The Significance of Marketing in a Digital Age (Essay Sample)

The Significance of Marketing in a Digital Age
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Table of Contents TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc39592304 \h 3Analysis of a Marketing landscape PAGEREF _Toc39592305 \h 3Trends PAGEREF _Toc39592306 \h 3Micro-business environment PAGEREF _Toc39592307 \h 4Macro-environment PAGEREF _Toc39592308 \h 4Marketing Mix Elements PAGEREF _Toc39592309 \h 5Product PAGEREF _Toc39592310 \h 5Price PAGEREF _Toc39592311 \h 6Place (Distribution) PAGEREF _Toc39592312 \h 6Promotion PAGEREF _Toc39592313 \h 6Market Segmentation PAGEREF _Toc39592314 \h 7Demographic PAGEREF _Toc39592315 \h 7Psychographic PAGEREF _Toc39592316 \h 7Behavioral segments PAGEREF _Toc39592317 \h 8Geographic segmentation PAGEREF _Toc39592318 \h 8Digital Marketing PAGEREF _Toc39592319 \h 9Website PAGEREF _Toc39592320 \h 9Search Engine Marketing (SEM PAGEREF _Toc39592321 \h 9Social Media PAGEREF _Toc39592322 \h 9Mobile marketing PAGEREF _Toc39592323 \h 10Online display advertising PAGEREF _Toc39592324 \h 10E-mail marketing PAGEREF _Toc39592325 \h 10
The Significance of Marketing in a Digital Age
Introduction
At some point, digital marketing was just something new in the market, and people saw it as just an alternative way to do business. However, within the past few years, digital marketing has grown into 'something else'. With the current situation, it is not just enough to have a website and run simple ads. Things are changing quickly. Companies are incorporating different techniques to beat their competitors. Most importantly, digital marketing is quickly becoming an integral method used by businesses worldwide. One important aspect of digital marketing that has helped it grow significantly is the fact that it is used where customers spend most of their time and money. With the flexibility it offers, small businesses can now compete in the marketing on a relatively lower budget as compared to bigwigs in the industry.
Analysis of a Marketing landscape
Trends
As marketing continues to grow, we are likely to experience a lot of shifts that will change how things operate. While it is quite difficult to predict the future, we may begin witnessing certain trends that have long been anticipated. First, consumer purchase decisions are becoming increasingly complex. Due to the different digital marketing platforms, it might be difficult to put all your customers into one funnel (Dominic, 2016) Consumers may buy a low-end item, and at the same time buy a high-end product. But there are just a few theories to explain this. Besides complexity, the personalization of products is becoming common. From T-shirt printing to mug designs with customer names on it, this trend is here to stay. Mobile communications will also become a pillar for marketing.
Micro-business environment
A market environment represents the forces that affect how a business serves its customers. Various marketing environments have a direct effect on the trends organizations choose to adopt. A microenvironment typically represents all the external factors that affect the operations of a business. First, we have suppliers. (Aashish, 2019) Most businesses must have suppliers who provide it with resources and machinery to ensure its proper running. Besides that, we also have market intermediaries who act as links between the company and its customers through distribution. Perhaps the most important element of the micro-environment is the competitors, who target similar consumers as those of your organization.
Macro-environment
Macro-environment represents all the components of the external business that have a direct effect on the industry and market but indirectly affect the business. It consists of major key players. To begin with, we have the general population factors such as size, density, and race. This is an important aspect that every business should take into consideration before launching any product or service. Next, we have economic factors, and this represents the buying power and spending behavior of the market. Many other elements make up a micro-environment and this includes other natural factors such as climate, availability of water, and many more.
Marketing Mix Elements
As a business owner, your goal is to maximize profits while avoiding any loss as much as possible. No business wants to spend a large amount of capital on marketing efforts that bear no fruits. It is this logical perspective that gives a bath to the marketing mix. The marketing mix simply refers to all the necessary steps taken to ensure you deliver the right product in front of the right customers at the right place. This is a very important aspect that should be carefully looked into, as it helps business understand their product or service, and how they plan to deliver it. The marketing mix constitutes what is referred to as the 4Ps, including:
Product
A product represents a tangible good or an intangible service that a business expects to offer to a specified market. Products often undergo various life cycles such as the production and assembly for physical goods. Any products should meet a specific need in the market. Unique selling points are also significant aspects that help differentiate your value proposition from that of your competitors. The choice of product can be the reason for either success or failure of a company. Therefore, businesses should spend time trying to outline the benefits, features, and problems solved by their product. Buyers of the product also need to be identified, and their interests taken into consideration.
Price
Price generally means the amount the end-user is expected to pay for the product. The price of any commodity is linked to its perceived value. Transactions occur when the perceived value of a product is higher than the price. The business should consider this, as an overpriced product might not sell as much as it was expected. (Martin, 2014) Likewise, a lower-priced product may also face difficulties in selling. Therefore, any business should work on the proper pricing of their products before they are launched into the market.
Place (Distribution)
Once a product has been developed, it is now time to place it in front of the right buyers. Distribution methods vary widely, from the different modes of transportation to distributors who ensure the products arrive safely to the customers. This proper flow of goods is equally important such that it prevents goods from expiring or going bad. All the activities involved in the distribution of goods using different channels make up this element of the marketing mix.
Promotion
Communication and linking between a buyer and the seller takes place within this component of the marketing mix. Promotion represents all the seller-initiated efforts that are meant to persuade the buyer into making purchase decisions. (Chand, 2019) Businesses use different approaches to reach their customers depending on the nature of the industries they operate in. While many may take to offline marketing, many have realized the importance of digital marketing and are beginning to use it in most of their marketing campaigns. It is this element that allows them to scale, as well as find ways to build customer trust and retention.
Market Segmentation
Market segmentation involves the process of dividing your target market into smaller but defined categories. This method is effective by the fact that it labels customers and buyers with their interests, allowing you to create target campaigns that easily relate and convert them. Resources are very important within the organization, and market segmentation allows a business to properly manage them in trying to reach qualified buyers. (Jennifer, 2020) Under this, we have different methods used in segmenting markets.
Demographic
Demographic segmentation is quickly becoming popular in marketing campaigns. It involves assigning a statistical figure to a particular group based on gender, age, income, and ethnicity. When running a marketing campaign, you need to be aware of the number of people you are targeting, and how many are likely to convert into customers. For instance, a car marketing company such as Rolls Royce will target males with a relatively higher income. On the other hand, a company that sells marketing software will most likely target 1000+ managers of different companies.
Psychographic
This type of segmentation allows customers to be categorized with criteria relating to their characteristics and personalities. It involves anything to do with personal values, traits, lifestyle, and interests. Marketing is usually effective whenever all advertisements are well-targeted, to avoid wastage of financial capital. For instance, the Rolls Royce, a luxury company may target customers who emphasize quality and status. Likewise, the marketing software company will most likely target managers who are motivated to push their businesses forward.
Behavioral segments
This type of segmentation seeks to target customers depending on how they act. This might include purchasing habits, status, and brand interactions. (Hannah, 2019) People are more likely to buy on impulse when they are happy, and that is why social media marketing has grown fast. Impulse buying is just one behavior that can be used to segment customers. The luxury company we mentioned before may choose to target customers who have purchased a high-end vehicle within the past 2 years. Elsewhere, the company that sells software may target people who have signed up for their free webinars or something related.
Geographic segmentation
It involve...