Bhatia p fundamentals of digital marketing 2ed 2019

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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.

Case Studies
Flipkart: Heralding Indian E-commerce
Amazon India: The Global Unicorn
Google India: From Keyword to Alphabet
Facebook India: Expanding the Network
Twitter India: Monetizing Communication
Times Internet: The Voice of News
LinkedIn India: Identity that Matters
MakeMyTrip: Profiting from Experiences
Info Edge India: The Story of Real Jobs
One97 Communications: No Cash, No Corruption!


Contents
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 E-Business to Advanced ECommerce
Digital—The Next Wave of Marketing
Digital Marketing: An Introduction
Emergence of Digital Marketing as a Tool

Media Consumption
Environment

Drivers

for

New

Marketing

Digital Marketing Channels: Types and Business Models
Digital Marketing Applications and Benefits
Internet
Marketing:
Frameworks

Underlying

Technology

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

and


Reshaping
Profit

Interactions:

Individuals/Businesses/Non-

Opportunities and Challenges to Internet Marketing
Digital Marketing Framework
Delivering Enhanced Customer Value
Market Opportunity
Development

Analysis

and

Digital

Services

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 (Search Execution)
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 PlatformBased Marketing
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
Emerging Areas

Marketing-Landscape

and

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
Marketing

and

IoT—Data

Technologies

Impacting

B2B and SMB—Segments-Based Digital Marketing
SoLoMo—the Next level of Hyperlocal Marketing
Chapter Summary
Review Questions
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 area of study.

The aim behind authoring this text was to bring a
pedagogical, framework-driven approach that was lacking
across academic and corporate circuits. And in many ways,
I believe, the approach has established itself 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 and
earned presence along with executing paid promotions
Project brief towards understanding and implementing
multiple marketing analytics techniques deployed across the
digital marketing landscape
Introduction of a new section on Google Analytics (GA) to
help upcoming marketers gain a view of why GA is one of
the most preferred analytics tools for marketers to
understand website actions, engage better with visitors and
analyze campaign data
Inclusion of digital marketing trends (that gained
prominence in 2018) including voice marketing, microinfluencers, GDPR, growth hacking and conversion rate
optimization

Every author yearns to create a text that is not just read,
but whose concepts are also implemented in the industry. I
am grateful to everyone for your huge acceptance of the
first edition to make it a bestseller and one of the most
admired titles in digital marketing in 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:


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
grounds-up.
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 the
new digital paradigm which is in essence a movement from:
a. ‘Traditional Channels’ marketing to purely ‘Digital
Channels’ marketing
b. ‘Supply Orientation’ marketing to ‘Personalized
Consumer’ marketing
c. ‘Product or Service’ marketing to ‘Digitized (Hybrid)
Offerings’ marketing
Underlines a practically-oriented digital marketing model
(ASCOR Framework): This is one of the first Indian
marketing texts which has a ‘Digital Marketing’ specific
Framework: ASCOR (Assessment, Strategy, Channel and
Communication, Operations and Refinement) that forms
the backbone for the entire ecosystem of digital marketing
activities and concepts.
Provides a detailed orientation to Digital Transformation:
To understand ‘digital’ as a concept and establish its
importance for marketing, in the beginning of the textbook
itself (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 Marketing
Models’ 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 can
learn from their business story.
Includes Digital Application exercises on Indian brands: At
the end of each chapter, application exercises on key digital
marketing concepts (pertaining to each chapter) have been
provided, for students to self-assess their concepts and also
apply them to brands which they have seen around/grown
with 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 and how to approach
those career tracks. Once the reader has mastered 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, its
underlying technologies and frameworks and establishes the
ASCOR digital marketing framework. It further delves into
defining the concepts of value chain digitization and digital
marketing models creation. It also touches upon consumer
behavior aspects for digital marketing including consumer
demand management and Integrated Marketing
Communications (IMC) for digital platforms.
UNIT II (Digital Marketing Strategy Development): This
part begins with an elaboration of the Assessment stage of
ASCOR Framework which covers the Ecosystem for Digital
Marketing, key elements of Digital Marketing Assessment
and Digital Marketing Objectives Planning. It is followed by
an exploration of the Digital Marketing Strategy stage which
includes developing an understanding of the Digital
Marketing Mix elements and a deep-dive into the 6S Digital
Marketing 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 Marketing
Operations Setup. It starts with the coverage of Digital
Media Planning stages and provides an introduction to all
key digital marketing channels. Apart from this it also covers

the basics of conversion marketing, web development and
management along with developing an understanding 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 and
their 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 part
sheds 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 discussing
emerging 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
marketing professionals.

This book comprises insights gained from my years of
corporate work experience and industry interactions with
clients/workmates across multiple sectors, domains and
geographies, which I have aimed to transform into
practical and actionable frameworks and models. The title
has been authored keeping 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


Acknowledgements
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