Page 261 - Foundations of Marketing

228 Part 3 | Customer Behavior and E-Marketing

Since the 1990s, the Internet and information technology have dramatically changed the
marketing environment and the strategies that are necessary for marketing success. Digital
media have created exciting opportunities for companies to target specific markets more
effectively, develop new marketing strategies, and gather more information about custom-
ers. Using digital media channels, marketers are able to analyze and address consumer
needs better.
One of the defi ning characteristics of information technology in the 21 st century is accel-
erating change. New systems and applications advance so rapidly that a chapter on this topic
has to strain to incorporate the possibilities of the future. For example, when Google fi rst
arrived on the scene in 1998, a number of search engines were fi ghting for dominance. Google,
with its fast, easy-to-use format, soon became the number-one search engine. Today, Google
provides additional competition to many industries, including advertising, newspaper, mobile
phone services, book publishing, and social networking. As you can see, the environment for
marketing is changing rapidly based on these factors, as well as unknown future developments
within information technology.
In this chapter, we focus on digital marketing strategies, particularly new communication
channels such as social networks, and discuss how consumers are changing their information
searches and consumption behaviors to fi t with these emerging technologies and trends. Most
importantly, we analyze how marketers can use new media to their advantage to better connect
with consumers, gather more information about their target markets, and convert this informa-
tion into successful marketing strategies.

LO 1 . Describe the growths and GROWTH AND BENEFITS OF
benefits of digital marketing.
DIGITAL MARKETING

Before we move on, we must first provide a definition of digital media. Digital media
are electronic media that function using digital codes—when we refer to digital media, we
are referring to media available via computers, mobile devices, and other digital devices that
have been released in recent years. A number of terms have been coined to describe marketing
activities on the Internet. Digital marketing uses all digital media, including the Internet and
mobile and interactive channels, to develop communication and exchanges with customers.
In this chapter, we focus on how the Internet relates to all aspects of marketing, including
digital media Electronic media
that function using digital strategic planning. Thus, we use the term electronic marketing , or e-marketing , to refer to
codes; when we refer to digital the strategic process of distributing, promoting, and pricing products, and discovering the
media, we are referring to media desires of customers using digital media and digital marketing. Our definition of e-marketing
available via computers, cellular goes beyond the Internet and also includes mobile phones, banner ads, digital outdoor market-
phones, smartphones, and other ing, and social networks.
digital devices that have been The phenomenal growth of the Internet has provided unprecedented opportunities for
released in recent years marketers to forge interactive relationships with consumers. As the Internet and digital com-
digital marketing Uses all munication technologies have advanced, they have made it possible to target markets more
digital media, including the precisely and reach markets that were previously inaccessible. As the world of digital media
Internet and mobile and continues to develop, Internet marketing has been integrated into strategies that include all
interactive channels, to develop digital media, including television advertising and other mobile and interactive media that do
communication and exchanges
with customers not use the Internet (advertising media are discussed in detail in Chapter 16 ). In fact, market-
ers are using the term digital marketing as a catch-all for capturing all digital channels for
electronic marketing reaching customers. This area is evolving quickly, and the digital world is still in an early stage
(e-marketing) The strategic 2
process of distributing, of integration into marketing strategy.
promoting, and pricing products, One of the most important benefits of e-marketing is the ability of marketers and custom-
and discovering the desires of ers to share information. Through websites, social networks, and other digital media, con-
customers using digital media sumers can learn about everything they consume and use in life. As a result, the Internet is
and digital marketing changing the way marketers communicate and develop relationships. Today’s marketers can

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