What is digital marketing?

what is digital marketing

Currently, digital marketing is becoming a trending issue in business world. Digital marketing can leverage business performance. Marketing can be defined as a science as well as an art related to the activity of exploring, creating, and delivering value with the aim of meeting the needs and providing satisfaction to the target market, which ends in creating profits for business units. Along with the development of the industrial revolution, the involvement of technology and digitalization in the economic and business sectors is inevitable.

In the era of the industrial revolution 1.0 in 1784 marked by the invention of the steam engine by James Watt has initiated the emergence of mechanical manufacturing production. It was continued in the industrial revolution 2.0 in 1870 where the manufacturing industry used electrical energy to mass produce. In 1969, the industrial revolution 3.0 began which was marked by computerization and automation in the industrial sector. We are now entering the industrial revolution 4.0 starting from the year of 2000. In this era, computer technology is increasingly developing towards robotics, artificial intelligence, and the use of big data.

In the business world, especially in the field of marketing, technological developments encourage the emergence of digitalization of marketing which involves the internet in the communication process either in the context of Business to Business (B2B), Business to Customer (B2C), or Government to Business (G2B). The role of the internet in this case is to integrate the roles and functions of several parties, so that there is a mutual relationship. Digitalization of marketing certainly makes it easy for businesspeople to communicate their products or services to the target market. Through digital marketing, businesses can reach a wider target market without the particular obstacles typically encountered in conventional marketing. In conventional marketing, businesspeople tend to focus only on meeting needs and satisfying customers, while in digital marketing businesspeople are encouraged to innovate more in creating added value through various services that utilize the internet and the latest technological developments.

Some of the advantages of digital marketing over conventional marketing include that the digital audience can be segmented appropriately. In addition, the message conveyed by businesspeople to the audience can easily be customized through digital media. Digitalization of marketing allows businesses to measure and assess customer response through online reviews, online ratings, market trends, and consumer insights. The existence of the internet and big data has an important role for businesspeople in the process of prediction, decision making, and setting business strategies. In general, it can be said that the benefits of digital marketing, among others, to facilitate marketing research, such as identifying consumer needs and desires. In addition, it also organizes additional channels for consumers, as the presence of digital media provides convenience for consumers to access information and make purchasing decisions on goods and services wherever and whenever they want. Some of these benefits are of course related to the efforts of businesspeople to increase satisfaction to customers. Technically, the usefulness of digital marketing can be measured through 5S’s:

  1. Sell, expand market reach and increase sales achievement.
  2. Serve, increase the added value of the service to the target market.
  3. Speak, communicate company goals and product and service information to the target market.
  4. Save, digitalization of marketing can reduce costs as business activities become more efficient.
  5. Sizzle offers a new proposition and improves the online customer experience.

Digital marketing in its application uses several approaches, namely: a) Think, related to business planning based on consumer insight, research, business concept development, budgeting, and channel planning to be used;  b) Create, related to the design and development activities of digital media (website, social media, mobile application, e-commerce, and so on), copywriting concepts, and the construction of integrated digital information systems;  c) Engage, which is related to business people’s efforts to increase customer attachment through traffic stimulation  (frequency of digital visits and searches), and build emotional relationships with customers, and d) Optimise, which seeks continuous improvement in every approach taken before to optimize business achievement. Strategically, digital marketing provides opportunities for businesses to penetrate the market and enable market development efforts, as well as diversify services.

For conventional businesspeople, the process of transformation towards digital marketing is certainly not as simple as just involving digital media in marketing activities. In the digital world, there are no barriers for businesspeople to enter the market (no barrier to entry). Even digital businesses offer a sleek organizational structure, making it efficient in a cost perspective and making it easier for new players to start businesses, especially for millennial entrepreneurs who are born as part of the growth of technology. This condition is realized or not has described the tight competition that exists in digital businesses, so that innovative, effective, and efficient resource management is the key to growing competitive advantages in a sustainable manner.

In the development of digital business, businesspeople are expected to be able to contribute to the growth of people’s digital literacy by presenting user-friendly digital platforms, providing accurate information, and developing trusted digital services. With a fun digital experience, this encourages its own appeal for new users to transform digitally.

Eduprenerer is a blog platform for sharing information on entrepreneurship, digital business, and start-up in universities or colleges environment.

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