BUS615: International Marketing

5a. Explain how the role of traditional marketing is changing as companies adopt digital marketing practices

• How can the growth of digital marketing benefit a small business?
• How does digital media differ from traditional media as it relates to target marketing and communication?
• How have advances in technology impacted the field of marketing?

Traditional media outlets include television, radio, print, and outdoor ads. The cost to advertise through these media tends to be expensive and reaches large groups of consumers, many of whom may not be the target market for the company. Competition is high, and the advantage is squarely in the hands of companies with large advertising budgets.
 
Digital media platforms help to level the playing field and provide small businesses with the opportunity to compete with larger companies in the online world. Through websites, social media, and other online platforms, small businesses can gain awareness and generate excitement about their products and services at a much lower cost than traditional media outlets. They are also better able to direct their efforts to consumers who are most likely to buy their products. Unlike traditional media, digital media enables companies to tailor their efforts to a specific group of consumers, making a greater impact overall. This results in a much more targeted effort, with fewer advertising dollars wasted.

Digital media enables companies to easily target both local audiences, as well as those on an international scale. Traditional media requires a much greater effort to connect with consumers on a local basis, while international efforts can be complex, costly, and time-consuming. Digital marketing efforts also enable companies to target their campaigns based on demographics, gender, age, and location, while traditional media campaigns are more general in focus. Digital media, specifically social media, enables companies to directly interact with their customers, which is not possible through traditional media outlets.
 
Tracking digital media ad effectiveness is much easier through the various online analytics that are available while measuring ad effectiveness for traditional media is difficult. For example, when a company airs a commercial on television or has a billboard on the side of the road, they are not able to determine which of those ads resulted in a sale. However, online ads that connect a consumer with a website on which a sale is made are easily measured and tracked. Overall, digital media is more cost-effective than traditional media and can enable a company to reach more of their potential customers in efficient ways.
 
The impact of technology on the marketing function within an organization has been tremendous. New advancements have resulted in a wider range of marketing options than in the past, making the strategic decision process more complex and expansive. Consequently, consumers are now exposed to more messages than in the past and in a wider variety of ways that are not available through traditional media outlets. Companies are now able to collect much more data about the marketplace, their customers, and the impact of their campaigns. They can communicate with their customers, make revisions and adjustments more easily, and can connect with their customers in real-time and in meaningful ways.
 

To review, see:

• Traditional Marketing vs. Digital Marketing
• How Has Media Changed and Developed?
• The Effects of Technology

5b. Evaluate the benefits and drawbacks of digital marketing

• How can companies leverage social media marketing for their integrated marketing communications strategies?
• How are digital marketing tools set apart from traditional marketing activities?
• What are some of the disadvantages associated with digital marketing?

An integrated marketing communications strategy enables companies to create consistent messaging across all media platforms. This approach provides a clear and meaningful message to consumers so that they have a full understanding of what a brand has to offer. As a component of the marketing mix, social media enables companies to extend their messaging to a wider range of consumers and expand their brand image.
 
The social media environment affords companies the opportunity to engage with consumers and encourage them to be part of the communication process. This is done through the sharing of content and spreading the word about what a brand has to offer. As a result, companies can reach more people more efficiently.
 
The digital environment has opened a whole new world for marketers in ways that traditional marketing methods cannot address.

The first aspect of digital marketing is that it is interactive. Companies can engage directly with their customers through websites, games, surveys, and other contact activities. Digital marketing is mobile and portable. Consumers can be reached at any time through their mobile devices and can make connections at times and in places that were not possible in the past. Unlike traditional media, digital media is easily measurable and tracked. Data about consumer behavior is available in large quantities, making it possible for companies to better understand the behavior of their customers and tailor ads and messaging accordingly. Digital content is easily shareable. Consumers can share any information they see with friends and family and provide companies with low-cost/low-effort exposure for their brands. Finally, digital marketing tools make it easy to integrate all of their marketing messages with other platforms and media outlets. Television commercials can be posted to YouTube or a website, content in a print ad can be posted on Twitter, and photos can be shared on Instagram. This facilitates an integrated marketing communications strategy.
 
Websites, social media platforms, blogs, and videos are all popular digital marketing activities that can enable companies to gain greater awareness, increase customer engagement, and enjoy a competitive advantage. However, digital media is immediate, and content is shared in real-time. This requires companies to keep their content current and up-to-date and be able to respond to consumers in an instant. When information from a company is outdated, consumers will quickly lose interest and move on to companies where the content is current, relevant, and meaningful in the present. Additionally, online activities need to be monitored to ensure that customer information is kept confidential and safe from hackers. This is time-consuming and costly, requiring organizations to make large investments in security.
 

To review, see:

• What Digital Marketing Platforms Are The Most Important?
• Introduction to Social Media and Digital Marketing
• Marketing Communications Methods

5c. Determine which traditional or digital marketing methods are appropriate for a given market by evaluating availability, cost, and coverage

• How does the internet benefit both large and small companies that are marketing on a global scale?
• How has m-commerce impacted strategic marketing decisions, especially those for small businesses?
• How does the delivery of customer value relate to marketing strategy?

Because companies can reach consumers at any time and in any place where internet access is available, the constraints of geography and time are eliminated. This helps to lower marketing and advertising costs while reaching wider and more diverse audiences. Traditional media comes with a high cost, and the internet helps to level the playing field and provide marketing opportunities for small businesses that they might not be able to afford.
 
Through web-tracking tools, companies are able to gain a greater understanding of the demographics and behaviors of their customers. Companies can gather data about the cultural factors that impact consumer purchasing decision-making and how these behaviors differ from one marketplace to another.
 
Finally, the internet enables companies to take advantage of personalization and tailor ads and messaging to meet specific consumer needs and wants. Since internet users tend to join groups with similar likes and interests, marketers can personalize the content and offerings to address these preferences.
 
As technology continues to advance, we are seeing an ongoing rise in the use of mobile devices for many of our online activities. This is especially evident in the world of m-commerce where a large percentage of people use their phones and other mobile devices to do their shopping. This provides a tremendous opportunity for all businesses to connect with their customers anywhere and at any time. The use of QR codes has increased, as well, providing companies with the chance to make contact with a customer, who can choose to act on the content in real time, make a purchase, and get immediate gratification. Personal selling is impacted, as well, since salespeople are able to gain information about their customers at any point in time, and further meet the needs of their customers.
 
As previously discussed, an integrated marketing communications strategy is essential for delivering a consistent and meaningful message to consumers, no matter what media outlet is used for communication. Ultimately, the goal is to deliver value to the customer and build strong customer relationships. This is done through an effective and meaningful marketing mix. Returning to the 4Ps (Product, Price, Place, and Promotion), all elements must work together to provide consumers with a product that will meet all of their needs. The methods by which this information is communicated can have as much of an impact as the message itself.
 
For example, a company that is seeking to reach a younger demographic should consider social media and other online outlets for communicating their messages. If an older group of consumers is the target market, companies should consider the pros and cons of traditional media outlets such as television and print. While costs might be higher than online options, there is a greater chance of reaching this demographic and influencing purchase decisions. 
Each of these options contributes to the value the customer receives and will impact their attitudes about a brand and whether they feel important as a customer.
 

To review, see:

• Global Marketing and the Internet
• Evaluating Marketing Activity Options
• Putting Together a Marketing Strategy

Unit 5 Vocabulary

• digital marketing
  
• digital media
• m-commerce
• personalization
• personal selling
• QR codes
• traditional media