A Report on the Impact of Digital Technology on Promotional Strategies

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This report examines the profound impact of digital technology on promotional strategies within the marketing landscape. It highlights how digital tools have revolutionized marketing, making strategies more effective and technologically advanced. The report emphasizes the significance of personalized customer experiences, the advantages of social media marketing, and the role of artificial intelligence in optimizing promotional campaigns. It explores both the benefits, such as global reach, cost-effectiveness, and instant implementation, and the drawbacks, including increased competition, security concerns, and the need for skilled employees. The conclusion underscores the transformative influence of digital technology, while the recommendations suggest training employees, securing social media handles, and fostering creativity to mitigate challenges like ad fatigue. The report provides a comprehensive overview of the digital technology's role in shaping modern marketing practices and strategies.
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Portfolio and Reflective
Account of Learning and
Development Achieved
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Project Title- Impact of Digital Technology on Promotional Strategies
INTRODUCTION
Digital technology has completely transformed the functioning of marketing in an
economy. With the combination of latest technologies, strategies which are formulated for
effective marketing of products are more effective as well as technically advance. Promoting
several services or other commodities is considered to be an important aspect of this operation.
Connectivity with customers has become very strong. This factor provides many advantages for
successful promotion of products to a particular segment of a market. Apart from this, strategies
can be implied instantly with the use of latest technology. This topic has been selected as it is
responsible for major changes which has occurred in this area. Growth of personalised
experience has made promotions more effective. Now customers are provided more personal
approach. It is regarded to be a perfect way of getting connected to them. This aspect results in
acknowledging preferences and those factors that influences their buying decision. Now
manufacturers are successful in engaging their customers that has served them a way of making a
strong base of buyers It would provide them a great profitability as well as effective sustenance
in market. Apart from this, use of technology in promotional strategies can provide efficacious
positioning that will result in cresting a competitive advantage. Aim of this work is to assess
advantages which has been gained with the use of digital technology in promoting products or
services of a company through conducting various survey.
Literature Survey
According to Kannan (2017), Digital technology has made promotional strategies to be
more advanced that has lead to provide marketing field many advantages. There are many
aspects which are needed to be taken in consideration for building up an effective plan for
promoting product of target segment in a particular market. As effective marketing of product
increases sales of an organisation, it is very important to adopt latest techniques for
implementing efficacious tactics that can attract major part of buyers towards their product. With
the use of social media platform one can publicise their major offerings through these mediums.
Social Media techniques is an important strategy that is use for advertising. There are many
advantages such as, large amount of customers are targeted at the same time that belongs to
different area across the world. Every related plans can be instantly applied which does not
requires much physical effort as compared to traditional strategies which were earlier used for
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marketing. Now companies can easily opt for global promotional campaign for achieving
international recognition. This provides an enterprise to promote their product at higher level.
Lovelock and Patterson (2015) has stated that, with the use of digital technology on
promotion now customers are provide more personalised experience. Every firm prefer to get
connected with them through various web based or mobile based applications. This provides
them an approach to virtually connect with them. It helps to acknowledge their choices and
preferences that can be used while formulating promotional strategies. Apart from this, every
company can promote their product directly to their target customers in a personalised manner.
These strategies are advantageous for retaining customers and converting them to become loyal
for their brands. There are several chat bots and links which can be used for engaging them and
to know their feedbacks or suggestions. With successful knowledge of their choices one can
design effective strategies for attracting them through effective promotion. According to Ryan,
(2016) personalised approach provides collaborative management of customer relationship. It is
very important to handle all issues which are faced by buyers that helps to provide them
solutions. Establishment of strong bond with them results in provides an advantage of building a
positive image that maximises their sales and growth of their business. Personalised Experience
is regarded to be one of the major tool for promoting the brand in a market. This supports direct
advertisement without the involvement of any third party. Companies are able to show their ads
on several digital channel which has a reach to mass audiences across the world. As a result,
business develops very fast.
Easy brand promotion eliminates complex steps involved in publicising products or services of
the company. It has become convenient for several firms to work upon these strategies on
internet.
Strauss and Frost (2016) has asserted that, adoption of digital marketing has made
marketer able to design budget friendly campaigns for advertisement. It does not affects
financial conditions of the company in any ways. Promoting on digital mediums is time and cost
effective decision as compared to traditional channels of marketing such as newspapers,
televisions, banners or radios. This approach of promotion has provided a greater connectivity
with buyers. This has provided an opportunity to resolve every problems related to them
instantly through social chat messengers. Customers can easily get answers of their queries
related to sales from social media feeds and related advertisements can target different users with
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particular needs or interest. Apart from this, use of artificial technology has boosted up
marketing in an effective direction. There are apps which are issued by several companies that
provides personal assistance for taking particular decision regarding their choices for buying a
specific product. There are several voice assistants that follows the audio commands and
provides associated result within no time. AI helps to predict dynamic needs and requirements
of buyers according to promotional strategies are made. These plans becomes effective as it
successfully attracts target segment of customers successfully. With effective promotion,
processes related to the factors of sales and marketing have become more simplified. With the
integration of technological aspects which were discussed earlier can make the work easy for
sales representative or other individual who is responsible for promoting the product. Adoption
of digital technology in promotional strategies has helped to optimise marketing operation by
eradicating unnecessary steps that demanded huge resources for advertising their offerings in
market. Apart from this, easy understanding of needs related to several customers has allowed
the firm for identifying correct time to promote their product in market. There are many software
which provides information related to lucrative groups of buyers. It facilitate them to advertise
effectively in order to attract them.
According to Tiago and Veríssimo (2014) , another impact of digital technology is
increase in speed and flexibility of promotional program of a company. It allows promoters or
responding quickly to all those changes which occurs at market. For example, when a certain
competitor develops an effective strategy that can affect their sales. With the use of latest
technology firm can make plan for altering image of their products. Different markets should be
targeted with preparation of several kinds of promotion based on themes which can be made
through digital technologies. Apart from this, there is no time bound for advertising as time
zones of the globe varies. Therefore, advertisement processing can be done 24 hours of a day.
This makes it one of the greatest advantage of using advanced measures for advertising on digital
mediums.
Another Xu, Frankwick and Ramirez (2016) has stated that there are many drawbacks
which are associated with the combination of digital technology in promotional strategies. It has
raised a tremendous amount of competition in the market. There are numerous innovative
strategies which can be made through using these advanced measures for giving competitive
advantage over each other. Apart from this, it has became an expensive as well as stressful
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aspect which the occupant has to constantly has to imply for competing well in market. There is
lots of pressure on marketing team for bringing unique concept that can attract potential
customers. Complex advanced technologies are adopted for analysing the demand pattern of
market. Also, it has been observed that for getting attention of customers every company is
focusing on the growth of homogenisation in both promotional strategies as well as
manufacturing of products. The reason is, digital technologies makes the process of replication
very easy and no advertiser possesses competitive advantage for long. As in market nowadays, it
is very east to copy effective strategies of each other. This results in many disadvantages such as
customers gets unable to identify differences in products and increases the aspect of public
cynicism for marketing process. Pirated products are flooded in market due to these advanced
technologies and the company bears the loss. Apart from that reputation of company also
becomes prone to many threats. There are several hackers who can hack social handles of
numerous companies and perform any unethical practices that can create loss of reputation of a
company. It is very necessary to protect marketing strategies in order to create an effective
positioning in mindset of customers.
Security issues on digital channels can be regarded as one of the major threat that can
create resistance in effective promotional strategies. When a particular customer ask or queries
about any online service or product, there can be certain cautions that are considered by the
company for not giving all their private information regarding any commodities. As unidentified
person can misuse that information against the buyer as asserted by Deegan and Sutherland
(2016). Apart from this, there are many segment of customers who takes less interest in
accessing interest which can be considered as a major drawback for those companies which
relies on digital platforms for effective promotional strategies. In several remote areas where
advertisement cannot be done through other medium but only digital marketing can work their.
This factors tends to loose that group of buyers for the company. There are many complex
procedures which are used for conducting promotion through online strategies. For these
advanced software and other programmes are used for which special skills are required. As every
employee cannot handle these operations. Special technical team is appointed in the company
that demands a high income resources which leads to affect the budget of an organisation making
it very costly strategy. Apart from this, changes in a company cannot be easily implied there are
certain disputes which can arise in marketing team . It can be due to eliminating traditional
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marketing techniques and adopting new ones which are not easy to understand and implied.
There can be certain internal problems that can make this operation as least effective for getting
success in a market. Also, there is a concept of Ad fatigue which is regarded to be very common
as generally customer tends to skip online advertisement as they become fed up from those.
CONCLUSION
It has been concluded that Digital Technology has an immense impact on the promotional
strategies in marketing concept. There are many advantages which are provided by using this
advanced measure for making advertising plan to be more effective. It has lead to imply several
tactics instantly without any problem. With the use of social media techniques, company can
promote their products or services in an effective manner. It has a global reach and provides
international recognition because audiences which are targeted belongs to several areas across
the globe. Apart from this, it optimises operations involved in marketing as it leads to minimise
the use of resources and the result is effectively derived. Along with advantages, there are
several disadvantages which is needed to be known such as there are several issues which are
associated with adoption of digital technology in a marketing department as it requires highly
skilled employees. For hiring them, there is a need of huge investment which can be over the
budget for a firm.
RECOMMENDATION
Employees must be provided training for developing technical skills for promoting
product on digital channels.
Social media handles of a company must be secured through applying several protecting
actions.
Online Marketing strategies must be protected from getting copied through filing up
patents and copyrights.
Creativity in online advertisement should be adopted for eliminating Ad fatigue concept.
Before introducing changes in the marketing department, it is very important to conduct a
session for informing and making employees aware regarding digital promotional
campaigning strategies.
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REFERENCES
Books and Journals
Deegan, M. and Sutherland, K., 2016. Transferred illusions: digital technology and the forms of
print. Routledge.
Kannan, P. K., 2017. Digital marketing: A framework, review and research agenda. International
Journal of Research in Marketing. 34(1). pp.22-45.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Ryan, D., 2016. Understanding digital marketing: marketing strategies for engaging the digital
generation. Kogan Page Publishers.
Strauss, J. and Frost, R. D., 2016. E-marketing: Instructor's Review Copy. Routledge.
Tiago, M. T. P. M. B. and Veríssimo, J. M. C., 2014. Digital marketing and social media: Why
bother?. Business Horizons. 57(6). pp.703-708.
Xu, Z., Frankwick, G. L. and Ramirez, E., 2016. Effects of big data analytics and traditional
marketing analytics on new product success: A knowledge fusion perspective. Journal of
Business Research. 69(5). pp.1562-1566.
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