WHAT IS DIFFERENT BETWEEN MARKETING AND DIGITAL MARKETING

 

Marketing and digital marketing share the same core objectives of promoting a product, service, or brand to reach and engage with a target audience. However, they differ in terms of the channels and strategies they use to achieve these objectives.

1. **Channel:** The most significant difference between marketing and digital marketing is the channel through which they operate:

   - **Marketing**: This term encompasses all traditional marketing channels and techniques that existed before the internet and digital technology became prevalent. This includes methods like print advertising, TV commercials, radio ads, billboards, direct mail, and in-person events.

   - **Digital Marketing**: Digital marketing specifically leverages online and digital channels to reach and engage with an audience. This includes activities like online advertising, content marketing, email marketing, social media marketing, search engine optimization (SEO), pay-per-click (PPC) advertising, and more.

2. **Medium**: The medium used in marketing vs. digital marketing also varies:

   - **Marketing**: Traditional marketing primarily relies on physical mediums and offline channels. For example, print ads appear in newspapers or magazines, TV commercials air on television, and billboards are located in physical spaces.

   - **Digital Marketing**: Digital marketing operates exclusively through online and digital platforms. It makes use of websites, social media, email, search engines, and various other online channels to reach and engage the target audience.

3. **Measurability**: Digital marketing tends to be more measurable than traditional marketing. With digital marketing, you can track various metrics like website traffic, conversion rates, click-through rates, engagement, and more in real time. This data allows marketers to adjust their strategies quickly based on performance. Traditional marketing, on the other hand, is often harder to measure accurately.

4. **Cost**: Digital marketing can often be more cost effective than traditional marketing. Running digital ad campaigns, for instance, can be more budget-friendly than producing and airing TV commercials or printing large quantities of brochures.
5. **Targeting**: Digital marketing allows for precise audience targeting through data analytics and ad targeting tools. This means you can reach a very specific audience based on demographics, behavior, interests, and other factors. Traditional marketing methods typically have a broader reach and may not be as precise in audience targeting.

6. **Global Reach**: Digital marketing has a global reach, allowing you to reach audiences across the world. Traditional marketing is often localized and may not have the same global reach.

7. **Interactivity**: Digital marketing often allows for more interactive and engaging campaigns. For instance, social media marketing enables two-way communication between brands and customers, while traditional marketing methods are usually one-way communication.

In modern marketing, there's often a blend of both traditional and digital strategies to create a comprehensive marketing strategy. This is known as integrated marketing. Marketers consider the specific goals, target audience, and available resources when determining the mix of traditional and digital marketing tactics to use.

HOW TO MEASURE AND MANAGING RETURN ON MARKETING INVESTMENT:

 Measuring and managing return on marketing investment (ROMI) is crucial for businesses to ensure that their marketing efforts are delivering a positive impact on their bottom line. Here's a step-by-step guide on how to effectively measure and manage ROMI:

 

1. Set Clear Goals and Objectives:

   - Define specific, measurable, and realistic marketing goals. These could include increasing sales, lead generation, brand awareness, or customer retention.

 

2. Establish Key Performance Indicators (KPIs):

   - Identify the key metrics that align with your marketing goals. Common KPIs include revenue, customer acquisition cost (CAC), customer lifetime value (CLV), conversion rates, website traffic, and social media engagement.

 

3. Track and Collect Data:

   - Implement tools and systems to track and collect relevant data. This may include website analytics, CRM systems, email marketing software, and social media analytics.

 

4. Calculate ROMI:

   - ROMI is typically calculated using the formula: (Net Profit from Marketing - Marketing Costs) / Marketing Costs. This formula gives you a percentage or ratio, which indicates how much revenue you're generating for every dollar/tk. spent on marketing.

 

5. Attribution Modeling:

   - Understand how different marketing channels contribute to conversions. Attribution models help you allocate credit to each channel in the customer's journey. Common attribution models include first-touch, last-touch, linear, and time decay.

 

6. Monitor Marketing Costs:

   - Keep a close eye on all marketing expenditures, including advertising, personnel, software, and other associated costs.

 

7. Segment and Analyze Data:

   - Break down data by different segments, such as demographics, geography, or product lines, to identify which areas are generating the best ROMI.

 

8. A/B Testing:

   - Conduct A/B tests to compare the performance of different marketing campaigns, channels, and strategies. This allows you to optimize your efforts for better results.

 

9. Customer Lifetime Value (CLV):

   - Consider the long-term value of customers acquired through your marketing efforts. A high CLV can offset the initial acquisition costs and boost ROMI.

 

10. Use Marketing Analytics Software:

    - Utilize marketing analytics tools and software to streamline data collection and reporting, making it easier to analyze and manage your ROMI.

 

11. Regularly Review and Adjust:

    - ROMI is not a one-time calculation. Continuously monitor your marketing efforts and adapt your strategies based on the insights you gain from ongoing data analysis.

 

12. Benchmarking:

    - Compare your ROMI with industry benchmarks to see how your marketing efforts stack up against competitors.

 

13. ROI Optimization:

    - Focus your marketing budget on the channels and strategies that are generating the highest ROMI and consider scaling back or discontinuing those with lower returns.

 

14. Cross-Channel Integration:

    - Ensure that your marketing efforts are integrated across channels (e.g., online and offline) for a more comprehensive view of your ROMI.

 

15. Communication and Collaboration:

    - Encourage open communication between marketing and finance teams to align objectives and understand the financial impact of marketing activities.

 

16. Report and Communicate:

    - Share ROMI insights and results with stakeholders and decision-makers to secure ongoing support and make data-driven decisions.

 

Remember that measuring and managing ROMI is an ongoing process. By consistently tracking and optimizing your marketing activities, you can improve your return on investment and make more informed decisions regarding your marketing budget and strategy.

WHAT IS 'NICHE MARKETING'

Definition: Niche marketing is defined as channeling all marketing efforts towards one well-defined segment of the population. There is one important thing to understand that ‘niche’ does not exist but is created by smart marketing techniques and identifying what the customer wants.

Description: Niche marketing is a marketing tactic deployed to target a specific market segment that is unique. A niche market is often created by identifying what a customer wants and this can be done if the company knows what the customer needs and then tries to deliver a better solution to a problem that was not presented by other firms. A niche market does not mean a small market, but it involves a specific target audience with a specialized offering. By doing so, the company becomes a market leader and it becomes possible for other firms to enter that particular segment. For example, there are various cinema halls across India, but there are few which have recliner seats to offer. Not everybody wants to watch a movie by paying 5x-6 times the cost of a normal ticket. Hence, the target audience is very different and the hall is also only open at places where the company feels that it would be able to tap into the target audience, especially in posh areas.

There are various advantages of niche marketing. One of the benefits of a niche market is that there is no or little competition under that segment. The company is virtually the market leader and enjoys a price monopoly. Another benefit is the strong relationship with the customers because of the fact that the company operates in a small segment, the relationship between the company and the brand becomes stronger which is also a key to customer loyalty. Niche businesses are often high-margin businesses. Customers do not mind paying a little extra because they are only able to get that service in that company or under its brand.

WHAT IS OUTBOUND MARKETING !

Outbound marketing is a traditional marketing approach that involves a company or organization actively reaching out to potential customers or clients through various outbound channels. Outbound marketing, also known as traditional marketing, is a promotional strategy in which a company initiates communication and sends its message to a wide audience. Here are some more details about outbound marketing:

1. **Channels**: Outbound marketing uses several channels to push its message, including television and radio commercials, print advertisements (newspapers and magazines), direct mail, cold calls, email marketing, trade shows, billboards, and display advertising. 

2. **Interruptive**: It's often considered interruptive marketing because it aims to interrupt or capture the attention of potential customers, even if they may not have expressed prior interest in the product or service being promoted.

3. **Wide Reach**: Outbound marketing typically targets a broad audience with the hope of reaching potential customers who might be interested. This approach is more focused on quantity than quality and aims to cast a wide net.

4. **Controlled Message**: Companies have more control over the message they want to convey in outbound marketing. They can design the message and choose the channels through which it's delivered.

5. **Measurability**: Outbound marketing can be challenging to measure accurately. While some metrics like response rates or conversion rates can be tracked, it's often more challenging to gauge the effectiveness of individual campaigns.

6. **Cost**: Outbound marketing can be expensive, especially for small businesses, due to the costs associated with advertising, printing, and other promotional activities. It typically requires a significant budget to reach a broad audience.

7. **Declining Effectiveness**: In recent years, outbound marketing has become less effective as consumers have become more adept at blocking or ignoring advertisements, thanks to technologies like ad blockers and caller IDs.

8. **Intrusiveness**: Many consumers find outbound marketing techniques intrusive, which can lead to negative perceptions of a brand if not executed thoughtfully.

9. **Legal Considerations**: Outbound marketing methods, such as cold calling and email marketing, are subject to various laws and regulations, such as the Telephone Consumer Protection Act (TCPA) and the CAN-SPAM Act, to protect consumers from unwanted solicitations.

In contrast to outbound marketing, inbound marketing focuses on attracting potential customers through the creation of valuable content and engaging strategies. Inbound marketing aims to pull customers in by addressing their specific needs and interests, often resulting in a more engaged and qualified audience. It is considered a more customer-centric and cost-effective approach, especially in the digital age, where consumers have greater control over the content they engage with.