous examples where the kind of permanent impact
traditional ads have created is not possible to achieve through any other medium.
1.14|| Digital Marketing
developed and search engine optimization can be achieved. Identifying, understanding and
targeting customers is the biggest challenge. Since SEO and paid advertisement are getting
more competitive, a company cannot afford to waste their time and resources on content that
is too broad or poorly targeted customers. There are various tools available that help in creating
customer persona which can be used to overcome this challenge.
2. Limited Internet Access: The success of digital marketing depends upon internet access of
Customers. The Digital Marketing can be unsuccessful in those areas having no or limited
internet accessibility.
3. Generating Qualified Leads: Generating leads is a very important aspect of business. Service
based businesses attempt to generate qualified leads like networking on LinkedIn to grow their
business. Along with paid ads such as Facebook Ads and Google Ads, it is necessary to generate
solid value proposition through video marketing, webinars, conferences etc.
4. Creating Engaging Content: In order to catch attention from the audience, it is very important
to generate engaging content. Content has to be interactive, interesting and fulfilling for the
customers. It is extremely challenging to identify customer's interests and develop fresh content
in form of short videos, podcasts, Instagram and Facebook stories etc. it is important to create
interactive and relatable content as it gives people chance to express their opinions.
5. Compliance of Privacy and Data Sharing Rules: Data privacy rules are the regulatory factor to
be considered while developing content and setting up cookies. It is important to be compliant
with the laws covering target customers. It is important to be mindful about sharing settings in
the website. As far as possible, the website should be transparent about data sharing and data
privacy policies.
6. Developing Content/Website Suitable for Mobile Devices: Smartphones and tablets are being
used more than ever for browsing and shopping. Thus, it has become increasingly important for
businesses to follow mobile first approach and make sure that the content is mobile compatible.
For example; large images and videos may take longer to load for mobile users. Thus, challenge
is to test all the features on multiple devices and ensure wonderful customer experience across
all the devices.
7. Establishing an Omnichannel Marketing Strategy: Another challenge while developing a
digital marketing strategy is develop an omnichannel marketing strategy that focuses on all the
digital marketing platforms. It is also important to identify the platforms where clients are most
active.
8. Maintaining Brand image: Because of the increased competition, it is very important as wellas
challenging for the businesses to maintain connect with the customers and create unique brand
presence. It is important to identify and highlight the unique selling proposition (USP) of the
brand. Maintaining customer connect, providing good value proposition to the customers are
few ways to maintain brand image
9. Staying Current with Googles Algorithms: Google is the most dominant search engine
and it is a big challenge to identify key features and algorithms released by the search engine.
Every business will have to devise strategy for Search engine optimization and search engine
marketing
 Introduction to Digital Marketing || 1.13

3) Design 8& deciding the budget.

4) Content writing,
5) Coding, designing of blueprint & layout of a website,
6) Testing, Review and Launch,
7) Maintenance.
The first stage is the stage of discovering and researching, determines how the subsequent steps will
look like. 'The purpose of website and the goal must be clear at this time. It is also important to identify
target audience at this stage. Second stage is planning about how website will look like to the consumer.
t also involves identifying strategies to catch the attention of the potential consumer. After planning, the
next step is website design. It refers to the user experience aspects of website development rather than
software development. Earlier web design used to focus on designing websites for the desktop browsers,
but since the growing usage of mobile phones by customers for shopping, web designers focus on design
for mobile and tablet browsers. Website should be designed in such a way that it is user friendly, based
on likes and preferences of user group and aesthetically pleasing. Next step is Content writing. Content
should be written in a way that it is able to improve search engine optimisation of the website. Specific
product related terms and the terms that user might use while searching for a product should be used.
Next step is Coding which is the actual step of website development and it is all about converting planningg
into action. After the development of website, it is tested to identify any broken link or any other error.
Finally, since website is a service, it has to be continuously maintained and upd as per the changing
needs. The process of website planning and development has been discussed in detail in the forthcoming
chapter

1.7 Challenges for Digital Marketing

With increase in internet penetration and access of devices in India, the scope of digital marketing is
growing at a fast rate in India. Thus, it is increasingly becoming valuable channel of marketing for the
business firms. There has been 3.9% growth in total digital ad spend, 7.3% growth in digital search ad
spend, 5.49% change in social media ad spend, 6.4% change in digital video ad spend and 0.7% change in
digital banner ad spend and -8.9% change in digital classified ad spend in year-on-year basis.
People are increasingly using internet for purchasing a product or a service. According to the latest
report (January, 2021), 79.3% of internet users (aged 16-64) searched online for a product or service to
buy. 95.3% have visited an online retail site or store. 72.2% used a shopping app on a mobile phone or
on a tablet. 76.% purchased a product online and 57.3% purchased a product online via a mobile phone.
However, digital marketing comes with many challenges also. It is very dificult to understand
consumer and develop right digital marketing strategy. Limited internet access in some areas and data
privacy issues are also some of the challenges that digital marketers face. The challenges and opportunities
are discussed as follows.

Challnges of Digital Marketing

1. Understanding Customers: One of the most important things in digital marketing is
learning about the customers so that the strategy can be designed accordingly, content can be
1.12 || Digital Marketing

5. Better brand management and building brand equity: Digital marketing is a great
opportunity to build better brand for the business. Because of better connectivity with the
audience, the company is able to resolve their conflicts/issues better and faster. It also enables
to track opinion and criticism in real time and address them faster. In case of absence fro
digital presence, a company may not even know about the opinion about the customer let alone
address it. Better brand management helps to build brand equity which in turn helps to face
competition more effectively.
6. Easy to track and monitor digital campaigns: Digital marketing makes it easier to track
digital campaigns and their impact on the sales. Better tracking and monitoring leads to timely
corrective measures and improvement in digital campaign in real time.
7. Respond to the changing trends in real time: Digital marketing allows to capture changing
trends in the market and adapt to them quickly
8. To face competition: By building better brand equity, a firm can face competition in a better
manner. By being present across various digital channels, a company can develop brand
recognition. Brand recognition in turn increases the chances of being selected by the customer
over its competitors.
9. Develop credibility and trust: Digital marketing creates brand awareness and helps to build
trust in the customers. It helps to form a loyal customer base and develop recognition within the
industry as well. Publicity through influencers and word of mouth by customers increases sales
which further help in developing credibility and loyalty. A company can leverage recognition
and credibility to increase comparative advantage.
10. Greatervisibility and recognition: Digital marketing helps to increase visibility and recognition
of an organization as Internet has global reach. In case of traditional marketing, the brand used
to become restricted to some geographical areas or market. With digital marketing, the product
is seen by a larger audience in comparison to brick-and-mortar store. It creates greater product
and service awareness. Being aware is directly related to brand recognition which can be further
increased by adopting diverse digital marketing techniques as well as being present in different
digital marketing channels. Stronger brand recognition helps in converting potential sales into
sales and maximizing profits.

1.6 Scope of Digital Marketing

Digital marketing has wide scope mainly because more and more consumers are using smartphones
and researching products online before buying. Thus, businesses across the globe are employing various
tools of digital marketing to generate significant return on investment (ROI). Digital marketing includes
following aspects:

Website Planning and Development

Seven main steps of web development are:
1) Information Gathering/ Prerequisites,
2) Planning (Defining purpose and goals of website),
 Introduction to Digital Marketing || 1.11

1.5 Importance of Digital Marketing

In present scenario, digital marketing is extremely relevant and is of paramount importance to any
business. It not only gives direction to the business but also help in adopting/changing strategies based
on changing environment and changing customer needs. Some of the benefits of digital marketingg are
as follows:
1. Gives direction to the company: Digital marketing helps to get strategic goal to the company
as the company have better knowledge about the customers, their likes, preferences etc. Using
data analytics, a company can set targets and monitor those targets. They can have a clear idea
about what they want to achieve in terms of new customers and market share.
2. Better knowledge about the target customer and market share and improved customer
relationship: A company is more likely to overestimate or underestimate demand for their
products or services if they are not analysing, examining their customers online. Factors
driving online sales are also very different from traditional marketplace. Another reason why
digital marketing is a must for most modern brands is that it allows companies to foster better
customer relationships. Digital marketing facilitates two-way communication in contrast to
most traditional marketing that provides one-way communication with the consumer. Two-
way communication enables effective addressing of the customers' issues and concerns. A quick
response fosters better customer relations and less escalation of the issues. Digital marketing
facilitates quality consumer engagement. Social media also works as a wonderful tactic to not
only improve customer relationships but also the sales. It helps the brands to better understand
customers' needs, likes and design their product accordingly. Companies can engage with the
customers through their official website, social media accounts, blogs etc.
3. To reach more customers: As per the researching new products is concerned, most customers
prefer digital mode. Customers often use search engine to find out information that helps them
in taking informed decision about purchases. People often research about the product and
brands they want to buy and thus it is very important for companies to be visible during digital
searches. As more and more customers are using mobile phones today, it is very important that
companies try to reach to them using digital media.
In online advertisement, specific interest groups or individuals can be targeted that help to
boost up the sales. In comparison to traditional marketing, digital marketing offers more
precise targeting of audience. This information can be used to persuade potential customers by
designing digital marketing campaign Thus, it makes it easier to reach right people.
4. Reduces cost: Every organization tries to reduce their marketing budget without any significant
impact on the sales. One of the biggest advantages of digital marketing is that it is not only
affordable but also extremely effective. Marketing through email, social media platforms
like facebook, Instagram, content marketing can be done even at fraction of the price of
traditional media. There is no printing or postage cost. By allocating the funds to digital media,
organization can save their funds which can be allocated to other important aspects of business.
Since advertisement and information needs to be updated, digital marketing reduces cost as
web page can be updated any point of time without any additional cost.
 E-commerce market in India is growing significantly in terms of size. 548.6 million people purchased
a consumer good via the internet in the month of January. There was 38.59% annual growth in the total
value of the consumer goods E-commerce market. Data on sources of brand recovery discovers that
32.8% of the internet users discovers brand via search engines and 30.2% discovers a brand through ads
on social media.
Realizing the importance of digital media, digital advertising market is also growing and the
companies are increasing the spend on digital ads. There has been 3.9% growth in total digital ad spend,
7.3% growth in digital search ad spend, 5.4% change in social media ad spend, 6.4% change in digital
video ad spend and 0.7%6 change in digital banner ad spend and -8.9% change in digital classified ad
spend in year-on-year basis.

JAN DIGITAL ADVERTISING MARKET: VALUE GROWWTH

2021EALONEA CHAGE THE N BETWEN
VALE O HE
DIOTALADMERISNG 020 MAKET B ADFOBM 2019 AND

EARONYE wGE IN
oAL DIOITAL AD SPEND DIGHTAL SEAICH AD SPEND SOCAL MEDIA AD SPEND

+3.9% +7.3% +5.4%

LARONTTAOANG N

(O

+0. 7% 6.4% 8.9%

iaHootsuite
Source: DataReportal (2021), "Digital 2021 Global Digital Overview, retrieved from
https://datareportal.com/reports/digital-2021-global-digital-overview
Figure 1.2

1.4 Growth of Digital Marketing in Indio

Dver the years, digital marketing has seen tremendous growth owing to technological advancements,
ntroduction of supportive policies, digital India campaign, development in data analytics. The digital
nedia industry is expected to grow at a CAGR of 27.42% to cross 50,000 crore and have an industry
ize of R58,550 crore by the end of 2025. The digital advertising industry has seen a growth at 13,683
rore by the end of 2019, up at a rate of 26% as compared to 2018 which was at 10,859 crore. Advertising
pends on Digital Media is led by Social Media with the highest share of 28%, contributing 3,835 crore
o the Indian digital advertising pie. This is followed by spends on Paid Search (23%), Online Video
229%) and Display Media (21%). Spends on Mobile contributes 47% (T6,429 Crore) to the digital media
d spends share. This has grown by 26% over 2018. Monthly mobile internet reach has grown by 49%,
lelivering a monthly reach of 64% in total audience. (Digital advertising in India, 2020)
3 Digital Marketing Penetration in India
With population reaching 1.39 billion, India is considered the
a

ountry in the world. India's population increased by 13 milliontwenty-eighth

(+1.0%)
most
between
densely populated
penetration has also increased many times. Internet penetrationJanuary
anuary 2021. Internet 2020 and
5.0% in in India stood at
January 2021. There were 624.0 million internet users in India in
aternet users in India increased by 47 million (+8.2%) between 2020 January 2021. The number of
and 2021.
With growing population and growing internet penetration, Indias
row rapidly in the coming digital market is anticipated to
years. With growth in e commerce, the scope of
ncreasing. People are increasingly using internet not just for the entertainmentdigital marketing
but for
is also

oods and services as well. (As per the latest report by datareportal.com, 79.3%) purpose, buying
Increase in mobile connections has also increased the
scope of digital marketing. There were 1.10
billion mobile connections in India in January 2021. The number of mobile connections in India increased
y 23 million (+2.1%) between January 2020 and January 2021. The number of mobile
ndia in January 2021 was equivalent to 79.0% of the total population. 96.3% of the connections of
in
percentage
nternet users (age 16-64) own a smart phone and 56.4% of the percentage of the internet users the
54) own a laptop. (age 16-
There were 448.0 million social media
India in January 2021. The number of social media
users in
usersin India increased by 78 million
(+21%) between 2020 and 2021. The number of social media users
in India was equivalent to 32.3% of the total population in January 2021.
People are increasingly using internet for purchasing a product or a service. According to the latest
report (January, 2021), 79.3% of internet users (aged 16-64) searched online for a product or service to
buy. 95.3% have visited an online retail site or store. 72.2% used a shopping app on a mobile phone or
on a tablet. 76%purchased a product online and 57.3% purchased a product online via a mobile phone.
72.9% of the
population between age group 16-24 years purchased a product online in the month of
January, 2021, among 25-34 years of age, 78.5% of the population purchased a product in the month of
January, 2021. 82.5% of population in the age group of 35-44 years purchases a product online in the
month of January, 2021.

JAN ECOMMERCE PURCHASES BY AGE GROUP

2021 PRCNIAGE OF E T USERS NCH AOE GAoUP AT MADEAN ONINE NROASE IN THE PAST MONTH WA ANY DEVICE

LCHASEDA RODUT PURCHASED A PRODUCT

ONINE N THE PAST ONUNE IN THE PAST ONNE IN THE PAST E DA00
oNi - 4 TEARSO MONIH: 2534 VEAR5O9 MONTH 35-44 YEARSOLb MONTH 45-$4 YEARSOLD MONTH: 55-64 YEARS OLD

72.9% 78.5% 82.5% 77.7% 76.8%

ioHootsuite
Source: https://datareportal.com/reports/digital-2021-india
Figure 1.1
1.8||Digital Marketing
Internet bubble bursts
2000 .SixDegrees.com shutdown
Smaller search engines wiped out.
2001 F i r s t Mobile Marketing campaign (Universal Music)

2002 Launch of Linkedlin

2003 Wordpress released

Launch of Myspace

2004 Gmail launches

Google goes public
Facebook goes live

2005 Launch of YouTube, Google Analytics, SEO

Microsoft launches MS Live search

2006
Twitter launches
Amazon's e-commerce sales crosses $10 billion
Split testing in marketing

2007
Launch of Tumblr
Web streaming service Hulu founded
iPhone launches
.China overtakes US in number of Intemet-users.
2008
Spotify launches
Groupon goes live
Google launches real-time search engine results/
2009
Google's Ailiate Netwok shutdown.
Google Buzz launches
2010 Whatsapp launches
Google Buzz shutdown
2011 Launch of Googlet and Google Panda
.Web use overtakes figures for TV viewership among youth
Social Media Budgets up 64%
2012 Google knowledge graph launched

2013 Yahool acquires Tumbr

Mobile exceeds PC internet image
2014 Facebook Messenger App. tailored ads on Linkedin, iwatch, and Facebook's
look back launched.
Facebook acquires whatsapp
Snapchat launches 'Discover feature
2015
The rise of predictive analysis, wearable tech and content marketing:
Facebook launches 'Instant Articles.

2016 Snapchat and Spotify launch ads.

2017 instagramshopping introduced.

2020 Facebook introduced Facebook shops.
igital Marketing (Definitions) and Eloborations
Digital marketing is aform of direct marketing whichlinks consumers with sellrs electronically using
nteractive technologies like emails, websites, oniline forums and newsgroups, interactive television, mobile
ommunications etc. (Kotler and Armstrong, 2009)
It facilitates many-to-many communications due to its high level of connectivity and is usually executed
to promote products or services in a timely, relevant, personal and cost-efective manner (Bains, 2011)
Digital marketing as a concept highlights a set of profile processes that embrace all the digital
channels available to promote a product or service, or to build a digital brand. (Kotler, 2013)
Digital marketing inchudes the use of the internet and related digital technologies to achieve
marketing goals (Chaey, 2003)

Evolution of Advertising

21st Century
1000 years ago 18th-19th Century Fragmented
Barter System Seller's Marketplace New Age Marketing

400-500 years ago 20th Century Recent Years

Traditional Marketplace Conventional Man Innovative
Media Marketing
Internet-enabled
Business Models

Evolution of Digital Marketing

January 1st, The internet comes into existence.

L7983

1990 Term 'Digital Marketing' first used launch of 'Archie'-irst search engine.

1993 .First clickable web-ad banner.

1994
Launch of yahoo!
First e-commerce transaction over
net market.
1996 Launch of smaller search engines like LookSmart and Alexa.

1997 Launch of First Social Media website: SixDegrees.com

Birth of Google
1998 Microsoft launches MSN
.Yahoo! launches Yahool web search
1.6 || Digital Marketing

have an edge because they will be able to combine a quality product/service with a mission imbued
with positive values. Over the time marketing has evolved according to the changing environment.
Technological advances in the field of internet, computers and mobile phones have led to the evolution
and growth of digital marketing
The term Digital Marketing was first used in the 1990s. Digital age started with Web 1.0 platform.
The platform enabled the user to search for information on web but they were not able to share anything
The marketers were not much interested in digital marketing around this time as they feared that it will
not be successful. Limited deployment of internet was also a roadblock in advent of digital marketing.
First clickable banner was on web in 1993, which encouraged other companies like HotWired
to invest in banner ads for the advertisement. This marked the starting of transition from traditional
marketing strategies to digital marketing strategies. In the following year, more digital technologies
entered the ield of marketing.
The year 1998 saw launch of various search engines. Google was launched, Microsoft launched the
MSN search engine, Yahoo web search 2000 saw the internet bubble burst leading to the exit of smaller
firms from the business.
In the year 2006, there was tremendous growth in search engine traffic leading to very steep growth
in the field of digital marketing. Further, Web 2.0 increased user participation and helped them to
connect and interact with other users on the internet This further resulted in a sharp surge in volume of
information flow and channels for the users to connect.
Soon, social networking sites began to emerge. MySpace was the first social networking site to arrive,
soon followed by Facebook. The demand and trafic of social media platforms attracted business houses
to advertise their products, build their brands on the social networking paltforms.
Another significant development that gave new heights to the digital marketing industry was
the advent of cookie technology. It enabled the companies to track their customers, identify their
consumption platforms, browsing habits, preferences etc. The first cookie was designed to record user-
habits. The use of the cookie has changed over the years, and cookies today are coded to offer marketers
a variety of ways to collect literal user data.
The digital marketing industry is forever evolving. It is very important for a digital marketing
professional to keep himself updated with the latest trends and technology. Learn newer search engine
algorithms so that they can understand their customers and their needs better and increase ROI for their
company.

The future is dhigital

The highest share of ad revenue was generated by the Indian television ad market, valued at over 250
billion rupees in fiscal year 2018, followed by the print market. However, the projections for each of these
segments show a clear pattern where the digital ad market will rapidly overtake print as well as television
revenues by fiscal year 2024. According to these projections, the digital ad revenue in the country
will be worth almost 540 billion rupees by fiscal year 2024, while the television and print ad revenues
were projected to reach about 455 billion rupees and 276 billion rupees respectively. These numbers
clearly show that India is heading towards a digital advertising future. (Statista Research Department,
Mar 19, 2021)
 Introduction to Digital Marketing || 1.5

Digital India Campaign in Promotion of E-Commerce and thus Digital Marketing

Digital India is a campaign launched by the Government of India in order to ensure the Government's
services are made available to citizens electronically by improved online infrastructure and by increasing
Internet connectivity or making the country digitally empowered in the field of technology. Faceless,
Paperless, Cashless" is one of professed role of Digital India. Promotion of digital payments has been
accorded highest priority by the Government of India to bring each and every segment of our country
under the formal fold of digital payment services. The Vision is to provide facility of seamless digital
payment to all citizens of India in a convenient, easy, affordable, quick and secured manner. MeitY is
working on various strategies, ideation with multiple stakeholders including Banks, Central Ministries
Departments and States, to create an ecosystem to enable digital payments across the country. The
Ministry of Communications has launched the National Broadband Mission that will facilitate universal
and equitable access to broadband services across the country, especially in rural and remote areas.
Ministry of Electronics & Information Technology (MeitY) is working on strengthening of Digital
Payment infrastructure and creating awareness through promotions of digital payments with all the
stakeholders to achieve Government's vision of making citizens of this country digitally empowered.
Citizens have been provided multiple options to make digital transactions. A dedicated 'Digidhan
Mission' has been setup in MeitY for building strategies and approaches in collaboration with all
stakeholders to promote digital payments and create awareness.
Improved digital payments means increased e commerce and increased need for digital marketing.
(Meity, 2021
Strengthening of digital payments and infrastructure along with increased access of internet and
electronic devices has increased the scope for e-commerce and the need and benefits of digital marketing

1.2 What is Marketing and Digital Marketing?

Marketing is the process where customers are informed about the utility and value of a good or a service
for the purpose of selling. It is an organisational function that is very beneficial to a firm as it enhances
customer relationship also. It creates and communicates the value to the customer. This department
analyses the market, identify the market segmentation and understand consumer behaviour. From
a point of view of society, marketing is a connect between society's requirements and the goods and
services produced by the businesses. Over the time, the role of marketing function has evolved from
just informing about the value of product to understanding the customer's needs and preferences and
creating the product or service accordingly. Marketing has become more customised than ever and
targets and manages customer individually and not in the group.
Philip Kotler in the book Marketing 3.0: From Products to Customers to the Human Spirit created
a term Marketing 3.0 to highlight the fact that marketing changes and evolves like everything else in
business and technology. According to Philip Kotler, Marketing 3.0 is a marketing that focuses on the
customer as a human being in its entirety, with material, emotional and spiritual needs, a marketing
capable of satisfying humanisms noblest instances. Those companies that will adopt marketing 3.0 will

4.(Retrieved from https://www.meitygov.in/digidhan)

1.4 || Digital Marketing

improved communication with the customers, internet has also facilitated tracking of the activities and
identifying which marketing strategy is working out and which is not. This has helped businesses to
understand their customers better and thus market to them better. Availability of low-cost smart phones,
laptops and desktop easy internet access has further led to massive growth of e commerce and digital
marketing in India.
Today, digital marketing plays a significant role in the success of an organization as internet has
changed the way people shop and thus it becomes extremely important for businesses to change the
way they market their products. Digital marketing has also provided a levelled playing field for small
businesses who can compete with the large firms having deep pockets for marketing and advertising.
As discussed earlier, increasing internet penetration rate along with expansion of e-commerce has
led to growth of digital marketing all over the world, including India.
Over the time, there has been huge increase in internet users in India and this number is increasing
further. It is estimated that the number of internet users in India will reach upto 1 billion by 2025
Internet penetration rate in India (ratio of active internet users and country's total population) has
also gone up to nearly around 50 percent in 2020, from just about four percent in 2007. Although these
figures seem relatively low, it meant that around half of the population of 1.37 billion people had access
to internet that year. This also ranked the country second in the world in terms of active internet users.
(Statista, Feb 2021)
Not just India, all across the world, businesses are trying to leverage on this changing contour of
increased internet penetration. Internet is being increasingly used to reach new customers and maintain
existing customers. With exponential growth in the access of internet, e commerce industry has also
experienced significant growth. The Indian E-commerce market is expected to grow to US 200 billion
by 2026 from USS 38.5 billion as of 2017. (1BEE, January, 2021)*
Increasing growth in the e-commerce industry is attributed to a number of reasons. Digitizing the
economy and providing cheap internet to the people are a few of many reasons that boosted the growth
of digital sales in India. In 2018, the e-commerce sales across India were estimated to increase by 25
percent. The growth rate, however, was predicted to observe a slight dip in 2022. Consequently, the
revenue-generating potential has also increased. The average retail e-commerce revenue collected per
user in India in 2018 was more than 50 U.S dollars. It was estimated to cross 75 US dollars by 2024.
The digital advertising industry across India had a market size of around 199 billion Indian rupees
in the financial year 2020, up from just 47 billion Indian rupees in financial year 2015. This was projected
to go up to around 539 billion rupees by financial year 2024, indicating a big growth in the industry
Segment. (Statista)

1. (As per Atlas VPN Estimations report retrieved from https://atlasvpn.com/blog/india-estimated-to-reach-1-billion-

internet-users-by-2025)
2. (Retrieved from https://www.statista.com/statistics/792074/india-internet-penetration-rate/)
3. (Retrieved from https://www.ibef.org/industry/ecommerce.aspx#:-:text=Indian%20E%2Dcommerce%20industry%20
has,in %20the%20world%20by%202034.&text=E%2Dretail%20market%20is%20expected,%24%2025.75%20billion)-
%20in%20FY20.)
 Introduction to Digital Marketing

Learning Outcomes
At the end of this chapter, students will be able to:
understand the meaningofdigital marketing
recognize the factors that led to growth of digital marketing
state the importance ofdigital marketing
identify the scope of digital marketing
diferentiate between traditional marketing and digital marketing

1.1 Introduction
Internet and Communication technology is vastly changing the way we live. It has made the whole
world more accessible and connected than ever. Internet has also changed the way businesses are done
and opened up various opportunities in the field of product development, service delivery, customer
connect and most importantly marketing. Research also indicates that most purchasers research online
before making a finai purchase. The internet has allowed businesses to sell without the risk of setting
up a physical shop. They can set up their own website with negligible cost and get connected to their
customers. It has also become easier for businesses to connect with their customers, connect with
potential customers, understand the market wave and redesign their products and services accordingly
Social media has provided another way to reach and connect with the customers. Along with the