PUNE INSTITUTE OF BUSINESS MANAGEMENT

Paud Road, Pirangut, PUNE – 412 115.

Impact of Digital Marketing on Business

MR Mini Project
SEMESTER II
MARKETING SPECIALISATION
BATCH 2022 – 2024
Introduction
The world is shifting from analog to digital and marketing is no exception. As
technology development is increasing, the use of digital marketing, social media
marketing, search engine marketing is also increasing. Internet users are
increasing rapidly and digital marketing has profited the most because it mainly
depends on the internet. Consumer’s buying behavior is changing and they are
more inclined towards digital marketing rather than traditional marketing. The
purpose of this project is to study the impact of digital on business.

Marketing refers to the steps that the company takes to promote the buying of any
products or services. The company seeks customers or consumers for their products or
services via the help of marketing. Digital Marketing refers to the marketing of any
product or service in digital form. For example, marketing using smartphones,
computers, laptops, tablets, or any other digital devices. Digital marketing is a form of
direct marketing that links consumers with sellers electronically using interactive
technologies like emails, websites, online forums and newsgroups, interactive
television, mobile communications etc.
‘Digital marketing’ term was first coined in the 1990s. Digital marketing is also
known as ‘online marketing’, ‘internet marketing’, or ‘web marketing’. It is known as
‘internet marketing’ because with the rise of the internet there is also high growth of
digital marketing. The major advantage of digital marketing is that marketers can sell
their products or services 24 hours and 365 days, lower cost, efficiency gain, to
motivate the customer for more purchase and improve customer services. It helps
many-to-many communications because of its excessive degree of connectivity and is
generally completed to sell services or products in a timely, relevant, non-public, and
cost-powerful manner.
In 2005, there were about 1.1 billion internet users which consist of 16.6 % of the
population at that time. In 2020, the number of internet users is around 4.8 billion and
the percentage population has increased to 62 %. And there is a direct connection
between digital marketing and the internet. Countries like India and China have the
highest number of internet users so they have a great opportunity in the field of digital
marketing, which will help to business for growth and development.

Keywords—digital marketing, internet, online advertising, internet marketing

Literature Review:
The study by Kishan Prajapati explores the impact of digital marketing
on businesses and consumers. The literature review highlights that
digital marketing has revolutionized the way businesses interact with
their customers, with the use of various digital channels such as social
media, email marketing, search engine optimization (SEO), pay-per-click
(PPC) advertising, content marketing, mobile marketing, and influencer
marketing.
According to the literature, digital marketing has several impacts on
businesses, including increased brand awareness, website traffic, sales,
customer engagement, and retention, as well as reduced marketing costs.
The review also highlights that digital marketing has made it easier for
businesses to target the right audience and measure the success of their
marketing efforts through various metrics such as website traffic,
conversions, and return on investment (ROI). (1)

The study by Chakravarthy, Rani, and Karunakaran explores the

impact of digital marketing on the business performance of e-commerce
companies. They highlights that e-commerce companies are increasingly
relying on digital marketing to drive their business growth, as more
consumers are shopping online and using digital channels to search for
products and services.
The review suggests that digital marketing has several impacts on the
business performance of e-commerce companies, including increased
website traffic, sales, customer engagement, and retention, as well as
reduced marketing costs. Digital marketing also enables e-commerce
companies to reach a wider audience, target the right audience, and
personalize their marketing messages to offer a more seamless and
personalized experience to their customers. (2)

The review identifies several factors that influence consumer behavior

in the digital marketing context. These factors include trust, perceived
value, perceived ease of use, and perceived usefulness. Trust is critical in
the digital marketing context as consumers are more likely to engage
with brands they trust. Perceived value refers to consumers' perceptions
of the value they receive from digital marketing activities.
It also highlights the importance of social media in the digital marketing
context. Social media platforms are popular among consumers in
Bangladesh and provide an opportunity for brands to engage with their
target audience. The study emphasizes the need for brands to develop a
social media strategy that aligns with consumers' preferences and
behavior on these platforms. (3)

One of the primary benefits of digital marketing is its ability to reach a

wider audience than traditional marketing channels. A study by Chaffey
and Smith (2017) found that businesses that used digital marketing
channels, such as social media and search engine optimization, were able
to reach a larger audience and generate more leads compared to those
that relied on traditional marketing methods. This finding is particularly
relevant to Coimbatore city, where businesses can leverage digital
marketing to reach a larger customer base and compete with larger
players in the market.
Another significant advantage of digital marketing is its cost-
effectiveness. Traditional marketing methods such as print and
television advertising can be expensive and may not provide a significant
return on investment. However, digital marketing strategies such as
email marketing and social media advertising are relatively inexpensive
and have been found to be effective in generating leads and increasing
sales (Mangold and Faulds, 2009). This is particularly important for
small businesses in Coimbatore city, which may have limited budgets for
marketing. (4)

Digital marketing has become an essential tool for businesses looking

to expand their reach, engage with customers, and increase revenue. The
literature suggests that digital marketing can contribute significantly to a
business's performance by enhancing its online presence, improving
customer targeting and engagement, and increasing sales and
profitability.
In today's digital age, customers increasingly turn to the internet to
research products and services before making a purchase. Therefore,
businesses that have a strong online presence, including a well-designed
website and active social media accounts, are more likely to be noticed
by potential customers. This, in turn, can lead to increased website
traffic, greater brand recognition, and improved customer trust and
loyalty. (5)

In a literature review conducted by Ms. A. Lavanya, several key themes

emerged regarding the impact of digital marketing on businesses. One of
the most significant benefits of digital marketing is its ability to reach a
wider audience. By leveraging digital channels such as social media,
email, and search engines, businesses can connect with potential
customers who may not have been reached through traditional
marketing channels.
Another key theme was the importance of data analytics in digital
marketing. Digital channels provide businesses with an abundance of
data that can be used to better understand customer behavior,
preferences, and needs. By analyzing this data, businesses can create
more targeted marketing campaigns and improve the effectiveness of
their overall marketing strategy. 6)

Increased Reach: One of the main advantages of digital marketing is

that it allows businesses to reach a larger audience than traditional
marketing methods. A study by Nielsen found that online advertising
reaches 92% of the internet population, compared to 85% for television
and 50% for radio. This increased reach can help businesses to expand
their customer base and increase brand awareness.
Cost-Effective: Digital marketing is often more cost-effective than
traditional marketing methods. A study by Gartner found that digital
marketing costs 1/3 of traditional marketing.
Increased Engagement: Digital marketing can help businesses to
engage with their customers in a more meaningful way. Social media
platforms such as Facebook, Twitter, and Instagram allow businesses to
interact with customers and respond to their queries in real-time.
Better Targeting:
Digital marketing allows businesses to target specific audiences with
greater precision than traditional marketing methods.
Increased ROI:
Digital marketing has been found to have a higher return on investment
(ROI) than traditional marketing methods. A study by Smart Insights
found that digital marketing has an average ROI of 300%, compared to
100% for traditional marketing methods. (7)

Reach a Wider Audience:

Online/digital marketing allows small businesses and start-ups to
reach a wider audience through various channels such as social media,
email marketing, and search engine optimization (SEO). By using these
channels, businesses can target their ideal customers and communicate
with them in a more personalized manner, which can lead to increased
engagement and higher conversion rates (Khan, 2018).

Cost-Effective:
Digital marketing is often more cost-effective than traditional
marketing methods such as print and television advertisements. Small
businesses and start-ups can create and execute their online marketing
campaigns with minimal budget, making it an attractive option for
businesses that have limited financial resources (Khan, 2018).

Brand Awareness:
Online/digital marketing can help small businesses and start-ups build
brand awareness by creating and sharing content on various channels
such as social media, blogs, and websites. Consistently creating and
sharing content can help businesses establish themselves as thought
leaders in their industry and increase their visibility among their target
audience (Ganguly & Roy, 2018).

Targeted Advertising:
Digital marketing allows businesses to target specific demographics,
interests, and behaviors of their ideal customers through tools such as
Facebook Ads, Google AdWords, and LinkedIn Ads. Targeted advertising
can result in higher conversion rates and lower cost per acquisition
(CPA) compared to traditional advertising methods (Ganguly & Roy,
2018).

Measurable Results:
Digital marketing provides businesses with measurable results such as
website traffic, engagement rates, and conversion rates. By analyzing
these metrics, businesses can optimize their online marketing campaigns
and improve their return on investment (ROI) (Khan, 2018).(8)

Objective:
1. To study whether Digital marketing is really helping businesses to reach their
target customers.
 2. To understand how effective, we can use Digital marketing tool to succeed our
business.

Variables:
Dependent Variable (DV) –
1. Reaching target customers.
2. Succeed in the business.
3. Increase business performance
4. Increased revenue,
5. Improved customer engagement
6. Enhanced brand recognition.

Independent Variable (IV) –

1. Digital marketing

Hypothesis:
Alternate Hypothesis (H1)
1. There is an impact of online/digital marketing in getting succeed in the business.
2. There also impact that because of Online/digital marketing businesses able to reach
their target customers.

Null Hypothesis (H0)

1. There is no impact of online/digital marketing in getting succeed in the business.
2. There is no relation between the Online/digital marketing and reaching the target
customers.

RESEARCH METHODOLOGY:-

o Primary Data:- It can observe and collect of data on questionary.

o Secondary Data:- It collect Data from previous research paper, websites.
o Sample Size: It determine some people or respondent opinion from purchasing or selling
product with help of digital marketing.
 o The survey was designed so that the participants could evaluate each question through
their level of knowledge by using the Likert scale 5-point scale: Strongly Agree,
neutral, Agree, Disagree, and Strongly Disagree.

QUESTIONNAIRE: -
Demographic-
1. What is your name?

2. What is your gender?

i. Male
ii. Female
iii. Prefer not to share
iv. Other

3. What is your educational qualification?

i. Secondary
ii. Higher Secondary
iii. Graduation
iv. Post Graduation
v. Phd. Holder

4. What is your occupation?

i. Employed
ii. Self employed
iii. Retired

5. What is your marital status?

i. Married
ii. Unmarried

6. What is your income level?

i. 15 Lakhs - 25 Lakhs
ii. 25 Lakhs - 40 Lakhs
iii. 40 Lakhs - 80 Lakhs
iv. 80 Lakhs - 2 Cr
v. 2Cr and above
 Questions about Topic

1. Do you aware about online marketing or digital marketing

a. Yes
b. No

2. Digital media help to get information about product or brand

a. Yes
b. No

3. Product purchase from any online platform

a. Yes
b. No

4. Popular Digital Marketing Communication tools

a. Audio
b. Video
c. Image
d. Written Post

5. Most Easily to used digital marketing

a. E-mail
b. Social Media
c. You Tube
d. E-Commerce Site

6. Which of following Difficult to used digital marketing

a. E-mail
b. Social Media
c. You Tube
d. E-Commerce Site
 7. Do you Agree that following online marketing/Digital marketing
strategy helps business to reach target audience?
Particular Strongly Agree Neutral Disagree Strongly
agree disagree
E-mail
Instagram
Ads
Facebook
Ads
You Tube
Business
Website

8. what do you think about how much online marketing help in different
areas of the business ?
Particulars 10-20% 20-40% 40-60% 60-80% 80-100%

Increase
Customer
Increase
Profit
Help to
sustain in
market
Helps in
branding

9. Will you recommend online marketing to other businesses ?

a. Yes
b. No

10.Give your satisfaction level of your Business when you had using online
marketing
a. Highly satisfied
b. Satisfied
 c. Neutral
d. Dissatisfied
e. Highly Dissatisfied
Findings :
1. The impact of online digital marketing on firms was investigated in this study.
When compared to other organisations using traditional marketing strategies, the
majority of businesses that had used online digital marketing tools in their
operations generated significant revenue.

2. The businesses that are already utilising online digital marketing are in the service
sector, which has a significant impact on the Indian economy. And a significant
portion from the FMCG industry, as well as some from education.

3. While some respondents are unaware of digital marketing, more are. And in this
survey, the majority of respondents use digital marketing online to connect with
their target audience or clients.
4. According to this study's findings, the majority of clients use business website
platforms to ensure their companies' online visibility. To reach their target
audience, people use Facebook pages and Instagram accounts as tools.

5. The majority of respondents concur, and some strongly concur, that we are able to
connect with our target demographics thanks to online/digital marketing.
Additionally, some of them confirmed that online digital marketing has a
significant impact on business success and is essential in the current competitive
environment.

6. The majority of responders to our survey strongly suggest online digital marketing
to others. who are unable to survive in today's cutthroat society.
7. This study's final finding is that businesses are very happy with the results of
online digital marketing they obtained via the use of digital tools. Additionally, we
can state that online digital marketing has had a significant impact on the
company's performance as well as its ability to attract its target market.

Conclusion

By switching from traditional/offline marketing to a combination of offline and

online marketing with a concentration on the online marketing, the influence of
digital marketing on business generally will minimise marketing costs and reduce
cost per unique consumers. For instance, spending 10,000 JOD on an offline
advertisement will only draw in less than 6,000 users. However, spending the same
amount online will draw in at least 100,000 users, some of which may be interested
in your goods.
 Because online marketing methods have the greatest global reach, they will also
help your product and brand become more well-known.

Because you do the proper targeting, advertising your business online will
eventually result in more product sales. You have no idea who will read your
advertisements if you place them in a newspaper, just as you have no idea who will
see them if you post an outdoor sign on The University Street in Amman. Digital
marketing allows for 100% accurate targeting, increasing the profitability of your
product and your market reach.

Brands no longer have to rely on the media to spread their ideas; instead, they can
be direct salespeople, content creators, bloggers, tweeters, and even pals.
Customers may look for those brands, interact with them on social media, tweet
about them, and instantly share their opinions with all of their friends.
Social media marketing is crucial since it fits with how people choose their
products. According to a study, more and more consumers are using internet
services and research to do preliminary analyses of the effects of digital marketing
on businesses. Therefore, in this study, we examine the beneficial effects of online
digital marketing on business performance. and contacting their intended clients.
Digital marketing also helps businesses grow their existing consumer base, profit,
sustainability, and brand recognition. Businesses believe that their websites are a
more effective instrument for business growth.
Additionally, Facebook, Instagram, What's App, and linked in are the platforms
that businesses also favour highly.

Thus, it can be concluded that the study helped to clarify the fact that online digital
marketing has a significant positive impact on business.

5. Data analysis and Interpretation

1. Factor analysis,
2. cluster analysis,
3. discriminant analysis,
4. ABPM,
5. MDS,
6. Chi square,
7. ANOVA,
8. correlation and
9. regression analysis