DIGITAL MARKETING & ESSENTIALS

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DIGITAL DIGITAL DIGITAL
MARKETIN CONSUME LANDSCAP
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DIGITAL DIGITAL
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DIGITAL 1
MARKETING
Module 1: Fundamentals of Digital Marketing
• Digital Marketing Concepts
• Data, Information and Systems
• Digital Media Channels
• Marketing in the New Economy
• Marketing Strategies
• Branding
 Digital Marketing
DEFINITION

"Digital marketing can be described as actively promoting products and services using
digital distribution channels as an alternative to the more traditional mediums such as
television, print and radio” Business Dictionary

“Digital Marketing is the application of the Internet and related technologies in conjunction with
traditional communications to achieve the marketing objectives.” (Chaffey & Ellis-Chadwick,
2012).
Caddell (2013) defines „Digital‟ as “a participatory layer of all media that allows users to self-
select their own experiences, and affords marketers the ability to bridge media, gain
feedback, iterate their message, and collect relationships.”
In other words, digital is a new way of exploring content (for users) and connecting
with customers (for marketers).
Objectives/Uses of Digital Marketing

• Increase revenue
• Build brand awareness
• Market your product or service
• Decrease cost
• Improve efficiency
• Increase productivity
• High return on investment
• Identify loyal customers
Digital Marketing & Essentials

Advantages of Digital Marketing

i) Cost Effective
ii) Real time results
iii) Pay Per Click (PPC)
iv) Targeting
v) Measurable results
vi) Conversion rates
vii) Easy Interface
viii) Global reach
ix) Personalization
x) Openness
xi) Social currency 6
Digital Marketing & Essentials

Advantages of Digital Marketing: Cost Effective

Digital marketing is economical and most effective way to promote your business as compared
to traditional marketing. With limited budget you can create content & start your campaign. A
properly planned and well targeted digital marketing campaign can reach the right customers at
a much lower cost than traditional marketing methods.

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Digital Marketing & Essentials

Advantages of Digital Marketing: Real time results

The moment your ad is live, you can view the performance. Additionally, edits can be done in
real time. This way a businessman/company can understand the situation and take necessary
action.

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Digital Marketing & Essentials

Advantages of Digital Marketing: Pay Per Click (PPC)

PPC stands for Pay Per Click. It is a model where the advertiser pays the publisher each time
their ad is clicked. Google Ads, Bingo, Yahoo is the best and easiest platform for PPC.

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Digital Marketing & Essentials

Advantages of Digital Marketing: Targeting

In case of traditional marketing there is no way to determine the number and the type of people
who saw your billboard. With digital marketing it is not easy to target audience based on their
interest, location, behavior etc. You can create an audience based on your business model and
push your ad to the right consumers.

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Digital Marketing & Essentials

Advantages of Digital Marketing: Measurable results

Measuring a company’s/businessman’s online marketing with web analytics and other online
metric tools makes it easier to establish how effective the campaign has been. Any
businessman/company can obtain detailed information about how customers use its website or
respond to company’s advertising. A company / businessman will get the most accurate &
realistic data that will help him in reaching its goals as well forecast its future sales.

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Digital Marketing & Essentials

Advantages of Digital Marketing: Conversion rates

It’s much simpler to get conversion online as the customer views the ad & takes action. If a
businessman or a company have a website, then its customers are only ever a few clicks away
from making a purchase. Unlike other media which require people to get up and make a phone
call, or go to a shop, digital marketing can be seamless and immediate.

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Digital Marketing & Essentials

Advantages of Digital Marketing: Easy Interface

Setting up ad accounts, building a website, managing social media have become straightforward
and clear-cut with easy user interface.

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Digital Marketing & Essentials

Advantages of Digital Marketing: Global reach

A website allows a businessman/company to find new markets and trade globally with only a
small investment.

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Digital Marketing & Essentials

Advantages of Digital Marketing: Personalization

If your customer database is linked to your website, then whenever someone visits the site, you
can greet them with targeted offers. The more they buy from you, the more you can refine your
customer profile and market effectively to them.

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Digital Marketing & Essentials

Advantages of Digital Marketing: Openness

By getting involved with social media and managing it carefully, you can build customer loyalty
and create a reputation for being easy to engage with.

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Digital Marketing & Essentials

Advantages of Digital Marketing: Social currency

Digital marketing lets you create engaging campaigns using content marketing tactics. This
content (images, videos, articles) can gain social currency - being passed from user to user and
becoming viral.

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Digital Marketing & Essentials

Disadvantages of Digital Marketing

i) Privacy/security
ii) Ad blockers
iii) Time consuming
iv) High competition
v) Complaints and feedback

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Digital Marketing & Essentials

Disadvantages of Digital Marketing: Privacy/ Security

• Privacy is one of the biggest concern when it comes to Digital
channels. When you click on a product on an e-commerce
website, you see the same product following you in most of
the website/social media channels (re-marketing/re-targeting)
This is done through cookies. As an Internet user, being aware
of how this is targeted will help a user.
• There are a number of legal considerations around collecting
and using customer data for digital marketing purposes. A
company/businessman should take care to comply with the
rules regarding privacy and data protection.
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Digital Marketing & Essentials

Disadvantages of Digital Marketing: Ad blockers

• Ad blocking or ad filtering is a type of software
that can remove or alter advertising content from
a webpage, website, or a mobile app.
• (Note:- A cookie is a small piece of data sent
from a website and stored on the user's computer
by the user's web browser while the user is
browsing. Cookies were designed to be a reliable
mechanism for websites to remember stateful
information or to record the user's browsing
activity.)
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Digital Marketing & Essentials

Disadvantages of Digital Marketing: Skills and training

A company/businessman will need to ensure that their staff have the right knowledge and
expertise to carry out digital marketing with success. Tools, platforms and trends change
rapidly and it’s vital that a company/businessman should keep up-to-date.

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Digital Marketing & Essentials

Disadvantages of Digital Marketing: Time consuming

Tasks such as optimizing online advertising campaigns and creating marketing content can take
up a lot of time. It’s important a company/businessman to measure its results to ensure a return-
on-investment.

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Digital Marketing & Essentials

Disadvantages of Digital Marketing: High competition

While a company/businessman can reach a global audience with digital marketing, it is also has
to face global competition. It can be a challenge to stand out against competitors and to grab
attention among the many messages aimed at consumers online.

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Digital Marketing & Essentials

Disadvantages of Digital Marketing: Complaints and feedback

Any negative feedback or criticism of a company/businessman brand is/can be visible to its
probable/new customer or audience through social media and review websites. Carrying out
effective customer service online can be challenging. Negative comments or failure to respond
effectively can damage a company/businessman’s brand reputation.

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Digital Marketing & Essentials

Traditional Vs. Digital Marketing

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Digital Marketing & Essentials

Traditional Vs. Digital Marketing

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 CHARACTERISTICS OF DIGITAL
A key principle of digital marketing is to create an easy, seamless and convenient user
experience for target audiences. It establishes an ongoing, automated relationship
between brands and their audience, thereby, reducing the consumer‟s effort needed to act
on digital content.

GLOBAL REACH INTERACTIVITY FLEXIBILITY 24/7/365

The Internet being a global Unlike some of the traditional Digital marketing enables Most services exist only at the time
network, digital marketing can marketing channels, digital communication through multiple of their production and they
be practiced across the marketing communications channels, variety of formats and provide temporary possession or
world. are interactive and real-time. can be personalised to each access instead of ownership.
user. Services cannot be stored.
TYPES OF DATA

Nominal (Gender, Hair Colour, Ethnic group),

Ordinal (income, airline class, exam grades)

Discrete (number of customers, units sold),

Continuous (price of product, Internet speed)

%
Master (Customer data, price list, product data,
employee, bank account)
Transaction (Sales invoice, bank payment,
customer orders, rail ticket)
 DIGITAL FORMATS
Structured Data
Semi structured Data

Audio Visual Data

Documents and
Records

Unstructured Data.
Textual Data
 INFORMATION SYSTEMS

BIG DATA
The information assets characterised by Expert
high volume, velocity and variety to require Systems
specific technology and analytical (Dashboards Online Analytical
methods
, AI) Processing (OLAP)
for its transformation into value.

DATA WAREHOUSE
A central repository of integrated Reports, Analytical Systems
data from one or more disparate (BI, Analytics, DSS)
sources used for reporting and data
analysis. Online Transaction
Processing
DATABASE
An organised collection of
(OLTP)
Transaction Processing Systems
data, generally stored and
accessed electronically in an
(ERP, PoS)
IT system.
 DIGITAL INFRASTRUCTURE
Architecture
Most modern firms use a 3-tier architecture for their
systems with Servers, Database and Applications.
Web services have compelled systems architects to
adopt a Service-oriented Architecture (SOA).

Networks
• Local Area Network (LAN) connecting devices to
data
servers through hubs, switches and routers.
• Internet backbone includes optic fibre networks, last
mile connectivity is provided through DSL, VPN.
Mobile services 4G LTE, Wi-Max and Satellite
communication technology fulfil wide area networking.
Data Management
• Cloud and data management services have enabled
outsourcing of data storage.
• Servers that are commonly hosted in cloud are Web
Servers, Application Servers, Mail Servers.
 ERP

Web Development Customer

Analytics

Database Servers

Customer
Access

Network

DIGITAL Digital Marketing

ARCHITECTURE
DIGITAL MEDIA CHANNELS
Uses of Digital Channels
• Educating & engaging with potential users
• Increase website traffic
• Providing customized and targeted ad
• Providing valuable information about any product/service/ideas
• Building trust
• Customer reviews
• Grow online community
Affiliate
marketing
• Affiliate marketing is an advertising model
in which a company compensates third-
party publishers to generate traffic or leads
to the company's products and services. The
third-party publishers are affiliates, and the
commission fee incentivizes them to find
ways to promote the company.
• Affiliate marketing allows the brand to
market towards smaller publishers, and
websites with smaller traffic.
Affiliate marketing

• Affiliate marketing is perceived to not be considered a safe, reliable and easy means of marketing
through online platform. This is due to a lack of reliability in terms of affiliates that can produce
the demanded number of new customers. As a result of this risk and bad affiliates it leaves the
brand prone to exploitation in terms of claiming commission that isn't honestly acquired. Legal
means may offer some protection against this, yet there are limitations in recovering any losses or
investment.
Display • As the term implies, online display advertising deals with

advertising  showcasing promotional messages or ideas to the consumer on

the internet.

• This includes a wide range of advertisements like advertising

blogs, networks, interstitial ads, contextual data, ads on the

search engines, classified or dynamic advertisement etc.

• The method can target specific audience tuning in from

different types of locals to view a particular advertisement, the

variations can be found as the most productive element of this

method.
 Email marketing 
• Email marketing in comparison to other forms of digital marketing is
considered cheap; it is also a way to rapidly communicate a message such as
their value proposition to existing or potential customers.

• Yet this channel of communication may be perceived by recipients to be

bothersome and irritating especially to new or potential customers, therefore
the success of email marketing is reliant on the language and visual appeal
applied.
Search engine
marketing 
Search engine marketing (SEM) is a form
of Internet marketing that involves the
promotion of websites by increasing their
visibility in search engine results pages
(SERPs) primarily through paid
advertising. SEM may incorporate 
Search engine optimization, which adjusts
or rewrites website content and site
architecture to achieve a higher ranking in
search engine results pages to enhance pay
per click (PPC) listings.
Social Media
Marketing 
• The term 'Digital Marketing' has a number of
marketing facets as it supports different channels
used in and among these, comes the Social
Media. When we use social media channels
( Facebook, Twitter, Pinterest, Instagram,
Google+, etc.) to market a product or service,
the strategy is called Social Media Marketing.
• It is a procedure wherein strategies are made and
executed to draw in traffic for a website or to
gain attention of buyers over the web using
different social media platforms.
Social Networking
Service

A social networking service is an online

platform which people use to build social
networks or social relations with other people
who share similar personal or career interests,
activities, backgrounds or real-life connections
 In-game
advertising 

• In-Game advertising is defined as "inclusion of products or brands within a digital game. 

• The game allows brands or products to place ads within their game, either in a subtle manner or in the form of an advertisement banner.

• There are many factors that exist in whether brands are successful in their advertising of their brand/product, these being: Type of game,

technical platform, 3-D and 4-D technology, game genre, congruity of brand and game, prominence of advertising within the game.

• Individual factors consist of attitudes towards placement advertisements, game involvement, product involvement, flow or entertainment.

The attitude towards the advertising also takes into account not only the message shown but also the attitude towards the game.
In-game
advertising 

• Dependent of how enjoyable the game is will determine how the brand is perceived, meaning if the game isn't

very enjoyable the consumer may subconsciously have a negative attitude towards the brand/product being

advertised.

• In terms of Integrated Marketing Communication "integration of advertising in digital games into the general

advertising, communication, and marketing strategy of the firm" is an important as it results in a more clarity

about the brand/product and creates a larger overall effect.

 Video
advertising

• This type of advertising in terms of digital/online means are advertisements that play on online videos e.g.
YouTube videos.
• This type of marketing has seen an increase in popularity over time. 
• Online Video Advertising usually consists of three types: Pre-Roll advertisements which play before the
video is watched, Mid-Roll advertisements which play during the video, or Post-Roll advertisements which
play after the video is watched. 
• Post-roll advertisements were shown to have better brand recognition in relation to the other types
 Social Media
DEFINITION

"Social media is the biggest aspect of Digital Marketing. Most of us have some footprint on social
media platforms. It allows us connect with like minded individuals/groups, share ideas and build
professional network. On a business level websites like Face-book & Instagram help to engage
with the real time customer, provide valuable information and reach out to a huge audience at
minimal costs.”
 Social Media
Advantage of Social Media
1. Free Business page/channel— Creating a business page on Facebook, Instagram, Twitter is
not only easy but its absolutely “FREE”!
2. Paid Ads— To reach out to target audience all social media channels requires paid ads.
3. Social Media Advertisement— SMA is a straightforward and effortless way to target a wide
audience, increase profitability & reach business goals.
4. Influencers Endorsement— Influencer marketing has gained a huge momentum due to digital
channels. It has become a career path for many through endorsements and reviews.
5. Email— Email marketing plays a key role too. It’s way to stay connected & updated about the
latest buzz in the market, your favorite brands, closing transaction deals etc.
 CRM in Digital Marketing
1. Customer Selection-— Who do you target? ,What value do they bring to your objectives? , What is
their lifecycle? , Where do we find these customers?
2. Customer Acquisition— Focus on the right segments and target them ,Minimize acquisition costs ,
Make customer relationship and service quality a priority ,Approach the appropriate platforms
3. Customer retention— Know customers’ needs individually in order to develop a good e CRM
strategy ,Offer value continuously in order to retain online interest and improve customer
relationship ,Focus on delivering service quality to the utmost standard ,Choose the right channels for
your strategy
4. Customer extension— Recognize the customer’s relationship interest and respond , “Cross Sell”
and “Up Sell” , Service Quality , Use appropriate platforms/channels
 Benefits of E-CRM
• Gather and combine customer information into a unified picture
• Response faster and accurately
• Build customer loyalty
• Due to the introduction of new technology
• Due to globalization
• Changing customer attitudes and expectations
• To gain competitive advantage
• To measure, create and increase income for the business
• To reduce costs
 Why E-CRM?
• Gather and combine customer information into a unified picture
• Response faster and accurately
• Build customer loyalty
• Due to the introduction of new technology
• Due to globalization
• Changing customer attitudes and expectations
• To gain competitive advantage
• To measure, create and increase income for the business
• To reduce costs
 Top Customer Filtering In E-commerce

• Abandoned Checkout
• Added to cart but don’t complete the transaction
• Continue shopping but still do not make any transaction
• Completed Transaction
• Last seen
• First Seen
Five Benefi ts of a Customer Database
• Today’s customers want to buy from businesses they know
Create and love. When armed with a customer database, you
have the ability to build brand affinity by sending out
Brand marketing emails to people that have opted to receive
them. Reaching out to customers by sharing new products,

Affinity special offers or company news can help them feel

connected to your business and nurture a relationship of
trust.

• A customer database allows your business to identify the most

Develop loyal and profitable customers. You’ll be able to target and give
the red carpet treatment to this segmented audience. An effective
way to reach these customers is through email marketing that
Custome takes the preferences of the customer into account. This engages
customers, building further brand loyalty, and can inspire them to
r Loyalty share your brand with friends and family. Not to mention, sending
them special discounts and offers is a great way to encourage new
purchases.
Five Benefi ts of a Customer Database
Provide • Happy customers equal good business. Database marketing allows you to
develop a stronger relationship with your customers. Having information
Better like buying behavior, post-purchase feedback and reviews allows
businesses to take a consumer-centric approach to customer service.
Customer Keeping up to date with the wants of your customer base allows the
insight necessary to personalize communication so you can serve them
Service better.

Direct • One of the key benefits of a customer database is that it is a collection of

Channel actual customers that have purchased from you in the past. The foremost
benefit of leveraging these names is that because they are verified

to customers, they are already interested in your product or service. The

desire to purchase from your business is higher than it would be if you
were prospecting for new customers.
Customers
Five Benefi ts of a Customer Database

• Rolling out new products to a small segment of your

audience is a great way to test the water before
launching it on a wider scale. You can target an
Launchin audience based on information from your customer
database.
g New • Selecting a group of your most trusted customers can
allow a business to gather constructive feedback that
Products can help improve later versions of the product.
Keeping a pulse on what customers think and want is
a great way to enhance the products you offer and
how you offer them.
 MARKETING IN A NEW ECONOMY
Data in text, pictures, or sound are
Digitalisation getting converted into a digital form that
can be processed by a computing device.
Products, including services are being modified
Customisation to suit the unique needs of customers rather
than providing standard products.
Advancements in communications technology
Connectivity has increased connectivity with a wider
reach and thicker density.
New Realities The use of websites and apps to interact and
of Social Networking find people with similar interests has resulted
in creation of virtual communities.
Marketing
Modern companies are organising
Environment Target Segments themselves on the basis meeting the needs
of different customer groups instead of
product lines.
Industries such as information technology,
Convergence communications, media and entertainment
are overlapping.
People who are online activists, have impact
Influencers due to large following, have new thoughts
and can set trends to benefit a campaign.
 MARKETING TRIANGLE
CUSTOMER

Customer Service,
Advertising, Media
Call centres, CRM,
Campaign, Publicity
Social Media

COMPANY or EMPLOYEE or
MARKETER Internal Communication SALESPERSON
Standard Processes,
Training, Reporting

Source: Adapted from Mary Jo Bitner, Christian Gronroos, & Philip

Kotler
Digital tools in digital format

Visual Vs. textual format-

• Crowd sourcing,
• crowd funding,
• micro-tasking
 CROWDSOURCING

• Crowdsourcing is the act of involving your audience in the process of digital content creation.  
• It’s an effective way to drum up interest in your digital posts and drive the results you want from
your posts
• It was coined in 2006. As a mode of sourcing, crowdsourcing existed prior to the digital age (i.e.
"offline").
• When businesses crowdsource, they ask the public for ideas, information, and opinions to help
them craft better products and services. By crowdsourcing, companies can tap into a huge group of
people's expertise and skill sets, ensuring diversity of thought, expedited production, and cost-
cutting, since they don't need to hire new, in-house employees. Ex: Airbnb, PepsiCo, website
99designs, Wikipedia , GitHub
 CROWDSOURCING: METHODOLOGY

• Companies who crowdsource usually break massive projects into individual tasks, which allows
them to assign hundreds or thousands of people small jobs that they can work on by themselves
• Common categories of crowdsourcing can be used effectively in the commercial world, including
crowdvoting, crowdsolving, crowdfunding, microwork, creative crowdsourcing, crowdsource
workforce management, and inducement prize contests.
 CROWDSOURCING Vs OUTSOURCING

• Crowdsourcing comes from a less-specific, more public group, whereas outsourcing is

commissioned from a specific, named group, and includes a mix of bottom-up and top-down
processes. Advantages of using crowdsourcing may include improved costs, speed, quality,
flexibility, scalability, or diversity.
 Crowd Sourcing Sites:

• Fiverr, Upwork, CrowdSource, Contently, Skyword, Patreon, Thoughtexchange, Fundable  (business

crowdfunding), Indiegogo (product crowdfunding), Kickstarter (project crowdfunding),
GoFundMe (cause crowdfunding)
Crowd Sourcing Jobs:

Marketing Administrative Research Jobs

Writing Virtual assistant Information gathering
Videography Customer service Price checking
Design Usability testing Product display checking
Photography Audio transcription Business location verification
Animation Social media post categorization Web research
Web development Image and video processing Google searching
Mobile development Image categorization Odd Jobs
Making deliveries
Editing Jobs Data Jobs Cleaning
Copy editing Data entry Dog walking
Content evaluation Data research Survey taking
Content moderation Data categorization
Proofreading Data processing
Data verification and clean up
 Case Study: PepsiCo

"Do Us a Flavor" campaign by PepsiCo for its Lay's brand.

In fact, starting in 2012, PepsiCo has held a "Do Us a
Flavor" contest in numerous countries every few years.
With this contest, consumers can suggest ideas for new
chip flavors. The brand has received millions of ideas for
the contest throughout the years.

To promote the contest, Lay's will use social media to

gather submissions and garner votes from the public. This
contest has resulted in flavors such as "Cheesy Garlic
Bread," "Kettle Cooked Wasabi Ginger," and "Southern
Biscuits and Gravy."
 Guidelines to start with Crowdsourcing

Determine your goal – It’s crucial to figure out what your ultimate goal is before crowdsourcing
your next big social media post.  You’ll need to determine who you want to reach out to and how to
do it.
Understand your chosen crowd – After determining the goal of your crowdsourcing post, it’s time
to start refining your crowd.  It’s important to understand your crowd – including their interests,
where they source their information from and where they spend most of their time online.
Create a reach-out strategy – To execute a crowdsourcing strategy effectively it’s important to
actually connect with your chosen crowd.  You’ll need to do some research to find out what
interests them enough to respond to your post.
Create and post – Keeping in mind the content gained from your crowdsourcing interaction you
are now ready to promote to the masses.  Using your feedback, you are ready to post, remember to
include your list as they will likely share it among their networks as well.
 Limitations and Controversies

• Impact of crowdsourcing on product quality

• Entrepreneurs contribute less capital themselves
• Increased number of funded ideas
• The value and impact of the work received from the crowd
• The ethical implications of low wages paid to crowdworkers
• Trustworthiness and informed decision making
 Crowd-funding

• Crowdfunding is the process of funding projects by a multitude of people contributing

a small amount to attain a certain monetary goal, typically via the Internet. 
• Crowdfunding has been used for both commercial and charitable purposes.  Instead of
looking for investors to fund a project, crowdfunding allows people to raise money
through an online platform.
• A person might make a video describing the project they want to fund and post a link
to that video on a social media site. If all goes well, that person’s contacts will not only
give money but also share the link to the video, encouraging their contacts to give
money as well.
• The crowdfunding model that has been around the longest is rewards-based
crowdfunding. This model is where people can prepurchase products, buy experiences,
or simply donate.
 Crowdfunding

While this funding may in some cases go towards helping a business, funders are not
allowed to invest and become shareholders via rewards-based crowdfunding.

• They connect to the greater purpose of the campaign, such as being a part of an
entrepreneurial community and supporting an innovative idea or product.
• They connect to a physical aspect of the campaign like rewards and gains from
investment.
• They connect to the creative display of the campaign's presentation.
• They want to see new products before the public.
 Types of Crowdfunding

• Rewards crowdfunding: entrepreneurs presell a product or service to launch a

business concept without incurring debt or sacrificing equity/shares.
Ex: motion picture promotion, free software development, inventions development,
scientific research, and civic projects.

• Equity crowdfunding: the backer receives shares of a company, usually in its early
stages, in exchange for the money pledged.
Ex: Syndicates Crowdfunding is expected to reach US$1 trillion in 2025.
 Benefits

• Profile – a compelling project can raise a producer's profile and provide a boost to their reputation.

• Marketing – project initiators can show there are an audience and market for their project. In the
case of an unsuccessful campaign, it provides good market feedback.

• Audience engagement – crowdfunding creates a forum where project initiators can engage with
their audiences. An audience can engage in the production process by the following progress
through updates from the creators and sharing feedback via comment features on the project's
crowdfunding page.

• Feedback – offering pre-release access to content or the opportunity to beta-test content to project
backers as a part of the funding incentives provides the project initiators with instant access to good
market testing feedback.
 Benefits

Financial Benefits –
• For one, crowdfunding allows creators to attain low-cost capital. Traditionally, a
creator would need to look at "personal savings, home equity loans, personal credit
cards, friends and family members, angel investors, and venture capitalists." With
crowdfunding, creators can find funders from around the world, sell both their
product and equity, and benefit from increased information flow.
• Additionally, crowdfunding that supports pre-buying allows creators to obtain early
feedback on the product. 
• Another potential positive effect is the propensity of groups to "produce an
accurate aggregate prediction" about market outcomes as identified by the author 
James Surowiecki in his book The Wisdom of Crowds, thereby placing financial
backing behind ventures likely to succeed.
 Risks for Creators & Investors

Reputation – failure to meet campaign goals or to generate interest results in a public failure.
Reaching financial goals and successfully gathering substantial public support but being
unable to deliver on a project for some reason can severely negatively impact one's
reputation.
Intellectual property (IP) protection – many Interactive Digital Media developers and
content producers are reluctant to publicly announce the details of a project before
production due to concerns about idea theft and protecting their IP from
plagiarism. Creators who engage in crowdfunding are required to release their product to the
public in early stages of funding and development, exposing themselves to the risk of copy
by competitors.
Donor exhaustion – there is a risk that if the same network of supporters is reached out to
multiple times, that network will eventually cease to supply necessary support.
 Risks for Creators & Investors

Public fear of abuse – concern among supporters that without a regulatory framework, the
likelihood of a scam or an abuse of funds is high. The concern may become a barrier to public
engagement.

Lack of participation - It is seen that some stories are more likely to get picked up than
others based on the story. It is easy to get support if you "just tell a story."
 Risks for Creators & Investors

• Some research in social psychology indicates that, like in all investments, people don't
always do their due diligence to determine if it is a sound investment before investing,
which leads to making investment decisions based on emotion rather than financial
logic. By using crowdfunding, creators also forgo potential support and value that a single
angel investor or venture capitalist might offer.
• Likewise, crowdfunding requires that creators manage their investors. This can be time-
consuming and financially burdensome as the number of investors in the crowd
rises. Crowdfunding draws a crowd: investors and other interested observers who follow
the progress, or lack of progress, of a project.
• Sometimes it proves easier to raise the money for a project than to make the project a
success. Managing communications with many possibly disappointed investors and
supporters can be a substantial, and potentially diverting, task.
 India's Top 10 Crowdfunding Platforms

• Rang De. Co-founders: Smita Ram and Ram N. ...

• Faircent. Co-founders: Rajat Gandhi, Vinay Matthews, Nitin Gupta. ...
• Ketto. Co-founders: Kunal Kapoor, Varun Sheth and Zaheer Adenwala.
• Wishberry. Co-founders: Priyanka Agarwal, Anshulika Dubey. ...
• FuelADream. Founder: Ranganath Thota. ...
• Catapooolt. Founder: Satish Kataria. ...
• CovidMaps is a crowdsourced platform with information regarding the stores near you,
list of things available, operational timings and more.
• A group of over 20 Bengaluru techies worked on the project as a not for profit initiative.
• India is now the world’s second-largest internet market with more than 342 million
mobile users and online payment options that make it easy to give money,
says Bloomberg.
 Micro-tasking

• Microtasking is the process of splitting a large job into small tasks that can be
distributed, over the Internet, to many people. 
• Since the inception of microwork, many online services have been developed that
specialize in different types of microtasking. Most of them rely on a large, voluntary
workforce composed of Internet users from around the world.
• Typical tasks offered are repetitive but not so simple that they can be automated.
Good candidates for microtasks have the following characteristics:
• They are large volume tasks
• They can be broken down into tasks that are done independently
• They require human judgement
 Benefits

Flexibility
• Microtaskers take on small tasks that cannot yet be automated, and are distributed over the
internet to microtaskers all over the world.
• Microtasking is often seen in a similar light to other forms of gig work — as a way to work
flexible hours or fill in salary gaps.
• The beauty of microtasking is its flexibility in almost every area. In fact, all that is needed is a
good internet connection. The rest is for the microtasker to decide — he can set up his own
work environment wherever he wishes to, create his own working hours, select the tasks he
would like to complete, and work as often or as little as he likes.
• He gets paid per task and everything can be completed in the comfort of his own home. This
means that even in the scenario of a nationwide lockdown, work still continues. It would now
also be possible for a stay-home parent to earn an income while taking care of his or her
children.
 Benefits

Low barriers to entry

The internet has a huge range of microtask websites, which caters to the skills and abilities of
every microtasker in the market. Such websites include Amazon Mechanical Turk, Fiverr and
Clickworker, just to name a few. The tasks offered include taking surveys, watching videos,
creating logo designs, copyediting, testing apps, amidst a wide range of skills. No matter the
gender, race, socio-economic status, age, anyone is able to contribute based on their
interests and skills. With each task just being at the fingertip of the microtasker, these low
barriers to entry make it easy for anyone to participate. With the wide ranges of
opportunities to choose from, the only consideration on the part of the microtasker is
choosing which task to take.
 Benefits

Wide range of opportunities:

With the growth in the microtasking economy, there are now many opportunities for
career paths which were previously limited in capacity. Microtaskers have a new way to get
their foot in the door by first starting out as a microtasker, as a way to bootstrap new skills.
They can increase their skill sets by completing a varied range of micro tasks, or choose to
specialise and become an expert in one specific area. Gone are the days of a frantic scurry
to find a job if the traditional employment falls through. Not only do microtaskers have a
wider range of options, they are also exposed to higher quality tasks. The rise in these on-
demand, microtasking style employment helps to take some stress out of job hunting, by
providing microtaskers with a sustainable source of income and allowing them the space
and time to find the best fit of employment for themselves.
Ex: Vodi x
 Crowd-voting

Crowd-voting occurs when a website gathers a large group's opinions and judgments on a
certain topic.
• The Iowa Electronic Market is a prediction market that gathers crowds' views on politics
and tries to ensure accuracy by having participants pay money to buy and sell contracts
based on political outcomes.
• Most famous use of social media channels: Domino's Pizza, Coca-Cola, Heineken, and Sam
Adams have thus crowdsourced a new pizza, bottle design, beer, and song, respectively. 
• Threadless.com selects the T-shirts it sells by having users provide designs and vote on the
ones they like, which are then printed and available for purchase.

Crowdvoting's value in the movie industry was shown when in 2009 a crowd accurately
predicting the success or failure of a movie based on its trailer, a feat that was replicated in
2013 by Google.
 Micro-tasking
examples
Amazon Mechanical Turk allows workers to choose and perform simple tasks online,
reporting directly through the platform to receive payments in exchange. A task can be
as complex as algorithm writing or as simple as labelling photos or videos, describing
products, or transcribing scanned documents. Employers submit tasks and set their
own payments, which are often pennies for each task. This crowdsourcing project was
initiated by Amazon as a way for users to find duplicate webpages, and soon it
became a service for individuals to contract computer programmers and other
individuals to finish tasks that computers are unable to accomplish. Since then this
project has expanded from its original form; nowadays, there are people who will
complete various Mechanical Turk projects as extra income on the side.
 Micro-tasking
examples
LiveOps uses a distributed network of people to run a "Cloud Call Center", a
virtual call center or contact center: contracted workers can answer calls and
provide other call center facilities without the need for the physical building or
equipment of a traditional call center. The Red Cross used this system
successfully during Hurricane Katrina in 2005, to process 17,000+ calls without
having to open or hire staff for a call center.[8]
A similar model is used by text message question-answering services
like 63336. Researchers connect with the service at home and receive questions
as they are submitted.
 Micro-tasking
examples
InnoCentive allows businesses to post problems and offer payment for answers.
These questions are often far less simple than tasks posted on services like
Mechanical Turk, and the payments are accordingly higher. For example: "Think
you can find a way to prevent orange juice stored in see-through bottles from
turning brown? There may be $20,000 in it for you."
 Micro-tasking
examples
Samasource is a non-profit organization that allows people living in poverty the
opportunity to complete microwork for a living wage. The service specializes in
online content moderation, digital transcription, and data gathering and
promotion.
 Micro-tasking
examples
Galaxy Zoo is a scientific effort to use online crowdsourcing to classify a very
large number of galaxies from astronomical images.
In 2010, the company Internet Eyes launched a service where in return for a
potential reward, home viewers would watch live CCTV streams and alert shop
owners of potential theft in progress.
 Digital tools in digital format

The intensity of the rivalry depends on the

market structure and competitive environment
Bargaining
Threat of
Power of New entrants disrupt the market with innovation
Substitutes
Customer and pricing strategies, that can be a threat to the
incumbent players.

Substitute businesses can be a threat since

Rivals they may sway away the customers with
products from a different industry.
Bargaining Threat of
Power of Industries in which customers have the
New
bargaining power will be difficult to compete
Suppliers entrants
on price. Differentiation strategy is necessary.

Markets with strong suppliers with

bargaining power will put constraints on
costs, thereby squeezing profit margins.
NICHE Vs MASS MARKETING
 MARKET SEGMENTATION
Geographic segments can be
countries, regions, continents, urban-
rural, sub-cultural zones.
Demographic segmentation can be
made on the basis of age, gender,
family, income.
Psychographic/ Behavioral
segments are based on personality,
MARKET motives, attitude, lifestyles, benefits.
SEGMENT TARGET MARKET
SIZE
SHARE
Steps in Segmentation Process
1. Identify customer segment.
2. Develop measures for attractiveness.
3. Develop profile of customers.
 NICHE-MARKETING

• Targeting a product or service at a small segment of a

larger market
• Niche marketing is where a business concentrates on
a small segment of the market
• This is often used by small companies as it is a way of
avoiding competition who may not be interested in
such a small segment
• E.g. Gardening magazines, Science fiction books
 NICHE-MARKETING: ADVANTAGES

• Less competition
• Costs – little scope for cost reduction
• Small-scale production
• Tailor-made products
• Targeting customers effectively
 NICHE-MARKETING: DISADVANTAGES

• Lower profits
• Changes in demand (more
vulnerable)
• Market entry – larger firms
attracted into the market
 MASS MARKETING

• Aiming a product at all (or most) of the market

• Mass marketing strategies aim the strategy at
the whole market
• This is generally used by larger companies
whose products appeal to everyone
• E.g. Ariel washing powder, TV magazines,
Bestsellers
 MASS MARKETING: ADVANTAGES

• Large-scale production
• Economies of scale
• Higher profit margins
• High revenues
• Create barriers to entry for small firms
• Research & development
• Brand awareness
 MASS MARKETING: DISADVANTAGES

• High fixed capital costs

• Changes in demand
• Capacity problems
• Effects of standardization
• Competition – more vulnerable to low-
cost competition from abroad
• Adding value – less scope
 PRODUCT DIFFERENTIATION

• The degree to which consumers see a particular brand as

being different from other brands
• This is how businesses make their products stand out
from the competition
• They can use USPs – unique selling points to differentiate
their products
• By differentiating products you are able to charge a
premium price
• Differentiated products are often aimed at specific
market segments as they have the features they desire
PRODUCT DIFFERENTIATION: BENEFITS

• Increased sales volume

• Greater scope for charging a
higher price
 MASS MARKET HOW DO YOU
DIFFERENTIATE?
• Design, branding, packaging
• Clever promotional & advertising campaigns
• Different distribution methods
• NB – through employing elements of the marketing mix
 FIVE FORCES OF DIGITAL
The intensity of the rivalry depends on the
market structure and competitive environment
Bargaining
Threat of
Power of New entrants disrupt the market with innovation
Substitutes
Customer and pricing strategies, that can be a threat to the
incumbent players.

Substitute businesses can be a threat since

Rivals they may sway away the customers with
products from a different industry.
Bargaining Threat of
Power of Industries in which customers have the
New
bargaining power will be difficult to compete
Suppliers entrants
on price. Differentiation strategy is necessary.

Markets with strong suppliers with

bargaining power will put constraints on
costs, thereby squeezing profit margins.
 MARKETING MIX - 7Ps
Product Price
Strategy depends on the Economy or premium pricing Product
Product Lifecycle, design, for the long-term.
brand and packaging. Penetrative or skimming for
short-term. Physical Price
Place Promotion
Distribution channel and
Choosing an ideal mix from
location determine access
advertising, discounts, PR,
to the customers. Marketing
direct and personal selling.
Strategy
People Process
In marketing of services,
Process Place
Design and delivery of
the persons delivering the services will
provide tangibility and determine customer
experience. satisfaction.
Physical
Customer perceptions are People Promo
fulfilled best with physical
evidence of the experience
of intangible services.
 PUSH vs. PULL MARKETING
PUSH PULL

• Multiple segments, mass audience. • Targeted niche segments

• Customers are not actively seeking content, but • Customers are actively seeking marketing
find material placed by marketers. content.
• Classified as outbound marketing. • Classified as inbound marketing.
• Requires large networks platforms. • Search engines, blogs, informative
• Email spams, display ads and pop-up ads. websites
• Social media campaigns designed to attract and community forums are primary
wide audiences to trends and hypes. sources.
• Interruption marketing is a push strategy. • Subscriber based online services can pull
niche traffic to marketing content.
• Permission marketing is used as pull
 BRAND
DEFINITION

"Brand is a name, term, design, symbol or any other feature that identifies one seller's
good or service as distinct from those of other sellers” American Marketing
Association

Branding is a set of marketing and communication methods that help to distinguish

a company or products from competitors, aiming to create a lasting impression in the
minds of customers.
“Brand is, in essence, a promise to its customers of what they can expect from
products and may include emotional as well as functional benefits.” - Ghodeswar B.,
(2008)
 CONSUMER BASED BRAND EQUITY
Relationships
Brand Loyalty, Fan
What about you and
me?
RESONANCE

Response
Brand preferences
What about
JUDGMENT FEELINGS you?

Points of Parity and Points of Meaning

Difference, Brand Consideration What are
PERFORMANCE IMAGERY you?

Identity
Awareness Who are
SALIENCE you?

Source: "Strategic Brand Management: Building, Measuring, and Managing Brand Equity" by Kevin Lane Keller.