Module I
Module I
er in search
rtising (e.g.,
hics, and
witter, and
promotional
y.
es in
tion-based
o engage
keep your
• Video Marketing: Utilizing video conten
viewers and tell your brand story.
• Display Advertising and Retargeting: U
brand top-of-mind and re-engage previ
Each option can be customized based on yo
objectives.
al Marketing?
ages over traditional marketing methods, includ
than traditional media, allowing for flexible bud
keep your
ting
ding:
dgeting and
avior, and
s,
strategies in
customer
ed on
g customer
e limitations
standing
ng
several key
3. What Differences Do Digital Media
Communications Models?
Digital media has transformed the way bran
differences:
• Two-Way Communication: Unlike tradit
digital media enables interactive dialogu
direct messages, and social engagement
• Real-Time Feedback and Analytics: Di
performance, allowing marketers to quic
• Enhanced Personalization: Digital tools
traditional mass media cannot match.
• Increased Flexibility: Digital campaigns
with new ideas and respond to market c
• Broader Reach and Lower Costs: Digita
it possible to engage with diverse audien
traditional advertising.
• Content Richness and Variety: Digital m
graphics, podcasts), which enhances sto
• Integration and Automation: Digital mar
automation and AI to streamline process
channels.
• Community Building: Social media platfo
user-generated content and word-of-m
essaging,
mments,
campaign
ssages that
o experiment
ach, making
ted with
eractive
at use
ultiple
uraging
ccur
, digital
es over the
processes
between and among organizations and in
marketplaces, and payment processing—
internet.
• E-Business: In contrast, e-business i
and operations within a firm. This includ
relationships, human resources, and inte
Notably, e-business does not cover tran
separate organizations—that falls under
Understanding this distinction is vital for m
online strategies and allocate resources. W
channels, e-business emphasizes improving
Initiate
• Definition: Launch your digital strategy
• Actions:
○ Identify your target audience, set clea
ndividuals. It covers activities like online retail,
—essentially, any exchange of goods or service
processes
customer
ems.
tween
cture their
ough online
he company.
ying
eds and
ess
llocation to
ough the
arameters,
marketing
nnels (social
• Definition: Launch your digital strategy
• Actions:
○ Identify your target audience, set clea
media, website, email, etc.).
○ Develop initial content, campaigns, or
• Purpose: Establish a baseline presence
Iterate:
• Definition: Continuously test and improv
• Actions:
○ Use data and feedback (through analy
what’s working and what isn’t.
○ Refine your messaging, targeting, and
• Purpose: Enhance effectiveness over tim
responsive to audience behavior.
Integrate
• Definition: Seamlessly combine efforts a
• Actions:
○ Across Digital Channels: Ensure you
aligned for a unified brand experience
○ Digital and Traditional Marketing: B
events) so that the overall strategy is
○ Reporting Sources: Consolidate data
system to get a holistic view of your
• Purpose: Create a consistent brand mes
better decision-making through integrat
Together, these three steps help marketers
on data, and maintain consistency across e
ve your strategy.
evaluate
trics.
and
e efforts are
print, TV, or
eporting
acilitate
rove based
forts with
Together, these three steps help marketers
on data, and maintain consistency across e
gh digital channels.
nverting website visitors into paying customers
on, targeted advertising (such as PPC and socia
es to maximize conversions.
efficiency.
duce marketing expenditures and streamline op
rove based
forts with
enhances
s.
al media
eds.
stomer
esence
nd
or live
nd trust.
perations.
4. Save
• Objective: Optimize costs and improve e
• Key Focus: Leverage digital tools to red
• Strategies: Utilize data analytics to mak
marketing automation tools, and use digi
traditional media—to achieve broad reac
5. Sizzle
• Objective: Build a compelling and memo
• Key Focus: Create an emotional connec
identity.
• Strategies: Use creative and visually en
implement storytelling techniques that c
and differentiate your brand in a crowde
brand
ice, and
excitement
strategic
engths, and
qualities
ences, and
2. Customers
• Focus: Understand the target market.
• Key Considerations: Identify who your
demographics.
• Purpose: Tailor your products, services
and enhance satisfaction.
3. Competitors
• Focus: Evaluate the competitive landsca
• Key Considerations: Identify direct and
weaknesses, market positioning, and str
• Purpose: Determine how to differentiate
market.
4. Collaborators
• Focus: Look at your external partners.
• Key Considerations: Consider suppliers
deliver your product or service.
• Purpose: Leverage these relationships t
enhance overall value to customers.
5. Context (or Climate)
• Focus: Examine the broader external en
• Key Considerations: Analyze economic,
factors that could impact your business.
• Purpose: Understand external trends an
capitalize on emerging opportunities.
customers are, their needs, behaviors, prefere
ape.
d indirect competitors, analyze their strengths a
rategies.
e your offerings and identify opportunities or th
nvironment.
, political, legal, cultural, technological, and env
.
nd forces to adapt your strategy, anticipate cha
ences, and
demands
and
hreats in the
at help
ch, and
vironmental
allenges, and
•
B2C (Business-to-Consumer)
• Definition: Businesses selling products o
• Examples: Retail websites (e.g., Amazon
• Key Characteristics:
○ Focus on customer experience and br
○ Often involves shorter sales cycles an
○ Marketing strategies emphasize emot
or services directly to individual consumers.
n, Walmart online), food delivery apps, streami
randing.
nd a high volume of transactions.
tional appeal and convenience.
ing services.
• Key Characteristics:
○ Focus on customer experience and br
○ Often involves shorter sales cycles an
○ Marketing strategies emphasize emot
B2B (Business-to-Business)
• Definition: Transactions where one busi
• Examples: Manufacturers selling compo
enterprise clients, wholesale distributors
• Key Characteristics:
○ Emphasis on long-term relationships
○ Sales processes tend to be longer and
○ Decisions are driven by cost efficienc
C2B (Consumer-to-Business)
• Definition: A model where individual con
• Examples: Freelance platforms (e.g., Up
influencer collaborations where consume
brands leverage.
• Key Characteristics:
○ Shifts traditional roles by empowering
○ Often involves niche services or crea
○ Relies on digital platforms to facilitate
C2C (Consumer-to-Consumer)
• Definition: Transactions that occur direc
• Examples: Online marketplaces (e.g., eB
buy and sell items.
randing.
nd a high volume of transactions.
tional appeal and convenience.
eal.
ses.
xpertise,
ent that
individuals
C2C (Consumer-to-Consumer)
• Definition: Transactions that occur direc
• Examples: Online marketplaces (e.g., eB
buy and sell items.
• Key Characteristics:
○ Typically facilitated by third-party pl
reviews).
○ Can involve both goods and services.
○ Emphasizes community-driven engag
G2G (Government-to-Government)
• Definition: This refers to interactions an
agencies or departments.
• Purpose:
○ Streamlined Processes: Facilitates th
governmental bodies to enhance effic
○ Collaboration: Supports joint initiativ
• Example: A federal agency sharing data
or security measures.
G2C (Government-to-Citizen)
• Definition: This model describes the int
• Purpose:
○ E-Governance: Enhances public acce
license renewals, benefit applications
○ Improved Engagement: Facilitates be
making government services more us
• Example: An online portal where citizen
services directly.
ctly between consumers.
Bay, Craigslist, Facebook Marketplace) where i
atings and
overnment
ices across
dination.
r response
public.
filing,
nsiveness,
essential
making government services more us
• Example: An online portal where citizen
services directly.
B2G (Business-to-Government)
• Definition: This involves transactions an
agencies.
• Purpose:
○ Procurement and Contracts: Busines
services through formal contracts.
○ Regulatory Compliance: Companies i
adherence to regulatory standards.
• Example: A technology firm bidding for
department, or submitting proposals for
nment
ds and
permits, and
ment
consumer
ere
uenced by
ds and how
their neighbors’ actions. In a marketing c
social proof can lead to widespread enga
2. Socializing & Maslow’s Hierarchy of Ne
• Maslow’s Theory: At its core, Maslow’s
pyramid—from basic physiological needs
• Connection to Social Behavior: Socializ
layer. Consumers often seek connection
brands and make purchasing decisions.
• Practical Application: Marketers can ap
community, encourage interaction, and b
3. Other Influential Factors
• Product Information: Consumers rely on
Quality information helps satisfy the nee
• Convenience: Ease of use, fast access,
efficiency, satisfying both practical and
• Price Advantage: Competitive pricing or
when consumers are weighing their opti
• Entertainment: Engaging and enjoyable
reward, making the overall experience m
anged in a
and love”
ct with
at foster
ecisions.
desire for
, especially
motional
decisions.
biases often
on, or social
strategies
C’s:
that tap into these less-rational factors.
res attention
engagement.
ual customer
consumers
ests, social
advocates
e—whether
ustomer
ces that
rol and
discounts,
• Marketing Role: Empowering customers
satisfaction during the buying process.
6. Cost Reduction
• What It Means: Helping customers save
or perceived value for money.
• Marketing Role: Emphasizing cost benef
sensitive segments.
Bringing It All Together
By understanding how group behavior (like
Maslow’s hierarchy) influence consumer ac
as product information, convenience, price,
framework provides a strategic checklist fo
compelling content to offering customized,
consumers may not always act rationally fu
leverage both emotional and logical appeals
discounts,
price-
xplained by
ctors such
y, the 6C’s
vering
ognizing that
ategies that
Netflix)
s can shop
shopping
hands-free, making online shopping even m
✅ Social Commerce – Platforms like Inst
features, reducing friction between discove
✅ Subscription Services & BNPL (Buy N
or Klarna encourage spending by making p
✅ Augmented Reality (AR) Shopping – B
visualize products, reducing hesitation.
Negative Trends
❌ Cybersecurity Concerns – Rising cybe
due to fear of fraud.
❌ Privacy Regulations & Ad Restrictions
targeted advertising, making it harder for b
❌ Supply Chain & Shipping Issues – Dela
physical stores.
Q.Fulgoni refers to two major factors that
purchase online rather than in physical st
and lower prices. What other factors migh
to purchase a product online rather than f
Walmart? What are the advantages of purc
2. Other Factors Driving Online Purchases vs. In-St
Why Consumers Prefer Online Shopping?
• 📦 Wider Selection & Availability – On
that local stores may not carry.
• 💬 Reviews & Social Proof – Online cu
lack immediate peer feedback.
• ⏳ No Crowds, No Travel Time – Shop
commuting.
• 🎁 Exclusive Online Deals & Discount
more seamless.
tagram, TikTok, and Facebook have integrated
ery and purchase.
Now, Pay Later) – Services like Amazon Subsc
purchases feel more accessible.
Brands like IKEA and Sephora use AR to help co
t drive consumers to
tores: convenience
ht drive a consumer
from, say, the local
chasing at a store?
tore Shopping
onsumers
hop online
es limit
ack to
are items
e purchases
ssle of
, cashback,
lack immediate peer feedback.
• ⏳ No Crowds, No Travel Time – Shop
commuting.
• 🎁 Exclusive Online Deals & Discount
or personalized discounts.
• 🚚 Doorstep Delivery & Easy Returns
returns attracts shoppers.
Why Consumers Prefer In-Store Shopping?
• 👀 Physical Experience – Trying on clo
before buying.
• ⏳ Instant Gratification – No waiting fo
• 🙋 Customer Service & Assistance – I
recommendations.
• 🔄 Easier Returns & Exchanges – No n
• 🏪 No Hidden Fees – Online purchases
apparent upfront.
Q.Fulgoni highlights a significant shift in r
smartphones to compare prices in real-tim
traditional roles of physical stores and wa
Rationale Behind the Shift:
1. Showrooming Concept:
○ Experience Over Inventory: Retailer
customers can interact with products,
maintaining large inventories.
○ Informed Purchasing: Customers can
order online, often seeking better dea
2. Optimized Inventory Management:
○ Centralized Warehousing: By reducin
warehouses located in areas with low
pping from home saves time and avoids the has
, cashback,
sle-free
sthand
mediately.
nd
ren’t
o use
consider the
where
ther than
n choose to
ntory in
order online, often seeking better dea
2. Optimized Inventory Management:
○ Centralized Warehousing: By reducin
warehouses located in areas with low
○ Efficient Fulfillment: Centralized stoc
delivery times, as inventory is manag
3. Cost Reduction:
○ Smaller Retail Spaces: Downsizing ph
and maintenance.
○ Lower Overheads: With less space a
retailers to allocate resources more e
Disadvantages of This Approach:
1. Customer Experience Challenges:
○ Delayed Gratification: Customers acc
need to wait for online orders to arriv
○ Limited On-Site Stock: A reduced in
exact product variant they desire in-s
2. Logistical Complexities:
○ Increased Shipping Costs: Frequent
may offset savings from reduced phy
○ Return Management: Handling return
costly compared to in-store returns.
3. Competitive Pressure:
○ Price Sensitivity: With easy access t
continually offer competitive pricing,
○ Brand Loyalty Risks: If customers fin
more readily, challenging retailers to
---------------------------------
als or specific variations.
-------------------------------------
ntory in
ally faster
nt, utilities,
wing
erred by the
ind the
enses, which
ed and
ure to
itch brands
----------
---------------------------------
6 Types of consumers:
.Future of shopping
-------------------------------------
ng new
proof before
e or service.
ment.
rrectness of
that
practices
pact of their
seller.
.Future of shopping
your
ways to get
unchanged
physical
across all
digital
ess. Instead
iness unit
to tailor its
ategies, and
taneously.
customer service models that better suit on
Here’s what each of these strategic options
6. Pursue on All Fronts:
This strategy calls for aggressively develo
Instead of choosing one path over the othe
its digital presence while continuing to stre
7. Mixed System:
A mixed system approach blends elements
e-commerce. The aim is to integrate the be
seamless shopping experience whether the
8. Switch Fully:
This option involves making a complete shi
or e-commerce-focused operation. Compan
channels to concentrate all efforts and reso
9. Best of Both:
This strategy means combining the advanta
committing exclusively to either. The idea
complements the other, maximizing benefit
10. Reinitialize and Buck the Trend:
This is a radical, transformative approach.
company rethinks its entire business model
forging a new path that may diverge sharpl
an enjoy a
ntirely digital
tional
t fully
hannel
trends, a
norms and
hael de
-commerce.
nce, and
Kare-Silver for manufacturers looking to re
These strategies address how a manufactu
leverage opportunities presented by electro
1. Woo the Retailer
• What It Means:
Establish a long-term, cooperative relat
partnership built on mutual trust, shared
• Why It’s Done:
○ To secure prime shelf space or prom
○ To ensure the retailer remains motiva
○ To foster a win–win situation in which
growth.
2. Private Label
• What It Means:
Produce goods under the retailer’s own
manufacturer’s own brand.
• Why It’s Done:
○ In exchange for producing private-lab
reliable revenue stream, and a share
○ This often means sacrificing some ind
the retailer’s label is strong or widely
3. Technology-Led
• What It Means:
Focus on developing products with uniqu
they create their own demand.
• Why It’s Done:
○ A technologically advanced or innova
in a crowded market.
espond to powerful retailers and the rise of e-
urer can balance power, maintain market presen
onic shopping.
motional support.
ated to push the manufacturer’s products.
h both the manufacturer and retailer share prof
fits and
t orders, a
ucrative if
elling that
d stand out
they create their own demand.
• Why It’s Done:
○ A technologically advanced or innova
in a crowded market.
○ If the product’s performance is truly d
the retailer’s leverage.
4. Brand-Led
• What It Means:
Build and leverage a strong brand identi
consumer awareness that people will sp
• Why It’s Done:
○ A powerful brand can shift the balanc
come looking for that specific brand.
○ Brand loyalty can lead retailers to co
5. Information Only
• What It Means:
Set up a website or online presence pure
details, new developments, or brand mes
• Why It’s Done:
○ Reinforces brand image and consume
○ Helps educate potential buyers and ch
○ Allows the manufacturer to maintain a
partners.
6. Direct to Consumer
• What It Means:
Develop an online sales platform that by
purchase directly from the manufacturer
• Why It’s Done:
ative product can command premium pricing and
distinctive, consumers will actively seek it out,
er awareness.
hannel partners about product benefits.
a digital presence without competing directly w
, and
stomers
demand.
roduct
with retail
nsumers to
• What It Means:
Develop an online sales platform that by
purchase directly from the manufacturer
• Why It’s Done:
○ Increases control over pricing, custom
○ Reduces reliance on retailers who mig
○ Offers a chance to build a direct relat
marketing).
7. Joint Venture or Partial Alliance
• What It Means:
Partner with a retailer, another manufac
expertise, or market reach. This can inc
on distribution.
• Why It’s Done:
○ Reduces risk and investment for each
○ Leverages each partner’s strengths—
or digital marketing.
8. Embrace Directness (Consumer Groups)
• What It Means:
Form or tap into “groups of consumers”
them collectively or in specialized online
• Why It’s Done:
○ Focuses on niche or community-base
strong.
○ Encourages group buying or subscrip
9. Go Fully Direct
• What It Means:
Abandon or significantly reduce reliance
ypasses traditional retail channels, allowing con
r.
h party.
—whether that’s manufacturing, retail distributio
sonalized
urces,
ollaborating
on, logistics,
ly selling to
th can be
al retail.
rtar retail)
9. Go Fully Direct
• What It Means:
Abandon or significantly reduce reliance
and shift almost all sales efforts to an el
• Why It’s Done:
○ Drastically cuts overhead associated
○ Provides maximum control over pricin
○ Some companies (and banks, as de Ka
to go digital-only.
10. Reinitialize and Buck the Trend
(Though not explicitly listed in the screens
“radical” approach.)
• What It Means:
Completely rethink or reinvent the busin
channels, the company might pivot to a f
• Why It’s Done:
○ Break away from industry norms and
○ Potentially leapfrog competitors by ad
○ If done successfully, can establish the
Key Takeaways
• Choice and Balance: There is no single
strategies based on their market, produc
• Power Shift: A core goal of these strate
manufacturers and retailers—particularly
marketplaces.
• Adaptability: As consumer preferences
to remain flexible and ready to pivot if a
e on conventional channels (like brick-and-mor
lectronic or online model.
competitive pressures.
dopting a unique value proposition or technolog
e manufacturer as a market leader or disruptor
or profitable
re-Silver’s
king
gy.
r.
oose
r.
s between
digital
turers need
ds.
manufacturers and retailers—particularly
marketplaces.
• Adaptability: As consumer preferences
to remain flexible and ready to pivot if a
ries
mers are empowered with more information and
prices, read reviews, and switch brands with mi
s or channels that connect businesses to their c
or eBay, social media platforms, affiliate netwo
mers and the intermediaries that facilitate the e
strategies.
els
hink their entire approach—from how they gene
Key changes include:
turers need
ds.
eting and
rience can
ucts (often
riences. It
can be
d choice than
inimal effort.
customers
orks).
exchange—
erate
erate and
ies.
○ Businesses must analyze how online m
decide whether to sell through them,
○ These marketplaces redefine compet
2. Radical Change to Business Models and
○ Traditional models (like selling only t
sufficient.
○ New revenue streams (subscription, f
goes digital.
3. Dialogues Drive Relationships:
○ With social media, chatbots, and othe
communication.
○ Ongoing “dialogues” help build trust,
4. Value Chains and Distribution Channels
○ Digital channels can bypass or replac
○ Companies can sell directly to consum
and retail partnerships.
5. New Avenues to Reach Audiences Onli
○ Beyond just a company website, busin
media ads, influencer marketing, affili
○ Each new channel offers unique ways
6. System and Control Mechanisms Open
○ Consumers now have more control ov
media commentary).
○ Businesses need to be transparent, re
7. Brand Equity Is Interactivity Driven:
○ A brand’s value increasingly depends
○ Interactive experiences—such as per
can significantly boost brand loyalty.
8. Outsourcing of Functions Form Virtual
○ Companies often outsource non-core
marketing) to specialized providers.
marketplaces (e.g., Amazon, Etsy, Alibaba) ope
compete with them, or partner with them.
tition, pricing, and customer acquisition strategi
d Revenue Models:
through brick-and-mortar stores) may no longe
er be
a company
y
and.
ns, logistics,
social
ews, social
reputation.
ne.
d content—
or digital
can significantly boost brand loyalty.
8. Outsourcing of Functions Form Virtual
○ Companies often outsource non-core
marketing) to specialized providers.
○ This can create a “virtual” business m
product design) while partnering with
4. Overall Takeaway: Digital Marketing
These points underscore that digital marke
reimagining how a company operates and h
ecosystem. By understanding the interplay
can create more resilient, innovative, and c
1. Affiliate Revenue
What It Is:
Affiliate marketing involves partnering with
your products or services. Affiliates earn a
sale, lead, or click—on your site.
Key Points:
• Performance-Based: You only pay affili
• Scalable: Easy to add or remove affiliate
• Common Payment Structures:
○ Cost Per Action (CPA): You pay only
○ Cost Per Click (CPC): You pay a sma
bout
olving digital
businesses
digital
promote
—such as a
.
○ Cost Per Click (CPC): You pay a sma
5. Freemium Models
all fee for each click driven to your site.
whether
advertiser’s
st.
scription
ed ethically
ssues and
ly giving
• Revenue Stream: Turning your user bas
• Data Ethics: Must be transparent with u
5. Freemium Models
What It Is:
A combination of “free” and “premium.” Ba
content require payment.
Common Uses:
• Online Software: Productivity apps, clou
• Publishing: Limited articles or content f
Key Points:
• Conversion Funnel: Freemium helps att
upgrade to paid plans.
• Brand Awareness: Offering something f
bscription.
e users
easier to
le, help
uiring
an be
aging
○ With affiliate marketing or user-gene
difficult.
○ In a freemium model, ensuring a good
upgrades can be tricky.
2. Data Privacy & Compliance:
○ Handling subscriber data or research
SPAM, etc.). Non-compliance can lea
3. Saturation & Competition:
○ Many markets are crowded with freem
or superior customer experience.
4. User Trust:
○ In pay-per-performance and affiliate
misleading promotions or spammy tac
Key Takeaway
Choosing the right online revenue model de
and long-term strategic goals. Most busine
freemium to attract users, affiliate marketin
to drive immediate conversions. Balancing
essential for sustainable digital marketing s
PR, CAN-
e features
sense
rvice nature,
—blending
rmance ads
nd trust, is
ten digital
rs. These
ormation
:
omparison
s, often
They bridge the gap between sellers and
tools, and even handling payment or logi
bypassing conventional distribution chan
• Types of Intermediaries:
○ Online Marketplaces: Platforms like
products and customers can compare
○ Affiliate Networks: Systems that con
when users perform a desired action
○ Comparison Websites: Sites that agg
make informed choices.
○ Social Platforms and Search Engines
often serve as key channels through w
• Benefits:
○ Increased Reach: Intermediaries can
difficult to reach directly.
○ Efficiency and Convenience: They o
comparing, and transacting.
○ Data and Insights: Intermediary platf
which can inform marketing and prod
• Challenges:
○ Control and Branding: When relying
over customer interactions and the ov
○ Margin Pressure: Intermediaries typi
margins.
○ Channel Conflict: Using intermediarie
to consumers.
In essence, intermediary models are a corn
leverage platforms that offer scale, efficien
presenting new challenges in managing con
ht be
ing,
ehavior,
control
reduce profit
sells directly
nesses to
e also
e distributed
leverage platforms that offer scale, efficien
presenting new challenges in managing con
e distributed
anked item.
tail” of many
h niche
can be
he titles
f lesser-
from the
interests.
off in a
cant place in
measuring
Below is a detailed explanation of each com
digital marketing performance:
1. Set Up Goals
• What It Means:
Define clear objectives for your digital m
submissions, purchases, newsletter sign
• Why It’s Important:
Having specific, measurable goals allows
determine the return on investment (ROI
2. Tag Different Media Channels
• What It Means:
Use tracking methods—such as UTM pa
website traffic. Each media channel (soc
• Why It’s Important:
Tagging helps you understand which cha
crucial for assessing the effectiveness o
“View-Through” / Post
• Last Click Wins:
This attribution model gives 100% of the
clicked before converting.
• Halo Effect / View-Through / Post-Imp
○ Halo Effect: Recognizes that previous
conversion, even if the final click was
mponent and how they relate to setting up and
pression Effect:
s exposures to your brand or ads can influence
sn’t from the same channel.
measuring
like form
ns, and
urce of your
ue tag.
s data is
”/
visitor
ea
clicked before converting.
• Halo Effect / View-Through / Post-Imp
○ Halo Effect: Recognizes that previous
conversion, even if the final click was
○ View-Through: Credits ads that were
conversion.
○ Post-Impression Effect: Similar to vi
later conversions.
• Why It’s Important:
These models acknowledge that custom
touchpoints. Relying solely on the last-c
awareness and drive the conversion ear
4. Banner Blindness
• What It Means:
Banner blindness is a phenomenon wher
because they are accustomed to them be
• Why It’s Important:
It poses a challenge for display advertis
placements, and targeting strategies to o
5. Conversion Behavior and Attribution Modeling
• The Statement:
"If more than three quarters of visitors c
Multi-Channel Funneling) is less importa
• What It Means:
When most conversions occur during the
channels before converting—the need fo
channels’ influence) diminishes. A simple
customer journey is relatively short and
pression Effect:
s exposures to your brand or ads can influence
sn’t from the same channel.
e seen (but not clicked) for their role in the ev
iew-through, it captures the impact of ad impre
ltiple
ped build
banner ads
rmats,
tention.
ling (or
multiple
multiple
ause the
channels before converting—the need fo
channels’ influence) diminishes. A simple
customer journey is relatively short and
• Why It’s Important:
In scenarios where the majority of sales
detailed multi-channel analysis may not
focus on optimizing that initial experienc
Overall Implications for Digital Marketing
• Goal Setting and Channel Tagging:
These are foundational steps to ensure y
• Attribution Models:
Understanding and choosing the right at
various channels and understanding the
• Overcoming Banner Blindness:
Marketers must continually test and inno
capture audience attention.
• Tailoring Attribution Complexity:
If your customer behavior shows quick,
be more efficient. However, if the journe
sophisticated multi-touch attribution mo
By integrating these elements, marketers c
optimizing campaigns, and ultimately drivin
urces on
ers can
credit to
es to
pproach may
ore
erformance,
nment.
and
s, and
business strategy. It was developed by PR
• Situation: Analyze where you currently
internal capabilities.
• Objectives: Define clear, measurable go
• Strategy: Develop an overall approach o
• Tactics: Identify the specific tools, chan
• Action: Plan the execution steps, assign
• Control: Set up monitoring and measure
adjustments.
In essence, SOSTAC provides a structured
ensure they align with business goals.
Below is an explanation of various custome
approaches that outline how consumers rec
els
mmend a product or service to others. It levera
onal recommendations, often leading to high-qu
fforts to
ng
ages word-
uality leads.
successful,
virus.
ct or service
entivizing
keting
he audience
Focuses on communicating with consum
messages. This approach builds trust an
is already interested.
• Facebook Open Graph:
A tool that allows third-party websites t
(with permission). It helps marketers tap
personalized engagements.
Customer Information Processing Models
Two influential models describe how consu
1. ALEA Model (Rossite
This model outlines a four-stage process in
• Attention:
The consumer first notices or becomes
• Learning:
The consumer processes and understand
the product or brand.
• Emotional Response:
The information triggers an emotional re
brand.
• Acceptance:
The consumer finally accepts or adopts
behavior (such as making a purchase).
2. Hofacker’s(EACYR) M
2001)
This model breaks down the digital consum
• Exposure:
The consumer is exposed to digital cont
• Attention:
mers who have explicitly agreed to receive mark
nd tends to yield higher engagement because th
ivity data
iving more
message:
dia post).
dge about
with the
ttitude or
,
This model breaks down the digital consum
• Exposure:
The consumer is exposed to digital cont
• Attention:
The content captures the consumer’s foc
• Comprehension & Perception:
The consumer not only understands the
and value.
• Yielding & Acceptance:
The consumer is persuaded by the mess
• Retention:
The information is stored in the consum
How These Models and Approaches Interconnect
• Integration in Digital Strategy:
Marketers use these models to design c
attention. For example, using permission
received by an engaged audience, while
• Customer Journey Mapping:
Both the ALEA and Hofacker models hel
exposure and attention to eventual acce
prospects through the sales funnel.
• Multi-Channel Coordination:
By understanding how consumers proce
different channels (like social media, em
stage of the customer journey.
These models and approaches collectively
messages are delivered, processed, and ac
targeted marketing strategies.
mer’s journey into more granular steps:
on.
and recall.
consumer
ns are
rom initial
nurture
tent across
at every
igital
ve and
messages are delivered, processed, and ac
targeted marketing strategies.
y,
d, it
with
brands, peers, and online communities. Her
1. Formulation (Stage 1)
• What Happens Here:
Consumers become aware of a need or w
looking for, often triggered by a problem
fulfill.
• Key Activities:
○ Awareness: The consumer recognize
○ Consideration: Initial research or cas
searches, word-of-mouth).
2. Pre-Commerce (Stage 2)
• What Happens Here:
Consumers refine their criteria, actively
a deeper, more deliberate consideration
• Key Activities:
○ Evaluation: Customers look at produc
○ Expertise & Advice: They may consu
guidance.
3. Commerce (Stage 3)
• What Happens Here:
The consumer decides on a product or s
• Key Activities:
○ Purchase: The transaction occurs—ei
○ Self-Expression & Feedback: Immed
excitement or initial impressions on s
4. Post-Commerce (Stage 4)
re’s a closer look at each element:
ir
○ Self-Expression & Feedback: Immed
excitement or initial impressions on s
4. Post-Commerce (Stage 4)
• What Happens Here:
After the purchase, the consumer exper
(or dissatisfaction) informs future behav
• Key Activities:
○ Experience: The product is used, and
○ Loyalty: Positive experiences can lea
may lead to returns, complaints, or ne
○ Feedback & Advocacy: Satisfied cust
the brand, or become advocates.
The Influence Loop (Center Circle)
• Why It’s Important:
Rather than a one-way path, consumers
Their opinions, reviews, and social med
customers in the Formulation and Pre-C
• Key Concepts:
○ Loyalists: Highly satisfied customers
○ Passives: Those who may remain neu
○ Detractors: Dissatisfied customers w
This “loop” underscores how brand percep
ongoing interactions and shared experience
Why the Journey Is “Dynamic”
1. Non-Linear:
Consumers can jump in or out at any sta
research more), or switch to a competito
2. Multiple Touchpoints:
diately after buying, some consumers share thei
social media.
on
es
nd
1. Non-Linear:
Consumers can jump in or out at any sta
research more), or switch to a competito
2. Multiple Touchpoints:
The journey involves social media, revie
recommendations, and more—creating n
3. Constant Influence:
Reviews, user-generated content, and s
affecting how new or returning custome
4. Evolving Customer Expectations:
Immediate access to information and rea
transparency, responsiveness, and perso
Key Takeaways for Marketers and Businesses
• Holistic Strategy:
Success requires a consistent brand exp
awareness to post-purchase support.
• Ongoing Engagement:
Retaining loyal customers and encourag
attracting new buyers.
• Adaptability:
Because the journey is dynamic, brands
adjusting messaging, and responding qui
conditions.
In short, the Dynamic Customer Journey e
an ongoing cycle of discovery, evaluation,
Businesses that understand and actively m
them together—are better positioned to att
interconnected marketplace.
age, revisit previous steps (e.g., going back to
or mid-journey.
ugh
ties
them together—are better positioned to att
interconnected marketplace.
s → Trial → Reinforcement
Andrew Ehrenberg, the ATR model offers a
mers adopt and continue using products compar
s (like AIDA). It posits three core stages:
he product or brand through advertising, word
of
r
s
and
by
ed
me
• Post-Trial Evaluation / Satisfaction:
Emphasizes that after trying the product
on actual experience. A positive outcom
may lead to brand switching.
• Advocacy / Word-of-Mouth:
In the digital era, satisfied consumers m
brand on social media, effectively becom
back into Awareness for new or potenti
• Ongoing Engagement:
Some models note that continual market
personalized offers) help sustain the Re
top-of-mind.
Overall, the Extended ATR Model retains
Reinforcement but acknowledges the broa
advocacy, and ongoing relationship-build
t, consumers form or adjust their attitudes base
me strengthens loyalty, while a negative outcom
eds
s
The Long Tail Pattern in the graph illustra
items (or keywords, products, websites, et
of “tail” items each have lower individual p
demand of those many less-popular items
matching or even exceeding the demand fo
what that means in practice:
1. Popularity of Keyword Phrases
• Head Keywords: A small set of very co
drive large volumes of traffic. These are
search advertising (PPC) or to rank for i
• Long-Tail Keywords: More specific or
arch support for marathon training”) eac
collectively represent a substantial porti
○ Implication: By optimizing for many r
ates that a relatively small number of “head”
tc.) are extremely popular, while a large numbe
popularity. However, the collective popularity o
in the tail can be quite significant—sometimes
or the top few items. Here’s a breakdown of
n
• Long-Tail Keywords: More specific or
arch support for marathon training”) eac
collectively represent a substantial porti
○ Implication: By optimizing for many r
capture significant traffic with less co
rates (since users searching niche ter
2. Popularity of Content
• Head Content: A few viral articles, vide
shares.
• Long-Tail Content: Thousands or millio
collectively attracting a large cumulative
○ Implication: Consistently producing a
help build a broad and loyal audience
“viral.”
3. Popularity of Items Purchased
• Bestsellers: A small number of products
sell in high volume.
• Niche Products: A large number of uniq
have low demand but can collectively m
in a marketplace with low distribution or
○ Implication: E-commerce platforms c
catering to many small niches. Amazo
the long tail in retail.
4. Popularity of Websites
• Major Websites: A handful of top sites (
massive global traffic.
• Long-Tail Sites: Countless smaller site
accounting for a large share of overall w
niche phrases (e.g., “blue running shoes with
ch have lower individual search volume, but
ion of total searches.
relevant long-tail keywords, marketers can
ompetition and potentially higher conversion
rms often have a clearer purchase intent).
t
n
s)
ch
ed
ely
massive global traffic.
• Long-Tail Sites: Countless smaller site
accounting for a large share of overall w
○ Implication: Niche sites can thrive by
marketers can tap into these smaller
Key Takeaways
1. Opportunity in the Tail: By focusing onl
might miss the cumulative potential of th
2. Reduced Competition & Higher Relevan
competition and more specific user inten
3. Digital Advantage: Online platforms red
feasible to offer (or optimize for) a wide
4. Analytics & Optimization: Understandin
incremental growth helps refine content
In short, the Long Tail concept highlights t
“insignificant”—when aggregated, these m
surpass the demand for the small number o
es, each attracting fewer visitors, but collective
web usage.
y serving specialized interests. Advertisers and
audiences to reach highly targeted segments.
t
These diagrams illustrate different commu
senders (S), messages (M), and consumer
one-way (from one source to many receive
many-to-many exchanges. Here’s a breakd
(a) One-to-Many (Traditional Mass Communic
• How It Works:
○ A single source (S) sends out multiple
(C1, C2, C3).
○ Communication flows outward from o
• Real-World Example:
○ TV or Radio Broadcast: One station (
unication models and how messages flow betwe
rs (C). In traditional media, communication is m
ers). In contrast, the internet enables more dyn
down of each model:
cation Model)
sumers
ts.
large
(C1, C2, C3).
○ Communication flows outward from o
• Real-World Example:
○ TV or Radio Broadcast: One station (
audience (consumers).
○ Newspaper: One publisher distributes
• Key Characteristic:
○ Limited Feedback Loop: Typically, th
consumers back to the source.
(b) Multiple Messages or Sources, Still One-W
• How It Works:
○ There may be more than one source
but the overall flow is still primarily o
○ Each source controls its own messag
• Real-World Example:
○ Multiple Broadcasters: Several TV c
audiences.
○ Different Print Publications: Various
distinct consumer groups.
• Key Characteristic:
○ Parallel One-Way Streams: Consume
communication remains top-down.
(c) Many-to-Many (Internet or Networked Mo
• How It Works:
○ Multiple sources (S) and multiple con
medium in the middle.
○ The internet enables two-way or eve
sender, a receiver, or both (for exam
one central point (the source) to many recipient
Way
odel)
large
from
tc.),
ntent to
ng or
to, but
rnet
n be a
ed
○ Multiple sources (S) and multiple con
medium in the middle.
○ The internet enables two-way or eve
sender, a receiver, or both (for exam
content platforms).
• Real-World Example:
○ Social Media Platforms: Users can p
content from others (acting as consum
○ Forums / Discussion Boards: Multipl
networked conversation.
• Key Characteristic:
○ Interactive and Decentralized: Comm
interact directly with sources and wit
Why These Models Matter
1. Shift in Power Dynamics:
○ In the traditional one-to-many model
power over what content is distribute
○ In the internet model, consumers gain
become creators or influencers thems
2. Marketing and Communication Strategy
○ Model (a) & (b): Marketers often rely
audience feedback.
○ Model (c): Marketers engage in dialo
influencer marketing, and user-gener
3. Feedback Loops:
○ The internet model fosters immediate
brands, media outlets, and individuals
Overall, these diagrams underscore how te
one-way broadcast to a collaborative netw
habits to marketing strategies.
Below is a comprehensive summary of Mar
sumers (C) are all connected through the inter
en many-to-many communication. Anyone can
mple, via social media, forums, or user-generate
n be a
ed
me
ing a
n
es.
cant
an also
mited
s.
ma
umption
ts" that
Overall, these diagrams underscore how te
one-way broadcast to a collaborative netw
habits to marketing strategies.
Below is a comprehensive summary of Mar
starts with the basics and then moves into
Basics: Who Are Digital Natives and Digital Immigra
• Digital Natives:
These are individuals (from kindergarten
digital technology—computers, video ga
they were born into the digital world, th
information quickly in ways that are diff
• Digital Immigrants:
These are the people who were not born
of its tools. They tend to retain aspects
often referred to as a “digital immigrant
step, linear learning and often rely on pr
digital interfaces.
Intermediate Concepts: The Impact on Learning and
• Different Thinking Patterns:
Digital Natives process information diffe
and are used to non-linear navigation (li
presentations. Their learning environme
they think, solve problems, and even how
• Mismatch in Teaching Methods:
Many educators are Digital Immigrants w
traditional, methodical teaching styles (f
step learning) often don’t resonate with
disengagement, as students find the met
interactive pace they expect.
echnology has transformed communication from
work, influencing everything from media consu
d Communication
ts" that
nded by
ause
d many
ating—
-by-
through
ssing,
ia
how
me.
ep-by-
traditional, methodical teaching styles (f
step learning) often don’t resonate with
disengagement, as students find the met
interactive pace they expect.
• Cultural and Generational Divide:
Digital Natives naturally gravitate towar
accustomed to receiving information thr
and the Internet—methods that provide r
contrast, Digital Immigrants are more co
life, which can feel slow and less engagi
Advanced Ideas: Implications for Education and Bey
• Revisiting Educational Content:
Prensky argues that traditional “legacy”
be reassessed in the context of the digit
that encompass digital literacy, technolo
curricula. This rethinking is essential for
• New Methodologies:
The article suggests that to engage Digi
they teach but how they teach it. This m
○ Game-based learning: Creating comp
educational content, similar to how th
approach (e.g., The Monkey Wrench C
○ Non-linear, multimedia approaches:
information, parallel processing, and t
traditional textbooks or lectures.
• The Immigrant “Accent” and Its Effects
Digital Immigrants’ reliance on old metho
instructions, or using analog ways of lea
barrier to effective teaching and commu
about different preferences—it could im
• Future of Learning:
focused on lectures, printed textbooks, and ste
Digital Natives. This mismatch leads to
thods outdated and out of sync with the rapid,
s:
ods (like printing emails, following sequential
arning) is viewed as an “accent” that can create
unication with Digital Natives. This gap is not ju
mpact how information is internalized and proces
ep-by-
hey’re
aging,
ier in
eds to
ubjects
ted into
rld.
hat
mbed
game
ss to
y on
ea
ust
ssed.
instructions, or using analog ways of lea
barrier to effective teaching and commu
about different preferences—it could im
• Future of Learning:
As digital technologies continue to evolv
emphasizes that educators and institutio
them. The success of future learning de
native language of today's students.
• Broader Cultural Shifts:
Beyond education, the distinction betwe
broader shifts in how society communica
Understanding these differences is cruc
government, and other sectors.
In Summary
Marc Prensky’s article challenges tradition
(Digital Natives) have fundamentally differe
compared to older generations (Digital Imm
both teaching methods and educational con
multimedia approaches, educators can bette
digital future, while Digital Immigrants mus
between the two groups.
This layered understanding—from basic de
reform—offers a roadmap for transforming
arning) is viewed as an “accent” that can create
unication with Digital Natives. This gap is not ju
mpact how information is internalized and proces
ensky
n resist
the
cts
kplace,
nts
on
k in
d, and
r the
ps
nal
.