Unit 3: Platform economy and ethics
Strategic Digital Marketing notes · PTU syllabus (MBA 971-26)
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Unit summary
Platforms dominate digital commerce, and trust, security and data ethics decide who wins. This unit covers e-commerce and platform-based business models, mobile and social commerce, online reputation management, cybersecurity and legal aspects, data privacy regulations, AI and machine learning applications, chatbot integration and the role of CRM systems.
After this unit you can
- Explain platform business models, mobile commerce and social commerce
- Manage online reputation
- Explain cybersecurity, legal aspects and data privacy regulation
- Explain AI, chatbots and CRM in digital marketing
PTU syllabus topics
- E-commerce and platform-based business models
- mobile and social commerce
- online reputation management
- cybersecurity and legal aspects
- data privacy regulations
- AI and machine learning applications
- chatbot integration
- role of CRM systems
Reputation management
Monitor reviews and respond
Cybersecurity
Protect customer data
Data privacy
DPDP Act 2023, GDPR
AI and chatbots
Automate service, with oversight
CRM
Single view of the customer
Topic 1
E-commerce and platform-based business models
- Platform: a business that creates value by facilitating exchanges between two or more interdependent groups (buyers and sellers, riders and drivers, users and advertisers).
- Network effects: the platform becomes more valuable as more users join — direct (same side) and indirect (cross side).
Value creation
Linear — firm makes and sells
Ecosystem — users and producers interact
Assets
Owns inventory and resources
Orchestrates others' resources
Growth
Through internal capacity
Through network effects
Example
A traditional manufacturer
Amazon marketplace, Uber, Airbnb, Swiggy
- ONDC (2022): India's open network that lets any buyer app connect with any seller app — unbundling platforms.
Topic 2
Mobile and social commerce
- Mobile commerce: buying through smartphones — apps, mobile web, UPI payments, one-tap checkout, push notifications, location-based offers; India is a mobile-first market.
- Social commerce: buying within social platforms — Instagram and Facebook shops, WhatsApp catalogues and payments, live-stream shopping, reseller platforms (Meesho), influencer storefronts.
- Success factors: seamless checkout, trust (reviews, cash on delivery), creator content, vernacular languages.
Topic 3
Online reputation management
- 1Monitor
Social listening, review sites, Google alerts
- 2Analyse
Sentiment, volume, sources
- 3Respond
Quick, empathetic, factual; move complaints to private channels
- 4Build positive presence
Encourage reviews, share content, PR
- 5Crisis management
Prepared protocols, transparent communication
- Tools: Brandwatch, Sprinklr, Talkwalker, Google Business Profile, platform insights.
Example
A food delivery app responds within an hour to a viral complaint about a late order, refunds the customer publicly and explains the fix — turning criticism into goodwill.
Topic 4
Cybersecurity and legal aspects
- Threats: phishing, data breaches, account takeover, ransomware, fake websites and apps, ad fraud, bot traffic.
- Safeguards: HTTPS and encryption, multi-factor authentication, secure payment gateways (PCI DSS), regular audits, employee training, incident response plans; CERT-In requires reporting of cyber incidents within six hours.
- Legal framework: IT Act 2000 and IT Rules 2021 (intermediary obligations), Consumer Protection Act 2019 and E-Commerce Rules 2020, CCPA guidelines on misleading ads (2022) and dark patterns (2023), ASCI influencer guidelines, trademark and copyright law.
Topic 5
Data privacy regulations
- India — Digital Personal Data Protection Act, 2023: consent that is free, specific, informed and unambiguous; notice of purpose; purpose limitation and data minimisation; rights to access, correction, erasure and grievance redressal; duties of data fiduciaries; special care for children's data (verifiable parental consent; no tracking or targeted ads at children); Data Protection Board; penalties up to ₹250 crore.
- Global: EU's GDPR, California's CCPA — relevant for firms serving foreign customers.
- Marketing implications: consent management platforms, cookie banners, first-party data strategies, privacy-by-design.
Topic 6
AI and machine learning applications
Personalisation
Recommendations, dynamic content
Predictive analytics
Churn, purchase propensity, lead scoring
Programmatic advertising
Real-time bidding and targeting
Generative AI
Ad copy, images, video, product descriptions
Search and voice
Semantic search, voice assistants
Pricing
Dynamic pricing
Analytics
Sentiment analysis, customer insights
- Cautions: bias, transparency, accuracy of generated content, copyright, disclosure of AI use.
Topic 7
Chatbot integration
- Chatbots: rule-based (menu flows) or AI-powered (natural language) assistants on websites, apps and WhatsApp.
- Uses: 24×7 customer service, FAQs, order tracking, lead qualification, product recommendations, appointment booking.
- Integration: connect with CRM, order and payment systems; hand over to a human agent for complex issues; track resolution rate and satisfaction.
Topic 8
Role of CRM systems
- CRM: strategy and technology to manage customer relationships and data across touchpoints.
- Functions: contact and lead management, sales pipeline, marketing automation, customer service tickets, analytics and segmentation.
- Tools: Salesforce, HubSpot, Zoho CRM, Microsoft Dynamics.
- Benefits: single customer view, personalised communication, better retention, measurable ROI.
Key terms
- Platform business
- Business facilitating exchange between groups of users
- Network effect
- Value rises as more users join
- Social commerce
- Buying within social media platforms
- Online reputation management
- Monitoring and shaping a brand's online image
- Data fiduciary
- Entity deciding the purpose and means of processing personal data
Quick revision
- Platforms and network effects; pipeline vs platform; ONDC.
- M-commerce and social commerce; success factors.
- ORM process and tools.
- Cyber threats and safeguards; IT Act, E-Commerce Rules, CCPA guidelines; DPDP Act 2023.
- AI applications; chatbots; CRM functions and tools.
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
- Q1.What are network effects?
- Q2.Distinguish pipeline and platform businesses.
- Q3.What is social commerce?
- Q4.State three steps in online reputation management.
- Q5.State two obligations of data fiduciaries under the DPDP Act.
- Q6.Name two uses of chatbots in marketing.
Long-answer questions
- Q1.Explain platform-based business models and network effects.
- Q2.Discuss mobile and social commerce in India.
- Q3.Explain online reputation management, cybersecurity and legal aspects of digital marketing.
- Q4.Discuss the role of AI, chatbots and CRM in digital marketing.
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