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 Page iii
Digital Marketing

Raj Sachdev
PLYMOUTH STATE UNIVERSITY
 Page iv

DIGITAL MARKETING

Published by McGraw Hill LLC, 1325 Avenue of the Americas, New York, NY 10019.
Copyright ©2024 by McGraw Hill LLC. All rights reserved. Printed in the United States of
America. No part of this publication may be reproduced or distributed in any form or by any
means, or stored in a database or retrieval system, without the prior written consent of
McGraw Hill LLC, including, but not limited to, in any network or other electronic storage
or transmission, or broadcast for distance learning.

Some ancillaries, including electronic and print components, may not be available to
customers outside the United States.

This book is printed on acid-free paper.

1 2 3 4 5 6 7 8 9 LWI 28 27 26 25 24 23

ISBN 978-1-266-14309-0
MHID 1-266-14309-2

Cover Image: PopTika/Shutterstock

All credits appearing on page or at the end of the book are considered to be an extension of
the copyright page.

The Internet addresses listed in the text were accurate at the time of publication. The
inclusion of a website does not indicate an endorsement by the authors or McGraw Hill
LLC, and McGraw Hill LLC does not guarantee the accuracy of the information presented
at these sites.

mheducation.com/highered
 Page v

BRIEF CONTENTS

CHAPTER 1
Digital Marketing in a Digital World 2

CHAPTER 2
Creating Value through Digital Marketing Strategy 30

CHAPTER 3
Digital Consumer Behavior and Customer Relationship and Experience
Management 60

CHAPTER 4
Website Marketing Strategy 92

CHAPTER 5
Search Engine Optimization (SEO) Strategy 130

CHAPTER 6
Search Engine Marketing (SEM) Strategy 160

CHAPTER 7
Email Marketing Strategy 196

CHAPTER 8
Social Media and Community Marketing Strategy 230

CHAPTER 9
Mobile Marketing Strategy 284

CHAPTER 10
Digital Brand, Trust, and Reputation Management Strategy 324

CHAPTER 11
Digital Marketing Legal, Ethical, Privacy, and Security Considerations 346

CHAPTER 12
Trends and the Future of Digital Marketing 386

APPENDIX TO CHAPTER 2
Sample Strategic Digital Marketing Plan (Simplified) 406

GLOSSARY 423

INDEX 439
 Page vi

CONTENTS

CHAPTER 1
Digital Marketing in a Digital World 2
Digital Marketing in a Digital World 3

What Is Digital Marketing? 4

Evolution and Environment of Digital Marketing 4
The Evolution of Digital Marketing 4
Digital Marketing Macro-Environment 5
Digital Marketing Micro-Environment 6
Types of Digital Marketing 8
Email Marketing 8
Website Marketing 8
Search Engine Optimization and Search Engine Marketing 9
Social Media and Community Marketing 10
Mobile Marketing 11
Smart-Environment Marketing 11
Digital Marketing Value 13
Value and Digital Marketing 13
Digital Brand, Trust, and Reputation 13
Digital Segmentation, Targeting, and Positioning (STP) 16
Digital Sales 16
Digital Consumer Behavior and Customer Relationship and Experience
Management 16
Integrated Marketing Communications and Digital Marketing 16
The Digital Marketing Mix 17
The Traditional 4P’s Marketing Mix 17
The 7A’s of Digital Marketing 17
Digital Marketing Objectives 20
Conversion 21
Gain Customer Insights 21
Enhance Retention and Loyalty 22
Establish Expertise 22
Provide Interactive Sales and Exceptional Customer Service 22
Build Brand Image, Reputation, and Trust 22
Provide Information 23
Digital Marketing Analytics 23
Key Terms 24
Chapter Summary and Learning Objectives 24
Questions for Review 25
Mini Group Exercise/In-Class Discussion 26
Digital Marketing Case Study 26
Notes 27

CHAPTER 2
Creating Value through Digital Marketing Strategy 30
adidas Digital Marketing Strategy 31

Introduction to Digital Marketing Strategy 32

The Strategic Digital Marketing Planning Process 33
Stage 1: Organizational and Marketing Overview 33
Stage 2: Situation Analysis and Digital Marketing Objectives, Strategies, and
Tactics 33
Stage 3: Digital Marketing Analytics and Implementation Plan 33
Basic Digital Marketing Strategies and Tactics 34
Digital Marketing and the 4P’s 34
The 7A’s of Digital Marketing 37
Competitor Analysis 42
The Strategic Digital Marketing Plan 43
Cover Page 43
Executive Summary 44
Section 1: Organizational Mission, Vision, and Objectives 44
Section 2: Overall Marketing Strategies and Objectives 44 Page vii

Section 3: Digital Marketing Situation Analysis (Digital SWOT) 45

Section 4: Digital Marketing Objectives, Digital STP, and Digital Value
Proposition 45
Section 5: Digital Marketing Strategies and Tactics 49
Section 6: Digital Marketing Privacy, Security, Legal, and Ethical
Considerations 51
Section 7: Digital Marketing Analytics, Evaluation, and Measurement 52
Section 8: Digital Marketing Implementation Control Plan and Budget 53
References and Appendix 54
Key Terms 55
Chapter Summary and Learning Objectives 55
Questions for Review 56
Mini Group Exercise/In-Class Discussion 57
Chapter Projects 57
Notes 57

CHAPTER 3
Digital Consumer Behavior and Customer Relationship and
Experience Management 60
From Digital Consumer to Digital Customer and Beyond 61
Digital Consumer Behavior and Influences 62
Who Is the Digital Consumer? 62
Digital Consumer Behavior 62
Influences on the Digital Consumer 63
Digital Conversion Funnel 67
Digital Conversion Funnel in Action 68
Digital Marketing Consumer Decision-Making Process 69
Digital Consumer Decision-Making Process in Action 70
Digital Buyer Persona 71
Digital Customer Relationship Management 74
Digital Customer Experience (DCX) Management 78
User Experience (UX) 78
User Interface (UI) 80
Interaction Design (IxD) 81
Information Architecture (IA) 81
Microanimation and Microinteraction 81
Minimalism and Simplified Experiences 82
Language, Voice, Tone, and Style 82
Colors, Contrast, Icons, and Shape Experiences 82
Consistent and Transparent Experience 85
Key Terms 85
Chapter Summary and Learning Objectives 86
Questions for Review 87
Mini Group Exercise/In-Class Discussion 87
Digital Marketing Case Study 88
Notes 89

CHAPTER 4
Website Marketing Strategy 92
Amazon.com 93

Website Evolution and Value 94

Website Marketing Objectives 95
Conversion 95
Gain Customer Insights 97
Enhance Retention and Loyalty 97
Establish Expertise 98
Provide Interactive Sales and Exceptional Customer Service 99
Build Brand Image, Reputation, Trust, and Credibility 100
Provide Information 101
Website Marketing Considerations, Strategies, and Tactics 101
Website-Creation Strategy Considerations 101
Website Design Strategies and Tactics 106
Website Promotion Strategies 112
Website Content Strategies 113
Value for the Target Market 113
Language, Voice, Tone, and Style 114
Interactive, Dynamic, and Personalized Content and Media 115
SEO Content Strategy 115
Content Currency 115
Legal and Ethical Content 115
Website Marketing Analytics 116 Page viii

An Example: Google Analytics 117

Key Terms 123
Chapter Summary and Learning Objectives 123
Questions for Review 124
Mini Group Exercise/In-Class Discussion 124
Digital Marketing Case Study 124
Chapter Project 127
Notes 127

CHAPTER 5
Search Engine Optimization (SEO) Strategy 130
“Google It” 131

Evolution and Value of Search Engine Optimization 132

Value through Search Engine Optimization 132
SEO Objectives 134
Traffic, Leads, and Conversion 134
Build or Increase Brand Image, Reputation, Awareness, and Trust 135
SEO Considerations, Strategies, and Tactics 136
Keyword Strategies and Tactics 136
Website SEO Strategies and Tactics 138
Local SEO or Local Search Optimization (LSO) Strategies and Tactics 143
People Also Ask (PAA) SEO 144
SEO Content Strategies and Tactics 146
Unique, Engaging, Creative, and Specific Content 146
Content Planning 148
Technical Considerations for Content 149
SEO Analytics 150
Popular SEO Analytics Tools 150
Page-Load-Speed Analytics 152
Backlink Analytics 154
Key Terms 154
Chapter Summary and Learning Objectives 155
Questions for Review 156
Mini Group Exercise/In-Class Discussion 156
Digital Marketing Case Study 156
Notes 157

CHAPTER 6
Search Engine Marketing (SEM) Strategy 160
“Come In, We’re Open” 161

Evolution and Value of Search Engine Marketing 162

SEM Objectives 163
Increase Traffic, Leads, and Conversion 163
Gain Customer Insights 164
Establish Expertise 164
Build or Increase Brand Image, Reputation, and Trust 164
SEM Considerations, Strategies, and Tactics 165
Search Engine Selection Strategy 165
Account, Campaign, and Group Strategies and Tactics 167
Search Ad Auction and Bidding Strategy 170
Keyword Strategy 173
Display Ad Strategies and Tactics 180
Remarketing and Audience-Targeting Strategies 181
Landing Page and Website-Related Strategies 182
Budgeting Strategies and Tactics 182
SEM Content Strategies and Tactics 184
Search Ad Copy and Content Strategy 184
Responsive Ad Content 185
Relevant and Brand-Appropriate Content 186
Personalized Content 186
 Culturally Sensitive Content 186
Testing Content 186
SEM Analytics 187
Key Terms 189
Chapter Summary and Learning Objectives 190
Questions for Review 191
Mini Group Exercise/In-Class Discussion 191
Digital Marketing Case Study 191
Chapter Project 192
Optional Certification 192
Notes 192

Page ix

CHAPTER 7
Email Marketing Strategy 196
Target Email Campaign 197

Evolution and Value of Email Marketing 198

Email Marketing Objectives 198
Increase Awareness and Information 199
Gain Leads, Traffic, Sales, and Conversion 199
Increase Retention and Loyalty 200
Build Brand Image and Reputation 200
Email Marketing Considerations, Strategies, and Tactics 200
Email Marketing Plan 201
Types of Email Marketing 201
Email Campaign Strategies and Tactics 203
Email Marketing Content and Design Strategies and Tactics 214
Mobile-First Strategy 214
 Subject Line 215
Strategies and Tactics for Writing Effective and Sticky Body Text 216
Design and Experience Strategies and Tactics 216
Personalization 218
Calls-to-Action 218
Sensitive and Inclusive Content 218
Email Marketing Analytics 219
Key Terms 224 Page x
Chapter Summary and Learning Objectives 225
Questions for Review 225
Mini Group Exercise/In-Class Discussion 226
Digital Marketing Case Study 226
Chapter Project 227
Optional Certification: Email Marketing 227
Notes 227

CHAPTER 8
Social Media and Community Marketing Strategy 230
Social and Community Marketing Value Creation at Tokyo Restaurant
Takazawa 231

Evolution and Value of Social Media and Community Marketing 232

Social Media and Community Marketing Objectives 232
Increase Brand Awareness, Exposure, and Image 233
Increase Traffic, Leads, Sales, and Conversion 233
Improve Customer Service 234
Increase Engagement 235
Establish Expertise 236
Increase Community and Build Long-Lasting Relationships 236
 Increase Retention and Loyalty 236
Social Media and Community Marketing Considerations, Strategies, and
Tactics 236
Social Media Marketing Plan 237
Social Media Platform Strategies and Tactics 237
Social Media Management Platform Strategies and Tactics 256
Social Media Username and Account Strategies and Tactics 258
Social Media Optimization (SMO) and Community Optimization Strategies and
Tactics 259
Social Media Audit 259
Social Listening Strategy 259
Influencer, Advocate, and Guest Strategies and Tactics 260
Podcasting Strategies and Tactics 262
Social Media and Community Mobile Strategies and Tactics 263
Social Media Accessibility Strategy 264
Social Media and Community Marketing Content Strategies and Tactics 264
Content Type and Scheduling Strategies and Tactics 264
Language, Voice, Tone, and Style 265
Social and Community Storytelling Strategies and Tactics 266
Personalized Content 267
Current or Evergreen Content? 267
Syndicated Content 267
Content Optimized for Mobile-First 267
Platform-Specific Content Strategies and Considerations 267
Social Media and Community Marketing Analytics 271
Platform Analytics 271
Community Marketing Analytics 276
Key Terms 276
Chapter Summary and Learning Objectives 277
Questions for Review 277
Mini Group Exercise/In-Class Discussion 278
Digital Marketing Case Study 278
Chapter Project 279
Optional Certification 279
Notes 280

CHAPTER 9
Mobile Marketing Strategy 284
Starbucks App 285

Evolution and Value of Mobile Marketing 286

Mobile Marketing Objectives 286
Increase Brand Awareness, Exposure, and Image 286
Increase Leads, Traffic, Sales, and Conversion 288
Improve Customer Service 288
Increase Engagement, Retention, and Loyalty, and Build Relationships
289
Mobile Marketing Considerations, Strategies, and Tactics 289
Mobile Marketing Plan 289
Mobile Marketing Strategies and Tactics 289
Mobile Marketing Content Strategies and Tactics 308
Tone and Voice 308
Personalized Content 308
Textual versus Video, Image, and Interactive Content 309
Length and Placement of Content 309
Mobile Text Campaign Content Strategy and Tactics 309
Mobile Marketing Analytics 310
 Mobile App Analytics 310
Mobile Texting Analytics 316
Key Terms 317
Chapter Summary and Learning Objectives 317
Questions for Review 318
Mini Group Exercise/In-Class Discussion 318
Digital Marketing Case Study 319
Chapter Project 319
Notes 320

CHAPTER 10
Digital Brand, Trust, and Reputation Management Strategy
324
Brand Switching Online 325

What Are Digital Brand, Trust, and Reputation Management? 326

Digital Brand, Trust, and Reputation Management Objectives 327
Digital Brand, Trust, and Reputation Management Considerations, Strategies,
and Tactics 327
Digital Brand Strategies and Tactics 328
Digital Trust and Reputation Management Strategies and Tactics 331
Digital Brand, Trust, and Reputation Management Analytics 338
Key Terms 341
Chapter Summary and Learning Objectives 341
Questions for Review 341
Mini Group Exercise/In-Class Discussion 342
Digital Marketing Case Study 342
Notes 343

CHAPTER 11
Digital Marketing Legal, Ethical, Privacy, and Security
Considerations 346
Legal, Ethical, Privacy and Security Considerations in Digital Marketing 347

Digital Marketing Legal and Ethical Framework 348

Brief Overview of Law and Legal Framework 348
Key Digital Marketing Rules 348
Specific Digital Marketing Rules 350
Digital Influencer Marketing and the Law 351
Intellectual Property in Digital Marketing 351
Contract Law for Digital Marketing 355
Americans with Disabilities Act (ADA) and Digital Marketing 356
Digital Marketing Ethical Challenges 358
Digital Marketing Legal and Ethical Considerations, Strategies, and Tactics
358
Conduct Truthful and Fair Digital Marketing 358 Page xi

Disclose and Disclaim Where Required or Valuable 360

Use Simple Language and Build Trust 360
Create Policies and Review Content for Legal and Ethical Considerations
360
Seek Ethical Digital Partnerships 361
Factor in International and Local Legal and Ethical Considerations 361
Be Aware of the Changing Legal and Ethical Landscape 362
Digital Marketing Privacy and Security Framework 363
Personal Data or Personally Identifiable Information 363
Common Privacy and Cybersecurity Threats and Attacks in Digital Marketing
363
Privacy and Security Law and Regulation for Digital Marketing 365
 Frameworks, Industry Standards, and Self-Regulation 371
Platform Terms, Conditions, Contracts, and Approaches 372
Digital Marketing Privacy and Security Considerations, Strategies, and Tactics
372
Obtain Consent and Show Value Provided 372
Track Only as Needed 373
Provide Consumer Choice and Control 373
Employ at Least Reasonable Security and Privacy Measures 374
Follow All Applicable Laws and Rules 375
Avoid False or Exaggerated Claims and Promises 375
Have Clear Privacy Policies and Be Transparent 376
Minimize Data You Collect 376
Employ Due Diligence When Using Third-Party Services 377
Keep Up with Evolving Privacy and Security Environments 377
Key Terms 378
Chapter Summary and Learning Objectives 378
Questions for Review 379
Mini Group Exercise/In-Class Discussion 379
Digital Marketing Case Study 380
Notes 380

CHAPTER 12
Trends and the Future of Digital Marketing 386
The Internet of Senses by 2030? 387

Trends and the Future of Digital Marketing 388

Next Generation of Search 388
Smarter Marketing Automation 388
Cloud Services and Digital Marketing-as-a-Service 389
 IoT and IoE 389
A Cookieless World 389
Phygital 389
Smarter Environments 390
Blockchain and NFTs 391
Digital Campfires 391
Agile Project Management for Digital Marketing 393
Digital Realities and the Metaverse 393
AI in Digital Marketing 395
Digital Consumer–Machine Collaboration 398
Digital Marketing Trends and Future Considerations, Strategies, and Tactics
398
Embrace Change but Balance Emerging Technologies 398
Implement Voice Search Optimization with Context 398
Embrace Smart Environments and Provide Value 399
Employ Marketing Automation Where Relevant 399
Embrace Privacy and Security in Futuristic Digital Marketing 399
Broaden Ways to Understand Consumers 399
Key Terms 400
Chapter Summary and Learning Objectives 400
Questions for Review 400
Mini Group Exercise/In-Class Discussion 401
Digital Marketing Case Study 401
Notes 401

APPENDIX TO CHAPTER 2
Sample Strategic Digital Marketing Plan (Simplified) 406
GLOSSARY 423
INDEX 439
 Page xii

ABOUT THE AUTHOR

Dr. Raj Sachdev

Dr. Raj Sachdev, MSc (Oxford), M.B.A., LL.M, D.B.A., PCM (Digital Marketing),
CIPP/US, is an Assistant Professor of Marketing at Plymouth State University (PSU),
an Assistant Facilitator at Cornell University, a strategic digital marketing consultant,
an interdisciplinary researcher, a speaker, and an international lawyer (California,
England, and Wales). Having more than 26 years of industry and academic
experience, he has served in many capacities including in a number of marketing
and managerial roles. A graduate of Oxford University, he holds various degrees
from different institutions in the areas of marketing, business, technology, and law.
He is a PCM in Digital Marketing from the American Marketing Association (AMA); is
or previously has been certified in Google Analytics, Google Ads, digital marketing
(Google, HubSpot), social media (Hootsuite and HubSpot), email marketing
(Mailchimp), cybersecurity (GCHQ degree), and privacy (CIPP/US); and holds law
licenses. He holds membership in a number of organizations and thoroughly values
continuous learning.

Over the past 20 years, Dr. Sachdev has had the opportunity to teach/facilitate 50+
courses at different institutions, including at Oxford University, Stanford CSP, Cornell
University, and Columbia College among others. Having been awarded for his
teaching excellence, he has mentored students to win a national marketing-
simulation competition and has been a founding advisor to an AMA Collegiate
Chapter.

His TEDx talk at Northwestern University, “Value Creating Our Way to the Smart
Home of 2050,” focused on marketing in smart digital environments with emerging
and futuristic technologies. His keynote talk at AMA’s The Year Ahead 2021
conference covered “The Future of Smart Digital Marketing Amidst Cybersecurity
and Privacy Challenges.” He has also spoken at other major industry conferences
and events and has been a guest speaker at renowned universities such as Oxford,
Harvard, Cambridge, and Stanford.
Page xiii
As an interdisciplinary researcher, Dr. Sachdev is most interested in digital
marketing and the areas of emerging and futuristic technologies, privacy/security,
and law. He has written general and peer-reviewed articles, as well as short pieces
on avoiding “dumb” digital marketing in a smart world (The Marketing
Journal), smart robots and AI with strategies for digital marketing (Journal of AI,
Robotics, and Workplace Automation, forthcoming), smart home value creation
(IPMA Journal), social media trademark law (Thomson Reuters Carswell), and digital
marketing strategies related to privacy and security (AMA Marketing News), among
others. He proposed and created a new legal control for the Cloud Security Alliance
(CSA) IoT Security Controls Framework Version 2. He researches e-commerce
websites, search advertising, social media, and mobile app trademark law at
Maastricht University and was a visiting researcher at UC Berkeley.
 Page xiv

PREFACE
Digital Marketing is targeted primarily at undergraduate courses in Digital Marketing,
however it may also be used in certificate and graduate programs. It is grounded in
marketing theory and concepts and adopts a strategic and analytical approach with global
examples. The material can be used in any teaching format: in-class, online, and hybrid. Not
only does it reference some of the latest digital marketing tools, it also emphasizes current
marketing trends and shows how these may be applied.

Digital Marketing is sized to work in most course formats. Its 12 chapters include three
foundational chapters that introduce students to the general topic of digital marketing in a
digital world (Chapter 1), how to create value through strategic digital marketing (Chapter
2), with a sample strategic digital marketing plan (Appendix to Chapter 2), and digital
consumer behavior (Chapter 3). The product’s two concluding chapters look at the
important legal, ethical, privacy, and security issues relating to digital marketing (Chapter
11) and the trends and future of digital marketing (Chapter 12).

The middle chapters—Chapters 4 through 10—are “doing chapters.” These seven chapters
focus on how to use marketing theory and concepts, in combination with digital marketing
tools, to “do digital marketing.” Each of these chapters has a content structure that looks
first at value creation and objectives, and next at considerations, strategies, and tactics for
digital marketing related to the chapter topic. The strategies and tactics sections show
applications of marketing theory and concepts, using examples and references to popular and
effective digital marketing tools. They then look specifically at content strategy related to the
chapter topic.

Each of the “doing chapters” ends with a section on analytics, showing which analytics are
appropriate for monitoring the effectiveness of the digital marketing related to the chapter
topic. Where relevant, a summary table of the analytic measures appropriate for a specific
type of digital marketing is included.
Depending on the length and focus of their course, instructors can use any combination of
chapters in pretty much any sequence. The chapter content is primarily U.S.-based, but with
many global examples included in the text as well as additional feature boxes that highlight
specific global issues. (See the discussion of the feature boxes in the next paragraph.) As a
brand-new, first edition, the text is also very up-to-date, with a multitude of current
references, examples, screenshots, and (in Chapter 8) discussion of the current social media
platforms that students are familiar with.

Throughout relevant chapters, various feature boxes highlight relevant issues in Digital
Marketing:

• Digital Marketing Value Creation boxes highlight how organizations create

value for consumers, themselves, and/or society through digital marketing.

• Privacy and Security Considerations in Digital Marketing boxes focus on

incorporating privacy and security in digital marketing practices, being
compliant, and providing consumers with privacy and security options.
Page xv

• Legal and Ethical Issues in Digital Marketing boxes introduce students to key
laws, regulations, rules, and ethical issues in digital marketing relating to the
use of legal content and imagery, location targeting, influencers, intellectual
property, ethical search marketing, email marketing, and various other areas.
• Thinking about Global Digital Marketing boxes illustrate ways in which digital
marketing is practiced for consumers in countries outside of the United
States.

Each chapter offers useful end-of-chapter review and learning content including: key terms,
chapter summary with learning objectives, review questions, mini group exercise/in-class
discussion, and a digital marketing case study. Select chapters also offer a chapter project.

Focusing on students and incorporating their learning process, Digital Marketing has been
written as a resource with hands-on digital marketing exercises. Exercises are explained and
instructions are provided to guide students to understand what is required and to apply what
they have learned. With the student in mind, tools or technology are used for all relevant
practical exercises.

Some chapters recommend the completion of an industry certification, such as Google Ads,
Social Media, and Email Marketing. To gain these certifications, students will need to
engage in additional study beyond the relevant chapter. Instructor materials will detail
additional information about these certifications.
Instructor Support
The instructor material covers tips for each teaching format, including incorporating
material into online courses. The Instructor’s Manual includes many hands-on activities,
including hands-on projects and assignment questions for relevant chapters, information on
optional certifications, and additional tips for advanced or graduate courses. For example,
hands-on projects include creating a digital buyer persona, building a website (using tools,
not programming), and creating an SEM plan with keyword research, a social media plan,
an email marketing plan, a mobile marketing plan, and relevant reports. In Chapter 2, there
is an outline of a strategic digital marketing plan that can be used for a semester project,
with a sample provided in Appendix to Chapter 2.

The online Testbank content—offering 75 auto-gradable questions per chapter and quizzes
providing 25 auto-gradable questions per chapter—allows for assessment of students’ skill
level. Accessible PowerPoint® presentations support in-class instruction. All support
materials can be found within McGraw Hill’s Connect platform.
Page xvi

Page xvii
 Page xviii

ACKNOWLEDGMENTS
Many dedicated instructors offered their time and expertise to evaluate and shape
the content for this first edition. Their thoughtful feedback helped refine the text,
and I am grateful and thank them for their support and useful recommendations. I
would like to extend a special thanks to Ann Torbert, content editor, for her careful
review, guidance, and support throughout the writing process.

Parimal Bhagat, Indiana University of Pennsylvania

Mary Carlson, College of DuPage
Thomas Elmer, West Chester University
Teresa Greenlees, Western Michigan University
Jamie Grigsby, Missouri State University
Mary Haines, Ohio University
Aaron Hollister, Johnson County Community College
Austin Hostetter, Ball State University
Chris Huseman, Liberty University
Loran Jarrett, University of South Florida
Leslie L. Kendrick, Johns Hopkins University
Kacy Kim, Bryant University
Alisa Kinnebrew, Georgia Northwestern Technical College
Jeff Koleba, University of Louisville
Benjamin Lipschutz, Central Penn College
Boris Maciejovsky, University of California, Riverside
Jessica Malberti, University of Central Florida
Christopher George Medenwald, University of Arkansas, The Sam M. Walton
College of Business
John Akpesiri Olotewo, Essex County College
Brooke Petty, Johns Hopkins University
Arilova Randrianasolo, Butler University
Scott Roberts, University of the Incarnate Word
Anna Sadovnikova, Monmouth University
Lisa M. Sciulli, Indiana University of Pennsylvania
Adam Shelffo, Arapahoe Community College
Brian A. Vander Schee, Indiana University
Frank Wanderski, Metropolitan State University
Donna Wertalik, Virginia Tech
Christopher Wilkey, Ball State University
Shelly Zaldivar, Southwestern Assemblies of God University

I would also like to thank the McGraw Hill team: Tim Vertovec, managing director;
Michele Janicek, senior product development manager; Meredith Fossel, former
portfolio manager (currently director of market development); Jessica Dimitrijevic,
portfolio manager; Kelly Delso, lead product developer; Michelle Sweeden,
marketing manager; Marianne Musni, program manager; Susan Trentacosti and
Emily Windelborn, content project managers; Matt Diamond, designer; Sandy
Ludovissy, manufacturing project manager; and Traci Vaski, content licensing
specialist.
CHAPTER 1 Page 2

Digital Marketing in a Digital World

LEARNING OBJECTIVES

LO 1-1 Define digital marketing.

LO 1-2 Summarize the evolution and the environment of digital marketing.
LO 1-3 List the major types of digital marketing.
LO 1-4 Discuss how digital marketing can provide value.
LO 1-5 Apply the digital marketing mix.
LO 1-6 Explain key digital marketing objectives.
LO 1-7 Explain the importance of monitoring, measurement, and analytics to digital marketing.

Page 3

Digital Marketing in a Digital World

PopTika/Shutterstock

As a consumer in a digital world, you are exposed to digital marketing every day. You likely are familiar with shopping on an e-
commerce website, searching for products or services on Google, engaging with Facebook ads, or downloading an app from
the App Store to make a purchase. The average U.S. household has access to more than 10 digital devices. These might
include mobile phones, laptops, tablets, smart TVs, and others. This means that digital marketers have great opportunity to
reach consumers through various mediums, and each requires an understanding of digital marketing considerations.

Digital marketing has never been as important as it is today. Businesses of all kinds and sizes, from technology giants to a local
family restaurant, benefit from different types of digital marketing. Consumers rely on digital marketing to find, purchase, and
consume many types of products and services. It is hard to imagine a product or service that could not be marketed digitally.
Consumers digitally try on items such as clothes and glasses. They purchase groceries online. They are now even buying cars
online for quick delivery—and can even return the car within 30 days if they don’t like it and meet the return requirements.

Source: Lionel S. Vailshery, “Average Number of Connected Devices Residents Have Access to in U.S. Households in 2020, by Device,” Statista, last modified January 22, 2021,
https://www.statista.com/statistics/1107206/average-number-of-connected-devices-us-house/; “Carmax Home Delivery,” Carmax, accessed January 2, 2022, https://www.carmax.com/home-delivery.
 Page 4

What Is Digital Marketing?

LO 1-1 Define digital marketing.

To understand digital marketing, we must start with the definition of marketing in general.
According to the American Marketing Association (AMA), marketing is “the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at large.”1 It seeks to identify
and meet both human and social needs. A common element of many definitions of
marketing is value. One definition of value is that which a consumer receives for what the
consumer pays or provides.2

Digital marketing is an aspect of marketing that can be done in conjunction with or

separately from traditional marketing, defined as that which is not conducted digitally. We’ll
define digital marketing as marketing offerings of value to consumers and society through
digital means. The AMA refers to digital marketing as “the use of digital or social channels
to promote a brand or reach consumers.” In this context, a brand may be a “name, term,
design, symbol,” or other aspect that identifies one organization’s product or service and
distinguishes it from that of another.3

What is important about digital marketing is that it is always a changing, dynamic process.4
The true challenge is providing value within a fixed budget. As you will see in this chapter,
the many types of digital marketing are a major driving force behind many organizations’
marketing and can have substantial reach.
Evolution and Environment of Digital
Marketing

LO 1-2 Summarize the evolution and the environment of digital marketing.

While the terms World Wide Web (www), also known as the web, and Internet are used
interchangeably, they do not mean the same thing.5 The Internet includes the web, in a
global network that permits users to communicate, share, and obtain information from
anywhere the Internet is accessible.6 The World Wide Web is a part of the Internet and
includes various connected documents.7

The Evolution of Digital Marketing

Sir Tim Berners-Lee, widely known as the inventor of the web in 1989, likely had no idea the
extent to which the web would be used for digital marketing or the impact it would have on
consumers’ lives.8 By the 1990s, early forms of digital marketing were already seen on the
web. Exhibit 1-1 show the evolution of digital marketing. Actually, email marketing is an
example of digital marketing that originated back in the late 1970s and so predated the
web.9

Exhibit 1-1 Evolution of Digital Marketing

The development of the web in the 1990s started with Web 1.0, otherwise known as the
“read-only web.”10 Over time the web evolved, moving into the current Web 4.0, and the
next generation, Web 5.0, is now anticipated. Various types of digital marketing shown in
Exhibit 1-1 were used throughout the evolution of the web. In Web 1.0, websites became
popular and soon were used for marketing even in their most basic form. Advertising in the
form of banner ads on websites was prevalent and involved a display of an ad within
websites and by digital means. Mobile phones also started to gain popularity.11
Page 5
This era was followed by Web 2.0 in the years 2000–2009, during which social media
and interaction became widespread and the average consumer participated in adding
content to the web through user-generated content (UGC).12 This was also when the
individual consumer’s voice was heard through online channels such as MySpace,
Facebook, forums, and blogs. As mobile phones continued to gain popularity and became
capable of doing much more than earlier versions, mobile apps and mobile marketing
expanded the ability to market to users of these devices.

Web 3.0, otherwise known as the “semantic web,” involved a “web of data” and was
dominant in 2010–2019. Advertising based on a consumer’s online behavior and activity
became important in this phase, as did human–machine interaction, as computers became
more useful and performed some tasks based on data. Currently, Web 4.0, also known as the
“symbiotic web,” involves “intelligent interactions” between people and machines.13

Eventually we will enter Web 5.0, described by some as “sensory and emotive,” which will
take the web to a new level.14 What shape this may take is yet to be seen. Existing,
emerging, and futuristic technologies all affect digital marketing in many ways. In particular,
marketing to smart devices results in smart-environment marketing, which is changing the
way marketing is done. Yet, the oldest forms of digital marketing are still being used as
futuristic ones are always being contemplated.

Digital marketing is affected by forces in both the macro- and the micro-environments, as
described next.

Digital Marketing Macro-Environment

The macro-environment is a broad set of the forces generally not under the control of the
marketer.15 Francis J. Aguilar has been credited with describing these forces in his famous
ETPS analysis. Sometimes known as PEST analysis, it details Political, Economic, Social,
and Technical influences.16 A commonly used variation is the PESTEL analysis, which
incorporates the two additional factors of Environmental and Legal. The PESTEL forces
that affect digital marketing are discussed below.

Political
Political factors, including policies relating to foreign trade, may affect digital marketing.
Digital marketers must bear in mind import and export costs and shipping considerations
relating to specific countries. E-commerce websites that serve international audiences
especially need to consider such particularities. When countries or regions experience
political instability, digital marketers may be compelled to reconsider their strategies. In
some countries, government policies toward digital platforms may also affect whether a
digital marketer may use these successfully in those countries, if at all.

Economic
Digital marketing can serve to boost economic development; some even say that social
media fuels the economy.17 The economic status of certain countries, or across regions or
states within countries, may affect which countries or regions should be targeted in the
digital marketing strategy.

Disposable income of consumers is very relevant, because digital marketing helps to fulfill
everyday needs as well as wants of consumers. High unemployment may result in the need
to assess what consumers most value. Organizations must carefully measure fluctuations in
demand and supply.

Social
Differences in social attitudes toward digital marketing across regions must also be
considered. For example, it is a social norm in many regions to make purchases through
digital channels such as smart devices, where available. Lifestyle choices and social trends
can also compel digital marketers to be creative in their approaches
Consumers decide what they consider to be socially acceptable, and digital marketers Page 6

must cater to their target market’s understanding and avoid communicating in ways
that may offend those understandings.18 Some brands that directly take on social issues
may get a positive response from consumers, although such strategy can also backfire.19
Cultural considerations are key when presenting digital marketing to wide audiences. It may
not be the case that a single communication will be appropriate in an international setting.

Digital consumer behavior within a society will be discussed in Chapter 3. Digital

marketing ethics will be considered in content boxes in various chapters, and in more detail
in Chapter 11.

Technical
Technology plays a huge role in the field of digital marketing. Existing, emerging, and
futuristic technologies allow digital marketers to provide exceptional personalized and
convenient experiences to consumers in ways that would never have been expected just a few
years ago. As smart environments become more advanced, digital marketing is likely to play
an increasing role.

Technologies will be discussed throughout the chapters as relevant to each type of digital
marketing, and the future of digital marketing will be discussed in depth in Chapter 12.

Environmental
Organizations are finding ways to promote environmental factors and be sustainable. Digital
marketing can help reduce paper waste, as much activity is conducted via the Internet.20
Amazon, for example, is working to reduce carbon emissions, aiming for all of its power
usage to be from “100% renewable energy” and other initiatives by 2024.21

However, organizations providing services through the latest technologies and those
providing the most up-to-date devices must also consider digital waste (or e-waste) from the
perspective of older devices and electronics.22 Additionally, because much data is stored in
the cloud, it is important to consider cloud recycling, which involves recycling equipment
used in cloud data centers as organizations upgrade such equipment.23

Legal
Digital marketers must be aware of a number of legal considerations. Laws and regulations
concerning privacy and cybersecurity are on the rise. Digital marketers must adhere to
various requirements set out in these laws, such as the California Consumer Privacy Act
(CCPA) and the General Data Protection Regulation (GDPR) in the EU. Also, digital
marketing must adhere to advertising rules under the Federal Trade Commission Act and
enforced by the Federal Trade Commission (FTC), including prohibitions against “unfair and
deceptive practices.”24

Some products and advertising that may be legal in one country may not be legal in another.
Digital marketers must also respect intellectual property laws of the legal jurisdictions in
which they operate or market. Digital contracts must consider the legal rules of the places
where digital marketing is being conducted depending on local rules.

Digital marketing legal considerations will be discussed in occasional content boxes in

various chapters and in depth in Chapter 11.

Digital Marketing Micro-Environment

The micro-environment of digital marketing includes specific factors over which the
organization may have some control.25 The micro-environment consists of the organization
itself, its suppliers, digital marketing intermediaries, competitors, publics, and its
customers.26 Organizations may need to adjust their digital marketing strategies based on
the state of or changes in these environments.
Page 7

Organization
The organization itself is the key component of the micro-environment; it must be well
suited to engage in digital marketing and have a well-defined strategic plan backed by top
management. It must be able and willing to engage in certain risks and adapt its strategy to
changing circumstances. Hiring marketing employees and leadership who are well versed in
digital marketing can have a profound impact on the success of an organization.
Organizations that draw talent and input from across functional areas to consider optimal
digital marketing strategies often flourish.

Suppliers
Suppliers are those individuals or organizations that offer inputs, goods, or services that the
organization needs to manufacture or provide an end product or service to consumers.
Managing supplier relationships, expectations, and negotiation enables an organization to
be valuable to consumers. Walmart’s ability to purchase in large volumes, for example,
allows it to negotiate low prices with its suppliers as well as share data with suppliers to help
with inventory management.27

Intermediaries
Digital marketing intermediaries are those individuals, organizations, online services, and
platforms that assist in the marketing of products and services of one or more
organizations.28 Online retailers, search engines, social media platforms, portals, mobile
app stores, online lists, aggregators, networks, coupon sites, and many others may be
intermediaries.29 These intermediaries can be crucial to digital marketers, and carefully
selecting appropriate ones should be a part of ongoing strategic planning.

Competitors
The competitive landscape in a digital context can be substantial. The Internet has opened
doors to global competitors that may show up in search engine result pages (SERPs).
Finding ways to sustain a competitive advantage—the “superior position” an organization has
over its competitors because of the value it provides—is challenging. It is important to
regularly check the digital platforms that competitors are using and even learn from their
digital marketing activity, including what their customers are saying.30 Digital marketers
may employ various competitive strategies to sustain such advantage, which will be
discussed in Chapter 3

Publics
Publics include individuals or groups who have a stake in or influence on the ability of an
organization to attain its goals and purpose. Consumer groups can be a vocal public against
organizations that do not meet their understanding of products and services or the digital
marketing of these. Government publics such as the FTC regulate advertising and may
pursue action against organizations that violate relevant rules. The media may help boost or
hinder an organization through media reports of its activities, products, or services.

Customers
Understanding customers is paramount in digital marketing. Organizations must not only
provide value consistently but also deliver excellent customer experiences. Some customers
who face negative experiences are not shy to display their dissatisfaction through digital
channels; they may provide negative reviews that can hurt sales and the image of an
organization. Managing relationships with customers is crucial in digital marketing. These
matters are considered in Chapter 3.
 Page 8

Types of Digital Marketing

LO 1-3 List the major types of digital marketing.

The options for conducting digital marketing are many, and Exhibit 1-2 shows various
types of digital marketing. This section introduces the types of digital marketing. Each type
is also discussed in depth, along with key strategies, in the various chapters that follow.

Exhibit 1-2 Types of Digital Marketing

Email Marketing
Many consumers use email for communication purposes. As a tool, email marketing can be
very effective. It involves sending carefully crafted emails to pertinent audiences; it may
include promotions, new products, newsletters, or messages intended to keep a regular
connection with customers. Best Buy may send emails to consumers when they sign up for
promotional or informational services. It may send a promotion related to a purchase or an
offer for accessories for a recently bought item.

An email subject line will likely play a key role in determining whether the consumer will
open a marketing email. Whether the email will be read will depend on various factors,
including strategies used in email marketing. For example, Dropbox sent an email using the
subject line Dropbox and Paper, together. It used email marketing to promote a specific
service consumers may not have been aware of. Its email clearly indicated the value of the
service, Make working together easier, while describing what the service is. It also showed an
example while succinctly outlining key benefits. A conspicuously placed button appears for
consumers to Try Paper. Such a strategy is known as a call-to-action (CTA), an item that
promotes a desired action. Email marketing is discussed in detail in Chapter 7.
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 Transcriber’s Note:
Except for the frontispiece, illustrations have been moved to the text that
they illustrate, so the page number of the illustration may not match the page
number in the List of Illustrations.
Punctuation and spelling inaccuracies were silently corrected.
Archaic and variable spelling has been preserved.
Variations in hyphenation and compound words have been preserved.
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