Some studies indicate that consumer responses to traditional marketing approaches are becoming less predictable for businesses. According to a 2018 study, nearly 90% of online consumers in the United States researched products and brands online before visiting the store or making a purchase. The Global Web Index estimated that in 2018, a little more than 50% of consumers researched products on social media. Businesses often rely on individuals portraying their products in a positive light on social media, and may adapt their marketing strategy to target people with large social media followings in order to generate such comments. In this manner, businesses can use consumers to advertise their products or services, decreasing the cost for the company.
In 1980, Michael Porter developed an approach to strategy formulation that proved to be extremely popular with both scholars and practitioners. The approach became known as the positioning school because of its emphasis on locating a defensible competitive position within an industry or sector. In this approach, strategy formulation consists of three key strands of thinking: analysis of the five forces to determine the sources of competitive advantage; the selection of one of three possible positions which leverage the advantage and the value chain to implement the strategy. In this approach, the strategic choices involve decisions about whether to compete for a share of the total market or for a specific target group (competitive scope) and whether to compete on costs or product differences (competitive advantage). This type of thinking leads to three generic strategies:
According to Porter, these strategies are mutually exclusive and the firm must select one approach to the exclusion of all others. Firms that try to be all things to all people can present a confused market position which ultimately leads to below average returns. Any ambiguity about the firm's approach is a recipe for "strategic mediocrity" and any firm that tries to pursue two approaches simultaneously is said to be "stuck in the middle" and destined for failure.
However, identifying the right strategies to market your business is often likened to rocket science. How do you get your message to the right audience and do it effectively? How do you boost visibility and increase sales while sustaining a profit with a converting offer? Today, with so much vying for our attention from social media, to search engine optimization, blogging and pay-per-click advertising, it's easy to see why most are ready to pull their hair out.
With the explosion of digital media, people began to engage with each other – and the companies they did business with – in new ways. The relevance of traditional print and broadcast channels declined, completely changing the consumer-corporation dynamic. Digital channels opened doors for consumers. No longer passive participants in a one-sided marketing conversation, consumers became empowered authors, publishers and critics. The digital landscape is participatory, an area where consumers exchange ideas. Marketers no longer drive the discussion. Everyday consumers are now the style makers and trendsetters.
^ Brown, L., Competitive Marketing Strategy: Dynamic Manoeuvring for Competitive Position, Melbourne, Nelson, 1997; West, D., Ford, J. and Ibrahim, E., Strategic Marketing: Creating Competitive Advantage, Oxford, Oxford University Press, 2010, p. 50-56; Schaars, S.p., Marketing Strategy, The Free Press, 1998, [Chapter 4 - 'A Brief History of Marketing Strategy'], pp 18-29
What does it take to do that? Simply put, you have to take a step back for a moment. You have to analyze and understand the basic mechanics of your message and how to effectively reach a larger audience without losing your shirt. The secret to all of this? No matter what marketing strategy you use, if you don't have an effective sales funnel and optimize your conversions, you'll just be throwing money away.
As the study of marketing became more prevalent throughout the 20th century, large companies—particularly mass consumer manufacturers—began to recognize the importance of market research, better product design, effective distribution, and sustained communication with consumers in the success of their brands. Marketing concepts and techniques later moved into the industrial-goods sector and subsequently into the services sector. It soon became apparent that organizations and individuals market not only goods and services but also ideas (social marketing), places (location marketing), personalities (celebrity marketing), events (event marketing), and even the organizations themselves (public relations).
Because digital marketing has so many options and strategies associated with it, you can get creative and experiment with a variety of marketing tactics on a budget. With digital marketing, you can also use tools like analytics dashboards to monitor the success and ROI of your campaigns more than you could with a traditional promotional content -- such as a billboard or print ad. How to Start a Digital Marketing Agency in 2020 [SMMA]
Growth of a business is critical for business success. A firm may grow by developing the market or by developing new products. The Ansoff product and market growth matrix illustrates the two broad dimensions for achieving growth. The Ansoff matrix identifies four specific growth strategies: market penetration, product development, market development and diversification.
A generation ago, consumers were at the mercy of advertisers who spoon-fed them marketing messages across a few media channels: print, billboards, television, radio. These advertisers created markets, defining and reinforcing consumer stereotypes. In the 1950s, advertising was primarily a one-way conversation with a captive audience. TV advertising grew and matured into a viable marketing medium. Experts were the style makers.
The third and final stage requires the firm to set a budget and management systems; these must be measurable touchpoints, such as audience reached across all digital platforms. Furthermore, marketers must ensure the budget and management systems are integrating the paid, owned and earned media of the company. The Action and final stage of planning also requires the company to set in place measurable content creation e.g. oral, visual or written online media.
The development of digital marketing is inseparable from technology development. One of the key points in the start of was in 1971, where Ray Tomlinson sent the very first email and his technology set the platform to allow people to send and receive files through different machines. However, the more recognisable period as being the start of Digital Marketing is 1990 as this was where the Archie search engine was created as an index for FTP sites. In the 1980s, the storage capacity of computer was already big enough to store huge volumes of customer information. Companies started choosing online techniques, such as database marketing, rather than limited list broker. These kinds of databases allowed companies to track customers' information more effectively, thus transforming the relationship between buyer and seller. However, the manual process was not as efficient.
Define your marketing methods. Once you understand your customers, market, and resources, choose the marketing mix that will most effectively promote your business and share your USP. How can you show customers the value of your products or services and persuade them to make a purchase? Will direct mail, online advertising, SEO, TV ads, or trade shows be an effective way to reach customers? What strategies are your competitors using? Will any of those work for you, or do you need different marketing tools?
Targeting, viewability, brand safety and invalid traffic: Targeting, viewability, brand safety and invalid traffic all are aspects used by marketers to help advocate digital advertising. Cookies are a form of digital advertising, which are tracking tools within desktop devices; causing difficulty, with shortcomings including deletion by web browsers, the inability to sort between multiple users of a device, inaccurate estimates for unique visitors, overstating reach, understanding frequency, problems with ad servers, which cannot distinguish between when cookies have been deleted and when consumers have not previously been exposed to an ad. Due to the inaccuracies influenced by cookies, demographics in the target market are low and vary (Whiteside, 2016). Another element, which is affected within digital marketing, is ‘viewabilty’ or whether the ad was actually seen by the consumer. Many ads are not seen by a consumer and may never reach the right demographic segment. Brand safety is another issue of whether or not the ad was produced in the context of being unethical or having offensive content. Recognizing fraud when an ad is exposed is another challenge marketers face. This relates to invalid traffic as premium sites are more effective at detecting fraudulent traffic, although non-premium sites are more so the problem (Whiteside, 2016).
In-game advertising - In-Game advertising is defined as "inclusion of products or brands within a digital game." The game allows brands or products to place ads within their game, either in a subtle manner or in the form of an advertisement banner. There are many factors that exist in whether brands are successful in their advertising of their brand/product, these being: Type of game, technical platform, 3-D and 4-D technology, game genre, congruity of brand and game, prominence of advertising within the game. Individual factors consist of attitudes towards placement advertisements, game involvement, product involvement, flow or entertainment. The attitude towards the advertising also takes into account not only the message shown but also the attitude towards the game. Dependent of how enjoyable the game is will determine how the brand is perceived, meaning if the game isn't very enjoyable the consumer may subconsciously have a negative attitude towards the brand/product being advertised. In terms of Integrated Marketing Communication "integration of advertising in digital games into the general advertising, communication, and marketing strategy of the firm" is an important as it results in a more clarity about the brand/product and creates a larger overall effect. Digital Marketing for Beginners: 7 Strategies That Work