BAPRM 42615
13 MAY 2016
TIME 23:41
Digitization and marketing.
Digitization
has become part of our daily routines. We are increasingly spending time online
and using social media (Forrester Research 2008; Nielsen 2012). They use online
services for countless activities, browsing web pages, storing and playing
music, sending e-mails, searching for information, and meeting other people.
With the devices available such as Smart phones and tablets, they are even more
connected. Digitization has brought about a social revolution is widely
acknowledged by both practitioners and academics, especially of social media,
has transformed consumer behavior with important consequences for firms, products,
and brands. The changing marketing communication landscape naturally challenges
companies to adapt to the requirements of digitization as well as to adopt new
ways and tools to communicate with and reach, meet, and serve today’s
customers. In a similar way to academic discussion, management consulting is
also pushing companies forward by urging them to update their business ideology
to suit the digital age. ‘To stay competitive, companies must stop
experimenting with digital and
Commit
to transforming themselves into full digital businesses’ (Olanrewaju et al.
2014). This does not mean companies must physically transform their business
into online form, but that they should intellectually accept digital
developments and transform the company mindset to align with the digital age.
Companies need to understand the value of digitization for their business as
the CEO of McKinsey’s London office Paul Willmott (2014) has advised. However,
transforming a business to exploit the digital age is easier said than done and
many companies seem bemused by the demands made by today’s digital and social
customers. Over the last 20 years, the amount of internet marketing research
has increased dramatically and the influence of new technological solutions
such as social media has clearly become visible in research. Despite the
relatively short history of Internet marketing research, it would be false to
claim that digital marketing is a new practice. Around ten years ago had
already declared that internet marketing is “coming of age” supported this
declaration and compared e-marketing with other contemporary marketing
practices, noting that e-marketing had, to a large extent, become an integrated
part of other marketing practices. The digital marketing research field, that
specifically focuses on measuring the benefits of digital marketing
utilization, highlights the importance of viewing it as an integrated function
of marketing rather than a separate one or as ‘marketing communication plus’. However,
digital marketing has also been described as a new approach to marketing rather
than just traditional marketing boosted by digital elements even claimed the
rise of social media has brought about a paradigm shift in marketing. These two
perspectives focus on how marketing should reconcile with the rise of the
digital communication landscape and may at first seem to be contradictory but
in fact, these perspectives examine the influence of digitization on marketing
at different levels. Those who see digital marketing as an extension of
traditional marketing are actually examining digitization from a usage perspective
and view digital marketing in terms of its tools and the environment, whereas
another point of view focuses on strategic level aspects that require
fundamental changes that the ‘cultural phenomenon’ of digitization has
triggered. Hence this dissertation suggests that the changed communication
landscape should be examined at two different levels as a cultural phenomenon
with important consequences for marketing strategies and, at the same time as a
phenomenon influencing usage levels by providing new tools and new environments
to practice marketing.
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