E-Business & Digital Marketing: Benefits, Characteristics & Strategies
E-Business: Utilizing the Internet for Business Goals
E-Business involves achieving business objectives through the effective use of the internet.
Digital Media
Digital media encompasses electronic formats that function using digital codes via computers, cellular phones, smartphones, and other digital devices.
Digital Marketing
Digital marketing utilizes all digital media, including the internet, mobile devices, and interactive channels, to develop communication and exchanges with customers.
Benefits of Digital Communication
- Forge relationships with consumers and business customers.
- Target markets more precisely.
- Reach previously inaccessible markets at home and around the world.
- Facilitate business transactions, allowing companies to network more effectively.
Characteristics of Digital Marketing
Addressability
Addressability is the ability of marketers to identify customers before they make a purchase. For example, Amazon uses cookies to identify users when they return to the website.
Interactivity
Interactivity is the ability of customers to express their needs and wants directly to the firm in response to its marketing communications. Texas Instruments interacts with its customers on its Facebook page by answering concerns and posting updates.
Accessibility
Accessibility is the ability for marketers to obtain digital information. Google uses web searches to learn about customer interests.
Connectivity
Connectivity is the ability for consumers to be connected with marketers and other consumers. The Avon Voices website encouraged singers to upload videos, which could be voted on by other users.
Control
Control is the customer’s ability to regulate the information they view, as well as the rate and exposure to that information. Consumers use Kayak to discover the best travel deals.
Digital Media Advantages
- Fast and inexpensive communication
- More interactive
- Easier comparison shopping
- Easier to conduct marketing research and advertise
- Lowers cost of communication
Product
Digital media connectivity creates opportunities to add services and benefits to products.
- Some products are only available digitally.
- Businesses can offer more online than in a retail store.
- The internet can make it easier to learn about and anticipate consumer needs.
Distribution
Making products available at the right time, at the right place, and in the right quantities.
- Processing orders electronically can reduce inefficiencies, cost, and redundancies.
- Can increase speed throughout the marketing channel.
- Shipping times and costs are important to customers.
Promotion
One of the best ways businesses can utilize digital media is for promotion purposes.
- Increasing brand awareness
- Connecting with consumers
- Forming relationships and generating positive publicity about products
- Allows consumers to read customer-generated content before making purchasing decisions
- Consumer consumption patterns are changing, and marketers must adapt promotion
Price
Digital marketing can enhance a product’s value by providing service, information, and convenience.
- Discounts and sales can be quickly communicated.
- Deals websites allow consumers to compare prices of products.
- Offer buying incentives like online coupons.
Social Technographics
Creators
Consumers who create their own media outlets, such as blogs, podcasts, consumer-generated videos, and wikis.
Conversationalists
Regularly update their Twitter feeds or status updates on social networking sites.
Critics
People who comment on blogs or post ratings and reviews on review websites.
Collectors
Collect information and organize content generated by critics and creators.
Joiners
Include all who become users of Twitter, Facebook, or other social networking sites.
Spectators
Read online information but do not join groups or post anywhere; they are the largest group in most countries.
Inactives
Online users who do not participate in any digital online media; their numbers are dwindling.