View of A STUDY ON DIGITAL MARKETING: SWOT ANALYSIS

(1)

Vol.04,Special Issue 05, (ICIR-2019) September 2019, Available Online: www.ajeee.co.in/index.php/AJEEE

1

A STUDY ON DIGITAL MARKETING: SWOT ANALYSIS Dr. Vishal Purohit

Dr.B.R.Ambedkar University Mhow Dr. Indira Dixit

Choithram College of Professional Studies 1 INTRODUCTION

“Digital Marketing is any form of marketing products or services, which involves electronic devices. It can be both online and offline. According to institute of direct marketing the use of internet and related digital information and communication technologies to achieve marketing objectives."

Digital Marketing is a part of a Digital Economy. India is a fast moving nation towards digital economy and this movement has been accelerated with the demonetization of the Indian Currency in the last quarter of year 2016.With it various government digital payment promotion schemes has been launched. Digital market requires digital promotion and marketing strategies. The telecom sector is also playing an important role in the digitalization movement. Recent launch of reliance telecom Jio with the free & unlimited internet facilities has played a revolutionary roll. The other prominent companies like Airtel, Idea, & BSNL are also offering attractive internet plans. Indian banks are also providing more customer friendly & secure money transaction services. Now Indian consumer is spending more time on social media and internet surfing. Thus the visibility of any product is more through digital medium than traditional marketing techniques. Digital marketing techniques includes Content Marketing, Marketing Automation, Ad Words, SEO, Social Media, Email Marketing and Website Design. The key player’s role players and infrastructure providers in Digitization of an Economy are government, banking system, Shopping Portal in India, Internet Service Providers and Software Service Providers The use of the Internet and other digital media and technology to support „modern marketing‟ has given rise to a bewildering range of labels and jargon created by both academics and professionals. It has been called digital marketing, Internet marketing, e-marketing and web marketing and these alternative terms have varied through time.

Digital Marketing is the term most frequently used today, so that is the term we focus on. In simple words we define digital marketing is “Achieving marketing objectives through applying digital technologies and media”. So, digital marketing is about utilizing digital technology to achieve marketing objectives.

2 LITERATURE REVIEW

 Kaini (1998) Innovation of new technology i.e. vide internet, helps in opening the gate for marketers and do online marketing to achieve their business goals.

 Song (2001) More choices are available for customers. So it is difficult to enterprise to build brand image. Online advertising is powerful marketing tool used for creating brand image and helps the corporate to increase the sale up to many extents.

 Mort, etal (2002) Due to advancement in technologies and market dynamics, digital market is rapidly growing

 Teo (2005) The survey was conducted by firms in Singapore and findings revealed that digital marketing is effective marketing tool for gaining results.

 Kucuk and Krishnamurthy (2007) The study revealed that internet and virtual communities helps the consumers, societies and marketer to access and share information with others. It too helps in enhancing the communication skills also.

 Basheer et al.(March,2010) The Study is on the impact of mobile advertising on consumer purchase decision. Findings revealed that there is a positive relationship between perceived usefulness of advertisement and consumer purchase decision.

 Kee (2008); Godes& Silva (2012) The Study revealed that 90% of consumer read online reviews of other consumer before make purchase decision. Consumer read at least four reviews before make their final decision of purchase. Reviews play important role in purchase decision.

(2)

2

 Dastidar&Datta (2009). In this study it was found that, relationship present gender wise between both the variable and influence of exploratory tendencies on impulsive buying behavior on in young female is higher than young male. It reveals that, variety seeking, risk taking/innovativeness, and curiosity motivated behavior in young female is higher result spontaneous buying behavior. While study shows that, in male it is very lower.

2.1 Objectives of the study

 To study basics of digital marketing.

 to study the opportunities due to digital marketing.

 To study the threats due to digital or online marketing.

 To study the strength due to digital marketing.

 To study the weakness due to digital marketing.

2.2 Strength of Digital Marketing

 Stay updated with products or services Digital marketing technologies allow the consumers to stay with the company information updated. Nowadays a lot of consumer can access internet any place anytime and companies are continuously updating information about their products or services.

 Greater engagement with digital marketing, consumers can engage with the company’s various activities. Consumers can visit company’s website, read information about the products or services and make purchases online and provide feedback.

 Clear information about the products or services Through digital marketing, consumers get clear information about the products or services. There is a little chance of misinterpretation of the information taken from sales person in a retail store. However, Internet provides comprehensive product information which customers can rely on and make purchase decision.

 Easy comparison with others Since many companies are trying to promote their products or services using digital marketing, it is becoming the greatest advantage for the customer in terms that customers can make comparison among products or services by different suppliers in cost and time friendly way. Customers don’t need to visit a number of different retail outlets in order to gain knowledge about the products or services.

 24/7 Shopping Since internet is available all day long, there is no time restriction for when customer wants to buy a product online. (vi) Share content of the products

SWOT ANALYSIS OF DIGITAL MARKETING

Strengths Good brand recognition High availability of skills (such as SEO, strategy,

copywriting)

Extensive reach via social channels

Weakness Limited access to skills

Limited budget Limited agility or resistance to change, due to legacy

systems/collateral

Opporutiny A gap in the market A good relationship with a publicity source Access to a new marketing tool or technology

Threats

New competitor in the market

New regulation affecting marketing practices (e.g.

GDPR)

Escalating rate of

employee churn

(3)

3

or services Digital marketing gives viewers a chance to share the content of the product or services to others. Using digital media, one can easily transfer and get information about the characteristics of the product or services to others.

 Apparent Pricing Company shows the prices of products or services through digital marketing channel and this makes prices very clear and transparent for the customers. Company may regularly change the prices or gives special

2.3 Weakness of digital-marketing

 one of major problems with marketing campaigns is that they take up several offline and online promotional channels such as press, brochure, catalogue, TV, cell phone, e-mail, internet, social media etc., while lack a comprehensive, harmonizing marketing structure. Each item is used separately and accomplished as a different task not as a part of an integrated campaign aiming at the realization of specified and particular objectives. This deficiency can be compensated for by taking a holistic come up to which synchronizes the different traditional and internet age modes of marketing communication as moments of an integrated organization. With respect to the practical, online component of an integrated marketing what is "also worth noting (or reminding) is that like offline marketing, all aspects of online marketing are inextricably connected- and in many cases mutually dependent.

 Internet dealings involve no alive, personal interaction and that is why some customers consider electronic modes of providing customer service impersonal and enjoy the experience of shopping in a bricks and mortar, physical store. They like better to talk to store personnel in a face to face conduct, touch the related product with their hands, and socialize with other customers. Virtual marketplace cannot provide for this function of offline shopping and lacks personal interaction. To be more specific "for the types of products that rely heavily on building personal relationship between buyers and sellers such as the selling of life insurance, and the type of products that requires physical examination, Internet marketing maybe less appropriate.

 It is clear enough that now a day’s customers' data can easily be shared with other companies without asking for their authorization. Moreover, their more crucial personal data such as usernames and passwords are not protected from hackers (Lantos, 2011: 74).

 "online trust includes consumer perceptions of how the site would deliver on expectations, how believable the site's information is, and how much confidence the site commands" (134). These days in spite of the rapid growth of online dealings a number of people still suspect electronic methods of paying and still have doubt whether the purchased items will be delivered or not. On the other hand, occurrence of online fraught has made customers hold negative or doubtful attitudes towards online transactions

2.3 Opportunities due to Digital Marketing

 Reduced Cost - Online advertisements is much cheaper than traditional marketing cost.

 brand Coverage and Development- Online marketing helps to spread the brand across the globe, ignoring the national boundaries and making the product accessible to the scattered customers via internet.

 Convenience to customers: Online marketing is accessible 24X7 and 365 days. The customers can buy from comfort of their homes from variety of offerings to choose from. The transaction can be completed quickly as well

 Digital Marketing enables the product to reach much more easily.The customers can research in detail about the information and specifications on a product. They can also make use of internet during the pre-purchase decisions.

 Increased distribution through increase in customer base and further increase in revenue for the businesses.

 Can respond to competitors’ actions more quickly and with less cost.

(4)

4 2.4 Threats of Digital Marketing

 Cost can be high for businesses including the setup cost, running and maintenance cost.

 Finance charges are imposed by the credit card companies, which in turn affect the total price for the consumers.

 Fraudulent trade practices, hackers and spam issues, which prevent consumers from using online shopping.

 may not be suitable for certain products and customers to encourage purchases.

Marketers selling high price product may not benefit much from E- Commerce.

Problems of overload information on internet, might discourage consumers to make a purchase.

2.5 Major components affecting the Digital Marketing

 India's literacy rate is at 74.04%. Kerala is the most literate state

 in India, with 93.91% literacy. Six Indian states account for about 70% of all illiterates in India: Uttar Pradesh, Bihar, Madhya Pradesh, Rajasthan, Andhra Pradesh and West Bengal. Thus increasing literacy positively effecting the digital marketing growth in India.

 Expensive technology: The mobile and internet rates are very competitive and now it is in reach of a common man also.

 Cost of advertising: The cost of advertising is very low. One can have its own website in just Rs. 5000 in India. One can promote his product on Google with Google AdSense with just Rs.1000 a month.

 Inherited limitation of Technology: In India the youth is very adaptable towards technology but still large population is not so friendly with the electronic gadgets.

 Unavailability of Infrastructure facilities in India: The internet connectivity is still not available in Indian rural areas.

 Believe in Traditional business practices: The small businessman having running its business in a small area and quite focused on that area only then he prefers Traditional ways of Promotion as it he finds it is more visible to the people around.

 Lack of Online Business Experience: Lack of awareness about the digital marketing is also a major limitation in the growth of the digital market.

3 CONCLUSIONS

You do not require a large team to do digital marketing campaigns unlike the traditional manner which in turn saves money, time and labor and also increases the ROI. Damage control of bad reviews or complaints on social media or digital platform is a huge task and can even lead to the closing of businesses. Data Analysis is still a very big concern and very few people are professional in it as not many are able to understand what data actually says. If the digital marketing comes everywhere in a full-fledged manner it will help the country itself to become digital that means major chunk of our population will start leading a life which will be smarter and faster.

With the growth of this digital platforms, customers have become more vocal about their feelings and opinions, and with the availability of this platform they have the power to damage as well as advocate for any brand, which is a high risk for the marketers. Digital marketing has increased in last a few years in India. People have different views about it.

But the fact is this digital marketing has tremendous potential to increase in sales provided businesses should have knowledge to implement it in right way. Benefits like increased brand recognition and better brand loyalty can be gained by effective digital media plan.

Digital marketing campaign help in reduction in costs, boost in inbound traffic and better ranking in search engines.

REFERENCES

1. Rima Dinesh Puri Digital Marketing: Opportunities and Threats 2. Rexjournal ISSN 2321-1067 Renewable Research Journal

3. AfrinaYasmin, SadiaTasneem, KanizFatema Effectiveness of Digital Marketing in the Challenging Age: An Empirical Study

4. 75 ISSN 1849-5664 (online) http://researchleap.com/category/international-journal-of-management- science-and-business-administration ISSN 1849-5419

(5)

5

5. (print) International Journal of Management Science And Business Administration Vol 1. No 5. April 2015., pp. 69-80

6. https://www.targetinternet.com/a-short-guide-to-swot-tows-analysis-for-digital-marketers/

7. AfrinaYasmin, SadiaTasneem, KanizFatema Effectiveness of Digital Marketing in the Challenging Age: An Empirical Study

8. 75 ISSN 1849-5664 (online) http://researchleap.com/category/international-journal-of-management- science-and-business-administration ISSN 1849-5419

9. (print) International Journal of Management Science and Business Administration Vol 1. No 5. April 2015., pp. 69-80

10. https://www.targetinternet.com/a-short-guide-to-swot-tows-analysis-for-digital-marketers

11. G. T. Waghmare, 2012). E-commerce; A Business Review and Future Prospects in Indian Business.Internet Marketing in India.Indian Streams Research Journal, vol. 2, no. IV, (pp. 1-4.

12. Gangeshwer, D. K.(2013). E-Commerce or Internet Marketing: A Business Review from Indian Context” , International Journal of u-and e-Service, Science and Technology Vol.6, No.6, pp.187-194

13. Giese, J. L. and J. A. Gote,(2000).Defining Consumer Satisfaction,. Academy of Marketing Science Review [Online]00 (01)

14. Gurau, C. (2008). Integrated online marketing communication:implementation and management,Journal of Communication Management, vol. 12 no. 2, pp. 169-184

15. Hoge, S, Cecil C. (1993). The Electronic Marketing Manual ABA Journal, 22, 175-185

16. .Krishnamurthy, S. (2006). Introducing E-MARKPLAN: A practical methodology to plan e-marketing activities.Business Horizons. 49(1), 49, 51, 60.

17. Reinartz, Werner J. and V. Kumar. (2003). The Impact of Customer Relationship Characteristics on Profitable Lifetime Duration.Journal of Marketing67 (1): 77-79.

18. Roberts, R. R., and J. Kraynak. (2008). Walk like a giant, sell like a madman. Hoboken,NJ: Wiley.

19. Rowley, Jennifer. (2004). Online branding: the case of McDonald’s.British Food Journal106 (3): 228-237.

20. Salehi M., Mirzaei H., Aghaei M., and Milad A.(2012). Dissimilarity of E-marketing VS traditionalmarketing.International Journal of Academic Research in Business and Social Sciences Vol. 2, No. 1 PP 511-515

21. Sheth, J.N., Sharma, A. (2005). International e-marketing: opportunities and issues.International Marketing Reviewvol. 22 no. 6, 2005 pp. 611-622 Watson, R.P., Leyland, F.P., Berthon, P. and Zinkham, G. (2002). U-commerce: expanding the universe of marketing. Journal of the Academy of Marketing Science, vol. 30 no. 4, pp. 333-47 http://en.wikipedia.org/wiki/Affiliate_marketing

22. http://en.wikipedia.org/wiki/Methodology

23. http://en.wikipedia.org/wiki/Search_engine_optimization 24. http://lexicon.ft.com/Term?term=digital-marketing

25. http://www.amsreview.org/amsrev/theory/giese00-01.html