The document discusses the value chain digitalization, highlighting various functions such as procurement, production, delivery, and expert services that contribute to operational efficiency. It details digital marketing business models that leverage key value elements, including convenience, variety, cost, aesthetics, communication, and customization, to enhance customer experience. Additionally, it explores consumer behavior in relation to digital marketing, emphasizing the distinction between consumers and customers and outlining the stages of the consumer decision-making process.

1. Value Chain
Digitalization

2. Meaning:
•Value chain is defined as a chain of
activities that a firm operating in a specific
industry performs in order to deliver a
valuable product or service for the market

3. Functions of Value Chain:

4. • Procurement function: Related to all activities for procuring raw
material and other types of input content (for services) from multiple
supplier sets
• Production function: Involves the set of processes towards creating
or in certain cases assembling new products and services to be sold to
multiple customer groups
• Delivery function: Involves the set of activities geared towards
warehousing, delivering, and ensuring final consumption at the
customer’s end
• Expert function: Relates to expert activities or services provided by
multiple intermediaries or as we call them here “expert partners” who
can bring down operational costs

5. Digital Marketing Business Models
A digital business model is a form of creating value
based on the development of customer benefits using
digital technologies

6. Value Elements
• Value elements essentially are the set of key
differentiators which when used individually or in
conjunction with each other provide a unique
compelling proposition for any customer to buy a
product from online rather than physical channels.

7. • Convenience: The foremost value which any digital business will provide a
customer is to make it more convenient for the him/her to search, catalogue,
select, order, and receive goods or services than to do the same in the
physical environment
• Variety: The next important factor is the variety of products and services
which can be put on display across dedicated websites and commerce
portals, and the sheer amount of information which can be shared for each
of the available elements.
• Cost: Involves the ability to manage costs by either utilizing efficient expert
intermediaries or bypassing multiple levels of middlemen who add to the
costs of the final products.
• Aesthetics: It is one of the most novel differentiators which is not given
much attention during online value creation discussions. Aesthetics include
an array of tangible and intangible value-enhancing components like
product design, overall styling of medium, channel and message, impact of
subtle imagery, etc., all of which contribute a great extent towards the
packaging of even average products and showcasing them online in a highly
stylized manner.

8. • Communication: A broad value differentiator,
communication can go on a long way to provide digital value
which normally cannot be generated for a product sold
offline.
• Customization: Out of the six digital value addition
elements, customization is probably the one which is being
largely discussed and still has a lot of room for improvement.
Customization typically means identifying key customer
segments, developing their personals (key traits, buying
patterns, goals, skills, attitudes, etc.), and being able to deliver
the exact experience which even a single customer might be
looking out for, provided it makes investment sense.

10. Application of Business Models
• Search engines: These are entities which provide search-related
function and map customer searched content to pre-classified
content.
• Content aggregators: These are companies/websites which
aggregate content pieces from various sources and provide them
in the form of curated articles in a highly classified format.
• Vertical portals: It will provide news, views, articles, forums,
social networking features dedicated to that particular subject
area.

11. • Content aggregators: These are companies/websites which aggregate
content pieces from various sources and provide them in the form of
curated articles in a highly classified format.
• Marketing applications: Applications or mobile apps, (as they are
mostly referred to these days), provide simple, intuitive interfaces to
improve information retrieval and productivity.
• Content licensing: Includes models wherein content (which might be
owned or tied-up with) is leased or licensed further to other websites,
to create other content-based offerings or packages, a portion of which
is then paid back to original content producers.

12. Consumer for Digital Marketing
• Consumer behavior and related studies have formed an integral part of
marketing as it is crucial to understand the motivations and factors
which lead to a consumer buying any specific brand over another and
choosing certain websites, platforms, and channels over and over
again for purchases.
• It is important to understand the difference between two terms which
are often confused and substituted for each other—the consumer and
customer. In marketing parlance, the term customer refers to the
purchaser of the product whereas consumer refers to the end user of
the product or service.

13. • The simplest example relates to baby products wherein a
mother is the customer while the actual consumer is the baby
for whom the product has been bought.
• In several cases, the consumer can also act as a customer,
when he/she is singularly involved in searching, evaluating,
and buying the product, and finally consuming it.

14. Stages of Consumer Model
(a) Information input stage
(b) Information processing stage
(c) Decision process stage

15. Elements of Decision process stage