Marketing Strategy in the Digital World Thesis
- Length: 15 pages
- Subject: Business
- Type: Thesis
- Paper: #38888644
Excerpt from Thesis :
Digital World and Luxury Brands
Why do companies need a digital marketing strategy?
What is the importance of digital marketing strategy in a company? The simplistic answer is the loss of opportunities and business. Digital marketing strategy formulation helps in making informed decisions about ones foray into digital marketing arena and ensuring that all the hard work is focused towards the fundamentals of digital marketing, which happen to be the most pertinent to a business. This is the initial step towards understanding the dynamics of the evolution of digital technology on the market place and its relation to the company. Increment in target market doesn't necessary depend on the type of business, but on digital technology to research, assess as well as buy the products they intend to consume. A coherent strategy of initially engagement and subsequently retention via digital technology helps a business in utilizing available opportunities thus being able to compete well in an industry without giving the competitors a chance draw away athwart an ever-increasing digital divide. In contrast to the conventional forms of mass media marketing, internet has the capacity to broaden a company's scope of marketing and in narrowing its focus significantly on relevant areas. Using digital channels can help in transcending traditional constraints, which includes geography and time zones, in connecting with a much wider audience. Digital technology also allows companies to create their marketing messages with laser-like precision in targeting speci-c niche segments inside a given wider market which once implemented effectively could be an extremely powerful amalgamation. It has often been argued that internet has put buyers in charge as never before, but it is additionally vital to remember that it has an ability to deliver an unparalleled suite of not just tools but also strategies as well as tactics, which permits marketers to approach and also engage with the same target market. The promotion field has never before been more dynamic, challenging and varied which rationalizes a need for a cohesive digital marketing strategy. In harnessing the benefits of digital marketing to push forward online business to novel heights, a company needs a comprehensive understanding of market, how digital technology is utilized by consumers, and how a business can best utilize the same technology to construct long-lasting as well as mutually beneficial links with them. As digital outlets carry on to widen the scope accessible to marketers, a potential complication of digital marketing operation also increases. Holding a visibly outlined strategy helps to keep a company focused in ensuring that its marketing activities are always aligned with its business objectives and, crucially, ensures targeting of the right people required for improved performance.
Digital marketing and its link with ordinary businesses
Nature of business, current business position and expected future performance are more dependent factors for consideration compared to business suitability to digital marketing. Digital marketing is not suitable for dairy farmers in rural Ireland who supply milk on fixed contract to local cooperative and have little or no ambition to expand in future. Digital marketing is also not suitable for the local barber or even butcher with a dedicated clientele in a flourishing market town or district, but has a desire to maintain a status quo. An example of digital market oriented business is a flourishing town's butcher looking to diversify his or her product offer, broaden the scope of business and has plans to begin selling quality organic products to hotels and restaurants throughout the country. Majority of businesses that exist in an economy can benefit from digital marketing to a certain degree without considering the size of business. Providing online informative brochures and sending out special posts to current consumers through his newsletter campaign or Really Simple Syndication (RSS Feed); are some basic activities which qualify for digital marketing. Target market for home-based business selling hand embroidered cushion covers, a small-scale artisan food producer, upland-coming restaurateur, or multinational corporation, can generally be found online. Critical digital marketing can be experienced when a target market, with access to internet, relies on online channels for information, research and purchasing needs.
Who needs digital marketing?
There are two key questions one need to resolve before deciding whether or not a business has got to have a digital marketing strategy. First and foremost, a company needs to know whether its customers can be traced online or not. If customers utilize digital technology to research or perhaps purchase products and services a company provides, then obviously digital marketing will be embraced to help engage with them as well as retain them. Digital marketing varies with generations which require companies to remain updated to avoid reduction in market share. Secondly, a company needs to know whether its products, services or brands are suited to digital marketing. Such a question is usually tricky, but often the response is usually positive since it doesn't matter the kind of product, service or brand available as long as its target group is found online. There are products and services that are easily found online including digital files comprising of e-books and music, and spring to mind which makes it easy to make choices when need arises. There are also some items which are usually marketed via digital outlets which people do not expect to find in the internet and their purchase is rarely done over the internet. Customers go online to research, evaluate and compare choices of different products and services made available to them. Consumers make buying decisions founded on the online experience quality and subsequently head to the physical location of the store to pay in cash. Products such as cars, boats, homes, apartments, animals, tractors as well as others, are all being proactively as well as successfully marketed online.
Classifying digital marketing strategy
Once a company decides to market products through internet, the next is usually to settle for an appropriate strategy which fits the products or services being offered for sale which takes substantial period of time to put in place. Different companies do have different strategies and any imitation by companies on competitor's sample usually leads to negative results. However, there is some sample background information found online which can help to give a direction for appropriate end results. While the available elements are identical, the consequential strategies could be completely different which is objective and easy to understand. If a company sells apples to domestic buyers by the truckload, its strategy will hold little similarity with a firm selling electronic-books. In addition, its reports on detailed financial trading, which will consequently be extremely distinct from the strategy assumed by a sports clothing producer who desires to avert retail outlets and allow customers to buy directly on the Internet. Distinct products, distinct markets and distinct needs are usually accompanied by distinct solutions. Digital marketing strategies can easily be defined accurately by people who have substantial knowledge about the products, services or business in operation.
The ins and outs of digital marketing: At the global level
There is nothing unusual about the digital customers at all. They are the regular customers visiting a retail shop, walking in and out of a sore, calling on the telephone and meeting on a daily basis. The digital customers think and act the same way like real customers do. The customers are doing what's expected of them. That is sharing knowledge and experience amongst themselves. Now technology is bringing them closer than ever before with distances eliminated by laptops, smartphones and tablets, it's really a global village. It's all about communication; it's always been like that. They have fixed language and they are communicating in it. They aren't always sitting in a bar drinking wine, maybe they are conversing with each other on the internet with more than five people.
The comfortable web
The customers are least bothered about behind the curtains work done. All they are concerned is with the shopping experience and value-for-money offered to them. They are alien to such concepts:
Above the line
Below the line
All of these terms are unknown and alien to them. The customers care about the shopping experience. They should be able to make informed decisions and the website will determine that. People are the most important segment of the website behind the curtains and beyond the curtains. It's true for every field; not just digital marketing. Being a digital marketer, it's necessary to comprehend the customer behavior and their psyche. The digital customer has a particular behavior and it keeps altering. The digital technology changes but with it the requirements of the customer also changes as well. According to Dave Friedman (president for central region Avenue A) says that, 'The customers of today are busy sharing their experiences digitally while overseeing niche content with video as well to ensure quality purchase'. The digital technology is fast and ever expansive. It can filter, categorize and organize the content according to the user's requirements. According to Friedman, 'The digital marketplace has reached its zenith as the…