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What is Digital Marketing? How it will help to create second income stream?
Before getting into Digital Marketing we need to know some basic details about Digital Marketing. So now the 1st thing we should know What is Digital Marketing? The simple answer to this question is Digital marketing encompasses all marketing efforts that use an electronic device or the internet. Businesses leverage digital channels such as search engines, social media, email, and other websites to connect with current and prospective customers.
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
- Identifying – the internet can be used for marketing research to find out customers’ needs and wants
- Anticipating – the Internet provides an additional channel by which customers can access information and make purchases – evaluating this demand is key to governing resource allocation.
- Satisfying – a key success factor in achieving customer satisfaction through the digital channel, which raises issues such as: is the site easy to use, does it perform adequately, what is the standard of associated customer service and how are physical products dispatched?
It is important to remember that, despite digital marketing using different communications techniques to traditional marketing. But the end objectives of Digital Marketing are no different from the objectives that marketing has always had. It can be easy to set digital objectives based around ‘vanity metrics’ such as the number of ‘likes’ or followers, so it is useful to bear in mind this definition of marketing advanced by the Chartered Institute of Marketing:
’Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably’.
This definition emphasizes the focus of marketing on the customer while at the same time implying a need to link to other business operations to achieve this profitability. Yet, it’s a weak definition in relation to digital activity since it doesn’t emphasize communications which are so important to digital activity.
Market segmentation can help you to define and better understand your target audiences and ideal customers. If you’re a marketer, this allows you to identify the right market for your products and then target your marketing more effectively. Similarly, publishers can use market segmentation to offer more precisely targeted advertising options and to customize their content for different audience groups.
- 1. Geographic Segmentation: Geographic location is one of the simplest methods of segmenting the market. People living in one region of the country have to purchase and consuming habit which differs from those living in other regions. For example, lifestyle products sell very well in metro cities, e.g., Mumbai, Delhi, Kolkata and Chennai but do not sell in small towns. Banking needs of people in rural areas differ from those of urban areas. Even within a city, a bank branch located in the northern part of the city may attract more clients than a branch located in the eastern part of the city.
- 2. Demographic Segmentation: Demographic variables such as age, occupation, education, sex and income are commonly used for segmenting markets.
- (a) Age: Teenagers, adults, retired.
- (b) Sex: Male and female.
- (c) Occupation: Agriculture, industry, trade, students, service sector, house-holds, institutions.
- (i) Industrial sector: Large, small, tiny.
- (ii) Trade: Wholesale, retail, exporters.
- (iii) Services: Professionals and non-professionals.
- (iv) Institutions: Educational, religions, clubs.
- (v) Agriculture and cottage industries.
- (d) Income Level: Above Rs. 1 lakh per annum, Rs. 50,000 to Rs. 1 lakh, Rs. 25,000 to Rs. 50,000 per annum
- (e) Family Life-cycle: Young single, young married no children, a young married youngest child under six, young married youngest child over six, older married with children, older married no children under eighteen, older single, etc.
- 3. Psychographic Segmentation: Under this method, consumers are classified into market segments on the basis of their psychological make-up, i.e., personality, attitude and lifestyle. According to attitude towards life, people may be classified as traditionalists, achievers, etc. Rogers has identified five groups of consumer personalities according to the way they adopt new products:
- (а) Innovators: These are cosmopolitan people who are eager to try new ideas. They are highly venturesome and willing to assume the risk of an occasional bad experience with a new product.
- (b) Early Adopters: These are influential people with whom the average person checks out an innovation.
- (c) Early Majority: This group tends to deliberate before adopting a new product. Its members are important in legitimising an innovation but they are seldom leaders.
- (d) Late Majority: This group is cautious and adopts new ideas after the innovation has received public confidence.
- (e) Laggards: These are past-oriented people. They are suspicious of change and innovations. By the time they adopt a product, it may already have been replaced by a new one. Understanding of psychographics of consumers enables marketers to better select potential markets and match the product image with the type of consumer using it. For example, women making heavy use of bank credit cards are said to lead an active lifestyle and are concerned with their appearance. They tend to be liberated and are willing to try new things.
- 4. Behavioristic Segmentation: In this method, consumers are classified into market segments not the basis of their knowledge, attitude and use of actual products or product attributes. Any of the following variables might be used for this purpose:
- (а) Purchase Occasion: Buyers may be differentiated on the basis of when they use a product or service. For example, air travellers might fly for business or vacation. Therefore, one airline might promote itself as a business flyer while another might target the tourists.
- (b) Benefits Sought: The major benefit sought in a product is used as the basis of classifying consumers. High quality, low price, good taste, speed, sex appeal are examples of benefits. For example, some air travellers prefer economy class (low price), while others seek executive class (status and comfort).
- (c) User Status: Potential buyers may be classified as regular users, occasional users and non-users. Marketers can develop new products or new uses of old products by targeting one or another of these groups.
- 5. Volume Segmentation: Consumers are classified light, medium and heavy users of a product. In some cases, 80 per cent of the product may be sold to only 20 per cent of the group. Marketers can decide product features and advertising strategies by finding common characteristics among heavy users. For example, airlines having ‘Frequent Flyer’ are using user rate as the basis of market segmentation. Generally, marketers are interested in the heavy user group.
- 6. Product-space Segmentation: Here the buyers are asked to compare the existing brands according to their perceived similarity and in relation to their ideal brands. First, the analyst infers the latent attributes that consumers are using to perceive the brand. Then buyers are classified into groups each having a distinct ideal brand in mind. The distinctive characteristics of each group are ascertained.
- 7. Benefit Segmentation: Consumer behaviour depends more on the benefit sought in product/service than on demographic factors. Each market segment is identified by the major benefits it is seeking. Most buyers seek as many benefits as possible. However, the relative importance attached to individual benefits differs from one group to another. For example, some consumers of toothpaste give greater importance to freshness while others prefer taste or brightness of teeth.
The 5Ds of digital marketing
The 5Ds define the opportunities for consumers to interact with brands and for businesses to reach and learn from their audiences in different ways:
- [i] Digital Devices – audiences experience brands as they interact with business websites and mobile apps typically through a combination of connected devices including smartphones, tablets, desktop computers, TVs and gaming devices.
- [ii] Digital Platforms – most interactions on these devices are through a browser or apps from the major platforms or services, that’s Facebook (and Instagram), Google (and YouTube), Twitter and LinkedIn.
- [iii] Digital Media – different paid, owned and earned communications channels for reaching and engaging audiences including advertising, email and messaging, search engines and social networks.
- [iv] Digital Data – the insight businesses collect about their audience profiles and their interactions with businesses, which now needs to be protected by law in most countries.
- [iv] Digital Technology – the marketing technology that businesses use to create interactive experiences from websites and mobile apps to in-store kiosks and email campaigns.
Digital Marketing Assets
Almost anything can be a digital marketing asset. It simply needs to be a marketing tool you use online. That being said, many people don’t realize how many digital marketing assets they have at their disposal. Here are just a few examples:
- (a) Your website
- (b) Branded assets (logos, icons, acronyms, etc)
- (c) Video content (video ads, product demos, etc)
- (d) Images (infographics, product shots, company photos, etc)
- (e) Written content (blog posts, eBooks, product descriptions, testimonials, etc)
- (f) Online products or tools (SaaS, calculators, interactive content, etc)
- (g) Reviews
- (h) Social media pages
As you can probably imagine, this list just scratches the surface. Most digital marketing assets will fall into one of these categories, but clever marketers are constantly coming up with new ways to reach customers online, so the list keeps growing!
Digital Marketing Strategies
The list of digital marketing strategies is also constantly evolving, but here are some of the strategies most businesses are using:
- 1. Pay-Per-Click Advertising: Pay-per-click (PPC) advertising is actually a broad term that covers any type of digital marketing where you pay for every user who clicks on an ad. For example, Google AdWords is a form of PPC advertising called “paid search advertising” (which we’ll go over in a second). Facebook Ads are another form of PPC advertising called “paid social media advertising” (again, we’ll get into that shortly).
- 2. Paid Search Advertising: Google, Bing and Yahoo all allow you to run text ads on their Search Engine Results Pages (SERPs). Paid search advertising is one of the best ways to target potential customers who are actively searching for a product or service like yours.
- 3. Search Engine Optimization (SEO): If you don’t want to pay to show up in the SERPs, you can also use search engine optimization (SEO) to try and rank pages or blog posts on your site organically. You don’t have to pay directly for every click, but getting a page to rank usually takes quite a bit of time and effort.
- 4. Paid Social Media Advertising: Most social media platforms like Facebook, Instagram, Twitter, LinkedIn, Pinterest and Snapchat will allow you to run ads on their site. Paid social media advertising is great for building awareness with audiences that might not be aware that your business, product or service exists.
- 5. Social Media Marketing: Like SEO, social media marketing is the free, organic way to use social media platforms like Facebook or Twitter to market your business. And, just like SEO, organically marketing your business on social media takes a lot more time and effort, but in the long run, it can deliver much cheaper results.
- 6. Conversion Rate Optimization (CRO): Conversion rate optimization (CRO) is the art and science of improving your online user experience. Most of the time, businesses use CRO to get more conversions (leads, chats, calls, sales, etc) out of their existing website traffic.
- 7. Content Marketing: Content marketing is another fairly broad digital marketing term. Content marketing covers any digital marketing effort that uses content assets (blog posts, infographics, eBooks, videos, etc) to build brand awareness or drive clicks, leads or sales.
- 8. Native Advertising: Ever get to the bottom of an article and see a list of suggested articles? That’s native advertising. Most native advertising falls under content marketing because it uses content to attract clicks (“you’ll never believe what happens next!”). Often, native advertising can be a bit hard to spot, since it is usually mixed in with non-paid content recommendations…but that’s kind of the point.
- 9. Email Marketing: Email marketing is the oldest form of online marketing and it’s still going strong. Most digital marketers use email marketing to advertise special deals, highlight content or promote an event.
- 10. Affiliate Marketing: Affiliate marketing is essentially paying someone else (a person or a business) to promote your products and services on their website.