Philip Kotler on Digital Marketing

Marketing Management Revision Article Series

The Internet is having an impact today that is comparable to what the world felt when Gutenberg introduced the idea of printing.  The Internet, social media and new communication technologies are major game changers in marketing.  The company cannot promote its brand by having a monopoly on communications about its brands.  It is the consumers and their peer-to-peer talk that is shaping consumer images of brands and what to buy and how much to pay.  No Company can afford to deceive customers without being quickly exposed on the Internet.
New digital  technologies affect all of the 4Ps of marketing. The advent of 3D Printing will help entrepreneurs design new products cheaper and faster.  The development of software to do dynamic pricing will allow airlines to change the price of seats depending on the number of seats already sold. The development of new distribution channels such as online seller, Amazon and others,  and eBay are increasing the ease of transacting.  The development of social media technologies such as Facebook, Twitter and YouTube are changing marketing tools for promotion.

Traditional advertising will contribute to be a brand builder but it will have to do it with a lower budget.  Some percentage of every company’s advertising budget will have to move into digital and social media marketing.  It may conceivably in five or more years rise to 50 percent.  Traditional advertising will increasingly partner with digital marketing, one supporting the other in a synergistic way.

Company Moves to use Digital Marketing Opportunity

1. Companies will increasingly resort to crowdsourcing to get ideas for new products, new advertising campaigns, and new sales promotion ideas.

2. Companies will increasingly move to marketing automation where they use artificial intelligence to carry out marketing activities that were formerly done by skilled marketers.

3. Companies will increasingly learn how to produce “lovemarks” with their customers and employees.

Edition  15 of Marketing Management by Kotler and Keller on Digital Marketing

New trends in marketing are co-creation, crowd-sourcing, sustainability, dynamic pricing, digital marketing, marketing automation, and growth strategies. Many of these are based on digital technologies.

Online Marketing Communication and Promotional Opportunities

Web Sites
Search ads
Display ads
Internet-specific ads and videos
Alliances and affiliate programs
Online communities
Mobile marketing

Web Sites

Visitors will visit sites based on their need and judge a site’s performance on ease of use and physical attractiveness. The physical attractiveness depends on typefaces, fonts and good use of color and sound. The statistics of visitors to various sites are collected by some agencies.
People have to be aware of the web site of an organization to visit it. For facilitating it, companies advertise their web site in all their communications. But the general practice now, is for people to use search engines to find the specific web site or web sites related to topics they want to visit. Hence search engine optimization has to be done by the company to get its web site included in the search results for more number of search terms. Search engine optimization (SEO) has become an important area in interactive marketing.

Key Design Elements of Effective Web Sites

Rayport and Jaworski propose that effective sites feature seven design elements they call 7Cs.

Context: Layout and design
Content: Text, pictures, sound, video
Community: User-to-user communication
Customization: Site’s personalization ability
Communication: Site-user communication
Connection: Links to other sites
Commerce: Ability to conduct transactions


Microsite is a site within the site of another related organization. For example, a vehicle insurance company can have a microsite on the website of a vehicle seller. Microsites can be sites paid for by an external advertiser/company. This explanation was given in the 13th Edition. In the oods/products classification, there is a category of unsought products. People do not visit websites of unsought products. Therefore microsites of unsought products can be hosted on websites of products in demand to gain the attention of the consumer.

Online Advertisements

The two major categories are Search Ads and Display Ads.

Search Ads

Search ads has a dominating marketing share today.Along with the general search results, search engines show some sites which pay money for it. This is the search ad feature. The average click through rates for search ads is estimated to be 2% and marketers are happy with this response and the cost of search advertising which is given as 35 cents per click. Google adwords is search ads program and people are specializing in finding out and bidding for key words that have better consumer responses.

Display Ads

In the early days of internet, banner ads had click rates of 2 to 3 percent. But very quickly the click through rates plummeted. Kotler and Keller give the opinion that display ads still hold great promise. But ads need to be more attention-getting.

YouTube Video Marketing

YouTube videos are popular as internet specific videos. Many brands are using YouTube to post videos having advertisement content and they are having very good number of views sometimes in millions.

Internet content can be sponsored.

Alliances and Affiliate Programmes
The most popular ones are Google Adsense and Amazon affiliate programe

Online Communities
Nestle has 750 Facebook pages covering its various brands.

Email Marketing
e-Marketing Guidelines

Give the customer a reason to respond
Personalize the content of your emails
Offer something the customer could not get via direct mail
Make it easy for customers to unsubscribe

Social Media

Social Media Success Case: Dollar Shave Club

The video that went viral and got 12000 subscribers.
Uploaded on 6 March 2012
Now 26 million+ views



8 Content Marketing Tricks That Helped Dollar Shave Club Go Viral
Last Updated on March 26, 2019

Same content in another page:

CMO Adam Weber’s View: How Dollar Shave Club built its brand on video marketing
As the company’s first marketing employee, Adam Weber now serves as Dollar Shave Club’s CMO, leading the brand’s video marketing strategy.
July 20, 2016

Mobile Marketing

Mobile is being now used to access internet and do transactions like booking tickets and online shopping. There are more than twice as many mobile phones in the world as personal computers. Mobile presents an opportunity to marketers to reach a big audience and also to reach them at more opportune time. Mobile advertising has already crossed $1 billion level and established itself as a viable advertising option. But the screen size being small, advertisers have to develop designs that are appealing and ease to users.

Marketing 4.0: Moving from Traditional to Digital

Marketing 4.0 is about balancing machine-to-machine (M2M) with human-to-human (H2H).

New Ideas in Marketing 4.0

‘Segmentation and Targeting’ to ‘Customer Community Confirmation’
‘Selling the 4P’s’to ‘Commercializing the 4C’s’
‘Customer Service Processes’ to ‘Collaborative Customer Care’
‘Brand Positioning and Differentiation’ to ‘Brand Characters and Codes’
‘Segmentation and Targeting’ to ‘Customer Community Confirmation’


Marketing 4.0: Moving from Traditional to Digital

Philip Kotler, Hermawan Kartajaya, Iwan Setiawan
John Wiley & Sons, 05-Dec-2016 – Business & Economics – 208 pages

Marketing has changed forever—this is what comes next

Marketing 4.0: Moving from Traditional to Digital,  written by the world’s leading marketing authorities, helps you navigate the increasingly connected world and changing consumer landscape to reach more customers, more effectively. Today’s customers have less time and attention to devote to your brand—and they are surrounded by alternatives every step of the way. You need to stand up, get their attention, and deliver the message they want to hear. This book examines the marketplace’s shifting power dynamics, the paradoxes wrought by connectivity, and the increasing sub-culture splintering that will shape tomorrow’s consumer; this foundation shows why Marketing 4.0 is becoming imperative for productivity, and this book shows you how to apply it to your brand today.

Marketing 4.0 takes advantage of the shifting consumer mood to reach more customers and engage them more fully than ever before. Exploit the changes that are tripping up traditional approaches, and make them an integral part of your methodology. This book gives you the world-class insight you need to make it happen.

Discover the new rules of marketing
Stand out and create WOW moments
Build a loyal and vocal customer base
Learn who will shape the future of customer choice

Every few years brings a “new” marketing movement, but experienced marketers know that this time its different; it’s not just the rules that have changed, it’s the customers themselves. Marketing 4.0 provides a solid framework based on a real-world vision of the consumer as they are today, and as they will be tomorrow. Marketing 4.0 gives you the edge you need to reach them more effectively than ever before.

Marketing 4.0: Moving from Traditional to Digital – A Reading Review

“Marketing 4.0” – A Podcast Interview with Philip Kotler
December 13, 2016

What Is The Future Of Digital Marketing?

Marketing 4.0: Enhancing Consumer-Brand Engagement through Big Data Analysis

How big data can be used to enhance the consumer-brand relationship.

Ana Isabel Jiménez-Zarco (Open University of Catalonia, Spain), Asher Rospigliosi (Brighton University, UK), María Pilar Martínez-Ruiz (University of Castilla la Mancha, Spain) and Alicia Izquierdo-Yusta (University of Burgos, Spain)
Source Title: Socio-Economic Perspectives on Consumer Engagement and Buying Behavior
Copyright: © 2017 |Pages: 24

Marketing evolves in parallel with technology. Growing research is focusing on Marketing 4.0: the marketing of big data.  Taking into account how consumers’ behavior has been changing since the beginning of this century, this chapter seeks to review Marketing 4.0 concepts, analyzing how big data can be used to enhance the consumer-brand relationship.

Updated on 30 May 2019, 2 May 2019