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Traditional Marketing Versus Digital Marketing

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Abstract

Today, the digital economy contributes decisively to increasing competitiveness, especially since a digital transformation involves migrating to new technological models, where digital marketing is a key part of the strategies of users' growth and loyalty. The internet and digital marketing have become important factors in campaigns, which attract and retain internet users. This study aims to identify the main ways in which users can be gained and retained through the use of digital marketing. Digital technologies can monitor behaviours, can analyse the content of requests, problems, assessments, both on the platforms of organizations and on social networks. Organizations need to understand how favourable assessments will result in the outcome that the marketing department needs to achieve.
AGORA INTERNATIONAL JOURNAL OF ECONOMICAL SCIENCES,
AIJES, ISSN 2067-3310, E - ISSN 2067 7669, VOL. 14 (2020)
Traditional Marketing Versus Digital Marketing
Valentina Simona Pașcalău1, Ramona Mihaela Urziceanu2
1 Doctoral School of Economics and Business Administration, West University of Timișoara
2 Faculty of Juridical and Administrative Sciences, Agora University of Oradea
E-mails valentina.pascalau73@e-uvt.ro, ramona.urziceanu@gmail.com
Abstract
Today, the digital economy contributes decisively to increasing competitiveness, especially since a digital
transformation involves migrating to new technological models, where digital marketing is a key part of the
strategies of users’ growth and loyalty. The internet and digital marketing have become important factors in
campaigns, which attract and retain internet users. This study aims to identify the main ways in which users can
be gained and retained through the use of digital marketing. Digital technologies can monitor behaviours, can
analyse the content of requests, problems, assessments, both on the platforms of organizations and on social
networks. Organizations need to understand how favourable assessments will result in the outcome that the
marketing department needs to achieve.
Keywords: traditional, digital, marketing.
1 Introduction
Online marketing does not differ much from classic marketing, the ultimate goal being sales,
regardless of the object of sale (products, services, information, etc.). At the same time, this
type of marketing has some distinct features, the integration of the new media into the
marketing mic, that leads to new concepts, such as: viral marketing (imitates the viral
process), viral mobile marketing, transactional marketing, conversational marketing, internet
marketing, digital marketing, interactive marketing. All of these being modalities to attract
numerous clients with very low costs and presume a good web design, a comprehensive data
base, links, using interactive promotional materials, development of the personal sale, etc.
(Coltman, T., 2007).
When registering the clients into the virtual shop, must be required their permission to send
them messages with the company offers and promotions. With the information explosion and
the revolution produced by the spectacular evolution of information and communication
technologies appeared the concept of digital marketing that synthetized all the activities
developed through the information systems that use the binary or digital environment, specific
to ITC application. Thus was born the digital marketing, known also as online marketing,
cybermarketing, webmarketing, e-marketing, i-marketing, electronic marketing, digital
marketing of marketing on the internet.
2 Conceptual delimitations
Here you must presents your original contribution.
The term digital marketing was first used in the 1990s. In the 2000s and 2010s, digital
marketing became more sophisticated as an effective way to create a relationship with the
consumer that has depth and relevance (Coltman, T., 2007).
The main disadvantages or weaknesses of traditional marketing are (Orzan, 2007): traditional
marketing is in many cases considered more expensive in terms of resources (material,
monetary, human), such as printing brochures, leaflets, catalogues presentation, product
sheets (Jarratt, D., 2009). Also, direct marketing through classic mail is very expensive in
terms of the costs of postage, envelopes, etc. and requires more time and staff involved in this
activity. marketing research conducted through online questionnaires is much more cost-
effective than the classic one, which involves many costs. Another aspect is the abandonment
of advertising companies, which act as intermediaries between the company and organizations
or individuals, as in the case of advertisers on TV or radio, or in the written press, who charge
quite high commissions. Negotiation with a website is often done directly by companies.
Traditional marketing can be an intensive process, often its tools taking a long time to
implement. a physical banner, to be placed in a public location, takes a long time to obtain
permits, to create it, etc. a banner on online sites is displayed much faster. The marketing
research carried out through the classic questionnaires takes a long time until they are
completed by the subjects, until they are centralized, etc. while in the online environment all
this takes place very quickly, and the centralization is much simpler, the online questionnaires
having the possibility to export the data directly to specialized software for their analysis,
such as SOSS, Quantam, Stata, EViews etc. Also, if there is a mistake in an advertising text
that must appear in an advertisement, the procedure is very difficult and time consuming, in
all this interning the advertising company as an intermediary, and for prestigious publications
you can expect a few months until the desired message appears.
Traditional marketing is not always available, for example a TV or radio commercial is
broadcast at certain times, depending on how it is set out in the contract, while a commercial
on a website is available all the time, these being some of the basic attributes of the internet
through its infrastructure consist of online servers that are available 24 hours a day, 365 days
a year (Jaworski, BJ, 1993).
Also, the most representative element of the online presence, the website of the company or
of another person, or even the one dedicated to a product, is available all year round, being
most of the time updated. Traditional marketing has a low interactivity, as it is in the case of
direct marketing through classic mail, where it is not known for sure if any feedback will be
obtained from potential customers, the company thus having very high costs. also in the case
of TV or radio commercials, the exact audience is not known, or in the advertising messages
in the written press, it is not possible to estimate how many people noticed a banner they
passed. In the online environment, all these aspects can be followed by the fact that most of
the time online spots or advertisements have the possibility to click on them to direct us to the
parent website of the company they come from or to get more many details about the products
or services promoted, these clicks being easily counted, thus obtaining the possibility to
evaluate the feedback of potential customers.
Traditional marketing generally operates locally, while online marketing is global, reducing
communication barriers, a website being available in any area of the globe that has access to
the internet, while most televisions, radio stations and the print media are only available in a
certain geographical area. Before, it was exceedingly difficult for a company to provide
technical support to its customers, requiring a representation and a service with numerous
staff in each country. Now, with the advent of global websites, which have identical versions
for each country, the only difference being the language spoken in a certain area, this staff has
been considerably reduced, with customer support being able to deal with a much smaller
staff, many one of the problems being solved through online support from another country.
The internet can be considered a free market, where consumers can more easily compare
prices for certain goods and services offered by companies than in real life. they can also
compare prices in one country with those in another. The emergence of online stores and
global sites like Ebay or Amazon has greatly facilitated the purchase of goods from foreign
countries. There was also a freedom on the labour market, so companies in one country can
promote their services in another country, such as software companies or websites, which can
also place orders from abroad, not being their physical presence in a certain place is
necessary. the internet has also reduced communication barriers, so a negative news about a
certain company is in a very short time in any area of the globe with online access.
The advantages of online marketing over traditional marketing are summarized and listed
(Orzan, 2007), so we see that online marketing can save money and help reduce the marketing
budget, due to the fact that on the Internet the transmission of information from the company
to the customer or the potential customer is significantly more profitable. For example, an
online catalogue can be updated at any time, it can be sent to a very large number of people,
all costing almost nothing, while the classic method requires printing costs, postage, shipping
staff this, plus the very long time to perform these procedures. The same happens in the case
of direct marketing through classic mail, unlike email, which has minimal costs, where only
one employee can perform the task for which a team was previously required. The email also
reduced telephone calls involving large staff and high costs for companies in service or
customer service departments, due to the fact that an email can be answered in a timely
manner, unlike a classic letter, with the advantage that the message remains in the memory of
the servers of the email service, thus being useful to both customers and the company. Some
companies also offer online chat support, thus reducing the cost of fixed or mobile telephony.
Online marketing can save time and reduce the steps of the marketing process, so marketing
materials no longer have to wait a long time for printing, they can be uploaded to servers
immediately, becoming accessible all the time for potential customers. In the case of the
company's customer service, they no longer must write letters or call; now, by sending a
simple email this problem is solved much faster. Practically, internet marketing puts you in
touch with the market much faster, guaranteeing instant access to marketing information:
presentation website, catalogues and brochures, online video presentation spots, etc. thus, the
online marketing process is much simpler, more accurate and more efficient.
Adopting digital technologies, online marketing is continuously available, so the online
presence of marketing materials is guaranteed by the servers that make up the Internet
infrastructure 24 hours a day, 365 days a year, and changes to these materials or updates can
be made also at any time of the day. This allows a much higher accuracy of the information,
so the customer can be better informed about the various promotions, price reductions, special
offers and their availability (Jayachandran, S., Sharma, S., 2005).
Online marketing is interactive and offers customers another way to shop. Interactivity is
achieved mainly through personalization, which leads to the interaction between the potential
customer and the company. Customers in modern society want much more information about
the product, they are much more analytical. And the category of customers who purchase
products and services online is a very dynamic one, usually with higher education, with a very
high analytical spirit, often documenting themselves long before purchasing a product. This
whole category of customers is looking for opinions written by other users of a product on
forms, blogs or in the comment sections of online stores.
All these elements presented provide a much greater interactivity of the online environment,
but there are several methods of companies to achieve it, one being the so-called cookies that
remember the pages visited from a website and what products attracted the visitor's attention,
thus making recommendations or remind him when he enters another time on the site what
were he was interested last time.
Another method is that of interactive argumentation (Orzan, 2007), which makes the
mentality of mass dissemination disappear, being replaced by a personalized communication,
an involvement of the customer in the purchasing process, a focus on real-time satisfaction of
prospecting and the immediate provision of advice and information, thus invigorating the
company's innovative image and allowing it to differentiate its product portfolio from that of
the competition.
Thus, on many websites customers are allowed to choose the colour for a certain product, the
method of transport, the delivery date, the method of payment, or if they change their mind
and want to buy that product again, it remains in the shopping cart online with all options
selected as long as the product is still available. In conclusion, this interactivity by
personalizing the products and services offered ensures visitors a much better percentage of
remembering the website where they encountered this, this personalized dynamic of content
ensuring much greater customer loyalty and customer choice optimally.
3 Conclusions
Online marketing is global and offers equal opportunities for access to both organizations and
individuals. 34% of the planet's population has access to the Internet, which means an
unprecedented possibility of disseminating information, plus the advantage of the
disappearance of physical borders between states (Reinartz, W.J., 2003). Thus, companies in
one country can promote, sell or offer their services in another country, which is a huge
advantage for their development. At the same time, hundreds of millions of potential
customers around the world can document themselves, or search for or buy products from
another geographical location. another advantage is the fact that in online marketing the
discriminations related to the ethnic framework, to the type of business, to its size disappear,
thus being attacked the monopolies that until now certain companies had in a country in a
certain field.
The problem regarding the legal aspects disappears, the company from a certain country
respecting the legislation in force of that state and not that of the state where it offers its
services online. Faxing was the first step in removing these barriers, but the internet and email
completely eliminated them by ensuring the freedom of movement of written information.
Thus, the internet contributes to a democratic globalization, and consumers in the online
environment, once accustomed to this freedom, will hardly ever give it up, no matter what
political regime comes to lead a state.
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This research addresses three questions: (1) Why are some organizations more market-oriented than others? (2) What effect does a market orientation have on employees and business performance? (3) Does the linkage between a market orientation and business performance depend on the environmental context? The findings from two national samples suggest that a market orientation is related to top management emphasis on the orientation, risk aversion of top managers, interdepartmental conflict and connectedness, centralization, and reward system orientation. Furthermore, the findings suggest that a market orientation is related to overall (judgmental) business performance (but not market share), employees’ organizational commitment, and esprit de corps. Finally, the linkage between a market orientation and performance appears to be robust across environmental contexts that are characterized by varying degrees of market turbulence, competitive intensity, and technological turbulence.
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The authors develop a framework that incorporates projected profitability of customers in the computation of life-time duration. Furthermore, the authors identify factors under a manager's control that explain the variation in the profitable lifetime duration. They also compare other frameworks with the traditional methods such as the recency, frequency, and monetary value framework and past customer value and illustrate the superiority of the proposed framework. Finally, the authors develop several key implications that can be of value to decision makers in managing customer relationships.
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The market enthusiasm generated around investment in CRM technology is in stark contrast to the naysaying by many academic and business commentators. This raises an important research question concerning the extent to which companies should continue to invest in building a CRM capability. Drawing on field interviews and a survey of senior executives, the results reveal that a superior CRM capability can create positional advantage and subsequent improved performance. Further, it is shown that to be most successful, CRM programs should focus on latent or unarticulated customer needs that underpin a proactive market orientation.
O rga nі za tі o na l prе сo ndі tі o nѕ ѕu ppo rtі ng rе la tі o nѕhі p ma na gе mе nt сa pa bі lі ty rе nе wa l, Jo u rna l o f Ѕtra tе gі с Ma rkе tі ng
  • Ja Rra Tt
Ja rra tt, D.G., (2009), O rga nі za tі o na l prе сo ndі tі o nѕ ѕu ppo rtі ng rе la tі o nѕhі p ma na gе mе nt сa pa bі lі ty rе nе wa l, Jo u rna l o f Ѕtra tе gі с Ma rkе tі ng 17(5), pp. 365-381