What is Digital Marketing? - A basic Introduction to Digital Marketing in 2020

By Akilesh Manchikanti | 2nd October, 2020 | 7 min Read

What is the first thing that comes to your mind when you hear the word adidas,nike or amazon? Did you ever think how these brands have become so famous and the reason for their success? Continue reading this article to get the answers for your questions.

What is Marketing?

Marketing is the act of connecting with customers with a bid to convince them towards buying a product or subscribing to a service. Marketing occurs at any time when a person or organization strives to exchange something of value with another person or organization. It consists of activities designed to generate and facilitate exchanges to satisfy human or organizational needs or wants.

Marketing can be defined as:

  • Performance of business activities that directs the flow of goods and services from producer to consumer.
  • Determining the needs and wants of target markets and delivering the designed satisfaction more efficiently and effectively than its competitors.
  • Getting the right product to the right place at the right time and the right price with right promotion strategies.

Marketing mix or 4P’s of marketing

What is marketing mix ?

4P’s_of_marketing_mix

The 4P’s often referred to as marketing mix are the 4 pillars that define the marketing strategy of any organization or a firm. The 4p’s are Product, Price,Place and Promotion,

  • Product :A product is a good or a service that a company sells . The product might be a physical product like a laptop or a service like gmail.

  • Price :Price is what the customer pays for the product. Deciding the right price for the product is the most challenging task of any marketing strategy.

  • Place :It is important to decide the right place and location where your customers can find your product.

  • Promotion :For a company to be successful,it is just not enough to develop a good product,price it right and make it accessible but the company must also communicate with its present and potential buyers. It is important for a company to communicate in a convincing manner with its customers. Such a persuasive communication is called promotion.

A Marketer designs the 4P’s for his/her product carefully and according to the needs and interests of his/her customers.

Marketing is working on the mind of another person so that he behaves (willingly) the way you want him to and feels satisfied in doing so. All of us practice marketing in our daily lives by interacting with other people.

What is Traditional Marketing?

Traditional marketing is the type of marketing that is not online. Traditional marketing involves marketing channels such as,

  1. Print media : News papers, Magazines etc.
  2. Broadcast: TV, Radio etc.
  3. Direct mails : Catalogues, Postcards, etc.
  4. Telephone (Telemarketing, SMS marketing, etc.)
  5. Outdoor (Billboards, Fliers, etc.)
Example_of_traditional_marketing_using_billboards

Here is one of the best examples of traditional marketing where CEAT Tyres are promoting their brand through electronic billboards.

Traditional marketing is not only the oldest form of marketing but also the most trusted and well researched form of marketing. Everybody encounters traditional marketing in their daily life such as getting a brochure or advertisements along with your daily newspaper.

What is Digital Marketing?

Digital Marketing on the other hand includes all marketing channels and methods you can use to promote products or services on the internet and also on electronic devices such as TV’s, mobile phones etc.

Digital Marketing suits any kind of business whether it is small or big. Today most of the customers are looking for products and services online(e-shopping).

According to google, Search Engines drive 93% of traffic to the website. As people hang out online and stay updated with news and information through blogs and e-advertisements, companies have started using digital marketing techniques to grab their attention.

As for February of 2020, Statista reports a 13% increase in digital marketing budget compared to August 2019 (11.8%) in their study.

examples_of_digital_marketing_channels_for_promotion_and_advertising

Internet and Digital Marketing have become important factors in campaigns, which attract and retain online buyers.

Why is digital Marketing Important?

The importance and benefits of digital marketing are becoming more and more prevalent everyday. Even small companies with limited budgets are able to reach their target customers with digital marketing.

According to Forbes, 82% of consumers conduct research online and TechCrunch reports that 79% of people shop online.

The important benefits of digital marketing are:

  • Digital Marketing is cost-effective: One of the most important benefits of digital marketing is that it is cost effective. When it comes to traditional marketing, small businesses with limited budgets find it difficult to compete with large players for their ads space. By using digital marketing tactics even the small businesses are able to get large profits.
digital_marketing_benefits_for_small_and_large_companies_as_it_is_cost_effective

Look at the above graph. A small business can reach 1000 people by spending $2.50 using social media whereas to reach the same 1000 people using direct mails the company needs to spend $57.

  • Measure all your results: With traditional marketing it is difficult to measure the success of your campaign results. For example you have posted an advertisement about your new product that you are launching next week in a newspaper or using mail, it is difficult to estimate how many people have seen your advertisement or interacted with your brand which could sometimes be frustrating.

  • Digital marketing eliminates this uncertainty. There are many tools that provide many useful and important metrics like

    • Live traffic reports
    • Time spent by visitors on your website
    • How many people saw your ad and sales resulted from your ad
benefits of digital marketing,analyzing website traffic,session duration,bounce rate

For example let's say you want to release a series of articles about your new product on social media. By using social media analytics you can see which posts are getting more audience and how people are interacting with your posts. These insights can be used to design future campaigns and produce success.

Digital Marketing Success Stories:

Let us see how companies like Amazon and KFC ruled the market by using various digital marketing strategies.

Amazon:

Moto: Most of the digital marketing campaigns go unnoticed when it comes to e-commerce.

Action point: When do people crave for new products? When they see them in their daily life either through peers or a window display. Amazon has found out a way to catch their customers interests by giving them the shortest path for product purchase.Amazon has identified channels where their customers are spending most of the time online - Their main objective is “ how can they make their journey simpler?”

Amazon’s marketing strategy on instagram: Amazon’s creative use of instagram stories allows them to promote interviews of popular artists, authors,singers and influencers, with the option to swipe up to purchase their music, books or other items on their website.

Amazon's marketing strategy on Twitter: Amazon mainy uses twitter for humorously engaging with their customers.

digital marketing examples using social media, Twitter

Amazon just seems to love Twitter. Aside from the company’s main account, the e-commerce platform has literally dozens of official accounts for different purposes (e.g. @AmazonHelp for support questions, @AmazonNews for company updates, etc.), for different products and services like Amazon Pay or Amazon Echo, as well as for different geographical markets.

Key takeaways from Amazon’s strategies:

By using various social media platforms and different digital marketing strategies, Amazon is able to deliver its services flawlessly and increase the customer engagement with its brand.

KFC:

Moto: Social media is the best platform when it comes to promoting your brand and engaging the audience.

Action point: The objective of the entire social media campaign that revolved around apps like the Radio KFC RJ Hunt, Design your own bucket campaign, Currycature and Wow Menu option, is to target young audiences who are their target groups and also to develop brand engagement with them. Ultimately the objective was to increase the sales of KFC products in India.

Examples of digital marketing using social media such as Facebook for promotion by KFC

For an example: Design Your Own Bucket was a campaign where the participants had to come up with creative and colorful KFC buckets. It received 5500 entries.

This campaign gave KFC India a chance to connect with the audience and gave them an exciting opportunity to design their own bucket.

Blink created “ Design your Bucket app”. People had a lot of tools at their disposal where they could build the bucket from scratch and upload an image.

At the end of the contest, the winners were given exciting offers and KFC vouchers.

Key takeaways from KFC’s strategies:

As a result of this campaign KFC was featured amongst the top 5 socially devoted brands by Social Baker. The sales increased drastically and the visibility of their facebook page soared.


*Affiliate Disclaimer - If you click on one of the links mentioned in the article and purchase via our link, it is likely that we will receive some sort of commission at no extra cost to you. The reviews given are our genuine and commissions have no impact on the review.


To Avail Our Free Resources