How Digital Marketing works?

Written by Gnyana Chaitanya
Published on 27/08/2021
12 min read

Have you ever wondered, why Google’s pixel smartphones miserably failed in the market??

Let’s just say, you have a great product, good expertise in the digital field, and a good investment.
What if the product fails to meet the customer’s requirements?

It simply fails. Isn’t it?

Pixel was launched and marketed as a high-end smartphone, into the market but it struggled to compete against its main competitors like Apple, Samsung, and even Huawei.

The issue isn’t quality. Google’s phones typically get high marks from reviewers every year. It was even one of the best phones of 2019 according to the CNET.
But it hasn’t been able to convince its target customers to go with the pixel.

Pixel has faltered in getting its prices and go-to marketing strategy right. It was a good product but failed to meet the customer’s requirements. Google’s marketing strategy for its phones was really bad.

Can you believe that?!!

Even a search giant like Google failed in marketing.

I don’t know whether you have noticed it not, we get to watch Samsung smartphones advertisements more often than google pixels advertisements. Samsung promoted its products with celebrities and eye-catching ads. It worked on the visibility of its products spending millions of dollars on good marketing strategies.

Can you think of one really good, memorable pixel ad?

NOPE!!

I don’t think so.

Samsung now has the largest global market share for smartphones but it didn’t get to that position purely just because it manufactures the best smartphones but also because of huge marketing.

I hope, now you can get a clear picture of the importance of good marketing skills in a business.

It is important to know

How Digital Marketing works?

We end up focusing too much on the digital part like how to run google ads, Facebook ads, SEO, etc.. and neglect the very basics of marketing principles.

Yes, of course…

I agree that one should have good knowledge of the technical aspects of digital marketing but Digital marketing is more about marketing than about digital.

Digital is just a medium for marketing.

Digital marketing is a dynamic field, it keeps on changing with time, but the marketing principles always remain the same. That is why the fundamentals of marketing are necessary.

Okay!

Now we got to know the why?? Part.
(Why one should have good knowledge in basic fundamentals of marketing.)

But here comes the next big word.

“What?”

What are the fundamentals of marketing??
So, let’s see, what are

THE FUNDAMENTALS OF MARKETING??

Okay, before going ahead let me ask you a question.

What comes first in a business, creating a product or marketing?

Of course, the answer is simple, it’s obviously creating a product, right?

That is completely untrue!!

Marketing starts long before a product is created.

Okay, let me explain to you how?

Let’s assume a company has some product x.
What does this product x have to do in a market?
It should satisfy and fulfill the needs of a target customer.

So, to achieve that (fulfilling the needs of a target customer) the company should be in a position to create a product depending on the needs and wants of the target market and deliver the desired satisfaction effectively than the competitors do.

Thus, marketing starts with identifying the consumer needs, then the product and services are planned according to the needs of customers.

See, I told you.

Marketing starts long before product creation.
 
Let’s move on to the next important aspect of marketing.

Don’t worry.

I am not here to bore you with my long and tedious information on marketing.

So, let’s spice it up a bit with an interesting case study of AMUL!!


I am sure, you all know how COIVD-19 affected our nation’s economy. Many companies had to shut down due to a lack of manpower and transportation facilities. Out of many products, milk was considered one of the essential products. So, the dairy industries were operating during lockdown with a minimal supply chain. After the lockdown was announced several businesses either cut down or closed their businesses. This created a loss of demand in the dairy industries in the market because these businesses included restaurants, hotels, and catering services, which contributed more than 20% of the revenue to the dairy industries. While most of the dairy industries were suffering losses and minimized their productions, AMUL increased its productions and introduced a lot of new products.!! Strange!! Right?? What must be the motive behind this bold move from the AMUL??

So, during the lockdown people were spending in their homes.
People became more health-conscious and homemade foods started trending as hobbies, this skyrocketed the household consumption of dairy products and groceries.

As a result, AMUL started operating at 115% capacity to meet the surge in
the demand for its products.

And BOOOM!!!
AMUL’s market exploded like hell.

Using amazing marketing strategies AMUL not only survived in lockdown but also made 39,200Cr as profits.

What are the key takeaways from this case study?

• Marketing is about sending the right message(product), to the right customer at the right time.

Justification- To meet the surge in demand, Amul launched the right products at the right time to the right market.

• Don’t be the No. 1. Be the only one.

Justification- While all the dairy industries were operating at minimum capacity,
AMUL was at full capacity launching new products. So, ultimately AMUL was the only option to satisfy the demands in the dairy market.

• Understanding Change in consumer behavior. (Customer’s psychology)

Justification- AMUL predicted there would be a change in consumption of dairy products because people staying at home are indulging in household activities such as cooking that led to a rise in demand for dairy products.

Are you guys’ fan of the BACK TO THE FUTURE movie series?

Imagine having a time-traveling car from that movie.

Now let’s travel back to the period say, the 1970’s.

How do you think the marketing used to take place then.?

There was no digital medium.
So, people used to rely on offline strategies which included
print advertisement (newspapers, magazines, billboards),
direct sales, direct mail (letters, postcards, brochures),
telemarketing (phones, text)
broadcasting (television and radio).
This is what we call now Traditional marketing.

How is it different from contemporary marketing?

What are the similarities?

Which is the better?

DIGITAL MARKETING VS TRADITIONAL MARKETING

Traditional marketing allows you to deal with customers more personally and directly unlike digital marketing.
It builds trust and credibility and helps reach the local audience better. Traditional marketing is hard to ignore.

Recently BBC was advertising one of its web series titled “DRACULA” on billboards.

The billboard was randomly filled with knives and the word “DRACULA” written beside it.

People couldn’t understand what the ad was meant to be in the daylight.
But this bloody clever Dracula Ad gets creepier as the sun goes down.

The billboard slowly reveals its hidden image of a Dracula with a shadow casting from the knives.

Don’t you think that was a brilliant way of marketing?

Traditional marketing allows us to reach broad audiences in different demographics easily.

Traditional marketing also has its downsides.

Ad campaigns in traditional marketing are much costlier than in digital marketing. You can even run an ad at as low as Rs 100 through a digital medium, which is not possible in traditional marketing.

Digital marketing can target a specific section of customers from your industry, which is not achievable with traditional marketing.

There may be a lot of differences between digital marketing and traditional marketing.
But if you Look at it, from a broader perspective, they are very identical.

Let me explain it to you in a simple way with a picture.

traditonal marketing vs digital marketing

I think this picture is good enough to justify my statement.

The mails have been replaced by emails, instead of televisions, we are using YouTube, instead of radio we have podcasts, instead of newspapers we have blogs.

Yes, the medium of marketing may differ but both are very much similar.

Now, How do we implement marketing?

Is there any best practice?

Hell yes!! It’s called

THE CATT MARKETING FUNNEL

So, first things first.

What is a funnel in marketing?

It is a step-by-step path, your customers go through from being introduced to a product to making transactions.

Every funnel is based on the specific interest of the target audience.

There is a tested method or you can call it a formula for this funnel.

W = n^CATT

W= wealth
N= niche
C= content
A= Attention
T= Trust
T= Transaction

A funnel basically consists of two parts; Marketing + selling.

[C]: Creating useful Content to help your customers and to show your expertise in your niche using blogs.

[A]: Grabbing customers Attention with your content using paid ads, referrals, SEO

[T]: Building trust with your customers with automation and retargeting.

These three come under the marketing part.
And the final one

[T] leads making transactions getting you sales.

The transaction comes under selling.

Let’s understand it more clearly.

A dental clinic in my neighborhood organizes dental camps frequently, where they offer free dental check-ups for everyone.

One of my other friends had some sensitivity problems So, he wanted to go for a free check-up. The doctor examined everything and pointed out that his teeth were yellowish in color so whether he wanted teeth cleaning or not.

Obviously, nobody wants their teeth to be dirty.

He agreed to go for teeth whitening. A few minutes later the doctor again pointed out to him that his teeth have gaps more than usual and that needs to be corrected as soon as possible with braces.

So, after the treatment, he paid Rs 1000 for the teeth whitening made an appointment with the dentist to come back again for the Braces.

Two days later he visited the same clinic for braces placements and paid Rs20,000.

Did you observe the brilliant marketing funnel used by the dentist?

My friend went for a free dental check-up and ended up paying
Rs 21,000 to the dentist.

Try to compare it with the CATT funnel

He is a dentist so his niche would be in dental solutions.

His expertise in dentistry makes it good content….[Blogs]

He attracted patients with his free dental check-ups to his clinic…..[Paid ads, SEO]

With his experience and treatment, he gained the trust of the patient…..[Automation & retargeting]

Finally, the patient paid for his other premium services….[leads into customers]

Okay, now we got a pretty good idea about digital marketing. So, How do we use different marketing tools to get better results?

Using…….

INTEGRATED DIGITAL MARKETING

INTEGRATED DIGITAL MARKETING

Let’s say,  I have a blog.

A visitor comes to my website and signup for my newsletter.

Now I want to send him/her a welcome email from my email service provider. I collect his details in a form from my website and go to my email service provider and send him/her a welcome mail.

What if…you have thousands of visitors coming to your website and signup for your newsletter.??

You can send each person a mail, at a time, whenever someone subscribes to your newsletter.

That would be an impossible task, right?

So, to make life easy, integrated digital marketing is used.

I can integrate my blog with my Email service provider so that whenever someone signup for my newsletter a welcome email will be delivered to that person automatically.

The main idea behind integrated digital marketing is that, while each individual strategy doesn’t have a huge impact on its own but when they are used combinedly they can create a strong online presence.

So basically integrated digital marketing is, using all the digital marketing tools as a system, rather than using each tool individually.

Now your website or company has established a strong online presence.
But what do you think people can trust more, a company or a person?

People develop trust if a company has a face to represent it.

This takes us to the next section of this article,

PERSONAL BRANDING

personal branding

Take Tesla as an example,
Tesla gained its fame only because of Elon Musk.
The company Tesla has a face that represents trust and credibility.

You can name any big company; it will be more successful if it has a face to represent it.

That is the power of personal branding.

CONCLUSION

So, to conclude this article let’s take a recap of whatever we have learned till now.

  • Fundamentals of marketing are important to be successful in a business.
  • Marketing starts long before the creation of the product.
  • Create a product understanding customer’s needs rather than creating some product and then trying to figure out where to fit it in the market.
  • It is about sending the right message to the right person at the right time.
  • Don’t be the no. 1. Be the only one.
  • Understanding the change in consumer behavior allows us to deliver the right product to the market.
  • Show your product to the people choosing a suitable marketing channel, be it traditional or digital medium.
  • Create a strong online presence using different marketing tools to integrate it with one another, making it work as a system rather than using it individually.
  • Make efforts in building your personal branding. Representing a company with a face builds trust and credibility in your business.

I’m very glad that you could make it here.
I hope I could provide you with some value with this article.

Feel free to comment or make some suggestions in the comment box below.