IS DIGITAL MARKETING

WELCOMED BY PEOPLE?

Abstract: Marketers are faced with new challenges and opportunities within this digital age. Digital
marketing is the utilization of electronic media by the marketers to promote the products or services into the
market. The main objective of digital marketing is attracting customers and allowing them to interact with
the brand through digital media. This article focuses on the importance of digital marketing for both
marketers and consumers. We examine the effect of digital marketing on the firms’ sales. Additionally the
differences between traditional marketing and digital marketing in this paper are presented. This study has
described various forms of digital marketing, effectiveness of it and the impact it has on firm’s sales. The
examined sample consists of one hundred fifty firms and fifty executives which have been randomly
selected to prove the effectiveness of digital marketing. Collected data has been analyzed with the help of
various statistical tools and techniques.

1.Introduction
Digital marketing is one type of marketing being widely used to promote products or services and to reach
consumers using digital channels. Digital marketing extends beyond internet marketing including channels
that do not require the use of Internet. It includes mobile phones (both SMS and MMS), social media
marketing, display advertising, search engine marketing and many other forms of digital media.

Through digital media, consumers can access information any time and any place where they want. With
the presence of digital media, consumers do not just rely on what the company says about their brand but
also

they can follow what the media, friends, associations, peers, etc., are saying as well. Digital marketing is a
broad term that refers to various promotional techniques deployed to reach customers via digital
technologies. Digital marketing embodies an extensive selection of service, product and brand marketing
tactics which mainly use Internet as a core promotional medium in addition to mobile and traditional TV and
radio. Canon image Gateway helps consumers share their digital photos with friends online. L’Oréal’s brand
Lancôme uses email newsletters to keep in touch with customers and hence tries to strengthen customer
brand loyalty (Merissa et al., 2004). Magazine publishers can activate and drive their customers into
Internet with e-mails and SMS messages to improve re-subscription rate (Merissa et al., 2004).
Marketers increasingly bring brands closer to consumers’ everyday life. The changing role of customers as
co- producers of value is becoming increasingly important (Prahalad and Ramaswamy, 2004). Khan and
Mahapatra (2009) remarked that technology plays a vital role in improving the quality of services provided
by the business units. According to Hoge (1993), electronic marketing (EM) is a transfer of goods or
services from seller to buyer involving one or more electronic methods or media. E-Marketing began with
the use of telegraphs in the nineteenth century. With the invention and mass acceptance of the telephone,
radio, television, and then cable television, electronic media has become the dominant marketing force.
McDonald’s uses online channel to reinforce brand messages and relationships. They have built online
communities for children, such as the Happy Meal website with educative and entertaining games to keep
customers always close to themselves (Rowley 2004). Reinartz and Kumar (2003) found that the number of
mailing efforts by the company is positively linked with company profitability over time. The primary
advantages of social media marketing is reducing costs and enhancing the reach. The cost of a social media
platform is typically lower than other marketing platforms such as face-to-face sales or sales with a help of
middlemen or distributors. In addition, social media marketing allows firms to reach customers that may not
be accessible due to temporal and locational limitations of existing distribution channels. Generally, main
advantage of social media is that it can enable companies to increase reach and reduce costs (Watson et al.
2002; Sheth & Sharma 2005).
According to Chaffey (2011), social media marketing involves “encouraging customer communications on
company’s own website or through its social presence”. Social media marketing is one important technique
in digital marketing as companies can use social media form to distribute their messages to their target
audience without paying for the publishers or distributor that is characteristic for traditional marketing.
Digital marketing, electronic marketing, e-marketing and Internet marketing are all similar terms which,
simply put, refer to “marketing online whether via websites, online ads, opt-in emails, interactive kiosks,
interactive TV or mobiles” (Chaffey & Smith, 2008). Giese and Gote (2000) finds that customer information
satisfaction (CIS) for digital marketing can be conceptualized as a sum of affective response of varying
intensity that follows consumption and is stimulated by focal aspects of sales activities, information systems
(websites), digital products/services, customer support, after-sales service and company culture.

Waghmare (2012) pointed out that many countries in Asia are taking advantage of e-commerce through
opening up, which is essential for promoting competition and diffusion of Internet technologies. Zia and
Manish (2012) found that currently, shoppers in metropolitan India are being driven by e-commerce: these

consumers are booking travels, buying consumer electronics and books online. Although spending per online
buyer remains low, some 59% of online consumers in metropolitan India already make purchases online at
least once in a month. Dave Chaffey (2002) defines e-marketing as “application of digital technologies -
online channels (web, e-mail, databases, plus mobile/wireless & digital TV) to contribute to marketing
activities aimed at achieving profit acquisition and customers retention (within a multi-channel buying
process and customer lifecycle) by improving customer knowledge (of their profiles, behavior, value and
loyalty drivers) and further delivering integrated communications and online services that match customers’
individual needs. Chaffey's definition reflects the relationship marketing concept; it emphasizes that it
should not be technology that drives e-marketing, but the business model. All types of social media provide
an opportunity to present company itself or its products to dynamic communities and individuals that may
show interest (Roberts & Kraynak, 2008). According to Gurau (2008), online marketing environment raises a
series of opportunities and also challenges for social media marketing practitioners.

The main objective of this paper is to identify the effectiveness of digital marketing in the competitive market.
The supportive objectives are following:
⮚ To show the various elements of digital marketing;
⮚ To focus on the basic comparison between traditional and digital marketing;
⮚ To discuss the effects of various forms of digital marketing on the firm’s sales and other
activities;
⮚ To show the various advantages of digital marketing to the customers.

2. Theoretical and conceptual framework

2.1 Traditional Marketing versus Digital Marketing

Traditional marketing is the most recognizable form of marketing. Traditional marketing is non-digital way
used to promote the product or services of business entity. On the other hand, digital marketing is the
marketing of products or services using digital channels to reach consumers. Some comparisons are
presented below:

Traditional Marketing Digital Marketing

Traditional marketing includes print, broadcast, Digital marketing includes online advertising,
direct mail, and telephone email marketing, social media, text messaging,
affiliate
marketing, search engine optimization, pay per
click
No interaction with the audience Interaction with the audience
Results are easy to measure Results are to a great extent easy to measure
Advertising campaigns are planned over a long Advertising campaigns are planned over short
period of time period of time
Expensive and time-consuming process Reasonably cheap and rapid way to promote the
 products or services
Success of traditional marketing strategies can Success of digital marketing strategies can be
be celebrated if the firm can reach large local celebrated if the firm can reach some specific
audience number of local audience
One campaign prevails for a long time Campaigns can be easily changed with ease and
innovations can be introduced within any
campaign
Limited reach to the customer due to limited Wider reach to the customer because of the use
of
number of customer technology
various customers technology
24/7 year-round exposure is not possible 24/7 year-round exposure is possible
No ability to go viral Ability to go viral
One way conversation Two ways conversation
Responses can only occur during work hours Response or feedback can occur anytime

Table 2.1 Traditional marketing and digital marketing

comparison

Advertising mediums that might be used as part of digital marketing strategy of a business could include
promotional efforts made via Internet, social media, mobile phones, electronic billboards, as well as via digital
television and radio channels. Digital marketing is a sub branch of traditional marketing and uses modern
digital channels for the placement of products e.g. downloadable music, primarily for communicating with
stakeholders e.g. customers and investors about brand, products and business progress.

2.2 Various elements of digital marketing

There are various elements by which digital marketing is formed. All forms operate through electronic
devices. The most important elements of digital marketing are given below:

(i) Online advertising

Online advertising is a very important part of digital marketing. It is also called internet advertising through
which company can deliver the message about the products or services. Internet-based advertising provides
the content and ads that best matches to consumer interests. Publishers put about their products or
services on their websites so that consumers or users get free information. Advertisers should place more
effective and relevant ads online. Through online advertising, company well controls its budget and it has
full control on time.
(ii) Email Marketing
When message about the products or services is sent through email to the existing or potential consumer, it
is defined as email marketing. Direct digital marketing is used to send ads, to build brand and customer
loyalty, to build customer trust and to make brand awareness. Company can promote its products and
services by using this element of digital marketing easily. It is relatively low cost comparing to advertising or
other forms of media exposure. Company can bring complete attention of the customer by creating
attractive mix of graphics, text and links on the products and services.
(iii) Social Media
Today, social media marketing is one of the most important digital marketing channels. It is a computer-
based tool that allows people to create, exchange ideas, information and pictures about the company’s
product or services. According to Nielsen, internet users continue to spend more time with social media sites
than any other type. Social media marketing networks include Facebook, Twitter, LinkedIn and Google+.
Through Facebook, company can promote events concerning product and services, run promotions that
comply with the Facebook guidelines and explore new opportunities. Through Twitter, company can
increase the awareness and visibility of their brand. It is the best tool for the promotion of company’s
products and services. In LinkedIn, professionals write their profile and share information with others.
Company can develop their profile in LinkedIn so that the professionals can view and can get more
information about the company’s product and services. Google+ is also social media network that is more
effective than other social media like Facebook, Twitter. It is not only simple social media network but also
it is an authorship tool that links web-content directly with its owner.

(iv) Text Messaging

It is a way to send information about the products and services from cellular and smart phone devices. By
using phone devices, company can send information in the form of text (SMS), pictures, video or audio
(MMS). Marketing through cellphone SMS (Short Message Service) became increasingly popular in the early
2000s in Europe and some parts of Asia. One can send order confirmations, shipping alerts using text
message. Using SMS for campaigns get faster and more substantial results. Under this technique,
companies can send marketing messages to their customers in real-time, any time and can be confident
that the message will be seen. Company can create a questionnaire and obtain valuable customer feedback
essential to develop their products or services in future.
(v) Affiliate Marketing:
Affiliate marketing is a type of performance-based marketing. In this type of marketing, a company rewards
affiliates for each visitor or customer they bring by marketing efforts they create on behalf of company.
Industry has four core players: the merchant (also known as “retailer” or “brand”), the network, the
publisher (also known as “the affiliate”) and the customer. The market has grown in such complexity
resulting in the emergence of a secondary tier of players including affiliate management agencies, super-
affiliates and specialized third party vendors. There are two ways to approach affiliate marketing: Company
can offer an affiliate program to others or it can sign up to be another business’s affiliate. If company wants
to drive an affiliate program, then, the company owner has to pay affiliates a commission fee for every lead
or sale they drive to company’s website. Company’s main goal here is to find affiliates who can reach
untapped markets. For example, a company with an e-zine may become a good affiliate because its
subscribers are hungry for resources. So, introducing one’s offer through “trusted” company can grab the
attention of prospects which might not have otherwise reached.
(vi) Search Engine Optimization (SEO)
Search engine optimization (SEO) is the process of affecting the visibility of a website or a web page in a
search engine’s “natural” or un-paid (“organic”) search results. In general, the earlier (or higher ranked on
the search results page), and more frequently a website appears in the search result list, the more visitors it
will
receive from the search engine users. SEO may target different kinds of search including image search, local
search, video search, academic search, news search and industry-specific vertical search engines.
(vii) Pay Per Click (PPC)
Pay-per-click marketing is a way of using search engine advertising to generate clicks to your website rather
than “earning” those clicks organically. Pay per click is good for searchers and advertisers. It is the best way
for company’s ads since it brings low cost and greater engagement with the products and services.

2.3 Advantages digital m arketing brings to customers

With rapid technological developments, digital marketing has changed customers buying behavior. It has
brought various advantages to the consumers as given below:
(i) Stay updated with products or services
Digital marketing technologies allow the consumers to stay with the company information updated.
Nowadays a lot of consumer can access internet any place anytime and companies are continuously
updating information about their products or services.
(ii) Greater engagement
With digital marketing, consumers can engage with the company’s various activities. Consumers can visit
company’s website, read information about the products or services and make purchases online and provide
feedback.
(iii) Clear information about the products or services
Through digital marketing, consumers get clear information about the products or services. There is a little
chance of misinterpretation of the information taken from sales person in a retail store. However, Internet
provides comprehensive product information which customers can rely on and make purchase decision.
(iv) Easy comparison with others
Since many companies are trying to promote their products or services using digital marketing, it is
becoming the greatest advantage for the customer in terms that customers can make comparison among
products or services by different suppliers in cost and time friendly way. Customers don’t need to visit a
number of different retail outlets in order to gain knowledge about the products or services.
(v) 24/7 Shopping
Since internet is available all day long, there is no time restriction for when customer wants to buy a
product online.
(vi) Share content of the products or services
Digital marketing gives viewers a chance to share the content of the product or services to others. Using
digital media, one can easily transfer and get information about the characteristics of the product or
services to others.
(vii) Apparent Pricing
Company shows the prices of products or services through digital marketing channel and this makes prices
very clear and transparent for the customers. Company may regularly changes the prices or gives special
offers on their products or services and customers are always in advantages by getting informed instantly
by just looking at any one mean of digital marketing.

(viii) Enables instant purchase

With traditional marketing, customers first watch the advertisement and then find relevant physical store to
purchase the products or services. However, with digital marketing, customers can purchase the products or
services instantly.

3. Methodology of the study

Methodology comes from systematic and theoretical analysis of the methods to evaluate suitability of one
specific method to apply to a field of study. It typically encompasses concepts such as paradigm, theoretical
model, phases and quantitative or qualitative techniques. This study is conducted based on both primary
and secondary data sources.

Primary sources:

Primary source is a source from where we collect first-hand information or original data on a topic.
Interview technique was used with structured questionnaire for the collection of primary data.

Secondary sources:
Secondary source is a source from where we collect data that has already been collected by someone. We
have collected secondary data from the published financial statements of the firms, newspaper and articles.
For the purpose of this study, we have selected one hundred fifty firms randomly which are using digital
marketing system to sell their products to customers. Additionally, we also collected data from 50 executives
from sample and other different firms to know their opinion on the effectiveness of digital marketing.
Collected data and information has been organized, explained and analyzed by using different statistical
tools and techniques. This study shows results both in descriptive and analytical way.

4. Importance & Benefits of Digital Marketing Better

• Reach Nowadays, many people across the world are spending their time online. They are
browsing the internet and looking for your products. In order to benefit from this massive
audience base, maximizing your online presence is key. This is where digital marketing comes
into the picture. Digital marketing is all about reaching the right people at the right time. Hence,
to begin with, one must have an engaging online store with easy navigation to improve audience
reach. In this process, various mediums within digital marketing can eventually help in brand
 building – Pay Per Click Marketing, Social Media Marketing, Search Engine Optimization, Content
Marketing, and many more. - Can compete with large corporations Analyzing the competitor is a
key activity in digital marketing. The activity is essential to keep up with the competition
especially amongst fast-growing brands such as Myntra, Amazon, Big basket, Walmart.
Businesses also try to push the envelope with multichannel marketing which comprises of PPC,
SEO, social media, and many more mediums. The approach helps both small and large
businesses to achieve their respective goals, leveling the field.

• Increase in Brand Awareness for small businesses Digital marketing is a boon to businesses. Large
companies use digital marketing so that they could stand steady in a competitive environment. In contrast,
small businesses use online marketing to make headway into a booming market and create brand
awareness amongst large companies.

• Increase in Sales One of the key aspects, when it comes to the importance of digital marketing, is that one
can measure their CRO (Conversion rate Optimisation) in real-time. The data can help understand the
overall percentage of searches that get converted into leads by buying products. PPC, Social media
marketing, SEO services, affiliate marketing are some of the active channels to communicate and get high
conversions.

• Return on investment If you want to know the value of digital media, look at the measurement metrics of
profit and loss it drives for business. The ROI in digital marketing defines the worth of your marketing
campaigns. For example, when compared with other mediums like e-mail marketing, content marketing,
PPC, social media campaigns; SEO has been known to generate higher ROI. From basic metrics such as
sessions and bounce rate, the organic traffic generated by the SEO shows 40% more revenue growth than
any other marketing strategies.

• Maintaining The Brand Reputation Developing a strong brand reputation in the online world has become
very important as the brand’s reputation cements its ability to sustain in the market. Thereby, further
reiterating the importance of digital marketing in this aspect too.

• Can target ideal audiences Imagine, reaching out to the right audience for your business’s niche is such a
great opportunity. That is exactly what digital marketing helps to achieve. You can analyze your audience’s
behavior online and take measures to deliver optimal fulfillment. When you reach the right audience group,
you drive more traffic, and that results in better campaigns.

• Get Ahead of Your Competitor The digital market is incredibly competitive when it comes to online
business, in particular. Hence, you would want potential customers to find you with your best reviews and
other measures initiated by various digital marketing services. These measures can you and your customer
to work towards the right business goals in the end. Also, for any successful business, one needs to make
a track of their competitor’s activities. How do they communicate with customers? What makes them
unique? Competitor analysis can help you understand all the aforementioned queries and develop
strategies that work best in your favour.
5.Concluding remarks and proposal
Digital channel in marketing has become essential part of strategy of many companies. Nowadays, even for
small business owner there is a very cheap and efficient way to market his/her products or services. Digital
marketing has no boundaries. Company can use any devices such as smartphones, tablets, laptops,
televisions, game consoles, digital billboards, and media such as social media, SEO (search engine
optimization), videos, content, e-mail and lot more to promote company itself and its products and services.
Digital marketing may succeed more if it considers user needs as a top priority. Just like “Rome was not
built in a day,” so, digital marketing results won’t also come without attempt, without trial (and error). The
watchwords “test, learn and evolve” should be at the heart of all digital marketing initiatives. Companies
should create innovative customer experiences and specific strategies for media to identify the best path for
driving up digital marketing performance.

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