Fundamentals of digital marketing, 2 e

Media Consumption Drivers for New MarketingEnvironment Digital Marketing Channels: Types and Business Models Digital Marketing Applications and Benefits Internet Marketing: Underlying Te

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Fundamentals of Digital Marketing

SECOND EDITION

Puneet Singh Bhatia

Director, Marketing Axtria Inc.

Gian Dhyaan Kich Karam Na Jaana

(Shri Guru Granth Sahib - Page 750)

I know of no bigger karma than the knowledge of truth.

LinkedIn India: Identity that Matters

MakeMyTrip: Profiting from Experiences Info Edge India: The Story of Real Jobs

One97 Communications: No Cash, No Corruption!

Preface to the Second Edition

Preface to the First Edition

Acknowledgements

About the Author

UNIT I BASICS OF DIGITAL MARKETING

Chapter 1 Introduction to Digital Marketing

Evolution of Digital Marketing

From Traditional to Modern Marketing

Rise of the Internet: The Dotcom Era

Post Dotcom: Creation of Internet Business Models

Growth of ‘E’ Concepts: from Business to Advanced Commerce

E-Digital—The Next Wave of Marketing

Digital Marketing: An Introduction

Emergence of Digital Marketing as a Tool

Media Consumption Drivers for New Marketing

Environment

Digital Marketing Channels: Types and Business

Models

Digital Marketing Applications and Benefits

Internet Marketing: Underlying Technology and

Frameworks

Internet Basics—Internet/Intranet/Extranet/Portals Understanding Web and Wireless Technologies

Reshaping Interactions: Profit

Individuals/Businesses/Non-Opportunities and Challenges to Internet Marketing

Digital Marketing Framework

Delivering Enhanced Customer Value

Market Opportunity Analysis and Digital Services Development

ASCOR Digital Marketing Framework

Application of Digital Marketing

Critical Success Factors for Digital Marketing

Chapter Summary

Review Questions

Digital Application Exercises

Chapter 2 Digital Marketing Models Creation

Factors Impacting Digital Marketplace

From Brick and Mortar to Bricks and Clicks

Growth of Interactive Platforms

The New Network Economy

From Marketspaces to Marketplaces

Changing Sales and Customer Service Patterns

Value Chain Digitization

Understanding Value Chain Functions

Key Value Chain Process: A Basic Understanding

Value Chain Elaboration: A Case of Journal Publishing Emergence of Digitized Value Chain

Digital Marketing Business Models

Understanding Digital Value Elements

Digital Value-Led Marketing Approach

Digital Marketing Models Creation

Application of Digital Marketing Models

Chapter Summary

Review Questions

Digital Application Exercises

Chapter 3 The Consumer for Digital Marketing

Consumer Behavior on the Internet

Evolution of Consumer Behavior Models

Impact of Digital Technology on Consumer Behavior Attributes of Online Buying Behavior

Influence of the Web Experience

Marketing Intelligence from User’s Online Data

Managing Consumer Demand

Understanding Consumer Demands

Demand-Led Product Development Process

Brand Building on the Web

Web-Tracking Audits and Forecasting

Integrated Marketing Communications (IMC)

Basics of Integrated Marketing Communications (IMC) Channels for Integrated Marketing Communications Four Pillars of the IMC Construct

Impact of Digital Channels on IMC

Practical Exercise

Chapter Summary

Review Questions

Digital Application Exercises

UNIT II DIGITAL MARKETING STRATEGY

DEVELOPMENT

Chapter 4 Digital Marketing Assessment Phase

Elements of the Assessment Phase

Marketing Strategy and its Digital Shifts

The Assessment Phase Elements

Macro-Micro Environment Analysis

Marketing Situation Analysis

Digital Marketing Internal Assessment

Analyzing Present Offerings Mix

Marketing Mix Analysis

Internal Resource Mapping

Core Competencies Analysis

Digital Marketing Objectives Planning

Digital Presence Analysis

Digital Presence Analysis Matrix

Digital Marketing Objectives Development

Digital Marketing Objectives Review

Practical Exercise

Chapter Summary

Review Questions

Digital Application Exercises

Chapter 5 Digital Marketing Strategy Definition

Digital Marketing Strategy Groundwork

Understanding Digital Business Strategy

Emerging Digital Business Structures

Digital Core Competency Alignment

Customer Development Strategy (STP 2.0 Framework)

Defining the Digital Marketing Mix

Offering Mix for Digital

Digital Pricing Models

Channels of Purchase—Reaching the E-Consumer

Managing Promotional Channels

Developing the Extended Ps- People, Process, Programs, and Performance

Digital Marketing Strategy Roadmap

Developing Digital Marketing Strategy Roadmap

The 6S Digital Marketing Implementation Strategy PLC Concept—Marketing across the Product Life Cycle

Practical Exercise

Chapter Summary

Review Questions

Digital Application Exercises

UNIT III DIGITAL MARKETING PLANNING AND SETUP

Chapter 6 Digital Marketing Communications and Channel Mix

Digital Marketing Planning Development

The Media Planning Shift to Digital

Understanding Digital Media Planning Terminology Digital Media Planning Stages

Investment Analysis and Planning for Marketing RoI

Designing the Communication Mix

Marketing Communications: from Mass Market to

Mass Customized

Steps to Creating Marketing Communications Strategy Developing Communications Messaging

Communication Mix across Digital Channels

Introduction to Digital Marketing Channels

Intent-Based Marketing (Search Marketing)

Brand-Based Marketing (Display Marketing)

Community-Based Marketing (Social Media Marketing)

Partner, Direct, Content, and Platform-Based

Marketing Channels

Practical Exercise

Chapter Summary

Review Questions

Digital Application Exercises

Chapter 7 Digital Marketing Operations Set-up

Understanding Digital Marketing Conversion

Basics of Lead Generation and Conversion Marketing Lead Nurturing and Lead Scoring Concepts

Setting up for Conversion: from Web-Page to Landing Page

Lead Management across Channels—Owned, Earned, and Paid

Basics of Web Development and Management

Pre-Planning for Web Development

Website Development Stages

Developing Site Diagrams and Wireframes

Website Content Development and Management

User Experience, Usability, and Service Quality Elements

Understanding Elements of User Experience Implementation of Interaction Design

Understanding Web Usability and Evaluation Measuring Service Quality Elements

Practical Exercise

Chapter Summary

Review Questions

Digital Application Exercises

UNIT IV DIGITAL MARKETING EXECUTION

Chapter 8 Digital Marketing Campaign

Management

Basic Elements of Digital Campaigns

Basic Elements of Digital Campaign Management

Campaign Planning and Budgeting

Campaign Set-up and Launch

Campaign Monitoring to Reconciliation

Implementing Intent-Based Campaigns (SearchExecution)

Search Campaign Planning Basics

SEM Campaign Set-up and Execution

SEO Basics and Management

Implementing Brand-Based Campaigns (Display

Execution)

Display Campaign Management Basics

Emerging Data-Driven Display Models (Programmatic and RTB)

Rich Media Ad Campaign Management

Campaign Execution for Emerging Marketing Models

Content Marketing (Cornerstone of Emerging

Marketing Models)

Community-Based Campaigns (Social Media Execution)

Campaigns for Partner, Communication, and Based Marketing

Platform-Campaign Analytics and Marketing RoI

Basics of Web Analytics

Understanding KPIs

Introduction to Google Analytics

Web Analytics 2.0: Developing a Marketing Analytics Framework

Marketing Implementation RoI

Digital Marketing Refinement Phase

Practical Exercise

Chapter Summary

Review Questions

Digital Application Exercises

Chapter 9 Digital Marketing Execution Elements

Managing Digital Marketing Revenue

Digital Revenue Generation Models

Customer Loyalty Management in the Digital Era

Rise of Relationship Marketing: Turning Loyalists to Advocates

Driving Advocates through Customer Experience

Managing Service Delivery and Payment

Understanding Electronic Payment Systems

Emerging Digital Payments Solutions

Managing Digital e-Services (Setting up Digital

Services Unit)

Selling through Cybermediaries

Managing Digital Implementation Challenges

Understanding E-commerce Implementation

Challenges

Internal Challenges: Business and Infrastructure External Challenges: Legal and Compliance

Consumer-Specific Security, Privacy, Ethical, and Social Challenges

Practical Exercise

Chapter Summary

Review Questions

Digital Application Exercises

UNIT V DIGITAL BUSINESS - PRESENT AND FUTURE

Chapter 10 Digital Marketing-Landscape and

Emerging Areas

Digital Marketing—Global Landscape

Digital Marketing Overview—Global Spend

Digital Marketing Overview—Advertising Spend

Conceptualizing Digital Marketing Landscape

Digital Marketing Technology/Tools Landscape

Digital Marketing—The Indian View

India Digital Spend Overview

India Digital Advertising Spend

Key Digital Advertising Trends in India

India Digital Marketing/Advertising Tools Landscape

Digital Marketing—Emerging Trends and Concepts

Big Data and IoT—Data Technologies Impacting

Digital Application Exercises

Chapter 11 A Career in Digital Marketing

Emerging Opportunities for Digital Marketing

Professionals

The Changing Role of CMOs in Organizations

Building a Career in Digital Marketing

Top Digital Marketing Areas as Career Tracks Approaching a Career in Digital Marketing

Chapter Summary

Bibliography 1

Bibliography 2

Index

Preface to the Second Edition

One and half years is not a long time Yet it would seem an eternity if we start processing the changes that the digital marketing

landscape has witnessed in this short span of time In 2017, we started witnessing the

phenomenon of influencer marketing, which

no one anticipated would grow so much Voice marketing, which was earlier limited to in-

device experimentation, has gained

mainstream traction in the past two years

with Amazon and Google bringing it to our

homes GDPR, an initiative with global

ramifications, became a reality, thanks to the proactiveness of the Eurpoean Union and

their earnestness in ensuring consumer

privacy Growth hacking and conversion

optimization concepts emerged from a

buzzword status to reality with firms

deploying in-house teams for execution.

The first edition of Fundamentals of Digital Marketing was an attempt to capture and

showcase the changing Indian landscape of digital marketing to an audience that had

always viewed this academic field from an

external (non-Indian) lens or through the eyes

of online training modules that skimmed

through multiple digital marketing channels and platforms without explaining the building blocks constituting this multi-disciplinary

well since the launch of the first edition.

With the Fundamentals of Digital

Marketing having established itself as a prime

text among both management students and first-time learners of digital marketing, it was time we felt that new elements should be

added to make the text even more beneficial Here are a few highlights of the second edition

that students, professors, readers, and

entrepreneurs should find worth noting:

Inclusion of Practical Exercises across digital marketing

assessment and strategy phases including consumer

analysis, market trend assessment, and competitive

research

Implementation exercises on developing owned media andearned presence along with executing paid promotions

Project brief towards understanding and implementing

multiple marketing analytics techniques deployed acrossthe digital marketing landscape

Introduction of a new section on Google Analytics (GA) tohelp upcoming marketers gain a view of why GA is one ofthe most preferred analytics tools for marketers to

understand website actions, engage better with visitors andanalyze campaign data

Inclusion of digital marketing trends (that gained

prominence in 2018) including voice marketing,

micro-influencers, GDPR, growth hacking and conversion rate

India at the moment.

I would like to share my gratitude to Varun Goenka (Senior Editor – Acquisition) for his unwavering support in taking the title to the next level A big thanks to Amrita Marik

(Senior Editor – Development) for her

painstaking efforts in pulling the second

edition together and the entire Pearson team for ensuring that the book reaches and

influences the best of academic and corporate settings.

I am looking forward to a similar reception

to the second edition as the first one Do share any input or feedback with either the Pearson Editorial team or directly with me, and it

would always be great to hear back from all of you.

Warm Regards,

Puneet Singh Bhatia

Email: puneet.bhatia@axtria.com

Preface to the First Edition

Digital marketing is all about the challenge of balancing both the sides of the marketing

wheel while walking tightrope on the rim On one side lies any marketer’s owned media

(websites, apps, social media pages) while the other represents the ever-changing demands and perceptions of his target customer And this is just the start of the balancing act; one which extends across an advertiser and a

publisher’s needs, between CPM (Cost per mile) and CPC (Cost per click) and extends to measuring data and managing privacy

concerns The list is endless and so are the solutions available in the market.

It is these complexities and choices that

make digital marketing unique and render a distinct flavor to this field of study This book aims at helping both digital marketing

enthusiasts and practitioners discern such

nuances to make informed decisions right

from digital marketing environment

assessment and strategy development to

marketing operations till refinement.

One of the key endeavors of authoring this title was to develop a textbook on Digital

Marketing in India which starts from base

zero and explains the key fundamentals to

those new to the subject This book will act as

a primer not only for management students but also media professionals, marketing

managers, brand marketers, budding

entrepreneurs and even individuals looking to create a personal brand online and

understand the basics of digital marketing

concepts, tools, and techniques from up.

grounds-So why should you consider this text for

academic, corporate, or personal needs?

While there are many international texts

available on multiple constituent areas of

digital marketing like search, social, display, mobile, video marketing, etc., a need was felt

for an India-specific standard text which lays the foundation for the genesis of digital

marketing, explains the transition from

traditional ‘E-marketing’ to ‘Digital

Marketing’ and presents an integrated digital marketing framework to move step by step towards creating a digital presence, and

finally benefitting from it.

Fundamentals of Digital Marketing

provides unique features along the following lines:

Outlines the move from ‘E-marketing’ to ‘Digital

Marketing’: This is one of the first marketing titles in India

which moves beyond the ‘E-marketing’ plank to cover thenew digital paradigm which is in essence a movement from:

1 ‘Traditional Channels’ marketing to purely ‘Digital

Provides a detailed orientation to Digital Transformation:

To understand ‘digital’ as a concept and establish its

importance for marketing, in the beginning of the textbookitself (Chapter 2) we have provided an extensive orientation

to ‘digital transformation’ to help students/business

owners/entrepreneurs realize how they can best digitize

any traditional business at hand through ‘Digital MarketingModels’ and identify key ‘Digital Value Elements’

Showcases industry deployable frameworks: This title has

been written in a manner which would help readers to

deploy digital marketing concepts across each aspect of

their industry, and be realistically ready to market each

product digitally

Details concepts through topical Case Studies of Indian

businesses: Each chapter starts with a case study on a

prominent India-born or global India-based business,

traverses through the company’s growth in digital

marketing, key challenges faced and lessons the reader canlearn from their business story

Includes Digital Application exercises on Indian brands: At

the end of each chapter, application exercises on key digitalmarketing concepts (pertaining to each chapter) have beenprovided, for students to self-assess their concepts and alsoapply them to brands which they have seen around/grownwith in India since the last decade

Devotes a complete chapter to careers in digital

marketing: The last chapter of the book is devoted

specifically to the kind of jobs available in the market andhow to approach those career tracks Once the reader hasmastered the concepts in all preceding chapters, he/she

would know exactly the areas where he can look to be

employed across digital marketing

Coming to the structure of the book, this book has been covered across eleven chapters

which form a part of five core units as follows:

UNIT I (Basics of Digital Marketing): The first part

introduces the reader to the basics of digital marketing, itsunderlying technologies and frameworks and establishesthe ASCOR digital marketing framework It further delvesinto defining the concepts of value chain digitization anddigital marketing models creation It also touches upon

consumer behavior aspects for digital marketing includingconsumer demand management and Integrated MarketingCommunications (IMC) for digital platforms

UNIT II (Digital Marketing Strategy Development): This

part begins with an elaboration of the Assessment stage ofASCOR Framework which covers the Ecosystem for DigitalMarketing, key elements of Digital Marketing Assessmentand Digital Marketing Objectives Planning It is followed by

an exploration of the Digital Marketing Strategy stage

which includes developing an understanding of the DigitalMarketing Mix elements and a deep-dive into the 6S DigitalMarketing Implementation Stages

UNIT III (Digital Marketing Planning and Setup): In the

third part we cover the planning and setup stages of the

ASCOR Framework including Digital Marketing

Communications and Channel Mix and Digital MarketingOperations Setup It starts with the coverage of Digital

Media Planning stages and provides an introduction to allkey digital marketing channels Apart from this it also

covers the basics of conversion marketing, web

development and management along with developing anunderstanding of User Experience, Usability and Service

Quality Elements

UNIT IV (Digital Marketing Execution): The fourth part

drills deep into the basic elements of digital campaigns andtheir execution across all key Digital Marketing Types

(Search, Display, Social, Partner, Direct, Content, Platform

marketing) It completes the ASCOR Framework stages

with coverage of Digital Marketing Measurement and

Refinement This part concludes with a full chapter on

Digital Marketing Execution Elements including Digital

Marketing Revenue, Service Delivery & Payment, Security &Privacy Concerns, Legal and Ethical Issues

UNIT V (Digital Business-Present & Future): This last partsheds light on key present and future aspects of Digital

Marketing starting with the latest trends in digital business

to covering the rise of E-commerce along-with discussingemerging digital business models The book ends with a

dedicated chapter on emerging career opportunities for

digital professionals which will help readers of the book

decide on career tracks they could follow being digital

in mind the needs of students, faculty,

corporates, entrepreneurs and individuals

who want to master the core concepts of

digital marketing I believe the title will best equip readers to begin a career in digital

marketing and use the concepts as a

launchpad to venture into specific channels,

platforms and techniques as they discover them during their digital marketing careers.

And as is beautifully put in the parting

words of the iconic and inspiring Pixar

animation ‘Ratatouille’, I hope that with the knowledge gained from this book, you don’t just ‘Inspire Others’ but regularly ‘Surprise Yourself’ in the true moments of exhilaration this journey presents!

We, at Pearson, wish you all the best for these digital expeditions.

Puneet Singh Bhatia

Among the many endeavors of marketing is to make its way into one’s subconscious And

that is what this field of study probably did to

me through mediums unknown and ways

unsaid The thrill of being able to reach out and influence even strangers through the

written word and associated imagery is

probably one of the most lucrative aspects of a marketing career (the ability to make a real dent in sales for business being the other).

It is between these traverses that one finds the inspiration and influence to write a book

on marketing And in this journey there are many who inspire you with their passionate conversations and those who make it real with their practical insights From those who let marketing run breathlessly to those who let it tiptoe with a strict bridle, a marketer gets

shaped through interactions across such

multiple extremes And it is these exchanges that have manifested themselves in the form

of the text laid out in front of you right now.

From academic influences including Prof Simran Singh (Simran Singh & Associates) who taught me the basics of Retail Marketing

at NIFT, Delhi to Prof Ramesh Kumar (IIM Bangalore) who reiterated the fact that each word in Marketing had a meaning (to quote one of his most popular comments ‘There is a difference between Marketing and English and you should know when you are speaking what!’) to corporate gumption exemplified by Ganesh Venkataraman (AVP, Cognizant

Technology Solutions), I have both been

impressed and blessed to be associated with media, marketing and digital professionals who have shaped my understanding of the subject and brought me closer to viewing it through the lens of a regular observer (which has been my attempt in writing this book) From ideation to the ink on this page there are special mentions which I have for Pearson

India team whose support has been highly

instrumental in bringing forth this book I

would like to thank Varun Goenka for

believing in my idea and the need for a

comprehensive India specific title on Digital Marketing A big word of thanks to Jubi

Borkakoti for making sure that not only do we have the best edited text at hand but also

supporting introduction of new ideas and

features and for the relentless hours of

discussions, at times on just a single image or

an inverted comma My gratitude also goes out to Priyankita Dey and Anumeet Kaur from the Rights and Permissions team at Pearson for their painstaking work on obtaining the rights for each image along-with Neha Nupur and team for all her efforts on the marketing

of the title I am also deeply thankful to

Vikram Singh (DGM Product & Senior

Managing Editor, Pearson) for providing me this opportunity to convert and present my experiences in the form of this title.

And finally coming to those who lay right to the major share of my gratitude: Family.

My biggest indebtedness to my parents,

especially to mom who taught me how to burn the brightest even when situations seemed

tough- her strength and wisdom will always

be the backbone for each of my endeavours I also owe a lot to the endless technical and

data related discussions with my brother

(Avneet Bhatia) and content related feedbacks from my partner (Manpreet Kaur) both of

whom have been my constant support

throughout this extensive undertaking.

My final acknowledgment to the light of my life, my daughter Aarza, who lovingly (and

unknowingly) gifted a lot of her hours which went into the making of this title for which

I am obligated forever.

I hope that this edition provides you (the reader) the most simple yet practical way of learning digital marketing concepts from

scratch and really helps in developing your knowledge to emerge as a strong digital

marketing professional in future Request

each of you to share feedback and suggestions

on topics you would like to extend or change

in the book and I would try my best to include the same in forthcoming editions.

Thanks again for providing an opportunity for us to learn this wonderful and emerging area together.

Puneet Singh Bhatia

About the Author

Puneet Singh Bhatia is a digital marketing

professional with over 15 years of experience.

He has been conferred with the 100 Most

Influential Marketing Tech Leaders Award by the CMO Council and World Marketing

Congress in 2016 followed by the 100 Most Innovative Marketing Tech Leaders Award in

2018 Fundamentals of Digital Marketing is

an Amazon bestseller, which was also his first attempt at academic book publication.

After completing his MBA from IIM

Bangalore, Mr Bhatia has led

industry-transforming digital marketing projects His

interest areas include tracing the shifts in

digital marketing landscape especially in

upcoming areas including data-driven

marketing, experiential marketing, digital

story-telling, marketing automation, etc.

During his corporate stint, he has been

responsible for creating marketing strategies, developing digital domain and process

transformation frameworks, and executing thought leadership in multiple positions he has held at Patni Computers (now

CapGemini), Cognizant Technology Solutions and Axtria Inc At present, he is associated with Axtria, one of the fastest growing big

data and decision sciences company serving global clients across sales and marketing

functions Here, he holds a leadership

position.

Mr Bhatia has provided marketing

consulting, operations and delivery services for prestigious international and Indian

clients including Google, Viacom, RTL Group, Wiley, The New York Times, Apple, Twitter, Reliance, The Hindu, The Hindustan Times, Anand Bazaar Patrika, etc.

The author has participated in multiple

campus conclaves, corporate workshops and digital enablement seminars across prominent Indian colleges, corporate and public

institutions He has conducted both faculty and student interaction sessions across

prominent Indian colleges in 2017–18 and is also on the advisory board for digital

marketing across multiple MBA colleges

guiding them on their digital initiatives and curriculum development.