Traditional to Conventional 1 Running head: TRADITIONAL TO CONVENTIONAL

Marketing Communication in a Virtually New World: From Traditional to Conventional Kristal M. Pfeiffer East Carolina University

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Introduction In the past, business professionals have succeeded by relying on traditional marketing concepts to connect with consumers (Ionita, 2012). However, due to the rapid evolution of technology and Web 2.0, there is a new era of communication. The basic marketing model is no longer an effective strategy for reaching todays audience (Hongcharu and Eiamkanchanalai, 2009). The majority of technological growth has taken place over the last few years, superseding the progress that most experts predicted (Melancon, 2011). This time compression forces businesses to make drastic changes in attempt to survive in the market industry today and prosper tomorrow. This poses the question: How can businesses effectively communicate to the present-day and future market? The purpose of this paper is to examine how businesses are redefining their customers, remodeling their organizational structure, and revising their communication methods to reach their target audience (Leonido, Barnes, Spyropoulou and Katsikeas, 2009).

Targeting a New Generation Machlouzarides (2010) conducted a study on highly competitive business environments and found that e-marketing has given birth to a generation of new customers. This generation prefers the user-friendly advantages of communicating through the internet, forcing businesses to rethink their marketing strategies (Rosen and Phillips, 2011). Traditionally, businesses would select their target market based on demographics (gender, age, race, etc.), then create a product to appeal to this group of people. Before the invention of Web 2.0, marketing communication was through a one-way, traditional media channel (such as magazines and television commercials) that only allowed the businesses to send a message to the receiver. However, the evolution of the internet forces businesses to adapt to the communication preferences of the public, using multiple, two-way channels. Businesses are now reversing the traditional strategy by first inventing a product, then virtually marketing it to the consumer (Aremu and Bamidori,

Traditional to Conventional 3 2012). Jamehshooran and Heydari (2011) identify that marketing now works best in the virtual world by the following sequence: Creating the product Targeting the appropriate audience Advertising through modern media channels using appealing design.

McPherson, et al. (2006), as sited by Sinhav (2011), claimed this reversal is due to the Homophily Principle. This theory states that virtual groups are already connected by similar interests (Sinhav, 2011). Thus, when businesses attempt to redefine the target market, they are discovering that the groups of virtual consumers are already defined.

The Modern Marketing Model Todays businesses must not only redefine their target audience, but they must also change their organizational structure. Marketing professionals must learn to navigate through a virtual world, forcing them to break the mold of the traditional marketing model that was created when these technologies did not exist. Companies must first reevaluate the individuals that make-up the company structure. Web 2.0 and other advancements require professionals with the ability to be both technically skilled and creatively adept (Gratton, 2010). The employee must stay updated with the latest trends and technology in order to be an effective as a marketing professional. To succeed in the virtual world, employees must have the know-how of modern technology and use these tools to create marketing material that is appealing to the audience. Some of these major trends are: Search engine marketing (website advertising through search engine results), search engine optimization (increasing the frequency that websites are advertised through search engine marketing), display advertising (banner ads on specific websites), email marketing (sending advertising messages through email), content marketing (creating free material on the internet for people with a common interest), and mobile advertising (marketing on a mobile device such as a cell phone), and virtual world marketing (Wikipedia, 2012).

Traditional to Conventional 4 Channels of Communication As discussed earlier, businesses must restructure their communication methods to effectively communicate in a virtual world. Hongcharu and Eiamkanchanalai (2009) point-out the major change from traditional marketing to todays conventional marketing: Multiple channels of two-way communication. The process takes place through various channels such as: Twitter, Facebook, blogs, and virtual worlds (Rosen and Phillips, 2011). Hongcharu and Eiamkanchanalai (2009) identify the major advantage of these channels is that the interaction that allows consumers to communicate to the businesses. This communication strengthens the business-client relationship, meanwhile building trust and consumer loyalty to the brand (Hongcharu and Eiamkanchanalai, 2009). The virtual worlds have been around for several years as a form of socialization and entertainment through programs like Second Life, World of Warcraft, and Sim City (Melancon, 2011). Studies have shown that virtual worlds may be the key to accurately predicting the best marketing practices (Harris and Rae, 2010). Businesses can test products by testing their success in virtual markets. This method not only provides businesses communication to a virtual target market, but it also creates (1) growth in revenues, (2) future marketing knowledge and a competitive advantage, and (3) brand-building before actually entering the physical world (Melancon, 2011). Machlouzarides (2010) study of virtual marketing concluded that when businesses applied old-fashioned principles to the modern-day marketing model, they achieved the most success in customer communication and satisfaction. For example, customers are more linked than ever through social circles such as Twitter and Facebook. This creates a viral, word-ofmouth phenomenon. One customer comment about a product travels through an infinite virtual network, leaving a permanent mark on the reputation of a business. Jamehshooran, Danesh, and Heydari (2011) refer to this permanence as a business relationship that is always on (p. 583). Clark (2010) also recognizes the scope of the modern-day word-of-mouth when she points-out that to be effective in the marketing industry today, you must integrate traditional methods through electronic communicating. Clark (2010) further concludes a successful business image is formed through a combination of expertise and maintaining a positive image through connectedness (p. 8).

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Conclusion and Future Assumptions of Virtual Marketing Web 2.0 is the modern-day Frankenstein that shocked experts with its rapid pace and unpredictable scope of creation. This progress left the marketing industry in limbo, searching for ways to redefine the target market, restructure their business model, and adapt to the multiple, two-way channels of communication. Studies indicate that testing products in virtual worlds may be the key to accurately predicting the future. Gabish (2011) conducted a study to examine the success of marketing specific brand products in the virtual world as a means to predict results in the real world. The study indicated that the ratio of the product success in a virtual world is parallel to the products success in the real world (Belei, Noteborn, and Rutyer, 2011). Hassouneh and Brengman (2011) found that over 100 companies, such as IBM and Toyota, already test their products in the virtual worlds. In Second Life, for example, virtual users were monopolizing the real estate market by buying out and reselling the territories at inflated prices (Melancon, 2011). This scenario spiked the interest of Coldwell Banker, who set-up a virtual business and began selling real estate for Second Life Residents (Melancon, 2011). Within two months, the Caldwell Banker virtual real estate company had 60,000 visitors in this computer generated world through virtual word-of mouth (Melancon, 2011). Caldwell Banker then used the virtual world word-of-mouth to market real-life real estate. With an unpredictable future in the workplace, companies and individuals are placing more value on overall and individual work ethic. Competition between companies is fierce, causing them to demand more from their employees. Businesses not only expect the employees to master a broad skillset and be technically advanced, but they also expect a die-hard work ethic and the ability to work independently and lead others (Kempster and Cope, 2009). Since the public is fighting for jobs in this economy, professionals are not only giving in to these unrealistic expectations, but they are going above and beyond to stand-out of the crowd (Gratton, 2010). Unfortunately, employers will use this situation to take advantage of employees (Gratton 2010). Gratton (2010) refers to some of these changes as contested aspects (p.19). Not only will individuals feel the pressure to sacrifice their promised paid holidays and sick days to keep

Traditional to Conventional 6 their career, but companies will commit acts that are against the law and morally wrong. Gratton (2010) refers to this treatment as what she calls contested aspects of the future (p.19). She further predicts that companies will adopt policies and procedures that have not been tested, possibly compromising employee safety and treating employees in a way that is unconstitutional (Gratton, 2010). Ashtan (2010) also discusses this problem, concluding that these professionals will be required to work in inadequate environments with no quality of life because the new workforce has a no-policy structure. According to an internal marketing study conducted by Gounaris, Vassilikopoulou, and Chatzipanagiotou (2010), taking advantage of employees will only negatively affect a businesss ability to satisfy customers. To succeed in satisfying the customer, businesses must adopt a market orientation (philosophy that you must meet both the obvious and hidden needs of the consumer) and an internal market orientation (philosophy that you must meet the obvious and hidden needs of the employee) (Gounaris, Vassilikopoulou, and Chatzipanagiotou, 2010). The shocking progress of technology and Web 2.0 has humbled experts and caused them to be insecure in making predictions for the virtual future of business. However, these experts did have one revelation: The future of the internet is virtually unpredictable- there are only assumptions.

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