Digital Marketing Has Replaced Traditional Marketing In Strategy Development.

1. 1
B9MK110 PERFORMANCE DRIVEN
MARKETING
Course Title: MBA Project Management
Module/Subject Title: Performance Driven Marketing.
Lecturer Name: Shaun Hayden.
Assignment Title: Assignment 1 – Critical Essay.
Student(s) Name & Number(s):
Chetan Padme (10393059)
Word count: 2702 (Under 3000 +/- 10 %)

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Index
INTRODUCTION ............................................................................................................................................ 3
MARKETING.................................................................................................................................................. 3
DIGITAL MARKETING.................................................................................................................................... 3
TRADITIONAL MARKETING........................................................................................................................... 4
MARKETING STRATEGY ................................................................................................................................ 5
TO WHAT EXTENT ORGANISATIONS ARE INCORPORATING OF DIGITAL MARKETING INTO STRATEGY
DEVELOPMENT............................................................................................................................................. 5
DIFFERENCE BETWEEN OMNICHANNEL AND MULTICHANNEL.................................................................... 7
CONCLUSION ................................................................................................................................................ 7
BIBLIOGRAPHY.............................................................................................................................................. 8

3. 3
Critically evaluate the proposition that ‘digital marketing has replaced traditional
marketing in strategy development’.
INTRODUCTION
21st century embarks the milestone of development of web technologies though it is out
there for a while now all have inculcated it in their lifestyles. Hence it has become a need
rather than just a luxury. And this has changed the basic habit of consumption of
information of human being which is mainly through the internet and digital medium
nowadays. But that doesn’t mean old methods are incapable which were limited to books,
news, magazine, advertisement, etc, Because of that competition between firms has
increases and key fact to stay relevant is to stay updated with technology. Hence major
challenges the organisations are facing with the trend & changed consumer consumption
habits. To address this change many organisations are incorporating the digital technologies
and using various tools and strategies to influence the clients and consumer. Organisations
have started to adapt & to find the balance between traditional marketing and digital
marketing when it comes to marketing to develop the strategies. And allotting a significant
budget for digital marketing so to secure the presence in this highly digital competitive
world (Mirzaei, et al., 2012). This essay points to examine the specified changes by assessing
whether digital marketing has replaced conventional marketing in strategy development.
With the help of marketing concepts and the support of case findings.
MARKETING
(Farrell & Pride, 2010) in their book defines marketing as the process of creating,
distributing, promoting and pricing goods, services and ideas to facilitate satisfying
exchange relationship with the customer and develop and maintain favourable relationship
with the stakeholder in a dynamic environment. The core being marketing, now it is now
being classified on the basis of an approach like traditional, digital, social, etc. considering
these revolution organizations are trying to adapt and be flexible & build a strong
relationship among the parties involved i.e. Stakeholders.
DIGITAL MARKETING
Digital marketing uses information and communication technology for the purpose of
marketing. In today's connected world marketing has become more targeted. Example of
digital marketing includes use of website, social media, application, YouTube videos &
banner ads. Usually, digital marketing is correlated with inbound marketing i.e., customers
are supposed to reach out. There are two types of strategies observed in the case of
organisations using inbound marketing first being they have given permission to customers
to communicate with them via the channel. And the dedication to listening & resolving the
problem of the consumer via the internet. In order to build a long-lasting association with
the customer hence channels are used by many organisation. Periodic strengthening of
organisations webpage and inline effective content for consumer needs and information.
And the development of tools to help the consumer who is already searching for something
on the organisation's website (Boppre, 2017) and help to reach there via search engine
optimization.

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Following are some example of organisations which are implementing digital marketing in
their strategy development. Airbnb is one of them. It started from a small start-up & over
the years grown to such a level where it is called a market disruptor because aggressive
marketing strategies & market entries and their presence is on the internet only hence
marketing is through digital medium i.e., Application and website. Here are four digital
marketing they have used in their strategy development. Monitor your communities
attentively, Make sure customers know exactly what they're getting, Test, test, and test
some more, Tackle an archaic industry head-on. Each and every one of the strategy is digital
marketing based. On top of that, they are partnering with another firm, small businesses to
develop product packages as per customer need and flexibility with just an app interface.
Search engine optimization (SEO) has played a big role in this. (Cui, et al., 2018).
Entertainment movies and music together have seen a paradigm shift along the way as the
technology progressed. In case of movies from records to VCR then to DVDs finally to
Digital streaming e.g., Netflix. Similarly in the case of music industry records to cassettes
then to CDs and finally digital streaming e.g. Spotify. This was anticipated given the changing
habits of the consumer with the latest technology (Simone de Bruin, 2017). This proves
successful strategies should be based on four P's of marketing if there is a revision in any
one of those strategies are to be updated to have a competitive advantage amongst the
competitors. Netflix from start they were confident about the product but they slowly
evolved with better strategies which were based on Segmentation, targeting, positioning in
the market. Some strategies used by Netflix are The simplicity of User Interface, Content is
king, BCG Matrix, Distribution strategy, Brand equity in the Market, Competitive Analysis,
Market analysis, Customer analysis, Promotion Mix. And the most benefited strategy of
Netflix is the Netflix originals (Bhasin, 2019).
Walmart and Amazon operate in a discount retail segment they are differentiated by the
platform they are on. Walmart has megastores and Amazon is totally internet based retail
store. Walmart has played a key role in organisations success with keeping a strong digital
footprint to keep up with competitors like Amazon. And aggressive expansion of Walmart in
other countries like in India is through acquisition of amazons direct competitor i.e., Flipkart
in 2018 (Michael Browne, 2018) this is a digital marketing move for a new market where
they didn't use to hold a share now they hold a significant share and now they are planning
to open their discounted retail chains in India. These kinds of strategy implementation with
innovative products through digital marketing help organisations achieve their long term
goals. This Example shows that incorporation of digital marketing in strategic development
has played a big role here to achieve the success that they have achieved.
TRADITIONAL MARKETING
Traditional methods of marketing have many facets It typically consists of advertising &
publicising through posters, newspapers, magazines, telephone books, billboards and
brochures. and broadcasting commercials on TV, radio except for digital promotions. The
commonly overlooked facet of traditional marketing is business through a referral or a
network or relationship-based marketing. (Dave Lavinsky, 2013).
The best example of traditional marketing is Tupperware. Tupperware produces
kitchenware products. The 4p's of marketing, in this case, are quality products at the least
possible price, more dominant in India, Indonesia and Germany, the target population is

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mainly the middle-income earners, for promotion Tupperware prefers direct selling over
retail strategy. Rick Goings CEO structured the promotional strategy in such a way that
empowering women and educating then to sell Tupperware products to translate into
earning but the thought behind that was if it comes from a woman the target audience
mainly women are going to get convinced (Jenna Goudreau, 2011).
Whereas Industrial technological firms like Sulzer Chemtech which are mainly in pumps,
columns, column internals, etc and now they are moving into engineering services. For such
organisations, traditional marketing is the more suitable way because the target audience is
very limited and specific and hence they prefer doing it that way and we're investing capital
in driving the strategies through old methods i.e. through magazines, books,
advertisements, etc but nowadays they are also investing significant capital in the digital
marketing. Sulzer Chemtech CEO (Gregoire Poux-Guillaume, 2107) states ‘our digital
transformation is first and foremost an enabler towards our main goal: to achieve industrial
agility. To compete in a world where change is the only constant.’ Is the same an
organisation who was in full capacity was using traditional marketing in its approach but
considering the move to achieve industry 4.0 they are incorporating digital marketing
strategies as well. This example shows that for some technology organisations it is suitable
to go digital and incorporate digital marketing in their strategy development but for some
organisations their whole consumer base is depended on it so it must for them to stick to
the traditional marketing strategy and incorporate some aspects of digital marketing which
is a demand in some cases.
MARKETING STRATEGY
One of the success factors behind long term goals is nothing but an organisations marketing
strategy. It helps them differentiate their products and services from their competitors and
allow them to have a competitive advantage. Marketing strategy of any organisation is a
comprehensive plan which is a combination of all its marketing goal. A good marketing
strategy results in profitability potential and sustainability of business if it is drawn from
market research and product mix (Anon., no date). Hence organisations now have to be
alert and flexible in order to keep up in this evolving digital marketing environment.
TO WHAT EXTENT ORGANISATIONS ARE INCORPORATING OF DIGITAL
MARKETING INTO STRATEGY DEVELOPMENT
Strategy development for digital marketing can be divided into 3 parts. Part one can be
further broken down into the introduction of digital marketing after that online market
place analysis i.e. microanalysis and internet macro environment with SWOT analysis. Part 2
can be further divided into developing the digital marketing strategy using internet &
marketing mix & relationship marketing using the digital platform as a basis and inputs from
a macro, micro & swot analysis. Part3 can be further classified into delivering the online
customer experience i.e. implementation and practice with the help of campaign planning
for digital media, Marketing communication using digital media channels, Evaluation and
improvement of digital channel performance. (Chaffey & Chadwick, 2019).The organisations
which are opting for digital marketing for strategy development generally opt for a same
framework this framework identifies the micro and macro factor there interdependence &

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identifies strength weakness opportunity and threat with respect to the marketing mix in
accordance with the digital platform and last but not the least takes into consideration
online market place & the stakeholder experience. The example of Airbnb mentioned above
of digital marketing is proof of that. Organisations which are opting for digital marketing are
incorporate digital marketing in their strategy development to enhance their performance.
Just like Airbnb other organisations also have identified and structured their strategies
incorporating digital marketing to differentiate themselves from the competitors and
market out their product successfully.
DIGITAL MARKETING & TRADITIONAL MARKETING APPROACH ADVANTAGES
AND DISADVANTAGES
Depending upon the organisation and what kind of field they operate in depending on that
they have their product portfolio, pricing, promotion, market place and based on the target
consumer they have their marketing preferences. Organisation chose to go ahead with the
approach. In today’s scenario, digital marketing is a requirement hence people take this
approach as a required one and chose to keep the traditional marketing approach alongside
or not. Because small businesses initially spending a lot of capital on traditional marketing
but now that they have an alternative of digital marketing which will give them a push
towards a larger audience as well as cost them comparatively low. Whereas the large
organisation don't hesitate to spend capital on traditional approaches because in their case
they will not want to fall back on many fronts. But there are some organisation which have
accepted totally digital marketing in their strategy development and don’t feel a need to go
for or opt for traditional marketing methodology
Traditional marketing approach depends on strategic segmentation & Targeting, Brand
positioning and differentiation, tactical marketing mix which is the product, price, place
promotion & self-selling approach and value-creating services and process. All these factors
are responsible for the development of a strategy. Traditional marketing is out there for a
long time it has its advantages and they are a broad reach, creative possibility, high
intrusion value, rich shopping experience. Whereas disadvantages of traditional marketing
are high cost, long lead time, short exposure time, short exposure time, low flexibility. But
given proper motivation traditional marketing can be bent to customers requirement (Raval,
et al., 2014).
On the other hand, Digital marketing approach depends on connected marketing approach,
customer community confirmation, brand clarification of character and codification,
connected marketing mix which is Co-creation, currency, communal activation, conversation
& commercialisation and collaborative customer care. Digital marketing can be bend to
customer requirements. When digital marketing is concerned it also has its advantages and
they are low cost, short lead time, high market segmentation, interactive, high flexibility,
content architecture, clarity of product presentation, order placement, delivery of products
whereas disadvantages of digital marketing approach is low intrusion value, high clutter,
high retain interest (Raval, et al., 2014)
When Traditional marketing approach is compared with digital marketing approach it is
seen that factor may look the same but are actually very different and this shows that
because of this digital marketing is not supposed to replace traditional marketing (Kotler, et

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al., 2017). Instead, the two can co-exist and this coexistence relationship is commonly
observed. Most of the organisations having co extensional marketing.
DIFFERENCE BETWEEN OMNICHANNEL AND MULTICHANNEL
Omnichannel marketing centres on conveying a steady, personalized involvement for
customers over all channels and gadgets. The directing guideline of omnichannel marketing
is that it’s consumer-based, not channel-based. The aim is to form customer involvement as
simple as conceivable, which implies steady engagement no matter where or how a customer
is a collaboration with you (Michelle Pruett, 2017). Organisations which focuses on the
consumer experience have an omnichannel strategy. (Anon., 2018)
Whereas multichannel marketing ranges a few distinctive channels, like social, portable,
coordinate mail, and a physical area. Each channel is partitioned and autonomous from the
others and works in a vacuum, each with its possess technique and objectives. The need for
integration from a multichannel approach can make a befuddling and generic involvement
that frequently clears out customers feeling disappointed (Michelle Pruett, 2017).
Organisations which focuses on each channel have a multichannel strategy. (Anon., 2018)
CONCLUSION
Each and everything an organisation does to attract and place its product or services in the
hands of potential customers is marketing. Nowadays the way people interact with each
other have changed, ultimately there is a revision in their preferences this has affected the
way people do business. Marketing preferences have changed because of a more connected
world and technology-rich environment. It becomes easy for a business to form digital
marketing strategies considering its advantages over traditional marketing but that doesn’t
mean that digital marketing is replacing traditional marketing because traditional marketing
is the foundation of marketing and digital marketing social marketing are an extension of
marketing. Fully replacing traditional marketing is not possible in every market considering
the 4 P's of marketing and how they behave in the respective market. High probability of
this happening is in small businesses and technology organisations. Where the most suitable
option to go with is digital marketing considering the approach with which they like to go in
the market. Wherein the organisation finds the traditional methodology approach suitable
which is proven a success for them chose to go with it. Since the success factors are the only
factor they need to have before preparing strategies.
Traditional marketing methods do not contradict the digital marketing efforts. The two
don't work in prohibition from each other. Hence many firms like Sulzer are opting for the
digital approach but keeping the parts of the traditional approach are intact. This combined
strategy is suitable in most of the organisation who are planning to go for a combined
approach. Which will helps them keeps updated with the technology as well as keeping the
current processes and opportunities undisturbed along the way.
But today global environment has opened up the customer to a lot of exposure and hence
the power lies in his hand. hence for strategy development, an omnichannel strategy is a
good option rather than traditional marketing or digital marketing or a mix of both.
Omnichannel is a consumer-centric approach featuring a holistic experience customer

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journey of a transaction should be frictionless and painless. Whereas Omnichannel
management focuses on "synergistic management of the numerous available channels and
customer touchpoints, in such a way that the customer experience across channels and the
performance over channels are optimized" (Payne, et al., 2017). This approach helps tailor
the strategy with respect to the target customers and organisation will be at higher chances
of success with it. Because at the end of the day success is measured in terms of customer
base rather than what approach used to develop the strategy.
BIBLIOGRAPHY
Mirzaei, H. et al., 2012. Differences of “Traditional Marketing” in opposition to “Electronic
Marketing”. International Conference on Economics, Business and Marketing Management,
IPEDR,IACSIT Press, Singapore, Volume 29, pp. 231-234.
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marketing-still-alive/#3ed3d20c3806
[Accessed 16 June 2019].
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[Accessed 17 june 2019].
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[Accessed 17 June 2019].
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s.l.: A medium corporation.
Gregoire Poux-Guillaume, 2107. Sulzer Annual Report 2017 - Letter to the shareholders, s.l.:
Sulzer Chemtech.
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Cengage Learning.
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[Accessed 17 June 2019].
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acquisition-india-s-flipkart
[Accessed 17 june 2019].
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digital. New York: John Wiley & sons Inc.
Payne, E. M., Peltie, J. W. & Barger, V. A., 2017. Omni-channel marketing, integrated
marketing communications and consumer. Journal of Research in Interactive Marketing,
11(2), pp. 185-197.
Chaffey, D. & Chadwick, f. E., 2019. digital marketing Strategy Implimentation and Practice.
7th ed. s.l.:Pearson.

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Bhasin, H., 2019. https://www.marketing91.com. [Online]
Available at: https://www.marketing91.com/marketing-strategy-of-netflix/
[Accessed 18 June 2019].
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[Accessed 18 June 2019].
Boppre, M., 2017. https://www.linkedin.com. [Online]
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[Accessed 18 June 2019].
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[Accessed 19 June 2019].
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[Accessed 19 June 2019].