When is digital marketing used?
1. Definition of terms The term digital marketing comprises the planning, implementation and control of all marketing tasks using digital, i.e. computer-based systems or tools. The made-up word "digital marketing" is a collective term that summarizes a large number of different tasks, instruments and methods in marketing with reference to the common tool, the digital technology used. The discipline as a cross-sectional function between digital technology and marketing application requires knowledge, processes and methods from both worlds for optimal use.
2. Structuring the object of knowledge The differentiated presentation of digital marketing in its structure and its objectives shows the different facets of the term. As a cross-sectional function, digital marketing supports all levels, functions and processes of marketing with the help of digital technology. The digitization of marketing processes can be viewed structurally differentiated depending on the area of application:
(1) Digital marketing according to the area of activity: digital marketing with an inward-looking effect and digital marketing with an external effect.
(2) Digital marketing according to the different markets: digital marketing on sales markets and digital marketing e.g. on procurement or personnel markets.
(3) Digital marketing in the phases of the marketing process: digital marketing planning (strategy), digital marketing conception, digitization of marketing implementation and marketing controlling.
(4) Digital marketing when using the individual marketing instruments: in market research, product policy, distribution policy, price policy and communication policy.
(5) Digital marketing against the background of business and marketing-oriented objectives: marketing information, marketing automation, marketing decision support. The degree of digitization of the individual application areas can take the following forms:
(1) The complete support of marketing tasks through digital marketing systems (e.g. data warehouse, OLAP).
(2) The support or replacement of traditional marketing tasks with digital marketing systems (e.g. e-commerce in the area of distribution).
(3) The redefinition of marketing tasks using digital systems such as data mining.
3. Target dimensions of digital marketing As diverse as the approaches to structuring digital marketing are, the objectives pursued with digital marketing can be just as different:
(1) Digital marketing to simplify processes or to make data (quantities) manageable, e.g. in the field of marketing automation or data-based marketing.
(2) Digital marketing to improve the quality and quantity of the required and available information (e.g. data warehouse, data mining).
(3) Digital marketing to exploit cost-saving potential (e.g. computer aided selling, e-commerce).
(4) Digital marketing as a way of tapping new market potential by using marketing policy instruments in a more targeted manner and addressing market segments that were previously unprofitable or unattainable.
(5) Digital marketing to accelerate marketing and business processes, e.g. in computer-aided market research or in management information systems.
(6) Digital marketing to create integrated systems that enable greater transparency of market and company data.
(7) Digital marketing as a maxim, method and means on digital marketplaces.
4. Digital Marketing Technologies For marketing applications, it is irrelevant to differentiate between hardware and software when looking at the individual solutions. In the present context, the problem-solving skills of the individual applications are important, be they primarily hardware or software-based. Computer-based systems are available for a wide range of applications in marketing, e.g. computer-controlled order monitoring, telephone marketing, multimedia communication instruments, digital sales channels (e.g. e-commerce), sales force control, sales forecast / market research, integrated merchandise management systems, marketing information systems, decision support systems and much more individual applications are classified into the following categories as part of the marketing management process:
(1) Systems for recording marketing data or market data, e.g. mobile recording devices for market researchers in the field, digital cameras for recording customer reactions, apparatus-based measurement methods e.g. for measuring advertising impact, CRM systems for recording customer data and the customer life cycle. In addition to sensor technology for measuring test subject / customer reactions, storage capacities and recording options as well as data transmission and data transfer capabilities play a major role here.
(2) Systems for the further processing and joint processing of marketing data. The simplest and most common systems are the widely used Office programs (Office application). In this context, however, the DTP programs should also be mentioned, which are also used to visualize and disseminate the marketing data. Common groupware systems offer shared access, e.g. to customer data, for all marketing employees. Document and workflow management systems standardize the work process in marketing. Special programs, e.g. to ensure address quality (duplicate filtering, data enrichment / completion, etc.) are usually used to process customer data.
(3) Systems for processing marketing data. A very important requirement in this context is the customer database or the CRM system. The customer data is very often the basis on which the further processing processes in marketing are based. An example of the further processing of marketing data is e.g. direct marketing. But data mining is also based on the further processing of marketing data, e.g. from the cash register systems.
(4) Systems for storing and evaluating marketing data. The primary medium for storing marketing data are databases, which in this use case can be referred to as marketing databases. These can be customer and product databases, for example. Central tasks of the marketing databases are the storage of marketing data from different sources, the making the central database available for all relevant users, the permanent availability of the information, the linking of the information depending on the question and the simple handling of the information retrieval or the further processing of information. Applications that primarily support the evaluation of marketing data are statistical software packages that are primarily used in market research. However, business intelligence systems are being used more and more frequently, linking the marketing data with various other data sources and enabling advanced knowledge through elaborate analyzes.
(5) Marketing Decision Support Systems. In marketing there are a number of information systems that can be found under the following terms: management information systems, marketing information systems, sales information systems, customer information systems or computer-aided selling.
(6) End customer systems in marketing communication and sales. There are a wide variety of end customer systems that are used either for the purpose of presenting goods and companies or for direct sales. The most innovative computer-aided systems are summarized today under the catchphrase multimedia
5. Internal sources of information in digital marketing If you look at digital marketing in terms of the organizational units in the company, you can see that almost all areas of the company are affected by digitization processes and provide information for digital marketing or obtain information from digital marketing. Here are some example applications:
(1) Marketing & Sales: Product information on CD-ROM or for online stores, press information on the Internet, digital product catalogs, price list updates, order processing in integrated systems, online promotion, virtual trade fairs, database for marketing information systems.
(2) Market research: Ongoing competition monitoring on the Internet, systematic customer data analysis, online surveys, user tracking on the Internet, CATI, digital secondary market research.
(3) Administration: Archives of company data e.g. financial accounting, controlling with the help of computer-based systems, digital project calculations, online project planning and monitoring, integrated order processing.
(4) Procurement: online order forms, digital order monitoring, computer-aided supplier and product management, electronic tenders.
(5) Research & Development: CAD data, development libraries, simultaneous engineering, virtual project teams, technical documentation.
(5) Production: warehouse management, availability check, production control, order tracking, production data acquisition, production planning and control (PPS).
(6) Customer service: online problem reporting, remote troubleshooting, maintenance and diagnosis via network, complaint management / customer care, trouble-shooting database
(7) Human resources: Online job information and application, electronic personnel files, eLearning, computer-based suggestion system, employee information on the intranet.
6. Areas of application of digital marketing in the context of marketing policy If you select a sub-area of digital marketing and consider the possible applications there, it quickly becomes apparent how broad the support, substitution and innovation potentials through digital marketing are. In the following, exemplary applications in the individual marketing disciplines are to be listed:
(1) Market / marketing research: computer-aided surveys, online market research, online panels, expert focus groups online, computer-aided forecasting systems.
(2) Product policy: Virtual networked product development teams, rapid prototyping, computer-aided design, computer-aided analysis of the program structure, computer-aided diagnosis and maintenance systems.
(3) Sales policy: computer-aided inventory management systems, computer-aided selling, computer-aided logistics control and delivery planning, packaging tracking, teleshopping, e-commerce.
(4) Contracting policy: computer-aided pricing models and pricing strategy simulation, simulations for price differentiation models and discount models, online credit calculator.
(5) Communication policy: computer-aided determination of the advertising budget, programs for media planning, direct advertising campaigns, online advertising, information terminals, data-based marketing, company-wide knowledge databases for customer care.
(6) General marketing mix: customer databases, product databases, business games / marketing simulations. Note For the related areas of knowledge, see Business Intelligence, Customer Relationship Management (CRM), Data Warehouse, E-Commerce, Electronic Procurement, ERP Systems (Enterprise Resource Planning Systems), Commercial Management, International Marketing, Internet Communication Policy, Communication Policy, Marketing , Basics, market research, media economics, mobile commerce, multi-channel dialogue marketing, process management, sales policy, sales channels, newer, workflow management.
Literature: Theobald, Elke: Digitales Marketing. - In: Poth, L. (Ed.): Loseblattwerk Marketing, Luchterhand Verlag, Neuwied, December 2000, pp. 1 - 70. Schulmeyer, Christian; Theobald, Elke: Strategic Brand Management on the Internet - E-Branding: Brands on the Net. - In: Gaiser, Brigitte; Linxweiler, Richard et al. (Ed.) Practice-oriented brand management. New strategies, innovative tools and current case studies. Gabler Verlag 2005, pp. 387-401; Merz, M: Electronic Commerce. Market models, applications and technologies, Heidelberg 1999; Mülder, W .; Weis, C .: Computer-integrated Marketing, Ludwigshafen 1996; Pispers, R .; Riehl, S .: Digital Marketing. Functionality, possible uses and success factors of multimedia systems, Bonn 1997.
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