Unit 1 of 4 · MBA Sem 3

Unit 1: Digital marketing strategy fundamentals

Strategic Digital Marketing notes · PTU syllabus (MBA 971-26)

3 min read7 topics10 exam questions
On this page
  1. Unit summary
  2. Evolution from traditional to digital marketing
  3. Digital economy and online business models
  4. Omnichannel marketing
  5. The digital marketing ecosystem
  6. Digital consumer behaviour and the customer decision journey
  7. Customer persona development
  8. Role of data in digital marketing decisions
  9. Key terms
  10. Quick revision
  11. Important questions

Unit summary

Digital marketing strategy starts with understanding how the digital economy and digital consumers behave. This unit covers the evolution from traditional marketing, the digital economy and online business models, omnichannel marketing, the digital marketing ecosystem, digital consumer behaviour and the customer decision journey, customer persona development, and the role of data in digital marketing decisions.

After this unit you can

  • Trace the evolution from traditional to digital marketing
  • Explain the digital economy, online business models and the digital ecosystem
  • Explain omnichannel marketing and the digital customer decision journey
  • Develop customer personas and explain the role of data in decisions

PTU syllabus topics

  • Evolution from traditional marketing
  • digital economy and online business models
  • omnichannel marketing
  • digital marketing ecosystem
  • digital consumer behaviour and customer decision journey
  • customer persona development
  • role of data in digital marketing decisions
ProcessDigital customer journey
  1. 1Awareness

    Social, search, ads

  2. 2Consideration

    Reviews, comparisons

  3. 3Purchase

    Website, app, marketplace

  4. 4Retention

    Email, loyalty

  5. 5Advocacy

    Reviews, referrals

1

Topic 1

Evolution from traditional to digital marketing

ProcessEvolution of marketing
  1. 1Marketing 1.0

    Product-centric — mass production and mass media

  2. 2Marketing 2.0

    Customer-centric — segmentation and positioning

  3. 3Marketing 3.0

    Human-centric — values and purpose

  4. 4Marketing 4.0

    Traditional to digital — connectivity and advocacy

  5. 5Marketing 5.0

    Technology for humanity — AI, data, immersive tech (Kotler)

ComparisonTraditional vs digital marketing
Traditional marketing
Digital marketing

Communication

One-way, mass broadcast

Two-way, personalised, real time

Targeting

Demographic, broad

Behavioural, contextual, precise

Measurement

Delayed, estimated

Instant, granular

Cost

High fixed costs

Scalable, pay for results

Customer role

Passive audience

Co-creator and advocate

2

Topic 2

Digital economy and online business models

  • Digital economy: economic activity based on digital technologies, data and online platforms — e-commerce, digital payments, software, digital media, gig work. India's digital public infrastructure (Aadhaar, UPI, ONDC, DigiLocker) is a major enabler.
ClassificationOnline business models
Online models
  • E-tailer

    Sells own inventory online — D2C brands

  • Marketplace

    Connects buyers and sellers for a commission — Amazon, Flipkart

  • Subscription

    Recurring fee — Netflix, Spotify

  • Freemium

    Free basic, paid premium — LinkedIn, Canva

  • Advertising

    Free content funded by ads — YouTube, news sites

  • Aggregator

    Brands many providers under one platform — Zomato, Ola

  • Affiliate and lead generation

    Earns commission for referrals — PolicyBazaar

3

Topic 3

Omnichannel marketing

ComparisonMultichannel vs omnichannel
Multichannel
Omnichannel

Focus

Many channels operating separately

Integrated, seamless experience across channels

Customer data

Siloed by channel

Single customer view

Experience

Inconsistent

Continuous — start online, finish in store

Example

Separate website and store offers

Buy online, pick up in store; app shows store stock

  • Enablers: unified commerce platforms, CRM, inventory visibility, consistent pricing and branding, staff incentives that do not penalise online sales.
4

Topic 4

The digital marketing ecosystem

ClassificationDigital marketing ecosystem
Ecosystem
  • Owned media

    Website, app, email list, social pages

  • Paid media

    Search ads, display, social ads, sponsored content

  • Earned media

    Reviews, shares, mentions, PR, word of mouth

  • Platforms and intermediaries

    Google, Meta, marketplaces, ad networks, agencies

  • Technology (martech)

    Analytics, CRM, automation, CMS, CDP

  • POEM framework: paid, owned and earned media work together — paid drives reach, owned converts and retains, earned builds trust.
5

Topic 5

Digital consumer behaviour and the customer decision journey

CycleConsumer decision journey (McKinsey)
Consumer decision journey (McKinsey)
1Initial consideration set
2Active evaluation
3Moment of purchase
4Post-purchase experience
5Loyalty loop
  1. 1. Initial consideration set:
  2. 2. Active evaluation: Information gathering, reviews, comparison
  3. 3. Moment of purchase:
  4. 4. Post-purchase experience:
  5. 5. Loyalty loop: Repeat purchase, advocacy
  • Zero moment of truth (Google): the online research moment before purchase; 5As (Kotler): aware, appeal, ask, act, advocate.
  • Digital consumers: mobile-first, research-heavy, review-reliant, short attention spans, expect personalisation and instant service; vernacular content matters in India.
6

Topic 6

Customer persona development

  • Persona: a semi-fictional profile of an ideal customer based on research and data.
ProcessBuilding a persona
  1. 1Gather data

    Analytics, CRM, surveys, interviews

  2. 2Identify patterns

    Demographics, goals, pain points, behaviours

  3. 3Create the profile

    Name, photo, quote, goals, challenges, channels, objections

  4. 4Map content and channels

    What they need at each journey stage

  5. 5Validate and update

Example

"Priya, 28, Pune, software engineer: buys skincare on Nykaa, trusts dermatologist reels on Instagram, wants clean ingredients, worried about fakes" — guiding content, channels and offers.

7

Topic 7

Role of data in digital marketing decisions

  • Data types: first-party (own website, app, CRM), second-party (partner data), third-party (purchased), zero-party (shared voluntarily — preferences, quizzes).
  • Uses: targeting and personalisation, attribution, budget allocation, A/B testing, predictive scores, customer lifetime value.
  • Shift to first-party data: cookie restrictions and privacy law (DPDP Act 2023) make owned data and consent management essential; customer data platforms (CDPs) unify profiles.

Key terms

Digital economy
Economic activity built on digital technologies and platforms
Omnichannel
Seamless integrated experience across all channels
Earned media
Exposure gained through shares, reviews and mentions
Customer persona
Research-based profile of an ideal customer
First-party data
Data a firm collects directly from its customers

Quick revision

  • Marketing 1.0 to 5.0; traditional vs digital.
  • Digital economy; DPI; online business models.
  • Multichannel vs omnichannel; enablers.
  • Ecosystem: owned, paid, earned media; martech.
  • Decision journey, ZMOT, 5As; personas; first-, second-, third-, zero-party data.

Important exam questions

Practice questions written to the PTU exam pattern for this unit's syllabus: short answers (Section A style) and long answers (Sections B and C style).

Short-answer questions

  1. Q1.State three differences between traditional and digital marketing.
  2. Q2.Name four online business models.
  3. Q3.Distinguish multichannel and omnichannel marketing.
  4. Q4.What is earned media?
  5. Q5.What is the zero moment of truth?
  6. Q6.What is zero-party data?

Long-answer questions

  1. Q1.Trace the evolution from traditional to digital marketing.
  2. Q2.Explain the digital economy and online business models.
  3. Q3.Discuss omnichannel marketing and the digital marketing ecosystem.
  4. Q4.Explain the digital customer decision journey and persona development.

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