What is digital marketing?

“Digital marketing” is the process of building and maintaining customer

relationships through online activities to facilitate the exchange of ideas,

products, and services that satisfy the goals of both parties.

Digital Marketing Overview

Key Concepts in E-commerce: Digital Markets and Digital Goods In a

Global Marketplace

• Digital markets reduce

• Information asymmetry

• Search costs

• Transaction costs

• Menu costs

• Digital markets enable

• Price discrimination

• Dynamic pricing

• Disintermediation

Digital marketing is marketing that makes use of electronic devices (computers) such as personal computers, smartphones, cellphones, tablets TV and game consoles to engage with stakeholders.

A component of Digital marketing is Digital Brand Engagement.

Digital marketing applies technologies or platforms such as websites, e-mail, apps (classic and mobile) and social networks.

Digital Marketing can be through Non-internet channels like TV, Radio, SMS, etc or through Internet channels like Social Media, E-mails ads, Banner ads, etc.

Social Media Marketing is a component of digital marketing.

Many organizations use a combination of traditional and digital marketing channels;

However, digital marketing is becoming more popular with marketers as it allows them to target and track many aspects including their Return on Investment (ROI) more accurately compared to other traditional marketing channels.

According to the Digital Marketing Institute, Digital Marketing is the use of digital channels to promote or market products and services to consumers and businesses.

With the constant growth of the web, and more people getting

connected every day, digital marketing has become a necessity for

many organizations.

Small businesses that wants to trade online and make a name for

themselves on the web.

Why are people going online?

Types of Digital Markets

Puts the consumer in control

Provides convenience

Increases satisfaction

Drives brand loyalty

Reduces the selling cycle

Reduces the cost of sales

Builds your brand

Provides targeted results

It is measurable *

Cost effective *

Benefits of digital markets

Reaching the right audience

To engage with your audience

To motivate your audience to take action

Efficient spending on your campaign

Return on investment (ROI)

Digital marketing goal

Digital marketing is about generating sales and/or capturing leads from

customers that are searching on the Internet for answers.

Digital Marketing Overview

Digital marketing objectives

Digital goods Goods that can be delivered over a digital network

Digital goods are shipped electronically to the consumer through e-mail or download from the Internet.

For example: music tracks, video, software, newspapers, book

• Digital goods

• Goods that can be delivered over a digital network

• E.g. Music tracks, video, software, newspapers, books

• Cost of producing first unit almost entire cost of product:

marginal cost of producing 2nd unit is about zero

• Costs of delivery over the Internet very low

• Marketing costs remain the same; pricing highly variable

• Industries with digital goods are undergoing

revolutionary changes (publishers, record labels, etc.)

In electronic commerce, digital goods is a general term that is used to describe

any goods that are stored, delivered and used in its electronic format.

Digital goods are shipped electronically to the consumer through e-mail or

download from the Internet. Usually when you purchase digital goods online, after

payment has been received the merchant will provide you with your digital item as

an e-mail attachment or they may provide you with a secure link where you can

download the item.

Examples of digital goods include e-books, music files, software, digital images,

Web site templates, manuals in electronic format, and any item which can be

electronically stored in a file or multiple files.

Digital goods may also be called electronic goods or e-goods.

Pros and Cons

Cost of producing first unit is almost entire cost of product

Marketing costs remain the same; pricing highly variable

Costs of delivery over the Internet very low Industries with digital goods are undergoing

revolutionary changes (publishers, record labels, etc.)

The Fundaments of Digital Product A digital product exists for the purpose of a digital

transaction

Core benefit The fundamental value of the digital product

• Basic Digital Product – Minimum digital product offering needed to deliver the core benefit a customer expects from a digital product

• Augmented Digital Product – Features that go beyond the customer’s minimum expectations

Defining Digital Product Generally 2 sorts

Tangible Goods

Easily understood because the buyer can see and often experience their benefits prior to buying

Services

Actions that companies offer to customers for the purpose of transaction