Bhatia p fundamentals of digital marketing 2ed 2019

About Pearson Pearson is the world’s learning company, with presence across 70 countries worldwide Our unique insights and world-class expertise comes from a long history of working closely with renowned teachers, authors and thought leaders, as a result of which, we have emerged as the preferred choice for millions of teachers and learners across the world We believe learning opens up opportunities, creates fulfilling careers and hence better lives We hence collaborate with the best of minds to deliver you classleading products, spread across the Higher Education and K12 spectrum Superior learning experience and improved outcomes are at the heart of everything we This product is the result of one such effort Your feedback plays a critical role in the evolution of our products and you can contact us at reachus@pearson.com We look forward to it Fundamentals of Digital Marketing Second Edition Puneet Singh Bhatia Director, Marketing Axtria Inc Gian Dhyaan Kich Karam Na Jaana (Shri Guru Granth Sahib - Page 750) I know of no bigger karma than the knowledge of truth Case Studies Flipkart: Heralding Indian E-commerce Amazon India: The Global Unicorn Google India: From Keyword to Alphabet Facebook India: Expanding the Network Twitter India: Monetizing Communication Times Internet: The Voice of News LinkedIn India: Identity that Matters MakeMyTrip: Profiting from Experiences Info Edge India: The Story of Real Jobs One97 Communications: No Cash, No Corruption! Contents Preface to the Second Edition Preface to the First Edition Acknowledgements About the Author UNIT I BASICS OF DIGITAL MARKETING Chapter Introduction to Digital Marketing Evolution of Digital Marketing From Traditional to Modern Marketing Rise of the Internet: The Dotcom Era Post Dotcom: Creation of Internet Business Models Growth of ‘E’ Concepts: from E-Business to Advanced ECommerce Digital—The Next Wave of Marketing Digital Marketing: An Introduction Emergence of Digital Marketing as a Tool Media Consumption Environment Drivers for New Marketing Digital Marketing Channels: Types and Business Models Digital Marketing Applications and Benefits Internet Marketing: Frameworks Underlying Technology Internet Basics—Internet/Intranet/Extranet/Portals Understanding Web and Wireless Technologies and Reshaping Profit Interactions: Individuals/Businesses/Non- Opportunities and Challenges to Internet Marketing Digital Marketing Framework Delivering Enhanced Customer Value Market Opportunity Development Analysis and Digital Services ASCOR Digital Marketing Framework Application of Digital Marketing Critical Success Factors for Digital Marketing Chapter Summary Review Questions Digital Application Exercises Chapter Digital Marketing Models Creation Factors Impacting Digital Marketplace From Brick and Mortar to Bricks and Clicks Growth of Interactive Platforms The New Network Economy From Marketspaces to Marketplaces Changing Sales and Customer Service Patterns Value Chain Digitization Understanding Value Chain Functions Key Value Chain Process: A Basic Understanding Value Chain Elaboration: A Case of Journal Publishing Emergence of Digitized Value Chain Digital Marketing Business Models Understanding Digital Value Elements Digital Value-Led Marketing Approach Digital Marketing Models Creation Application of Digital Marketing Models Chapter Summary Review Questions Digital Application Exercises Chapter The Consumer for Digital Marketing Consumer Behavior on the Internet Evolution of Consumer Behavior Models Impact of Digital Technology on Consumer Behavior Attributes of Online Buying Behavior Influence of the Web Experience Marketing Intelligence from User’s Online Data Managing Consumer Demand Understanding Consumer Demands Demand-Led Product Development Process Brand Building on the Web Web-Tracking Audits and Forecasting Integrated Marketing Communications (IMC) Basics of Integrated Marketing Communications (IMC) Channels for Integrated Marketing Communications Four Pillars of the IMC Construct Impact of Digital Channels on IMC Practical Exercise Chapter Summary Review Questions Digital Application Exercises UNIT II DIGITAL MARKETING STRATEGY DEVELOPMENT Chapter Digital Marketing Assessment Phase Elements of the Assessment Phase Marketing Strategy and its Digital Shifts The Assessment Phase Elements Macro-Micro Environment Analysis Marketing Situation Analysis Digital Marketing Internal Assessment Analyzing Present Offerings Mix Marketing Mix Analysis Internal Resource Mapping Core Competencies Analysis Digital Marketing Objectives Planning Digital Presence Analysis Digital Presence Analysis Matrix Digital Marketing Objectives Development Digital Marketing Objectives Review Practical Exercise Chapter Summary Review Questions Digital Application Exercises Chapter Digital Marketing Strategy Definition Digital Marketing Strategy Groundwork Understanding Digital Business Strategy Emerging Digital Business Structures Digital Core Competency Alignment Customer Development Strategy (STP 2.0 Framework) Defining the Digital Marketing Mix Offering Mix for Digital Digital Pricing Models Channels of Purchase—Reaching the E-Consumer Managing Promotional Channels Developing the Extended Ps- People, Process, Programs, and Performance Digital Marketing Strategy Roadmap Developing Digital Marketing Strategy Roadmap The 6S Digital Marketing Implementation Strategy PLC Concept—Marketing across the Product Life Cycle Practical Exercise Chapter Summary Review Questions Digital Application Exercises UNIT III DIGITAL MARKETING PLANNING AND SETUP Growth of ‘E’ concepts, 10–15 Growth of interactive platforms, 54–57 GSI Commerce, 14 H Harvard Business Review, 59 HCI See Human-computer interaction (HCI) Higher potential for profiling, 87 Home marketing, Howard Sheth model, 84 Hsiao–Cheng Yu, 365 HTML See Hypertext Markup Language (HTML) HTTP See Hypertext Transfer Protocol (HTTP) Human–computer interaction (HCI), 273 Hyperlocal marketing, 413–414 hyperlocal marketing, 387, 413–415 Hypertext Markup Language (HTML), Hypertext Transfer Protocol (HTTP), I I C AN N See Internet Corporation for Assigned Names and Numbers (ICANN) Immediate Payment System (IPS), 366 Immersive marketing, 163 impact and importance of interactive platforms activity/promotions-based interactions, 56 community interactions, 56 expert opinion interactions, 56 feedback eliciting interactions, 56–57 information-seeking interactions, 55 problem-solving interactions, 55–56 Impact of digital channels on IMC brand marketing, 111 communication channel marketing, 112 community-based marketing, 112 content marketing, 112 intent-based marketing, 111 partner marketing, 112 platform-based marketing, 112 Impact of digital on customer service patterns, 61–62 Impact of digital technology on consumer behavior, 87–90 Impact of networks on digital marketing, 58 Implementation of interaction design, 273–274 Implementing brand-based campaigns (display execution), 315–322 Implementing Intent-Based Campaigns (Search Execution), 293–315 India digital advertising spend, 400–401 India Digital Marketing, 404 India digital marketing, 404 India digital spend overview, 397–400 Indian Institute of Technology, Industry analysis, 126 market segment analysis, 127 opportunity analysis, 127–128 Influence of web experience, 92–93 Information and communications technology, 14 impact on consumption function, 11 impact on delivery function, 11 impact on procurement function, 11 impact on production function, 11 Information and communication technologies, 11, 59, 410 Information dissemination, 7, 241, 262 Infoseek, Initial public offerings, Initial public offerings (IPOs), Inktomi, Institute of direct and digital marketing, 17 Integrated marketing, 18, 105–111 Integrated marketing communications, 105–112 Integrated marketing communications, channels for, 107–109 Intent-based marketing, 108, 111, 212 Interaction points of marketing, 22–26 activate-action, 24 engage-interest, 24 nurture-follow, 25 plan-intent, 22–24 reach-awareness, 24 Interactive platforms, 54–57 Internal resource mapping, 137–139 Internet basics-internet/intranet/extranet/portals, 29 Internet Corporation for Assigned Names and Numbers (ICANN), 263 Internet marketing, 15, 25, 108 Internet of Things (IoT), 368, 407, 410 Internet Relay Chats (IRCs), 239 Internet World magazine, 99 Investment analysis and planning for marketing RoI, 219–221 IPOs See Initial public offerings (IPOs) IPS See Immediate Payment System (IPS) IRCs See Internet Relay Chats (IRCs) J journal of integrated marketing communication, 106 Judging communications strategy clout, 227 control, 227 cost, 227 credibility, 227 juniper research, 367 K Keller’s CBBE model, 101 Key considerations of DSU implementation, 370–371 Key digital advertising trends in India, 401–404 Key digital planning concepts, 210–211 Key display ecosystem players, 237–238 Ad exchange, 238 Ad network, 237–238 agency trading desks, 238 demand side platforms, 238 supply side platforms, 238 Key performance indicators, 341 Key value chain process, 64–65 delivery function processes, 65 procurement function processes, 64 production function processes, 65 Kick-off call, 332 Kotler, Philip, 36, 109, 119, 152, 181, 185, 218 L Lack of organizational set–up, 375–376 Landing page optimization (LPO), 257–259 Lead generation process, 251 Lead generation/reverse auction platforms, 16 Lead management across channels, 259–261 Lead nurturing, 253–256 campaigns, types of, 254–255 Lead scoring, 255–256 Legal and compliance, 375 LetsBuy.com, Localization and translation, 408 LPO See Landing page optimization (LPO) M Macro-micro environment analysis, 124–126 Managing consumer demand, 96–105 Managing digital e-services, 369–371 Managing digital implementation challenges, 373–382 Managing digital marketing revenue, 356–364 Managing effort marketing, 119 Managing promotional channels, 189–191 Managing service delivery and payment, 364–373 MapmyIndia, Marketing advocate, 362–364 affiliate, 23, 24, 89, 109, 112, 190, 216, 218, 240, 241, 261, 333, 337, 423 automated, 252–253 automation tools, 16 big–bang, 163 brand, 25, 108, 111, 212 communication channel, 25, 109, 112 community based, 25, 109, 112, 212 content, 25, 108, 112, 212, 240, 333 conversion, 252–253 to customer segments, 163 database, 394 direct, 108, 212, 240 display, 190 DRIP, 362 e-commerce, 6, 190 e-mail, 6, 190 era digital, product, production, relationship, sales, trade, global, 107 home, hyperlocal, 413–414 immersive, 163 implementation RoI, 344–346 India digital, 404 integrated, 18, 105–111 intent-based, 108, 111, 212 internet, 15, 25, 108 managing effort, 119 mix, 93 mobile, 218 app, 423 start-up, multi-channel, 412 objectives review, 152 one-to-one, online, 6, 11, 12, 15, 60 paid per click, 232, 294 paid search, 294 partner, 25, 109, 112, 212, 240 physical, 15 planning programs, 119 platform, 240 platform based, 25, 109, 112, 212 post active and passive interaction, 23 fan or fall-out, 23 purchase, 23 pre interaction, 23 print, pull–push, 20 REAN, 21–22, 189 relationship, 361 sales team, 252–253 search engine, 6, 20, 190, 230, 232 social media, 6, 190, 238–240, 332 SoLoMo, 414 strategies, 119 tele, traditional, 231 approach, 74 to modern, 4–6 plans, 120 transaction, 361 Marketing analytics measurement framework, 343, 345, 348 Market opportunity analysis, 38–39 Marketspaces to marketplaces, 58–60 Mass advertising, 107 Measuring service quality elements, 276–279 Media consumption drivers, 20–21 consumerism/rising global economies, 21 emergence of internet, 20 rise of millennial generation, 20 technology advancements in devices, 21 Media planning shift to digital, 206–208 audience, 207 budget, 207 channel, 206 delivery, 207 schedule, 207 vehicle, 206 Media planning strategy, 212–214 Microsoft internet explorer, 8, 262 Micro targeting, 408 Minimum viable product (MVP), 38 Mobile app, 423 marketing, 218 start-up, Mobile payments solutions NFC, 367 SMS, 367 WAP, 367 Mobile wireless technology, 31 Modern marketing techniques, advent of, digital on traditional mediums, e-commerce marketing, e-mail marketing, online marketing, search marketing, social media marketing, Moto-G series, Mozilla, 8, 13, 262 Multi-channel marketing, 287, 412 Multi-platform marketing engagement, 15 MVP See Minimum viable product (MVP) Myntra.com, N Nasdaq, 7, 284 Naspers, 2, 368 National electronic clearing services, 365 National electronic fund transfer (NEFT), 366 Navigation design, 272 Need for digital strategy, 121–122 NEFT See National electronic fund transfer (NEFT) Netscape IPO, Network economy phenomenon, 57 Network effects, types of direct network effects, 58 indirect network effects, 58 local network effects, 58 two-sided network effects, 58 Network externalities, 57, 373 New network economy, 57–58 NGOs See Non-governmental organizations (NGOs) Nokia, 171 Non-governmental organizations (NGOs), 33, 63 Not-for-profit, 33 NRI focus, 284 O Objectives review marketing, 152 Offering mix for digital, 180–184 Omidyar, Pierre, 13 One-to-one marketing, 4, 222, 358 Online marketing, 6, 11, 12, 15, 60 Online-to-o?ine (O2O), 386 Online travel agency (OTA), 285 Online Value Proposition (OVP), 36, 37, 96 OpenText, 232 Opportunities and challenges to internet marketing, 34–35 Organic search results, 232, 294 OTA See Online travel agency (OTA) Overstock.com, 14 OVP See Online Value Proposition (OVP) Owned content marketing, 242 P Page, Larry, Paid content marketing, 242 Paid per click marketing, 232, 294 Paid search marketing, 294 Partner marketing, 25, 109, 112, 212, 240 affiliate marketing, 241 editorial partnerships, 241 key advantages, 241 public relations, 241 Passive digital influences, 89–90 customized content, 89 marketing channels, 89 real-time information, 89 social networks, 89 targeted/re-targeted advertising, 89 Pay Per Click (PPC), 190, 232, 294 executive, 421 PayU India, 368 PayZippy, 368 Pei-Jen Kuo, 365 Physical marketing, 15 Planning programs, 119 Platform based marketing, 25, 109, 112, 212 PLC concept-marketing across the product life cycle, 19–199 Porter, Michael, 10 value chain, 11, 15, 16 Porter model, 16 consumption function, 16 delivery function, 16 Premium inventory, 319, 320, 327 Price Waterhouse Coopers (PwC), 378 Print marketing, Prodigy, 239 Product revenue model, 357 Programmatic and real–time buying gaining traction, 404 Programmatic buying and real–time bidding, 407–408 Prominent online, Prototyping, 273, 274 Pull–push marketing, 20 Purchase funnel, 21 PwC See Price Waterhouse Coopers (PwC) Q Quality assurance, 265, 287, 323, 332, 423 Quidsi.com, 14 R Radio Frequency, 31, 367 Rao, Nishant, 249 RBV See Resource-based view (RBV) Reaching E-consumer, 107–109 Real-time bidding campaign workflow, 327 Real time gross settlement (RTGS), 366 REAN, 21–22, 189 Relationship marketing, 361 Relevancy ranking approach, Request-response protocol, Reshaping interactions:individuals/businesses/non-profit, 31–34 Resource-based view (RBV), 137 Responsive design, 408 Retention, 92, 149 Return on Investment, 35, 129, 149, 164, 285, 344, 349 Richards, Addison, 22 RTGS See Real time gross settlement (RTGS) RueLaLa.com, 14 S Sales funnel, 21 Samsung, 171–172 Search algorithms, 75, 125, 232, 260, 313 Search-box, 75, 232 Search campaign execution, 303–305 Search engine marketing (SEM), 6, 190, 230, 232 Search Engine Optimization (SEO), 232 Search marketing, Search terminology, 232, 233 Segments-based digital marketing, 411–412 Select channel mix, 214–218 Seller Flex, 51 SEM See Search engine marketing (SEM) SEM, advantages of, 234–235 SEO See Search Engine Optimization (SEO) SEO as marketing channels, 234–235 Service catalog, 370 Services revenue model, 357–358 Setting up for conversion, 256–258 SEZ See Special Economic Zones (SEZ) SKUs See Stock keeping units (SKUs) Small and medium businesses (SMB), 33, 34, 39, 42, 44, 53, 82, 166, 196, 264, 341, 409, 411–412, 417 Smart cards, 365 Smart objectives creation, 147–152 Social collaboration tools, Social media execution, 335–337 campaign execution, 336–337 campaign planning, 335 campaign refinement, 337 campaign tracking and monitoring, 337 content creation, 336 Social media marketing, 6, 190, 238–240, 332 Social media payments, 368–369 biometric payments, 368 digital kiosks, 368 TV set-top boxes, 368 Social media strategy, 335, 336 SoLoMo marketing, 414 Special Economic Zones (SEZ), 125 Standard display campaign workflow, 320–325 Stock keeping units (SKUs), 70 Story telling, 408 Supply side platforms, 238 T Technical issues like interoperability integration issues, 377 interoperability issues, 376–377 reliability issues, 377 technology issues, 377 Telecom infrastructure, 284, 376 Tele marketing, Ten Summoner’s Tales, 13 Tiger Global, Times Internet Ltd, 205 Times Local Partners, 205–206 Top digital marketing areas as career tracks affiliate marketing, 423 content manager, 423 CRM specialist, 423 display advertising, 423 E-commerce management, 423 mobile marketing, 423 PPC executive, 421 SEO manager, 421 social media marketing, 421–422 UX designers and developers, 423 Traditional marketing, 231 approach, 74 to modern, 4–6 plans, 120 Traditional to modern marketing, 4–6 Trafficking, 287, 291, 323, 332 Transaction cost concept for expert function, 65 Transformation type automation, 16 collaboration, 16 digitization, 16 T-shaped model, 421, 424 T-shaped web marketer, 419–421 breadth showcases knowledge, 420 depth provides expertise, 420 T-joint provides cross-innovation, 420–421 T-model reduces people’s dependencies, 421 Turning loyalists to advocates, 360–362 Two-sided markets, 373 U Understanding big data, 409–410 Understanding digital marketing conversion, 26–27 Understanding digital media planning terminology, 209–211 Understanding display inventory classification, 317–320 Understanding D-SWOT analysis, 131–136 Understanding E-commerce implementation challenges, 374–375 Understanding electronic payment systems, 365–366 Understanding E-models, 11–14 Understanding internet of Things (IoT), 410 Understanding macro-micro environments, 124–126 Understanding problem-value mapping, 36–38 Understanding rich media advertising, 330–331 Understanding STP basics, 136–137 Understanding value chain functions, 63–64 Understanding web and wireless technologies, 262 Understanding web cookies, 105 Understanding web usability and evaluation, 274–276 Understanding WhiteHat and BlackHat SEO, 308–309 Uniform Resource Locator (UL), 7, 262 Usability evaluation, 275–276 User experience, usability, and service quality elements, 270–278 User interface, 265 UX designers and developers, 423 V Value chain inbound logistics, 10 marketing and sales, 10 operations, 10 outbound logistics, 10 service, 10 Value chain digitization, 62–69 Value chain elaboration, 65–67 Value shift functions (VSF), 168 Vibes Mobile Consumer Report, 414 Viral content marketing, 242 VRIN Framework, 137–138, 144 VSF See Value shift functions (VSF) W Web 1.0 to Web 2.0, 9–10 Web analytics 2.0, 343–344 basics of, 340–341 WebCrawler, Web development pre-planning for, 261–264 Web development cycle, 264–266 Website content development, and management, 267–270 Website development stages, 264–266 Web-tracking audit, 104 need for, 104–105 Web-tracking system, 105 Wireframe development, 264 Wireless local area network (WLAN), 31 Wireless networks, 31 WLAN See Wireless local area network (WLAN) Wood, John, World Wide Web (WWW), 6, 7, 262, 274 WWW See World Wide Web (WWW) X Xiaomi, 172 Y Yahoo, Year over year (YoY), 84 Yielding and acceptance, 92 YoY See Year over year (YoY) Z Zappos.com, 14 Zon-Yau Lee, 365 Zuckerberg, Mark, 116, 117–118 Photo Credits - Chapter Openers Chapter nmedia Shutterstock Chapter Dusit Shutterstock Chapter x7vector Shutterstock Chapter 123rf.com Chapter peshkova 123rf.com Chapter ra2studio Shutterstock Chapter Syda Productions Shutterstock Chapter rawpixel 123rf.com Chapter wavebreakmedia Shutterstock Chapter 10 Sergey Nivens Shutterstock Chapter 11 Rawpixel.com Shutterstock Senior Editor—Acquisitions: Varun Goenka Senior Editor—Development: Amrita Marik Senior Editor—Production: G Sharmilee The aim of this publication is to supply information taken from sources believed to be valid and reliable This is not an attempt to render any type of professional advice or analysis, nor is it to be treated as such While much care has been taken to ensure the veracity and currency 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without the prior written permission of both the copyright owner and the publisher of this book ISBN 978-93-534-3514-1 e-ISBN 9789389552843 First Impression Published by Pearson India Education Services Pvt Ltd, CIN: U72200TN2005PTC057128 Head Office: 15th Floor, Tower-B, World Trade Tower, Plot No 1, Block-C, Sector 16, Noida 201 301, Uttar Pradesh, India Registered Office: 4th floor, Software Block, Elnet Software City, TS-140, Block & 9, Rajiv Gandhi Salai, Taramani, Chennai 600 113, Tamil Nadu, India Fax: 080-30461003, Phone: 080-30461060 W e b s i t e : in.pearson.com, Email: companysecretary.india@pearson.com Compositor: Pearson In-house team ... Managing Promotional Channels Developing the Extended Ps- People, Process, Programs, and Performance Digital Marketing Strategy Roadmap Developing Digital Marketing Strategy Roadmap The 6S Digital Marketing. .. Areas Marketing- Landscape and Digital Marketing Global Landscape Digital Marketing Overview—Global Spend Digital Marketing Overview—Advertising Spend Conceptualizing Digital Marketing Landscape Digital. .. Marketing Chapter Summary Review Questions Digital Application Exercises Chapter 11 A Career in Digital Marketing Emerging Opportunities for Digital Marketing Professionals The Changing Role of CMOs