UNIT V - FUNDAMENTALS OF MARKETING BBA I SEM (NEW SYLLABUS2025) STUDY NOTES

5.0.1 ONLINE MARKETING

1. Definition

Online marketing (also called digital marketing) refers to promoting products, services, or brands through the internet and digital platforms. It uses websites, search engines, social media, email, and other online tools to connect with customers.

2. Features of Online Marketing

1.      Global Reach – Businesses can connect with customers worldwide.

2.      Cost-Effective – Cheaper than traditional advertising (TV, print).

3.      Interactivity – Allows two-way communication between business and customer.

4.      Personalization – Ads and offers can be customized based on user data.

5.      Measurable Results – Performance can be tracked (clicks, conversions, sales).

6.      24/7 Availability – Customers can access products or services anytime.

3. Importance of Online Marketing

·         Wider Audience: Reaches more people than local/traditional marketing.

·         Customer Engagement: Builds relationships via social media and content.

·         Targeting Specific Groups: Ads can reach people based on age, interest, or location.

·         Quick Feedback: Businesses can understand customer needs instantly.

·         Brand Building: Enhances visibility and credibility online.

·         Competitive Advantage: Helps businesses stay ahead in the digital era.

4. Types of Online Marketing

1.      Search Engine Optimization (SEO)
Improving website structure, keywords, and content so it ranks higher in unpaid (organic) search results. This increases visibility and long-term traffic.

2.      Search Engine Marketing (SEM)
Running paid ads on search engines like Google, so your business appears at the top when users search specific keywords. Works faster than SEO.

3.      Social Media Marketing (SMM)
Using platforms like Facebook, Instagram, LinkedIn, and Twitter to promote products, engage with customers, and build brand communities.

4.      Content Marketing
Creating valuable blogs, videos, infographics, or guides that educate or entertain users, helping to attract and retain customers over time.

5.      Email Marketing
Sending newsletters, product updates, and promotional offers directly to customers’ inboxes to build relationships and encourage purchases.

6.      Affiliate Marketing
Partnering with affiliates (bloggers, influencers, websites) who promote your products in exchange for a commission on sales they generate.

7.      Influencer Marketing
Collaborating with well-known personalities or social media figures whose recommendations influence their followers’ buying decisions.

8.      Pay-Per-Click (PPC)
Placing ads online where businesses pay only when a user clicks the ad. Commonly used in search engines and social media ads.

9.      Mobile Marketing
Promoting products through smartphones via apps, SMS, push notifications, and mobile-friendly ads to reach customers on the go.

Advantages and Disadvantages of Online Marketing

Advantages

1.      Wider Reach – Businesses can reach global customers beyond local markets.

2.      Cost-Effective – Cheaper than traditional ads like TV, print, or billboards.

3.      Targeted Marketing – Ads can focus on specific demographics, interests, and behaviors.

4.      Measurable Results – Tools like Google Analytics show clicks, conversions, and ROI.

5.      24/7 Availability – Customers can view and purchase products anytime.

6.      Engagement & Interaction – Builds relationships through feedback, reviews, and social media.

7.      Personalization – Tailored offers and recommendations based on customer data.

Disadvantages

1.      High Competition – Many businesses compete online, making visibility harder.

2.      Privacy Concerns – Collecting customer data raises security and trust issues.

3.      Requires Internet Access – Customers without stable internet may be left out.

4.      Ad Blindness – Users often ignore or block online ads due to overexposure.

5.      Negative Feedback Visible – Bad reviews spread quickly and affect reputation.

6.      Constant Updates Needed – Technology, trends, and algorithms change rapidly.

7.      Risk of Fraud/Scams – Fake ads or websites may reduce customer trust.

5.1   SOCIAL MEDIA

1. Introduction

• Social media has become a powerful platform where businesses and customers interact.
• From Facebook, Instagram, LinkedIn, YouTube, to Twitter (X), companies use social media to promote products, build relationships, and create brand awareness.
• It is faster, cheaper, and more engaging compared to traditional marketing.

2. Role of Social Media in Marketing

1. Brand Awareness – Social media helps businesses reach large audiences quickly.
2. Customer Engagement – Companies interact directly with customers through comments, likes, polls, and messages.
3. Content Promotion – Businesses share posts, videos, blogs, and ads to attract attention.
4. Market Research – Social media provides insights into customer preferences, trends, and competitor strategies.
5. Customer Support – Companies use platforms like Twitter or WhatsApp for quick problem-solving.
6. Advertising Platform – Paid ads on social media allow businesses to target specific groups based on age, interests, or location.

3. Importance of Social Media in Marketing

1. Cost-Effective – Cheaper than TV, print, or outdoor advertising.
2. Wide Reach – Connects with millions of people across the world instantly.
3. Targeted Marketing – Ads can be shown to specific audiences (e.g., only students, women, or professionals).
4. Builds Relationships – Helps brands connect with customers on a personal level.
5. Boosts Sales – Social media campaigns often lead to direct purchases through “Shop Now” or website links.
6. Encourages Word-of-Mouth – Customers share reviews, likes, and recommendations.
7. Improves Brand Image – Regular updates and engagement make a brand appear trustworthy and modern.
8. Performance Measurement – Businesses can track likes, shares, clicks, and conversions to measure success.

4. Examples

• Nike uses Instagram campaigns with athletes to inspire customers.
• Zomato engages customers with funny posts and quick responses on Twitter.
• Apple runs YouTube ads showcasing product features with real-life experiences.

5. Advantages

• Global visibility.
• Real-time customer feedback.
• Interactive and engaging.
• Flexible (ads can be adjusted instantly).

 

5.2 EXPERIENTIAL MARKETING

 

Traditional marketing focused on features and benefits of a product.  Modern marketing emphasizes customer experiences rather than just products. Experiential Marketing means creating memorable, engaging experiences that allow customers to connect emotionally with a brand.

Experiential marketing is a strategy where companies engage customers through experiences that involve their senses like ear, nose, skin, also emotions, and participation.

2.      Instead of simply telling people about a product, companies let them feel, try, or interact with it.

3.      It is also called Engagement Marketing or Live Marketing.

 

Features of Experiential Marketing:

1.       Customer-focused – Experiences are designed around customer needs and emotions.

2.       Interactive – Customers are actively involved (not passive listeners).

3.       Memorable – Creates long-lasting impressions in customers’ minds.

4.       Emotional Connection – Builds relationships beyond price and product.

5.       Multi-sensory – Appeals to sight, sound, touch, taste, and smell.

Importance:

1.       Helps in brand differentiation in a competitive market.

2.       Creates strong emotional bonds with customers.

3.       Increases customer loyalty and word-of-mouth promotion.

4.       Allows customers to experience the brand values directly.

5.       Builds positive associations that go beyond advertisements.

 

Types of Experiential Marketing:

1.      Experiential Events – Brand-sponsored events (music festivals, product launches).

2.      Product Sampling/Trials – Customers try the product before buying (food samples in stores, free trials of apps).

3.      Immersive Experiences – Virtual reality (VR), augmented reality (AR), or interactive displays.

4.      Pop-up Stores – Temporary outlets that attract curiosity and offer unique experiences.

5.      Brand Activations – On-ground activities that encourage direct engagement (games, contests).

Examples:

1.       Coca-Cola Happiness Machine – A vending machine that surprised people with free drinks and gifts.

2.       Nike Run Clubs – Organizes running events to promote fitness and brand values.

3.       IKEA Experience Centers – Let customers walk through model homes to see furniture in real settings.

4.       Starbucks – Creates cozy in-store experiences with music, free Wi-Fi, and personalized drinks.

Advantages

1. Builds emotional engagement.
2. Encourages customer participation.
3. Generates positive word-of-mouth.
4. Creates brand loyalty.
5. Provides real-time feedback from customers.

 Challenges

1. High cost – Events and experiences can be expensive.
2. Limited reach – Usually targeted to smaller groups compared to mass advertising.
3. Difficult to measure ROI – Impact on sales is not always immediate.
4. Risk of failure – If poorly designed, experiences may backfire.

 

5.3 GREEN AND SUSTAINABLE MARKETING PRACTICES

1. Introduction

Green Marketing (also called Sustainable Marketing) means marketing products and services that are environmentally friendly.

It focuses on reducing negative impacts on the environment, promoting eco-friendly practices, and creating long-term value for society.

Companies adopt green marketing not just to earn profit, but also to build goodwill, meet regulations, and respond to consumer demand for eco-friendly products.

  

2. Meaning & Key Terms    

Green Marketing: Promoting products based on their   environmental benefits (e.g., organic food, biodegradable packaging).

Sustainability: Meeting the needs of the present without compromising future generations’ ability to meet their needs.

Sustainable Marketing: A broader approach that balances profitability, consumer satisfaction, and environmental protection.

3. Features of Green Marketing

1. Focuses on products that are safe for the environment.
2. Uses eco-friendly packaging (recyclable, biodegradable).
3. Encourages energy-efficient production and distribution.
4. Promotes ethical practices (no exploitation of labor or environment).
5. Aims for long-term customer relationships rather than short-term profit.

  

4. Importance of Green & Sustainable Marketing

1. Consumer Awareness – Growing concern about pollution, waste, and climate change increases demand for green products.
2. Competitive Advantage – Eco-friendly companies can stand out in the market.
3. Government Regulations – Laws and policies push companies to adopt sustainable practices.
4. Cost Savings – Using renewable energy and reducing waste lowers costs in the long run.
5. Corporate Social Responsibility (CSR) – Builds goodwill and reputation.
6. Future Survival – Sustainable business ensures long-term success.

 

5. Strategies of Green & Sustainable Marketing

1. Eco-friendly product design – Using natural, recyclable, or renewable materials.
2. Green packaging – Minimal, reusable, or biodegradable packaging.
3. Eco-labeling – Certification marks like Energy Star, FSC, Organic Certification.
4. Green logistics – Reducing carbon emissions in transportation and distribution.
5. Waste reduction – Recycling, reusing, and reducing waste in operations.
6. Awareness campaigns – Educating customers about eco-friendly consumption.

 

6. Examples of Green Marketing

1. Tesla – Electric vehicles reduce carbon emissions.
2. Patagonia – Clothing brand promoting recycled materials.
3. IKEA – Uses renewable energy and sells eco-friendly furniture.
4. Paper straws instead of plastic – Adopted by restaurants and cafes.
5. Making straws from fallen coconut leaves – sunbird straws (Bengaluru by Professor Saji Varghese)

 7. Challenges of Green Marketing

1. High production costs – Eco-friendly technology and materials are expensive.
2. Consumer skepticism – Some companies practice greenwashing (false claims about being eco-friendly).
3. Limited awareness – Not all consumers are willing to pay more for green products.
4. Certification issues – Difficulty in standardizing eco-labels across industries.

 8. Benefits of Green & Sustainable Marketing

1. Builds brand loyalty.
2. Increases customer satisfaction.
3. Reduces environmental impact.
4. Improves long-term profitability.
5. Enhances global competitiveness.

9. Conclusion

Green and sustainable marketing is not just a trend but a necessity for modern businesses. By focusing on eco-friendly products, ethical practices, and social responsibility, companies can achieve long-term success while protecting the environment.

SHORT NOTES

 1. Customer Relationship Management (CRM)

Meaning: CRM is both a business strategy and a software system that helps organizations manage their interactions with customers. It focuses on building strong, long-term relationships.

Functions:

1.       Collects and stores customer data (name, preferences, purchase history).

2.       Helps sales teams track leads and follow up efficiently.

3.       Automates marketing campaigns (emails, reminders, promotions).

4.       Analyzes customer behaviour to predict future needs.

Importance: By improving customer satisfaction, CRM boosts loyalty, repeat purchases, and overall revenue.

Example: Amazon recommending products based on your browsing and purchase history is powered by CRM data.

 

2. Partner Relationship Management (PRM)

Meaning: PRM is a system designed to manage relationships with business partners like dealers, distributors, resellers, or affiliates who help sell products.

Functions:

1.       Provides partners with training, product updates, and marketing materials.

2.       Tracks partner sales performance and incentives.

3.       Improves communication between the company and its partner network.

4.       Ensures consistency in branding and customer experience across all partners.

Importance: Strong partner relationships expand market reach, reduce costs, and improve collaboration between companies and their networks.

Example: Microsoft uses PRM to train and support its thousands of reseller partners worldwide.