80/20 Principle for Lectures 6, 7, and 8 Flashcards
What is Digital Marketing?
Definition: Promoting a product/service using online channels like websites, social media, email, SEO, PPC.
Why it’s important? Digital Marketing
Cost-effective: Facebook ads can reach 1M people for $1,000, TV ads cost $10,000.
Data-driven: Tracks user behavior for better targeting.
Personalized: AI helps tailor content for each user.
Evolution of Marketing
1990s: Traditional Marketing
TV, radio, newspapers – broad audience, high cost.
Cold calling, direct mail – expensive, low engagement.
2000s: Early Digital Marketing
Websites, SEO – brands started online presence.
Email marketing – often seen as spammy.
2010s: Social & Mobile Revolution
Social media ads (Facebook, Instagram, LinkedIn).
Data-driven marketing – analytics for precise targeting.
2020s: AI & Hyper-Personalization
AI-powered chatbots, predictive analytics.
Personalized ads and content recommendations.
SEO
SEO (Search Engine Optimization)
Free but long-term.
Involves keyword optimization, backlinks, content strategy.
Generates 1000% more traffic than organic social media.
SEM
(Search Engine Marketing)
Paid ads (Google Ads, PPC).
Immediate traffic but costly.
65% of high-intent searches result in ad clicks.
Core Components of Digital Marketing
SEO: Improves search engine rankings.
Social Media Marketing: Builds brand presence.
Content Marketing: Blogs, videos, infographics.
Email Marketing: Retargets and retains customers.
PPC Advertising: Google Ads, Facebook Ads.
Social Media Strategy for IT Companies
Why? Builds brand awareness and engages users.
Key Strategies:
Create a content calendar.
Drive engagement (reply to comments, start discussions).
Track metrics (engagement rate, ROI).
Viral Case Study: Duolingo’s TikTok Success
Used humor and trends for organic growth.
Results: 10M+ followers, 300M+ views.
Lesson: Social media success is about creativity, not budget.
Content Marketing Strategy
Why? 70% of marketers invest in content marketing.
Best Practices:
Blog posts increase leads by 67%.
Short-form videos gain more engagement.
Podcasts boost authority in the industry.
CRM & Digital Marketing Integration
What is CRM? Customer Relationship Management.
Benefits:
Centralizes customer data.
Improves personalization in marketing.
Automates follow-ups and recommendations.
Digital Marketing Analytics & Performance Tracking
Tools:
Google Analytics – website traffic, user behavior.
Facebook/LinkedIn Insights – social media engagement.
Key Metrics:
Traffic sources, conversion rates, customer acquisition cost (CAC).
Why Finance is Important in IT
Financial literacy helps in budgeting, planning, and decision-making.
IT projects need sustainable financial models for growth.
Budgeting Methods in IT
Activity-Based Budgeting (ABB): You spend money based on how much an activity (like production or marketing) actually costs. If you produce more, you spend more; if you produce less, you spend less.
Zero-Based Budgeting (ZBB): Every year, you start from zero and plan your budget from scratch. Nothing is carried over from last year—you must justify every expense.
Rolling Budgeting: Instead of making a yearly budget, you update it regularly (every month or every three months) to adjust for changes in costs and income.
Revenue Streams in IT
Product Sales: Software, hardware.
Subscription Models: SaaS, cloud services.
Licensing & Royalties: Monetizing intellectual property.
Profit & Loss Statement (P&L)
Revenue – Total earnings.
Cost of Goods Sold (COGS) – Direct costs of production.
Operating Expenses (OPEX) – Salaries, rent, IT costs.
Net Profit – Final earnings after all costs.
Break-Even Analysis
Determines when total revenue = total costs.
Formula: Fixed Costs ÷ (Price per unit – Variable Cost per unit).
ROI & IT Investments
Formula: (Revenue – Cost) ÷ Cost × 100%.
Example: Invested $50K → Earned $100K → ROI = 100%.
Case Study: Netflix’s AI-Powered Budgeting
Used machine learning to optimize cloud costs.
Result: Cut IT infrastructure costs by 40% while scaling globally.
IT Financial Risks & Solutions
Scope Creep: Uncontrolled project expansion.
Cybersecurity Costs: Data protection compliance.
Solution: Agile budgeting, cost-benefit analysis, contingency funds.
HR’s Role in IT
Attracting, developing, and retaining skilled professionals.
Reducing turnover and improving job satisfaction.
Talent Acquisition in IT
Recruitment Platforms: LinkedIn, GitHub, Stack Overflow.
Hiring Strategies: Hackathons, tech meetups, employer branding.
Building Effective IT Teams
Key Aspects:
Combining technical and soft skills.
Encouraging collaboration and innovation.
Using project management tools (Slack, Jira, Trello).
Employee Retention Strategies
Competitive Salaries & Bonuses.
Flexible Work Arrangements: Hybrid/remote options.
Continuous Learning: Certification programs (AWS, Cisco, PMP).
Leadership Styles in IT
Transformational Leadership: Inspires innovation.
Servant Leadership: Focuses on team well-being.
Situational Leadership: Adapts to project needs.
Performance Management & Appraisals
Key Metrics: Code quality, uptime, project completion rates.
360-Degree Feedback: Peer + manager evaluations.
Frequent Reviews: Real-time feedback instead of annual assessments.
Case Study: Netflix’s High-Performing IT Culture
Hired only top talent.
Gave employees full autonomy.
Result: Rapid innovation, market dominance.
Future HR Trends in IT
AI in Recruitment: Automates screening & hiring.
Gig Economy: More freelance/contract IT jobs.
Remote Work Models: Virtual teams using collaboration tools.
Revenue
how much money make from selling product or service
COGS
money for produce product or service
Gross Profit =
Revenue - Cost of Goods Sold (COGS)
OPEX
operating expenses like for rent marketing R&D
Net profit
gross profit - opex.
Total assets
how much valuable things own a company
Total liabilities
what company need to pay for others may be for suppliers, taxes and etc
current liabilities
each month
non-current liabilities
not systematic
equity
what’s left for the owners: assets - liabilities
balance sheet
snapshot of a company’s financial state:
equity = assets - liabilities
cash flow
inflow - outflow = cashflow
