1. What is Digital Marketing?

1. Definition and Overview: Digital marketing refers to marketing activities conducted using the internet and digital technologies. Specifically, it uses digital channels such as websites, emails, and social media to expand product and service awareness and promote sales.

2. The Importance of Digitalization: In recent years, the spread of the internet and the proliferation of smartphones have advanced the digitalization of consumer lifestyles and purchasing behaviors. For this reason, leveraging digital channels for marketing has become essential for companies, and its importance is increasing.

3. The Difference from Web Marketing: Web marketing can be considered a part of digital marketing. On the other hand, digital marketing refers to overall marketing activities that utilize various channels, including email, social media, and digital advertising, in addition to the web.

In this chapter, we will explain the definition and overview of digital marketing, the importance of digitalization, and the differences from web marketing. Once we grasp the overall picture of digital marketing, we will take a closer look at specific methods and tools in the following chapters.

(1) Definition and Overview

Digital marketing refers to marketing activities that utilize digital technologies. Specifically, it involves using digital channels such as websites, emails, and social media to communicate with customers and promote product and service awareness.

The main digital marketing methods are summarized in the table below.

Thus, digital marketing utilizes various methods in combination to reach the target customers effectively.

(2) The Importance of Digitalization

Digitalization is an essential trend in modern society. The spread of the internet and smartphones has transitioned people's lives and business activities into the digital realm.

For example, when looking at consumers' purchasing behaviors, it is evident that the use of digital channels is increasing year by year, as shown in the table below.

As the penetration of digital channels progresses, businesses cannot avoid responding to digitalization. Delaying digitalization can result in losing touchpoints with customers and missing marketing opportunities.

Therefore, the importance of digital marketing is increasing. Improving customer experience in the digital realm and developing new business models adapted to digitalization has become a lifeline for companies.

(3) The Difference from Web Marketing

Digital marketing encompasses the concept of web marketing but targets a much broader range.

Web marketing refers to efforts emphasizing strategies on websites and online activities. In contrast, digital marketing includes a wider array of areas than web marketing, as outlined below.

Thus, digital marketing comprehensively handles various methods in the digital space, not only on the web but also through email, SNS, marketing automation, etc.

Moreover, digital marketing goes beyond merely utilizing digital resources, placing a strong emphasis on data collection and analysis, promoting the optimization of strategies based on the PDCA cycle.

2. Methods of Digital Marketing

Digital marketing encompasses various methods, but the main methods are as follows.

1. Web Marketing: Utilizing websites and landing pages for content marketing, SEO measures, listing ads, etc.

2. Email Marketing: Building relationships with customers through newsletters and email ads.

3. SNS Marketing: Conducting ads and information dissemination using SNS like Facebook, Twitter, and Instagram.

4. Digital Advertising: Advertising methods utilizing digital media, such as banner ads, video ads, and affiliate ads.

5. Marketing Automation: A tool that enables automated marketing activities by centralizing customer data management.

6. Content Marketing: Utilizing blogs and YouTube, providing valuable content to users, and enhancing awareness.

7. Data Analysis & Optimization: Collecting and analyzing marketing data to optimize strategies.

As such, digital marketing consists of various methods that need to be tailored according to the target and objectives.

(1) Web Marketing

Web marketing refers to marketing methods that utilize digital spaces such as corporate websites and social media accounts. The main initiatives are as follows.

・Website Management: Building sites that display corporate and product information, aiming to attract viewers.

・SEO Measures: Optimizing site design and content to be ranked high in search engines.

・Digital Advertising: Directing traffic to the site through digital ads like banner ads and listing ads.

・SNS Marketing: Information dissemination and promotion through social media accounts like Twitter, Facebook, and Instagram.

Data analysis such as website views, SNS followers, and leads from advertisements is vital in web marketing.

(2) Email Marketing

Email marketing is a marketing method that utilizes emails. It is primarily conducted for the following three purposes.

1. Sales Promotion

2. Strengthening Customer Relations

3. Branding

Email allows for direct interaction with the target audience, which is a significant advantage. Additionally, its cost-effectiveness makes it easy to monitor metrics such as open rates and purchase rates.

On the downside, depending on the email content, users may find it intrusive. Therefore, attention must be paid to the following points in email marketing.

• Compliance with Email Distribution Rules

• Providing Value to Users

• Optimization through Personalization

Email marketing is one of the essential tools in digital marketing. It enables continuous touchpoints with customers and integrates easily with marketing automation.

(3) SNS Marketing

SNS marketing refers to marketing methods that utilize social media platforms such as Facebook, Twitter, and Instagram to raise awareness of products and services and acquire leads.

SNS is widely used by an extensive range of users globally, allowing businesses to effectively reach various target groups by disseminating information.

Main SNS marketing methods include the following.

• Influencer Marketing

• Operating SNS Ads

• Information Dissemination using SNS Accounts

• Customer Engagement via SNS

Since SNS allows for two-way communication, it offers the advantage of not just advertising, but also improving products and services through dialogues with customers.

However, there are risks such as inappropriate postings and unexpected reactions circulating on SNS. Understanding the characteristics of SNS and utilizing them strategically is essential.

(4) Digital Advertising

Digital advertising refers to advertising methods utilizing various media on the internet. The primary types are summarized in the table below.

The significant advantage of digital advertising is its high targeting precision. Ads can be displayed based on user interests, behavior history, and demographics. It is also characterized by the ability to track advertising costs closely. Combining the most suitable advertising methods based on marketing objectives is crucial.

(5) Marketing Automation

Marketing automation refers to tools designed to automate marketing tasks. The main functions are as follows.

• Lead Scoring: Automatically scores potential customers based on their level of interest to identify the most engaged customers.

• Drip Emails: Automatically sends emails based on the level of interest.

• Customer Analysis: Centralized management of customer data and behavior analysis are possible.

By utilizing marketing automation in this way, targeting approaches can be streamlined efficiently.

For example, the following operations become possible.

1. Calculating lead scores based on website browsing history

2. Automatically sending drip emails based on scores

3. Analyzing open rates and responses to optimize approaches

Marketing automation can be considered one of the core tools in digital marketing.

(6) Content Marketing

Content marketing refers to a marketing method where high-value content such as blog posts, videos, and podcasts is created and distributed to build relationships with customers while linking to branding and lead acquisition.

The primary purposes of distributing content are as follows.

1. Enhancing Brand Awareness

2. Building Relationships with Customers

3. Lead Acquisition and Sales Promotion

By providing excellent content, businesses can address users' problems and concerns, thereby establishing trust. This leads to customer conversion after nurturing leads.

Important points for practicing content marketing include the following.

• Content planning according to personas and optimization through SEO

• Effective delivery using SNS and emails, along with improvements based on access analysis

Thus, content marketing is a crucial method that constitutes the core of digital marketing and requires strategic creation and dissemination of content.

(7) Data Analysis & Optimization

Data analysis and optimization in digital marketing play an extremely important role. Utilizing the data collected from various digital tools allows for visualizing and optimizing the effectiveness of marketing actions.

For example, web analytics tools can provide data such as:

• Traffic sources to the site (search/SNS/others)

• Behavior data such as stay duration and page views

• Demographic data such as devices, regions, and age groups

By leveraging this data, businesses can understand target user behaviors and interests. Furthermore, optimizations can lead to improved conversion rates and reduced costs.

Additionally, using marketing automation tools allows for the accumulation and analysis of individual customer behavior history, enabling the right timing for optimal communication.

Data-driven marketing is far more effective than methods relying solely on conventional experience principles. In digital marketing, obtaining and analyzing data is an essential component.

3. Benefits of Implementing Digital Marketing

• By implementing digital marketing, companies can gain various benefits.

1. Effective Measures Based on Data: In digital marketing, diverse data, including behavioral data from websites and advertising effectiveness measurement data, can be collected and analyzed. Utilizing this data allows for the formulation of more appropriate measures and effective marketing activities.

2. Improved Targeting Precision: In digital advertising, targeting can be performed based on various attributes such as gender, age, residence, interests, and concerns. By utilizing these advanced targeting functions, products and services can be promoted accurately without wasting advertising expenses.

3. Visualization of Customer Behavior: By using web analysis tools, customer behaviors can be analyzed in detail. The following data can be understood.

• Which pages have the most incoming traffic

• Which pages have the highest drop-off rates

• Customer behavior history leading to purchases

By leveraging these customer behavior data, businesses can identify areas for improvement on the site and enhance conversion rates.

(1) Effective Measures Based on Data

A significant advantage of digital marketing is the ability to collect and analyze customer behavior data and to formulate and execute strategies based on that data.

For example, by analyzing website behavior data, the following becomes possible.

• Identifying pages with high dropout rates

• Understanding which contents are popular

• Evaluating the effectiveness of different campaigns

Through such data analysis, effective content and measures can be identified. Additionally, conducting A/B tests can continuously improve strategies.

In other words, digital marketing enables a "scientific approach" based on data, allowing for more effective measures.

(2) Improved Targeting Precision

In digital marketing, the target customer segments can be clearly defined based on data to approach them accurately. For instance, one can infer interests from website behavior history or combine demographic information with purchasing data, employing various methods.

This data utilization leads to a significant improvement in targeting precision. For example, the following effects can be expected.

• Reduction of unnecessary advertising costs

• Provision of appropriate content

• Enhanced conversion rates

In other words, it is possible to utilize limited resources efficiently and achieve higher investment returns. As targeting precision increases, the efficiency and profitability of marketing measures are more easily realized.

However, to realize accurate targeting, the ability to collect and analyze data is indispensable. It is crucial to determine how to collect data from various sources and how to analyze it. Digital marketers need this level of data literacy.

(3) Visualization of Customer Behavior

One of the advantages of digital marketing is the visualization of customer behavior.

In traditional marketing methods, it was difficult to comprehend how customers learned about, considered, and ultimately purchased products and services. However, due to data availability in digital marketing, the following data can be acquired for detailed tracking and analysis of customer behavior.

• Browsing history of the website (page views, stay duration, etc.)

• Content and behavior history on social media

• Email open and click rates

• View counts and rates of online ads

By leveraging this data, businesses can undertake initiatives such as the following.

• Understanding customers' interests and concerns

• Improving targeting precision

• Optimizing content

• Enhancing promotions

In summary, companies can engage in more appropriate communication based on customer behavior data.

4. Steps for Practicing Digital Marketing

To effectively practice digital marketing, it is essential to follow a certain process.

1. Market Research & Analysis: First, data regarding your company, competitors, and target audience needs to be collected and analyzed. At this stage, establishing personas and clarifying the target's issues and desires are crucial.

2. Strategy Formulation: Based on the analysis results, the objectives and strategies for digital marketing should be formulated. Specific measures to achieve the goals and the establishment of KPIs should be carried out.

3. Tool Selection and Implementation: Based on the formulated strategy, select and implement the tools to be utilized. Examples include various tools.

4. Operations and Data Analysis: Conduct digital marketing using the selected tools. Regularly analyze operational status, identify issues, and improve iteratively.

5. PDCA Cycle: Based on the analysis results, review strategies and measures. By continuously operating this PDCA cycle, digital marketing can be optimized.

These are the steps to practice digital marketing.

(1) Market Research & Analysis

To succeed in digital marketing, market research and analysis are essential. This includes assessing demand for your products and services, understanding the attributes of target customers, and reviewing the circumstances of competing companies, collecting the data needed as the foundation for marketing strategies.

Specific research items might include:

• Market size and growth potential of your products/services

• Demographics and behavior characteristics of target customers

• Market share and sales strategies of competing products/services

• Latest trends and technological developments in the industry

Such market data can be collected through desk research (collecting existing materials) or field research (surveys, interviews, etc.). The collected data will be analyzed by the marketing manager and will serve as an important basis for strategy formulation.

Market research and analysis are critically positioned as the starting points for digital marketing. Without appropriate market research and analysis, you cannot accurately set targets, leading potentially to wasteful investments.

(2) Strategy Formulation

To effectively implement digital marketing, having a solid strategy is crucial. When formulating a strategy, it is essential to keep the following three points in mind.

1. Clarifying Objectives: Clearly set the goals you want to achieve with digital marketing. Examples include: increasing lead acquisition numbers, enhancing sales, and boosting brand awareness.

2. Identifying Targets: Clearly define the attributes (age, gender, residence, etc.) of the target customer groups. Additionally, create personas (ideal customer profiles) and analyze their needs and behavior characteristics.

3. Setting KPIs and KGIs

Establish key performance indicators (KPIs) essential for achieving objectives and gauging contributions toward business goals (KGIs).

Thus, it is vital to establish clear objectives, targets, and metrics, and consider the combinations of each measure accordingly.

(3) Tool Selection and Implementation

Utilizing various tools is essential to practice digital marketing. Tools need to be appropriately selected in accordance with their purposes and used effectively.

Major tools include the following.

When implementing, it is important to select the appropriate tools while considering your company’s current state, goals, and budget. Subsequently, organizing the internal tool operation system, and establishing operational rules are crucial. In digital marketing, integrating tools is also important, so pay attention to their interoperability.

(4) Operations and Data Analysis

In digital marketing, proper operation of implemented tools and data analysis are incredibly important.

Firstly, with regards to operation, settings and optimizations aligned with the campaign objectives are essential. For example, in web marketing, content distribution and detailed settings based on the target audience should be conducted. In email marketing, optimizing distribution targets and timings is indispensable.

On the other hand, data analysis involves leveraging various data obtained from tools to assess and improve the effectiveness of marketing measures.

Key analysis metrics may include:

Regularly analyzing these metrics allows for identifying issues in strategies. From there, new hypotheses can be formulated, leading to adjustments in settings and contents.

Thus, reliably running the PDCA cycle of operations and data analysis is crucial for the success of digital marketing.

(5) PDCA Cycle

In digital marketing, running the PDCA cycle is important. The PDCA cycle is a method of continuing to improve by repeating the following processes.

• P(Plan)…Formulating strategies and measures

• D(Do)…Implementing the formulated measures

• C(Check)…Analyzing and evaluating the results of the measures

• A(Act)…Based on the evaluation, formulating the next measures

By running this cycle, it becomes easier to respond flexibly to changes in the market.

For example, the following process can be anticipated.

1. P…Conducting target audience research, establishing KPIs, etc.

2. D…Implementing web ads and publishing newsletters

3. C…Analyzing data such as access analysis and open rates

4. A…Formulating subsequent measures based on analysis results

By utilizing data while running the PDCA cycle, more optimized measures can be implemented.

5. Success and Failure Cases

• We introduce success and failure cases of digital marketing.

■ Example of Significant Increase in Lead Acquisition

Company A in the manufacturing industry launched a campaign combining traditional advertising with digital ads and email marketing.

<Comparison of Effects Before and After Initiatives>

• Before Initiatives: Average Monthly Lead Acquisition of 300

• After Initiatives: Average Monthly Lead Acquisition of 1,200 (4 times compared to the previous year)

By narrowing down digital ads to target industries and occupations and further using lead data for email distribution, the number of leads significantly increased.

■ Example of Data Utilization Failure

Company B in the retail industry introduced web access analysis tools for their e-commerce site but could not develop sufficient human resources or establish an analysis process, failing to leverage data effectively. As a result, site improvements stagnated, and sales grew sluggish.

Hence, in digital marketing, it is more critical to establish personnel and processes that can utilize data effectively than merely introducing tools.

(1) Example of Significant Increase in Lead Acquisition

Here, we introduce a case in which digital marketing was actively implemented, resulting in outstanding success.

Company A in the manufacturing sector shifted from traditional advertising to focusing on digital marketing. Initially, they fully renewed their website and developed SEO strategies and content marketing. Furthermore, they utilized listing ads and social media ads, linking to their owned media.

Additionally, by implementing a marketing automation tool, they analyzed lead behavior and automated email distribution. This led to the following results.

• Monthly website visitors: 30% increase

• Lead acquisition: 2.5 times compared to the previous year

• Marketing Lead Rate: Increased from 5% to 15%

This case can be regarded as an excellent example where strategic digital marketing based on data significantly boosted lead acquisition.

(2) Example of Building Owned Media

A certain automobile manufacturer achieved success in digital marketing by establishing owned media.

The company launched a dedicated blog platform on its official site, sharing product information as well as columns and video content related to driving. Their focus was on providing "useful information" sought by users rather than merely advertising.

As a result of such initiatives, the following outcomes were achieved.

• Official blog monthly views: 100,000 PV (achieved within six months of launch)

• Traffic to the official company website: 30,000/month

• Lead acquisition: 1,500/month

This content marketing strategy centered on "value provision" resulted in significant effects in terms of brand awareness and lead acquisition. Owned media can be considered one of the essential tools in digital marketing.

(3) Example of Data Utilization Failure

While digital marketing allows for collecting substantial amounts of data, effectiveness cannot be expected without appropriate utilization of that data.

A certain company experienced the following failures.

• Not understanding the meaning or handling of collected data, leaving it unused

• Incorrect settings in site access analysis tools leading to insufficient accurate data

• Lack of collaboration between the marketing department and the web production department, inhibiting data sharing

Therefore, it is essential to establish utilization policies for data before collecting it.

Understanding the significance of data and organizing the entire process of collection, analysis, and utilization is vital. Moreover, it is crucial to repeatedly run the PDCA cycle for continuous improvement.

When utilizing data, it is significant to establish a smooth system for implementing a cycle such as the above.

6. Roles Required of Digital Marketers

• To practice digital marketing effectively, marketers are required to fulfill the following three roles.

1. Understanding the Target: It is essential to understand the buying demographics and behavioral characteristics of products and services through data analysis. In addition to demographic data such as age, gender, residence, and interests, various information such as website behavior history and SNS posting contents must be utilized to gain a multifaceted understanding of the target.

2. Strategic Thinking: Strategic thinking skills are indispensable for selecting appropriate channels and formulating measures to achieve marketing objectives. For instance, it needs to be evaluated as follows.

• Want to acquire leads → Effective via website/SEO measures

• Want to enhance brand awareness → Effective via SNS marketing

• Want to promote purchases → Effective via email/retargeting ads

Integrating and analyzing various data yields new insights. Thus, data literacy that enables the utilization of data collection and analysis tools is essential.

In summary, digital marketers need deep insights into targets, strategic measure planning, and data analysis skills.

(1) Understanding the Target

Digital marketers must deeply understand their target customer segments. It is necessary to grasp the attributes, needs, and behaviors of those likely to purchase products and services and to identify effective approaches.

For example, analyzing the following points is essential.

• Age group

• Gender

• Location

• Occupation

• Income level

• Lifestyle

• Interests

• Buying behavior patterns

By collecting and analyzing such customer data, personas (ideal customer profiles) can be established. Then, appropriate messaging and channel selection can be implemented that align with the persona, along with targeted advertising measures.

(2) Strategic Thinking

Digital marketers need not only the ability to operate tools but also strategic thinking skills.

It is essential to capture customer needs and market trends accurately and to judge the optimal approach. For example, it is necessary to consider the following.

• The target customer segments and their characteristics

• Company's strengths and weaknesses compared to competitor marketing measures

• Methods suitable for digital marketing and their combinations

• Budget and investment costs

Overall consideration of various factors is crucial to formulate optimal strategies.

On the other hand, strategies should not be static. Following the PDCA cycle, it is essential to continue verifying and improving the strategy using data acquired from digital tools.

In essence, digital marketers warrant strong analytical and strategy-formulating abilities alongside adaptability and execution capabilities.

(3) Data Literacy

In digital marketing, data literacy plays an extremely vital role. Data literacy refers to the knowledge and abilities to read and utilize data.

The following three points are specifically required.

1. Data Collection and Analysis

• Operation of web analytics tools

• Data aggregation and visualization

• Data interpretation

2. Formulating Measures Based on Data

• Setting KPIs

• Identifying issues based on data

• Creating improvement plans

3. Data-Driven Decision Making

• Judgment based on data

• Continuous improvement based on the PDCA cycle

In other words, possessing data literacy means being able to derive valuable insights from vast data, thus optimizing marketing measures.

7. Conclusion

• Digital marketing is a treasure trove of tools to formulate and execute effective measures based on data. This article has explained the definition of digital marketing, the benefits of its implementation, and the steps for practice.

Thus, digital marketing has the following advantages over traditional methods.

• Possibility of effective measures based on data

• High targeting precision

• Ability to visualize customer behavior

To successfully implement digital marketing, it is crucial to reliably execute the following practice steps while utilizing the PDCA cycle.

1. Market Research & Analysis

2. Strategy Formulation

3. Channel Selection and Implementation

4. Operations and Data Analysis

5. PDCA Cycle

Digital marketers must understand their targets, possess strategic thinking abilities, and hold data literacy. By enhancing these abilities while utilizing digital marketing, tangible results can undoubtedly be achieved.