MBA IV SEMESTER

MODULE-II
DIGITAL MARKETING RESEARCH
Dr.M.Kethan

Assistant Professor & IQAC coordinator

Koshys Institute of Management Studies

Bengaluru, Karnataka.

Dr.M.KETHAN .Asst.Professor Dept Of MBA

SEGMENTATION STRATEGIES FOR DIGITAL MARKETING
Personalization is the ultimate goal of tailored communications and is far more possible than it was just
10 years ago. It is, however, still vitally important to understand segmentations well. Consumers will
always have similarities in their behaviours, demographics, buying patterns and other factors that enable
you to group them into segments. This enables smarter, more appropriate targeting and messaging within
your marketing communications.

Audience profiling is the process of defining exactly who your target customer is by unifying and
analyzing consumer buying behaviors across multiple platforms and touchpoints.
MARKETING STRATEGIES AND PLANS
In every business either on small or large scale marketing forms a major platform of operations. Marketing
is the base of successful business and it is due to marketing that a business venture flourishes touching the
heights of glory.

Marketing and other expert professional have needed an aggressive effort for promoting the product. There
are three steps that are required to promote a product successfully. These steps are segmentation, targeting
and positioning also known as STP Process.
Market Segmentation
Market Segmentation' is one of the most important pillars of marketing strategy. Segmenting can
be define as ―dividing the whole market into different smaller groups of buyers with distinct
needs, characteristics, or behavior that might require separate products, services
Market Targeting
After dividing the market into different segments next step is to choose one or more segment to
enter in the market. For this purpose marketer analyze the segment weather it is beneficial for
long run or not, this evaluation and selecting of segment is called targeting. Simple definition of
segmenting is ―process of evaluating each market segment‗s attractiveness and selecting on or
more segments to enter‖

Market Positioning
Once the market is divided into smaller and more manageable categories, in the next step
companies carve out a position within each market segment. Positioning defines as ―the process
by which marketers try to create or build an image (identity) of their products or services in the
mind of their targeted segment
PULLING TOGETHER THE FIVE FORMS OF SEGMENTATION FOR DIGITAL MARKETING -
PERSONAS
By pulling together the above five forms of segmentation an organisation can create
personas, as per the example shown below. These are effectively descriptions of your
segments. Most businesses will create between five and ten of these, as too few results in
large groups that are too generic and too many can result in segments that are too small or
overcomplicate the targeting approach.
Name of the persona
Job title
 Key information about their company (size, type, etc.)
 Details about their role
Demographics
 Age
 Gender
 Salary / household income
 Location: urban / suburban / rural
 Education
 Family
Goals and challenges
 Primary goal
 Secondary goal
 How you help achieve these goals
 Primary challenge
 Secondary challenge
 How you help solve these problems
Values / fears
 Primary values
 Common objections during sales process
How Digital Marketing is Redefining Customer Segmentation

The High Actual Customer Segmentation is a segment

that wants to buy, has made a decision to buy, but hasn’t
decided which brand to buy from yet. Customized and
personal digital marketing is the perfect solution for this
customer segment.
The Potential Customer Segmentation is a segment
that has thought about buying, but hasn’t had the full
reason or desire to yet. Customized and personal digital
marketing is a great tool for this segment because some
sort of additional value proposition like a coupon or one-
time discount can be the deciding factor that turns the
potential customer into an actual customer.
With the evolution of online communication through internet, customers now see online advertisements of
various brands. It is fast catching up with the buying behavior of consumers and is a major source of
publicity for niche segments and also for established brands. This is the new way of digital revolution and
businesses worldwide have realized their worth.
Examples − Online catalogues, Websites, or Search engines. When customers have sufficient information,
they will need to compare with the choices of products or services.
online Customer Behavior Process
According to the above figure, in the search stage, they might look for the product reviews or customer
comments. They will find out which brand or company offers them the best fit to their expectation.
During this stage, well-organized web site structure and attractive design are important things to
persuade consumers to be interested in buying product or service.
Stage 1
The most useful characteristic of internet is that it supports the pre-purchase stage as it helps customers
compare different options.
Stage 2
During the purchasing stage, product assortment, sale services and information quality seem to be the
most important point to help consumers decide what product they should select, or what seller they
should buy from.
Stage 3
Post-purchase behavior will become more important after their online purchase. Consumers sometimes
have a difficulty or concern about the product, or they might want to change or return the product that
they have bought. Thus, return and exchange services become more important at this stage.
Factors of Online Customer Behavior
The first elements to identify are factors that motivate customers to buy products or services online. They
are divided into two categories − external factors and internal factors.
•The External Factors are the ones beyond the control of the customers. They can divide into five sectors
namely demographic, socio-economic, technology and public policy; culture; sub- culture; reference
groups; and marketing.
•Internal Factors are the personal traits or behaviors which include attitudes, learning, perception,
motivation, self image.
•The Functional Motives is related to the consumer needs and include things like time, convenience of
shopping online, price, the environment of shopping place, selection of products etc.
•The Non-Functional Motives related to the culture or social values like the brand of the store or product.
Filtering Elements
Customers use these three factors to filter their buying choices and decide on the final selection of
stores they are willing to purchase from. They use the knowledge to filter their purchase options by
three factors
•Security
•Privacy
•Trust and Trustworthiness
PILLARS OF DIRECT MARKETING
 1.The Audience
Every DM initiative must be relevant to the audience. Profiling your house file is a great tool to better
understand your audience, and in our opinion one the first steps you should take when undertaking DM.
2. The Offer
The offer is essentially the USP of your DM message.
What makes this message relevant to the audience? What makes this letter, email, phone call, worth
considering?
It is best to make the offer relevant and timely. Personalize the offer to the audience being communicated to,
and include a cut-off date to your offers to encourage a timely response. We suggest offering added value to
your DM communication not necessarily discounts.
3. Testing
Test, test, test, and when you’re done test some more!
Different segments of your audience may respond in different ways to different messages. To minimize the
risk and to get the best out of your campaign it is best to test. That’s a rhyme just in time.
 Measurement
The ability to measure the results of all your great testing and the overall rollout of your DM initiatives is one of
Direct Marketing’s best capabilities. Direct Marketers love to measure- we live for the results.
To ensure effective measurement you will need to have some evaluation processes planned before you begin. Code
your mail packs, include tracking pixels in your eDM’s, and provide prompts for your telemarketers to capture
relevant information.
A post campaign analysis will give you valuable insights you can apply to your next campaign.

Ladder of Loyalty

This is again, about knowing your audience and communicating to them in a way that

directly contributes towards moving them up the ladder- to advocate status. Advocates are
what all DM practitioners should be aiming for; they are the proverbial pot of gold at the end
of the DM rainbow
 RFM
Recency Frequency Monetary – this is another great way to segment your customers and really understand their
value to your organisation. When did they last buy/donate, how often do they buy/donate, and how much do they
buy/donate.
These measurements can also be used as selection criteria when targeting your best prospects for any cold
acquisition campaigns.
Lifetime Value
Understand that customers may not always provide you with profits from the first or second sale/ donation. A
customer is worth more than the individual purchase but an accumulation of all the past, present and future
purchases.
The initial cost of acquiring a customer or donor vs. how much they contribute over their ‘lifetime’ with you is
particularly important to consider when running acquisition campaigns.
online Behavioral Tracking
Behavioral tracking means that advertisers gain insights into users’ browsing habits. The data gathered
from the web helps advertisers create netizens’ profiles, revealing their interests, views, etc.

The main purpose of adopting this technique is to display online ads strategically. Instead of going
after random people that might have no interest in a specific service, advertisers go for a more targeted
approach. Thus, the digital world enables companies to find clients that might be genuinely interested
in what they have to offer.
How behavioral tracking improves the web
Ad campaigns based on information collected from behavioral tracking can be beneficial for businesses
and consumers. Here are the advantages for the advertisers and companies:
•Higher conversion rates. With access to consumers’ browsing patterns, an advertiser gets to know
about their interests and needs. That helps to target them with ads that are more likely to trigger a
response, possibly even leading to a purchase.
•Improved ad click-through. Generic banners often fail to get the desired number of clicks, as they
aren’t fine-tuned to address specific customer needs. Personalized ads tailored to address a viewer’s
interests perform much better. After an initial engagement with a product that the viewer highly desires,
he is much more likely to continue on the site seeking more information than with a product that fails to
connect with his desire.
Consumers reap the following rewards:
•New services and products to explore. Having to rummage through irrelevant ads while
surfing can be annoying as well. Personalized ads triggered by your online behavior can indeed
be more useful, especially if they help you find what you are looking for.
•Higher online shopping efficiency. With ads that users find interesting appearing prominently
during browsing, consumers are led to online storefronts through a few simple clicks. Adding
products to the cart and checking out now becomes only a matter of minutes.

Which Categories of User Information Do Data Management Platforms Gather

•Mobile Device Data
• Geographic Location
• Subscription or Registration Entries
• Demographic Information Through Diverse Networks
•
What Types of Consumer Behaviors Do Behavioral Targeting Companies and DMPs Track?
• Frequently Visited Pages
• Webpage Viewing Times
• Clicked Ads and Links
• Personal Web Searches
• Webpage Element Interactions
• Transaction Progress
• Purchase Histories
• Time Gaps Between Visits
BLOG MINING
Blog mining, or the tracking and analyzing of what consumers are saying about your brand on the Web, is a
worthwhile undertaking and can generate insights unlike those found though traditional research methods.
When used in concert with those methods, blog mining can add a valuable component to a firm's overall
research program.
Data mining is the process of understanding data through cleaning raw data, finding
patterns, creating models, and testing those models. It includes statistics, machine learning,
and database systems.
Benefits of data mining
Data mining is most effective when deployed strategically to serve a business goal, answer
business or research questions, or be a part of a solution to a problem. Data mining assists
with making accurate predictions, recognizing patterns and outliers, and often informs
forecasting. Further, data mining helps organizations identify gaps and errors in processes, like
bottlenecks in supply chains or improper data entry.
How data mining works
The first step in data mining is almost always data collection. Today’s organizations can
collect records, logs, website visitors’ data, application data, sales data, and more every day.
Collecting and mapping data is a good first step in understanding the limits of what can be
done with and asked of the data in question.
 CUSTOMER PROFILING
• Data, online analytics and proliferating channels – imperative for a business to understand
its audience and segment its customers in new ways
• Spray and pray approach – messages sent out en-masse, untargeted and non-personalized
• Refined approaches to marketing - enhance customer experience
• Brands - what is right for customers by knowing who they are, their location and
preferences
Customer Profiling (Cont’d)
• Consumers generate more data but also are demanding
better service
• Messages to customers must be relevant
• Customers need to be grouped based on common traits and behaviors
• Segmentation – tailored marketing communications across channels to specific
customers
• Creation of bespoke campaigns
Elements of a customer profile

• Selection of the right KPIs – revenue per customer, email responsiveness, product mix and
purchase channel.
• Creation of single customer views - A single customer view is an aggregated, consistent and
holistic representation of the data known by an organisation about its customers that can be
viewed in one place, such as a single page.
• Ensure data is sufficient and strong.
• Segment customer groups to right-target your customers.
Elements of a customer profile (Cont’d)

• Create a rich picture of these customers on and offline (and your competitors’ customers) so
you can target them. This will ensure that campaign messaging, channels and locations are
relevant.
• Cross-channel campaigns must focus on selected customer segments
• Effectiveness of the campaigns must be measured over time by each customer group.
• Keep track of changes in your competitors’ customers, spatial trends concerning where
your best customers are and where they interact with you
Customer Profiling
Benefits of customer profiling
• Understand your audience and their needs better
• Increase effectiveness of advertising efforts
• Brand can define a clear set of messages and imagery for specific customers to improve
customer experience
• Results of profiling when embedded cross-functionally will enhance interactions between a
company, existing customers and prospects
• Service and product development teams will greatly benefit from the insights
integrating Online and Offline Strategies
people consume and engage with a brand differs online and offline. Both are important for
nurturing consumers and moving them along the journey to conversion. Integrating your online and
offline marketing strategies can help to deliver a consistent brand message, and is more
effective at driving action from consumers than treating both mediums.
Why is it Important to Integrate Online and Offline Marketing?
Customers want to benefit from the advantages of both online and offline services, consuming
information across all channels whenever and wherever they decide. They want the ease of buying
through digital platforms and the personal offering that comes with buying products in-store. 

While it's important to ensure your offline and online marketing strategies cater to the differing wants
and needs of your audience at each touchpoint, integrating your offline and online activity provides a
consistent message, which will help to build a trusted and cohesive brand.
How to Integrate
Use one to promote the other.
You can promote offline marketing products through online methods, and vice versa. For example, you can
drum up excitement ahead of the release of a big TV ad campaign by sharing teasers and snippets on social
media or creating a countdown on your website.
Tie up your online and offline data.
Joining up your online (analytics) and offline (CRM) data can help you to build an in-depth customer profile
and better understand the customer journey. Once integrated, the data can be used to inform your marketing
strategy
e.g., by bidding more aggressively on high-value customers through paid media campaigns.
Ensure brand consistency.
Synergy across your online and offline branding is crucial for successful integration. If a consumer comes
across a physical marketing campaign such as a leaflet, the digital equivalent should reflect the branding and
language on the leaflet. 
Use social media for offline events.
Use social media to promote and increase interaction at offline events. Consumers can use your social media
account to participate in contests, polls, and share photographs during an event, increasing engagement,
growing your online presence, and making your audience feel like it's part of your brand.
Encourage your offline customers to go online.
In the same way you should encourage your online customers to engage more with offline events, you should
direct your offline customers to connect with your brand online. From having your social media handles and
website URL on receipts and banners, to offering in-store discounts to users who have shared your posts or
“checked in” online, getting