THE EFFICANCY OF ORGANIC VERSUS INORGANIC MARKETING IN THE DIGITAL ERA

Abstract

Inorganic marketing techniques, in contrast with organic marketing techniques, rely on paid advertisement campaigns to drive user traffic and to boost sales. In order to improve their bottom line, companies invest heavily in paid campaigns. It works for some, but for most it results in cash burn. Therefore, a pertinent question is raised: What kind of companies should invest in paid campaigns during various stages of their life cycle. This paper highlights a key observation that paid campaigns like PPC (Pay Per Click) and social media paid campaigns are not for all. The idea goes against the conventional wisdom of 'more the merrier' as propounded by the digital marketers. The decision to invest in inorganic marketing methods should be taken based on the nature of enterprise and the stage of operation it is in. This research discusses the case of Hello Study Global, an educational start up aimed at preparing students for their higher education abroad. The primary subject of the study was done on the official website of Hello Study Global [1]. In the digital era, the businesses have moved online. Education space is no exception. The advantages of going digital have outweighed the disadvantages. Online education offers not only convenience to the pupils but also cost effectiveness. Moreover, online education has created a digital web of qualified educational professionals who are accessible to almost anyone with internet connection and a device to stream the content. Students living across different continents, having different cultures are studying under the same digital roof. From the business perspective, eduprepreneurs are exploring ways and means to expand their presence, riding on the opportunities provided by the World Wide Web. One common strategy to boost sales is to opt for online paid advertisements. Among online paid advertisements, PPC is highly popular among the digital marketers. PPC is an online advertisement model in which an advertisement publisher pays for the ads when they are clicked by a user on the internet. These advertisements are used to drive user traffic on the target website. An advertiser specifies the ‘keywords’ in the ad campaign to target and various demographic parameters of the intended customers. There is an inherent contradiction in the intended expectation and the result of a paid advertisement when it comes to certain industries. Education industry thrives on academic excellence and a proven track record. Hence, word of mouth publicity goes a much longer way in establishing trust among the intended audience than a paid campaign. This observation becomes even more strikingly appropriate and pertinent when premium services are being availed. Due to the high cost of service, the consumers rely more on organic reviews and Word Of Mouth (WOM) publicity rather than inorganic paid advertisements. Also, organic marketing techniques bring in a sustainable competitive advantage, which is critical for survival and proliferation of a start-up. The start-ups that fall into the trap of

10 unbridled reliance on paid campaigns in their initial years of existence run a risk of depleting their cash reserves without any significant return on investment. Also, paid campaigns, in such a scenario, are seen with scepticism by the intended consumers, who may question the sincerity of the message relayed in the campaign. Case of Hello Study Global, with its one year of operations, demonstrates the same for small scale start-ups operating in the educational domain.