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According to Wikipedia, Digital Marketing is an umbrella term for the targeted, measurable,
and interactive marketing of products or services using digital technologies to reach and conv
ert leads into customers and retain them. The key objective is to promote brands, build prefer
ence and increase sales through various digital marketing techniques. It is embodied
by an extensive selection of service, product and brand marketing tactics, which mainly use t
he Internet as a core promotional medium, in addition to mobile and traditional TV and radio

Social Media Marketing:

Social media refers to the means of interactions among people in which they create, share, an
d exchange information and ideas in virtual communities and networks. And Social
Media .
Marketing is the process of gaining website traffic or customer attention through social media
sites like Facebook, Pinterest, Google+, Instagram etc. in order to achieve marketing or bradi
ng goal. 18 Facebook Marketing: Facebook marketing is the process of engaging,
involving and retaining customers through
advertisements and attractive contents. Facebook is a powerful marketing tool and this is
most used social networking site where you can find customers of all ages and tastes. It's a gr
eat space to keep customers informed, develop brand identity, and broaden your reach.
There are some terms that are highly used when doing task of Facebook marketing or
social media management. Advertising Objectives: Facebook offers many advertising
objectives to help you reach your business goals.
Your advertising objective is what you want people to do when they see your ads. For exampl
e, if you want to show your website to people interested in your business, you can
create ads that encourage people to visit your website. When you create an ad, you first choos
e your objective. The objective you choose aligns with your overall business goals:
Awareness: Objectives that generate interest in your product or service.
Consideration: Objectives that get people to start thinking about your business and look for m
ore information about it.
Conversions: Objectives that encourage people interested in your business to purchase or use
your product or service.
Page views:Page views are the number of times a Page's profile has been viewed by people, i
ncluding people who are logged into Facebook and those who aren't. Reach:
This is the number of people who saw any of your Page posts. Reach can be broken down int
o people who saw your posts with or without advertising (paid or organic posts). 19
Impressions:
Measure how often your ads were on screen for your target audience. An impression is count
ed as the number of times an instance of an ad is on screen for the first time. (Example: If an
ad is on screen and someone scrolls down, and then scrolls back up to the same ad, that count
s as 1 impression. If an ad is on screen for someone 2 different times in a day that counts as 2
impressions.) Since impressions are counted the same way for ads that contain either images
or video, a video is not required to start playing for the impression to be counted.
CPC (Cost per Link Click): The average cost for each link click. How It's Used
CPC shows how much, on average, each link click costs you. CPC is a metric used in the onli
ne advertising industry for benchmarking ad efficiency and performance.
How It's Calculated The metric is calculated as the total amount spent divided by link clicks.
CPM (Cost per 1,000 Impressions): The average cost for 1,000 impressions. How It's Used
CPM is a common metric used by the online advertising industry to gauge the cost‐effectiven
ess of an ad
campaign. It's often used to compare performance among different ad publishers and campaig
ns.
How It's Calculated
CPM measures the total amount spent on an ad campaign, divided by impressions, multiplied
by 1,000. (Example: If you spent $50 and got 10,000 impressions, your CPM was $5.)
Insights:
With insights it can be overviewed how many people liked, shared or commented on your ad.
20 Post engagement: The total number of actions that people take involving your adverts.
How It's Used Post engagement indicates that your ads are relevant to your target
audience, which helps your ads
perform better. When people see ads that are relevant to them, they're more likely to interact
with those ads. This metric lets you measure these interactions and compare them to engagem
ent from other ads or campaigns. How It's Calculated Post engagement includes all
actions that people take involving your ads while they're running. Post
engagements can include actions such as reacting to, commenting on or sharing the ad, claimi
ng an offer, viewing a photo or video, or clicking on a link. 3.4 Web Analytics:
The other major task was to implement Google Analytics so that the consumer behavior on th
e website may be studied in detail. Using this data, proposals were to be made to
improve conversion rates as well as bring down bounce rate. In
this discussion, Conversion rate is the percentage of web visitors to the site who initiate and c
omplete a purchase. Bounce rate is the percentage of web visitors who leave the website at th
e landing page without browsing through any other pages. These two terms are KPIs
(Key Performance Indicators) for any e‐commerce business and represent the efficiency of th
e marketing campaigns employed. A digital marketing campaign may result in a large
number of visitors to the page; however without steady
conversions and limited bounces, these may not provide any economic value to the company.
Google Analytics: Google Analytics provide free digital analytics for any
firm with a web presence and is free of cost. This combination makes it the most popular solu
tions for web analytics currently under use.
The following represents a summary for quick reference about Google Analytics.
Actionable Insights:
An actionable insight is a piece of information that enables an individual to make well‐inform
ed decisions. Google Analytics provides a plethora of actionable insights Support quality:
Though Google does not provide direct support; extensive trouble‐shooting guides and suppo
rt are available online through several forums, including their official product forums site.
UI and Accessibility: The tool is easy to use, and the dashboard quality is also quite high.
Implementation:
The basic implementation is quite easy, as it just involves adding a line of code in to the page.
For advanced implementation such as sub domain, cross domain tracking,
e‐commerce tracking, event tracking, custom variables, virtual page views and filters, require
s specialized professionals.
Pricing: Google Analytics is free up to 10 million hits per month. Acquisition:
Acquisition data is information on how people land up on our site and how they engage with
our pages. We directly get the information on the breakup of different sources of traffic. Furt
her, we can see the engagement data for each segment of users. 22 Behavior: With this
segment in Google Analytics we came to know about the number of users who are
returning to our sites and who are new visitors to our sites.
Mobiles/Desktop/Tablets Overview:
By this, we can recognize that how many users are visiting a site via mobile or desktop
or tablet.
Audience:
On the basis of age and gender, we can examine that which age group and gender are interest
ed in visiting NRBBazaar.com 3.6 E‐mail Marketing:
According to Wikipedia, Email marketing is the act of sending a commercial message, typica
lly to a group of people, using email. Email marketing isn't something marketers do just beca
use they can and it's easy. The tactic is very effective at helping business owners and
consumers stay connected. In fact, consumers often seek out email marketing
campaigns from their favorite brands and local stores. 3.7 Google AdWords:
It is an online advertising service developed by Google, where advertisers pay
to display brief advertising copy, product listings, and video content within the Google ad net
work to web users. 3.8 Search Engine Optimization (SEO):
Search engine optimization (SEO) is the practice of increasing the quantity and quality of traf
fic to your website through organic search engine results. It mainly depends on meta
keywords tagging. Meta keywords are the words with which audience search for
something. A website
requires meta description, meta keywords, meta titles for effective search engine optimization
. A marketing strategy is a business's overall game plan for reaching people and turning them
into customers of the product or service that the business provides. The marketing strategy of
a company contains the company’s value proposition, key marketing messages, information
on the target customer and other high-level elements.

1.1.2 Factors forming Marketing Strategies

1) Long term objectives of the firm
The vision of the firms plays a crucial role in forming a marketing strategy for the
organization. The vision defines where the firm wants to be in the long term.
2) Actions which need to be taken
The mission statement is another important part of the marketing strategy and it defines
exactly what actions need to be taken by the firm.
3) Strategic plans
Exactly how a firm will achieve its mission is known as the strategic plan. This involves
various steps such as getting to know the firms strengths and weaknesses, formulating a
product strategy, knowing the marketing mix, and then planning resources which will be
needed to implement the plan.
4) Tactics
Tactics are generally not included in long term strategic plans, however, tactics are important
for the organization to achieve short term goals and hence they can be formulated along with
the marketing strategy. Tactics may include giving sales discounts, addition promotional
support, or any such support which motivates the customer to buy the product.
Once all the above factors are in place, your marketing strategy is formed. Forming a
marketing strategy is much simpler than actually implementing it. This is where the
marketing plan plays a crucial role. The marketing plan plays a role of a reminder wherein it
reminds the management again and again of its marketing strategy and the road map to
organizations success.
Digital marketing is a combination of many online marketing tools. These are SEO,
social media marketing and management, PPC, content marketing, e‐mail marketing, AdWor
ds, etc.

Figure: Major focus areas of Digital Marketing

E‐Commerce:
Commonly known as Electronic Marketing. It consist of buying and
selling goods and services over an electronic systems Such as the internet and other computer
networks. In other words, E‐commerce is the purchasing, selling and exchanging goods and s
ervices over computer networks (internet) through which transaction or terms of sale are perf
ormed electronically.
1.1.3 Major Bank Marketing Strategies
1. Target Different Demographics
Most bank marketing strategies target general audiences or wide audiences such as millennial
and baby boomers. Your bank may have more success if you target local, specific, and
smaller demographics. For example, if you can identify that your bank offers services
specifically valuable to Gen Z students graduating high school and moving into university
and college, you could create a strong marketing campaign geared at them. Similarly, if your
services are better for middle-income baby boomers looking to start a savings program for
retirement, you could create a strong marketing campaign. Even targeting a local audience
will help you create more specific offerings and marketing so that you can more easily
differentiate yourself from competitors.
2. Adopt New Technologies
Not every new technology will benefit your bank but staying on top of technology trends and
curves will help you to stay competitive. For example, big banks are integrating automation
and AI to create 24/7 customer service, automated approval for loans and mortgages, and
even custom and personalized services. You should, at the least, offer strong digital banking
and an app to cater to millennial and Generation Z audiences. However, if you do choose to
adopt the technology, you should ensure that what you are offering is high quality.
Can chat bots and similar technologies actually help? If you look at your chat bot as
something of an interactive FAQ, they’re often much more helpful than an exhaustive FAQ,
simply because customers can find answers more quickly and can ask questions in more
intuitive ways
3. Push Digital Apps and Services
Today, an estimated 77% of the U.S. population has an active social media account.
The same percentage of Americans also own smart phones. Many individuals are moving
away from in-person banking and towards digital banking, which is convenient, easy to use,
and often significantly faster. If you have a quality digital app or web portal and ideally both,
you should push it and market it to your entire audience. You can do so by creating marketing
campaigns and social media campaigns, but also by offering training, safety information, and
tutorials geared towards older users who might not be as tech-savvy as younger generations.
Why is this great bank marketing strategy? Americans are becoming less and less interested
in going to physical banks and by telling them you have digital services, you tell them they
don’t have to.
4. Return Value to Customers
Most customers are bringing you a great deal in value, it’s important that you return the
favour. This may mean reviewing and revamping your services, cutting old products that are
no longer delivering for customers and streamlining your processes and services to improve
what you offer to the customer.
For example, what actual benefits do your customers get by using your products over those of
your competitors? If there are none, your best marketing strategy may be to approach your
product offerings and redesign them into something more relevant to now and then rebrand
your bank and services accordingly. For example, while many banks have traditionally
offered standard packages for loans, bank accounts, savings accounts, and other services,
most modern consumers benefit from flexible and modular packages where they can simply
add on or remove services at-will, especially if they can do so online with limited time till
approval.

5. Focus on Customer Outreach

Customer outreach is increasingly important as a marketing strategy, simply because many
banks are focusing on digital and social media marketing. Connecting with consumers on a
one-to-one basis and actually making human connections can do significantly more for
customer relationships than any amount of online marketing. However, you will have to add
real value to customer outreach. For example, you can choose to offer courses and workshops
on financial literacy, online security, or even mobile banking. You can also choose to give
quick one-on-one consultations, offer insight into investment portfolios, or whatever else
suits your bank’s brand and customer demographic.
It’s also important that your representatives at outreach events have the training to offer
warm, friendly, and most importantly, helpful advice and assistance without selling your
products and services. Outreach should always be about building relationships, not about
making sales.

6. Integrate Personalization with Big Data

Most banks have more data then they know what to do with. Yours is no exception. Making
big data part of your bank’s marketing strategy is an important consideration because you can
use it to offer better, more tailored, and more personalized products and services. For
example, you can use simple automation algorithms to recommend products and services to
customers based on previous usage. You can auto-approve individuals for loans and
mortgages, so they can see what they qualify for and their interest rates before they ever shop
with a competitor. You can also use big data to recommend account upgrades and changes at
key moments, such as when individuals are graduating from college, buying their first home,
or purchasing a car. You already have the data; you just have to use it.

7. Get Smart with Loyalty Programs

Loyalty programs are one of the oldest bank marketing strategies out there, but they don’t
have to be about collecting points through a credit card (although this is still a viable tactic).
Good loyalties programs reward customers for actively engaging with and using the bank and
should typically focus on incentivizing the customer to stay with your bank.
For example, Wells Fargo offers customer discounts in the form of free ATM usage, reduced
loan and mortgage interest rates, and even slightly increased interest rates on CDs and
savings accounts. Customers have to enrol in specific programs like auto-pay to qualify and
have to be in the most active customers. Why does this work more than points? It costs you
the same to produce but provides every customer with a real and tangible value they will see
and compare to the rates offered by other banks.

8. Put Customer Experience First

Modern marketing and consumerism are all about experience. If you can’t offer customers a
quality experience, from your digital platform and app to your physical bank branches to
calling customer service, you won’t succeed. Focusing on creating a positive, helpful, and
quality experience for each customer, every time they interact with your bank is possibly the
most important thing you can do. This doesn’t necessarily mean you have to exceed
expectations or delight the customer, it only means that you have to offer strong, stable, and
quality solutions, should consistently offer value to the customer and should focus on being
there for the customer first.
Your bank’s marketing strategies will define how you approach your customers, how
customers see you, and even who you market towards. However, adopting the right strategies
will put you on track to getting ahead of the competition.
1.2 About the Industry
1.2.1 Banking Industry
Bank
A bank is a financial institution that accepts deposits from the public and creates cr. . Lending
activities can be performed either directly or indirectly through capital markets. Due to their
importance in the financial stability of a country, banks are highly regulated in most
countries. Most nations have institutionalized a system known as fractional reserve
banking under which banks hold liquid assets equal to only a portion of their current
liabilities. In addition to other regulations intended to ensure liquidity, banks are generally
subject to minimum capital requirements based on an international set of capital standards,
known as the Basel Accords.
Banking in its modern sense evolved in the 14th century in the prosperous cities
of Renaissance Italy but in many ways was a continuation of ideas and concepts
of credit and lending that had their roots in the ancient world. In the history of banking, a
number of banking dynasties – notably, the Medicis, the Fuggers, the Welsers,
the Berenbergs, and the Rothschilds – have played a central role over many centuries.
The oldest existing retail bank is Banca Monte dei Paschi di Siena, while the oldest
existing merchant bank is Berenberg Bank.

The Bank of England, established in 1694.

History
The concept of banking may have begun in ancient Assyria and Babylonia, with merchants
offering loans of grain as collateral within a barter system. Lenders in ancient Greece and
during the Roman Empire added two important innovations: they
accepted deposits and changed money. Archaeology from this period in ancient
China and India also shows evidence of money lending.
More modern banking can be traced to medieval and early Renaissance Italy, to the rich cities
in the centre and north like Florence, Lucca, Siena, Venice and Genoa.
The Bardi and Peruzzi families dominated banking in 14th-century Florence, establishing
branches in many other parts of Europe. One of the most famous Italian banks was
the Medici Bank, set up by Giovanni di Bicci de' Medici in 1397.[3] The earliest known state
deposit bank, Banco di San Giorgio (Bank of St. George), was founded in 1407
at Genoa, Italy.
Modern banking practices, including fractional reserve banking and the issue of banknotes,
emerged in the 17th and 18th centuries. Merchants started to store their gold with
the goldsmiths of London, who possessed private vaults, and charged a fee for that service. In
exchange for each deposit of precious metal, the goldsmiths issued receipts certifying the
quantity and purity of the metal they held as a bailee; these receipts could not be assigned;
only the original depositor could collect the stored goods.

Sealing of the Bank of EnglandCharter (1694), by Lady Jane Lindsay, 1905.

Gradually the goldsmiths began to lend the money out on behalf of the depositor, which led
to the development of modern banking practices; promissory notes (which evolved into
banknotes) were issued for money deposited as a loan to the goldsmith. The goldsmith paid
interest on these deposits. Since the promissory notes were payable on demand, and the
advances (loans) to the goldsmith's customers were repayable over a longer time period, this
was an early form of fractional reserve banking. The promissory notes developed into an
assignable instrument which could circulate as a safe and convenient form of money backed
by the goldsmith's promise to pay, allowing goldsmiths to advance loans with little risk
of default. Thus, the goldsmiths of London became the forerunners of banking by creating
new money based on credit.
The Bank of England was the first to begin the permanent issue of banknotes, in 1695.
The Royal Bank of Scotland established the first overdraft facility in 1728. By the beginning
of the 19th century a bankers' clearing house was established in London to allow multiple
banks to clear transactions. The Rothschilds pioneered international finance on a large scale,
financing the purchase of the Suez canal for the British government.

Etymology
The word bank was taken Middle English from Middle French banque, from
Old Italian banco, meaning "table", from Old High Germanbanc, bank "bench, counter".
Benches were used as makeshift desks or exchange counters during
the Renaissance by Jewish Florentine bankers, who used to make their transactions atop desks
covered by green tablecloths.

Definition
The definition of a bank varies from country to country. See the relevant country pages under
for more information.
Under English common law, a banker is defined as a person who carries on the business of
banking by conducting current accounts for his customers, paying cheques drawn on him/her
and collecting cheques for his/her customers.
In most common law jurisdictions there is a Bills of Exchange Act that codifies the law in
relation to negotiable instruments, including cheques, and this Act contains a statutory
definition of the term banker: banker includes a body of persons, whether incorporated or
not, who carry on the business of banking' (Section 2, Interpretation). Although this
definition seems circular, it is actually functional, because it ensures that the legal basis for
bank transactions such as cheques does not depend on how the bank is structured or
regulated.
The business of banking is in many English common law countries not defined by statute but
by common law, the definition above. In other English common law jurisdictions there are
statutory definitions of the business of banking or banking business. When looking at these
definitions it is important to keep in mind that they are defining the business of banking for
the purposes of the legislation, and not necessarily in general. In particular, most of the
definitions are from legislation that has the purpose of regulating and supervising banks
rather than regulating the actual business of banking. However, in many cases the statutory
definition closely mirrors the common law one. Examples of statutory definitions:
 "banking business" means the business of receiving money on current or deposit account,
paying and collecting cheques drawn by or paid in by customers, the making of advances
to customers, and includes such other business as the Authority may prescribe for the
purposes of this Act; (Banking Act (Singapore), Section 2, Interpretation).
 "banking business" means the business of either or both of the following:
1. Receiving from the general public money on current, deposit, savings or other similar
account repayable on demand or within less than [3 months] ... or with a period of
call or notice of less than that period;
2. Paying or collecting cheques drawn by or paid in by customers.
Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct credit, direct
debit and internet banking, the cheque has lost its primacy in most banking systems as a
payment instrument. This has led legal theorists to suggest that the cheque based definition
should be broadened to include financial institutions that conduct current accounts for
customers and enable customers to pay and be paid by third parties, even if they do not pay
and collect cheques

Standard business
Banks act as payment agents by conducting checking or current accounts for customers,
paying cheques drawn by customers in the bank, and collecting cheques deposited to
customers' current accounts. Banks also enable customer payments via other payment
methods such as Automated Clearing House (ACH), Wire transfers or telegraphic
transfer, EFTPOS, and automated teller machines (ATMs).
Banks borrow money by accepting funds deposited on current accounts, by accepting term
deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money by
making advances to customers on current accounts, by making instalment loans, and by
investing in marketable debt securities and other forms of money lending.
Banks provide different payment services, and a bank account is considered indispensable by
most businesses and individuals. Non-banks that provide payment services such as remittance
companies are normally not considered as an adequate substitute for a bank account.
Banks can create new money when they make a loan. New loans throughout the banking
system generate new deposits elsewhere in the system. The money supply is usually
increased by the act of lending, and reduced when loans are repaid faster than new ones are
generated. In the United Kingdom between 1997 and 2007, there was an increase in the
money supply, largely caused by much more bank lending, which served to push up property
prices and increase private debt. The amount of money in the economy as measured by M4 in
the UK went from £750 billion to £1700 billion between 1997 and 2007, much of the
increase caused by bank lending. If all the banks increase their lending together, then they
can expect new deposits to return to them and the amount of money in the economy will
increase. Excessive or risky lending can cause borrowers to default, the banks then become
more cautious, so there is less lending and therefore less money so that the economy can go
from boom to bust as happened in the UK and many other Western economies after 2007.

Channels
Banks offer many different channels to access their banking and other services:
 Branch, in-person banking in a retail location
 Automated teller machine banking adjacent to or remote from the bank
 Bank by mail: Most banks accept cheque deposits via mail and use mail to communicate
to their customers
 Online banking over the Internet to perform multiple types of transactions
 Mobile banking is using one's mobile phone to conduct banking transactions
 Telephone banking allows customers to conduct transactions over the telephone with
an automated attendant, or when requested, with a telephone operator
 Video banking performs banking transactions or professional banking consultations via a
remote video and audio connection. Video banking can be performed via purpose built
banking transaction machines (similar to an Automated teller machine) or via a video
conference enabled bank branch clarification
 Relationship manager, mostly for private banking or business banking, who visits
customers at their homes or businesses
 Direct Selling Agent, who works for the bank based on a contract, whose main job is to
increase the customer base for the bank
Business models
A bank can generate revenue in a variety of different ways including interest, transaction fees
and financial advice. Traditionally, the most significant method is via charging interest on the
capital it lends out to customers. The bank profits from the difference between the level of
interest it pays for deposits and other sources of funds, and the level of interest it charges in
its lending activities.
This difference is referred to as the spread between the cost of funds and the loan interest
rate. Historically, profitability from lending activities has been cyclical and dependent on the
needs and strengths of loan customers and the stage of the economic cycle. Fees and financial
advice constitute a more stable revenue stream and banks have therefore placed more
emphasis on these revenue lines to smooth their financial performance.
In the past 20 years, American banks have taken many measures to ensure that they remain
profitable while responding to increasingly changing market conditions.
 First, this includes the Gramm–Leach–Bliley Act, which allows banks again to merge
with investment and insurance houses. Merging banking, investment, and insurance
functions allows traditional banks to respond to increasing consumer demands for "one-
stop shopping" by enabling cross-selling of products (which, the banks hope, will also
increase profitability).
 Second, they have expanded the use of risk-based pricing from business lending to
consumer lending, which means charging higher interest rates to those customers that are
considered to be a higher credit risk and thus increased chance of default on loans. This
helps to offset the losses from bad loans, lowers the price of loans to those who have
better credit histories, and offers credit products to high risk customers who would
otherwise be denied credit.
 Third, they have sought to increase the methods of payment processing available to the
general public and business clients. These products include debit cards, prepaid
cards, smart cards, and credit cards. They make it easier for consumers to conveniently
make transactions and smooth their consumption over time (in some countries with
underdeveloped financial systems, it is still common to deal strictly in cash, including
carrying suitcases filled with cash to purchase a home).
However, with the convenience of easy credit, there is also increased risk that
consumers will mismanage their financial resources and accumulate excessive debt.
Banks make money from card products through interest charges and fees charged to
 cardholders, and transaction fees to retailers who accept the bank's credit and/or debit
cards for payments.
This helps in making a profit and facilitates economic development as a whole.
Recently, as banks have been faced with pressure from fin techs, new and additional
business models have been suggested such as freemium, monetization of data, white-
labelling of banking and payment applications, or the cross-selling of complementary
products.

Products
1. Retail
 Savings account
 Recurring deposit account
 Fixed deposit account
 Money market account
 Certificate of deposit (CD)
 Individual retirement account (IRA)
 Credit card
 Debit card
 Mortgage
 Mutual fund
 Personal loan
 Time deposits
 ATM card
 Current accounts
 Cheque books
 Automated Teller Machine (ATM)
2. Business (or commercial/investment) banking
 Business loan
 Capital raising (equity / debt / hybrids)
 Revolving credit
 Risk management (foreign exchange (FX)), interest rates, commodities, derivatives)
 Term loan
 Cash management services (lock box, remote deposit capture, merchant processing)
 Credit services

Economic functions
The economic functions of banks include:
1. Issue of money, in the form of banknotes and current accounts subject to cheque or
payment at the customer's order. These claims on banks can act as money because
they are negotiable or repayable on demand, and hence valued at par. They are
effectively transferable by mere delivery, in the case of banknotes, or by drawing a
cheque that the payee may bank or cash.
2. Netting and settlement of payments – banks act as both collection and paying agents
for customers, participating in interbank clearing and settlement systems to collect,
present, be presented with, and pay payment instruments. This enables banks to
economize on reserves held for settlement of payments, since inward and outward
payments offset each other. It also enables the offsetting of payment flows between
geographical areas, reducing the cost of settlement between them.
3. Credit intermediation – banks borrow and lend back-to-back on their own account as
middle men.
4. Credit quality improvement – banks lend money to ordinary commercial and personal
borrowers (ordinary credit quality), but are high quality borrowers. The improvement
comes from diversification of the bank's assets and capital which provides a buffer to
absorb losses without defaulting on its obligations. However, banknotes and deposits
are generally unsecured; if the bank gets into difficulty and pledges assets as security,
to rise the funding it needs to continue to operate, this puts the note holders and
depositors in an economically subordinated position.
5. Asset liability mismatch/Maturity transformation – banks borrow more on demand
debt and short term debt, but provide more long term loans. In other words, they
borrow short and lend long. With a stronger credit quality than most other borrowers,
banks can do this by aggregating issues (e.g. accepting deposits and issuing
banknotes) and redemptions (e.g. withdrawals and redemption of banknotes),
maintaining reserves of cash, investing in marketable securities that can be readily
converted to cash if needed, and raising replacement funding as needed from various
sources (e.g. wholesale cash markets and securities markets).
 6. Money creation/destruction – whenever a bank gives out a loan in a fractional-reserve
banking system, a new sum of money is created and conversely, whenever the
principal on that loan is repaid money is destroyed.

Types of banking
Banks' activities can be divided into:
 retail banking, dealing directly with individuals and small businesses;
 business banking, providing services to mid-market business;
 corporate banking, directed at large business entities;
 private banking, providing wealth management services to high-net-worth
individuals and families;
 Investment banking, relating to activities on the financial markets.
Most banks are profit-making, private enterprises. However, some are owned by government,
or are non-profit organizations
Types of banks
Commercial banks: the term used for a normal bank to distinguish it from an investment
bank. After the Great Depression, the U.S. Congress required that banks only engage in
banking activities, whereas investment banks were limited to capital market activities. Since
the two no longer have to be under separate ownership, some use the term "commercial bank"
to refer to a bank or a division of a bank that mostly deals with deposits and loans from
corporations or large businesses.
 Community banks: locally operated financial institutions that empower employees to
make local decisions to serve their customers and the partners.
 Community development banks: regulated banks that provide financial services and
credit to under-served markets or populations.
 Land development banks: The special banks providing long-term loans are
called land development banks (LDB). The history of LDB is quite old. The first LDB
was started at Jhang in Punjab in 1920. The main objective of the LDBs is to promote
the development of land, agriculture and increase the agricultural production. The
LDBs provide long-term finance to members directly through their branches.

 Credit unions or co-operative banks: not-for-profit cooperatives owned by the

depositors and often offering rates more favourable than for-profit banks. Typically,
membership is restricted to employees of a particular company, residents of a defined
 area, members of a certain union or religious organizations, and their immediate
families.

 Postal savings banks: savings banks associated with national postal systems.

 Private Banks: banks that manage the assets of high-net-worth individuals.

Historically a minimum of US$1 million was required to open an account; however,
over the last years many private banks have lowered their entry hurdles to
US$350,000 for private investors.

 Offshore banks: banks located in jurisdictions with low taxation and regulation.
Many offshore banks are essentially private banks.

 Savings bank: in Europe, savings banks took their roots in the 19th or sometimes
even in the 18th century. Their original objective was to provide easily accessible
savings products to all strata of the population. In some countries, savings banks were
created on public initiative; in others, socially committed individuals created
foundations to put in place the necessary infrastructure. Nowadays, European savings
banks have kept their focus on retail banking: payments, savings products, credits and
insurances for individuals or small and medium-sized enterprises. Apart from this
retail focus, they also differ from commercial banks by their broadly decentralized
distribution network, providing local and regional outreach – and by their socially
responsible approach to business and society.

 Building societies and Landesbanks: institutions that conduct retail banking.

 Ethical banks: banks that prioritize the transparency of all operations and make only
what they consider to be socially responsible investments.

 A direct or internet-only bank is a banking operation without any physical bank

branches, conceived and implemented wholly with networked computers.

Types of investment banks

 Investment banks "underwrite" (guarantee the sale of) stock and bond issues, trade
for their own accounts, make markets, provide investment management, and advise
corporations on capital market activities such as mergers and acquisitions.

 Merchant banks were traditionally banks which engaged in trade finance. The
modern definition, however, refers to banks which provide capital to firms in the form
of shares rather than loans. Unlike venture caps, they tend not to invest in new
companies.

Both combined
  Universal banks, more commonly known as financial services companies, engage in
several of these activities. These big banks are much diversified groups that, among
other services, also distribute insurance – hence the term banc assurance,
a portmanteau word combining "banque or bank" and "assurance", signifying that
both banking and insurance are provided by the same corporate entity.

Other types of banks

 Central banks are normally government-owned and charged with quasi-regulatory

responsibilities, such as supervising commercial banks, or controlling the cash interest
rate. They generally provide liquidity to the banking system and act as the lender of
last resort in event of a crisis.

 Islamic banks adhere to the concepts of Islamic law. This form of banking revolves
around several well-established principles based on Islamic canons. All banking
activities must avoid interest, a concept that is forbidden in Islam. Instead, the bank
earns profit (mark-up) and fees on the financing facilities that it extends to customers.

Types of Loans Provided By The Banks

Loans can be utilised for various things in today’s world. It can be used for funding a start-up to
buying appliances for your newly purchased house. Let us talk about the different types of loans
available in the market and their specific characteristics that make these loans useful to the
customers.

 Personal Loans:

Most banks offer personal loans to their customers and the money can be used for any expense like
paying a bill or purchasing a new television. Generally, these loans are unsecured loans. The lender
or the bank needs certain documents like proof of assets, proof on income, etc. before approving
the personal loan amount. The borrower must have enough assets or income to repay the loan. In
case of personal loans, the application is 1 or 2 pages in length. The borrower gets to know about
the denial or approval of the loan within a couple of days.

You must remember that the rate of interest associated with these loans can be on the higher side.
The tenure of these loans is not that long. So, if you borrow a big amount, it can be difficult for you
to repay without planning your finances properly.

Personal loans can prove to be of great help when you wish to take a small loan and repay it as soon
as possible.

 Credit Card Loans:

When you are using a credit card, you must understand that you will have to repay for all the
purchases you make at the end of the billing cycle. Credit cards are accepted almost everywhere,
even when you are travelling abroad. As it is one of the most convenient ways to pay for the things
you buy, it has become a popular loan type.

In order to apply and avail a credit card, all you need to do is fill out a simple application form
provided by the card issuer. You can also choose to apply for a credit card online. These plastic cards
come with great rewards and benefits. It’s the loan where you need to repay on time but you are
also handsomely rewarded for using it.

Obviously, there are pitfalls associated with this type of loan. You must understand that there is a
high amount of interest on the amounts you borrow on your credit card. If you do not pay your
credit card bills on time, the interests will keep piling and might be difficult for you to manage your
finances with the rising outstanding balance. But if you use a credit card wisely and clear all your
debts on time, it can definitely prove to your best friend in your pocket.

 Home Loans:

When you wish to purchase a house, a home loan can help you to a great extent. It provides you the
financial support and helps you buy the house for yourself and your loved ones. These loans
generally come with longer tenures (20 years to 30 years). The rate offered by some of the top banks
in India with their home loans start at 8.30%. Your credit score is checked before the loan request is
approved by the lender. If you have a good credit score, there is a fair chance that you will be able to
enjoy lower rates of interest with your home loan.

Home loans are primarily taken for buying new homes. However, these loans can also be used for
home renovations, home extensions, purchasing land property, under-construction houses, etc.

Some of the types of home loan that are available in the market include home loans for repair and
extension, top-up loans, land purchase loan, loan against property, etc.

 Car Loans:

Buying a car can definitely instil a great sense of joy and happiness in you. A car will remain as your
asset and it is going to be one of the biggest investments that you make. A car loan helps you to
pave the path between your dream of owning a car and actually buying your car. Since credit reports
are crucial for judging your eligibility towards any loan, it is good to have a high credit score when
you apply for a car loan. The loan application will get approved easily and you might get a lower rate
of interest associated with the loan.

Car loans are secured loans. If you fail to pay your instalments, the lender will take back your car and
recover the outstanding debt.

 Two-Wheeler Loans:

A two-wheeler is pretty essential in today’s world. May it be going for a long ride or a busy road in a
city – bikes and scooters help you to commute conveniently. A two-wheeler loan is easy to apply for.
This amount you borrow under this loan type helps you to purchase a two-wheeler. But if you do not
pay the instalments on time and clear your debt, the insurer will take your two-wheeler to recover
the loan amount.

 Education Loans:

If you wish to get higher education in a reputed university in a different country, education loans can
help you a lot. These loans are opted by students who wish to study further but need financial
support for pursuing the courses. An education loan covers expenses like college/university fees,
library charges, travel costs related to their course, etc.

In order to be eligible for an education loan, you must submit all the required documents including
invitation letter from the university, educational qualification certificates, etc.

Loan against the Insurance Schemes:

If your insurance scheme is eligible for a loan, you can avail the loan amount from your insurer. You
may also use the investment for insurance as collateral. Generally, loans cannot be availed right
from the commencement of the insurance policy. After 3 years into the scheme, you can apply for a
loan.

Loan against Fixed Deposits:

This is a type of loan where your fixed deposit is the collateral. For example, if you have a fixed
deposit of Rs.10 lakh in the bank, you can avail a loan of up to Rs.8 lakh. However, the rate of
interest associated with this kind of a loan is usually higher than the fixed deposit rate.

Loan against Mutual Funds and Shares:

Certain lenders provide loan against your mutual fund value and share value. However, you will not
be able to borrow huge amounts under this type of loan.
CHAPTER-2

LITERATURE REVIEW

It has been nearly a quarter century since commercial use of the Internet and the World Wide Web
began. During this time the

business landscape has changed at a frenetic pace.Large multinational corporations such as Google,
Facebook, Amazon, Alibaba,

eBay and Uber, unheard of twenty years ago, have emerged as key players in our modern economy.
In 2015, online sales

accounted for 7.4% of overall retail spending in the U.S., the highest percentage since tracking began
in 1999 (Phillips, 2015).

Sales made through mobile devices have increased at a rapid rate to between 22% and 27% of all
online sales (Rao, 2015;

Malcolm, 2015). Corporations now highlight the importance of creating a “digital relationship” with
customers (Phillips, 2015).

Moreover, digital technologies and devices such as smartphones, smart products, the Internet of
Things (IoT), Artificial Intelligence,

and deep learning all promise significant transformations of consumers' lives in the near future.It is
against this backdrop that this

paper seeks to understand how the developments in digital technology are re-shaping the
process and the strategy of marketing,

and the implications of this transformation for research in the broad space we call “digital
marketing”.

Our objectives for this paper are three-fold. First, we develop and describe a framework for research
in digital marketing that

highlights the touchpoints in the marketing process as well as in the marketing strategy process
where digital technologies are

having and/or will have a significant impact. Next, we organize the developments and extant
research around the elements and

touchpoints comprising the framework and review the research literature in the broadly defined
digital marketing space.Using
the framework, we also outline the evolving issues around the touchpoints and associated questions
for future research. Finally,

we integrate these identified questions and set a research agenda for future research in digital
marketing.

In our discourse, we examine the research issues in digital marketing from the perspective of the
firm – that is, we examine the

strategic, tactical and implementation implications of the research conducted in the domain of
digital marketing and focus on sub-

stantive issues of managerial relevance rather than on behavioral or methodological research per se.
However, these issues could

lead to fundamental questions that could be answered in the domains of consumer psychology,
marketing analytics, economics, or

computer science.In order to be as comprehensive as possible in covering the key substantive

research developments in the area of

digital marketing, and given our focus, we have narrowed down our search without compromising
the representativeness. Our

search for relevant literature focuses on four marketing journals: International Journal of Research in
Marketing, Marketing Science,

Journal of Marketing Research, a n d Journal of Marketing, focusing on articles published between

2000 to 2016.We started at Web of

Science and searched for articles with the keywords “digital” or “online” as either the research
topic or part of the article title,

which provided us with 305 “seed articles”. As we read these papers, we eliminated those that were
not directly relevant and in-

cluded other relevant papers cited in these seed papers. This expanded our list to other journals not
covered in our initial search.

For each topic discussed in our paper, we selected the earliest papers in this list, and added a few
most frequently cited papers in

that topic to discuss under each topic making up our review.To this list we also added the most
recent papers to render the review

as current as possible. Thus, the review of extant research is not meant to be exhaustive but rather
representative in order to cover

the issues with sufficient depth and focus on future research issues appropriately.
Our review complements recent review articles on digital marketing and related topics. The article
by Yadav and Pavlou (2014)

focuses on marketing in computer-mediated environments and reviews literature in both marketing

and information systems. The

article by Lamberton and Stephen (2016) focuses on consumer psychology, motivations, and
expressions in digital environments

to highlight a few.The article by Wedel and Kannan (2016) focuses on modeling and methodological
issues in marketing analytics

necessitated by the advent of digital, social and mobile environments. Our review cites these articles
at the appropriate sections for

further details on issues we do not cover.

The paper is organized as follows.In Section 2 we present the framework and identify touchpoints in
processes where digital

technologies play a key role. In Sections 3 through 7, we review the literature around each element
and touchpoint of the frame-

work and discuss briefly open areas of inquiry. In Section 8 we present more details on these open
areas of research and present

an agenda for future research and conclude in Section 9

2.1. Definition and framework

The term “digital marketing” has evolved over time from a specific term describing the marketing
of products and services

using digital channels – to an umbrella term describing the process of using digital technologies to
acquire customers and build

customer preferences, promote brands, retain customers and increase sales (Financial Times,
lexicon.ft.com). Following the Amer-

ican Marketing Association's firm centric definition

(https://www.ama.org/AboutAMA/Pages/Definition-of-Marketing.aspx), digital

marketing may be seen as activities, institutions, and processes facilitated by digital technologies for
creating, communicating and

delivering value for customers and other stake-holders. We adopt a more inclusive perspective and
define digital marketing as “an
adaptive, technology-enabled process by which firms collaborate with customers and partners to
jointly create, communicate, de-

liver, and sustain value for all stakeholders”.

The adaptive process enabled by the digital technologies creates value in new ways in new digital
environments. Institutions

enabled by digital technologies build foundational capabilities to create such value jointly for their
customers and for themselves.

Processes enabled by digital technologies create value through new customer experiences and
through interactions among cus-

tomers. Digital marketing itself is enabled by a series of adaptive digital touchpoints encompassing
the marketing activity, institu-

tions, processes and customers. Significantly, the number of touchpoints is increasing by over 20%
annually as more offline

customers shift to digital technologies and “younger, digitally oriented consumers enter the ranks of
buyers” (Bughin 2015).

In view of the above, we identify key touchpoints affected by digital technologies and propose a
research framework that is

inspired by the marketing process as well as by the marketing strategy process. The conventional
marketing strategy process starts

with an analysis of the environment including the five C's – customers, collaborators, competitors,
context, and company (firm).

While these elements are presented in our framework (Fig. 1), customers emerge as the central
focus (in the left box) with

other elements such as context, competitors and collaborators making up the environment that the
company operates in.

Our key objective is to understand how digital technologies (at the bottom in Fig. 1) interact with the
five C's as well as the

interface among these elements. We specifically identify the concepts, institutions and structures
that emerge from these interac-

tions – platforms and two sided markets, search engines, social media and user-generated content,
emerging consumer behavior

and contextual interactions. This analysis forms the input to the actions of the firm, encompassing all
elements of the marketing
mix – product/service, price, promotion and place – as well as information gathering through
marketing research and analytics, which

informs the marketing strategy of the firm. We focus again on how digital technologies are shaping
these actions, information ac-

quisition and analysis, and marketing strategy. Finally, as the outcome of the marketing actions and
strategies, we examine the

overall impact of digital technologies in value creation – creating value for customers (through value
equity, brand equity, relation-

ship equity and customer satisfaction), creating customer equity (through strategies for acquisition,
retention and higher margin)

2.2. Key concepts and elements

Digital technologies are rapidly changing the environment (Box 1 in Fig. 1) within which firms
operate. Digital technologies are

reducing information asymmetries between customers and sellers in significant ways. Analysis of
interactions of digital technolo-

gies and the elements of the environment starts with the examination of how consumer behavior is
changing as a result of access

to a variety of technologies and devices both in the online and mobile contexts. We focus on how
this affects information acqui-

sition with regard to quality and price, the search process, customer expectations, and the resulting
implication for firms. Next, we

examine digital technologies' facilitation of customer-customer interactions through online media

– word-of-mouth, online re-

views and ratings, and social media interactions (social media & user generated content (UGC)). The
emergence of platforms

–institutions created through digital innovations which facilitate customer-to-customer

interactions for ideation in new prod-

uct/service development, those that connect customers and sellers in platform-based markets and
those that leverage two-sided

markets for their revenue generation – is also examined as collaboration enablers that connect a firm
to its market using digital

technologies In the same way, firms have to contend with search engines as both collaborators and
platforms on which they com-
pete with other firms in acquiring customers. Thus, we also review the research on search engines
and the interactions among

customers, search engines and firms. Finally, we examine the interactions of digital technologies
with different contexts of geog-

raphy, privacy and security, regulation and piracy, and their implications for digital marketing
(contextual interactions).

Within the company (Box 2 in Fig. 1), digital technologies are changing the concept of product in
three ways in order to pro-

vide customers new value propositions – augmenting the core product with digital services,
networking of products using digital

technologies to release the dormant value inherent in the products, and finally, morphing products
into digital services. We exam-

ine these trends and the opportunities they create for customizing and personalizing customer
offerings, by varying not only the

core product/service but also the augmented digital services. The developments in digital product
lines and tailored offerings to

customers lead to pricing challenges for firms. The reduction in menu costs associated with digital
technologies also leads to op-

portunities for dynamic pricing and yield management in product and service categories traditionally
sold with list prices. These

developments along with the use of online auctions for products/services, search keywords, display
ads, and name-your-own-

price strategies, have given rise to interesting research questions that we review. In addition, the
interface between pricing and

channels (both offline and online) is becoming an important issue as more firms adopt online and
mobile channels to target

and transact business with customers

3. Digital environment

Table 1 provides an overview of the state-of-the-art research developments under each of the five
main areas we focus on.

3.1. Consumer behavior

It order to understand the impact of digital technologies, it is important to understand how
consumers' buying process – pre-

purchase, purchase consummation and post-purchase stages – are changing as a function of new
environments and devices. Con-

sumers' information acquisition, search and information processing are also affected, and as a result,
decision aids can play an mportant role in the new environments. Recent marketing research has
provided insights into consumer behavior, customer trust

and risk perceptions in these processes across digital and non-digital environments. This sub-section
will review these issues.

It is well known that consumers move through different stages in the buying process starting with
awareness, familiarity, con-

sideration, evaluation and purchase. If consumers receive value consistently by purchasing a brand,
they are more likely to become

loyal customers. In conventional offline environments the consumer journey is fairly extended,
especially in the consideration and

evaluation stages, whereas in the digital environment these stages can be quite compressed or even
eliminated (Edelman & Singer,

2015). Customers can gather information from focused research at search engines and read other
customers' reviews on retailers'

sites or third-party forums not controlled by the seller, and the initial demand to purchase could be
created just by seeing a post

on social network. Thus, in the digital environment, customers can move through their decision
journey in fundamentally new

ways.

Our key research focus is to understand how buyer behavior is affected by the digital environment,
specifically through inter-

actions with search engines, online reviews, recommendations, and other similar information not
produced or controlled by the

firm or brand. In addition, even as the environment itself changes depending on the device that
customers use – personal com-

puters (PCs), smart phones, tablets, or wearable devices – how do these devices and environment
affect buyer behavior? Such re-

search issues focus on the elements unique to the devices or environment and examine their impact
on consumer decision making
and buying behavior. A good example of an early paper focusing on such research is by Haubl and
Trifts (2000) who investigated

the nature of the effects that interactive decision aids may have on consumer decision making in
online shopping environments.

Another example is by Shi, Wedel, and Pieters (2013) who used eye-tracking data to examine how
customers acquire and process

information in their online decision making. Shankar et al. (2010) developed propositions on how the
characteristics of mobile de-

vices may influence consumer behavior, and Xu, Chan, Ghose, and Han (2016) examined the impact
of tablets on consumer be-

havior in digital environments.Focusing on the role of decision aids in evolving consumer behavior,
Shi and Zhang (2014) found

that consumers evolve through distinct behavioral states over time, and the evolution is attributable
to their prior usage experi-

ence with various decision aids. Decision aids can be constrained by device features, and thus the
optimal design of decision

aids could vary across devices.

Research in the practitioner's realm offers a new perspective of the digital buying journey wherein
interactive social media and

easy access to information may expand rather than narrow customer choices. Furthermore,
customers can influence other poten-

tial buyers through online reviews, social media, and so forth, during both the pre-purchase and
post-purchase stages (Court et al.,

2009).

The customer decision journey, more often than not, spans across digital as well as traditional offline
environments.This buyer

behavior across environments has been the subject of several papers. For example, do customers
who shop across the two envi-

ronments spend more money than those who use just one channel? Kushwaha and Shankar (2013)
addressed this question

with a compiled database of around one million customers shopping across 22 product categories
over 4 years. In their analysis,

a print catalog was the only offline channel and its customers were compared with customers who
use the online channel, or both.
They developed a conceptual framework where the monetary value of a customer relies on two
features of the product category -

whether the product is utilitarian or hedonic and whether the product is of low or high perceived
risk. They found that the mul-

tichannel customers are not necessarily more valuable than single channel users. For example, the
offline-only customers have a

higher monetary value than multichannel customers on low-risk utilitarian product categories, and
the online-only customers

spend more on high-risk utilitarian products than multichannel shoppers. Neslin et al. (2006)
provided a comprehensive review

on the customer behavior in the search, purchase and after-sale stages of multichannel shoppers.
They identified five key chal-

lenges for future research, including data integration, understanding customer behavior, channel
evaluation, resource allocation,

and channel coordination. In addition, the large volume of individual-level touch point data adds
more complexity to these

challenges.

Information search plays an important role in the customer's decision journey. Early research by
Ratchford, Lee, and Talukdar

(2003) examined how the digital environment affects automobile purchases and revealed that the
Internet shortens the consider-

ation and evaluation stages of the customer journey, and customers would have searched even
longer if the Internet was absent. A

later study by Ratchford et al. (2007) in the same automobile context, found that the Internet
substitutes for time spent at the

dealer, for print content from third-party sources in pre-purchase stage, and for time spent in
negotiating prices in the purchase

consummation stage. These results highlight the importance of the reduced search costs and thus
more efficient purchase process-

es in digital environments.

The specific manner in which the consumers' digital search unfolds and how the process is affected
and moderated by search-

and decision-aids in an ever-changing digital environment is, in and of itself, an important topic.
Many of the research findings in
the general area of search can be applied to specific digital settings. For example, Seiler (2013)
developed a structural model in

which the search decision is jointly modeled with the purchase decision. The customers decide on
how much information they

need to gather by trading off the perceived purchase utility with search cost. Using customers'
shopping data in traditional

brick-and-mortar stores, Seiler (2013) showed that customers do not search in around 70% of their
shopping trips due to high

search costs. If the search cost is reduced in half, as in his counterfactual analysis, the elasticity of
demand can be more than

tripled.In the online setting, when search cost is significantly reduced, researchers found higher
demand elasticity in various prod-

uct categories (Degeratu, Rangaswamy, & Wu, 2000; Granados, Gupta, & Kauffman, 2012).

Kim, Albuquerque, and Bronnenberg (2010) integrated the sequential search process into a choice
model. They used web-

crawled data of viewing and ranking for all camcorder products at Amazon.com for a one and a half-
year data window and as-

sumed these data are aggregations of individual-level optimal search sequences. Their results
showed that consumers usually search among ten to fifteen product alternatives. While the ranking
and filter tools offered by the retailer can help customers re-

duce search costs, these tools also concentrate demand on the bestselling products. Bronnenberg,
Kim, and Mela (2016) examined

customer online search behavior for multi-attribute, differentiated durable goods such as cameras,
and found that on average a

customer conducts 14 searches online across multiple brands, models, and online retailers over a 2-
week period. However, the ex-

tensive search is confined to a small set of attributes and 70% of the customers search and purchase
within the same online retail-

er. They also found that customers first search with generic keywords and narrow down to specific
keywords, echoing the

research findings by Rutz and Bucklin (2011).

Trust is an important element that influences customers' selective information gathering and search
behavior in the digital en-
vironment. Shankar, Urban, and Sultan (2002) introduced a conceptual framework for online trust
building using stakeholder the-

ory, which approached the trust building from the perspective of different stakeholders such as
customers, suppliers, and

distributors. From customers' perspectives, they want retail sites to be trustworthy and their
transaction information and personal

information to be protected. However, such customer needs may not quite align with supplier's
efficiency perspective. In one of

the earliest empirical studies on customer privacy concerns in online shopping, Goldfarb and Tucker
(2011a) conducted a field ex-

periment and found that targeting can undermine the effectiveness of a display ad. According to
their research, an ad that is both

obtrusive and content-based targeted has less impact on a purchase than an ad that is only
obtrusive or targeted, possibly due to

customers' privacy concerns.

Understanding how emerging digital technologies affect consumer behavior is an important research
area. It is the key to un-

derstanding the role of various touchpoints in determining customers' purchase journey, extending
the work of Court et al. (2009).

Do these touchpoints always compress and shorten the purchase journey as described by Edelman
and Singer (2015) or is there a

tipping point where the journey gets extended? How are these findings change across devices? Does
switching across channels

and devices increase or decrease the search cost? Theory-driven research focusing on the impact of Formatted: Font: 11 pt, Highlight
devices on consumer behavioris critically needed 3.2. Social media and user-generated content Formatted: Font: ff3, 11 pt, Highlight
An important characteristic that sets the digital environment apart from the traditional marketing
environment is the ease with

which customers can share word-of-mouth information, not only with a few close friends but also
with strangers on an extended

social network. In the digital environment, customers can post reviews on products, services, brands
and firms at firms' websites

as well as third-party websites and social networks, and these reviews reach a much larger number
of potential customers.

Toubia and Stephen (2013) focused on the important motivation question: why do people
contribute on social media? Their
research distinguished between two types of utility that a contributor derives from social media: (1)
intrinsic utility, the direct

utility of posting content and (2) image-related utility derived from the perception of others. These
two types of utility can be em-

pirically distinguished because the former depends on posting behavior whereas the latter only
relates to the number of followers

a person has on the social network. In their field experiment, Toubia and Stephan randomly selected
100 active non-commercial

users on Twitter and added 100 synthetic followers to each user over a 50-day period. They found
the intrinsic utility outweighed

image-related utility when the Twitter users had fewer followers, whereas image-related utility
became more dominant as the

Twitter users gathered more followers. Moreover, the image-related utility was larger than intrinsic
utility for most users.

It is important to identify the influential individuals in a social network. In their seminal paper, Watts
and Dodds (2007) pro-

posed a hypothesis that there is a small group of influencers, the impact from whom can cascade to
others. Trusov, Bodapati, and

Bucklin (2010) developed a latent measure of influence and empirically examined the influence on
individual log-in behavior with

social network data. Katona, Zubcsek, and Sarvary (2011) studied the diffusion of influence and
found that an individual's position

in the network together with specific demographic information can be good predictors of adoptions.
An individual is more likely to

adopt if she is connected to more adopters or if the density of adopter connections is higher in her
group.

One form of online customer interactions that has been studied extensively is the online review
(e.g., user generated content

and electronic word-of-mouth, or eWOM). Just as with traditional offline word of mouth, eWOM
encompasses customers' knowl-

edge about the products, their usage, experience, recommendations, and complaints, and is
generally perceived as trustworthy and

reliable. Moreover, eWOM may have richer content and larger volume than offline word of mouth,
and it is much more accessible
and can be shared widely in the digital environment. Given the importance of eWOM, it has been
the subject of extensive research

over the last decade, addressing issues such as: the motivation for eWOM posts; the impact of
eWOM posts on sales and the dy-

namics of such posts; how eWOM posts influence other posts and reviews; and the identification of
the most influential people in

the network, known as “influencers”. More recently, research has also focused on deceptive reviews
and their motivations.

Godes and Mayzlin (2004) were the first researchers to investigate the impact of the online review.
They examined the volume

and dispersion of the online review and found that the dispersion is a good predictor of the ratings
of a TV program. Chevalier and

Mayzlin (2006) studied the important relationship between online reviews and sales using online
book reviews. They found that

online reviews are generally positive and that these reviews can increase a book's sales rank, but
that negative reviews have a

stronger impact than positive ones. Moe and Trusov (2011) identified two dimensions of online
reviews – product evaluations

and social dynamics – and found both influence sales. Apart from the relationship between eWOM
and sales rank, researchers

are also developing tangible metrics to measure the return on investment (ROI) of social media.
Kumar et al. (2013) introduced

a metric to measure the viral impact of eWOM and its associated monetary value. Wu, Che, Chan,
and Lu (2015) developed a

learning model to evaluate the monetary value of a review and found more value is derived from
contextual comments than nu-

merical ratings. In addition to the organic eWOM created by customers, can firms drive sales by
generating their own eWOM . According to Godes and Mayzlin's (2009), the answer is yes. In a large-
scale field experiment, in which they collected data from

customers as well as non-customers, they found less loyal customers are likely to have a greater
impact on eWOM campaigns.

Chen, Wang, and Xie (2011) compared the impact of eWOM and observational learning at
Amazon.com, where eWOM is cre-
ated by customers and the observational information is provided by an Amazon feature that shows
the customer what other cus-

tomers purchased (as an aggregate metric in percentage) after viewing the same product. This
observational learning feature was

discontinued by Amazon in late 2005 and resumed in late 2006. The researchers collected one and a
half years of data covering

these two feature changes at Amazon and used a first difference model to measure the impact of
eWOM, observational learning,

and their interactions. The results showed that negative eWOM is more influential than positive
eWOM, whereas the reverse is

true for observational learning. These findings imply that it is profitable for retailers to provide
observational information and

the impact of such information can be strengthened by eWOM volume.

7. Marketing strategy

Two core marketing elements that a firm focuses on to maintain a sustainable competitive
advantage are its brand and its

customers.In this section, we focus on recent research related to these elements of marketing
strategy that are not specifically cap-

tured in the other sections – and address how a firm should strategically manage its brand and
customers in the ever-changing

digital landscape. The introduction of new channels, new shopping devices, and new customer
interactions calls for an updated

understanding of the customer management and brand management and requires the firms to re-
define their marketing mix met-

rics and CRM metrics. For example, Haenlein (2013) examined the impact of social interactions on
customer churning and report-

ed that the churning rate is higher for a customer who is connected with previously churned
individuals. Malthouse et al. (2013)

discussed how social media would re-shape the “social CRM” strategies and emphasized that
customer value includes not only the

purchase-based value, but also the value of their social influence. Given that some elements of
customer value are impacted sig-
nificantly by the digital technologies, such research calls for a more inclusive definition of customer
value. In this content, Lemon

and Verhoef (2016) and Kumar and Reinartz (2016) have provided useful frameworks to understand the
role of customer expe-

rience and customer engagement afforded by digital technologies in creating value for customers as
well as increasing customer

lifetime value.

The focus with regard to brand management is on understanding how the brand is created, modified
and strengthened in and

by the digital landscape. Hewett et al. (2016) described how social media sites have created a
reverberating “echoverse” for brand

communication, forming complex feedback loops between firm communications, news media, and
user-generated social media.

They found that while firms benefit from using social media for personalized customer responses
and online brand communica-

tions, traditional brand communications still have a key role to play in shaping the brand. Batra and
Keller (2016) have provided

an overview of these synergies in the context of brand communications.A firm's brand positioning
strategy can be impacted by

their search engine marketing (SEM) and search engine optimization (SEO) strategies (Dou et al.
2010). As SEM and SEO are

adapted and applied for mobile, voice search, in-app search and chat room commerce, more factors
and metrics need to be con-

sidered when developing a branding strategy. Hanssens and Pauwels (2016) have provided an
extensive discussion of the metrics

and measures needed to monitor the implementation of strategies and also define the value of
marketing to the firm.

As new digital devices and technologies evolve, future research needs to focus on how firms can use
these developments to create sustainable competitive advantage, gain market share, and increase
customer equity and brand equity.

9. Conclusion

Our key objective in this paper is to set an agenda for research in digital marketing.We have
defined digital marketing in the
broadest sense and we have developed and proposed a framework that highlights the
touchpoints in the marketing process as
well as in the marketing strategy process where digital technologies play a key role.Using this
framework we have organized
and reviewed the extant research around these touchpoints. The unresolved questions in each
area we have identified above
can benefit from future research, so we have integrated all these questions into a broad
agenda in Section 8. synthesized the research issues at a high level to stimulate more
detailed and specific research aided by our framework. We leave
it for other researchers to delve into these issues.The extant survey papers we identified
should complement this paper well. To
keep our analysis tractable we have focused only on papers in the marketing domain.
However, there are several important con-
tributions in the area of information systems, operations management and economics which
could complement our work.
Finally, we have some observations regarding the research process that will lead to useful
knowledge. It is imperative that
academic- and practitioner- communities work together in order to tackle these research
issues (For examples, see Lilien &
Rangaswamy, 2000; Roberts, Kayande, & Stremersch, 2014). For one, the pace of digital
technology development has increased
tremendously. Owing to the need to gain competitive advantage, implementations of
technological developments by firms is
often rapid and without thorough deliberation of the pros and cons or ROI. There is a need for
researchers to take a critical
look at the research issues we outlined with appropriate data from observational studies and
field experiments.Practitioners
can provide the raw material and academics can provide the rigor, and together they can
extend our knowledge of the ever-
changing digital environment. The good news is that digital marketing is already seeing such
collaborations and this augurs
well for the future

Prabha, Divya et al. (2006), in their study analyzed the service quality perceptions of the
corporate customers in Coimbatore regarding the services provided by their banks. For the
study they considered both product and service based sectors and SERVQUAL scale based
questionnaire for the survey. By this study it has been revealed that even though customers
are more satisfied with the competence and customer orientedness dimensions of service
quality, still banks need to focus upon the aspects of communication, modernization and
quickness of service.

second least in banking services marketing. Zone of tolerance and direct evaluation methods
interaction quality, physical environment quality and outcome quality had positive impacts on
customer trust and satisfaction.
CHAPTER-3
 RESEARCH
METHODOLOGY

3.1 Purpose of Study

The purpose of the study is to know the influence of the marketing and advertisement
strategies on the purchase decision of the customer with respect to the ecommerce sector.
This study mainly focuses on affect that is put on the customer’s state of mind by the
activities done by the e-commerce firms in order to generate their interest towards the
different types of purchases.

3.2 Objectives of the study

1. To study the impact of the digital marketing strategies on the customer’s purchase
decision with respect to E-commerce.
 2. To know the priorities of the customers when they choose a particular E-commerce
site for making the purchase.
3. To know the influence of advertisement and other digital marketing activities
provided by E-commerce sites on the customer’s purchase decision.
4. To know the probable future of digital marketing and its acceptability in consumers.

3.3 Research Methodology of the study

3.3.1 Research Design

 Descriptive research design was adopted for carrying out this research.

 Descriptive Research points on the facts and findings just to determine the nature of

something that already exists. It also helps us to reach at an accurate answer for any

query. This type of research is required for this report, as all the facts and processes

were already present and they have just been analysed. As nothing new has been

explored, that’s why the descriptive research design has been selected for the

research.

3.3.2 Methods of Data Collection

 Data used in the study is Secondary in nature.

 Data pertaining to the concepts like Digital marketing strategies, selling strategies,

concept of E-commerce, types of E-commerce, and types of products was gathered

from different websites that are already mentioned in the bibliography at the end of

this report.

3.3.3 Sample Design

 3.3.3.1 Sample Population: The respondents are the students of the institutes or

universities and their households belonging to Delhi NCR.

3.3.3.2 Sample Size: Total number of respondents was around 110 out of which

approximately 63 percent of people were somehow engaged in the activities as a customer for

the same.

3.3.3.3 Sampling Method: In this study, Convenient Sampling Technique is used. As

convenience sampling is a non-probability sampling technique where the subjects can be

selected because of their convenient accessibility and proximity (reach ability) to the

researcher.

3.4 Limitations of Study

 The biggest limitation of the study was that the proximity was limited to the

students only because of which the responses were somewhat same and no variety

in the suggestion box was there.

 This study was very time consuming and continuous guidance was required

every day.
 Questionnaire methods involve some uncertainty of responses. Co-operation on

the part of information was difficult to presume.

 Interpretation was a bit difficult for me as there was a variety of answers and

some people were not stuck on one stand because of which it took a bit more time

to complete the data analysis and interpretation part.

 CHAPTER-4
ANALYSIS AND
INTERPRETATION
Data analysis includes a process of decomposing a data into small components in order to

study a particular case, individual, group, survey, etc. When I prepared a questionnaire and

made them filled by a set of people, I found some differentiated responses and diversified

suggestions from various mindsets.

Here are the questions that I asked from the students in my survey:

Q1.
Interpretation:

 The highest number of respondants in the survey are either students or the

freelancers and part time job holder.

 The respondants are dependent on the income their parents and have intensity

to spend more.

Q2.
Interpretation:
 Although the income of maximum respondant is between 10k-20k, the backup

to spend more comes from the parents income and carries more saving due to

less expenditure therefore have more capacity to pay.

Q3
 Interpretation:

 Majority uses social media as a form of internet which caters and attracts

highest number of people and is therefore can be used to as best way to market

the products.

Q4.
 Interpretation:

 Facebook and youtube are crucial to attract the consumers and prospects

 More stress should be given to facebook and youtube so as to develop and put

forward the marketing and advertising efforts.

Q5.
  Prospects follow the way of randomly searching on the browser for purchasing
the product and knowing about the product , therefore the SEO must be given
more emphases.

Q6.
  The discounts and offers and information and contents are two aspects which
attract the most prospect to buy online.
 Its also the ease of buying which led the people to buy online.

Q7.
  This can be concluded in such a way, that people today uses more of mobile
than tv or radios and other means of media to get information, because tht
comes handy and also it is also more easy to know just while travelling or
being on social media.

Q8.
 Interpretation:

 People are more neutral about the effectivity of digital media as way of giving
feedback , this is due to the reason that E-commerce websites also take time to
select the good and bad feedback according to their goodwill and respons
accordingly.

Q9.
Interpretation:

 This shows that people trust the digital medium for buying and selling the
goods and also high number of people are still neutral about it due to
unawareness.
Q10.

Interpretation:

 This shows another important point that people still trust the brand name more
even after purchasing online as they are neutral about the the online
advertisements, also there is huge level of advertising going on with
continuous new entrants, that trust any without a big name is not acceptable
for them.
Q11.

Interpretation:

 This shows beside digital marketing and advertisement, personal selling is

also less influencing on prospects due to absence of good brand.

 If we talk about the 10 and 11 figure digital marketing is more favoured by

prospects.
 CHAPTER- 5
FINDINGS,
CONCLUSION

AND
RECOMMENDATIONS

5.1 FINDINGS AND CONCLUSION

 Facebook and youtube are crucial to attract the consumers and prospects.

 More stress should be given to facebook and youtube so as to develop and put

forward the marketing and advertising efforts.

 This shows another important point that people still trust the brand name more
even after purchasing online as they are neutral about the the online
advertisements, also there is huge level of advertising going on with
continuous new entrants, that trust any without a big name is not acceptable
for them.

 This shows beside digital marketing and advertisement, personal selling is also
less influencing on prospects due to absence of good brand.

 This shows that people trust the digital medium for buying and selling the
goods and also high number of people are still neutral about it due to

unawareness.

 People are more neutral about the effectivity of digital media as way of giving
feedback , this is due to the reason that E-commerce websites also take time to
select the good and bad feedback according to their goodwill and respons
accordingly.

 This shows that people trust the digital medium for buying and selling the
goods and also high number of people are still neutral about it due to
unawareness.
‘