Executive summary
Digital marketing is on the rise today, and many businesses are using it to expand their customer base. Its incorporation in the marketing strategies has borne fruits for several business entities. An exploration of the online markets provides a new avenue for businesses to engage customers more, interact with them directly, get feedback from their experiences and provide adequate information about the products that they sell. It has been projected that the digital migration will continue and more people are likely to venture into the online search for goods, ordering and paying for them and waiting for delivery at their convenience. Businesses have to find a means of adapting to the changing nature of marketing and asserting themselves within the ecosystem that is favored by many at the moment.
Introduction
This white paper is an evaluation of the possibilities of getting many potential clients by using digital marketing strategies. Today, businesses have opted for digital marketing, especially the use of social media and websites to engage more customers at a relatively lower cost. Compared to the mainstream marketing methods, digital marketing can reach a large number of customers within a short period. This paper's purpose is to show the potential benefits of incorporating digital marketing into the marketing strategies.
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Platforms for digital marketing (Source: Google)
Digital marketing has not been in existence for a very long time, but the fruits of its use are enormous. Though it presents a challenge of using the digital platforms to reach to the potential customers, it may boost sales as many people can hear or read about the products and services within a short time. The package also comes with digital forms of payments for goods purchased online. Using these platforms provides an opportunity for businesses to engage their customers more through direct feedback. This mode of marketing has enabled the business persons to be attentive to personal needs of the clients (Chaffey, Smith &Smith, 2012). Customers are also able to order for their goods from the comfort of their homes without having to visit stores and shops physically. As Chaffey, Smith &Smith (2012) state, social media and mobile marketing are slowly taking over the marketing world, and it would be important that the business tries these avenues. Digital marketing has its benefits such as cheaper marketing costs, a significant number of audiences reached and the consumers have the privilege of getting to know the products which they intend to buy before purchasing them (Landry, 2012).
Over time, there has been an increase in the number of people who access the internet via their personal devices. According to Perrin and Anderson (2016), only 13% of the American adults do not access the internet. The remaining 87% use the internet for socialization, news, academics and shopping. Eighty seven percent of all adults is a large number and provides a broad market base because they are mostly made up of people with financial stability. The individuals who access the internet prefer mobile friendly sites where they can make orders and purchase products that they need. Research from Google showed that 67% of internet users admitted that they were likely to buy products from mobile-optimized sites (Landry, 2012). There is a likelihood that the numbers will keep going up and the online market continues to grow over time. This could provide a suitable market for the business if a comprehensive plan to use digital marketing is explored and put down in time.
Percentage of American adults who access the internet
Percentage of Americans who are likely to buy products from mobile friendly sites
Previous Approaches
Previously, companies and organizations have incorporated the use of digital marketing in their marketing strategies. The aim of the integration is to capture the tech-savvy clients. The digital revolution started with the development of gadgets such as personal computers and phones. The business can borrow the development of the electronic marketplace and use them to popularize the products, cut marketing costs, expand the clients' base and serve them (Chaffey, Smith &Smith, 2012). The plan includes targeting and marketing via social media and other websites. One primary technique for achieving this is by using pop-up ads on websites whose owners accept collaboration. Short, clear and concise adverts have been employed by some companies online to enhance sales and get to as many customers as possible. Some of the businesses that have done well with the online marketing strategies are Amazon, Walmart, and Netflix. As Ferguson (2017) states, Walmart has been a success because of their marketing mix which includes product promotion and marketing. They have embraced the digital age of revolution and expanded their market to accommodate the youth, children and those who do not have time to visit their stores physically.
Companies have also shifted to providing information to their potential customers via digital platforms. According to Wind & Mahajan (2002), today's customers demand more and accurate information about a given product in the market. The need for information has compelled many organizations to seek means of providing it adequately, accurately, fast enough and in detail. Most of the mainstream methods such as television, radios and print media may not provide adequate space or time for such information. As a result, organizations have resorted to providing the information online where one can access anytime, at their convenience. Such information can include pricing, availability of products, product brands, new products and even replacement of the goods or refunds in case there is a problem with the a customer purchases. The information provided can be used by the clients to make wise decisions on what they should buy after they have verified it. Today, with the elevated levels of health consciousness, organizations are most likely to provide critical information such as those that are health related.
Wind and Mahajan (2002) also discuss that online forums provide a viable platform for the exchange of information. Recently, organizations have developed mechanisms where they ask for the consumers' feedback so that they can analyze it and use the results to improve the provision of products and services. There has been a tremendous increase of the customer – organization relationships creating interdependence between the two entities. Organizations rely on information from their clients to improve their policies, service provision and customer relations. Digital platforms are efficient when it comes to providing such information as compared to other modes such as the use of sales representatives because of the many people that it can reach in a short time. It is also a cheaper option as it remains online after a single posting until the organization brings it down (Wind & Mahajan, 2002).
New Findings: The Future
It is evident that businesses are making real progress and expanding their customer base by exploring the digital marketing platforms. Lately, there has been an influx of online marketing schemes adopted by business organizations. In return, businesses get to know the exact needs of their clients and customize their objectives to meet these requirements (Landry, 2012). Landry also states that digital marketing is meant to last into the future and there is more to come compared to the conventional ways of marketing. The world draws to an age where electronic gadgets are essential to human beings. As a result, most goods and services will continue to be purchased online, and payments settled through electronic means. Therefore, businesses should embrace shifting most of their operations to online systems so that they are not left out of the digital migration.
Another importance of digital marketing that Landry (2012) states is the ability to change commodities and services based on the needs and preferences of the customers and create a rapport with them. Online marketing platforms allow for the customers to ask about availability products and place orders for them even if they are not in the stores at that time. With such trends, the business persons learn about the products that are trending and in demand at a particular time and focus on providing them for their customers. The close connection between the client and the business persons may grow into trust, leading to loyalty. Customers who are served well will rarely change places where they purchase their goods or get their services. With time, businesses begin to offer technical information and help to the customers. This in return increases the customer satisfaction and retention. Over time, the business gets many loyal customers who are loyal and thus reducing costs associated with the attraction of new customers to the firm (Ennew, Binks & Chiplin, 2015).
Digital marketing also offers a platform to make analyses quickly by monitoring the number of clicks. Unlike other marketing methods where one has to make estimates, digital marketing offers a real-time opportunity to analyze how the strategies are faring and the overall performance of the business. Social media sites such as businesses provide statistics about likes and reactions to statements and information postings by the organization (Stone, 2014). Organizations may use digital database management systems to analyze the online customer statistics and predict a drop or an increase in the numbers over time. Digital marketing has also made it easier for one organization to check how it compares with others in the market easily. It only requires a click of a website button and a glance on how many people are checking in at a time. Many businesses also borrow strategies from others by perusing through their sites and establishing how they run their businesses (Stone, 2014). These analyses also inform organization on the types of businesses to venture into, what to do and what to avoid.
Finally, digital marketing system provides a level ground for all businesses and is slowly bringing to an end the domination of well-established large-scale businesses. Unlike the conventional ways of marketing where a business had to part with large amounts of money, online marketing requires access to the internet and skilled personnel to get it running. Big businesses no longer have the advantage because all businesses are exposed, probably to the same customers. Success depends on the availability of products as listed on the organization's sites and the aggressiveness and skills in digital graphics. It also depends on the flexibility and ease of changing from one product to another depending on the customer preferences. Information provided by the business entity to its customers and how fast they are to respond to questions and inquiries contributes to the prosperity (Chaffey, Smith &Smith, 2012). The business will also have a chance to fight for customers that bypass the physical appearance and make their transactions online.
Conclusion
Digital marketing is an avenue that can help boost the growth of the business if the correct strategies are used. Walmart, Netflix, and Amazon have been using market mixes that include digital marketing for some time now, and the results are admirable. They have made significant progress by expanding their businesses, tracking and understanding their customer's needs and preferences and providing the products on demand and lastly, they have been able to reduce their marketing costs significantly. Digital marketing also makes it easier for organizations to track their progress, analyze their performance in the market and even compare to others easily. This is done through the study of customers' traffic on the page, their comments, clicks, questions and feedbacks.
Through digital marketing, small and medium scale businesses have a chance to outdo the large scale business if they strategize properly and choose the right targets for their products. There is also greater engagement of the customers since they have the ability to look at the samples provided online in pictures, analyze and evaluate them, rate them, read about them and then buy and pay for them. They can also provide feedback on the products quickly and easily because they just have to visit the website and leave comments. The close interaction with the customers increases customer retention and satisfaction. Businesses can reach many potential customers within minutes of making a post online. Organizations have share buttons on their websites and social media pages. When users click on these buttons, the information is shared with their online friends, and the message spreads fast within a short time. Multiple people can also log onto the website at the same time and access the information simultaneously. That is rarely the case with the conventional ways of marketing such as the use of sale agents who can't handle thousands of customers at once.
References
Chaffey, D., Smith, P. R., & Smith, P. R. (2012). E-Marketing Excellence: Planning and Optimizing Your Digital Marketing. Routledge. Print
Ferguson, E. (2017). Walmart’s Marketing Mix (4Ps) Analysis & Recommendations. Panmore Institute. http://panmore.com/walmart-marketing-mix-4ps-analysis-recommendations
Wind, Y. J., & Mahajan, V. (2002). Digital Marketing: Global Strategies from the World's Leading Experts . John Wiley & Sons. Print
Landry, J. (2012). What a Digital Marketing Strategy Means For Your Business . Retrieved March 9, 2017 from: http://www.kahnlitwin.com/pdf/What_a_digital_marekting_strategy_means_for_your_business.pdf
Perrin, A., & Anderson, M. (2016). 13% Of Americans Don’t Use The Internet. Who Are They? Pew Research Centre. Retrieved March 9, 2017 form: http://www.pewresearch.org/fact-tank/2016/09/07/some-americans-dont-use-the-internet-who-are-they/
Ennew, C. T., Binks, M. R., & Chiplin, B. (2015). Customer satisfaction and customer retention: An examination of small businesses and their banks in the UK. In Proceedings of the 1994 Academy of Marketing Science (AMS) Annual Conference (pp. 188-192). Springer International Publishing.
Stone, M. (2014). The New (and Ever-Evolving) Direct and Digital Marketing Ecosystem. Journal of Direct, Data and Digital Marketing Practice , 16(2), 71-74.
