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MKM 211

Internet Marketing

TU BBM · Semester 8 · BBM curriculum effective from 2021

Requirement
elective
Credits
3
Study Guide
7 units available

Chapter notes

Authoritative study guide across 7 syllabus units

Open a unit to read its study notes.

Unit 1: Introduction· 8 LHs· ~10 marks

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Difficulty: ★★★ | High-yield focus: Master definitions of e-marketing, Web evolutionary tiers, and digital conversion funnel in Part 1. Key exam mastery: Diagram the digital conversion funnel stages, contrast Web 1.0 vs Web 2.0 vs Web 3.0 in Part 3, and solve the digital acquisition funnel conversion ladder in Part 4.

Part 1: Core Concepts (2 Marks)

  • ★ E-Marketing (Digital Marketing): The application of internet technologies, digital media channels, and data analytics to achieve marketing objectives of customer acquisition, retention, and brand engagement.
  • ★ Web Evolution (Web 1.0 to Web 3.0): The progression from static read-only websites (Web 1.0) to dynamic participatory social media platforms (Web 2.0) and decentralized semantic semantic web technologies powered by blockchain and AI (Web 3.0).
  • ★ Conversion Rate (CR): The percentage of unique digital website or app visitors who complete a desired marketing goal (e.g., placing an order, filling a lead form): CR=ConversionsTotal Visitors×100\text{CR} = \frac{\text{Conversions}}{\text{Total Visitors}} \times 100.

Part 2: Structural Frameworks (10 Marks)

Visual Architecture: The Digital Marketing Conversion Funnel

Digital marketing transforms anonymous internet traffic into brand advocates through a structured multi-stage conversion funnel.

Visual Architecture: Digital Marketing Funnel

Digital Marketing Funnel Stages
Digital Marketing Funnel Stages
  1. Strategic E-Business Models:
    • B2C (Business-to-Consumer): Direct-to-consumer e-commerce (e.g., Daraz, SastoDeal).
    • B2B (Business-to-Business): Wholesale supply chain marketplaces and corporate procurement portals.
    • C2C (Consumer-to-Consumer): Peer-to-peer auction and classified platforms (e.g., Hamrobazar).
    • C2B (Consumer-to-Business): Crowdsourced freelance labor platforms (Upwork, Fiverr).
  2. Key Digital Business Architecture: Monetization models include Merchant (retail margin), Subscription (recurring access), Advertising (impressions/clicks), Infomediary (data insights), and Affiliate brokerage (commission per referred sale).

Part 3: Distinction Tables

Web 1.0 vs. Web 2.0 vs. Web 3.0 Architectural Eras

Dimension Web 1.0 (Static Web) Web 2.0 (Social / Interactive Web) Web 3.0 (Semantic / Decentralized)
User Role Passive reader / consumer. Active creator and content contributor. Co-owner, participant, and node.
Dominant Platforms Static corporate HTML websites. Social networks (Facebook, YouTube, TikTok). Decentralized DApps, AI agents, Smart Contracts.
Data Ownership Centralized proprietary webmasters. Monopolistic tech giants (Meta, Google). User-controlled self-sovereign identity.
Search Paradigm Keyword matching on text directories. Behavioral social search and hashtags. Context-aware semantic natural language AI.
Interaction Flow One-way broadcast (Company to User). Two-way multidirectional peer networks. Autonomous machine-to-machine exchange.

Part 4: Worked Problems & Exam Traps

Worked Numerical: Multi-Stage Digital Acquisition Conversion Funnel

An e-commerce retailer in Nepal executes a monthly digital marketing campaign:

  • Digital Advertising Budget Spent: NPR 400,000
  • Ad Impressions Generated: 2,000,000 impressions
  • Click-Through Rate (CTR): 2.5%
  • Product Landing Page Bounce Rate: 60% (40% stay to browse products)
  • Add-to-Cart Conversion Rate: 15% of active browsers
  • Checkout Cart Abandonment Rate: 70% (30% of added carts complete purchase)
  • Average Order Value (AOV): NPR 3,200

Step 1: Compute Total Website Clicks (Traffic Visits)

Clicks=Impressions×CTR=2,000,000×0.025=50,000 visits\text{Clicks} = \text{Impressions} \times \text{CTR} = 2,000,000 \times 0.025 = 50,000 \text{ visits}
Cost Per Click (CPC)=400,00050,000=NPR 8.00/click\text{Cost Per Click (CPC)} = \frac{400,000}{50,000} = \text{NPR } 8.00 / \text{click}

Step 2: Trace the Down-Funnel Drop-Off

  • Active Browsers (Non-bounced visitors): 50,000×(1−0.60)=50,000×0.40=20,000 visitors50,000 \times (1 - 0.60) = 50,000 \times 0.40 = 20,000 \text{ visitors}
  • Shoppers who Add to Cart: 20,000×0.15=3,000 shoppers20,000 \times 0.15 = 3,000 \text{ shoppers}
  • Completed Purchases (Transactions): 3,000×(1−0.70)=3,000×0.30=900 orders3,000 \times (1 - 0.70) = 3,000 \times 0.30 = 900 \text{ orders}

Step 3: Calculate Total Sales Revenue and Overall Funnel Conversion Rate

Total Gross Sales Revenue=900 orders×NPR 3,200=NPR 2,880,000\text{Total Gross Sales Revenue} = 900 \text{ orders} \times \text{NPR } 3,200 = \text{NPR } 2,880,000
Overall Funnel Conversion Rate=900 orders50,000 visitors×100=1.80%\text{Overall Funnel Conversion Rate} = \frac{900 \text{ orders}}{50,000 \text{ visitors}} \times 100 = 1.80\%

Step 4: Compute Return on Ad Spend (ROAS) and Customer Acquisition Cost (CAC)

ROAS=Total RevenueAd Budget Spent=2,880,000400,000=7.20x (or 720%)ROAS = \frac{\text{Total Revenue}}{\text{Ad Budget Spent}} = \frac{2,880,000}{400,000} = 7.20x \text{ (or } 720\%)
CAC=Ad Budget SpentNew Customers Acquired=400,000900=NPR 444.44/customerCAC = \frac{\text{Ad Budget Spent}}{\text{New Customers Acquired}} = \frac{400,000}{900} = \text{NPR } 444.44 / \text{customer}

TU Exam Trap: Students compute Return on Ad Spend (ROAS) by subtracting ad budget from revenue rather than calculating the revenue-to-cost multiple. Students lose marks here because ROAS is expressed as a gross revenue efficiency ratio (Revenue/AdSpendRevenue / Ad Spend), whereas ROI deducts all operational and product costs.