India, the fastest growing large economy in the world, is still popularly known as the country of villages. Around 70% Indians are still staying in 6.5 lakhs villages with 50% of nation’s population heavily dependent on agriculture. Heavy dependence on agriculture is one of the reasons of poverty in rural India. This can be very well observed from the big gap in per capita income of urban and rural parts of India. As per statistics of 2012-13, urban per capita income was INR 1,01,313 while rural per capita income was INR 40,772. Most of the businesses and consumer demand were concentrated in urban areas which have very small pie of total population. Improvements in Rural IndiaWith improvement in infrastructure, villages came closer to cities. Mobile and, to some extent, internet brought villages closer to urban population further and hence, rural India became familiar to urban lifestyle. This motivated rural people to increase prosperity and improve their lifestyle. This motivation along with availability of easy capital through micro finances and governments’ schemes helped rural India to set up side businesses related to agriculture. Notable examples of these businesses are Poultry, Milk, honey etc. These activities have started bridging the gap between per capita income of urban and rural India. Consequently, disposable income in hands of rural Indians increased thereby increasing demand of various products which were being sold in urban India only. Revenue opportunities in rural India for businessesPost-independence, economic growth happened mostly in and around metro cities like Mumbai, Delhi, Chennai, Kolkata, Bangalore, Pune etc. Post liberalization, small cities like Indore, Bhopal, Nashik etc. started growing. Most of the consumer companies till 2005 were more focused only on urban area. As cities started saturating due to high population and low opportunities, many consumer product companies faced stagnant revenues. Hence, it became important for organizations to enter into rural areas to sell their products and achieve targeted revenue growth. Companies introduced their products in new (rural) geographies to create new product cycles as existing product cycles in urban areas had reached saturation for many products. Firms came up with many rural specific programme, for ex, Shakti by HUL. FMCGs also came up with rural specific small packs and advertised them in yearly rural fun fairs to generate product demand. To cater growing rural demand, auto companies like TATA Motors started ‘Neev’ which is rural specific programme. How will digital marketing help businesses?10 years back, it was very difficult to get mobile network in rural India. With rising competition in telecom industry, need of increasing customer base and high band width, mobile usage has grown in villages. No. of mobile users in rural India has gone up. Though feature phone volumes are higher than smart phone volumes, we can easily observe the shift towards smart phones with entry of next generation in rural employment. Social media tools like Facebook and YouTube are at nascent stage but have started gaining momentum (though twitter has long way to go in rural India). Also, rural market brings lot of demand for consumer products. Between 2009-2016, this industry has grown by 13% annually. With consecutive above average monsoon seasons, incomes in rural India will rise steadily and it will become difficult for companies to grab the available market. For such cases, digital can be a good option as people using internet will become influencers in most of the villagers as people using smart phone and internet are considered as smart and intelligent ones in the village. Companies, especially in consumer goods place, should start targeting people with smart phones and internet connections who in turn will spread word of mouth across locations. Businesses should start taking every Facebook user seriously as she/ he will be a big influencer in near future. How will rural India benefit from digital?With digital, information flow to rural people will become easier. Info regarding weather, daily rates of crops, milk and milk products, poultry etc. can be made available on mobile phone either by government or by NGOs. This will increase not only farm efficiencies but also the market understanding of farmers. In addition, training on advanced farming techniques and use of proper fertilizers can be done across many villages at a time. Many Indian villagers have capability to produce user specific products but they cannot be sold in cities where demand for such products is available. Online merchandizers can extend their services for such products so that they can be sold in cities. ‘Okhai’ is one such initiative by TATA trusts to connect Gujrati rural women with cities where rural products can be sold directly. In long term, digital will help to increase the consumption in rural India and will also create employment opportunities, thereby increasing disposable income- this in turn will have positive effect on economic growth of the country.
As you can see there are number of ways brands can use digital marketing to benefit their marketing efforts. The use of digital marketing in the digital era not only allows for brands to market their products and services, but also allows for online customer support through 24/7 services to make customers feel supported and valued. The use of social media interaction allows brands to receive both positive and negative feedback from their customers as well as determining what media platforms work well for them. As such, digital marketing has become an increased advantage for brands and businesses. It is now common for consumers to post feedback online through social media sources, blogs and websites on their experience with a product or brand. It has become increasingly popular for businesses to use and encourage these conversations through their social media channels to have direct contact with the customers and manage the feedback they receive appropriately.Word of mouth communications and peer-to-peer dialogue often have a greater effect on customers, since they are not sent directly from the company and are therefore not planned. Customers are more likely to trust other customers’ experiences. It is increasingly advantageous for companies to use social media platforms to connect with their customers and create these dialogues and discussions. The potential reach of social media is indicated by the fact that in 2015, each month the Facebook app had more than 126 million average unique users and YouTube had over 97 million average unique users.TIR IT-business management (BPM) sector in India has been estimated to expand at a CAGR of 9.5 cent to US$ 300 billion by 2020.
Interaction in the New Millennium 2000 – 2010
“We are changing the world with technology.”
– Bill Gates
In order to stay ahead in the ever-evolving digital world, businesses must embrace
change. However, with new technological trends, it can be difficult for managers to
not only find the right option for their company but also discover how to utilize it
effectively. In order to fight this uncertainty, it is vital that we first look to the past. By
studying the rise of the digital marketplace as we know it today, we can avoid falling
victim to the pitfalls of history and use these lessons to help reach towards the
Dusting off the history books, Monnet Digital India presents the blog studying the
evolution of digital marketing. As we know , the 1990’s provided the initial growth of
the online world, cumulating in the rise of the first social media platform and an
avalanche of new search engine sites. As internet access grew and the presence
of broadband began to expand, the marketplace started to shift towards the major
players. From this upheaval, the very use of the internet itself faced evolution. By
continuing our journey through the digital past, we can view this crucial shift with a
fresh perspective and apply it towards our role in the coming decades.
A New Digital Partnership
With the burst of the internet bubble in 2000, the smaller search engines faced
elimination to make room for the giants of the time, opening the door for Yahoo and
Google to continue to navigate the changing digital world. Facing a major shift with
the emergence of Web 2.0 in 2004, the role of users began to change. Broadband
Internet, improved browsers and the development of widgets along with increased
accessibility, began to define this new era of technological interaction between the
digital marketplace and users.
Due to this new personalized approach, internet advertising and marketing in the
United States topped $12.6 billion in 2005. This cumulated into massive growth in
2006 with 81 percent of Internet users worldwide utilizing a search engine site in
December alone. In order to stay competitive, Microsoft launched Live Search;
however, Google was once again ahead of the curve with their increased expansion
of AdWords. Originally launched in 2000, the system worked to capitalize on content
analysis in order to target ads based on the interest of the users, thus propelling
Google to become the eventual multi-billion dollar business it is today.
To capitalize, businesses renewed their commitment to the field of strategic e-
commerce after the initial internet overload that plagued the first year of the
millennium. Although originally created in the 70’s, the popularity of online
companies such as eBay and Amazon breathed new life into the world of electronic
shopping, ultimately changing the way business was conducted. Powered by eBay’s
acquisition of PayPal in 2002 for $1.5 billion and encouraged by Amazon facing its
first profitable year in 2003, niche online retailers such as Wayfair began to break the
mould. Founded on the concept of selling products through several targeted
domains, rather than a central portal, consumers were easily able to access these
sites simply by surfing the web, as opposed to directly inputting the address.
By 2007, 68% of users had experience online shopping, creating increased
competition for businesses to optimize their search engine results. As Google and
Yahoo continued to pave the way, the role of social media was still in the distance.
Although LinkedIn was born in 2002, closely followed by the more widely
known Myspace, their role as business players were non-existent. Facebook was
released to the college networks in 2004 and Twitter launched primarily as a
celebrity outlet in 2006. YouTube and Tumblr also developed its roots in the mid-
2000’s. Although these platforms were in their early stages of gaining a widespread
public following, they would eventually become major advertising players in the
Embracing the Change
The new millennium ushered in a redefined online partnership between businesses
and consumers. With increased interaction and customized ad solutions, companies
were able to better utilize their budget and reconnect with their clients by ditching the
cookie-cutter concept for a personalized marketing approach.
The Evolution of Digital Marketing: From 2010-2020
As you can see there are number of ways brands can use digital marketing to benefit
their marketing efforts. The use of digital marketing in the digital era not only allows
for brands to market their products and services, but also allows for online customer
support through 24/7 services to make customers feel supported and valued. The
use of social media interaction allows brands to receive both positive and negative
feedback from their customers as well as determining what media platforms work
well for them. As such, digital marketing has become an increased advantage for
brands and businesses. It is now common for consumers to post feedback online
through social media sources, blogs and websites on their experience with a product
or brand. It has become increasingly popular for businesses to use and encourage
these conversations through their social media channels to have direct contact with
the customers and manage the feedback they receive appropriately.
Word of mouth communications and peer-to- peer dialogue often have a greater
effect on customers, since they are not sent directly from the company and are
therefore not planned. Customers are more likely to trust other customers’
experiences. It is increasingly advantageous for companies to use social media
platforms to connect with their customers and create these dialogues and
discussions. The potential reach of social media is indicated by the fact that in 2015,
each month the Facebook app had more than 126 million average unique users and
YouTube had over 97 million average unique users.
TIR IT-business management (BPM) sector in India has been estimated to expand at
a CAGR of 9.5 cent to US$ 300 billion by 2020.
The marketing of products or services using digital channels on Internet are called Digital Marketing. Digital Marketing is the best and only active way to reach millions of customers / users by spending less Time, cost & efforts.
Today in 2017, Digital media is an ever-growing source of entertainment, news, shopping and social interaction, and consumers are now exposed not just to what your company says about your brand, but what the media, friends, relatives, peers, etc.
The key objective is to promote brands through various forms of digital media. Digital marketing extends beyond internet marketing to include channels that do not require the use of the internet.
keys to digital marketing success
1. Manage complex customer relationships across a variety of channels Ė both digital and traditional.
2. Respond to and initiate dynamic customer interactions.
3. Extract value from big data to make better decisions faster.
4. Using a digital plan to support digital transformation
Growth of Digital Marketing Industry in India
Digital Marketing Industry in India is at the peak right now and will continue to grow. Letís take a minute to think about how our behavior, the way we communicate has changed in the past 5 years, a few years back, people were skeptical to buy online, we never thought we would buy groceries, furniture, cloths online but now we book our shows online, tickets, everything is online and in mobile.
Digital Marketing industry in India is spread to almost all the business sectors. Some of the applications of E-Marketing are shopping and order tracking, online banking, payment systems and content management.
The power of digital marketing allows geophysical barriers to disappear making all consumers and businesses on earth potential customers and suppliers. It is known for its ability to allow business to communicate and form a transaction anywhere and anytime.
Digital marketing industry in India is a booming career today. In a country with a rapid growth economy, it is expected to have a very high significant growth in Digital marketing career. The growth in the digital marketing trends is making a very substantial impact on marketing and advertisement.
Future of digital marketing in India?
Digital Marketing is a booming career option today in India. With striking features like cost-
effectiveness, instant response, flexibility, convenience, effectiveness, Digital Marketing is making a strong impact in the world of
Marketing and Advertising. The future scope of the Digital Marketing industry is that there will be more points of contact. Right from the day of assuming power, Digital India and Make in India have been two big LJSPs of Prime Minister Narendra Modi.
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