Airo International Research Journal August, 2017

Volume XII, ISSN: 2320-3714

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Airo International Research Journal August, 2017
Volume XII, ISSN: 2320-3714

DIGITAL MARKETING AND ITS CHALLENGES

Sanmathi Anbumani
Dr. Ch. Bala Nageswara Rao, Dr. J. Gomathi Sankar,
Saveetha School of Management, Saveetha University, Chennai, Tamil Nadu, India
ABSTRACT

Digital marketing is a paid form of promotion of products and services through an identified
sponsor using a digital medium. Digital marketing is that element of promotion mix, which is
often considered prominent in the overall marketing matrix. Its high visibility and pervasiveness
has made it an important commercial medium in Indian society. It is a means of influencing the
consumer to buy products or services through visual or audio persuasion. A product or service is
primarily advertised to create awareness of its utility in the minds of potential buyers. As a result
of globalization and the consequent changes in consumer buying patterns, the advertising
industry has undergone significant transformation in past few years. The current article
highlights the scenario of digital marketing challenges and ways to overcome it.

KEYWORDS: Digital Marketing, Consumer, Social Media

INTRODUCTION

The fastest growing media outlet for

advertising is the Internet. Compared to
rest with the Internet‟s ability to: 1)
spending in other media, the rate of
narrowly target an advertising message and
spending for Internet advertising is
2) track user response to the advertiser‟s
experiencing tremendous growth. However,
message. The Internet offers many
total spending for Internet advertising
advertising options with messages delivered
remains relatively small compared to other
through websites or by email.
media. Yet, while Internet advertising is still
a small player, its influence continues to Handheld devices, such as cell phones,
expand every year major marketers shift a Personal Digital Assistants (PDAs) and
larger portion of their promotional budget to other wireless devices, make up the growing
this medium. Two key reasons for this shift mobile device market. Such devices allow

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customers to stay informed, gather Specifically, marketers will study consumer

behavior in an attempt to understand the
many factors that lead to an impact purchase

information and communicate with others decisions. Those who develop digital

without being tied to a physical location. marketing strategies begin by identifying

While the mobile device market is only relevant markets and then analyze the

beginning to become a viable advertising relationship between target consumers and

medium, it may soon offer significant the product/service or brand. Often, in an

opportunity for marketers to reach attempt to gain insights, marketers employ

customers at anytime and any place. techniques borrowed from other disciplines.

Also, with geographic positioning features India has indeed joined the digital marketing

included in newer mobile devices, the league. There is a vast middle class market

medium has the potential to provide numbering as much as 250 million today.

marketers with the ability to target The American business week magazine, said

customers based on their geographic in April, 2008, that there were 8% rich

location. Currently, the most popular Indian having incomes higher than an

advertising delivery method to mobile average American. Even time magazine

devices is through plain text messaging, focused on it in a cover features, “Consumer

however, over the next few years Boom”. If the consumer, exposed to the

multimedia advertisements are expected to advertisement, keeps it at the back of his

become the dominant message format. mind or if in the case of non-durable makes
a trial purchase and is satisfied, it may
Digital marketing plays a significant role in result in putting the brand among the most
today's highly competitive world. – favoured ones in his „evoked set, as stated
Companies, personalities, even voluntary or in the „Howard-Sheth model‟. Thus, there is
religious organizations, use it in some form - a positive perception to advertisements of
such as Event management, Image new brands as well as to remainders
management, Internet marketing, etc. either advertisements of older brands. How the
to promote a product or to promote a point consumer makes use of this advertising
of view. communication provided by the marketer is

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a matter in the purview of consumer social sites like Facebook. Thus the subject
behaviour. Marketing people consider that, of digital marketing is put to research from
advertising is effective promoting the sales different angles is evidenced by the
of a company‟s products and services. literature review. This research study adds
However, the relationship between new insightful inputs to the promotional
advertising and sales is rather indirect. strategies of marketing through digital
sources.
It is desirable that the marketer should also
measure the effectiveness of digital LITERATURE REVIEW
marketing, and in the face of results,
Prof. Mahendra Mohan (2006) of IIM-A
obtained make qualitative changes in his
writes that the ultimate test of effectiveness
marketing programme. The appraisal of
of marketing obviously consists in the
marketing programmes should result in the
degree of achievement of the objectives set
business becoming economically viable.
by an advertiser, in consultation with the
But, the degree of its effectiveness vis-à-vis
advertising agency working on the account.
the amount spent on digital marketing
cannot be measured directly as put rather Ayaz S. Peerbhoy (2010), founder-Director
helplessly by Wanamaker. The potential of MAA advertising Agency, Bombay –
buyers make the buying decisions not only Bangalore describes that, “The concept of
due to the digital marketing they see but also digital marketing as understood in the Indian
due to many other economic and social conditions can be explained still further in
factors. The effectiveness of digital terms of its effectiveness on and receptivity
marketing is a function of several variables. by the consumers and the markets if proper
The problem is that the organization cannot Scientific Research methods and techniques
measure the impact of one variable alone. are applied. To advertising points, the
author research is a part of the marketing
Since digital marketing is widely accepted
activities “built-in-progress”.
as a significant marketing strategy, it is
necessary to design digital advertisements in An exhaustive study on digital marketing
new forms and formats to make them more and publicity has been done by Sexena, S.S
effective and accessible through popular (2013) surveys the prevalent practices and
media like e-mails, advertisements through methods in India and appraises the

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contributions made by advertising and Boyd Harper W. and Kapoor. M.C (2013)
publicity to the business and social cultural mentioned various products that meet the
enlightenment of the public. needs of local market and product research.
Newer methods have an important role to
The definition and fundamentals of digital
play in determining the acceptability and
marketing are discussed at length by Devar
profit potential of certain new products.
and Rustom. S. Towards the end, much
stress is laid on marketing research, Ram Swami, R. (2014) says that “ although
motivation research and management. the fact remains undisputed that advertising
promotes national economy and raises the
A clear understanding on digital marketing,
standard of living, especially in the Indian
market research, advertisement and sales
context, yet the existing criticisms are
force management i.e., recruitment,
against too much of advertising rather than
selection and training of sales staff is given
against the prevailing trends of advertising.
by Roy, P.C (2010).
Bahl. G.C. (2014) says “A deeper
Parikh. J.C. (2013) explored further
understanding of consumer behaviour is the
improvements and changes in the
basis of Advertising. So far as consumer
advertisement, selling and consumer
resistance is concerned it can be overcome
relations necessitated by the introduction of
by Pre-testing and Post-testing the
man-made fibre fabrics. The survey makes
advertising campaign to make it more
some useful recommendations.
effectively”. The author stresses the role of
In, “the changing pattern of India the advertising in a production-oriented

consumption, (A study of change in living economy like India.

standards)”,Quarterly economic review

Patnakar,V.N. (2012) stresses the role of the
Dec.1958, establishes a conceptual
research in promoting not only the
correlation between consumer durables and
advertising of a particular item but also to
consumer goods( and that the rate of risk in
improve in general the practice of
the case of the former being higher than that
advertising.
of the latter).
Lathif, T.A.A, (2014) says, “Efficient
Management is a prerequisite to an

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industrial affluence and marketing is a The digital world is booming and almost
prerequisite to efficient management. every business out there has taken its
Therefore, “Marketing should have priority products/services online to reach out to the
in management decision and major elements masses. According to a report by Experian,
for are production and manufacturing most marketers are now facing the challenge
operations. of making their brand stand out in the
volumes available on the internet. This
Varma, J.K. (2010) says as per consumer
eventually leads to difficulty faced when
preferences, attitudes and habits, stresses the
trying to run a brand awareness campaign or
importance of marketing research to bridge
acquiring new customers.
the gap between the producer and the
consumer. It is emphasized by the author Solution
with some examples.
While it is a fact that at least some of your
Patel, V.P. (2010), says, “Efficient products/services might be similar to what
Advertising pushes the economy of the another business has to offer, there is
industry which in turn purchases the definitely a small aspect that is unique to
economy of the country”. Advertising is a you. Discover the USP of your
link between production and consumption product/service and find ways to convey the
and yet it is integral part of marketing. same. Conduct surveys on your existing
customers and your target audience to better
First of the series on, “from the consumers
understand what they are looking for, and
end” based on the survey conducted by the
identify which of those needs your brand
Indian Institutes of public opinion,
can fulfill.
concludes that the middle class consumers
are deeply dissatisfied with the service and 2. Driving relevant traffic to the website
prices charged for the near necessities of
Continuing on the point above, marketers
inferior quality.
today are consistently facing a challenge
DIGITAL MARKETING when it comes to spreading brand awareness
CHALLENGES AND ITS SOLUTION in the right target market. This also makes it
harder for them to drive the ideal traffic to
1. Not getting lost in the volume
their business websites. Therefore,

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understanding which channel to tap into and online behavior and possible future needs. In
driving relevant audience to your website to this case, companies like Wigzo equip you
turn them into customers is becoming an with machine learning and predictive
ongoing challenge for marketers. analytics tools to enable better persona
creation.
Solution
4. Lead generation using social media
Conduct an audit of your online activity –
what tactics are you opting for to reach out When it comes to the various social
to your audience. Take into consideration channels, most businesses and marketers
the content you‟re producing, the channels don‟t really know how to remain consistent
you‟re presenting it on, the social media at it. Most of them feel that it is all about the
channels that you‟re actively present on and paid campaigns they are supposed to run for
the paid/unpaid campaigns you are possibly brand awareness and lead generation.
running. Although, both of them are a constant
challenge with the ever increasing market
3. Targeting the right audience effectively
competition.

One of the first and foremost thing that an

Solution
effective marketer does, is to identify their
target audience in the market. With the The most effective way to leverage from
number of internet users increasing by the social media is to integrate your marketing
day and their needs changing almost every and sales efforts. Sharing behavioural data
second, targeting the right audience has and interaction levels with leads on social
become one of the biggest challenges for media, can help the sales team define a
marketers. custom, personalized customer journey for
them – which they are more likely to convert
Solution
on.

Look at the general demographics of the

5. Keeping up with the changing trends
market that you want to reach out to.
Identify their needs and create customer The digital market and marketing techniques
personas taking into consideration their have changed drastically over the last few

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years. And it continues to change even today going through various journals e-journals,
to cater to the modern day addressable online repositories, magazines and
market needs. Hence, it is important for publications. The study mainly presents
marketers to stay up-to-date with all these primary data collected from the respondents
changes. selected by a sample survey in the Chennai.

Solution Field Analysis

Consistently engage with your target Field analysis is done by survey method to
audience on platforms that they are most ensure that collected data is factual and
active on. The most effective way of doing doesn‟t differ from the real life situation.
so is to leverage from social listening using
Research Instrument
tools like Hootsuite. They help you
understand what people are saying about The questionnaire is fully structured. Before
you and your product/service, what they finalizing it, a pilot survey was conducted to
expect – giving you the opportunity to pre-test it and the views of the respondents
become a part of their conversation. were considered in finalizing the
questionnaire. The residents were contacted
The Research Methodology
directly by the researcher for collecting the
Data Source relevant data. Proper care has been taken to
maintain the heterogeneity of sample.
Primary data
The Primary data on digital marketing
The present research being descriptive in
collected through the questionnaire was
nature mainly depends upon on primary and
scientifically tabulated and analyzed while
secondary sources of data. Structured
interpreting.
questionnaire method is used to collect from
the consumers using digital media. To study the opinion of the respondents
towards advertisements, a five point Likert‟s
Secondary data - is taken from the
scale (Likert‟s scale is adopted for
materials (relevant documents) provided by
measuring the degree of satisfaction against
various websites, industry reports. All
each statement) comprising strongly
possible existing literature is obtained by

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disagree, disagree, neither disagree nor The sampling method chosen for the study is
agree, agree and strongly agree is adopted to multi-stage sampling, where respondents
study the respondents attitude and were selected from Chennai. (The reason for
perception. A five point verbal scale is using Cluster Sampling Technique is that
adopted to find out the respondents level of apart from providing reliability, it also
satisfaction. A five point efficiency scale is confers economic advantage in the form of
adopted to study the present effectiveness of lowest per unit cost per selected clusters.) A
advertising and respondents expectations on sample of 385 respondents was taken for the
the same. study. The population is taken from the
residents comprising of 18 years and above
Sampling Procedure and sample size
from census calculation of Government of
Tamil Nadu.

The sample selected covers the following areas in Chennai

Ramapuram 40 Adayar 40

Anna Nagar 40 Triplicane 40

Mylapore 40 T Nagar 40

Perungudi 40 Alandur 40

Besant Nagar 40 Sholinganallur 25

Research approach the population covered think and what

influences their decisions.
The choice of qualitative research is based
on our intent to gain a deeper understanding Validity and reliability of the research
of the consumer behaviour and the influence Instrument
of digital marketing on it. The information
Before administering the questionnaire the
collected from the respondents will give us a
instrument was subjected to a validity and
possibility to gain an understanding of what
reliability test. The questionnaire has passed

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the required validity test, results indicating findings are really about what they appear to
.806 or (81%) validity for the 158 variables be about.
covered in the questionnaire. This is also in
Quality of this study was enhanced by
tune with Cronbach‟s Alpha statistical
defining the concepts used for construction
measure which helps in checking the
of frame of reference based on established
relationship between two variables and also
literature. This provided the base for
helps in confirming whether the research
developing the checklist for data collection.

ANALYSIS

Table No. 1

Cross tabulation between age and advertisement observing habits of using

social media N=384

Age

I do not I watch both posts as I concentrate more on I only

use social well as advertisements advertisements than watch Total
media on social media posts posts

Opinion

9 38 8 10 65
18 – 25
13.8% 58.5% 12.3% 15.4% 100.0%
Age
in 3 42 9 28 82
Years 26 – 33
3.7% 51.2% 11.0% 34.1% 100.0%

34 – 41 12 58 15 11 96

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12.5% 60.4% 15.6% 11.5% 100.0%

12 41 3 12 68
41 – 50
17.6% 60.3% 4.4% 17.6% 100.0%

2 15 5 17 39
50 – 57
5.1% 38.5% 12.8% 43.6% 100.0%

3 23 4 4 34
58 years
& above
8.8% 67.6% 11.8% 11.8% 100.0%

41 217 44 82 384
Total
10.7% 56.5% 11.5% 21.4% 100.0%

Source: Primary data (Compiled from the tabulated responses)

From the above table it can be interpreted 96 respondents fall under 34-41 age group
that the age group who prefer social media out of which 58 respondents with 60.4%
out of 384 population 65 respondents come prefer posts as well as for advertisements.
under 18-25 years of age group and their
Only 11.5 % (11) respondents prefer
highest preference i.e., 58.5% (38)
watching posts. 68 respondents comes under
respondents watch both posts as well as
41-50 age group and highest preference
advertisements and 15.4% (10) do not
60.3% with 41 respondents prefer social
watch advertisements and only watch posts.
media for posts as well as for
82 respondents comes under 26-33 age
advertisements. Last three respondents with
group with highest number 42 with 51.2% of
4.4% concentrate more on advertisements
respondents prefer advertisements along
than other programs. 39 respondents comes
with other posts and the least three (3.7%) of
under 50-57 age group and their highest
respondents do not use social media at all.

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preference with 38.5% is also for using 43.6% prefer social media only for other
social media not other posts, but also for posts rather than advertisements.
advertisements and 17 respondents with

Table No. 2

Advertising massages solve the decision making dilemma

Message type/ Rank I II III IV V Total %

143 102 50 27 63 385

Price clarity
37.1% 26.5% 13% 7% 16.4% 100%

175 58 51 30 71 385
Product benefits
45.5% 15.1% 13.2% 7.8% 18.4% 100%

79 102 84 77 43 385
Brand association feelings
20.2% 26.5% 21.8% 20% 11.2% 100%

Brand personality 77 77 101 72 54 381

Used in the ad 20.2% 20.2% 26.5% 18.9% 14.2% 100%

106 66 74 71 67 384
Comparison of the brand with
competitors
27.6% 17.2% 19.3% 18.5% 17.4% 100%

Source: Primary data (Compiled from the tabulated responses)

The above table infer that the type of population 143 (37.1%) of respondents have
message advertisements solve the decision given I rank for price clarity and 102
making dilemma. The above table indicates (26.35%) respondents have given II rank ,
first message is price Clarity. Out of 385 50 (13%) respondents have given III rank,

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63 (16.4%) respondents have given V rank, solve the decision making dilemma through
finally 23 (7%) respondents have given IV advertisements for consumer products.
rank for type of message advertisements
It is drawn that out of 381 population 101
solve the decision making dilemma through
(26.5%) respondents have given third rank,
price clarity.
to the opinion about brand personality used
Out of 385 population (45.5%) respondents in advertisements in solving the decision
have given first rank for product benefits making dilemma in consumer products. 77
advertisements solve the decision making (22.2%) respondents have given equal ranks
dilemma. 58 (15.1%) respondents have (i.e. First & Second), 77 (18.9%)
given for second rank, 51 (13.2%) for third respondents have given fourth rank and 54
rank,30 (7.8%) respondents have given (14.2%) respondents have given fifth rank
fourth rank and 71 (18.4%) respondents for brand personality used in the
have given fifth rank for product benefits advertisements and solve the decision
solve the decision making dilemma through making dilemma in consumer products.
message advertisements.
Finally, out of 384 population 106 (27.6%)
The above table indicates another message respondents have given I rank their opinion
advertisements are brand association feeling about comparison of the brand with
through we can solve the decision-making competition of message advertisements
dilemma in consumer products. First that solve the decision making dilemma in
102 (26.5%) respondents have given the consumer products. Followed by 74 (19.5%)
second rank for brand association, 79 respondents have given III rank, 71 (18.5%)
(20.2%) respondents have given first rank, respondents have given IV rank, 67 (17.4%)
84 (21.8%) respondents have given third respondents given V rank and 66 (24%)
rank, 77 (20%) respondents have given respondents have given II rank for
fourth rank and finally, 43 (11.2%) have comparison of the brand with competitor‟s
given fifth rank for brand association feeling advertisements to solve the decision-making
dilemma in consumer products.

Table No. 3

Preference of digital media advertisements

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Preference

Strongly Neither Like Strongly

Media/ Opinion Like nor strongly Dislike Total
Like Dislike Dislike

172 93 52 37 30 384
E-mails
44.8% 24.2% 13.5% 9.6% 7.8% 100%

Facebook 77 175 88 22 21 383

20.1% 45.7% 23% 5.7% 5.5% 100%

83 127 97 55 19 381
Whatsapp
21.8% 33.3% 25.2% 14.4% 5% 100%

Others(Interactive) 34 120 88 70 58 370

9.2% 32.4% 23.8% 18.2% 15.7% 100%

Source: Primary data (Compiled from the Out of 370 total populations 120 people with
tabulated responses) 32.4%, have liking for other interactive
sources. From their analysis it is said that
From the data given in the above table, we
majority of the population like electronic
can interpret that: Out of 384 populations‟
172 respondents with 44.8% said their
strong like for e-mails and only 30 people
with 7.8% strongly dislike e-mails. Out of
383 total populations 175 people with
media followed by print and hoardings.
45.7%, have a strong preference for
Other interactive sources play least role in
Facebook and only 21 people strongly
influencing the people.
dislike Facebook. 127 people with 33.3%
out of 381 population like advertisement CONCLUSIONS
through Whatsapp. AND RECOMMENDATIONS

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The purpose of the study is to highlight it difficult for companies to define or

digital marketing and its challenges. The identify a single brand image that has a
study seeks to provide the ability to global appeal.
visualize how digital marketing strategies
A standardized digital marketing strategy
are formulated and perceived by consumer
should be more easily produced for products
segments.
in which individuals share common
The study seeks to offer key indicators of consumer behaviours than for products used
effective digital marketing strategies. in culturally specific ways. For instance,
Advertising in the digital media were taken consumer high-tech goods (computers,
into account. For this purpose, mobile phones) may be somewhat similar
advertisements in the digital media has been across cultures whereas food is generally
taken into consideration. considered to be consumed in traditional and
idiosyncratic ways. Beauty-related product
Indian consumers have always been open to
advertisements may be more easily
the idea of trying new products. With the
standardized than more culture-specific
socio-economic changes taking place and
items such as food or automobiles because
the increase in the number of nuclear
they focus on similar needs for beauty
families and well as twin-income families,
among a shared audience.
there is a dramatic increase in household as
well as disposable incomes. To cater to their Advertising firms might share certain
need marketers are introducing new and spokespersons and thus the celebrity will
advanced products, and positioning them to end up promoting more than one brand.
attract target customers. An example of this is the actress
Catherine Zeta-Jones who promoted both
A single brand image is the most important
T-Mobile and Elizabeth Arden. Also, the
reason for standardization. Due to increasing
golf champion Tiger Woods endorsed as
geographic customer mobility (e.g., because
much as three brands; American Express,
of tourism) and media spill over (e.g., global
Rolex and Nike.
broadcasting). This results in the broadening
of the “perception sphere” (ibid). Cultural, The rate of change in the awareness of the
economic, social and other differences make Indian consumer during the last decade has

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been slow despite the proliferation of the 6. The Indian council of Social, science
social media and advertising. As the number Research “ A survey of research in
of brands are increasing in the market, Management volume-2, Vikas Publishing
consumers have become choosier, forcing House New Delhi.
marketers to adopt various strategies to woo
7. Harper “Relevance of Advertising to
target consumers with large investments in
developing nations” , Economic Times of
advertising/publicity, offering discounts and
9th November,2013. pp.23
luring them with freebie schemes. These
have only ended up in giving those short- 8. Swami, „Advertising Expenditures and
term gains in terms of increasing their the Macro Economy: Some New Evidence.‟
turnover and improving their brand equity. International Journal of Advertising, No.1
2014,1-14.
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14. Boyd, Harper W. & Kapoor M.C “

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