Digital Marketing and Business
what is digital marketing and digital business
Digital – Marketing :
Digital-Marketing is the process of conducting marketing activities and achieving marketing objectives through electronic medium. Digital -Marketing involves the use of online networks, computer communication and digital interactive media to the marketing objectives of the organization. Business organizations adopt marketing tactics like email, banner ads, referrals and video ads to attract and retain customers.
Market segmentation is essential for locating, comparing and utilizing marketing opportunities. A market segment consists of buyer groups with similar wants. Based on marketing segmentation, marketing programs and plans can be framed effectively. Market segmentation helps a marketer to know beforehand the kind of products or services that can be sold on Internet and to whom the products can be sold.
A market can be segmented into three categories :
Geographic segmentation divides the market into different geographic units such as nation, state and cities, etc.
Demographic segmentation is based on demographic characteristics such as sex, age, marital status, education, income, etc.
Psychographic segmentation: Buyers are divided into various groups based on social class, lifestyle and personality characteristics.
Consumer Tracking :
While generating Web-site traffic is important to an e-business, it is not sufficient to ensure success. Keeping user profiles, recording visits and analyzing promotional and advertising results are helpful when measuring a marketing campaign’s effectiveness. By discovering the target market-the group of people toward whom it is most profitable to aim a marketing campaign-a company can focus its campaign, increasing the number of visits, responses and purchases. Marketers use log files and log-file analysis to monitor consumer information.
Electronic Advertising (E-Advertising) :
Advertising on the Internet is called online advertising or e-advertising.
Format of advertising on web :
Banner ad – The banner contains a short text or graphics to promote a product or service. The banner ad is an object on the web page. It provides a hyperlink to the advertiser’s web site.
Popup ad – Popup ad appears in its own window, when the user opens or closes a web page.
Interstitial ad – Interstitial ad opens in one’s own browser window when the user clicks a link to a new web page. The ad appears for a few moments and close automatically before the intended web page gets loaded.
Coupons – Certain companies provide discount coupons to their members which they can print and use for both online and offline retainers. When a customer clicks on certain coupons marketer gets to know the type of products the customer is interested.
Reward programs – When consumers purchase product on Internet they get reward points. Once the reward points get accumulated it is used for the purchase of products in future.
Pay per advertising view – Companies pay customer to view their advertisement.
Banner swapping – It involves a direct exchange of links between web sites. Company A may agree to display banner of company. B which in turn will display the banner of company A in the form of a link.
Tracking – The response of the viewer of the ad or e-mail can be tracked by placing tiny files called cookies on viewer’s computer. It helps advertisers to receive information on what type of consumers are responding to different offers and also to know offers that evoke good response.
E-mail – E-mail has the ability to reach global audience at low cost. Unsolicited email (called spam) creates negative response and solicited e-mail is well received by customers.
Search Engine :
Search engine is a searchable data base of internet files collected by a computer program called a search engine. It allows the user to enter keywords relating to particular topics and retrieve information about internet sites containing those keywords.
List of Search Engines :
The following list of search engine is really helpful for the readers. They are,
- Live Search.com
- Web Crawler.com
Customer Relationship Management (CRM) :
CRM is an acronym that stands for Customer Relationship Management. It describes the strategy that a company uses to handle customer interactions
Customer relationship management focuses on the provision and maintenance of quality service for customers. Effective CRM involves communicating with customers and delivering products, services, information and solutions in response to their problems, wants and needs.
One example of a common CRM strategy is the rewards card program offered by many supermarkets. The store gives its customers a free card that gives them access to special deals and discounts when they swipe the card during checkout. But that card also tracks everything the customer buys and allows the store to create an extremely detailed customer profile based on his or her purchasing habits.
Online Payments :
Credit Card Payments :
These cards are issued by the finance institutions which gives liberty to purchase desired products on credit. Payment of the products is made by the credit card companies on behalf of the credit holders. In these companies forward bills to the customers. In order to purchase a product or a service, the credit card holders send their credit card details to the service provides and credit card organization will carry out the remaining functions like other cash transactions.
Digital Cash :
Digital cash is a system of purchasing cash credits in relatively small amounts, storing the credits in your computer, and then spending them when making electronic purchases over the Internet. Theoretically, digital cash could be spent in very small increments, such as tenths of a cent (U.S.) or less. Most merchants accepting digital cash so far, however, use it as an alternative to other forms of payment for somewhat higher price purchases. There are several commercial approaches to digital cash on the Web. Among these are eCash from DigiCash and Cybercash
Most money is already paid in electronic form; for example, by credit or debit card, and by direct transfer between accounts, or by online services such as PayPal. This kind of electronic money is not digital cash, because, it doesn’t have the properties of cash (namely, anonymous and off-line transferability between holders).
The e-wallet is used to make online shopping easier. It is a file that you store on your hard drive containing all the personal information relevant to an online purchase, including your credit card number, billing address and expiration date. When you are ready to complete an online order form, you can have your e-wallet do much of the work.
The e-wallet makes online shopping easier because it fills in the fields in an online order form automatically, saving you the trouble of doing it yourself. This is also a great advantage for online merchants, because customers sometimes abandon online purchases if they feel that the order form is too confusing or frustrating. The e-wallet can overcome this phenomenon by automating the completion process.
There are some disadvantages to the e-wallet, as well. If you try to use the e-wallet with an online order form whose blank fields are in a different order from those in your e-wallet, or if the form has fields that the e-wallet does not recognize, the form may be left incomplete or be completed incorrectly. This would force you to erase all the fields and enter your personal information manually, defeating the purpose of the e-wallet.
A micropayment is an e-commerce transaction involving a very small sum of money in exchange for something made available online, such as an application download, a service or Web-based content.
Micropayments are sometimes defined as anything less than 75 cents and can be as low as a fraction of a cent. A special type of system is required for such payments. Which are too small to be feasible for processing through credit card companies.
Here is one scheme for micropayment: The user and seller each establish an account with a third-party service provider who monitors, collects and distributes micropayments. The seller encodes per-fee links inside a Web page. When the user initiates a transaction, payment goes through an Internet wallet account managed by the service provider. Micropayments accumulate until they are collected as single, larger payments. Such a system is helpful when a user wants to make one-time micropayments to multiple sellers. Seller-based accounts are more common for repeat business with an individual enterprise.
Smart Card :
A smart card, typically a type of chip card, is a plastic card that contains an embedded computer chip-either a memory or microprocessor type-that stores and transacts data. This data is usually associated with either value, information, or both and is stored and processed within the card’s chip. The card data is transacted via a reader that is part of a computing system. Systems that are enhanced with smart cards are in use today throughout several key applications, including healthcare, banking, entertainment, and transportation.
Smart Card Applications :
The main possible applications of smart cards are the following:
- Banking & Retail – Smart banking cards can be used as credit, direct debit or stored value cards, offering a counterfeit-and tamper-proof device.
- Electronic Purse – A smart card can be used to store a monetary value for small purchases. Card readers retrieve the amount currently stored, and subtract the amount for the goods or services being purchased.
- Health Care – Smart cards allow the information for a patient’s history to be reliably and safely stored. Health care professionals can instantaneously access such information when needed, and update the contents.
- Mobile Communication – Smart cards are used as identification device for GSM digital mobile phones. The card stores all the necessary information in order to properly identify and bill the user, so that any user can use any phone terminal.
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