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Digital Marketing
E-Business : Carrying out the goals of business
through use of the Internet
Digital Media : Electronic media that function
using digital codes
Digital Marketing : Using digital media to
develop communications and exchanges with
customers
Growth and Benefits of Digital
Communication
Digital media has created opportunities for
businesses to:
- Create relationships with consumers
- Target markets more precisely
- Reach new markets worldwide
Digital Marketing
Has five key characteristics
1.Addressability: The ability for a business to identify consumers before they
make a purchase
2.Interactivity: Allows customers to express their needs and wants directly
to the firm in response to its communications
3.Accessibility: Allows consumers to find information about competing
products, prices, and reviews and to become more informed about a firm
and the relative value of its products
4.Connectivity: Keeps customers and businesses connected with each other
5.Control: Consumers’ ability to regulate the information they receive via the
Internet
Using Digital Media in Business
1. Digital media have created new ways of doing
business and shopping
Fast communication
More interactive
Comparison shopping easier
Easier to conduct marketing research and
advertise
Using Digital Media in Business
2. Digital media have lowered the cost of
communication and transactions
3. Digital media are more similar to traditional
media than they are different
4. Growing problem with controlling employee
access to digital media
Wasting time at work on personal communications
Digital Media and the Marketing Mix
Some key differences between digital and
traditional media in the marketing mix:
Communications are richer, faster and more
interactive
Companies can reach target markets more easily,
affordably and quickly
They help marketers utilize new resources in
seeking out and communicating with customers
Digital Media and the Marketing Mix
Product Considerations
Distribution Considerations
Promotion Considerations
Pricing Considerations
Product Considerations
Digital media connectivity creates opportunities to
add services and benefits to products
Some products only available digitally
Internet can make it easier to learn about and
anticipate consumer needs
Competition makes quality and service offerings
more important than ever
Distribution Considerations
The Internet is a new distribution channel
Processing orders electronically can reduce
inefficiencies, cost and redundancies
Can also increase speed
Shipping times and costs are important to
customers
Promotion Considerations
Promotion is one of the best applications for digital
media
Consumer consumption patterns are changing
The products they want to buy
The way they get information
Marketers must react and give consumers what
they want
Price Considerations
1. The most flexible element of the marketing mix
2. Digital media can enhance a product’s value by
providing service, information, and convenience
Discounts and sales can be quickly communicated
Deals websites allow consumers to compare
prices of products
Social Networks
A web-based meeting place for friends, family, co-workers
and peers that lets users create a profile and connect with
others for a variety of purposes
Build relationships with customers
Provide product information
Learn about customer needs
Contact new target markets
- Starbucks, Dell, eBay and Google all excel at using social
media for marketing
Types of Consumer-Generated
Marketing and Digital Media
Two factors sparked the increase in consumer
generated information:
1. Increased tendency for consumers to publish
their thoughts, opinions and reviews of products
via blogs and other digital media
2. Consumers tend to trust other consumers over
corporations
Types of Consumer-Generated
Marketing and Digital Media
Social Network : Facebook, Twitter
Blogs and Wikis : blogspot, wordpress
Media Sharing : youtube, dropbox, google drive
Virtual Worlds
Mobile Marketing
Application and Widgets
What kind of digital technology user
are you
Creators: Create their own media outlets (e.g. blogs, podcasts, videos)
Critics: People who comment on blogs or post ratings and reviews
Collectors: Collect and organize content generated by creators and
critics
Joiners: Includes anyone who becomes a user of social networking sites
or other online communities to connect and network
Spectators: Read online information but to not join communities or post
anywhere
Inactives: Do not participate in online digital media
Using Digital Media to Learn About
Consumers
Digital media is a great learning tool
Market research
Gathering data on consumers
Asking consumers about preferences
Crowdsourcing involves using communities if interested
consumers to gather input and feedback for marketing
purposes
Can help small businesses on limited budgets compete
with large businesses
Legal Issues in Internet Marketing
Privacy
Identity Theft
Online Fraud
Intellectual Property
Privacy
Shopping on the Internet allows companies to better track
consumers
Cookies are often used for tracking
Laws and regulations cannot keep up with the rapidly-
changing Internet
Federal Trade Commission considering creating legislation
that limits information companies can gather online
The Better Business Bureau and other organizations can
help organizations develop privacy policies
Identity Theft
Occurs when criminals obtain personal
information that allows them to impersonate
someone else in order to access financial
accounts and make purchases
Security breaches are serious threat to
organizations and individuals
Phishing is using a familiar website to deceive
people into divulging private information
Online Fraud
Includes any attempt to conduct fraudulent activities
online
Cybercriminals are increasingly using online social
networking sites and other digital media to commit
fraud
They sometimes use social networking sites to pose as
charities and collect donations
Always be careful what information you give out
when online; and used trusted sites whenever
possible
Intellectual Property
Intellectual property can include songs, movies,
books, electronics, software, etc.
It is generally protected by patents and copyrights,
but these can be difficult to enforce globally
Piracy and illegal sharing costs global industries
billions annually
90% of illegal software copying is done by
businesses
Digital Media and how They are
Changing Marketing
Digital media can make your company more
efficient and productive
Transition to digital media can be challenging
Correct blend of traditional and digital media in
marketing mix takes time and consideration
Future marketing opportunities will require a
knowledge of digital media and how to use them
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Digital marketing and social networking

  • 2. Digital Marketing E-Business : Carrying out the goals of business through use of the Internet Digital Media : Electronic media that function using digital codes Digital Marketing : Using digital media to develop communications and exchanges with customers
  • 3. Growth and Benefits of Digital Communication Digital media has created opportunities for businesses to: - Create relationships with consumers - Target markets more precisely - Reach new markets worldwide
  • 4. Digital Marketing Has five key characteristics 1.Addressability: The ability for a business to identify consumers before they make a purchase 2.Interactivity: Allows customers to express their needs and wants directly to the firm in response to its communications 3.Accessibility: Allows consumers to find information about competing products, prices, and reviews and to become more informed about a firm and the relative value of its products 4.Connectivity: Keeps customers and businesses connected with each other 5.Control: Consumers’ ability to regulate the information they receive via the Internet
  • 5. Using Digital Media in Business 1. Digital media have created new ways of doing business and shopping Fast communication More interactive Comparison shopping easier Easier to conduct marketing research and advertise
  • 6. Using Digital Media in Business 2. Digital media have lowered the cost of communication and transactions 3. Digital media are more similar to traditional media than they are different 4. Growing problem with controlling employee access to digital media Wasting time at work on personal communications
  • 7. Digital Media and the Marketing Mix Some key differences between digital and traditional media in the marketing mix: Communications are richer, faster and more interactive Companies can reach target markets more easily, affordably and quickly They help marketers utilize new resources in seeking out and communicating with customers
  • 8. Digital Media and the Marketing Mix Product Considerations Distribution Considerations Promotion Considerations Pricing Considerations
  • 9. Product Considerations Digital media connectivity creates opportunities to add services and benefits to products Some products only available digitally Internet can make it easier to learn about and anticipate consumer needs Competition makes quality and service offerings more important than ever
  • 10. Distribution Considerations The Internet is a new distribution channel Processing orders electronically can reduce inefficiencies, cost and redundancies Can also increase speed Shipping times and costs are important to customers
  • 11. Promotion Considerations Promotion is one of the best applications for digital media Consumer consumption patterns are changing The products they want to buy The way they get information Marketers must react and give consumers what they want
  • 12. Price Considerations 1. The most flexible element of the marketing mix 2. Digital media can enhance a product’s value by providing service, information, and convenience Discounts and sales can be quickly communicated Deals websites allow consumers to compare prices of products
  • 13. Social Networks A web-based meeting place for friends, family, co-workers and peers that lets users create a profile and connect with others for a variety of purposes Build relationships with customers Provide product information Learn about customer needs Contact new target markets - Starbucks, Dell, eBay and Google all excel at using social media for marketing
  • 14. Types of Consumer-Generated Marketing and Digital Media Two factors sparked the increase in consumer generated information: 1. Increased tendency for consumers to publish their thoughts, opinions and reviews of products via blogs and other digital media 2. Consumers tend to trust other consumers over corporations
  • 15. Types of Consumer-Generated Marketing and Digital Media Social Network : Facebook, Twitter Blogs and Wikis : blogspot, wordpress Media Sharing : youtube, dropbox, google drive Virtual Worlds Mobile Marketing Application and Widgets
  • 16. What kind of digital technology user are you Creators: Create their own media outlets (e.g. blogs, podcasts, videos) Critics: People who comment on blogs or post ratings and reviews Collectors: Collect and organize content generated by creators and critics Joiners: Includes anyone who becomes a user of social networking sites or other online communities to connect and network Spectators: Read online information but to not join communities or post anywhere Inactives: Do not participate in online digital media
  • 17. Using Digital Media to Learn About Consumers Digital media is a great learning tool Market research Gathering data on consumers Asking consumers about preferences Crowdsourcing involves using communities if interested consumers to gather input and feedback for marketing purposes Can help small businesses on limited budgets compete with large businesses
  • 18. Legal Issues in Internet Marketing Privacy Identity Theft Online Fraud Intellectual Property
  • 19. Privacy Shopping on the Internet allows companies to better track consumers Cookies are often used for tracking Laws and regulations cannot keep up with the rapidly- changing Internet Federal Trade Commission considering creating legislation that limits information companies can gather online The Better Business Bureau and other organizations can help organizations develop privacy policies
  • 20. Identity Theft Occurs when criminals obtain personal information that allows them to impersonate someone else in order to access financial accounts and make purchases Security breaches are serious threat to organizations and individuals Phishing is using a familiar website to deceive people into divulging private information
  • 21. Online Fraud Includes any attempt to conduct fraudulent activities online Cybercriminals are increasingly using online social networking sites and other digital media to commit fraud They sometimes use social networking sites to pose as charities and collect donations Always be careful what information you give out when online; and used trusted sites whenever possible
  • 22. Intellectual Property Intellectual property can include songs, movies, books, electronics, software, etc. It is generally protected by patents and copyrights, but these can be difficult to enforce globally Piracy and illegal sharing costs global industries billions annually 90% of illegal software copying is done by businesses
  • 23. Digital Media and how They are Changing Marketing Digital media can make your company more efficient and productive Transition to digital media can be challenging Correct blend of traditional and digital media in marketing mix takes time and consideration Future marketing opportunities will require a knowledge of digital media and how to use them