Marketing Theory

‘’ Digital Technology's Effect on Marketing

Views’’

International economy and business

Thanaphone Kittiyavong

NEPTUN: Y80PSO
Table of Contents
Abstract ................................................................................................................ 2

I. Introduction ................................................................................................... 3

1. An explanation of digital........................................................................ 4

2. The interruption of digital:.................................................................... 4

3. The digital revolution ............................................................................. 5

I. The term "Marketing" has changed........................................................... 6

II. Putting the marketing mix in a fresh light. .............................................. 10

III. Conclusion ................................................................................................... 12

References .......................................................................................................... 13

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Abstract

The emergence of digital technology has affected the business landscape, including the
collapse of print media, the decline of radio and television media, the delinking of retail
businesses, the growth of e-commerce businesses, the growth of streaming businesses, and
the spreading of COVID-19. Those have affected the marketing landscape in the way that the
marketing tools that marketers used to deliver brand value to consumers cannot be the same.
The change in consumer behaviour, the marketing trend, the marketing mix, and the
definition of marketing Strategies have changed the marketing landscape. Digital technology
has created new tools and concepts for marketing, such as vlogs, mobile marketing, search
engine marketing, omnichannel marketing, and big data analytics in marketing.

The spread of COVID-19 has also accelerated the shift towards digital marketing, as more
consumers have turned to online channels for shopping and entertainment. This has further
emphasized the need for marketers to adapt to new marketing trends, consumer behaviour,
and marketing strategies.

New tools and concepts such as Vlogs, Mobile marketing, Search Engine Marketing,
Omnichannel marketing, and Big Data Analytics in Marketing have emerged as a result of
digital technology, providing marketers with new ways to connect with consumers and create
personalized experiences. To better understand the target audience More successful
marketing campaigns must not be forgotten. where marketers can collect and analyze
resource-intensive data.

In summary, what are the key impacts of the digital technologies mentioned above, which
are both fun and opportunities for business marketers? forthcoming to prepare

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I. Introduction

Virtually every aspect of modern life has been transformed by digital technology. and how
businesses market their products and services. The growth of the internet and social media
has given marketers new ways to engage. in connection with the target demographic It has
also brought significant changes in how marketing is viewed and practiced. We'll take a
look at how digital technology affects marketing in this post. See how technology has
expanded and challenged traditional marketing practices. Let's take a look at the pros and
cons of digital marketing. and how digital marketing influences consumer behaviour and
expectations. And to succeed in this constantly changing environment, organizations must
be willing to adapt and change.
According to Schwab (2017), the business world is entering the fourth generation of
the industry as a result of the influence of digital technology, high-speed mobile internet,
and artificial intelligence. This change has transformed global society and the business
sector into the fourth era of industry, or The Fourth Industrial Revolution (4IR or Industry
4.0). Before it, the global marketplace and industry landscape known as In the following
order, there have been three industrial revolutions:

1. The first industrial revolution was characterized by the switch from manual labour-
intensive machinery to steam- and water-powered ones. This refers to the period
between 1760 and 1820, or 1840 in Europe and the United States because the
adoption of new technology took a long time (Cannadine et al., 1992).

2. The second industrial revolution, sometimes referred to as the technological

revolution, took place between 1871 and 1914 and was brought on by the
construction of massive railroad and telegraph networks that facilitated the faster
exchange of people, ideas, and electricity. Henry Ford's introduction of the belt
system into the manufacture of automobiles in 1913 was the major shift for this
period. Contributing to mass production is (Thehenryford.org, 2019).

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 3. After the two world wars, a slowdown in industrialization and technological
development compared to earlier eras led to the third industrial revolution, often
known as the digital revolution (Schwab, 2017).

4. The current era is poised to experience the Fourth Industrial Revolution, which
was brought about by the combination of gadgets and network communication in a
cyber-physical system under four innovations: 1) Computer intelligence 2) Use of
clouds 3) Mobile high-speed internet Internet of Things (No. 4) 2018: p. 18
(Bumrerb and Nakkasem).

In addition to the current business sector entering the fourth period of the industry,
the worldwide Covid 19 outbreak has acted as a catalyst for a shift in how businesses
are conducted. In particular, the steps to combat the COVID-19 outbreak are more
motivating to change the business model, such as restricting access to retail stores,
forgoing meal service in restaurants, and suspending the ability to watch movies in
theatres. Businesses have been inspired to respond by increasing their use of digital
technology, even before the COVID-19 outbreak reporting tool.

1. An explanation of digital
Digital often refers to something that shows whether a signal is
present or absent using discrete digits, frequently binary digits or recording or
storing information as a series of the numbers 1 and 0. (Cambridge Dictionary,
2020).

2. The interruption of digital :

Oxford College of Marketing (2012) explains the process of digital
technology disrupting the business sector as digital technology is gradually
changing the world of business, there will be many new sectors emerging from
the masters and there will be many businesses that will soon disappear from
the market due to the advent of digital technology. digital technology as well.

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 Kodak is a company that has failed due to the rise in popularity of digital
cameras and smartphones, which provide consumers with greater convenience
when taking pictures than film cameras do. Netflix is another company that
has benefited from digital technology. It offers material streaming that is more
convenient for customers in terms of time and place than seeing a typical
movie in a theatre, a regular television series, or even renting movies from
typical video rental shops.

3. The digital revolution

From the traditional commercial era to the marketing rivalry era in the
1960s to the social marketing age in the 1990s, to the early 2000s online
marketing era, to the present, under the flowering of Artificial intelligence,
Cloud computing, High-speed Mobile internet, and the Internet of Things. The
result is a more individualized society. However, it also seems that people
require human contact and connection. as demonstrated by the expansion of
social media. The following three scenarios are summarized by Kotler,
Kartajaya, and Setiawan (2017) as alterations to the market's landscape. Kotler,
Kartajaya, and Setiawan's (2017) summary of how the market landscape will
alter in the following three contexts.

1) From exclusive to inclusive, in the past, marketers frequently relied on

marketing concepts from the United States and European nations to apply to
the markets of other countries, but the economic might of China with large
market size of more than 1.39 billion people from a total of 7.53 billion people
in the world created a huge consumption and spending that caused other
trading partners like Southeast Asia to have a better economic number A
combination of a widening economic crisis in Europe and a sluggish market in
the United States. Especially in the retail and entertainment sectors. This led to
imports of goods and services from Asia to both continents. This can be seen
from the expansion of Alibaba. Groups and trends of Korean products and

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 entertainment media ("Korean wave") is becoming increasingly popular in the
United States and Europe.
2) The size and prestige of brands from big firms may come under increasing
horizontal and vertical pressure from smaller businesses. As an example,
consider Xiaomi or One Plus, which sells knockoffs of popular products
that are just entering the market but have identical features and a lower
price tag than their rivals. Another example was a dating app like Tinder,
which initially entered the market later than other dating applications but
quickly became the most popular app with users (Theverge, 2017) Artificial
intelligence (AI) was used to evaluate The digital data of customer
behaviour and sell to consumers' true requirements. Force Facebook to
compete with that Tinder market conqueror. Expanding the number of
dating features in its products would help it maintain market share on
social media platforms.

3) From being popular in small groups to being a member of society's

mainstream, or from individual to social. A case study of the Snail White
product, which achieved enormous popularity through word of mouth on
social media sites like Facebook, has focused on a Chinese social media
platform such as QQ and Weibo thanks to the sensational term "Netzen."
Due to the product's Internet popularity, it saw an abnormally large volume
of sales in a short period before becoming a commonplace item and
returning to the market in its country of origin, such as Thailand.

I. The term "Marketing" has changed.

The meaning of the word marketing has been defined by many scholars and
organizations. But the most accepted and understood is the definition of marketing
by the American Marketing Association (AMA). In July 2013, the American
Marketing Association changed that. The definition of marketing from the original
definition was in October 2008. Marketing is an organization's function and set of

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processes to create, communicate and deliver value to customers and for managing
customer relationships in ways that benefit the organization and its stakeholders
(the American Marketing Association, 2007). The market is a series of activities. It
is an institutional framework and process for creating, communicating, delivering,
and exchanging value propositions for clients, clients, partners, and society at large
(the American Marketing Association, 2013).

A fresh look at Marketing

From the production concept era to the product concept era to the sales concept
era, to the marketing concept era, to the social marketing concept era, to the
holistic marketing concept era -2000s (Kotler & Keller, 2014, p. 54) Until now,
digital technology has changed the perspective of marketing along with
creating new marketing tools based on digital technology as follows:

Vlog: A video blog, often known as a video log, is a sort of blog where the majority
or all of the content is in video format. Making a video of yourself talking about a
certain topic, such as reporting on or evaluating a product or event, constitutes a
vlog post. Currently, marketers frequently employ vloggers to provide brand
experiences for them in the form of client testimonials, experiences and
recommendations from customers, as well as covert advertisements in the form of
advertorials.

Mobile advertising: People's behaviour and lifestyles are changing as they spend
more time on smartphones and less time using personal computers, which
increases their understanding of and trust in mobile transactions. Many business
owners have started to adjust by making their websites more mobile-friendly. A
marketer should concentrate on producing applications that honestly suit consumer
wants because specific applications have been created to meet the needs of
consumers who use more mobile phones (Bumrerb, 2014). According to Teo et

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alstudy .'s (2015, pp. 42–58), which investigated the benefits of convenience and
speed in mobile payments, smartphone usability had no discernible influence on
consumers' mobile commerce purchase decisions at the 0.05 level. had a
statistically significant impact on mobile phone purchase decisions at the 0.05
level. A specific set of persons who have made a purchase on a commercial mobile
only significantly statistical significance at the 0.05 level will be influenced by
their satisfaction in their decision to buy. This is in line with Kongrat's research
(2018), which examined the marketing mix elements that influence the online
buying habits of working individuals in the province of Nonthaburi. Online
shopping for goods is convenient. There are 55 million mobile internet users
worldwide, or 69.43% of Thailand's population, according to data from an Office
of Electronic Transactions (2020) assessment of Internet users in the year 2562. A
mobile purchase of an internet product is depicted in Figure 1 (Marketingoops,
2020). Based on this data, marketers must prioritize using mobile marketing
channels by modifying and creating a marketing communication strategy that is
appropriate for displaying on the phone's screen and conveying brand value.
system.

A multichannel strategy: The meaning of Integrated Marketing Channel or Omni

Channel is derived from the combination of two words, Omni, which is derived
from the Latin word Omnibus, which means "for all" or all, and the word

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"channel", which means Omni Channel. Indeed, omnichannel integration has led
to the evolution of omnichannel retail to create a positive consumer experience
across all possible sales channels (Wahnism, 2018). According to research by Liu,
Lobschat, and Verhoef (2018) that looked at the multichannel retailing agenda in
the merchandising of UK retailers selling through various types of marketing
channels and levels found that merchants using integrated marketing channels had
87% more opportunity to sell compared to a retail store that does not use integrated
marketing channels. In addition, according to Bumrerb's (2019) study of advice for
developing a channel of distribution case study: Customers who viewed the
products of community companies (Punnika Decoupage) in Bangphli did not
purchase anything from them, according to research conducted by the majority of
them went back to the store to place orders for goods f rom neighbourhood
businesses (Punnika Decoupage) via various online platforms including Facebook
and Instagram.

Search engine marketing: is the practice of advertising through search engines

like Google, Bing, Yahoo, and others. Two things make up search engine
marketing: 1. Paying for top-of-the-page search engine advertising (AdWords’)
will pay off when you click the ad. 2. Making use of marketing instruments to
raise the natural search ranks of your website. Contrary to the factors that
determine the top search engine ranking. Search engine marketing is not limited
by search keywords. presented as an advertisement Pay only when customers click
on ads. visible only for There is a time limit and no minimum time to market.

Search engine marketing (SEM): Search engine marketing is advertising carried

out through search engines like Google, Bing, Yahoo, and others. Two aspects of
search engine marketing are: 1. Paid Search Engine Advertising (Adwords) Pays
when you click on an advertisement. 2. Make use of marketing techniques to
improve your website's organic search ranking. Search engine marketing is not just
about search keywords, in contrast to search engine rankings. Displayed as an
advertisement Pay only when users click your advertisements. Show only what is
requested A minimum time to market is not required either.

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 big data analytics in marketing: The practice of examining the most connected
patterns of data sets is known as big data analytics in marketing. The data gathered
through the analytical process will be used in marketing, for example, to predict
market trends. Customer needs to categorize customers and forecast their
behaviour. The success of Amazon Prime, an exclusive program for paying
Amazon members, illustrates how marketing big data analytics may be utilized to
forecast consumer preferences to obtain a competitive advantage versus other
competitors in the market. Using machine learning, we can assure customers that
their orders will arrive within two hours and with no minimums. A point
accumulation mechanism is also present. Low-stock notifications with incentives
via Alexa, the company's AI. Besides Big Data Analytics in E-Commerce: A
Review, Akter (2016). According to Amazon, Dell, Tesco, and Netflix's Systematic
Review and Agenda for Future Research, businesses that offer large datasets
experienced a 9.8% rise in business growth. To analyze large marketing databases,
Amazon specifically blends artificial intelligence, marketers, and machine
learning. Compared to not employing big data analytics in marketing, corporate
earnings rose by 56%.

II. Putting the marketing mix in a fresh light.

The idea behind the marketing mix dates back to James Culliton (1948), who wrote in
his book "The Management of Marketing Expenses" that several forms of marketing must
be used to achieve a certain marketing target. The theory was still in use in the 1940s, and
1964, American Marketing Association president Neil H. Borden's publi shed it in the
Journal of Advertising Research under the name "Marketing Mix" (Borden's, 1964, pp. 2–
7). advertising mix refers to the following list of marketing methods that were employed to
meet marketing goals (Kotler & Keller, 2016, p. 32): (McCarthy,1964).

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In the digital age with evolving technology and context, the marketing mix includes:

1. Product
2. Pricing
3. Location
4. Promotion.

1. Items that have been converted Experience is the capacity to convey the unique demands
of each consumer, to satisfy those needs as fully as possible, and to surpass the expectations
of consumers with precise forecasts generated from the brand by employing big data
analytics in marketing (Kannana & Li, 2017, p.4). Marketers should be able to modify their
marketing tactics by incorporating artificial intelligence into their work to develop plans
that give a brand experience that as closely as possible satisfies and/or exceeds consumer
expectations.

2. Price changed to Exchange, which invites customers to participate in product and

product design by sharing their experiences through product and product design, attitude,
and faith, as well as the relationship developed between the brand and consumers through
the online community, forming a tribe of people who share a common belief in the brand,
similar to brand tribalism (Poulou, 2019). by utilizing social media as a forum for brands
and customers to exchange brand experiences. Marketers must adjust to this brand -new
environment.

3. Location switch Customers can access goods and services from all channels through
integrated marketing platforms, including websites, mobile applications, and a variety of
permanent and transient stores (Poulou, 2019). By examining demand and preference data
from big data analysis, marketers should make adjustments based on experience and ease
of access to products so that customers may experience the ease of access to the best goods
and services.

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 4. Promotion has evolved into evangelism, which involves spreading brand concepts and
ideals via brand engagement in online activities, social network applications, and online
communities (Poulou, 2019). To bridge the waiting time between brands and customers
and to emphasize the significance of reacting to consumer engagement, marketers should
adapt by using digital technologies such as Chatbots and applying them to the propagation
of brand ideas for real-time consumption.

III. Conclusion

The employment of formats, methods, and marketing tools by practitioners to

communicate brand value to customers through marketing strategies has been disrupted
by digital technology, which hurts their ability to perform as well as they formerly did.
Digital technology's effects include the demise of print media, the fall of radio and
television, and the creation of new digital media types including vlogs, passive articles,
and mobile advertising. Because of the capabilities of digital technology, customers can
connect, and instantaneously express feelings about brands and experiences. Hence, to
give the most relevant and immediate brand equity and brand value to customers through
search engine marketing, marketers must adapt to working with artificial intelligence
systems. Big data analysis is used in this process. By comprehending the trends and
contrasts between online marketing and search engine marketing by the website and
mobile search engine with a kind of display mechanism that is entirely different, marketers
can react to the changing situation. Marketing professionals may design a strategy that
meets or exceeds customer expectations while also delivering a positive brand experience.

Digital technology has revolutionized the marketing industry, transforming the way
businesses promote and sell their products and services. In the past, marketing was

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 primarily done through traditional media channels such as television, radio, print, and
billboards. However, the rise of digital technology has led to a shift in marketing strategies
towards online platforms, social media, and other digital channels. One of the biggest
impacts of digital technology on marketing is the ability to target specific audiences with
greater precision. Digital marketing allows businesses to collect data on their customers'
behavior, interests, and preferences, and use this information to create highly targeted
advertising campaigns. This not only improves the effectiveness of marketing efforts but
also reduces costs by avoiding advertising to people who are unlikely to be interested in
the product or service. Another significant effect of digital technology on marketing is the
increased emphasis on content marketing. Businesses can now create and distribute
content such as blog posts, videos, and infographics to attract and engage their target
audience. This approach allows businesses to build relationships with customers by
providing value and demonstrating expertise, rather than simply promoting their products
or services. Additionally, digital technology has made it easier for businesses to measure
the effectiveness of their marketing efforts. With the use of analytics tools, businesses can
track the performance of their campaigns in real time, identifying what is working and
what needs improvement. This allows businesses to optimize their marketing strategies,
increasing their return on investment.

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