Performance Driven Marketing Report: Strategy Evaluation and Examples

This report critically evaluates the proposition that digital marketing has replaced traditional marketing in strategy management. It explores the evolution of marketing strategies, emphasizing the shift towards digital tools and their impact on customer interaction and insight generation. The report discusses the advantages of digital marketing, such as increased customer value, real-time business insights, and cost-effectiveness, while also providing examples like Four Star Pizza and Butlers Chocolates to demonstrate the effectiveness of digital marketing over traditional methods. The study covers various aspects of strategy development, including promotional strategies, global reach, and competitive analysis, highlighting how digital marketing enables businesses to adapt and gain a competitive edge. The analysis also includes the importance of digital media in influencing customer buying behavior and its cost-effectiveness compared to traditional marketing approaches.

Running head: PERFORMANCE DRIVEN MARKETING
Performance Driven Marketing
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Introduction
With the advancement of technology, contemporary business organizations are more
inclined towards adopting digital marketing tools towards promoting their products and services.
Traditional marketing tools are mostly related to make customers aware regarding the products
and service (Tiago and Veríssimo 2014). Digital marketing tools have gone far beyond just
customer awareness and focus more on customer interaction for gaining increasing customer
insights (Lamberton and Stephen 2016). Therefore, digital marketing tools are more effective in
providing customized value to the customers than those of traditional marketing tools. This study
will critically evaluate the proposition that digital marketing has replaced traditional marketing in
strategy management. The study will evaluate this proposition from various aspects of strategy
development in organizations. Moreover, the study will also provide some examples for
demonstrating the effectiveness of digital marketing tools over the traditional marketing tools.
Discussion
With the advancement in the technology, digital marketing and social media have
significant influence on the life of people. Digitalization and social media are at every sphere of
people’s life. With the popularity of digitalization, digital marketing has gradually replaced
traditional marketing in terms of strategy development in an organization (Taiminen and
Karjaluoto 2015). Marketing and strategy development in today’s contemporary organizations
are not easy job. It needs huge market research, information about changing customer needs,
promotion of products and services with shortest period, fostering unique product information
through unique channels and lots more. Any strategy formulation needs enough interaction with
the customers for identifying their core needs.

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According to Stone and Woodcock (2014), in traditional marketing, there was very little
interaction between the medium used and the customers. Moreover, the intension of traditional
marketing was just to provide information to the customers regarding the existence of the brand.
However, it was quite difficult for the organization towards understanding the perspectives of the
customers regarding the brands. On the other hand, Karjaluoto, Mustonen and Ulkuniemi (2015)
digital marketing is extremely beneficial for increased interaction with the customers and
understanding the insights of the customers. Apart from just making the customers aware about
the products and service, digital marketing can also help the organization towards getting the
feedback of the customers regarding the product experience. In this way, digital marketing has
actually increased the customer value, as it provide scope to the customers in sharing their
experience with the customers.
Franco et al. (2014) pointed out that unlike the traditional marketing, in digital marketing,
the customers can also share their suggestion over the product improvement. In this way,
contemporary organizations can better modify their products and service offerings as per
customized needs. It facilitates the organizations towards gaining competitive edge over the rival
organizations through formulating customized product strategy. While considering the example
of Four Star Pizza, it can be seen that the organization uses digital media marketing for gaining
deep insights about the customers regarding their foods. Based on the feedback of the customers,
the organization constantly modifies their foods as per customized and preferred tastes of the
customers. Such unique customer value facilitates the organization towards gaining competitive
advantage over its rivals (Tomše and Snoj 2014). Therefore, recently, this organization is much
more concentrated on their digital marketing effusiveness rather than focusing on traditional

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marketing. Therefore, digital marketing has gradually replaced traditional marketing in regards
to strategy development.
From the global study, it can be seen more than half of the world use digital media tools
for accessing information. In such situation, digital media is the best tool for marketing the
products and services with increased exposure of brands to the customers. People all around the
world are quite busy in their work life. Wedel and Kannan (2016) stated that people in today’s
world do not have much time to watch or listen to product or service advertisement over radio,
television or any print media. Therefore, traditional marketing is less effective in effective brand
exposure to today’s customers. However, Vásquez and Escamilla (2014) opined that people are
always engaged with digital media either for the purpose of their work or anything else.
Moreover, with high level of digitalization, today’s customers are more inclined to search for
product and service information through digital media tools like social media, emails, websites,
video hosting, mobile SMS and others. Moreover, digital marketing also direct the customers
directly to the company websites, where they can access detailed information regarding the
products and services. In this way, contemporary organizations can also access the customer visit
rate of the websites and understand the popularity of the brand for strategy formulation.
Unlike the traditional marketing, in digital marketing, organizations can see their
business or product status in real time. According to Järvinen and Karjaluoto (2015), digital
marketing allows the contemporary organizations to oversee the factors, which is not working
properly and need quick improvement for better business result. Moreover, modern business
organizations can measure the popularity of their brand through measuring the traffic of their
websites. As per Levy and Gvili (2015), contemporary organizations can easily measure the
traffic of their websites using Google Analytics for measuring specific goals of the websites,

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blogs and other packaged e-mail marketing solution. The organization can also measure the
amount the people opening, reading and converting from the e-mails.
Ström, Vendel and Bredican (2014) stated that digital marketing is the best tool for
simply measuring the success of the business and making any improvement over the strategy for
gaining sustained competitive advantage. In this way, after measuring the brand popularity over
the digital media, the organizations can quickly adopt improvement strategy for modifying their
brand features for providing unique customer value. In this way, digital marketing has gradually
replaced traditional marketing for making more customized business strategies. While
considering example of Butlers Chocolates Company in Ireland, the organization uses digital
media for getting more interaction with the customers. Moreover, with the help of digital media
marketing tools, the organization simply measures the popularity of the chocolate products and
makes immediate modification after getting any significant suggestions from the customers
(Taneja and Toombs 2014). Such customer concerns through digital media tools have built the
foundation of the business success of this organization.
Traditional marketing tools were limited within their era. According to Rani and Rani
(2017), in traditional marketing tools, customers were nowhere provided with the scope to refer
their preferred brand to mass of their friends and close circles. Therefore, promotional strategies
were limited mostly to the individual level of the individual customers. However, Killian and
McManus (2015) opined that digital marketing tools always facilitate the contemporary
organizations in making their brand promotional messages viral. Moreover, the social media
tools like Facebook, Twitter, Youtube and others provide options to the customers towards
sharing the information of their preferred products and services to their closed friends. In this
way, unlike the traditional marketing tools, digital marketing tools go beyond the individual

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levels of the customers and make the brand promotional message viral (Stone et al. 2016). In this
way, contemporary business organization can perfect manage their promotional strategies
through digital marketing tools by replacing the traditional marketing tools.
With the globalized nature of businesses, it is almost impossible for the organizations and
its marketers to walk around world personally and collect insights about the customers.
Furthermore, Abashidze (2017) pointed out that traditional print media marketing and radio,
television and billboard advertising was quite ineffective to communicate important information
about the products and services to the global customers in real time. In such situation, digital
marketing tools are quite effective to reach information product and service information to the
customers in real time. Bianchi and Andrews (2015) opined that organization can communicate
their important information to the global customers with a fraction of time. Such real time
communication of the information to the customers actually enhances the value of the
information. On the other hand, Ahuja (2015) opined that traditional marketing tools could not
guarantee communication of important information to the customers in real time due to
breakthrough in communication channels. However, digital media tools are less influenced any
through in communication channels. Therefore, such marketing tools are quite effective in
providing real time product and service information to the customers, which manages the right
value of the promotional messages.
Cost is an important factor to be considered, which has replaced traditional marketing
tools with the usage of digital marketing tools. According to Ribón, Monroy and Ortega (2017),
traditional marketing tools were quite expensive and the design of traditional marketing media
used to increase the overall organizational cost for managing the promotional strategies.
Moreover, the advertising channels like television, radio, Yellow Pages, magazines require

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enough investment from the part of organizations for regularly updating and designing the
promotional contents. On the other hand, Kleppinger and Cain (2015) opined that digital
marketing tools sometimes needs little investment for updating the digital media pages.
However, such investment cost is quite less than those of traditional marketing tools. Moreover,
the organization can easily create an e-mail account, social media account, You-Tube pages
within fraction of time and without spending much amount of money. In this extent, traditional
marketing methods like television advertisement, radio advertisement, billboards and other is
quite expensive and needs huge investment for its perfect design and development.
Gottlieb and Bianchi (2017) stated that Contemporary business organizations can develop
online marketing strategies with very little cost than traditional marketing strategies. Therefore,
digital marketing tools can effectively develop promotional tools for communicating product and
service information with much lesser cost than those of traditional marketing tools. Hence,
digital marketing tools have gradually replaced the traditional marketing tools in developing and
managing promotional strategies. While considering the example of Aer Lingus, the
organization has recently given major focus on the digital marketing tools for reducing their
overall promotional cost. Moreover, the organization is quite successful in reducing the cost of
overall promotional strategies. Furthermore, the organization is now more capable of reaching
worldwide customers with lesser time, which enhances the value of the information in real time
frame (Earley and Maislin 2016). Furthermore, the cost effectiveness of digital media is also
insisting the organization towards replacing the traditional marketing tools with digital marketing
tools for its strategy management.
Most of the contemporary organizations are ramping up their brand and business on
digital marketing campaign, using different channels. Hence, digital marketing tools are quite

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effective in knowing and understanding the core unique value of the competitor organization.
According to Opreana and Vinerean (2015), digital marketing tools are quite effective in
identifying and recognizing the core and unique value of the competitor organizations. In such
situation, traditional marketing tools are less effective in recognizing the unique attributes of the
competitors with limited brand exposure. Killian and McManus (2015) pointed out that with
increased brand exposure, digital marketing tools facilitate the organizations to have a look on
their competitor’s strategies and plan accordingly for gaining competitive advantage over their
competitors. In this way, digital marketing tools are quite helpful over the traditional marketing
tools in gaining competitor’s information and formulating competitive strategies towards beating
the competitors. Furthermore, Karjaluoto, Mustonen and Ulkuniemi (2015) opined that real time
results from the digital marketing tools facilitate the contemporary organizations in better
understanding the competitive scenario in the market. Therefore, the organizations can easily
track any limitations in their strategies and improve those strategies towards beating the
competitive pressure generated from the competitors.
Having a dominant and optimized online presence on digital media through
smartphone and tablets, contemporary organizations can easily influence the buying behavior of
the customers. According to Franco et al. (2014), almost 82% of the mobile searchers around the
world check on the in-store purchase using their phones. Furthermore, almost 65% of people
look for most valuable and accurate information to their queries through the usage of digital
media. 33% of mobile users ultimately purchase products and services from different brands than
they have in mind because of the information listed. Therefore, it can be said that digital media is
quite effective in managing the strategies of customer attraction.

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On the other hand, Tomše and Snoj (2014) stated that traditional marketing tools are
ineffective to provide detailed information to the customers. Therefore, such marketing tools are
not much effective towards influencing the purchasing behavior of the customers. The limited
information provided through the traditional marketing are less influential on customer attraction
strategies. Digital marketing tools directly direct the customers towards the main websites of the
customers, where they can access detailed information regarding the products and services. Such
detailed information provides clear and accurate ideas of products and services to the customers,
which lead them towards taking purchasing decisions. In this way, digital marketing tools are
quite effective than traditional marketing tools for managing the promotional strategies and
attracting customers.
Strong digital marketing strategies allow diverse business organizations towards
competing with each other on similar line of the sizes. A well structured and reputed website
design, which entitles smooth journey for the customers, can be unparallel in promoting the
products and services. According to Lamberton and Stephen (2016), traditional marketing tools
can be high expensive for the small scale businesses towards promoting their products and
services. On the other hand, Vásquez and Escamilla (2014) opined that designing an attractive
website can be less expensive for the small scale customers than those of traditional marketing
strategies. Moreover, small scale organizations can use same digital media tools and techniques
towards competing with the big companies in the same market. Moreover, well designed and
developed websites facilitate organizations towards attracting the customers in visiting the
products and services.
Furthermore, Wedel and Kannan (2016) stated that websites having easy interface assist
the organizations in selecting their products and services effectively and order for those products

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and services. Therefore, unlike the traditional marketing tools, digital marketing tools like
attractive websites help even the small scale organization towards beating the large scale
organizations. In this way, digital marketing assists in better maintain the competitive strategies.
With such advantage of digital marketing, it has gradually replaced the traditional marketing
tools. While considering the evidence from GoCar Company in Ireland, it can be found that the
organization has attractively designed its websites for easy interaction with the customers. Such
attractively designed websites of the organization provides detailed car service information to the
customers to the customers. Such precisely constructed websites and detailed information
encourage the customers toward taking purchasing decisions (Taiminen and Karjaluoto 2015).
Therefore, the organization can effectively maintain its competitive strategies over the
competitors for gaining competitive advantage.
Tradition marketing tools are limited in direct interaction with the customers. Moreover,
traditional marketing is only concerned with making the customers aware of the existence of the
brands. As per Wedel and Kannan (2016), traditional marketing tools are restricted in gaining
inner perspectives of customers with lack of direct interaction with customers. Therefore,
organizations are incapable of knowing the information about the brand preferences. Moreover,
in traditional marketing, customers are mostly avoided and their concerns are not given much
priority. In this way, ignorance of customer concerns actually leads to customer dissatisfaction.
On the other hand, Taiminen and Karjaluoto (2015) opined that digital marketing tools like
websites and e-marketing even have live chat options for the customers. Such live chat options in
the digital marketing tools facilitate the customers in resolving their queries in details.
Furthermore, the customers can also provide their feedback on these live chat options regarding
the brands.

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Stone and Woodcock (2014) stated that the customers can also communicate their
complaints over these chat options for getting immediate solutions. In this way, organizations
can better provide importance to the customer concerns for getting resolving their issues before
those issues become the reasons for customer dissatisfaction. Therefore, digital marketing tools
are more effective than the traditional marketing tools in maintaining customer retention strategy
towards retaining customers for longer time. In this way, digital marketing strategies have
replaced the traditional marketing strategies in terms of developing customer retention strategies.
According to Tomše and Snoj (2014), digital marketing tools are quite effective than those of
traditional marketing tools in promoting attractive discounts and offerings in real time. With the
limitation of time, customers can often skip the promotional advertisement on their television,
radios and newspapers. However, Taiminen and Karjaluoto (2015) opined that most of people
are becoming highly tech savvy in the today’s world. Therefore, it is easier to persuade the
customers with the attractive discounts and offerings with greater exposure in the digital media
sites. In this way, digital media facilitates the organization in managing their customer loyalty
strategies. Such facilities of digital media marketing have ultimately replaced traditional medial
marketing.
Conclusion
While concluding the study, it can be said that advancement of technology has led the
organizations to be concentrated more on digital media marketing than those of traditional media
marketing. In traditional media marketing, the organizations get lesser scope towards interacting
directly with the customers. On the other hand, in digital media marketing, the organizations can
directly interact with the customers. Therefore, in digital marketing, organizations gain deeper
insights regarding the customer preferences. Furthermore, the customers can also provide their

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preferred suggestions over the brands. In this way, contemporary organizations incorporate
customized values in their products and services through the recommendations provided by the
customers in the digital marketing tools. Such customized value has led the organizations in
replacing the traditional marketing tools with digital marketing tools. Furthermore, increased
customer interaction with the customers over the digital marketing tools facilitates in better
customer relationship, which is not possible in traditional marketing tools.
Unlike the traditional marketing, digital marketing facilitates the contemporary
organizations in enhancing its brand exposure through increased customer referrals. Moreover,
digital marketing tools have the advantage to make the promotional strategies viral. Therefore,
digital marketing tools have ultimately replaced the traditional marketing tools for its increased
brand exposure. Apart from that, designing traditional marketing tools is quite expensive for the
organizations. On the other hand, digital marketing tools are quite less expensive to develop than
those of traditional marketing tools. Therefore, digital marketing tools have replaced the
traditional marketing tools in terms of its cost effectiveness and increased brand exposure.

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