Digital Marketing

Analyzing its Transversal Impact

Editors
Paulo Botelho Pires
Porto Business School, University of Porto, Porto, Portugal
José Duarte Santos
Professor, Accounting and Business
School of the Polytechnic of Porto, Porto, Portugal
Inês Veiga Pereira
Professor, Accounting and Business
School of the Polytechnic of Porto, Porto, Portugal
First edition published 2024
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Preface

Digital marketing is not a new concept, it is not a trend or a passing fad, and it
is not a new phenomenon. It has been around for over two decades and is now
being used in all areas and aspects of marketing. It is imperative to comprehend
the extensive and impactful changes it has caused and continues to cause in the
theoretical framework. This understanding will enable its effective application
in organizational contexts.
This book is an exploration of the pervasive influence of digital technology
on marketing in a variety of areas. As such, it aims to provide the reader with
essential information about digital marketing, outlining its scope, its potential,
and the fundamental elements that should be addressed by the company, such as
the website, social media, advertising, content, and search engine optimization
(SEO). The first chapter introduces the core principles of digital marketing.
Looking at digital in a stand-alone way, without framing it within the
corporate strategy and without thinking about digital as a strategy in itself, is like
looking at the tree and forgetting the forest, thinking only about the immediate
and forgetting the broader dimension of the future business. Thus, the importance
of the second chapter lies in its contextualization of digital marketing within
marketing and its role as a component of strategic marketing.
Digital marketing actions influence how digital consumers behave throughout
their journey. Nevertheless, it remains necessary to consider certain explanatory
and contributory models to capture consumer behavior. In this regard, the third
chapter aims to contribute to the understanding of digital consumer behavior by
highlighting relevant related theories.
The customer needs to be at the center of digital marketing decision-making.
For that, companies need sufficient and high-quality data that facilitates the
decision-making process at operational, tactical, and strategic levels. Digital has
the advantage of bringing companies closer to where they want to go, thereby
enabling a more streamlined insight process. Chapter four complements the
description of traditional marketing research methods with a focus on how digital
media, specifically artificial intelligence applications, can help gather customer-
centric information that can lead to even greater attention to customer needs.
iv Preface

The following chapter highlights the concerns that exist in academic research
and how this research has highlighted some important elements that can contribute
to digital marketing’s transversal impact within organizations.
In a marketing strategy with a digital component, the sales force remains an
important communication tool. The skills and knowledge of the sales force, the
use and profitability of the tools, and the integration with other communication
tools is a constant challenge for companies, which is even more demanding in
digital marketing. A chapter on the subject of the sales force and the extent to
which it is involved in digital marketing could not be left out.
The importance of building digitally enabled customer relationships is
highlighted in chapter seven. Indeed, the two-way interaction between the
company and the customer that digital marketing provides poses challenges at
various levels, from integrating information and communication channels to
making the best use of technology to optimize aspects such as the customer
experience, convenience, engagement, service quality, and the duration of the
relationship itself.
B2B has its own characteristics. The number of people involved in the
decision-making process tends to be different from B2C, and the customer journey,
especially in digital, is also specific. Taking the sales funnel into account, Chapter
8 shows how brand and social media management must adopt specific strategies
to achieve the desired results.
Services are increasingly playing a role in brand differentiation as well as a
source of revenue. Through the digital world, companies are also able to optimize,
innovate, and create new services that contribute to the connection between the
consumer and the brand. Digital has led to the creation of new businesses based
on the provision of services that were not previously available, such as website
certification. The topic of services from the point of view of digital marketing is
therefore also dealt with in this book.
International expansion isn’t typically the easiest thing to do. But with the
help of digital, many companies have the idea that they can have a presence
beyond their home market. Chapter 10 looks at the elements that need to be
considered from a digital perspective to help a company optimize its presence,
starting with the domestic market. After all, the first thing to decide is what is
there to monetize in the digital world.
The contribution of internal marketing to customer satisfaction and other
positive external and internal outcomes associated with its application has not
received much attention from companies. Chapter 11 shows how employer
branding and the use of the internal marketing mix have been boosted by the
integration of digital with new facilities and automation.
One of the sectors of the economy that has had the most significant impact
from digital marketing has been tourism. As a result, Chapter 12 highlights the
most pressing tools and strategies that companies in this sector tend to use to
provide consumers with elements that help them make decisions as they travel.
Preface v

Digital marketing has been widely used by companies seeking to improve

their performance. In a reductive way, this can be analyzed in terms of sales
generated. However, digital marketing is also present in other areas of society,
and it can make a significant contribution to the achievement of the objectives
of non-profit organizations. The role of digital marketing in these organizations
will be highlighted in Chapter 13.
The video game industry has been in a state of reinvention as it has taken
advantage of digital advances. With the advent of new technologies like virtual
reality, or new platforms and concepts like the meta-verse, new challenges are
almost always on the horizon. Ultimately, at this point in time, the question
will be whether video games are the driving force behind digital marketing, or
whether digital marketing is the driving force behind video games. Undoubtedly,
the last chapter of the book “Digital Marketing Analyzing its Transversal Impact
in Marketing” is a must.
In light of the above, we hope that the book will contribute to the enrichment
of the reader’s knowledge of digital marketing.
Paulo Botelho Pires
José Duarte Santos
Inês Veiga Pereira
Contents

Preface iii

Part 1: Introduction to Digital Marketing

1. Advantages and Conditions of Digital Marketing 3

Kai Schleutker, Lasse Lehtonen
2. The impact of Digital on Marketing Strategy 21
Anna Tarabasz
3. The Behavior of the Digital Consumer 38
Pietro Paolo Frigenti

Part 2: Doing Marketing Research

4. The Digital Research Revolution 67

Anna Maria Trzaskowska, Paulo Botelho Pires and José Duarte Santos
5. The Broadening Horizon of Digital Marketing: Investigating
its Transversal Impact 91
Paula González-Padilla, Jose Ramon Saura, Senka Borovac Zekan

Part 3: The Digitalization of Business Sales

6. Digital Technologies and the Issues, Tasks, and Knowledge of

Sales Teams 111
Mika Yrjölä, Pia Hautamäki, Malla Mattila
7. Relationship Marketing in the Age of Digital Marketing 131
Paulo Botelho Pires, José Duarte Santos, Ricardo Silva

Part 4: Business Leveraged on Digital Marketing

8. Pre-Sales and Social Media Strategies’ Role in the Customer Journey 159
Maria Eduarda Pinto Leite, Amélia Brandão, Jorge Remondes
viii Contents

9. The Age of Digital Services Marketing 176

Sebastiano Mereu
10. Go International with Digital Transformation 196
Carla Azevedo Lobo and Fernando Moreira
11. Internal Marketing Supported by Digital Marketing 215
José Duarte Santos, Bruno Sousa, Paulo Botelho Pires
12. Tourism and Digital Marketing 235
Lauren A. Siegel, Hyerhim Kim, Ryan Yung

Part 5: Digital Marketing Expanded

13. Digital Marketing in Nonprofit Organizations: Conceptual

Background and Recommendations for Practitioners 255
Inês Veiga Pereira, Beatriz Casais, Inês Mendes
14. Ensure Video Game Success with Digital Marketing 276
Radoslav Baltezarević, Ivana Baltezarević

Index 291
 Part 1
Introduction to Digital
Marketing
 CHAPTER

Advantages and Conditions of

Digital Marketing

Kai Schleutker,* [0000-0002-8074-9614] and Lasse Lehtonen [0009-0009-4108-3651]

Turku University of Applied Sciences, Finland

1. Introduction
By definition, digital marketing (also called online marketing, e-marketing,
or internet marketing) refers to the promotion of products or services using
digital technologies (Wind & Mahajan, 2002; Charlesworth, 2014) or channels
(McStay, 2017). Digital marketing takes place mainly on the Internet, but also
on mobile phones, display advertising, and any other digital medium (Ryan,
2016; Desai & Vidyapeeth, 2019; Kingsnorth, 2022). According to Chaffey and
Ellis-Chadwick (2019), digital marketing is the heart of the digital business,
bringing the business closer to its customers, allowing them to get to know
them better and add value to the product, expanding distribution channels, and
increasing sales through the execution of marketing campaigns.
Although digital marketing operations for some time were regarded separately
from other marketing tasks (McStay, 2017), this separation keeps diminishing.
The reasons are quite clear – the objectives of all marketing activities are similar,
namely, create awareness, improve a business brand, generate sales, and guide
potential buyers to other wished actions (Charlesworth, 2014; Kingsnorth, 2022b;
Ryan, 2016). A clear benefit of digital technology is that it allows targeting adverts
to strictly focused audiences, getting them into mutual communication, tracking
potential buyers, and engaging them with tailored content (Charlesworth, 2014).
Consequently, businesses and organizations have detected the Internet as
a modern marketplace, creating continuously new forms of marketing besides
traditional marketing forms. Digital marketing operations offer the possibility to

*Corresponding author: [email protected]

4 Introduction to Digital Marketing

reach goals cost-effectively, making them attractive to almost any size of business
(Bala & Verma, 2018; Peter & Vecchia, 2021).
However, for a marketer, the increasing assortment of instruments and
channels also causes several considerations. First, marketing operations always
involve making choices to reach the target audiences and objectives at the lowest
possible cost. Second, most organizations hesitate with defining their target
audience and creating messages and content that have an impact on them. In
this chapter, the essential digital marketing forms and their usability for reaching
various business goals are presented, by taking into account the conditions that
are needed as well as the advantages that can be obtained. To offer a scenario
for systematic marketing messages and content, the customer journey approach
is connected to this presentation.

2. Features of Digital Marketing

2.1. About Marketing and Goals
In the bigger picture, marketing aims to connect the product and the customer
and make sure that the product finds demand and is easily available. According
to Kotler (1972), the role of marketing communication is to make potential
customers aware of the business and create and upraise the need for its products
and services. The final goals are to engage them and help them to make the
buying decision. Communicating features and values that are relevant to the
audience, contribute to improving the brand of a business. In practice, this is
conducted by campaigns in a wide range of media, specific to the target audiences
(Kotler, 1972). In most business fields, there is harsh competition wherefore it is
essential to be aware of the competitors and stand out from them.
Marketing also encompasses the functions that make the products and services
available and support the whole buying process, covering various stages. In fact,
only a few purchases, mostly related to daily-based products, take place instantly,
whereas the majority of special consumer ware and most B2B products involve
a process, also called the “customer journey” (Lemon & Verhoef, 2016) or the
“marketing funnel” (Colicev et al., 2019). These approaches, i.e., considering each
customer journey as a process, enable the marketer to produce marketing messages
and publish them at the right time and right place. Particular customer touch
points can be detected in this journey (Lemon & Verhoef, 2016), for instance,
the potential buyer becomes aware of the brand through social media or a TV ad.
Overall, the previously mentioned goals are valid also for online marketing
operations. Their aim is similar – to create awareness, improve the business
brand, and of course, engage website visitors and lead them to the desired actions
(Chaffey & Ellis-Chadwick, 2019; Charlesworth, 2014), for instance, purchase.
The recently changed behavior of consumers and business buyers has underlined
the benefits of being available on the Internet (Cheng, Blankson, Wang & Chen,
2009). First, the number of web users keeps growing steadily, and the time spent
Advantages and Conditions of Digital Marketing 5

online seems to be increasing constantly (Gartner, 2022). Second, buying behavior

is turning online: the majority of buying processes start on the Internet (Ryan,
2016), for instance, by a search, reading a blog, or being inspired by a post or
ad in social media.
One major advantage of digital platforms is that they offer an option for
tracking visitors’ behavior and reacting to them instantly, guiding them toward
wished actions (Charlesworth, 2014). These options are not available in traditional
marketing. In addition, online marketing allows marketers to reach large,
previously unknown audiences, launch campaigns, and adjust them according to
the target group (Ryan, 2016).

2.2. Advantages of Digital Marketing

As digital marketing happens on the Internet, it has exploded the concept and
size of the market, uniting millions and billions of web users to a huge potential
global audience. Where traditional marketing is highly dependent on specific
media and their readers, the Internet has the potential to make any website
accessible to basically all web users (Chaffey & Ellis-Chadwick, 2019; Ryan,
2016). Businesses and other organizations can benefit remarkably from the
combination of global visibility and reach, making it easier than ever before to
go international and establish new networks. Even a small local business owner
can use an online store to connect with customers across the world.
The second remarkable advantage of online marketing is the flexibility offered
by digital platforms (Chaffey & Ellis-Chadwick, 2019; Ryan, 2016). While the
production-publishing life cycle for content and campaigns took several days in
printed media, in digital media parameters, such as content, target audiences, and
durations can be edited and adjusted instantly.
Moreover, most digital platforms track and utilize their visitor data, refining it
to specific profiles regarding demographic and behavioral features, including their
topics of interest, prior buyer behavior, and networks they belong in (Charlesworth,
2014). As a result, they can offer target groups with appropriate volumes and high
precision. This enables marketers to focus on the right audience with reasonable
costs. An appropriately planned and well-targeted digital marketing campaign is
likely to reach the right customers at a remarkably lower cost than traditional
marketing methods would allow (McStay, 2017). This is one more argument to
underline their usability to all sizes of organizations, even the smallest ones.
While digital platforms are flexible and offer adjustability, they also offer
sophisticated tools for measuring and analyzing visitor behavior (Chaffey
& Ellis-Chadwick, 2019). Such analytics allow the marketer to inspect the
dynamics of the campaign in a very detailed form, e.g., how many clicked on
the ad and how the visitors acted on the website. In addition, visitors can be
intentionally encouraged to leave their contact information against certain rewards
throughout the whole buying process. This is a vital way to collect quality leads
(Ryan, 2016).
6 Introduction to Digital Marketing

In a larger frame, digital channels allow visitors to react to the messages

and participate in discussions in a two-way mode, called ‘inbound’, whereas
traditional media, eg., newspapers, TV, and radio, are typically one-way, also
called ‘outbound’, without the possibility to reform and share a message
(Steenburgh et al., 2009). This kind of two-way communication is a key element
to nurture mutual understanding and trust between businesses and their customers
(Charlesworth, 2014; Ryan, 2016). Additionally, digital platforms allow people to
share content by their own will and initiative with their followers and networks.
This can lead to considerable publicity and visibility to big audiences, without
any costs to the marketer himself (Kingsnorth, 2022b).

2.3. General Conditions for Conducting Digital Marketing

While online marketing offers access to a global audience, every marketer is at
the same time up against international rivalry. There is a considerable number
of actors almost in any branch, and it grows steadily. As the digital market is
attractive for all sizes of businesses, the countless ads shown to consumers online
might make it difficult to stand out from the competition and attract attention. As
for the consumers, they may, over time, even get confused and saturated by the
ever-growing exposure of ads (Kingsnorth, 2022).
As in all marketing, online marketing activities need an actionable marketing
plan and strategic outlines (Kingsnorth, 2022a). Should we start on social media?
Or with content marketing? What is the role of search engine optimization (SEO)?
What can be achieved with analytics? For smaller businesses particularly, this
may be challenging due to the versatility of options and lack of skilled workforce.
It is obvious that online marketing needs new types of skills to make relevant
start-stage decisions and manage operations. This resource can either be hired
or it can be bought from digital agencies. While large enterprises can afford a
team or department for digital marketing operations, small and medium-sized
companies typically have few multitasker employees for carrying out these (Peter
& Vecchia, 2021).
The need for skilled staff is further underlined by the continuous need of
following the website and social media accounts and updating them (King, 2008;
Tuten & Solomon, 2017). As an example, the business website must be optimized
to reach the top ten in search results, and reactions on social media accounts need
attention. These tasks may be time-consuming and the return on the investment
in staff is likely to take some time.
Taking full advantage of digital marketing also implies an appropriate usage
of area-specific tools and software (Charlesworth, 2014). These can be utilized
for testing and improving the website, tracking the website traffic, generating
leads, and so on. Again, the large number of options creates a challenge of
choice for anyone responsible for digital marketing operations, suggesting
continuous in-service training of these professionals (Ryan, 2016; Peter &
Vecchia, 2021).
Advantages and Conditions of Digital Marketing 7

Finally, digital marketing essentially involves the collection of visitor data

and forming of databases (Kannan, 2017). Regarding them, there are a variety of
legal considerations around the collection and use of client data for the purposes
of digital marketing, including security and privacy concerns. Complying with
these rules, continuously updated, is an additional issue to take into consideration
by those involved in respective working tasks. Similarly, different kinds of
conduct regarding information and cyber security do typically cause considerable
additional work (Ryan, 2016).

2.4. Potential Outcomes of Digital Marketing Operations

Although the overall objectives are similar in traditional and digital channels,
the flexibility and measurability of online platforms offer us the possibility to
scrutinize the marketing process in a much more detailed way than previously
(Charlesworth, 2014; Kingsnorth, 2022b). In the digital customer process, steps
become more visible, and individual actions can be observed, allowing us to
state certain steps in the customer process. This process is called the customer
journey, or the marketing funnel, presented later on.
Before going to the digital marketing operations that are aimed to accelerate
the customer process, it is necessary to shortly mention the main elements
needed for starting online marketing. As people spend ever more time on the
Internet, and the buying processes are increasingly initiated there (Ryan, 2016),
every organization is supposed to have a website (Wind & Mahajan, 2002).
Compared to traditional options for storing and displaying information directed
to visitors and customers, the online website is superior for its 24/7 availability,
for the most part without attending personnel needed (King, 2008). A business
can make the website an attractive showroom for current and future customers
as its storage capacity is almost endless (King, 2008; Wind & Mahajan, 2002).
However, any website needs strong promotional activities, as the Internet is full
of websites that compete with each other for web users´ attention (Chaffey &
Ellis-Chadwick, 2019).
Additionally, most organizations have the option to meet their customers
on social media, for which purpose it is recommendable to have organizational
accounts on the most relevant media. LinkedIn, Youtube, blogs, and other social
media allow organizations to post news, share their expertise, increase their
visibility, and run targeted ad campaigns (Evans et al., 2021).

2.5. Digital Marketing Strategy

A digital marketing strategy encompasses a holistic view of the current and
future states of the organization, comprehending the organizational strengths and
weaknesses, growth objectives, and target audiences (Chaffey & Ellis-Chadwick,
2019). Essentially, the strategy suggests the measures to be taken in marketing
to reach the objectives set. As such, it is highly needed to conduct successful
marketing campaigns. Astonishingly, a remarkable share of marketing spend
8 Introduction to Digital Marketing

does not give satisfactory results (Gartner, 2022), and nearly 40% of marketers
are reported to consider their digital marketing strategy ineffective (Gartner,
2022). This failure is mainly due to a lack of strategic objective-setting and a
comprehensive approach to digital marketing operations (Kingsnorth, 2022a).
In essence, a properly formed strategy helps marketers to name target
audiences and set relevant objectives, applicable throughout campaigning.
Moreover, it enables marketers to identify the customer touch points and critical
actions for each stage of the customer journey. Reflecting campaign analytics data
against strategic objectives provides a systematic indication of past marketing
performance, and suggests measures to improve reach and conversion.

2.6. Digital Customer Journey

The concept of “customer journey” is being used for displaying the process
that average users pass in their buying process (Colicev et al., 2019). The
basic idea is that few products or services are bought instantly, by one single
decision. Instead, there is a process starting from ‘awareness’ and ending
with a ‘purchase’, or even ‘advocacy’, referring to a satisfied customer who
recommends the product to his/her friends. Before a potential purchase, there
is normally an arising stage of interest, taking place after awareness. In this
stage, people usually want to know more about the product, its abilities, other
users, and their experiences. If the interest remains and gets stronger (desire),
additional information is searched intentionally and critically, and the product
is compared with peer products (evaluation). Naturally, the steps are optional,
and the process does not necessarily lead to a purchase. In addition, individual
customers may have different routes (Colicev et al., 2019).

Figure 1. The “customer journey” displays the stages of the buying process.

The customer journey consists of a variety of touchpoints, i.e., media or

other contacts where potential customers receive information or impressions
Advantages and Conditions of Digital Marketing 9

regarding the product or the brand behind it. Along with the upcoming digital
media, the variety and number of these points have increased considerably,
offering interesting options to reach customers at the right time during their buying
process (Lemon & Verhoef, 2016; Ryan, 2016). Most of the digital touchpoints
are located either on the organization´s website or its social media accounts.
Some of them may be ‘paid’, located on other digital platforms, in the form of
ads (Charlesworth, 2014).
Overall, for a marketer, this illustration is useful in many ways, as it offers
an indication of which digital media to meet the customers on, and which kind of
content and messages will be most appropriate for them (Lemon & Verhoef, 2016).
Next, we will deal with some essential forms of digital marketing that a
marketer needs for enhancing the customer process.

3. Main Forms of Digital Marketing

3.1. Website and SEO
A website is a key element in online marketing operations as it allows businesses
and organizations to showcase their products, services, or ideas, and provide
information to potential customers or visitors. A website can display versatile
information about the company and its products in many formats, such as text,
pictures, video, and links to other websites and external sources located on the
Internet (King, 2008; Wind & Mahajan, 2002). Yet, the website – such as any
physical store – is only useful when it has a visitor flow. As the Internet has
approximately two billion websites (Gartner, 2022), any website is posed to
remarkable competition among all websites and users. For this reason, a primary
effort lies in attracting visitors to any business website. This can be reached in
two main forms, first, optimizing the site´s appearance in search engines, and
second, driving traffic to the website by paid campaigns (Kingsnorth, 2022b).
As a considerable number of buying processes start with searches, SEO is a
must-do for all businesses that receive customers through their websites. When a
website appears at the top of the search results, it is more likely to attract clicks
from potential customers and get them to land on the website (Wind & Mahajan,
2002). Consequently, it is essential to make a website more attractive to search
engines like Google or Bing to become well-ranked by them. This can be reached
by using relevant keywords, creating relevant content, optimizing page titles and
meta descriptions, improving website speed, usability, and mobile responsiveness,
and linking the site to other sites with backlinks (Kingsnorth, 2022b). SEO is
crucial because it helps potential customers to find a website exactly at the right
moment, i.e., when they have a need and are searching for relevant information
or products and do searches for them (Charlesworth, 2014). Of course, this is
just the start of the buying process, as the elements on a website must also be
able to guide the visitor further toward desired actions (Kingsnorth, 2022a;
Ryan, 2016).
10 Introduction to Digital Marketing

Consequently, SEO embodies also measures that improve a website’s content

and structure, to make it user-friendly. In addition to an appealing graphical
layout and clear structure, this embraces elements that create trust and responds
to the needs of visitors (Charlesworth, 2014). Most of them have clicked a link
and expect to find some kind of additional information that is useful for them.
In this respect, the customer journey (ref. to Figure 1) is a useful element for
defining these needs and providing sufficient information for visitors in different
stages of their search process. This topic will be handled more in the subchapter
content marketing.
The mentioned measures are crucial especially for newly established
organizations, as they may not have been able to earn remarkable organic visitor
traffic to their sites. For building up the basic website and its search engine
optimization, a skilled workforce is needed. While big organizations have access
to this competence, or they can buy it, smaller organizations may face challenges
in doing so. As a consequence, smaller organizations are often experiencing a
lack in their digital performance (Bala & Verma, 2018; Peter & Vecchia, 2021).

3.2. Social Media

Social media refers to online platforms and tools that allow individuals,
businesses, and organizations to get connected and communicate with each
other and share information, content, and media (Tuten & Solomon, 2017).
Social media platforms have typically open access and the right to post and
publish, enabling users to create profiles, connect with others, and engage in
social interactions such as commenting, liking, and sharing (Evans et al., 2021).
Some of the most popular platforms in 2023 are Facebook, Twitter, Instagram,
LinkedIn, YouTube, TikTok, and a wide variety of blogs.

3.2.1. About the platforms

Social media platforms have been created for commercial purposes, to attract
large audiences and in this way become interesting for advertisers (Charlesworth,
2014). Each of the platforms has its profile regarding content type and form
as well as topics of interest. While the miscellany of platforms implies an
outstanding possibility to reach different kinds of users, for a business the
decision to choose the right ones may be hard to take (Evans Bratton & McKee,
2021). On the other hand, it also helps to exclude platforms that are not crucial.
First, there are differences in audience demographics, i.e., the profiles of the
platform’s users. Each social media platform has a unique audience demographic
based on factors such as age, gender, education level, and interests (Charlesworth,
2014). For example, Instagram has a younger audience than Facebook, while
LinkedIn is more popular among professionals.
In addition, users tend to use social media platforms differently depending on
the context and their needs (Ryan, 2016). For example, LinkedIn is often used for
networking and recruiting, while Facebook is used for sharing short impressions
and following influencers.
Advantages and Conditions of Digital Marketing 11

Third, different social media platforms offer different features and

functionalities, such as text posts, image and video sharing, messaging, live
streaming, and e-commerce integrations (Dwivedi, Kapoor & Chen, 2015). The
platforms also vary in the types of content they support (Evans et al., 2021).
For example, Instagram is primarily focused on visual content, while Twitter is
known for short-form text-based posts.
As a further feature, each social media platform has its own options, targeting
capabilities, and pricing models (Evans et al., 2021). Although they are easy to
use, the marketer should be aware of these, to define the cost-effectiveness of
the optional platforms.

3.2.2. What can be reached on social media?

While social media originally were used for private purposes, such as the desire
to educate and entertain others, to define oneself, and to build and maintain
relationships, their character, and use have altered. Social media platforms have
changed from being just a family-social environment to being utilized in other
ways and larger networks that have a meaningful impact on society (Evans et al.,
2021). Even businesses have learned to adapt to social media by communicating
in a more personal and individual way. For instance, businesses have started
doing recruitment on Instagram, and business videos are published on Youtube
and Tiktok. In addition, many companies regularly publish blog content.
Social media can support several key marketing outcomes at all stages of
the customer journey.
At the start of the buying process, many buyers may get their first impulse
through a social media post from a friend, a business, or even an ad on social
media. By creating engaging content, sharing updates and news, and interacting
with followers, businesses can increase their visibility and exposure to potential
customers (Kingsnorth, 2022b). The most interesting and appealing content may
even be shared, thus resulting in a wide audience, without any costs.
Second, social media can be used to drive traffic to a business’s website or
landing pages. By sharing links to blog posts, product pages, or special offers,
businesses can encourage followers to click through to their website and explore
their offerings (McStay, 2017). This may be essential for newcomer products and
businesses in particular, not having gained organic traffic on their website yet.
For many businesses, social media provides a modern platform for customer
engagement and support. Along with customers going online, businesses need to
interact with customers, answer questions, and provide support digitally. These
activities support customers who are in the stages of consideration or retention
in the buying process. By responding promptly and professionally to customer
inquiries and feedback, businesses can build trust and loyalty with their audience,
thus improving their brand image (Lemon & Verhoef, 2016).
Moreover, LinkedIn, blogs, or other social media can be an effective tool
for generating leads and building a database of potential customers. Followed by
targeted ads or offering exclusive content or promotions, businesses can encourage
12 Introduction to Digital Marketing

users to provide their contact information and express interest in their products
or services (Evans et al., 2021).
Finally, social media can also be used to manage a business’s online reputation
by monitoring and responding to reviews, feedback, and mentions. By addressing
negative comments and highlighting positive feedback, businesses can maintain
a positive brand image and protect their reputation (Dwivedi et al., 2015).

3.2.3. Advertising on social media

Most social media platforms offer easy-to-use tools for creating adverts and
campaigns. To advertise on social media, you only need to create a business
account. Advertising on social media enables businesses to reach a wider
audience than they might be able to through organic social media posts alone,
as the ads are shown to a wide audience, defined by the advertiser (Lee, 2020).
By targeting specific demographic groups and interests, businesses can reach
previously unknown users who are most likely to be interested in their products
or services.
Further, most social media platforms allow businesses even to create highly
targeted ad campaigns, based on factors such as age, location, interests, and
behavior. This enables businesses to create more relevant and personalized ad
content for the right audiences, reducing impressions to audiences that are not
likely to react (Evans et al., 2021). This will vitally increase engagement and
conversions.
An additional advantage is that social media advertising is flexible, allowing
marketers to adjust their campaigns at any moment, and experiment with different
ad formats and creative content, such as images, videos, and carousel ads
(Charlesworth, 2014). This provides businesses with a high degree of creative
flexibility and enables them to test and refine their ad content to improve
performance.
Moreover, social media advertising is mostly a considerably cost-effective
way for businesses to reach their target audience. Many social media platforms
offer flexible pricing models, such as pay-per-click or cost-per-impression, which
can help businesses optimize their ad spend (Dvideli et al., 2015). In detail, the
prices are often determined in a platform-internal auction where certain target
groups and topics with high demand tend to be more expensive than others with
lower demand and advertiser competition (Kingsnorth, 2022b).
An additional advantage is that this type of advertising provides businesses
with measurable results and insights, including data on impressions, clicks,
engagement, and conversions (Charlesworth, 2014). This enables them to track
the effectiveness of their ad campaigns and make data-driven decisions about
future marketing efforts.

3.2.4. Conditions for social media

Being cost-effective and easy to use, social media advertising can be considered
highly useful even for small businesses and organizations. Yet, certain conditions
Advantages and Conditions of Digital Marketing 13

must be fulfilled to gain these advantages. First, it is essential to choose the right
channels. Before entering any platform, a business should consider the content
and form that its target audiences typically consume and select the platform
upon this consideration.
Second, participating in social media needs dedicated staff and writing skills,
combined with marketing skills. The responsibilities of posting frequent updates
and keeping up a good relationship with every one of your followers can be
difficult to meet. Controversial or disrespectful postings or ads can irritate clients,
and even make them unfollow you on social media (Dvideli et al., 2015). The
more experience obtained, the better the ability to post and comment in a way
that awakens interest and trust.
Next, as social media adverting is relatively easy and inexpensive, a huge
number of advertisers may be struggling for the same consumers (Evans et al.,
2021). As only a few advertisers have the privilege to have unshared attention
by them, it implies a necessity to create outstanding ads that awaken interest and
actions. Furthermore, it seems that an overflow of ads on social media may lead
to saturation among users, turning them unwilling to see ads or react to them
(Kingsnorth, 2022b).

3.3. Digital Advertising

In addition to social media advertising, handled in the previous paragraph, digital
advertising refers to promoting products, services, or brands through other digital
channels, such as search engines, websites, and mobile apps. It involves the use
of various ad formats, such as display ads, local ads, native ads, video ads, and
sponsored content (Charlesworth, 2014; Kingsnorth, 2022b). Digital advertising
platforms are operated by Google and other search engines, as well as local and
international media enterprises (Cheng, Blankson, Wang & Chen, 2009; Lee &
Cho, 2021), and they reach practically all Internet users (Bala & Verma, 2018).
As an example, the Google Display network covers more than 30.000 popular
national and international media and websites (Gartner, 2022).

3.3.1. Types of digital ads

In the digital customer journey, digital advertising plays an essential role,
especially in the starting stages (Colicev et al., 2019; McStay, 2017). Practically
all of us have been posed to digital advertising in search engines and other
advertising platforms. Often, digital ads aim to make people aware of a product
or service and create a need to research further about it. As such, they may act
as triggers that lead us to something we did not know before. Nevertheless, in
digital platforms, we can also face reminders, ads that keep us interested in a
brand and its existence (McStay, 2017). These types of ads typically serve for
the retention stages in the buying process (Colicev et al., 2019).
Another important role of digital advertising is to attract visitors to a website
(Cheng, Blankson, Wang & Chen, 2009). Most digital ads encourage you to click
a link and enter a certain website, by including an offer or promotion.
14 Introduction to Digital Marketing

Search engine ads. When using search engines, we may see ads on the top of
the results page. Search engine advertising is vital for any product or service that
is searched on the Internet, as it can make them available at the very moment that
there is a need for them (Charlesworth, 2014). Although quite a few people click
on these ads, they generate visibility and thus increase awareness (Lee & Chou,
2020). The ad itself is anchored to keywords, containing text and a link to the
company’s website, usually a particular landing page designed especially for the
ad in question. A special type is a shopping ad that refers to product placement
on top of the search results (Kingsnorth, 2022b).
Display advertising refers to banner and multimedia ads, covering a variety of
forms, including static images, animated graphics, or video content (Kingsnorth,
2022b; Lee & Chou, 2020). They are typically placed in prominent positions on
websites or social media platforms to attract the attention of users. Display ads
can be targeted based on a variety of factors, including demographics, interests,
behaviors, and search history, allowing businesses to reach their desired audience
with precision and relevance (Taylor, 2009).
Display advertising often operates on a pay-per-click (PPC) model, meaning
that businesses only pay when users click on the ad or take another desired action,
such as submitting a form or making a purchase. Another base for payment is the
number of impressions, called cost-per-mille (CPM) (Taylor, 2009; Kingsnorth,
2022b).
Along with the rapidly evolving techniques and platforms, digital advertising
keeps taking new forms. Native advertising involves placing sponsored content in
the form of articles, videos, or other content formats. Seeming to be part of the
authentic content, the power of this advertising type is that it blends seamlessly
with the user experience (Kingsnorth, 2022a).
Furthermore, Google offers a widening range of ad formats, such as local
ads, shopping ads, smart ads, and discovery ads (Google, 2023).

3.3.2. Advantages of digital advertising

Digital advertising can be a cost-effective way for businesses to promote their
products or services, particularly when compared to traditional advertising
channels such as TV, radio, and print. The key advantages of digital advertising
are similar to those of social media advertising.
Digital advertising, independent of the platform, allows businesses to target
specific audiences based on demographics, interests, and behavior (McStay, 2017).
They can enable this by processing and making use of their extensive user data
(Lee & Cho, 2020). This allows advertisers to reach users who are most likely
to be interested in their products or services.
Digital advertising also provides flexibility and control, enabling advertisers
to adjust their campaigns in real-time based on performance metrics such as
impressions, clicks, and conversions (Taylor, 2009). This is a huge opportunity
when compared with advertising in traditional media. As digital advertising
Advantages and Conditions of Digital Marketing 15

platforms offer a range of metrics and analytics tools (Lee & Cho, 2020),
advertisers also get measurable results in real-time. This allows them to track the
performance of their campaigns, providing valuable insights into the effectiveness
of their messaging and targeting, and improve them accordingly.
In addition, digital advertising is often a cost-effective way for businesses
to promote their products or services, particularly when compared to traditional
advertising channels such as TV, radio, and print (Charlesworth, 2014). The prices
of ads and campaigns are related to how requested the target group or media
are by other advertisers. In many cases, advertisers have the option to choose a
payment base and to define campaign budgets, and thus optimize their ad spending.
By using display networks offered by the advertising media, advertisers have
the option to precise location, i.e., to place their ads on websites and digital
publications where their target groups are expected to be available. By using
geographical targeting, the ads and campaigns can even be directed to specific
locations, such as cities or regions. Moreover, advertisers are offered a range of
creative options regarding the ad format, allowing businesses to choose those
that best suit their overall messaging and audience. Recently, display networks
offer the option to position the ads according to the stage of the buying process
in which the receivers are supposed to be (Google, 2023).

3.3.3. Conditions
Although digital advertising offers businesses and advertisers a powerful and
flexible tool for creating awareness and driving traffic to their websites, there
are some conditions and restrictions to take into account. An essential condition
is the ability to define the target groups and know where these are likely to be
found in the digital platforms.
Further, marketing should always be goal-oriented. Therefore, advertisers
must be able and willing to monitor the performance of their digital advertising
campaigns to ensure they are meeting their objectives and achieving good yields
for the money invested (ROI [return on investment]). This includes analyzing
metrics such as click-through rates, click prices, conversion rates, and cost per
acquisition, and reacting to them when necessary (McStay, 2017).
In addition, advertisers must cope with the guidelines and policies regarding
the type of content that can be advertised on the platforms (Lee & Cho, 2020).
For example, some platforms may prohibit certain types of products or services
or may require ad content to comply with specific standards for language,
images, or formatting. There may also be restrictions on targeting to comply
with, such as age, location, and interests. Some platforms may prohibit certain
types of targeting, such as targeting based on race, religion, or other protected
characteristics. Digital advertising campaigns and data collection involved with
them must also comply with various privacy regulations, such as the General
Data Protection Regulation (GDPR) in the European Union or the California
Consumer Privacy Act (CCPA) in the United States. Advertisers must ensure
16 Introduction to Digital Marketing

that they obtain appropriate consent from users before collecting or using their
personal data (Chaffey & Ellis-Chadwick, 2019).
One more potential factor to restrict or hinder digital advertising is the
saturation that was described in the previous chapter. As advertising offers
potential for millions of businesses worldwide, users get posed to ever more ads
when navigating on websites. This may possibly affect click rates and conversion,
thus making the current advertising formats less attractive (Evans et al., 2021).

3.4. Content Marketing

By definition, content marketing covers the production, publication, and sharing
of material that is useful for a target audience (Rowley, 2008: Baltes, 2015).
This approach establishes expertise, promotes brand awareness, and replies to
potential questions and doubts that customers have during their buying process
(Charlesworth, 2014; Kingsnorth, 2022b). Quality content related to a brand also
contributes to search engine optimization (Chaffey & Ellis-Chadwick, 2019). As
for possible content formats, they might be relevant articles, videos, podcasts,
and other media, published on the website, or linked to it from other channels
(Charlesworth, 2014).

3.4.1. Content to support the customer journey

As customers move through the buying process on various websites that deal
with their topic, quality websites are expected to provide additional information
for convincing them and finally, make a purchase decision (Rowley, 2008;
Kingsnorth, 2022). For this reason, website content plays a critical role in
guiding visitors through the customer journey, from initial awareness to making
a purchase or taking another desired action (Colicev et al., 2019). A well-
designed website with clear calls-to-action (CTA) can help to guide customers
through the purchase process, from adding items to their cart to completing the
checkout process (Rowley, 2008).
At the awareness stage, visitors may be unfamiliar with the brand or product.
Creating informative and engaging content that speaks to their needs and interests
is likely to capture their attention and encourage them to explore further (Colicev
et al., 2019). When proceeding to the consideration stage, visitors are actively
researching and evaluating the product or service, and searching for alternative
information and user experiences (Cheng et al., 2009). Creating detailed product
descriptions, comparison charts, and customer testimonials can help build
credibility and address common questions and concerns (Charlesworth, 2014).
At the decision stage, visitors are ready to make a purchase or take another
desired action. Creating clear and compelling calls to action, such as “buy now”
or “request a quote,” can help to guide visitors toward the desired action and
make it easy for them to take the next step (Lee & Cho, 2020). Even in the post-
purchase stage, website content can continue to play a role in raising customer
satisfaction and nurturing customer relationships (Lemon & Verhoef, 2016).
Advantages and Conditions of Digital Marketing 17

Publishing user testimonials, helpful how-to guides, and other types of content
can help customers get the most out of their purchase and thus build confidence
and brand loyalty (Kingsnorth, 2022b).
Creating relevant content and targeting it to the different stages is a vital
tool for any business that gains customers through the Internet. However, many
websites seem to miss sufficient content for this purpose (Gartner, 2022). One
reason may be that many businesses, in the small and medium sectors in particular,
may find it challenging to produce such content (Peter & Dalla Vecchia, 2021).
Yet, writing good content is most naturally conducted by the staff itself, as they
know both their business and the needs of their customers (Rowley, 2008). In
larger organizations, a common solution is to outsource the production of content
(Peter & Dalla Vecchia, 2021).
Besides the work of creating the content, decisions must be made about which
media to publish content in a way that gives optimal leverage for it. A common
rule is to try to multiply the effect, i.e., publish in as many media and channels
as possible (Rowley, 2008), and again, use channels where potential customers
can be found (Charlesworth, 2014; Chaffey & Ellis-Chadwick, 2019).

3.4.2. Conditions for content marketing

Producing good content involves several key steps and considerations. First,
it is important to understand who your target audience is and which stage of
the buying process they are at. In the stage of awareness creation, concise
product information may have the best impact, whereas, in the consideration
and comparison stage, problems and doubts should be solved. Creating high-
quality content involves writing clear, concise, and compelling copy that speaks
to the target audience (Charlesworth, 2014). Using images, videos, and other
visual elements can help make the content more engaging and shareable, while
it can also help break up large blocks of text and make the content more visually
appealing (Rowley, 2008).
Moreover, researching the business’ topics regularly, including keywords and
industry trends, enables keeping the content timely and accurate (Kingsnorth,
2022b). It can also help identify gaps in existing content and opportunities to
provide unique insights or perspectives. A simple, useful way is to have people
from the customer surfaces engaged in the process of content creation, as they
have the most comprehensive insight into the customers (Lemon & Verhoef, 2016).
In essence, it is recommended to act systematically, to ensure that all target
groups are taken into account. Moreover, a systematic plan helps to find ideas
for content, often related to the course of the year, or season that are typical for
the company (Chaffey & Ellis-Chadwick, 2019). Creating an outline or content
plan as a part of the yearly marketing plan can help ensure the content is well-
organized and easy to follow. This can also help to identify areas where additional
research or resources may be needed (Rowley, 2008).
18 Introduction to Digital Marketing

3.4.3. Content and SEO

Proper content contributes to the website’s SEO by providing a positive user
experience and optimizing for search engines. As content length is one of
the most prominent criteria for search engines, it is recommended to include
considerable content on the website, as well as in other own media, linked to
the website (Kingsnorth, 2022a). Incorporating relevant keywords and phrases
into the website content is likely to improve search engine rankings and make
it easier for users to find the website. However, it’s important to avoid keyword
stuffing and instead, focus on creating high-quality, valuable content that meets
the needs of your target audience (Baltes, 2015). Virtually, this kind of content
is also more likely to be shared by readers on their own media and channels
(Tuten & Solomon, 2017). This, in turn, increases the number of backlinks to
the website, raising the SEO quality score of the site.

4. Conclusion
This chapter aimed to introduce digital marketing and its different forms
as modern and cost-effective options that can be used in any organization.
Undoubtedly, we can find a lot of potential in its worldwide reach, flexibility,
tracking options, and cost-effectiveness. However, it should be clear that, despite
its potential, online marketing is not a wonder box without conscious planning
and strategy. Like in marketing always, the starting point is to be interested and
aware of the customers, and the ability to define their needs and which media
to meet them in.
The forms of digital marketing were superficially presented in a cost-outcome
ratio, intending to compare potential advantages with conditions and efforts that
are involved. It is evident that the digital market already offers a wide range of
tools for marketing purposes, and accordingly, for many organizations, the first
challenge lies in where to start. A simple rule is to get back to defining the target
groups of the business and the digital media they can be found in, and start a
presence in those specific media. In this way, marketers can start applying digital
marketing operations with small steps and develop them by gaining experience.
Another cornerstone for digital marketing, essentially associated with this
chapter, is to combine customer journey thinking with strategic planning of digital
operations. It suggests that in most cases, purchasing services or goods involves
a process with deepening needs, questions, and knowledge of the topic. Knowing
that most buying processes start on the Internet, we can define that marketing,
whether traditional or digital, yields better results when focusing on identifying
these stages and providing the buyer with relevant information and messages at
all stages. This approach even provides a marketer with relevant topics for overall
content production on the website and marketing messages.
Advantages and Conditions of Digital Marketing 19

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 CHAPTER

The Impact of Digital on Marketing

Strategy

Anna Tarabasz* [0000-0002-6819-517X]

College of Interdisciplinary Studies at Zayed University, United Arab Emirates

1. Introduction
Digital technology has revolutionized the marketing landscape, requiring
businesses to embrace digital solutions for competitiveness. In today’s digitally
connected world, traditional marketing approaches are being challenged by rapid
advancements in technology (Dasser, 2019). The rise of digital channels and
platforms has transformed the way businesses engage with their target audiences
and has fundamentally reshaped consumer behavior (Pascucci et al., 2023).
Digital marketing has become an integral part of almost every business, shaping
perceptions, preferences, and purchasing decisions (Katsikeas et al., 2020).
Consumers, due to constant internet connectivity, have instant access to a
plethora of information, reviews, and price comparisons. Especially the transition
from desktop to mobile-enabled easy access to much-needed information along
with geofencing has therefore blurred the boundaries between online and offline
experiences (Tarabasz, 2021).
Having the same in mind, businesses shall provide personalized and seamless
interactions across multiple digital touchpoints following an omnichannel
marketing approach. To thrive in this digital age, marketers must adapt their
strategies to meet the evolving expectations and demands of digital consumers.
Personalization, relevance, and a flawless customer experience are crucial
factors for success (Chandra et al. 2022). Leveraging data analytics, Artificial
Intelligence (AI), and customer journey mapping enable businesses to gain a

*Corresponding author: [email protected]

22 Introduction to Digital Marketing

deeper understanding of their target audience and deliver tailored experiences

(Zaki, 2019).
The shift towards digital solutions has disrupted traditional marketing
approaches, necessitating businesses to realign their strategies. Understanding
the influence of digital on consumer behavior and adapting marketing efforts
accordingly are the key factors to thriving in the digital age (Madler, 2010).
This chapter explores the impact of digital on marketing strategy, emphasizing
the shift towards digital solutions and their influence on consumer behavior
which will be divided into eight parts. The first one – the introductory one after
highlighting the importance of the transition towards digital, highlights the
evolution of the digital landscape, and its impact on companies’ marketing efforts
to finally set the stage for further comprehensive exploration.
The subsequent part covers the evolution of marketing and places its
development in the digital age. It further delves into the historical context and
traditional marketing approaches, emphasizing their limitations in the face of
digital disruption. The emergence of digital channels and technologies is discussed,
showcasing their transformative effect on marketing practices. Additionally, the
subchapter explores the evolution of consumer behavior and expectations in
response to the digital revolution.
The third part examines in detail the relationship between digital disruption
and marketing, emphasizing the significant paradigm shift from mass marketing
to personalized and targeted strategies. The disruptive effects of digital technology
on traditional marketing models are explored, highlighting the opportunities and
challenges presented by digital channels. All this along with encouragement for
businesses to embrace these changes and adapt their strategies accordingly.
The fourth part highlights the key concepts in digital marketing strategy
focusing on the understanding of the digital marketing ecosystem. The integration
of digital channels with traditional marketing efforts is emphasized, showcasing
the importance of a holistic approach. Defining clear goals and objectives specific
to the digital space is discussed, enabling businesses to align their strategies
effectively.
The fifth part will emphasize the shift of consumer behavior in the digital
age as a critical consideration for developing successful marketing strategies. It
will further examine the impact of digital channels on the consumer decision-
making process, emphasizing the influence of online reviews, social media, and
user-generated content. It highlights the paramount importance of delivering a
seamless and personalized customer experience to meet the evolving expectations
of digital consumers.
The sixth part will consider analytics in digital marketing taking center stage,
highlighting the significance of data-driven decision-making as its focal point. It
will emphasize tracking and measuring digital marketing performance, utilizing
analytics tools and metrics to optimize strategies accordingly. It also stresses
the importance of aligning messaging and branding across channels to maintain
consistency and maximize the impact of marketing efforts.
The Impact of Digital on Marketing Strategy 23

Adapting marketing strategies for the digital landscape is a key theme

discussed in the seventh part of the chapter. It emphasizes the incorporation of
digital channels into the traditional marketing mix, encouraging businesses to
stay updated with emerging trends and technologies. This part advocates for
embracing innovation and experimentation while adopting an agile approach to
continuously optimize marketing strategies. It could be treated as highlights and
predictions for marketing direction in the future.
Upon the chapter closure, the conclusion provides a comprehensive summary
of the impact of digital on marketing strategy. It underscores the importance of
understanding the digital marketing ecosystem, embracing digital disruption,
and adapting strategies for the digital landscape. By navigating these changes
effectively, businesses can position themselves for success in the dynamic and
ever-evolving digital era.

2. Evolution of Marketing in the Digital Age

The evolution of marketing in the digital age has been marked by significant
changes in strategies and approaches. This part explores the historical context
of marketing and its traditional approaches, highlighting their limitations in the
face of digital disruption. It examines how the emergence of digital channels and
technologies has transformed the marketing landscape.
Company orientation was always in transition to follow the emerging trends
and market requirements. From production, product, and sales focus, to (modern)
marketing, and societal marketing (Kotler et al., 2020). Within the marketing
approach itself, the focus was as well scoped differently: from an overall customer-
centric approach, through the development services marketing, CRM and SCRM,
and ultimate customer managed relationship (CMR). However, despite its declared
customer-centricity and willingness to fulfill desires, marketing communication
remained till then more one-way in its nature. In the past, marketing relied heavily
on traditional media such as television, radio, print, and outdoor advertising. These
so-called traditional channels, despite a relatively significant campaign range, had
limited targeting capabilities and lacked real-time interaction with consumers.
However, with the dawn of digital technology, new channels based on the
Internet such as websites, search engines, social media platforms, and mobile
applications have emerged, enabling marketers to reach their target audiences
with precision and engage in a two-way communication. The same was therefore
synced with the evolution from Marketing 1.0 to 4.0 (Tarabasz, 2013; Wereda &
Woźniak, 2019) along with the transition from Web 1.0 to Web 4.0.
The emergence of digital channels and technologies has revolutionized the
marketing landscape (Diaz et al., 2022). With the arrival of websites, search
engines, social media platforms, and mobile applications, businesses gained new
opportunities to reach their target audiences directly and engage in interactive
communication (Tarabasz, 2014). Digital marketing has empowered companies to
24 Introduction to Digital Marketing

deliver more personalized and targeted messages to consumers, enhancing their

overall brand experience (Chandra et al., 2022; Tong et al., 2020).
The rise of digital channels has also changed significantly the way businesses
approach consumer behavior. Unlike in the physical customer journey, the
emergence of digital channels added additional depth level to the purchase funnel
and the moments of truth. Google’s ZMOT (Zero Moment of Truth) (Think with
Google, 2023) was clearly proving the importance of multifaceted data sources
between the triggered intention of purchase and the informed buying decisions.
In the digital age, consumers gained access to vast amounts of information at
their fingertips. Preceding a single flow of offline (brick-and-mortar) vs. online
(click-and-mortar) transactions got replaced with blurred lines, resulting in an
omnichannel experience across multiple touchpoints of the customer journey.
Moreover, undecided clients often started finalizing transactions in different
channels than a starting point with the emergence of showrooming (reverse ROPO)
and webrooming (ROPO-Research Online, Purchase Offline). With a plethora of
available information, they could research products, compare prices, read reviews,
and seek recommendations from peers through online platforms. This shift in
consumer behavior has given rise to the importance of online presence, reputation
management, and digital brand building. This change has necessitated marketers
to understand and adapt to the evolving consumer preferences and behaviors in
the digital space. Customers expect seamless and personalized experiences across
multiple touchpoints, demanding relevant and tailored content that resonates with
their needs and interests. No wonder SoLoMo (Social-Local-Mobile) approach
started, therefore, gaining in importance (Tarabasz et al., 2017) along with the
rise of storytelling (Hamelin et al., 2023a, 2023b).
Furthermore, as mentioned before, the digital age has witnessed the blurring
of boundaries between online and offline experiences. With the transition from
desktop to mobile devices, consumers can now access information and make
purchases on the go. Geofencing technologies have enabled businesses to target
consumers based on their location (Bernritter et al., 2021), providing personalized
offers and enhancing the overall customer experience.
The digital revolution has also led to a more data-driven approach to
marketing (Zaki, 2019). With the ability to collect and analyze vast amounts of
consumer data, businesses can gain valuable insights into consumer preferences,
behavior patterns, and purchasing habits (Aiolfi et al., 2021). This data-driven
approach enables marketers to tailor their messaging, offers, and advertising
campaigns to specific target segments, resulting in higher effectiveness and ROI.
By embracing the digital revolution, and the emergence of new channels
and technologies, companies can establish a stronger online presence, connect
with their target audience on a deeper level, and as effective marketers meet their
evolving expectations in the digital landscape.

3. Digital Disruption in Marketing

The evolution of marketing in the digital age has fundamentally reshaped the
The Impact of Digital on Marketing Strategy 25

way businesses approach their strategies. The emergence of digital channels

and technologies has expanded the reach and capabilities of marketers, enabling
personalized targeting, real-time interaction, and data-driven decision-making
(Pascucci, Savelli & Gistri, 2023). Businesses that embrace these changes and
adapt their marketing strategies accordingly are better positioned to succeed in
the digital landscape (Madler, 2010). This part of the chapter explores the impact
of digital technology on traditional marketing models, emphasizing the concept
of digital transformation. It examines the disruptive effects of digital technology
and the shift from mass marketing to personalized and targeted strategies.
Digital technology has revolutionized the marketing landscape, disrupting
traditional approaches and necessitating a shift toward digital transformation. This
disruption has been fuelled by the emergence of digital channels and technologies,
such as social media, mobile devices, and data analytics. Some authors even claim
(Dasser, 2019) that it was the opposite – marketing was having the leading role
in the digital transformation of organizations! Regardless of the conflict origins
(what was the first “chicken or egg”), the truth is that these digital channels have
enabled businesses to collect and analyze vast amounts of data, empowering them
to deliver personalized and targeted marketing campaigns.
One of the key opportunities presented by digital channels is the ability to
reach a global audience with relatively small budgets (Tarabasz, 2021). Through
digital media, businesses can engage with customers from different regions,
expanding their market reach and potential customer base. Digital channels
also offer highly cost-effective marketing solutions, allowing small businesses
to compete with larger corporations on a level playing field, especially with the
power of programmatic advertising (Ibid.).
Furthermore, unlike conventional media and preceding traditional marketing
channels, digital ones enable real-time communication and instant feedback from
customers. Moreover, two-way communication enables unprecedented interaction,
co-creation, and crowdsourcing (Smith et al., 2017). This provides businesses
with valuable insights into consumer preferences, allowing them to tailor their
marketing strategies and product offerings accordingly. The availability of data
analytics tools opens the floor for marketers in measuring the effectiveness of
their campaigns and make data-driven decisions for continuous improvement.
However, along with these opportunities, digital channels also present
challenges that marketers shall take into consideration and navigate accordingly
(Katsikeas et al., 2020). Moreover, digital marketing requires marketers to adopt a
multi-channel approach to reach customers across various platforms and devices.
Managing and integrating multiple channels effectively can be complex and
resource-intensive. Firstly, the fast-paced nature of digital marketing requires
businesses to stay updated with ever-changing algorithms, trends, and consumer
behaviors, especially in the era of AI (Carter, 2018). Secondly, the increased
competition in the digital space necessitates continuous innovation and creativity
to stand out from the crowd. Thirdly, privacy and data security are additional
challenges in the digital era (Paterson & McDonagh, 2019). With the collection
26 Introduction to Digital Marketing

and storage of customer data, businesses must prioritize safeguarding personal

information and complying with data protection regulations like general data
protection regulation (GDPR) (Eskens, 2019; Tarabasz, 2018). Building trust
and maintaining transparent data practices are crucial for maintaining customer
loyalty (Tarabasz, 2019).
Marketers should remember that they don’t need a digital strategy. Instead,
they should rather be focusing on strategies suitable for the digital age. By
skillfully navigating the possible drawbacks, embracing digital disruption, and
undergoing digital transformation, businesses can leverage the opportunities to
thrive in the digital era.

4. Key Concepts in Digital Marketing Strategy

Discussing the key concepts in digital marketing strategy is equal to immersing
into the digital marketing ecosystem, integrating digital channels with traditional
marketing efforts, and defining goals and objectives specific to the digital space.
More specific and detailed concepts like buyer persona, customer journey,
and use of data will be discussed further in brief in this section and relevant
subsequent sections.
As rightly Kopalle, Kumar, and Subramaniam (2020) were indicating, “Due
to modern digital technologies, business environments are turning into digital
ecosystems wherein a firm’s traditional interdependencies are increasingly
influenced by digital connectivity” (p. 114). However, the standard approach
of the digital ecosystem does not apply here straightforwardly. Its scope is not
perceived as broad as a “complex network of people, businesses, and systems
that use technology to interact with one another or function as a unit”, but is
rather leaning towards a narrower approach of “network of interconnected digital
technologies, platforms, and services that interact with each other to create value”
(Talin, 2023). In this regard, the digital marketing approach to the ecosystem will
be tools and platform-oriented and refers to the interconnected network of digital
channels, platforms, tools, and technologies that businesses utilize to implement
their marketing strategies in the digital space. It encompasses all the elements
and components involved in digital marketing activities.
Understanding the digital marketing ecosystem is crucial for devising
successful strategies, driving engagement, conversions, and long-term growth in
the digital era. This involves comprehending the various components and channels
that make up the digital landscape, such as websites, social media platforms,
display advertising, search engines, email marketing, mobile applications, as well
AR/VR/MR tools and applications of AI and ML, etc. These channels provide
opportunities for businesses to connect with their target audience, promote their
products or services, and engage in meaningful interactions (Bernhard et al.,
2012). Marketers need to have a solid grasp of how these channels function, their
strengths and limitations, and how they can be effectively utilized to engage the
target audiences.
The Impact of Digital on Marketing Strategy 27

Within the ecosystem, there are also supporting technologies and tools
like customer relationship management (CRM) systems, marketing automation
software, analytics platforms, content management systems (CMS), and data
management platforms (DMP) (Khattak, 2023; Krupa, 2019). These tools
enable businesses to manage and optimize their digital marketing efforts, track
performance, collect and analyze data, and make data-driven decisions.
Integration of digital channels with traditional marketing efforts is another
essential concept in digital marketing strategy. Businesses must recognize the
importance of maintaining consistency across all marketing touchpoints, both
digital and non-digital. This involves aligning messaging, branding, and customer
experiences across different channels to create a cohesive brand experience
and seamless brand image, strengthening brand recognition and recall across
multiple touchpoints. By integrating digital and traditional marketing approaches,
businesses can leverage the strengths of each channel to enhance their overall
marketing efforts. Integration of channels facilitates content reception across
omnichannel customer journey and helps to create a seamless user experience.
Moreover, integration is useful for achieving a synergistic campaign and
amplifying the strength of transmitted content.
Having said that, it cannot be forgotten that the entire marketing approach,
unlike all preceding company orientations, is customer-centric. Therefore,
effective digital marketing strategies require a deep understanding of the target
audience. Businesses must conduct thorough market research, to identify their
ideal customers and tailor their messaging and offerings to meet their needs
and preferences. By understanding the demographics, behaviors, and interests
of their target audience, businesses can create more targeted and personalized
campaigns that resonate with their customers. However, the standard STP approach
(Segmentation-Targeting-Positioning) is being more and more often replaced by
the dominating concept of Buyer Persona – a semi-fictional representation of the
preferred target audience (Tarabasz, 2021). And even with grouped preferences,
marketers still need to remember that personalization and hyper-personalization
of campaigns, with studying detailed consumer behavior and LBS (location based
services), support of CRM systems, and automated marketing campaigns make
a significant difference in the digital world.
However, no campaign could be conducted without a defined clear scope,
goals, and objectives, which are all jointly critical for guiding digital marketing
strategies in the digital space. Businesses must identify what they aim to
achieve through their digital marketing initiatives, whether it is increasing brand
awareness, driving website traffic, generating leads, or improving customer
engagement (Saura et al., 2017). These goals should be SMART-defined: specific,
measurable, attainable, relevant, and time-bound. Setting clear objectives allows
businesses to track their progress, make data-driven decisions, and optimize their
strategies accordingly. However, worth noting is the fact that the emergence of
social media has created new KPIs – from standard conversion-driven metrics
to brand recall, amplification rate, or follower-related actions.
28 Introduction to Digital Marketing

Emphasis on the importance of understanding the digital marketing

ecosystem, integrating digital channels with traditional marketing efforts, and
defining clear goals and objectives is an absolute must for a contemporary
marketer. Agility, hands-on experience, and creativity are becoming equally
important like versatility and actual technical knowledge. By grasping the
previously highlighted key concepts, businesses can develop comprehensive and
successful digital marketing strategies that drive engagement, conversions, and
long-term growth in the digital era.

5. Consumer Behavior in the Digital Age

This part explores the profound impact of digital channels on the consumer
decision-making process and emphasizes the significance of online reviews,
the power of social media, and user-generated content. It also highlights the
importance of delivering a seamless and personalized customer experience in
meeting the evolving expectations of digital consumers.
Apart from impacting companies, the rise of digital channels has equally
transformed how consumers behave and make purchasing decisions. Digital
technology has empowered consumers with greater control over the information
they consume, leading to a decline in the effectiveness of one-size-fits-all
advertising campaigns. Marketers now face the task of adapting their strategies
to meet the demands of a more empowered and discerning audience.
The Internet changed completely the way they communicate, search for
information, compare available options, buy, and share feedback. Without the
need to “dial in” and the urge to sit in front of a desktop, the mobile approach
was a turning point for e-commerce with the power of redirected advertisements.
Previously mentioned Zero Moment of Truth (Think With Gooogle, 2023),
Location Based Marketing, SoLoMo (Tarabasz et al., 2017) and new triggers along
the omnichannel Customer Journey (Tarabasz, 2021) revolutionized customer
behavior in the digital age (Gerea & Herskovic, 2022).
With easy access to information and an abundance of choices, consumers
rely heavily on digital platforms to research products, benchmark pricing, and
read reviews. This shift in consumer behavior necessitates businesses to have a
strong online presence and actively engage with their target audience through
various digital touchpoints (Drummond et al., 2020). By leveraging consumer
insights and utilizing digital channels, businesses can deliver relevant and tailored
messages to their target audience. Personalization enhances customer engagement,
builds brand loyalty, and increases conversion rates. It also enables marketers to
optimize their marketing efforts based on real-time data and consumer behavior.
Nowadays online reviews play a crucial role in influencing consumer
decisions (Chen et al., 2020). Consumers often seek out and trust the opinions
and experiences of others before making a purchase. Positive reviews and ratings
can significantly impact a consumer’s perception of a product or service, while
negative reviews can deter potential customers. It is essential for businesses to
The Impact of Digital on Marketing Strategy 29

actively manage their online reputation, encourage positive reviews, and promptly
address any negative feedback to maintain consumer trust and confidence.
Social media has become a powerful tool for consumers to discover, engage
with, and share their experiences with brands. It offers businesses an opportunity
to connect with their target audience on a more personal and interactive level.
By leveraging social media platforms, businesses can create brand awareness,
foster brand loyalty, and facilitate meaningful conversations with their customers.
Engaging with consumers through social media allows businesses to gain valuable
insights into their preferences, needs, and aspirations, enabling them to tailor their
marketing efforts accordingly.
But the possibilities of interaction do not stop there. With the emergence
of Marketing 3.0 user-generated content (UGC) has gained significance in the
digital age. Consumers actively create and share content about their experiences
with products and services (Noguti, 2022). UGC can be in the form of reviews,
testimonials, photos, videos, or social media posts. It provides social proof and
authenticity, enhancing the credibility of a brand. A great example can be taken
from meme-generated campaigns promoted by companies (Malodia et al., 2022).
By encouraging and leveraging UGC, businesses can understand and benefit from
the power of user advocacy and further harness the influence of satisfied customers
to attract and convert potential buyers (Bischoff et al., 2019).
Delivering a seamless and personalized customer experience is paramount.
Consumers expect businesses to understand their preferences, anticipate their
needs, and provide relevant recommendations. Personalization can be achieved
through data-driven insights, such as leveraging customer data to tailor product
recommendations, offering personalized promotions, or providing customized
user interfaces. A seamless customer experience involves ensuring a consistent
brand presence across various digital touchpoints, such as websites, mobile apps,
social media, and customer support channels. Businesses that prioritize delivering
exceptional customer experiences are more likely to foster brand loyalty and
advocacy along with driving sustainable business growth.

6. Measurement and Analytics in Digital Marketing

Many may consider that work of a digital marketer is mainly related to the ability
of skillful content copyrighting along with decisions on embedding appealing
pictures and videos. However, with the blessings of immediate tracking of
traffic, interactions, and user flow, digital marketing reaches way ahead. Non-
embracing the same shall be considered a significant mistake as decreasing the
effectiveness of campaigns worry contemporary marketers (Ghosh & Stock,
2010). Nowadays, due to the blessings of available technology and digital
advancements, campaigns explore tracking, measuring, and optimizing digital
marketing performance using analytics tools and relevant metrics to ensure
data-driven decision-making. Immediate feedback is hidden in the dashboards
of platforms and software and therefore digital marketers can be compared to
30 Introduction to Digital Marketing

flight traffic analysts or even pilots. Following certain rules and regulations, they
are sometimes pushing boundaries to achieve exorbitantly efficient results, not
forgetting their creative part of the process. All that is to align messaging, and
streamline campaigns along with branding efforts across channels to maximize
the impact of marketing efforts.
In the digital marketing landscape, data is, therefore, a valuable asset that
drives informed decision-making. By leveraging data, businesses can gain valuable
insights into consumer behavior, preferences, and trends (Araujo et al., 2020).
Data-driven decision-making, as said before, involves collecting, analyzing, and
interpreting data to polish marketing strategies and tactics. Relevant data, available
at their fingertips enables businesses to identify what works efficiently and what
does not, allowing marketers to optimize their efforts for better results.
These software solutions offer digital marketers a range of analytical
capabilities to gain insights into their website performance, search engine
visibility, paid advertising campaigns, social media conversations, and user
behavior, especially in the algorithmic circumstances of the platforms (Carah
& Brodmerkel, 2020). Utilizing these tools in conjunction with data-driven
decision-making allows them to optimize their digital marketing strategies and
achieve better results.
Tracking and measuring digital marketing performance is essential to assess
the effectiveness and efficiency of marketing campaigns. It involves monitoring
key performance indicators (KPIs) specific to digital channels, such as website
traffic, click-through rates, conversion rates, engagement metrics, and customer
acquisition costs. By tracking these metrics, businesses can evaluate the
performance of their marketing initiatives, identify areas for improvement, and
make data-backed decisions to optimize their strategies.
Utilizing analytics tools and metrics is crucial for extracting meaningful
insights from the vast amount of data available in the digital marketing ecosystem.
Analytics tools provide businesses with the capability to analyze data, generate
reports, and visualize relevant trends and patterns. By leveraging these tools,
businesses can gain a deeper understanding of consumer behavior, measure
the impact of marketing activities, and identify opportunities for optimization.
Examples of useful tools, split category-wise are presented in Table 1.
It needs to be understood that the above-mentioned juxtaposition does
not present a definite list of available solutions. There are way more platforms
and tools, both paid and unpaid present on the market. Moreover, social media
platforms (Facebook, LinkedIn, Twitter, Instagram, etc.) have their own solutions
embedded, however, usually, marketers prefer to have the option of managing
them from one place, and understanding triggers and customer behavior and
preferences are of utmost importance here (Weiger et al., 2019). Ultimately the
choice of a particular one depends on the end-user – the digital marketer, is based
on the required scope and of course, related to the available budget. Therefore,
difficult to debate and select “the best one” as proverbially said, “de gustibus
non disputandum est”.
The Impact of Digital on Marketing Strategy 31

Table 1. Set digital marketing platforms and tools useful for data-driven
decision-making

Scope Platforms, tools and description

Search Engine SEO tools help digital marketers analyze and improve the visibility and
Optimization ranking of their websites in search engine results. Popular SEO tools
(SEO) include Moz, SEMrush, Ahrefs, and Google Search Console. These
tools provide data on keyword rankings, organic traffic, backlinks, on-
page optimization, and competitor analysis, enabling marketers to make
data-driven decisions to improve their website’s search performance.
Search Engine SEM platforms like Google Ads and Bing Ads provide marketers
Marketing with analytics and reporting features to measure the performance of
(SEM) their paid search campaigns. These platforms offer inter alia data on
impressions, clicks, click-through rates, conversion tracking, and cost-
per-click (CPC). Marketers can analyze these metrics to optimize their
ad campaigns, refine keyword targeting, and improve their return on ad
spend (ROAS).
Social Media Social media listening tools, such as Hootsuite, Sprout Social, and
Listening Brandwatch, enable marketers to monitor and analyze conversations
happening on social media platforms. These tools provide insights
into brand mentions, sentiment analysis, trending topics, and audience
demographics. Marketers can use these insights to understand
consumer sentiment, identify emerging trends, and tailor their social
media strategies accordingly.
Web Analytics Besides Google Analytics, there are other web analytics platforms
Platforms available that offer advanced features for tracking and analyzing
website performance. Examples include Adobe Analytics, IBM Digital
Analytics, and Matomo. These platforms provide comprehensive data
on website traffic, user behavior, conversion funnels, and e-commerce
tracking. Marketers can use this data to identify areas for improvement,
optimize user experience, and increase conversions.
Heatmap and Heatmap tools like Hotjar and Crazy Egg allow marketers to visualize
User Testing user behavior on their websites through heatmaps, scroll maps, and
Tools click tracking. These tools provide insights into how users interact
with web pages, which areas attract the most attention, and where users
may encounter usability issues. User testing tools like UserTesting and
Optimal Workshop provide qualitative feedback through user testing
sessions and surveys, helping marketers understand user preferences
and improve website usability.

Furthermore, aligning messaging and branding across channels is vital

to maintain consistency and maximize the impact of marketing efforts. In the
digital age, consumers engage with brands across multiple touchpoints, such as
websites, social media platforms, email marketing, and mobile apps. Consistent
messaging and branding help create a unified brand experience, reinforce brand
32 Introduction to Digital Marketing

identity, and enhance brand recognition. It ensures that consumers receive a

cohesive and seamless brand experience regardless of the channel they interact
with, fostering trust and loyalty.
To summarize this part the importance of data-driven decision-making in
the digital marketing landscape is clearly visible. Contemporary marketing is
inevitable in terms of underscoring the significance of tracking, measuring, and
optimizing digital marketing performance using analytics tools and metrics.
Additionally, marketers with the plethora of available solutions need to align
messaging and branding efforts across channels for a consistent and impactful
customer experience. By leveraging measurement and analytics, businesses can
gain valuable insights, improve marketing effectiveness, and drive business
growth in the digital era.

7. Adapting Marketing Strategies for the

Digital Landscape
In today’s rapidly evolving digital landscape, businesses need to adapt their
marketing strategies to effectively engage with their target audience. Key
considerations and approaches are explored for successfully navigating the
digital landscape and maximizing the marketing impact.
The integration of digital channels, such as social media, search engine
marketing, email marketing, and content marketing, with traditional marketing
efforts is essential for a comprehensive and cohesive marketing strategy.
Integration of digital channels, such as social media, search engine marketing,
email marketing, and content marketing, with traditional marketing efforts offers
a range of benefits. There are numerous advantages, such as increased reach,
targeted audience segmentation, and cost-effectiveness, that digital channels
provide. Moreover, apart from the singular effectiveness of each channel, they can
work synergistically to amplify marketing messages. Merging the digital approach
with traditional media is highly suggested, especially with ATL (automated tape
library) campaigns, higher budgets, and more established brands. But one needs
to remember, that even here progressing digitization is clearly visible, i.e., with
OOH campaigns and digital, 3D immersive billboards/outdoor campaign, grasping
the attention of bypassers. However, integrating digital channels also presents
challenges, including the need for specialized skills, managing multiple platforms,
and maintaining consistency across channels. All that requires capabilities to
integrate campaigns, ideally to do it with Digital Integrated Marketing Campaign,
as rightly indicated by Anand (2020).
With the constantly evolving digital landscape, new technologies, platforms,
and trends arising staying updated with emerging trends and technologies seems
a must (Vasilyeva et al., 2019). Marketers need to stay informed and adapt their
strategies to leverage the latest opportunities. Marketers shall not interact with the
current occurrences, but carefully monitor predicted trends and act in advance with
The Impact of Digital on Marketing Strategy 33

emerging trends and technologies, such as AI, voice search, chatbots, and virtual
augmented and mixed reality. With the panta rei approach the only constant is
the change, therefore marketers shall be ready to harness the power of existing
and emerging solutions to enhance customer experiences, drive engagement, and
gain a competitive edge against competitors, especially having in mind the spirit
of personalization (Malcorps, 2019).
However, technological advancements are only the proverbial tip of the
iceberg. Marketers shall explore cutting-edge solutions, and on the one hand
become ambassadors in their respective companies, and on the other hand ensure
that well-working solutions should be applied on an everyday-basis approach.
Therefore, their role is to foster a culture of innovation, encourage creativity,
explore well-working ideas, and try new approaches. Having said the same, they
shall consider the benefits of embracing experimentation, marketing automation
(Guercini, 2022), A/B testing, and iterative improvements, and with all that refine
marketing strategies based on data-driven insights.
Lastly, agile marketing and continuous optimization of marketing strategies
shall also be mentioned, This dynamic and iterative approach enables marketers
to respond quickly to changing market conditions and customer preferences.
Following this pathway, companies will benefit from the importance of flexibility,
adaptability, and continuous optimization (Hafezieh et al., 2023). All that is at the
core of data-driven marketing strategies as live performance tracking, measuring
and optimizing marketing campaigns for maximum impact is at the heart of
modern marketers.

8. Conclusion
The digital revolution has reshaped the marketing landscape, requiring businesses
to embrace digital solutions for competitiveness. The traditional marketing
approach has been challenged by the rapid advancements in technology, giving
rise to digital channels and platforms that have fundamentally transformed
consumer behavior, and market expectations. Brands are no longer competing
locally, but are accessible from previously untapped markets. This is per se
very positive. However, for unskilled marketers, it can become a challenge
in the global market, due to lack of cultural sensitivity, and adjusting to local
preferences and customs (Sharma, Tam & Wu, 2018 ).
Digital disruption has led to a paradigm shift from mass marketing to
personalized and targeted strategies, presenting both opportunities and challenges
for marketers. Adjustments need to be done, especially with big market players
like Google and Facebook and having in mind evolving searching and display
algorithms. Moreover, the work of digital marketers nowadays seems to be
round the clock, 365 days a week, ideally with a nanosecond response tie,
pleasing customers with hyper-personalized content. Marketers shall benefit
from learning from colleagues, and the guidance of researchers (Miller, 2018),
and try to outsource a significant part of their work. But not externally – to AI,
34 Introduction to Digital Marketing

which seems their biggest ally nowadays. Despite the voices of many claiming
that marketers will become redundant in the labor market and their work could
be easily replaced by AI-enabled solutions, it is not the case. Indeed platforms
and tools like Jasper, Customers.ai, Market Muse, Optimove, Smartwriter, Phrase,
Chat GPT, and Midjourney, are some of them.
To thrive in the digital age, modern marketers must embrace best practices
that combine traditional marketing principles with digital strategies. This includes
leveraging data, personalization, and customer-centric approaches to deliver
seamless and engaging experiences across digital touchpoints. To achieve the
same, contemporary marketers shall be able to understand the existing digital
ecosystem and be ready to integrate digital channels with traditional efforts, along
with setting clear goals and objectives specific to the digital space.
These KPIs vary significantly from the previous ones – not only due to arising
channels but also due to shorter life cycles of products, changing preferences of
audiences, and constantly evolving business environment. Marketing strategies
for the digital landscape require the incorporation of digital channels, staying
updated with emerging trends and technologies, along with embracing innovation
and experimentation, and adopting an agile approach; all this to be nimble as a
living organism.
Measurement and analytics play a crucial role in optimizing digital marketing
strategies, utilizing data-driven decision-making, and aligning messaging and
branding across channels. Integration of digital and traditional sometimes allows
for an emergence of phygital presence. Marketers shall be able to specify the
target audience beyond the standard STP approach, by being able to specify
Buyer Persona up to the point of personalized campaigns and pleasing users,
serving content, and offering products at the right time, right place, and with
adequate explanation. The ongoing impact of digital on marketing strategy cannot
be overstated. As the digital landscape continues to evolve, marketers must stay
ahead of the curve to remain competitive.
In conclusion, the impact of digital on marketing strategy is undeniable.
Businesses that understand the digital marketing ecosystem, embrace digital
disruption, and adapt their strategies for the digital landscape will position
themselves for success in this dynamic and ever-evolving era. By implementing
best practices and staying agile, marketers can navigate the challenges, seize
the opportunities, and effectively connect with their target audience in the
digital realm.

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 CHAPTER

The Behavior of the Digital Consumer

Pietro Paolo Frigenti* [0000-0001-8089-9594]

Alliance Manchester Business School, The University of Manchester, UK

1. Introduction
The last few decades have seen a substantial shift in consumer behavior as a
result of globalization, technological advancements, and shifting cultural norms.
Consumers have increased access to information, product evaluations, and
price comparisons, due to the development of the Internet and social media.
As a result, consumers are more knowledgeable and powerful. The Internet has
completely changed how people purchase and, over time, online shopping has
grown in popularity. Consumers now have access to a broader variety of items
and may compare pricing and reviews before making a purchase, which has had
a significant influence on how they decide what to buy (Kotler & Keller, 2016).
Mobile devices have proliferated, and many customers increasingly use their
smartphones and tablets to access the Internet and make purchases. This has led
to increased consumers’ expectations for a seamless purchasing experience across
all devices. Social media platforms have ingrained themselves into consumers’
lives, with 4.76 billion social media users reported as of January 2023 (We Are
Social, 2023). This opened up new opportunities for marketers to communicate
with their audiences and created new sources of information for consumers,
who are now likely to research suggestions from friends and other users of the
social platform before making purchases (Hajli, 2014). Consumers’ concerns
about ethical corporate operations and environmental sustainability have grown
over the past several years. Consumers worldwide seem to agree that businesses
should do more to protect the environment. As a result, there is an increasing
expectation that companies take responsibility for their environmental effect
and emphasize ethical practices as a result of this trend toward sustainability
(Fernández-Muoz & Montoro-Ros, 2020).

*Corresponding author: [email protected]

The Behavior of the Digital Consumer 39

Technology has changed. People have changed. Their behavior as consumers,

consequently, has changed. Internet techniques have developed dramatically in
the last decade, and Internet users have modified their behavior in response to
the changes in the current times (Urban et al., 2000). These developments have
resulted in the emergence of new user habits and behaviors in a digital world,
which led to the adoption of individualized approaches to attracting new users
(Reyes-Menendez et al., 2019).
However, just as technology opens new opportunities for businesses to reach
prospective customers, it also opens new ways for customers to engage with
businesses. In a world where consumers have so many alternatives available,
businesses are required to manage expectations, deliver impeccable experiences
and empower the new active and critical consumers. Topics like user experience
(UX), influencer marketing, user-generated content (UGC), and electronic word
of mouth (eWom) become essential in the current digital world (Saura, 2020), and
should be effectively integrated into the marketing activities of those businesses
willing to compete in national, international, and global markets. Users engage with
online platforms, create content, share opinions and feedback, and, in general, are
proactive in their consumer behavior initiatives. All these activities generate data,
which can help businesses learn about the demographics, geographic information,
interests, and lifestyle habits of users (Dwivedi et al., 2019). All this information
can enable businesses to better grasp the types of audiences engaging with their
platforms, leading to effective segmentation of digital customers (Kietzmann et
al., 2011) and, ultimately, facilitating targeting and positioning strategies. Such
potential has led to an increase in interest towards tools and techniques useful
to gather and analyze data, and ultimately generate insight for decision-making
processes. Data can be generated from each interaction occurring between
customers and companies (Frigenti, 2022a), and the sum of such interactions
contributes to each customer journey. However, mapping such journeys can prove
challenging, due to the continuous changes occurring in customers, business, and
forms of interactions between the two. The customer journey is in continuous
evolution, with advertising and communications evolving digitally and shopping
initiatives taking part in an online setting. Recent years saw changes in the way
in which e-commerce websites are accessed and navigated by consumers, with
usability needs and requirements constantly evolving (Demmers et al., 2020). In
such a context, it is essential to understand how the digital landscape has affected
and resulted in changes in user behavior. Consumers need to pay attention to
privacy and data processing of their data, and companies are required to adapt
their digital strategies, tailor their strategies to the evolving customer journey and,
ultimately capture and retain current and prospective online customers (Herhausen
et al., 2019; Grewal & Roggeveen, 2020).
E-commerce has revolutionized consumer behavior by facilitating more
convenient and individualized shopping experiences. There has been a move
towards more ethical and environmentally friendly consumerism, with customers
seeking out goods and companies that share their beliefs. The importance of
40 Introduction to Digital Marketing

health and well-being has also grown, which has raised the demand for natural
and organic goods. To better address the ever-changing consumer behavior,
generational labels (e.g., Millennials, Generation Z, Generation Alpha) have
been created to identify and segment people based on shared experiences,
characteristics, expectations, and preferences that are believed to be unique to
their age group. However, although providing a starting point for businesses to
tailor their strategies, generational labels can only provide general indications as
each consumer is unique and requires dedicated attention. Each digital customer
journey is unique and each stage of such journey may vary according to the
specific consumer needs, motivations, experiences, and preferences, as well as
situational factors that may alter a linear and expected behavior.
This chapter will discuss the behavior of the digital consumer, guiding
the reader towards a review of the key components that shape such behavior,
in a reflection centered on the transversal impact that digital marketing has in
marketing initiatives.
The next section introduces how the power shifted from companies to
consumers and its relevance to the behavior of consumers.

2. Addressing the Power Shift: From Companies

to Consumers
When reflecting on the customer journey, it is essential to consider the nature
of the interactions between organizations, supplying products and services, and
customers, to whom these offers are presented. This delicate relationship has
changed dramatically over the years, from the initial notion that firms possess
the ability to control the market to the modern notion that customers own the
power. Indeed, the world was not as interconnected decades ago as it is now.
Trends saw customers purchasing from local vendors or basing their decisions on
external influences such as word-of-mouth from friends and family and exposure
to traditional advertising. Due to the restricted options available, which were
closely tied to such external factors, a business with a strong local presence,
or that which invested extensively in advertising, was likely to be successful
(Frigenti, 2022b). However, as the world got more interconnected, the sources
of information available when deciding on products and services expanded
tremendously, allowing customers to have a more comprehensive understanding
of the accessible options before selecting the most appropriate one to fulfill
their needs. In such a world, customers began acquiring knowledge in the
various manners to get a comprehensive answer to their requirements. The era
of organizations persuading passive customers to purchase marketed products
and services has ended, creating new opportunities for many organizations that
previously would have struggled to remain competitive. Indeed, it is not rare for
a startup company to expand rapidly and compete successfully against larger and
more established rivals. This is because modern customers are actively seeking
The Behavior of the Digital Consumer 41

solutions to their demands, and so any organization that can meet these needs
and wants has a possibility of gaining attention. Strauss et al. (2014) refer to this
phenomenon as a “Power Shift from Sellers to Purchasers” (p. 30), stating that
both individual and company buyers are more demanding than ever due to the
vast array of alternatives accessible with a few clicks. Indeed, word-of-mouth
has historically been a significant factor in decision-making processes, but
technology has enabled new kinds of opinion-sharing. Modern individual and
corporate buyers have access to a range of sources, including blogs, vlogs, social
media material, product and service evaluations, influencers, and communities,
in addition to the opinions of their families, co-workers, and close friends
(Frigenti, 2022b). This resulted in a change from a centralized push (businesses
to people) to a decentralized pull in terms of information flow (individuals
gathering information from different sources). Figure 1 illustrates the evolution
of interactions between businesses and individuals.

Figure 1. The power shift from companies to individuals (Frigenti, 2022b).

Marketers have been increasingly forced to learn about and adapt to changing
consumer behavior since the marketing revolution that resulted in the transition
from the old approach of mass advertising to new customer-centered marketing.
Undoubtedly, modifications are necessary at various points in the customer journey
to suit the changing needs of digital consumers. As the power has shifted from
companies to consumers, understanding the behavior of such consumers becomes
essential to be able to fully appreciate the customer journey in a digital era.
The next section proposes a review of some of the existing consumer behavior
models, to provide an underpinning literature to support the other sections of
this chapter.
42 Introduction to Digital Marketing

3. The Evolution of Consumer Behavior in the

Digital Age
Consumer behavior is the dynamic interaction of affect and cognition, behavior,
and the environment through which humans conduct the transaction portions
of their life (Hollebeek & Macky, 2019). A lot of elements influence how
customers respond to marketing initiatives, with the digital world adding even
more variables to the scenario. Experiences, characteristics, expectations, and
preferences have traditionally formed some key factors in the study of consumer
behavior. The advancement of technology and the rediscovered interest in ethics
and sustainability enriched the possible lenses available to look at consumer
behavior. Throughout the years, different models, theories, and frameworks of
consumer behavior have been created, in an attempt to explain how consumers
behave and make purchasing decisions. Some examples of construct developed
over the years include Maslow’s Hierarchy of Needs (Maslow, 1943, 1954), the
Theory of Reasoned Action (Ajzen & Fishbein, 1980), the Theory of Planned
Behavior (Ajzen, 1991), The Information Processing Model (Bettman, 1970),
the Behavioral Perspective Model (Foxall, 1992), the Social Influence Model
(Cialdini, 2007), the Technology Acceptance Model (Davis, 1989), and the
Zero Moment of Truth model (Google, 2011a). Although not intended to be
exhaustive, this list provides an overview of key theories that across the years
have shaped how consumer behavior has been studied and conceptualized. The
theories are now addressed on an individual basis, to provide the reader with a
theoretical overview of the study of the consumer behavior discipline.

3.1. Maslow’s Hierarchy of Needs

Maslow’s Hierarchy of Needs (1943) is one of the most famous frameworks
for addressing the drivers of human behavior. The theory proposes that human
needs are arranged in a five-tiered hierarchy, from the most fundamental of
physiological needs to the highest level of self-actualization.
The five stages of Maslow’s hierarchy of needs, often depicted in the form
of a pyramid, from most basic to most complex, are as follows:
• Physiological needs: These are the most fundamental requirements for living
and include food, drink, shelter, rest, and other physiological processes.
• Safety needs: Once a person’s physiological demands have been addressed,
they seek protection and security. This encompasses safety from injury,
financial security, employment security, and job security.
• Love and Belonging: Following the satisfaction of their safety requirements,
humans want love, affection, and a sense of belonging. This involves developing
connections, engaging in social interactions, and experiencing acceptance and
worth from others.
• Esteem: Once the desire for love and belonging has been satisfied, individuals
want self-esteem, respect, and acknowledgment from others. This involves
The Behavior of the Digital Consumer 43

attaining success, receiving recognition for achievements, and winning others’

respect.
• Self-Actualization: The highest level of Maslow’s hierarchy of needs, involves
reaching one’s full potential and experiencing personal growth and fulfillment.
This involves the pursuit of artistic or intellectual pursuits, the development
of a feeling of purpose and meaning in life, and the attainment of a sense of
personal satisfaction.
According to Maslow’s theory, lower-level needs must be met before humans
may move on to higher-level requirements. Individuals can only reach the highest
level of self-actualization and realize their full potential when all of these needs
are met. Maslow’s hierarchy of needs is currently widely taught in education as
the starting point to discern consumer behavior and has been widely adopted in
studies in different fields. Examples of fields involve business, education (e.g.,
Abbas, 2020), medicine (e.g., Hale et al., 2019), social studies (e.g., Ryan et al.,
2020), and health and psychology (e.g., Crandall et al., 2020). Whilst the module
may not attempt to explain consumer behavior directly, it provides key insight
into drivers for such behavior.

3.2. The Theory of Reasoned Action (TRA)

Another popular behavioral theory can be identified in Ajzen and Fishbein’s
(1980) Theory of Reasoned Action (TRA). According to the TRA, behavioral
intentions are what essentially determine an individual’s conduct. This concept
proposes that customers make decisions based on their attitudes towards a
product or service, as well as their perception of what others believe about that
product or service. The TRA suggests that behavioral actions are impacted by
two factors:
• Attitudes: A person’s opinion of the targeted activity, whether favorable or
unfavorable. Beliefs in the results of an activity and an individual’s assessment
of those results have an impact on attitudes (Ajzen, 1985).
• Subjective norms: A person’s interpretation of what is expected of them in
terms of the conduct in issue (Ajzen, 1991). The individual’s perception of
what important others think they should do affects subjective norms.
Although the theory has been widely applied to study communication and
health behavior, it has drawn criticism for oversimplifying the complex aspects
that influence behavior.

3.3. Theory of Planned Behavior (TPB)

The Theory of Planned Behavior (TPB) asserts that an individual’s intentions,
which are impacted by three elements, essentially govern their conduct. Two of
the elements, ‘attitudes’ and “subjective norms” are shared with the TRA, which
underpins the TPB. The third element added is “Perceived behavioral control”
44 Introduction to Digital Marketing

which can be seen as a person’s perception of their level of ability to carry out
the targeted activity (Ajzen, 2002). Their opportunities, resources, and skills, for
example, have an impact on this.
The intention of an individual to engage in a given conduct is formed by the
combination of these three components. The likelihood of engaging in a behavior
increases with the strength of the intention. The addition of perceived behavioral
control to TPB is crucial because it takes into account the possibility that people
may have positive attitudes and feel that a behavior is socially acceptable, but still
refrain from engaging in it because of perceived barriers or challenges. Perceived
behavioral control also takes into account a person’s belief in their capacity to
carry out the conduct, which may have an impact on their desire to do so.
Whilst the TPB can be a useful framework for behavior prediction and
understanding across a wide range of contexts, it should not be considered a
comprehensive explanation of behavior. Further to consumer behavior studies
(e.g., Conner and Sparks, 1996), the theory has also been extensively used in
different areas, such as environmental psychology (e.g., Bamberg et al., 2003),
and health promotion (e.g., Liu & Wei, 2020).

3.4. Information Processing Model (IPM)

The Information Processing Model (IPM) explains how people take in, analyze,
and retain information. The model is predicated on the notion that information is
processed in stages and that how information is processed affects the precision
and quality of our perception, memory, and decision-making.
The IPM is divided into three main phases:
• Sensory memory: In this stage, sensory information such as sight,
sound, touch, taste, and smell is first processed (Sperling, 1960). The
information is only retained in sensory memory for a short period of time
until it either fades away or passes on to the next level of processing.
• Working memory: In this stage, the information that is now stored in
our consciousness is actively processed and modified (Baddeley &
Hitch, 1974). Working memory is constrained in its ability to store large
amounts of information at once (Miller, 1956). Working memory may
be utilized for decision-making, problem-solving, and other cognitive
processes.
• Long-term memory: Information is stored here and retrieved over a
longer period of time (Atkinson and Shiffrin, 1968). Working memory
is used to retain information that is considered significant or relevant
until it can be recovered from long-term memory. An existing argument
suggests that long-term memory has an infinite capacity and can hold
data for indefinite periods of time.
The IPM also emphasizes the significance of encoding, perception, and
attention in the information-processing process (Craik & Lockhart, 1972). The
The Behavior of the Digital Consumer 45

selective processing of information that is deemed important or relevant is referred

to as attention. The process of perception involves interpreting sensory data in light
of our prior knowledge and expectations. The process of transforming information
into a format that can be kept in long-term memory is referred to as encoding.
The IPM offers a useful framework for comprehending how people process
and remember information as well as how various variables can affect the precision
and efficacy of our cognitive processes. This can help explain how consumers
acquire new information and how they use previously acquired knowledge to
notify their decision-making processes.

3.5. Behavioral Perspective Model (BPM)

The psychological paradigm called Behavioral Perspective Model (Foxall,
1990, 1997) stresses the significance of observed behavior in comprehending
human behavior. The BPM suggests that environmental influences determine
behavior and that learning may change it (McLeod, 2023). To comprehend how
ecological factors affect consumer decision-making and behavior, the behavioral
perspective model has been applied to consumer behavior (Solomon, 2019). This
concept holds that behavior is influenced by environmental deteminants and that
it may be changed through learning, which includes gaining new knowledge
and experiences.
The idea of ‘reinforcement’ is key in the BPM. When a specific action is
followed by a favorable result or reward, this is known as reinforcement and
enhances the probability that the action will be repeated in the future (Assael,
1995). Reinforcement may be used to influence brand loyalty, repeat business,
and positive word-of-mouth marketing.
Another key element in the behavioral perspective mode is the concept of
‘learning’. Learning is the process through which people gain new knowledge,
abilities, or attitudes through experiences, observations, or conversation (Solomon,
2019). By affecting perceptions, attitudes, and preferences toward goods, brands,
and marketing messages, learning can affect customer behavior.
The BPM, in general, offers a helpful framework for comprehending the
contextual elements that influence consumer behavior and the learning processes
that underpin consumer decision-making.

3.6. Social Influence Model (SIM)

Following on from the reflection about environmental forces affecting behavior,
the Social Influence Model (SIM) can help address how social influence
influences consumer behavior. This model states that ‘informational’, ‘normative’
and ‘identification’ influence are the three main categories of social influence
that have an impact on consumer behavior (Kelman, 1958).
“Informational influence” is the term describing the impact of other people’s
suggestions and views on consumer choice. Consumers may rely on information
from others to make decisions when they are unsure about a good or service
46 Introduction to Digital Marketing

(Brown et al., 2005). This can include details gleaned from referrals from friends
and family, Internet reviews, or word-of-mouth.
On the other side, “normative influence” refers to the influence of societal
standards and values on consumer behavior. While making judgments about what
to buy, consumers are frequently impacted by the expectations of their social
group and may feel under pressure to adhere to particular standards or conventions
(Goldsmith & Clark, 2008). This might include the influence of opinion leaders
in a particular sector or business, celebrities, and influencers on social media
(Escalas & Bettman, 2003).
Consumers who identify with a certain group or individual are impacted by
the values, attitudes, and actions associated with that group or individual. This is
known as “identification influence”. Further to the effects of product sponsorships
and celebrity endorsements, this may also include the influence of brand identity
and culture (Aaker, 1997).
The social influence model may be a suitable tool for comprehending
customer behavior and creating successful marketing strategies. For example,
studies (e.g., Berger & Milkman, 2012) indicate that social influence may be a
potent motivator for customers and that marketers can employ social influence
strategies to boost customer engagement and brand loyalty. Nonetheless, social
influence may also have adverse consequences on consumer behavior, especially
when people feel under pressure to live up to societal standards or norms
(Griskevicius et al., 2010). This implies that marketers should exercise caution
when utilizing social influence techniques and should steer clear of any methods
that can be seen as forceful or manipulative.
Ultimately, the SIM offers a helpful framework for comprehending the
complicated interaction between social influence and consumer behavior. It may
also assist marketers in creating more successful customer engagement and brand
loyalty initiatives.

3.7. Technology Acceptance Model (TAM)

Quite relevant to discussions around digital consumer behavior, the Technology
Acceptance Model (TAM) is a paradigm that describes how people adopt
and utilize new technologies. Originally developed to explain the uptake of
computer technology in the workplace, the model has gained attention and has
been applied in different settings.
According to the TAM, the acceptability of technology is driven largely by
two factors: perceived usefulness and perceived ease of use.
• Perceived usefulness is the extent to which a person feels that adopting the
technology would enhance their performance or make their work simpler.
• Perceived ease of use is the extent to which a person feels that utilizing the
technology would be effortless.
The Behavior of the Digital Consumer 47

Within the possible factors affecting technological acceptance, the TAM also
examines external elements such as social influence, training, and support. This
model has been extensively utilized in studies to explain and forecast technology
acceptance and use in several sectors, including healthcare (e.g., Kamal et al.,
2020; Holden & Karsh, 2010), education (e.g., Cheung & Vogel, 2013; Venkates
et al., 2003), and business (e.g., Park & Chen, 2007).
The TAM is a popular paradigm for studying user behavior and building
user-centered technology due to its simplicity and usability.

3.8. Zero Moment of Truth Model (ZMOT)

Following the discussion of models particularly relevant to digital consumer
behavior, the ZMOT is particularly relevant to look at online buying initiatives.
The moment a consumer decides to research a product or service before making
a purchase is referred to as the “zero moment of truth”, a term coined by Google
(2011a). In other words, it refers to the period of time before a consumer decides
to make a purchase when they begin their online search for information about
a product.
The ZMOT model highlights the necessity of being present and visible
at this time to influence customer decisions. It implies that companies should
concentrate on presenting a favorable image of their product or service online to
sway consumers’ purchasing decisions.
According to the ZMOT model, there are numerous critical aspects that might
impact the consumer’s decision at this point, including:
• Relevant Information: Information that is pertinent to the needs and interests of
the consumer is sought after (Alhabash et al., 2015; Google, 2011a). Businesses
must make it simple to find and provide this information in a clear, concise
manner.
• Credibility: Information from trustworthy sources, such as customer reviews
(Cheng & Jin, 2019), industry experts, or reliable sources, is more likely to be
believed by consumers (Chen et al., 2011; Hennig-Thurau et al., 2004).
• Accessibility: Regardless of the devices adopted (e.g., Smartphones, desktop
computers, or tablets) consumers require easily accessible information
(Kabadayi and Price, 2014). Businesses need to ensure that their information
is accessible across all platforms and devices (Google, 2011b).
• Consumer engagement: Firms that offer interactive and interesting material,
such as videos, infographics, or social media postings, are more likely to
generate consumer engagement (Constantiou & Følstad, 2015; Lin & Lu,
2011).
Ultimately, the ZMOT model stresses the significance of being there and
visible at the Zero Moment of Truth, and delivering relevant, reliable, accessible,
and engaging information to customers along their decision-making process.
This section has reviewed different models, to show how, throughout the
years, the consumer behavior discipline has been approached and studied from
48 Introduction to Digital Marketing

different perspectives. Indeed, these are just some examples of theories that help
introduce the complex and vast topic of consumer behavior, a topic subject to
constant evolution aligned to the continuous evolution of consumers. The current
section provided insight into factors that may affect the behavior of digital
consumers and ways to address them. The next section attempts to clarify the
stages that digital customers go through in their lifecycle.

4. Addressing the Digital Customer Journey

As a result of the marketing revolution that led to the change from traditional
mass advertising to customer-centric marketing, marketers have been compelled
to study and adapt to the evolving customer behavior. Throughout the whole
customer lifetime, adjustments became necessary at various phases, to meet the
increasing, and ever-changing, demands of the evolving consumers. Now more
than ever, brands that can recognize and serve the many stages of customers’
lifecycles have a significant competitive edge. A variety of tools and channels
exist in the current digital marketing landscape, which help attract, engage,
and retain customers, as well as collecting and analyzing data to facilitate
such activities. However, without understanding the milestones of the digital
customers’ lifecycle and journey, initiating marketing activities may prove
challenging and, potentially, ineffective and counterproductive.
Establishing users’ precise intentions is an even more valuable tool for
marketers. As the purpose of this chapter is to discuss the changing nature of
consumers, rather than the marketing tools available to target them, the focus
will now be returned to the customer journey.

4.1. The Four Phases of the Digital Customer Journey:

Discovery, Persuasion, Usage, and Engagement
When analyzing the journey and experiences of consumers engaging with
websites, Frigenti (2022b) discusses four primary phases to consider: discovery,
persuasion, usage, and engagement.

Discovery
When a product or service is required, the search for information commences.
By analyzing the progression of earlier decisions, the marketer may be able to
anticipate and predict this pattern. In the current marketplace, multiple digital
channels (search, social media, email, direct website visits, etc.) may be utilized
to inform and develop interest. Typically, conversion rates (i.e., the number of
visitors who complete a desirable action, such as purchase) have been considered
the main indicator of success for businesses. However, conversion rates are
not the sole means of comprehending discovery, and efficacy metrics may be
rethought (Frigenti, 2022a). At this stage, rather than quantifying the number
of people visiting a specific channel, the focus should be on understanding the
The Behavior of the Digital Consumer 49

reasons for each channel’s visits. Rather than analyzing which and how many
keywords generate traffic, marketers should consider who uses these phrases and
why (Frigenti, 2022b). By creating a visitor persona, businesses can get a better
idea of the type of consumers interacting with the company (Ravella, 2015).
A better-defined target audience may lead to optimally matching a website’s
content, channels, and keywords, the type of visitors, and their preferences.

Persuasion
At the persuasion stage, the client is aware of brands, goods, and services.
The visitors of a platform evaluate several possibilities, and marketers should
concentrate on persuading the visitors to make a final decision. The experience
leading up to the sale should be as frictionless as possible at this point. It is
crucial to detect potential buying hurdles and roadblocks, especially for visitors
with a purchasing intent who have not added any products to the shopping
basket or visited it at all.

Usage
Experience with the product or service and how the brand feeds its clients are
closely linked to customer happiness, loyalty, and advocacy. Self-service support
tools on a website are essential since site visitors expect prompt resolutions to
their inquiries. Identifying and engaging individuals in need is a chance to create
goodwill and demonstrate an interest in assisting and supporting visitors.

Engagement
Engagement consists of two components. On a long-term scale, it translates
to loyalty, and on a short-term one, it refers to stimulation and engagement.
Websites with a strong customer base should focus on retaining visitors’ interest
while minimizing attrition, bounce rate, and churn (i.e., the number of people
who struggle to browse the website, leave straight after accessing the platform
or stop visiting the website altogether). Monitoring attrition involves recording
every unique contact across different devices. During the engagement lifecycle
stage, the brand should keep a dialogue with the customer to reaffirm its offer
and positioning. Marketers should try to produce distinctive and engaging
content whilst monitoring its relevance to the intended audience.
In today’s fast-paced climate, where more and more technologies enable
iterative modifications, efficient monitoring is important. Whilst analyzing the
type of visitors, their motives, and their behaviors might provide opportunities,
the key to turning these opportunities into strengths is to swiftly address the
identified areas for improvements.
The current section provided insight into the phases that online customers
go through when approaching online platforms. The following section reflects
on the different types of digital consumers existing, and how companies should
approach them to convert them into actual customers.
50 Introduction to Digital Marketing

4.2. Curious, Oriented, or Decided? A Model to Address

Digital Consumer Behavior
Visitors to websites and platforms can exhibit diverse behavioral patterns and
interact with these platforms in various ways, depending on their intentions.
For instance, visitors may be seeking inspiration or already have a solid notion
of what to purchase. Moe (2003) noted that, in an offline setting, experienced
employees can categorize shop visitors based on their shopping behavior. Such
categorization processes are not limited to offline scenarios but can be extended
to online settings as well (Chaffey & Smith, 2017).
Following the previous stages of discovery and persuasion (Section 4.1), a
model is proposed to segment the different types of online consumers and their
likelihood to be influenced by digital marketing initiatives. The model (Figure 2)
is termed Curious-Oriented-Decided (COD), with the three types of consumers
identified as curious, oriented, or decided. Within the model, the consumers are
positioned according to their “Flexibility in purchase choice” and “Likelihood
to be influenced”, on an “Approach continuum” ranging from “Curious and
Open-minded” to “Decided and Resolved” The COD model is presented below,
followed by an explanation of the categories.

Figure 2. The Curious-Oriented-Decided (COD) model. Generated by the author.

Curious
Curious consumers typically explore an area of interest and may purchase if
they discover anything intriguing. Since these consumers did not make any
The Behavior of the Digital Consumer 51

predefined decision, there is tremendous potential for businesses to motivate and

persuade these individuals. Due to their indecision, this type of consumer might
be placed on the “Curious and Open-minded” end of the approach continuum.
Oriented
Oriented consumers have a basic concept of what they want, but have not made
specific decisions around what they want. They engage in extensive online
comparison, moving from one deal to the next until they locate just what they
need. Here, the opportunity for inspiration is limited, and marketers should
concentrate on giving precise information about the offers. There is already an
initial interest, so the focus should be on turning that interest into a specific
purchase. These individuals can be positioned midway between the “Curious
and Open-minded” and “Decided and Resolved” ends of the approach spectrum
due to their flexible and not fully defined intentions.
Decided
Decided consumers have a distinct concept of what they wish to purchase and use
the Internet to decide the best provider that fulfills their requirements. Decided
consumers research costs, delivery choices, and other data to choose the optimal
solution for their requirements. Both likelihood to be influenced towards a new
purchase and the flexibility in choice will be low, due to the pre-existence of
a preference. For decided consumers, companies should focus on providing a
reason to choose them over the competition, by generating trust, simplifying the
decision-making process, and offering a smooth purchasing process. This type
of consumer can be placed on the “Decided and Resolved” end of the behavioral
spectrum since they already know what they want and are merely looking for the
best means to achieve their objectives.
The COD model can help address the Discovery and Persuasion stages of the
digital customer journey, but should not be considered a comprehensive model
of consumer behavior. The fact that more stages exist and need to be addressed
reiterates the fact that digital consumer behavior is complex and research is needed
to develop a comprehensive framework.
So far, the chapter discussed how consumers have evolved in the digital age,
some relevant theories of consumer behavior, the stages of the digital customer
journey, and what types of consumers exist, based on their initial decision to buy.
However, as previously discussed, the digital customer journey is complex and
multifaceted and requires detailed attention to discuss all the steps.
The next section attempts to dive deeper into the customer journey, by
reflecting on the stages theoretically and introducing the concept of touchpoints.

5. Digital Customer Journey: Buying Processes

and Touchpoints
The digital customer journey can be addressed from different perspectives.
52 Introduction to Digital Marketing

For example, it could be looked at from an engagement perspective, branding

perspective, customer relationship management, or a purchasing process
perspective. The consumer purchasing process consists of a sequence of
distinct phases. Terms like “decision-making”, “purchasing process”, ‘journey’,
and “purchase funnel” are commonly used to describe the series of steps
customers take to meet their requirements and desires. The most prevalent
conceptualizations of the buying process are found in the Engel, Kollatt, and
Blackwell (EKB) consumer decision-making model (1968), which proposes that
consumer purchase decisions are comprised of five stages: problem recognition,
information search, evaluation of alternatives, purchase, and post-purchase
evaluation (Engel et al., 1995).
Notwithstanding current critiques and the advent of digital technology, the
underlying EKB model of consumer decision-making is still applicable to modern
marketing (Ashman et al., 2015). However, as the traditional stages of the EKB
decision-making model may not be enough to fully grasp the stages consumers
go through in their online activities, it is important to introduce the key concept
of customer touchpoints, introduced as a point of contact between companies/
brands and customers. Touchpoints can play a significant role in shaping consumer
behavior and can be an important consideration for businesses looking to create
effective marketing strategies. Prior studies have investigated the concept of
touchpoints, researching, e.g., their importance in creating a seamless and positive
customer experience (Straker et al., 2015); how consumers’ preferences for
different touchpoints can influence their purchase decisions, and how retailers can
use this information to create more effective marketing strategies (Hallikainen
et al., 2019); the concept of touchpoints and how businesses can use them to
create a more customer-centric approach, which can lead to increased customer
loyalty and sales (Wind and Hays, 2016); how different touchpoints can impact
the overall customer experience (Siqueira et al., 2020), how different touchpoints
can impact consumers’ perceptions of a brand (Baxendale et al., 2015). The topic
of touchpoints is fully presented in the following section.

6. Addressing the Digital Customer Journey:

Omnichannel Marketing and Touchpoints
Several digital channels have emerged as a result of technological innovation and
development, each of which represents a technology-based connection between
companies and customers (Edelman, 2010; Straker et al., 2015). Individual
chances for contact through the use of digital technology have been designated
as digital touchpoints (Straker et al., 2015; Vannucci & Pantano, 2020). The
increasing availability of channels and platforms that consumers can use to
interact with businesses, opens opportunities, as well as challenges, for such
businesses. Indeed, by adding multiple points of contact and interactions with
current and prospective customers, businesses have the potential to exponentially
increase their drive toward discovery, persuasion, usage, and engagement with
The Behavior of the Digital Consumer 53

the brand. The activity of delivering marketing activities across multiple channels
has been termed multi-channel marketing. The classic example suggested that
the activities done through offline channels should be supported by online
channels, and vice versa. However, the discussion about how to maximize
the effect of different channels progressed over the years, leading to the idea
that channels should be used simultaneously in an integrated way to deliver
a combined experience (Lazaris & Vrechopoulos, 2014). Such a process has
been regarded as omnichannel (OC) marketing. To be termed an OC retailer,
a business must adopt all channels and completely manage their integration
and/or interaction (Beck & Rygl, 2015). Specifically, an omnichannel business
would integrate and orchestrate all channels and interactions with customers in
a manner that eliminates channel boundaries (Beck & Rygl, 2015; Verhoef et al.,
2015). However, deciding to adopt an omnichannel strategy may not necessarily
translate into successful implementation, and challenges may arise during the
effort. Reasons for failure may be linked to the challenges in integrating the
individual channels effectively, or may actually be caused by barriers in the
use of specific channels (i.e., a business may manage effectively some channels
but lack experience, time, or resources to manage others). Failure in managing
one or more of the channels would inevitably affect the integration of the OC
strategy. Each channel can present multiple touchpoints, which describe all the
perceptible elements a customer encounters (Davis & Longoria, 2003; Dhebar,
2013; Richardson, 2010). Consequently, a need for effective understanding and
management of individual channels and their touchpoints appears propaedeutic
and compulsory in the journey toward a successful omnichannel strategy
implementation (Huré et al., 2017; Lemon & Verhoef, 2016; von Briel, 2018). In
each customer journey, touchpoints and channels are essential components that
should be effectively managed by the companies. Touchpoints have been defined
as an instance of direct or indirect brand engagement (Baxendale et al., 2015);
the coordinated use of different firm resources to draw in customers (Wind &
Hays, 2016); a customer point of contact; or a channel via which the company
and the customer communicate (Neslin et al., 2006). A touchpoint is a specific
instance when a customer interacts with a particular item, service, or company
in general. Vannucci and Pantano (2020) see touchpoints as interactions that
create a dialogue between companies and customers via conventional and
digital media. Such touchpoints have been deemed crucial to the formation
of brand attitudes and purchase intentions (Siqueira et al., 2020). Examples
of touchpoints could be events that take place on a website, during marketing
campaigns, during in-person contacts, or even during phone calls. Customers
‘touch’ the company when they learn more about the offering, subscribe to the
email, make a purchase, or provide feedback. Hence, the name, ‘touchpoints’.
Often, when it comes to mapping, the topic of touchpoints is confused with the
concept of a channel. Channels, as opposed to touchpoints, serve as a conduit
of contact between a business and its customers. It is the setting in which
touchpoints take place. It might be a company website or the phone a client uses
54 Introduction to Digital Marketing

to call customer service. Certain channels, like live chat, phone calls, and social
media, are interactive, allowing interactions between businesses and customers.
Others are not, such as fliers and billboards. A customer’s specific requirement
triggers a touchpoint. For instance, they could need to make a payment, get
additional information about a product or service, or book accommodation for a
few nights. The touchpoint would be identified in those moments the customer
seeks a solution to meet this demand. In contrast, a channel is a tool offered by a
business to address this client demand. While the same touchpoint may occur on
many channels, certain channels may only support a particular set of touchpoints.
Arguably, understanding consumer preferences would allow businesses to set up
adequate channels and tailor them to support relevant touchpoints. Touchpoints
during a consumer’s journey can create positive or negative moments of truth
about the product or the brand (Kotler, 2017) and ultimately influence consumer
responses. In essence, engagement with the brand and customer experiences
are determined by the individual touchpoints initiated by customers along their
purchasing journeys (Lemon & Verhoef, 2016). In light of the importance of
touchpoints to customers’ brand experiences, marketers must identify both good
and bad consumer interactions and then prioritize the former while seeking to
rectify and improve the latter.
A previous study has categorized digital touchpoints according to their shared
features. The resultant sets of touchpoints are sometimes referred to as digital
channels (Straker et al., 2015), and existing classifications have been based
on factors such as the source of channel management, the source of channel
activity, and the purpose of the channel (Edelman, 2010; Lemon & Verhoef,
2016; Stephen & Galak, 2012; Straker et al., 2015). Straker et al. (2015) suggest
that digital touchpoints may be categorized as functional, social, community,
and corporate channels. Functional touchpoints are mostly defined by one-way
interactions and frequently attempt to provide basic brand information, remind
customers of their online purchases, offer incentives to connect with the brand and
increase website traffic. Social touchpoints are defined by two-way interactions,
the dissemination of information and promotional content, and the cultivation
of consumer involvement and interest. Community touchpoints are aimed at
providing customers with the opportunity to engage in social and recreational
activities with a community.
The topic of touchpoints has received increasing interest in both the
professional (e.g., HubSpot, 2021) and academic world (Larke et al., 2018;
Homburg et al., 2017; Straker et al., 2015) suggesting the increasing recognition
of its importance.
Nevertheless, discussions around touchpoints are ongoing and there is no
finite literature on the topic. The next section will now focus on the main customer
touchpoints identified in the practitioners and academic literature.

6.1. Digital Customer Journey and Touchpoints

Section 4.1 discussed that the digital customer journey can be divided into
The Behavior of the Digital Consumer 55

four main phases, namely Discovery, Persuasion, Usage, and Engagement.

Mirroring these phases from a purchasing point of view, the literature suggests
that the customer journey consists of three stages (Lemon & Verhoef, 2016;
Sands et al., 2016). Similar to the sequential process of the EKB model, these
conceptualizations show that the total customer experience comprises pre-
purchase, purchase, and post-purchase contacts with the brand (Lemon &
Verhoef, 2016). Regardless of the precise number of stages associated with the
buying process, marketers are expected to identify the key touchpoints required
to allow customers to progress smoothly in their purchase experience (Lemon
and Verhoef, 2016). Although the concept of touchpoints has been observed from
a theoretical point of view, the academic literature on the practical implications
is still fresh and limited. As such, to address the practical implications of the
digital customer journey, a mix of academic and practitioner sources have
been adopted. The three stages have been matched against the four phases
discussed in Section 4.1 (Figure 3) and the touchpoints for each stage have been
presented below.

Figure 3. The digital journey across four phases and three stages.
(Generated by the author)

Before a purchase
The key touchpoints preceding a purchase have been identified in search engines,
social media, websites, and online reviews.
• Search engines: Customers often begin their journey by searching for products
or services on search engines or social media platforms. Studies (e.g., Wigley,
2021) suggest that the majority of customers use search engines (e.g., Google,
Bing) to research products or services before making a purchase, outlining the
importance of such touchpoints (Moz, 2021). Although companies may carry
out search engine optimization procedures or allocate significant budgets for
56 Introduction to Digital Marketing

paid advertisement, search engines are external to the company, and, as such,
the company has limited control over ‘when’ and ‘where’ the website’s organic
or paid listing appears. A significant focus should be dedicated to ‘what’ is
actually shown to the searcher.
• Social media: Even though social media have been influential for years, during
the COVID-19 pandemic their importance has expanded (Naeem, 2021).
On social media, even the most unique businesses may find a successful
communication and advertising route. Social media create opportunities for
businesses regardless of their size and position in the market. For example, by
using social media and home delivery, smaller businesses can start their digital
transformation (Butu et al., 2020) creating an online presence and bypassing
logistical costs. Furthermore, larger businesses may benefit from the use of
social media in strengthening their position and developing communities
around their brands.
• Company website: Websites could be seen as channels that the company makes
available for customers, or touchpoints where the customers can interact with
the company. Customers may decide to visit the company’s website to get
information about products or services, read customer reviews, or compare
prices with other providers (Kumar & Reinartz, 2016; Liu et al., 2017).
• Online reviews: Online reviews appear to have a high potential in influencing
purchase decisions (Cheng & Jin, 2019). The majority of customers read
online reviews before making a purchase (Podium, 2020) and buyers seem to
put high levels of trust in online reviews, comparable to trust put in personal
recommendations (BrightLocal, 2021).

During a purchase
When making an online purchase, customers engage with the basket and
checkout processes.
• Basket and checkout: The experience of the customer during checkout
may affect their choice to complete the transaction (Gilliland et al., 2017).
Throughout the checkout process, some businesses provide live chat assistance
to assist consumers with any queries or worries they may have (Kim et al.,
2021; Kumar & Reinartz, 2016).

Following a purchase
Following the purchase stage, interactions may occur via email or customer
service.
• Post-purchase emails: Businesses may thank customers for their purchases and
request feedback or reviews in post-purchase emails (Sundaram, 2016).
• Customer service and customer care: Consumers may contact customer service
and customer care teams to address any problems or get assistance with the
product or service purchased (Kumar & Reinartz, 2016).
The Behavior of the Digital Consumer 57

7. Conclusion, Reflections, and Future Directions

This chapter discussed the behavior of the digital consumer, guiding the
reader towards a review of the key components that shape such behavior, in
a reflection centered on the transversal impact that digital marketing has in
marketing initiatives. The chapter discussed how consumers have evolved in the
digital age, reflecting on key milestones like the shift towards online shopping
and individualized shopping experiences; the move towards more ethical and
environmentally friendly consumerism, with customers seeking out goods
and companies that share their beliefs; the increasing attention for health and
wellbeing, which has raised the demand for natural and organic goods. Some
relevant theories of consumer behavior have been discussed, to show how
the behavior of consumers has been studied and approached across different
disciplines. The phases of the digital customer journey have been addressed,
moving from the initial discovery to the final engagement. Different types of
consumers have been categorized, based on their initial decision to buy, with
a model termed COD used to address the consumer’s flexibility in purchase
choice and likelihood to be influenced. The purchasing behavior has been further
discussed about the historical EKB decision-making model, to clarify, once
again, that traditional models may not be adequate to fully grasp the evolving
behavior of digital consumers. To that end, the concept of touchpoints has been
introduced and discussed, first concerning the topic of channels, and then in a
theoretical and practical perspective. The natural conclusion of all these points
is that the topic of consumer behavior is vast, and in the digital world it grows
exponentially.
The Covid-19 pandemic accelerated the digital transformation of consumers,
resulting in an exceptional increase in the learning and use of technology (Baicu
et al., 2020; Sheth, 2020). As the customer journey becomes more and more
digital, familiarizing with the topic of touchpoints becomes essential. Seeing the
advancement in technology, with topics such as artificial intelligence, augmented
reality, and metaverse becoming central in everyday lives, it can be argued that
the digital customer journey has just started and possibly will never reach a real
end. Each advancement in technology, society, and economic forces pushes the
goal one step further, requiring marketers and researchers to evolve accordingly
to cover the extra distance. Future research may look into testing existing models
of consumer behavior to evaluate suitability to the current era and update them,
as required, to better address challenges and opportunities. Alternatively, a
comprehensive framework aligning existing theories may be developed, ideally
in a cross-discipline effort. A systematic conceptualization of touchpoints may be
useful for researchers, as it would allow a less fragmented and more consistent
effort in defining and studying such concepts. Similarly, practitioners would benefit
from a structured framework mapping individual touchpoints against the stages
and phases of the customer journey. Finally, the aforementioned topics of artificial
intelligence, augmented reality, and metaverse are already shaping human lives
58 Introduction to Digital Marketing

and behavior. As such, practical and theoretical attention should be dedicated to

these topics, to fully address their impact on the behavior of the digital consumer.

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 Part 2
Doing Marketing Research
 CHAPTER

The Digital Research Revolution

Anna Maria Trzaskowska1 [0000-0002-0911-945X], Paulo Botelho Pires2*

[0000-0003-3786-6783] and José Duarte Santos2,3 [0000-0001-5815-4983]
1 Politechnika Gdanska, Poland
2 CEOS.PP, Portugal
3
Accounting and Business School of the Polytechnic of Porto, Portugal

1. Introduction
One of the basic principles of marketing is to make decisions with the customer at
the center of those same decisions (Daharat et al., 2022). For that, it’s important to
know the customer and try to understand the market. According to the American
Marketing Association (AMA, 2017), “Marketing research is the function that
links the consumer, customer, and public to the marketer through information—
information used to identify and define opportunities and problems; generate,
refine, and evaluate actions; monitor performance; and improve understanding
of it as a process. It specifies the information required to address these issues,
designs the method for collecting information, manages and implements the data
collection process, analyzes the results, and communicates the findings and their
implications.” Thus, marketing research implies the collection of data, which
contextualized, helps the organization in the decision-making process.
If there is a need to make a decision, it is because there is a crossroads or
a problem. According to Malhotra et al. (2017), there are different examples of
problem-solving research: segmentation research, experimental-design research,
product research, pricing research, communication research, and distribution
research.
To start a marketing research process, it is necessary to decide what elements
are needed to help solve the marketing problem, what is the best way to obtain
them, what time is needed, and the costs involved, namely financial (Kotler
et al., 2024).

*Corresponding author: [email protected]

68 Doing Marketing Research

2. Marketing Research Methods

2.1. Information Sources
Marketing research, from the point of view of external data, can be carried out
using primary or secondary sources. While primary research involves collecting
data first-hand from the target audience, secondary information sources provide
a treasure trove of existing data and knowledge to complement and enrich the
research process (Kotler et al., 2024).

2.2. Primary Research Methods

In marketing research, one can resort to qualitative or quantitative research. The
choice depends on the objective or objectives to be achieved and it is possible
to find situations in which the organization needs to resort to both types of
marketing research, with the order of application depending on the situation
(Dzwigol, 2020).

2.2.1. Qualitative research

In qualitative research, the most important methods for gathering information
are deep interviews, focus groups, and ethnography.
Deep interview
Involves conducting detailed and extensive one-on-one conversations with
individual participants. The goal of deep interviews is to gain comprehensive
insights into the thoughts, opinions, feelings, beliefs, and motivations of the
interviewees regarding a specific marketing-related topic or research objective
(Boyce & Neal, 2006). Unlike surveys or superficial interviews, deep interviews
allow researchers to explore complex and sensitive topics, uncovering the
underlying attitudes and emotions, reasons behind consumer behaviors and
preferences (Osborne & Grant-Smith, 2021). Also, obtain feedback on marketing
campaigns. These interviews go beyond simple yes-or-no questions and allow
participants to provide nuanced and rich responses.
Deep interviews hold significant importance in marketing research due
to their ability to provide comprehensive insights into consumers’ thoughts,
feelings, and motivations. Through deep interviews, researchers can delve into the
emotional aspects of consumer decision-making, understanding the factors that
drive their choices. This level of understanding is crucial for businesses to create
more targeted marketing strategies, tailored to resonate with specific consumer
segments. Deep interviews also offer a personalized approach, allowing researchers
to adapt the questioning based on each participant’s responses. This personalized
interaction encourages participants to open up and share their experiences more
candidly, leading to richer and more authentic data (Kotler et al., 2024).
The Digital Research Revolution 69

The insights gained from deep interviews can be invaluable for product
development, as researchers can identify areas of improvement for products or
services. Understanding consumers’ needs and desires early in the development
process can lead to more customer-centric offerings and increase the likelihood of
success in the market. Also, it can be used to identify niche markets or segments
with unique needs. This can open new market opportunities and help businesses
tailor their offerings to address specific customer requirements effectively.
Moreover, deep interviews can help businesses uncover subconscious influences
on consumer behavior. Participants may reveal factors they are not consciously
aware of but still significantly impact their decision-making processes (Burns &
Veeck, 2020).
Unlike structured surveys, deep interviews allow for flexible questioning.
Interviewers can adapt the discussion based on the participant’s responses, leading
to a deeper exploration of specific points of interest. So, deep interviews provide
a qualitative and in-depth understanding of consumer behavior, supplementing
quantitative data and offering nuanced insights that are not possible through other
research methods. This level of understanding is essential for making informed
marketing decisions, improving products and services, and building meaningful
relationships with customers (Clow & James, 2014).
Focus group
Involves a small group of individuals, typically five to ten participants,
depending on the purpose of the study (Hennink, 2014), who are brought
together to discuss and provide feedback on a specific product, service, concept,
or marketing-related topic. The main objective of a focus group is to gather in-
depth insights, opinions, attitudes, and perceptions of the participants in a group
setting, allowing researchers to explore various aspects of consumer behavior
and preferences. It is important to note that while focus groups offer valuable
insights, they are qualitative in nature and not statistically representative of the
entire target population. Therefore, focus group findings are typically used in
conjunction with other marketing research methods, such as surveys and data
analytics, to form a more comprehensive understanding of consumer behavior
and preferences (McDaniel & Gates, 2020).
One of the primary advantages of focus groups is their ability to facilitate
in-depth exploration. By bringing together a small group of individuals with
similar characteristics or experiences, focus groups encourage participants to
share their perspectives openly and candidly. Conducting focus groups also offers
the advantage of relatively efficient data collection. Researchers can gather data
from multiple participants in a single session. This makes focus groups a time-
efficient method for qualitative data collection compared to individual interviews.
The group dynamic stimulates discussion, and participants often build upon
each other’s responses, leading to a deeper understanding of consumer attitudes
and motivations. Moreover, focus groups allow researchers to explore complex
or multifaceted topics that may not be adequately addressed through surveys
70 Doing Marketing Research

or individual interviews. The open-ended nature of the discussions enables

participants to provide nuanced insights, helping researchers grasp the subtleties
of consumer decision-making processes (Hair et al., 2021).
Focus groups offer an opportunity to understand diverse perspectives.
Including participants from different demographics or consumer segments
allows researchers to capture a well-rounded view of consumer preferences
and identify patterns and differences among various groups. This diversity is
especially important in ensuring marketing strategies are inclusive and relevant
to all segments of the target audience (Burns & Veeck, 2020).
Through focus groups, researchers can gain immediate feedback on marketing
concepts, advertisements, or product prototypes. This real-time feedback is
valuable for refining strategies before implementation, identifying potential issues,
and making necessary adjustments to ensure better market reception. Additionally,
focus groups can serve as a source of creative idea generation. As participants
engage in discussions and bounce ideas off each other, new insights and innovative
concepts may emerge, contributing to more impactful marketing strategies and
product improvements (Kotler et al., 2024). In addition to verbal responses, non-
verbal cues observed during focus group discussions provide valuable context and
understanding of participants’ emotional responses and attitudes. Body language,
facial expressions, and other non-verbal signals can reveal deeper sentiments that
participants may not express explicitly (Clow & James, 2014).
So, focus groups are an invaluable tool in marketing research, providing a
deeper understanding of consumer behaviors, preferences, and motivations. By
facilitating interactive discussions and capturing diverse perspectives, focus groups
enable businesses to refine their marketing strategies, improve product offerings,
and build stronger connections with their target audience (Hair et al., 2021).
Ethnography
Involves immersing researchers into the daily lives and experiences of consumers
to gain deep insights into their behaviors, attitudes, and cultural context. In the
context of marketing, ethnography aims to go beyond traditional surveys and
focus groups by observing consumers in their natural environments, such as
their homes, workplaces, or community spaces. By immersing researchers into
the daily lives and experiences of consumers, ethnography provides a deep
understanding of how individuals interact with products, make purchasing
decisions, and engage with brands within their social and cultural contexts. This
method allows researchers to understand how consumers interact with products,
make purchasing decisions, and engage with brands in their everyday lives
(Burns & Veeck, 2020).
One of the primary advantages of ethnography in marketing research is
its ability to go beyond surface-level data. Unlike surveys or focus groups,
ethnographic research allows researchers to observe and study consumers in their
natural environments, such as their homes, workplaces, or community spaces.
This contextual understanding provides a more holistic perspective on consumer
The Digital Research Revolution 71

behavior, shedding light on the various factors that influence their choices and
actions (Hair et al., 2021).
Ethnographic research is especially useful for exploring complex and
multifaceted topics. It allows researchers to uncover the underlying reasons
behind consumer preferences, needs, and desires. By observing consumers in
real-life situations, ethnography helps researchers understand the emotional and
cultural drivers behind consumer decision-making, offering valuable insights
that quantitative research methods alone cannot provide. Understanding cultural
nuances and values is essential in crafting effective marketing strategies.
Ethnography helps marketers gain deeper insights into how cultural beliefs and
societal norms impact consumer behavior. By recognizing and respecting cultural
differences, businesses can tailor their marketing messages and products to
resonate with specific cultural groups, enhancing brand relevance and acceptance
(McDaniel & Gates, 2020).
Ethnography research can contribute to product development and innovation.
By observing consumers in their daily lives, researchers can identify unmet needs
and pain points, providing inspiration for product improvements or entirely new
product ideas that align with consumer requirements. Also, it offers an opportunity
to study subcultures and niche markets. By immersing in specific cultural groups
or communities, researchers can uncover unique consumer segments with distinct
preferences and behaviors. This information helps businesses identify untapped
market opportunities and develop targeted marketing strategies tailored to niche
audiences (Hair et al., 2021).
Furthermore, ethnographic research facilitates customer journey mapping.
By following consumers’ experiences from pre-purchase to post-purchase
stages, researchers can identify touchpoints and moments of engagement or
dissatisfaction. This understanding allows businesses to enhance customer
experiences, improve customer satisfaction, and build long-term customer loyalty
(Burns & Veeck, 2020).
Thus, ethnography is a powerful and valuable method in marketing research.
By providing contextual understanding, uncovering cultural influences, and
exploring consumer behavior in real-life settings, ethnographic research offers
nuanced insights that are instrumental in crafting effective marketing strategies,
improving product offerings, and building meaningful connections with consumers.

2.2.2. Quantitative research

Quantitative methods are invaluable in market research, providing structured
and measurable data to analyze trends, patterns, and correlations. They enable
researchers to obtain objective and numerical information, making them essential
for drawing statistical inferences and making data-driven decisions (Burns &
Veeck, 2020; Hair et al., 2021). The most important quantitative methods for
collecting information are surveys, experiments, observational studies, and
content analysis.
72 Doing Marketing Research

Surveys are a versatile and widely used quantitative method in market

research. They involve a standardized set of questions presented to respondents,
allowing researchers to gather data efficiently from a large sample size. Surveys
can be conducted through various channels, including online forms, phone
interviews, or face-to-face interactions. By employing closed-ended questions with
predetermined response options, surveys facilitate straightforward data analysis
and comparison (Hair et al., 2021).
Experiments are a powerful quantitative approach to establishing cause-
and-effect relationships between variables. In controlled settings, researchers
manipulate one or more independent variables to observe their impact on the
dependent variable. Random assignment ensures unbiased participant selection,
enhancing the validity of the findings. Experiments enable researchers to
draw strong conclusions; they are particularly valuable when studying causal
relationships in marketing and product testing (Burns & Veeck, 2020).
Observational studies, which involve researchers observing and recording
participants’ behavior without direct intervention, is particularly useful in
understanding natural behaviors and interactions in real-life settings. Observational
data can provide valuable insights into customer behavior, product usage, or store
layout effectiveness. Researchers must ensure objectivity during data collection
to maintain the integrity of the findings (Babin & Zikmund, 2015).
Content analysis is employed to quantitatively analyze the content of various
media, such as text, images, or videos. Researchers categorize and code the
content based on predefined criteria, enabling systematic examination of patterns
and themes. It is widely used in marketing to assess brand sentiment, social
media mentions, or customer reviews, providing valuable quantitative insights
for sentiment analysis and reputation management (Wilson, 2019).

2.2.3. Contact methods

Before the appearance of the Internet, its evolution, consequent development
of various applications, and various web-based services, the collection of
information was more conditioned. For example, the use of focus groups was
very dependent on personal presence; the application of a questionnaire could
be done in person, using the telephone (and later the cell phone) to contact the
respondent, sending it via post, or even using a fax. Selecting the right contact
method is critical for gathering accurate and meaningful data.
The personal method involves face-to-face interactions between researchers
and respondents. Through in-person interviews or surveys, researchers can
establish a connection, build rapport, and gain deeper insights. This approach is
ideal for capturing detailed information on complex topics or sensitive issues,
as it allows for real-time observation of body language and non-verbal cues.
However, personal interviews can be resource-intensive and time-consuming,
making it challenging to reach a diverse audience across different locations
(Burns & Veeck, 2020).
The Digital Research Revolution 73

Conducting market research via telephone or mobile phones entails reaching

out to respondents through phone calls to collect data. This method offers
efficiency and broader geographic coverage. While it allows researchers to reach
a diverse audience, declining response rates due to call screening and unsolicited
call aversion can be a drawback. Additionally, researchers must rely solely on
verbal responses, missing out on non-verbal cues present in personal interviews
(Clow & James, 2014).
The mail method involves sending questionnaires, surveys, or research
materials through traditional postal services to gather data from respondents. It
is a cost-effective approach, especially for large-scale surveys. Respondents can
complete the surveys at their convenience and return them by mail. However,
the drawback lies in lengthy turnaround times due to postal delivery, leading to
lower response rates compared to more interactive methods like phone surveys
(Babin & Zikmund, 2015).
The fax method, though less prevalent in modern market research, entails
sending surveys or questionnaires through fax machines to collect data. It
offers a faster option than traditional mail but is slower compared to electronic
methods. This method may be suitable for specific industries or regions where fax
communication is still prevalent. However, the decline in fax usage and potential
transmission issues pose challenges in obtaining high-quality and timely responses.

2.3. Secondary Research Methods

Secondary information sources refer to data that has been collected, compiled,
and analyzed by other researchers, organizations, or government agencies for
purposes other than the current research project. These sources encompass a
wide array of data types, including market reports, industry studies, academic
research papers, government publications, and historical data, among others. The
scope of secondary information sources is vast, covering multiple industries,
geographic regions, and timeframes (Burns & Veeck, 2020; Wilson, 2019).
One type of secondary information sources is published market reports and
industry studies, which provided a valuable source of comprehensive information
on specific sectors or markets. They often include data on market size, trends,
growth forecasts, competitive landscape, consumer behavior, and emerging
opportunities. These reports are typically created by market research firms and
industry associations and can provide insights into both current market dynamics
and future projections (Wilson, 2019).
Academic journals and research papers offer rigorous and in-depth
analyses conducted by scholars and experts in various fields. These papers
often present findings from primary research studies, making them valuable
sources of quantitative and qualitative data. Researchers can access a wealth of
insights on consumer behavior, market trends, technological advancements, and
socioeconomic factors (Hooley et al., 2005).
Another possibility is government publications. Government agencies
frequently publish data and reports on various economic, demographic, and social
74 Doing Marketing Research

aspects. These publications may include census data, economic indicators, trade
statistics, and industry-specific reports. Such sources provide valuable macro-level
insights, helping businesses understand the broader market context and regulatory
environment (Wilson, 2019).
Digital databases and libraries offer access to a vast repository of secondary
information sources. These platforms aggregate research papers, statistics
reports, articles, and other relevant data from multiple disciplines and industries.
Researchers can explore and extract valuable data to support their market research
endeavors (Burns & Veeck, 2020).
Also, the enterprise documentation analysis can provide useful information
about the market and also about the company itself. Publicly-traded companies
release annual reports and regulatory filings that provide insights into their
financial performance, market strategies, and competitive positioning. Analyzing
these reports can offer a deeper understanding of a company’s market share,
growth initiatives, and overall health (Hair et al., 2021).
The use of secondary information sources provided some benefits, like,
time and cost savings because secondary research enables businesses to access
existing data, saving time and resources compared to primary research methods.
But often does not respond directly to the company’s research needs (Burns &
Veeck, 2020; Wilson, 2019).

3. Traditional Marketing Research Methods

Reconceptualized
From a marketing perspective, the Internet can currently play several roles,
namely as a distribution and communication channel and as a support medium for
marketing research. With the emergence of the Internet, geographical boundaries
have been blurred and the opportunity has arisen to further maximize time, for
example, by no longer making certain displacements. Market research on the
Internet transcends geographical boundaries, making it possible for businesses
to conduct international studies without the need for physical presence. This
global reach not only expands the potential customer base but also allows for
comparative analysis between different markets. Moreover, the cost efficiency
of Internet-based research reduces expenses associated with traditional data
collection methods, such as in-person surveys or telephone interviews. The
Internet has revolutionized the way we live, communicate, and do business. In
recent decades, it has emerged as a transformative force in the realm of market
research, offering unprecedented opportunities to collect, analyze, and interpret
data.
The Internet enables businesses to engage with their target audience in real
time. Brands can interact with customers through social media, online forums,
and live chat support, providing immediate responses to queries, concerns, and
feedback. This real-time engagement not only enhances customer satisfaction but
The Digital Research Revolution 75

also serves as a valuable source of data for market researchers to gauge customer
sentiment and preferences promptly (Dawson, 2020).
One of the most significant contributions of the Internet to market research
is the proliferation of online surveys. Businesses can now design and distribute
surveys with ease, reaching a global audience within a matter of minutes.
This widespread accessibility allows researchers to collect data from diverse
demographics, geographic locations, and time zones, resulting in a more
comprehensive and representative sample. Online surveys also facilitate real-time
data collection, enabling businesses to stay agile and respond swiftly to changing
market dynamics. Online surveys allow you to include video, sound, and images.
However, if the respondent needs to have contact with something or enjoy an
experience to answer the survey, this may be a limitation. However, in certain
situations, it can be circumvented by providing a mix of physical presence to
verify the situation that will allow the respondent to respond later in the quiet of
their home on their computer, or while traveling on the metro via their mobile
phone. One of the great advantages of questionnaires for the entities that apply
them is the processing of data, as they are automatically stored and already coded
to be handled faster and reduce human errors in coding and/or inserting data into
programs for the processing of the elements obtained (McDaniel & Gates, 2020).
The Internet’s potential extends beyond traditional survey methods.
Various digital tools and technologies enable researchers to gather data through
multiple channels, such as social media platforms, website analytics, and
online communities. Social listening tools, for instance, allow businesses to
monitor and analyze consumer sentiment, preferences, and opinions, uncovering
valuable insights that shape marketing strategies and product development. The
Internet has ushered in the era of big data, where vast volumes of structured and
unstructured data can be harnessed for market research. Advanced analytics tools
and machine learning (ML) algorithms can process this data, identifying patterns,
correlations, and trends that were previously difficult to detect. The result is a
deeper understanding of consumer behavior, market shifts, and predictive insights
that drive data-backed decision-making (Burns & Veeck, 2020).
Internet-based market research facilitates longitudinal studies, where data
is collected from the same group of participants over an extended period. This
longitudinal approach provides valuable insights into trends and changes in
consumer behavior, brand loyalty, and market dynamics over time. Additionally,
tracking tools enable businesses to monitor online user behavior, website traffic,
and customer interactions continually, aiding in the identification of emerging
opportunities and potential issues (McDaniel & Gates, 2020).
The Internet empowers businesses to conduct A/B testing, a method where
two or more variations of a webpage, advertisement, or product are tested with
different segments of the audience. Through iterative improvements based on
real-time data and user feedback, businesses can optimize their offerings to meet
customer needs effectively. This data-driven approach increases the likelihood of
76 Doing Marketing Research

success and minimizes the risk of failed campaigns or product launches (Kotler
et al., 2024).
Focus groups are undoubtedly one of the methods that have benefited from the
emergence of the Internet and other means of facilitating group communication,
for example, WhatsApp. So, with a focus group online is possible to create a
group without geographic limitations and the participants can benefit from more
security and comfort as they can integrate the group, for example, at home.
Possibly these conditions could contribute to greater involvement. However,
there are also some disadvantages. For example, if people’s participation in the
focus group involves touching a product, the online option may not be possible
(Clow & James, 2014).
While the Internet’s potential in market research is vast, researchers must
navigate ethical considerations and data privacy concerns. Collecting data online
requires informed consent, transparent data practices, and compliance with
relevant regulations to protect participant privacy. Responsible data handling
is paramount to maintaining the trust and cooperation of research participants
(Hair et al., 2021).

4. New Digital Marketing Research Methods

Digital technologies have had a significant impact on marketing research. This
impact can be described in several ways, including the ease of data collection,
the faster application of methods and techniques, and the development of new
techniques and methods in marketing research. In addition, the broad range of
technologies and interrelationships requiring research should be noted, including
wearables, smart TVs, mobile devices, and self-driving vehicles. Consequently,
those working in marketing research have been forced to adapt quickly and
learn new methods and techniques. The most important methods that need to be
incorporated into the lexicon of anyone working in marketing research are listed
in Table 1, with their objectives and application.

Table 1. New research methods and techniques and their objectives and application

Method Know the user Content Design Tests

Personas S N N N
Card sort S S N S
Wants and needs analysis S S N N
Group task analysis S N N N

The following sections contain a description of the main methods and

techniques that have emerged with digital technologies. Many methods that are
less commonly used or less well-known are also included in a more comprehensive
section.
The Digital Research Revolution 77

4.1. Personas
Personas allow researchers to gain a more nuanced understanding of their target
audience and are a powerful tool in marketing research. Personas are fictional
characters that are representations of a segment of a company’s target audience
(Pruitt & Adlin, 2010). These characters are created using data and research to
accurately reflect the characteristics, behaviors, and motivations of a specific
segment of the target audience. By using personas, researchers can better
understand the needs, preferences, and pain points of their target audiences and
develop more targeted and effective marketing strategies (Courage & Baxter,
2005). They can be used to segment target audiences, personalize marketing
messages, and design marketing campaigns that will resonate with the unique
needs and preferences of each persona (Pruitt & Adlin, 2010). They can also be
used to identify new opportunities and niches in the marketplace and gaps in
your product or service offering (Courage & Baxter, 2005).
Building a persona involves gathering and analyzing data to create a fictional
character that represents a segment of a company’s target audience. When building
a persona, one must follow the steps (Courage et al., 2015):
1. Conduct research: Gather data through surveys, interviews, and other research
methods to understand the characteristics, behaviors, and motivations of the
target audience.
2. Segment the audience: The data collected can be used to segment the target
audience into distinct groups based on common characteristics, behaviors,
and needs.
3. Create a profile: Use the data collected to create a detailed profile of each
segment, including demographic information, behaviors, motivations, goals,
pain points, and other relevant information.
4. Giving the persona a name and a backstory: Use the information collected
to create a fictional character that represents each segment of the target
audience. Give the persona a name and backstory to make them feel more
real.
5. Validate the persona: Once the personas have been created, they should be
validated by testing them with the target audience. Use surveys or interviews
to confirm that the personas accurately represent the target audience.
6. Use the personas: Once the personas have been validated, they may be used
in several methods and techniques.

4.2. Card Sort

Card sorting is a widely used technique and it is used to organize and evaluate
information. It helps researchers understand how people group and categorize
information based on perceived experiences and preferences. Card sorting is
a method of organizing information in which participants are asked to group
and categorize cards or items into different categories based on a set of criteria
78 Doing Marketing Research

(Spencer, 2009). The cards or items can be physical cards or digital cards, and the
criteria can be predefined or open-ended, depending on the research objectives.
Card sorting is a versatile technique that can be applied to various marketing
research objectives, including website navigation, product development, and
branding. For website navigation, card sorting can be used to determine the
best website navigation structure based on user preferences and expectations.
Researchers and designers often use card-sorting insights to inform their
information architecture (IA), to understand people’s understanding and attitudes
toward different concepts or ideas, to understand where users expect to find
content, and to inspire how content or ideas are labeled and grouped (Courage
& Baxter, 2005). The result can be an improvement in the user experience and
an increase in site engagement. In product development, based on customer
needs and preferences, card sorting can be used to identify the most relevant
product features and attributes. As a result, products can be developed that are
in line with customer expectations. And in the branding arena, card sorting can
be used to identify the most important brand attributes and values based on
the perceptions and attitudes of customers, helping the development of effective
branding strategies that resonate with customers.
Card sorting offers several advantages, namely improved data quality,
increased participant engagement, and cost-effectiveness (Spencer, 2009). It allows
participants to organize and group information in a way that makes sense to them,
leading to more accurate and meaningful data. Being a participatory technique
that encourages participants to become actively involved in the research process,
it leads to a higher level of interest and involvement. Lastly, it is a relatively
simple and inexpensive technique that can be conducted with a small sample
size, making it an accessible option (Courage & Baxter, 2005).
The execution of a card sort must follow a set of steps, described below
(Courage et al., 2015).
1. The first step in conducting a card sorting study is to define the research
objectives and criteria. This includes identifying the research questions, the
target audience, and the criteria for grouping the cards.
2. The next step is to create the cards that will be used in the study. The cards
can be physical cards or digital cards, depending on the research objectives
and the target audience.
3. The third step is to recruit participants for the study. The sample size will
depend on the research objectives and the target audience, and participants
can be recruited through online panels, social media, or email lists.
4. Once the participants have been recruited, the card sorting study can be
performed. The study can be conducted in person or online, depending on the
research objectives and the target audience. Participants are asked to group
the cards into different categories based on the criteria defined in the first
step. The study can be conducted as an open card sort or a closed card sort. In
an open card sort, participants are free to create their own categories, while in
a closed card sort, participants are provided with predefined categories.
The Digital Research Revolution 79

5. After the card sorting study is completed, the data is analyzed to identify
patterns and insights. There are several alternatives for evaluating the results
of a card sort (Spencer, 2009).
• Frequency analysis: Involves counting the number of times a card appears
in a particular category. This can help to identify the most frequently
occurring cards and the most popular categories.
• Cluster analysis: Groups the cards based on similarities in their
categorization. Cluster analysis can help to identify patterns and themes
in the data and can be used to create visual representations of the data,
such as dendrograms and heat maps.
• Multidimensional scaling (MDS): Creates a visual representation of the
data based on the similarity between the cards. MDS can help to identify
clusters of cards that are more like each other than other cards, providing
insights into users’ mental models.

4.3. Wants and Needs Analysis

Needs and wants analysis is the process of identifying customers’ wants
and needs for a product or service. It is an extremely quick and relatively
inexpensive brainstorming method for gathering user needs data from multiple
users simultaneously. If one is trying to scope the features or information that
will be included in the next release of the product, this method is ideal. The
process involves gathering information about what customers want and need,
how they use the product or service, and what features and benefits they expect
(Courage & Baxter, 2005). The goal of wants and needs analysis is to create
products and services that meet the expectations of customers and that are more
likely to be successful in the marketplace. Wants and needs’ analysis has several
applications and it can help businesses, allowing them to create new products
and services that meet the requirements stated by customers, and to identify
areas where their products or services need improvement, such as new features
or better customer support. Some of the main objectives of a needs and wants’
analysis include (Courage & Baxter, 2005): (1) Understand customer behavior
and preferences, (2) Identify market opportunities, including untapped customer
segments and unmet needs, and (3) Improve product and service development.
Wants and needs is focused on three main contexts (Courage & Baxter, 2005):
1. Information: Asking a question that tells us what information users want and
need to find or is provided by the system.
2. Tasks: Ask a question that reveals the types of activities or actions that users
expect to perform or that are performed or supported by the system.
3. Features: Ask questions that reveal the features users want or need in the
system.
The questions that are asked should mention the “ideal system” because
there is no reason to want the respondents to be limited by what they think the
80 Doing Marketing Research

technology can do. A wants and needs’ session is a brainstorming one in which
several participants are asked about their needs and wants and therefore the
participants should know what the goals and rules of the activity are. The ground
rules are: this is an ideal system, so all ideas are correct and useful; there is no
design, so participants are not trying to build the system; the annotator writes
only what the moderator paraphrases. When the number and quality of ideas tend
to decrease, and after questioning, the participants have no additional ideas, one
should then proceed to the phase of prioritization. Once there, participants can
spend about 15 minutes selecting the items they most want from the pool of ideas
they have brainstormed. Participants must choose five ideas, describe these ideas,
and justify their importance to them.

4.4. Group Task Analysis

Group Task Analysis (GTA) is a method of analyzing group work and
collaboration for the purpose of identifying areas for improvement and optimizing
performance. It breaks down a group’s tasks, identifies each member’s roles and
responsibilities, and analyzes communication and decision-making processes
within the group. Areas, where improvements can be made to increase efficiency
and productivity, can then be identified through this analysis. GTA can be carried
out at any stage of the product development lifecycle, although it can have the
most significant effects at the very beginning. In the context of digital marketing,
more specifically in relation to and confined to the website, regardless of the
device used to access it, group task analysis is used to identify the steps that
users take to complete a particular task and the sequence of those steps (task
flow) (Courage & Baxter, 2005). To develop a task flow, participants in a GTA
collaborate in small groups and discuss the processes necessary to complete a
certain task (such as registering an account or making a purchase, for example).
The activity’s generated flow is then modeled to create precise, employable task
flows for your product. The most appropriate use of GTA is in the following
contexts (Courage et al., 2015): validating task information; new domain or
adding new functions; automating tasks; competitive analysis; and improving
a product.

4.5. Other Methods and Techniques

In the previous sections, there has been an introduction and description of
models and techniques that have been developed and are used successfully in
digital contexts. Other less well-known methods are described in the following
paragraphs. An essential reference is the work of Dawson (2020). It offers a
comprehensive listing of research methods and techniques in the digital context.
The following methods and techniques are highlighted by the authors: audio
analysis, ethno-mining, eye-tracking, log file analysis, link analysis, researching
digital objects, sensor-based methods, social media analytics, social network
analysis, video analysis, virtual world analysis, wearables-based research, web
The Digital Research Revolution 81

and mobile analytics, and webometrics. Also worth mentioning is the technique
mentioned by Haigh and Hardy (2018), called digital storytelling. A narrower
perspective is proposed by Young (2008), who presents the mental model’s
technique, which is applied to the definition of task-based audience segments.
There is also an extensive and relevant bibliography on usability testing as a set
of methods and techniques that should gradually become part of the marketing
research toolbox of those working in this field (Barnum, 2020; Dumas & Loring,
2008). Three additional techniques should also be part of the toolbox: scenarios,
stories, and use cases (Alexander & Maiden, 2005). It is also relevant to mention
the set of techniques related to task analysis: task-centered system design
(Greenberg, 2004), hierarchical task analysis (Annett, 2003, 2004; Stanton,
2006), and scenario-based task analysis (Go & Carroll, 2003). As far as online
design is concerned, A/B testing (Feit & Berman, 2019; Johari et al., 2017;
Kohavi & Longbotham, 2017), heat maps (Bojko, 2009), and traffic analysis
(Madleňák et al., 2015; Prantl & Prantl, 2018) are also worth mentioning. Other
notable techniques and methods are: tree testing (Hampshire et al., 2022) and
first-click testing (Bailey et al., 2009).

5. Analytics in the Digital Marketing Age

In the digital age, marketing research has undergone a significant transformation.
This is primarily driven by two reasons which have an impact on marketing
research. First, there has been a significant increase in the amount of data,
information, and knowledge that is available for use in decision-making
processes. Second, several techniques and models can be used to make
decisions more efficient. It is also worth noting that everything is happening at
a much faster rate. Therefore, it is important to understand what is driving this
increased information, that is, what are the new sources of information? It is
also important to have an understanding of what has improved the efficiency of
the decision-making process. The list of new sources of information is a simple
one, as they are the result of technological advances. The most important of
these are the organization’s website (desktop, mobile, and apps), social media,
smart TVs, wearables, and IoT devices. Then there is the Internet itself, with its
search engines and numerous sites, which is also meaningful. As for techniques
and models, they essentially stem from the rise of artificial intelligence (AI),
specifically deep learning artificial neural networks. Blockchain technology is
also already starting to have a meaningful effect on the field.

5.1. New Sources of Information

Website analytics has emerged as a critical tool for collecting, analyzing, and
interpreting valuable data in the field of marketing research. Marketers can gain
valuable insights that drive effective marketing strategies and improve business
performance by harnessing the power of website analytics. It is a powerful
82 Doing Marketing Research

tool for data collection and analysis in marketing research (Chaffey & Ellis-
Chadwick, 2022). It allows marketers to capture a wealth of information about
website visitors (Hemann & Burbary, 2018). This includes their demographics,
browsing patterns, and interactions. Marketers can gain meaningful insights
into user preferences, interests, and engagement levels by examining metrics
such as page views, click-through rates, and conversion rates (Alhlou et al.,
2016). The ability to uncover valuable insights into consumer behavior is one
of the key strengths of website analytics in market research (Kumar et al.,
2018). Tracking user journeying helps marketers determine which pages people
visit, how long they stay on those pages, and what they do there. This data
reveals how consumers move around a site, what content they find appealing,
and what factors affect the decision process (Kaushik, 2010). This enables them
to develop targeted marketing strategies that meet consumer preferences and
deliver the results they want. Website analytics is a critical component in the
evaluation of the effectiveness of marketing campaigns (Frost & Strauss, 2016).
Marketing professionals can measure and analyze a variety of metrics to assess
their impact, including the number of visitors to a specific campaign, conversion
rates for each campaign, and return on investment (Clifton, 2012). With this
kind of insight, marketers can fine-tune their strategies, optimize the allocation
of resources, and allocate their marketing budgets more effectively (Hemann &
Burbary, 2018). But the potential is for much more than that. Through website
analytics, marketers can identify emerging market trends and take advantage of
new opportunities (Kotler et al., 2019). They can identify shifts in consumer
interests, identify emerging market segments, and adjust marketing strategies
accordingly by analyzing website traffic patterns. With this information,
companies can stay ahead of the competition, meet evolving consumer needs,
and capture untapped market potential. Furthermore, website analytics aid in
data-driven decision-making in marketing research (Malhotra et al., 2017)
because it allows to make wise judgments about product development, pricing
plans, content generation, and advertising campaigns by utilizing the insights
gained from website analytics. These choices are supported by empirical data,
reducing risks, and raising the possibility that marketing goals will be met.
Social media is another source of information. The discipline of marketing
research has been transformed by social media analytics, which offers insightful
data on customer behavior and preferences (Moe & Schweidel, 2017). It
allows to make use of the enormous amount of data produced by social media
platforms, enabling a more focused and efficient strategy to contact their target
audience (Stieglitz et al., 2018). By using this data to better understand consumer
preferences, companies may adjust their marketing campaigns and increase
engagement and conversion rates (Drivas et al., 2022). Real-time input from
social media analytics also enables marketers to evaluate the success of their
efforts in a timely manner (Fan & Gordon, 2014). They may monitor metrics
like likes, shares, and comments to see how engaged customers are (Misirlis &
Vlachopoulou, 2018). In addition, social media analytics can reveal important
The Digital Research Revolution 83

demographic and psychographic data about a brand’s target market (Taprial &
Kanwar, 2012). Marketers may determine crucial categories and target their
campaigns appropriately by looking at user profiles and engagement trends
(Drivas et al., 2022). This focused strategy increases the possibility that the
proper message will be delivered to the right audience, maximizing marketing
return on investment (Coursaris et al., 2016). Social media analytics can also
identify patterns and trends in consumer sentiment in addition to audience insights
(Batrinca & Treleaven, 2015) and allows to determine how consumers feel about
their goods or services by keeping an eye on discussions and mentions of their
brand (Coursaris et al., 2016), helping with product development, enhancing
customer service, and reputation management tactics (Wamba et al., 2016).
As for smart TVs, they provide marketers with unrivaled opportunities
to collect priceless information about consumer behavior. These devices
have tracking features that allow them to gather data about user preferences,
viewing patterns, and engagement levels. The total success of marketing efforts
can be increased by using this data, if the users provide their agreement, to
develop individualized marketing tactics. Businesses may personalize their
communications in a way that results in improved engagement and conversion
rates by having a clear understanding of the individual interests and demands of
their target audience. Additionally, Smart TVs support real-time data tracking,
giving marketers immediate access to crucial metrics. Traditional data collection
techniques, including surveys and focus groups, can experience delays and recall
bias. However, these limitations are eradicated by Smart TVs because they collect
information directly from individuals’ viewing patterns.
Wearables are intelligent electronic devices that are worn on the person’s
body. They frequently take the form of watches, fitness bands, or eyewear, and
have sensors that gather and track a variety of physiological and behavioral data.
Wearables offer a thorough representation of consumers’ lifestyles and preferences
by continuously tracking physiological and behavioral variables including heart
rate, sleep habits, and physical activity. Additionally, wearables make it possible
to get factual data that is reliable and objective, minimizing the biases that are
frequently present in self-reported surveys or recall-based techniques. They
do away with the constraints of depending exclusively on users’ subjective
recollections by offering real-time insights into consumer behavior. The wearable
data’s objectivity improves the validity and dependability of marketing research
conclusions.
Using sensors, IoT runs following the functional specification, giving users
comfort and simplicity of use (Kumar et al., 2021). The Internet of Things (IoT)
is based on a network of sensors that gather information about each object and
allow for unique identification. IoT devices can connect with one another to form
a wireless sensor network and are equipped with the ability to sense, compute, and
communicate wirelessly over short distances (Kumar et al., 2021). IoT devices
can identify and record real-world events, then communicate those events for
immediate analysis and interpretation to computer systems and data centers.
84 Doing Marketing Research

Warnings based on this analysis are automatically issued while the sensing and
analyses occur in the IoT networks’ background, hidden from the user.
According to Jindal et al. (2022), the use of IoT enhances several company
services, such as customer service, online shopping, and market digitalization.
Mobile devices, online shopping, social networking sites, digital communications,
navigational systems, and equipment are a few examples of IoT products and
services that generate large amounts of data by integrating and analyzing
consumers. The implementation of IoT, according to the authors, offers a significant
opportunity to mend client connections because it will raise user involvement and
boost consumer engagement and information accessibility as interactions become
more multichannel, multidimensional, and multilingual. Given the variety of IoT
devices and ML, from remote monitoring of the contemporary environment to
mechanical automation, it is impossible to overstate the significance of digital
marketing in the supply of services (Mondal et al., 2022). The use, storage,
and processing of data have been a significant issue. Customers routinely give
marketers data that is used to enhance services and deliver a customized customer
experience (Sachdev, 2020).
According to a more thorough and insightful description provided by Tariq
et al. (2020), technological advancements have made physical home appliances
a significant source of data and information. With this wealth of information,
businesses can find innovative ways to improve their current products or
develop completely new ones. The authors also claim that firms might offer
new customer-focused services because of the enormous volume of data. In
summary, IoT and marketing can be combined through the analysis of customer-
driven data and marketing outcomes (new product development, product support,
and customer relationship management). The IoT will take marketing to a new
degree by ensuring that there are no aspects of life, no products or services, and
no non-marketable solutions, according to Najafi et al. (2022), who go one step
further. Additionally, Dwesar and Kashyap (2022) provide a thorough overview,
summarizing current IoT applications in marketing and consumer goods, including
smart speakers, personal assistants, and smart homes; home appliances with IoT
capabilities; IoT in automobiles; IoT-Driven Customer Service; and smart medical
devices and healthcare.

5.2. Artificial Intelligence, Neural Networks, and

Deep Learning
IA is a large field of study that encompasses a variety of models or methods that
draw on ideas, perceptions, or perspectives from different fields. ML, Artificial
neural networks (ANNs) and Deep Learning, Natural Language Processing
(NLP), Decision trees, Support vector machines (SVMs), Bayesian networks,
Reinforcement learning, and Evolutionary algorithms are the main methodologies
or models (Haleem et al., 2022; Kopalle et al., 2022). As stated by Kumar et
al. (2021), AI is the intelligence that powers data-based analytics and enables
The Digital Research Revolution 85

automated decision-making; it functions in the fields of continuous learning

and automation; AI can be broadly construed as a technology that can mimic
human behavior and perform tasks in a way that is thought to be intelligent;
AI’s capacity to update and expand its knowledge base and capabilities allows
it to perform tasks that would normally require human intelligence. The
range and depth of AI applications in marketing are enormous, possibly even
staggering, according to van Esch and Stewart Black (2021). Digital marketing
organizations are advised by Suleiman et al. (2021) to include AI skills in their
operations since it ensures effectiveness, boosts productivity, and significantly
lowers operating costs. The benefits of applying AI are highlighted by Manis
and Madhavaram (2023) as follows: more operations are interconnected, using
data from a wider range of sources improving market orientation and marketing
planning capacity; specialized marketing capabilities like online personalization
and customer relationship management will be more lucratively enabled by
the use of information from a smaller range of sources; and discovering of a
deeper level of aspect-relevant data in one or more interdisciplinary databases.
According to Mikalef et al. (2021), the following activities could profit from
the implementation of IA: identification of consumer needs, choice of target
markets, quality control, process modification, resource coordination, creation
of new business models, and reconfiguration of capabilities.
The application of IA in marketing has been verified by the cross-cutting
nature of marketing activities. By analyzing vast amounts of data on consumer
behavior, preferences, and past purchases using algorithms and ML techniques,
AI can assist in product recommendations by creating personalized product
recommendations for each customer while taking into account their unique
needs and interests (Ballestar et al., 2019; Borges et al., 2021; Lepa et al.,
2020; Marchand & Marx, 2020; Qazi et al., 2020; Siering et al., 2018). Even
while pricing operations frequently remain beyond the purview of marketing
management (Arora et al., 2022; Christen et al., 2022; Kolte et al., 2023; Ren et
al., 2022; Soltani et al., 2022), AI can significantly aid in this component. It is
also feasible to mention the main activities: Product Recommendation (use that
information to generate personalized recommendations); Price (manage all pricing-
related activities); Communication (advertising management); Chatbots (customer
support, sales assistant, education, and training); Distribution and retail (manage
all distribution related activities); Brand (brand and trademark management,
manage all brand-related activities); Consumer behavior (purchase decision
forecast, manage the entire consumer decision-making process, manage the entire
engagement process); and Planning (manage the entire planning process).

5.3. Blockchain
The term ‘blockchain’ (abbreviated “BC”) has several meanings, including “data
structure”, “algorithm”, “suite of technologies”, and “pure distributed peer-
to-peer systems with a common application”. This causes problems with the
86 Doing Marketing Research

conceptual underpinnings of BC technologies in study (Stallone et al., 2021).

The word ‘blockchain’ is a combination of the words ‘block’ and ‘chain’,
where ‘block’ refers to batches of transactions and ‘chain’ refers to blocks that
are linked together cryptographically (Kumar et al., 2021). Marketplaces are
vulnerable to fraud because of the constantly growing large-scale transactions
that tempt users, hackers, and business owners to commit fraud. Transparency
and immutability can help avoid this. The BC platform supports the two
functionalities. Scalability, user privacy, and fraud difficulties can all be resolved
utilizing BC (Far et al., 2022, 2023).
According to Stallone et al. (2021), BC’s interest in marketing is primarily
due to the anticipation of more authenticity, consideration, accountability, and
transparency in reliable connections in both society and business. Peres et al.
(2022) claim that marketing research and practice are still apprehensive about
the adoption of blockchain technology and have not yet thoroughly understood
and embraced it. Also, Treiblmaier and Petrozhitskaya (2023) support the idea
that BC technology will fundamentally alter marketing substantially.

6. Concluding Remarks
The field of marketing research has undergone significant changes in the digital
age. While the knowledge of how to apply the techniques is still a requirement,
it is clear that the resources needed to conduct market research are now
considerably less. As a result, it is now easier to conduct market research than
ever before. On the other hand, it is undeniable that the capabilities provided by
technology speed up the entire research process.
Traditional marketing research methods have been redesigned and adapted
to take full advantage of technology and the changing needs of the marketplace.
Interviewing, focus groups, questionnaires, and observations, the basic and
fundamental methods, have been revamped. Researchers are now using
videoconferencing tools to conduct remote interviews instead of relying solely
on in-person interviews. This approach removes the constraints of geography and
allows for more flexibility in scheduling. It also ensures a larger pool of potential
participants and allows interviews to be recorded for later analysis. Replacing
the need for physical meetings, virtual focus groups have become increasingly
popular. This practice eliminates logistical challenges and reduces costs while
facilitating discussion, idea sharing, and group dynamics. Online surveys have
come to dominate and replace paper-based surveys. Researchers are using web-
based tools and platforms for the design and distribution of surveys to a wider
audience. Conventional observational research, where researchers physically
observe and record consumer behavior, has been enhanced by technology.
Researchers can now analyze user behavior, preferences, and interactions in
digital spaces with the proliferation of digital devices and online platforms. This
includes monitoring website traffic, analyzing social media engagement, and
tracking online search patterns.
The Digital Research Revolution 87

New techniques have also emerged and are being applied in new contexts.
The most important are personas, card sorting, wants and needs analysis, and
group task analysis. Personas are fictional representations of target customers
based on research and data. Card sorting is a user-centered research technique used
to understand how individuals categorize and prioritize information. Wants and
needs analysis involves identifying and understanding the desires and requirements
of customers and group task analysis is a research method that examines how
individuals collaborate and perform tasks in a group setting.
A final observation is that there has also been a significant improvement
in analytical capabilities as a result of the availability of more information and
new models, particularly from the field of artificial intelligence, namely neural
networks and deep learning.

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 CHAPTER

The Broadening Horizon of

Digital Marketing: Investigating its
Transversal Impact

Paula González-Padilla1 [0000-0001-7598-9800], Jose Ramon Saura1*

[0000-0002-9457-7745] and Senka Borovac Zekan2 [0000-0002-6130-4337]
1 Rey Juan Carlos University, Faculty of Economics and Business (Spain)
2 University of Split, Department of Professional Studies (Croatia)

1. Introduction
In a context of constant change in terms of all aspects that concern the business
environment, it is logical to look for the relationship between two of the terms
that influence, and plenty of, in the success of the company. Digital marketing,
along with the transversality of the same, can and already plays a very important
role in each of the processes and moments through which an organization goes
through and the results thereof. Given the strength that marketing has in most
companies, it is not surprising that they want to enhance the spirit and vocation
with which they work to other departments and areas of the organization,
prioritizing the relationship between management teams and the rest of the
workers, always offering the help and vision of the former.
When we talk about transversality within companies, we are talking about the
ability of different areas or departments to work together to achieve the common
objectives of the organization effectively and efficiently. Transversality is essential
in digital marketing so that within the scope of work we can take advantage
of resources and maximize the opportunities offered by the era of digitization
in which we have been working for years. To achieve all this, the connection
and intimate collaboration between the marketing departments and all the other
departments of the company is essential (Lacarcel & Huete, 2022). In general

*Corresponding author: [email protected]

92 Doing Marketing Research

terms, there is a widespread idea that marketing should be more transversal within
all business sectors, although it is also a reality that this transversality has evolved
and has already been implemented in many companies, despite the journey and
challenge that lies ahead. It should also be taken into account that, in general,
people working in companies and institutions tend to have a more optimistic
perception, distorting reality to a certain extent. For example, managers in the
hotel sector consider that they have a much higher degree of digitalization than
they actually have with a perception of 72.6% compared to the actual 35.7% of
digital implementation in the sector (Techyhotel Project, 2019). But what is a
reality is the perception of the need for transversality within marketing. And this
is justified by the benefits that this can bring to a sector so changing and adaptive
within companies; transversality can drive to put the focus on the customer, which
is called customer-centric and which has already been working in the last decade.
It would help to have a greater strategic vision with a holistic perspective, and
help to improve the efficiency of organizations and optimize all their processes
and resources. The search for synergies, strategic alignment, and coherence and
collaboration between the different functional areas of the company are points
to be taken into account in this relationship of concepts.
All of the above leads to consider it important to study, analyze, and draw
some conclusions, which will be presented at the end of the article, about the
transversality of digital marketing to help and encourage all those companies
interested in improving their processes and achieve greater success in their
market. The aim is to shed light on the importance of related terms and provide
value within the business environment. For all this, two research questions will
be addressed:
RQ1: Is transversality an important factor within marketing companies?
RQ2: Is transversal impact in digital marketing a growing trend?
To answer these research questions, we will work on achieving the objectives
shown here:
• Create knowledge about the relationship between marketing and transversality.
• Identify what has already been incorporated in companies and what is missing.
• To mark a line of action so that transversality has a positive effect on companies
and in the marketing area in particular.
At the methodological level, the research has been carried out through a
systematic literature review, following the ideas and procedures that other authors
such as Okoli et al. (2010) and Shaffril et al. (2021) have proposed in their own
studies dated before the current one. A detailed explanation of the methodology
can be found as the reading progresses, specifically in Section 3, where a review
of each of the steps followed to obtain the appropriate results is given. Once
these results are obtained, other important parts of the study can be completed
and evaluated, such as the theoretical implications of transversality in digital
marketing and how it affects and improves the results of organizations. In addition,
we are also working with the intention to create new theoretical content based
The Broadening Horizon of Digital Marketing 93

on the main articles and the most current relevant documents on the relationship
between the topics on which this study focuses.
The originality of this article lies precisely in the fact that it is a review
of relevant scientific literature that relates two current concepts that offer an
optimization opportunity for all organizations and companies that work with
digital marketing and in which transversality is already a feature of its structure
or is a challenge to assume this business success. Although previous literature
already exists, since it is about the relationship between two concepts that are
by their nature located in a changing environment, it is necessary to update and
study constantly. It is important to highlight precisely the contribution that is
made with this research and that involves offering results that provide significant
implications for companies and organizations with a digital presence.
This study has a specific structure designed especially for the understanding
of the same, in this way, it will be possible to find in Section 2 a theoretical
framework that will situate all the content conceptually. Then, in Section 3 you
can find the methodology with which the research has been developed, to continue
with Section 4 where all the results obtained from the research are presented.
Section 5 contains a discussion about the study and finally, to finish and compact
the information, Section 6 identifies the conclusions, the theoretical and practical
implications derived from the study, as well as an exposition of the limitations
that can be found.

2. Theoretical Framework
Marketing is an essential business discipline that has become a key player in
the business world and society in general. Nowadays, marketing is of crucial
importance due to increasing competition and the need for companies to stand out
in an increasingly saturated and globalized market (Liu et al., 2009). Marketing
is essential for any company that wants to succeed in today’s marketplace and
is understood as the process of identifying consumer needs and wants and
satisfying them in the most effective way possible. It enables companies to
understand their target audience and offer them products and services that best
meet their needs. It is also key to building and maintaining a strong brand. A
strong brand not only increases customer loyalty but can also be used as a tool
to differentiate from competitors and create a competitive advantage (Kim et al.,
2019). Marketing helps companies create a distinctive and recognizable brand
and convey their message to consumers clearly and effectively (Saura et al.,
2023).
Another reason marketing is important today is its ability to improve the
customer experience. Marketing can be used to understand customers’ needs and
wants, as well as to identify barriers to an optimal shopping experience. By better
understanding their customers, companies can improve their shopping experience
and increase their satisfaction and loyalty. It is also key to innovation and the
development of new products and services. By understanding consumers’ needs
94 Doing Marketing Research

and wants, companies can develop products and services that effectively meet
these needs. In addition, marketing can be used to test and validate new ideas
before they are launched into the market, which reduces the risk of failure and
improves the chances of success. It is also essential for the survival and growth
of companies. In an increasingly competitive marketplace, companies that fail to
invest in marketing and understand their customers’ needs are destined to fail. It
can help companies find new market opportunities, identify new audiences, and
adapt to changes in the marketplace (Saura et al., 2022). For all these reasons,
marketing is an essential business discipline that is more important today. From
understanding customer needs to building a strong brand and improving the
customer experience, marketing is key to the success of any business in today’s
marketplace.
In recent decades, digital marketing has burst onto the business scene and
has radically changed the way companies promote themselves and reach their
target audiences. The digitization of companies and their marketing processes has
been fundamental in adapting to changes in the market and meeting the needs of
digital consumers. First, digitization has enabled companies to reach a much wider
and more diverse audience (González-Padilla, 2022). Thanks to the Internet and
social networks, companies can reach people anywhere in the world and at any
time of the day (Subramanian, 2017). In addition, digital marketing has made it
possible for companies to segment and personalize their marketing messages to
reach specific audiences more precisely and effectively. Another advantage is its
ability to measure and analyze the results of marketing campaigns. Through data
analysis and monitoring of user interactions, companies can better understand their
customers’ needs and desires and improve their shopping experience. In addition,
digital analytics enables companies to adjust and optimize their marketing
strategies in real-time (Wang et al., 2022), which increases their effectiveness and
efficiency. Digitalization has also enabled companies to develop new sales and
communication channels with customers. Through digital platforms such as online
stores and mobile apps, companies can offer a more convenient and personalized
shopping experience to their customers. In addition, direct communication
through social networks and email has enabled companies to improve their
relationship with their customers and respond quickly to their needs and concerns.
Digitalization has enabled companies to reduce their marketing costs and improve
their return on investment (ROI). Unlike traditional marketing, digital marketing
is much more cost-effective and offers greater segmentation and personalization
capabilities. In addition, digital analytics allows companies to measure the
performance of their marketing campaigns and optimize their investment based on
the results. The emergence of digital marketing has brought about a fundamental
change in the business world and has transformed the way companies promote
their products and services. Digitalization has enabled companies to reach wider
and more diversified audiences, improve customer experience, reduce marketing
costs, and improve ROI (González-Padilla & Lacárcel, 2023).
The Broadening Horizon of Digital Marketing 95

Cross-functionality within companies refers to the ability of different areas

or departments to work together to achieve the company’s objectives effectively
and efficiently. In the context of digital marketing, transversality is essential for
companies to take full advantage of the opportunities offered by digitization; it
requires close collaboration between marketing departments and the company’s
technology to develop and implement effective digital strategies and perform
timely and successful collaborative work. Digital marketing involves close
collaboration between different departments, such as, for example, marketing
and sales (Lacárcel, 2022). Digital strategies are designed to generate leads and
convert them into customers through different digital channels. Therefore, the
sales department must work closely with the marketing department to ensure that
leads are served and converted into effective sales.
Another important aspect of transversality in digital marketing is the
collaboration between marketing and customer service departments. Digitalization
has enabled customers to communicate directly with companies through social
media and other digital channels (Stalmachova et al., 2022). Therefore, the
customer service department must work closely with the marketing department to
ensure that customers are served effectively and satisfactorily. The transversality
in digital marketing also implies close collaboration between different areas
within the marketing department. For example, social media management,
content creation, and digital advertising management are activities that require
close collaboration and coordination between different teams and areas within
the marketing department (Herhausen et al., 2020). This cross-cutting aspect is
essential to ensure that companies can take full advantage of the opportunities
offered by digitalization. Collaboration between different areas and departments
enables companies to develop and implement effective digital strategies and
improve the customer experience. Cross-cutting also enables companies to
optimize their resources and reduce marketing costs, which in turn improves
their profitability and competitiveness in the market.
Digital marketing and transversality are interrelated concepts that are
transforming the way companies do business (Gómez & Orejuela, 2021).
Digitalization has enabled companies to reach wider and more diversified
audiences, improve customer experience, and reduce marketing costs.
Transversality, meanwhile, allows companies to make the most of the opportunities
offered by digitalization, working in close collaboration between different areas
and departments to achieve the company’s objectives effectively and efficiently.
Together, digital marketing and transversality are essential for any company that
wants to succeed in today’s market.

3. Methodology
To carry out this research on transversality in marketing, we have resorted to
a methodology based on a systematic literature review to ensure that the study
is carried out in a professional, rigorous, transparent, and reproducible manner,
96 Doing Marketing Research

to provide value and identify what are the keys in this relationship of concepts
and how companies can work in this line to improve their processes and results.
The purpose of this Systematic Literature Review (SLR) is to provide the reader
with a comprehensive summary of the available literature. The documents were
extracted from one of the most relevant bibliographic databases in the field of
Social Sciences: Web of Science (WoS). SLR is a methodology that focuses on
being a type of literature review that collects and critically analyzes those studies
and research through a strict systematic process (Ramírez & García-Peñalvo,
2018). In this way, the work of different researchers, scholars, and practitioners
in the chosen field can be identified, evaluated, and interpreted (Rother, 2007).
These studies that are reviewed and analyzed offer data and information that
has been previously worked on by other researchers and come from already
published articles, which provide valuable results that are summarized in the
conclusions of the study.
To eliminate the subjectivity of the researchers in the collection of
information, a keyword search was carried out in the bibliography. For this study,
a structure similar to that proposed by Lacárcel et al. (2021) was used, in which
the key terms of the research were first identified and then the relevant searches
were performed. The search terms were “digital marketing”, “cross-cutting
impact”, and “business”. The search was limited to scientific articles published
in journals included in the WoS database from 2020 to the present. The WoS
data query was performed in March 2023 and a total of 2,403 documents were
obtained, which allowed more accurate and complete results to be obtained by
filtering and narrowing the search.
A thorough review of the details of the documents, such as the title, abstract,
and keywords, was carried out to verify their relevance to the topic in question
(Figure 2). In some cases of doubt or greater interest in a particular article, the
entire document was read to extract the most relevant parts. In this way, all
documents that did not significantly address the topic in question were excluded.

Table 1. Search protocol and results

Database Web of Science (WoS)

Date range 2020–2023
Search date March 2023
Search terms “digital marketing” AND “transversal” OR “business”
Initial number of documents 2,403
Filtred process Research areas: Business Duplicates
Economics Author not
identified
Inclusion criteria: Articles, Open Not related to
Access the topic
Final number of documents 10
Source: Own elaboration
The Broadening Horizon of Digital Marketing 97

As a result, a sample of 10 documents was obtained, after performing a PRISMA

diagram to present the progress through the articles extracted from the previously
mentioned database. In the next sections of the research, the results obtained will
be analyzed and the influence and importance of transversality in the business
world, specifically in the field of digital marketing, as well as its impact on the
learning and study of professionals will be explored.
To achieve rigorous and objective research, it is essential to conduct a
systematic review with strategies that limit errors. Authors such as Noble et al.
(2019) highlight the importance of systematic review in research, noting that
reproducible and explicit selection criteria should be used, a thorough search
of all relevant articles on the topic should be conducted, and the synthesis and
interpretation of results should be evaluated. In addition, the systematic review
allows the use of both quantitative and qualitative approaches to collect data
through primary studies using mathematical and methodological tools to create
a combined effect and thus be able to conclude with a synthesis of the evidence
that is generated. This methodology is based on the collection of data from a
representative sample, which increases the precision and generalization of the
results (Ortiz et al., 2004).
On the other hand, if the aim is to answer the same question by integrating
different studies, the sample size can be increased and, therefore, statistical power
can be increased (Dickersin & Berlin, 1992). This can be very useful to obtain a
more complete and accurate view of the subject of study. In short, the systematic
review is a fundamental tool for achieving rigorous and objective research and
makes it possible to obtain a strict evaluation of the published information,
increase the sample size, and use different approaches to collect data and generate
a synthesis of the available evidence.
The present study employs a literature review as a method to analyze
the relationship between two fundamental concepts in the business world:
transversality and its impact on digital marketing businesses. To accomplish
this task, key terms such as “digital marketing” and “transversal impact” have
been used in the relevant literature, to identify studies that address the research
questions posed in this study. In cases where the results are inconclusive, general
terms such as ‘business’ have been considered (Figure 1). After this stage,
previously established selection criteria have been applied to filter relevant
articles, conferences, or book chapters. Once the relevant studies were obtained,
they were examined in detail to determine whether they contained key terms
for the research. Consequently, studies that do not relevantly address the topics
under study were excluded.

Figure 1. Search terms in database (Source: Own elaboration).

98 Doing Marketing Research

Figure 2 below shows the fields that have been used to search the databases.

Figure 2. Fields in databases (Source: Own elaboration).

The research focused on the publications that include these terms in the
following database, according to the search criteria. Specifically, we used the WOS
database. Searches were performed focusing on titles, abstracts, and keywords to
identify the most relevant contributions in the field.
As a result, a total of 2,403 related articles were obtained, of which 68 met
the established criteria. Figure 3 shows the PRISMA process with which we
carried out the methodology.

Figure 3. PRISMA (Source: Own elaboration).

Figure 4 represents the methodological process used in this research. First,

two relevant databases, WOS, were searched using the key terms “digital
marketing” and “transversal impact” or ‘business’, resulting in 2,403 articles.
The results were then filtered to focus on the research objective. The results
were refined according to Table 1, which includes the restriction that the articles
The Broadening Horizon of Digital Marketing 99

must have been published between 2020 and 2023, be Open Access, and fall
under the category of Business Economics. Then, the results were analyzed by
reading titles, abstracts, and keywords, discarding those that were not related to
the research objective. Finally, 10 potential articles were selected.
Table 2 details the potential articles identified in the search process, including
information on their authors, the journal in which they were published, and the
most relevant data for each article. This table is useful for providing readers with
an overview of the studies considered in the literature review, allowing them to
better understand the evidence base used in the research.

Table 2. Included articles

Authors Publication Main feature

Bolzani and Luppi Education + Training • Describe the use of a business
(2021) model challenge to assess students’
entrepreneurial skills.
• We propose a competency
assessment that includes specific
business skills.
Calero López et Empirical Research in • Analyze the relevance of transversal
al. (2020) Vocational Education competencies in education and
and Training professional training.
• They highlight the importance of
acquiring transversal skills for
employability.
Hinojo Lucena et Innovar • Analyze the relationship between
al. (2020) transversal skills and business
productivity.
• They highlight the importance
of acquiring transversal skills
to improve the efficiency and
competitiveness of companies.
Llamas et al. Habilidades de • Describe the importance of
(2019) pensamiento y transversal skills in project
creatividad management.
• They highlight the need to develop
transversal skills in organizations
to improve their effectiveness and
efficiency.
Melović et al. Technology in Society • Digital marketing has provided
(2020) companies with new opportunities to
interact with consumers.
• The integration of digital
technologies has enabled companies
to improve their efficiency.
(Contd.)
100 Doing Marketing Research

Table 2. (Contd.)
Authors Publication Main feature
Monsees et al. International Political • They analyze the transversal political
(2023) Sociology implications of technology in
contemporary societies.
• They highlight the need for a critical
and transversal perspective in the
analysis of technology and its effects.
Rana et al. (2020) International Journal of • Analyze how nostalgia can be
Organizational Analysis used in marketing to improve the
relationship between consumers and
brands.
• Proposes a conceptual framework to
investigate the relationship between
nostalgia and marketing.
Remondes (2020) International Journal • Explore how the transversality of
of Marketing, digital communication can impact a
Communication and company’s marketing strategy.
New Media • Analyze how digital communication
can be used to improve the
relationship between companies and
their customers.
Tariq et al. (2022) International Journal • Digital marketing capabilities have
of Data and Network a positive effect on organizational
Science ambidexterity.
• Organizational ambidexterity can be
a key success factor for information
technology companies.
Zamora-Polo et al. Applied Sciences • Proposes a methodology for the
(2019) development of transversal skills
in project managers using Building
Information Modeling (BIM).
• Examines how the use of BIM
can improve the development
of transversal skills in project
managers.
Source: Own elaboration.

4. Analysis of Results
Digital marketing is a discipline that has experienced an unprecedented boom
in recent years, transforming the way companies interact with their customers
and promote their products and services, as well as the way they work and
develop their projects internally. The impact of digital marketing is not only
limited to sales strategy but also has a cross-cutting impact on areas such as
communication, technology, data management, and corporate culture. Previously,
The Broadening Horizon of Digital Marketing 101

companies relied heavily on traditional media such as television, radio, or

newspapers to reach their audience. However, thanks to digital marketing,
companies can reach their target audience more effectively and directly through
digital channels such as social media, email, or search engine optimization
(SEO). In addition, companies can interact more closely with their customers
through these platforms, allowing them to get real-time feedback and improve
their customer service. Digital marketing has also had a cross-cutting impact on
technology, driving the development of new tools and platforms that facilitate
communication and interaction between companies and customers. Artificial
intelligence, big data, and automation are just some of the technologies that
have been developed, thanks to digital marketing. These technologies allow
companies to collect and analyze large amounts of data, which helps them to
better understand their customers and adapt their marketing strategy accordingly,
as well as to have greater control over each of the processes they work with.
As mentioned by Saura (2021) digital marketing has had a cross-cutting impact
on data management. Companies are increasingly using data to make informed
decisions about their marketing and sales strategies. The information gathered
through different digital platforms allows companies to gain a complete view
of customer behavior and adapt their strategy accordingly. In addition, digital
marketing has enabled the development of new forms of data analysis, such as
predictive analytics, which helps companies anticipate their customers’ needs
and offer them a more personalized experience.
It has also had a cross-cutting impact on corporate culture. Companies are
adopting a more customer-centric mindset, which means they are putting the
customer at the center of their operations and making decisions based on their
needs and wants. This translates into a greater focus on customer service and
greater transparency in communication. In addition, digital marketing has driven
the creation of new business models, such as e-commerce and affiliate marketing,
that are changing the way companies do business.
Taken together, these articles suggest that transversal competencies are
becoming increasingly relevant in the workplace and educational environment.
Employers increasingly value these competencies in university graduates and
their identification and assessment is key to student development and improved
business productivity. In addition, the authors suggest that vocational education
and training should focus on the development of cross-cutting competencies
in students. One of the research projects examines the role of transversal
competencies in business productivity (Hinojo et al., 2020). The authors argue
that traditional management approaches have emphasized technical competencies,
with the importance of transversal competencies in improving productivity. They
conclude with the identification of six key transversal competencies that have
a positive impact on productivity: communication skills, teamwork, problem-
solving, flexibility, creativity, and adaptability. It also highlights the need for
companies to incorporate cross-cutting competencies in their human resources
policies to improve productivity. Along the same lines, the content of another
102 Doing Marketing Research

research has been analyzed in which they focus on the importance of transversal
competencies in project management (Llamas et al., 2019), thereby identifying
eight key competencies that are critical for project management: communication,
teamwork, leadership, conflict management, creativity, problem-solving, decision
making, and time management. The study underscores the need for companies to
assess the cross-cutting competencies of project managers to ensure the success
of marketing-focused projects.
It has also been possible to detect the role of social media in promoting
transversality in digital communication. The study argues that social media
have transformed communication by enabling individuals and organizations to
communicate across traditional boundaries (Remondes, 2020). The study uses a
qualitative approach to analyze the communication strategies of six companies
and concludes that social media have enabled companies to promote transversality
in digital communication, which has improved customer engagement and
loyalty. Adding to this idea is the role of BIM in the development of transversal
competencies in project management from which it can be subtracted that it is
an effective tool to promote transversal competencies in project management
(Zamora-Polo et al., 2019). Other authors examine the transversal policy of
large technological companies and argue that large technological companies have
significant political power and that their activities have transversal effects on
various sectors of the economy, having a direct implication on the communication
and marketing side (Monsees et al., 2023). Thanks to this SLR, it has been possible
to detect the importance of the assessment of entrepreneurial competencies through
a business model challenge (Bolzani & Luppi, 2021), the results indicate that
students improve their understanding of entrepreneurial competencies as they
progress through the business model challenge. Furthermore, the authors suggest
that the assessment of entrepreneurial competencies should be more focused
on the learning process and not only on the results, but a line also followed by
another of the articles analyzed, raising the relevance of transversal competencies
in vocational education and training, indicating that transversal competencies are
increasingly relevant in the work environment (Calero & Rodríguez-López, 2020).
Thanks to the research, it can also be stated how digital transformation and
digital marketing have affected brand promotion and e-business (Melović et al.,
2020, evidencing that there is still great potential to improve digital transformation
empowering that digital marketing is an important tool for companies and that
companies that use it have better brand positioning and higher online sales than
those that do not implement impactful digital strategies. They also reveal that
many companies are still not taking advantage of the full potential of digital
marketing due to a lack of knowledge and experience in this area, and some
of them are not willing to invest in digital marketing as much as they should
due to the costs associated with this strategy. Despite the challenges faced by
companies in implementing digital marketing, they need to adopt this strategy to
improve their brand positioning and increase online sales, creating cross-cutting
competencies that would indeed play a role of great impact on their bottom line.
The Broadening Horizon of Digital Marketing 103

It also highlights the need for the government and other relevant institutions
to promote digital transformation and educate companies about the importance
of digital marketing for business success and the transversal skills of different
professionals working in different departments.
Digital marketing capabilities influence organizational ambidexterity in the
information technology (IT) sector. Organizational ambidexterity refers to an
organization’s ability to balance exploring new opportunities and exploiting its
current resources (Tariq et al., 2022). The organization’s ability to adapt quickly
and adjust to market changes is essential for its survival and success. Thus, it
is determined that the exploration dimension of organizational ambidexterity is
more influenced by digital marketing capabilities than the exploitation dimension.
It is concluded that IT companies need to develop and enhance their digital
marketing capabilities to improve their organization and all the organizationally
derived capabilities needed to operate successfully within the digital marketplace.
Companies must also strive to balance exploration and exploitation to succeed in
an increasingly competitive and dynamic business environment: (l) Importance
of digital marketing in the success of information technology companies is an
inescapable reality today. (2) Furthermore, an organization’s ability to balance
exploration and exploitation is critical to its survival and success in today’s
business environment. Therefore, companies must strive to improve their digital
marketing capabilities and achieve optimized organizational capacity to remain
competitive.
In short, digital marketing has had a cross-cutting impact on different
business areas. From communication to technology, data management, and
business culture, digital marketing has transformed the way companies interact
with their customers and promote their products and services. It has also driven
the development of new technologies and tools that facilitate communication
and interaction between companies and customers, enabling them to gain a more
complete view of customer behavior.

5. Discussion
Digital marketing has had a cross-cutting impact on the way marketing is done
today. It has transformed how companies interact with consumers, how they
reach them, how they promote their products and services, and how they collect
and analyze data about their behavior. As a result, companies are rethinking
how they organize their marketing departments and the roles and skills needed
to succeed in the digital environment. One of the main advantages of digital
marketing is the ability to reach a wider and more diverse audience, especially
through online platforms and social networks. Companies can reach consumers
around the world and tailor their message to specific audiences through market
segmentation. In addition, digital marketing is highly measurable and allows for
almost immediate feedback on marketing tactics, enabling companies to adjust
their strategies and increase their effectiveness.
104 Doing Marketing Research

However, digital marketing also presents challenges. The speed of digital

technology means that companies need to keep up with the constant changes
in online platforms and consumer preferences. The increasing amount of data
collected also presents challenges in terms of privacy and data security. In
addition, the saturation of the digital marketplace means that companies need to be
increasingly creative and innovative to stand out and capture consumer attention.
Another important aspect to consider in discussing the cross-cutting impact of
digital marketing is the importance of digital skills. With the increasing relevance
of digital marketing, companies are looking to hire professionals with advanced
digital skills, including the ability to manage data and analyze performance
metrics. In addition, marketing employees are expected to have skills in areas
such as graphic design, video production, and social media management. In short,
digital marketing has had a cross-cutting impact on different business areas. From
communication to technology, data management, and business culture, digital
marketing has transformed the way companies interact with their customers and
promote their products and services. It has also driven the development of new
technologies and tools that facilitate communication and interaction between
companies and customers, enabling them to gain a more complete view of
customer behavior.
In summary, the cross-cutting impact of digital marketing on the marketing
field is significant and continues to evolve. While it presents challenges, the
advantages of accurate measurement, market segmentation, and the ability to
reach global audiences are too important to ignore. Companies must stay current
with the latest trends in digital technology and ensure they have the internal
capability to implement effective online marketing strategies, while also having
cross-functional strategies working within their teams and departments.

6. Conclusions
The main objective of this research has been to identify what is the transversal
impact of digital marketing and which competencies are important for collaborative
work within companies, to benefit from all the competitive advantages that can
be achieved by being up to date in these concepts, implementing specific digital
marketing strategies for each of the organizations or digital companies.
To obtain these results, a Systematic Literature Review (SLR) was carried out
in which ten potential articles were initially identified. In addition, other studies
that provided relevant insights were included in each section of the research.
Thus, it can be seen that there is a clear need for further research on this topic,
as no similar studies have been found in the academic or business literature. This
analysis highlights the importance and relevance of the topic, which leads to the
conclusion that there is great potential for the development of new research in this
area. Therefore, this study aims to open new perspectives in this line of research.
In conclusion, the ten selected articles highlight the importance of digital
marketing and its cross-cutting impact on different work dynamics. There are
The Broadening Horizon of Digital Marketing 105

cross-cutting competencies in various aspects of business and marketing. The

articles provide information on the role of transversal competencies in improving
productivity, employability, project management, and digital communication.
The articles also highlight the need for companies to incorporate transversal
competencies into their human resources policies to ensure success in a rapidly
changing business environment. In addition, the articles highlight the significant
cross-cutting power of large technology companies and their impact on various
sectors of the economy. Overall, the articles emphasize the need for individuals
and organizations to develop and promote transversal competencies to succeed
in today’s complex and interconnected business environment.
In reference to the first question posed (Is transversality an important factor
within marketing companies?), it can be affirmed as ‘yes’. Applying transversal
work strategies within companies, especially those within the marketing field,
has a positive impact on work dynamics. Having specific knowledge about
the implementation of these transversal strategies makes the success of the
organization greater in each of the processes for which it works, as well as for
the communication and internal dynamics of each of the departments.
In response to the second question posed at the beginning of this research (Is
the transversal impact in digital marketing a rising trend?), after analyzing and
reviewing the existing literature on the topic of interest, it can be stated ‘yes’.
There is a real impact that is a rising trend for other companies to exemplify the
results of other organizations that are already benefiting from and can work more
efficiently thanks to transversality.
It is essential to keep in mind that the implementation of cross-functional
strategies not only entails the need to acquire new skills and knowledge but
it also implies a cultural and organizational change in the company. Business
leaders must understand the importance of a culture of collaboration and open
communication, where teamwork is encouraged, and diversity of ideas and
perspectives is promoted. In addition, continuous education and training is the
key to keeping employees up-to-date on the latest trends and tools in digital
marketing and business transversality. This is the only way to maximize the
benefits and positive results that the implementation of cross-functional strategies
can bring to a company.

6.1. Theoretical Implications

This research presents an innovative and current approach in the field of digital
marketing and its transversal impact on companies. Through the systematic
review of the literature, it has been identified that there is a lack of specific
studies that analyze this topic exhaustively and deeply. For this reason, it is
hoped that this study will serve as a starting point for future research that delves
even deeper into this topic.
106 Doing Marketing Research

In addition, due to the dynamic and constantly evolving nature of the digital
world, it is necessary to continue updating and revising the findings of this study
as new formulas and relevant behavioral factors are developed. It is hoped that
this study will serve as a useful tool to simplify complex concepts related to
digital marketing and promote new research that will allow companies to take
advantage of all the opportunities offered by this ever-growing field.

6.2. Practical Implications

In addition, it is important to note that this study not only focuses on the
implementation of transversal strategies but also on the education and training of
transversal skills in workers, which can improve productivity and the company’s
ability to adapt to the constant changes in the digital market. Likewise, the
use of appropriate tools and technologies can be a competitive advantage for
companies in today’s market.
In short, this study offers a comprehensive view of how the implementation of
transversal strategies can improve the effectiveness of digital marketing companies
and how training in transversal skills can improve the adaptability of workers
to market changes. It is therefore a valuable tool for all digital companies and
professionals looking to improve their results and their positive impact on the
market.

6.3. Limitations and Future Research

It’s important to point out that the limitation in the period and the selection
of databases do not diminish the relevance of the results obtained, which are
valuable to understand the impact of the implementation of transversal strategies
in the world of digital marketing. Likewise, it can be emphasized that the trend
toward digitalization of the market is a continuous and constantly evolving
process, which implies that research on this topic must continue to be a priority
in both the academic and business fields. Therefore, this study can serve as a
starting point for future research in this constantly developing area of study.
Regarding the academic and research side, the lack of literature in this field
may open new opportunities for future research, since many aspects have not yet
been addressed and that could be studied. For example, the impact of transversal
strategies on companies of different sizes, sectors, and business cultures, or how
these strategies can be adapted to different digital platforms.
In addition, in terms of the professional side, the knowledge and application
of transversal strategies in the digital world can be beneficial both for companies
and for marketing and communication professionals. The implementation of these
strategies can improve the effectiveness of marketing practices, improve the quality
of services and products offered, and improve the relationship with customers
and other departments within the company. All of this can translate into higher
sales, better business results, and greater customer satisfaction.
The Broadening Horizon of Digital Marketing 107

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 Part 3
The Digitalization of
Business Sales
 CHAPTER

Digital Technologies and the Issues,

Tasks, and Knowledge of Sales Teams

Mika Yrjölä1*[0000-0003-4388-075X], Pia Hautamäki2 [0000-0003-0100-6386]

and Malla Mattila1 [0000-0003-3317-4579]
1
Tampere University (Finland)
2
Tampere University of Applied Sciences (Finland)

1. Introduction
Digitalization is continuing to transform business-to-business (B2B) sales
processes and practices (Fischer et al., 2022). Recent disruptions and trends, such
as the COVID-19 pandemic, energy crisis, war in Europe, and the ‘consumerism’
of B2B buyers, have further driven organizations to adopt digital technologies
(Hartmann & Lussier, 2020; Lauzi et al., 2023; Rangarajan et al., 2021). This
became concrete during the COVID-19 pandemic when sales organizations were
forced to conduct sales activities remotely without physically meeting their
customers (Hartmann & Lussier, 2020). Most importantly, customer preferences
and behavior are changing. Already customers are equipped to search for
product information independently. Recent reports have highlighted how sales
organizations are driven to digitalize their B2B sales operations due to changes
in customer behavior (Bages-Amat et al., 2020; Gartner, 2020, 2022) Gartner
(2020) reports how B2B buyers want to engage with their suppliers only through
digital and self-service channels. In the same report, Gartner expects that up to
80% of sales interactions will occur digitally by 2025. Today, as much as 72%
of B2B buyers desire a self-service purchase experience (Gartner, 2022). Bages-
Amat et al. (2020) claim in their report that even complex B2B sales will soon
be done remotely. In their study, 35% of B2B customers say they do not need
to meet with a salesperson during their purchase. In the same report, 27% of
the respondents were ready to make demanding and complex B2B purchases,

*Corresponding author: [email protected]

112 The Digitalization of Business Sales

up to an amount of 500,000 USD, fully remotely and self-assisted in digital

environments (Bages-Amat et al., 2020). Further, Ahearne et al. (2019) show
that only 19% of customers will contact the sales organization when they need
more information about the service or product they are buying.
In addition to changes in customer behavior and expectations, digitalization is
influencing organizations’ business models, innovations, and operations in business
markets (Fischer et al., 2022; Hinterhuber, 2022; Mostaghel, et al., 2022; Paiola &
Gebauer, 2020). Thus, digital technologies are also transforming how organizations
market their products and services. For instance, sales interactions today are
mostly held in digital environments, such as digital platforms (Rangarajan et al.,
2021). While sales personnel still have a fundamental role in selling complex
B2B services and products (Ahearne & Rapp, 2010; Cuevas, 2018; Guenzi
& Nijssen, 2021; Fischer et al., 2022; Mullins & Panagopoulos, 2019), many
aspects of sales work can be automated and augmented with digital technologies
(Guenzi & Habel, 2020). As an example, digital technologies, such as artificial
intelligence (AI), are increasingly performing the tasks that were previously the
sales organization’s responsibility (Bongers et al., 2021; Huang & Rust, 2018).
Increasingly, B2B exchanges and sales can be automated from both the supplier
and customer side (Guenzi & Habel, 2020; Singh et al., 2019; Thaichon et al.,
2018). Further, digital technologies can allow sales organizations to scale their
operations and to accurately predict key indicators, such as the share of wallets
of their customers (Huang & Rust, 2018; Mahlamäki et al., 2020; Rangarajan
et al., 2021).
Recently, there has been a growing body of research into the effects of
digitalization on B2B exchanges (Rapp & Beeler, 2021; Ritten & Pedersen, 2021;
Singh et al., 2019). Researchers have studied, for instance, digital marketing
implementation (McIntyre & Srinivasan, 2017; Rangaswamy et al., 2020), use of
social media in B2B sales processes (Agnihotri, 2021; Fraccastoro et al., 2022),
and interactional digital platforms (such as Microsoft Teams, Zoom, Skype) and
different e-commerce platforms as a part of B2B selling (Shree et al., 2021;
Thaichon et al., 2018). Studies have shown how the digitalization of selling is
increasing revenue, profitability, and effectiveness of sales organizations (Ahearne
& Rapp, 2010; Rangarajan et al., 2021). Digitalization can support salespeople
in developing customer relationships, value-based selling, and understanding
customer needs (Hunter & Pierreault, 2007; Rodriguez & Honeycutt, 2011). In
addition to these clear benefits, recent studies have highlighted a need to carefully
manage the digitalization of sales, because it is changing the sales models,
competencies, and value propositions required from sales organizations (Hunter
& Pierreault, 2007; Singh et al., 2019; Thaichon et al., 2018).
Managing the digitalization of sales is no easy task as contemporary B2B
sales is a complex set of activities. For example, sales activities include a broad
group of stakeholders participating in value creation, – not ‘just’ salespeople
(Hartmann et al., 2018). As another example, sales managers are emphasizing
ways of offering internal services for frontline employees (Rapp & Beeler, 2021)
Digital Technologies and the Issues, Tasks, and Knowledge of Sales Teams 113

by aligning the resources of a sales organization optimally (Peterson et al., 2021)

– sometimes called sales enablement. Moreover, digital technologies are blurring
the lines between sales and marketing functions (Marshall et al., 2012). This,
too, influences the strategic decisions of sales organizations related to the sales
models, sales structures, and sales orientations (e.g., Cuevas, 2018; Thaichon et
al., 2018). As an example, the number of sales models and structures used in
sales organizations has increased (Cuevas, 2018; Zoltners et al., 2021). Taken
together, the increased complexity of sales processes and the introduction of
digital technologies have challenged managers and organizations to pay attention
to various strategic and operational issues, such as adequate coaching for sales
personnel (Wiseman et al., 2022). In this environment, the current knowing
and doing may become obsolete, particularly if salespeople continue to rely on
their previous sales routines (Mattila et al., 2021). Therefore, managers in sales
organizations should change how selling is conducted and managed in their
organizations (Mattila et al., 2021; Singh et al., 2019).
Building on the above discussion, the purpose of this chapter is to discuss the
effects of digitalization on B2B sales. More specifically, we outline the potential
effects of digital technologies in three areas: the issues, tasks, and knowledge of
B2B sales. To better concretize the possible effects of digitalization, we turn our
attention to three specific technologies affecting sales: digital platforms, sales
automation, and social media. The rest of the chapter is organized as follows.
We first present and discuss our conceptual framework for analyzing the effects
of digitalization on B2B sales. Then we briefly review the literature discussing
the three digital technologies mentioned above. These studies are then linked to
our conceptual frame to outline how digital technologies affect the issues, tasks,
and knowledge of sales teams. Conclusions and limitations complete the chapter.

2. Conceptual Framework: The Issues, Tasks, and

Knowledge of B2B Sales
We build on the model suggested by Tollin (2008) who focuses on three
managerial areas: issues, tasks, and knowledge. Each of these areas represents
a different perspective: a strategic (issues), a process (tasks), and a knowledge
perspective (knowledge). Large shifts in the business environment, such as
digitalization, will make some ways of knowing and doing obsolete (Klammer
& Gueldenberg, 2019), and therefore they require sales teams to adapt consider
new strategic issues, change the way they perform their tasks, and update
their knowledge.
First, issues related to those areas and actions that are strategically important
for sales teams. Rather than describing what to do (i.e., tasks), issues are about
the scope of action and where to direct attention (Day & Schoemaker, 2004).
Issues, therefore, relate to organizational matters that are on the company’s or sales
teams’ agenda (Tollin, 2008). For instance, customers are relying less and less
114 The Digitalization of Business Sales

on sales personnel during their purchase journeys (Ahearne et al., 2019), which
can have dramatic implications for the resources, capabilities, and organization
of sales teams.
Second, tasks involve the key business processes and responsibilities of the
sales team. In essence, tasks describe what it is that sales teams actually do in
the organization (Tollin, 2008). Digitalization has the potential to alter, eliminate,
or enhance many tasks of the sales team, such as lead generation, customer
acquisition, or customer service. A prominent example of such developments is
how marketing and sales automation can reduce the manual tasks performed by
sales personnel (Singh et al., 2019; Thaichon et al., 2018). Technologies, such as
AI, can also add efficiency to sales tasks rather than completely eliminating the
need for a sales professional (Mahlamäki et al., 2020; Rangarajan et al., 2021).
Third, knowledge represents a key managerial resource (Tollin, 2008). It
encompasses individuals’ experiences, insights, values, and contextual information
(Staples et al., 2001). To succeed in digitalization, individuals working in
sales teams will be required to adapt to new types of thinking and unlearn old
mental models (Guenzi & Nijssen, 2021; Mattila et al., 2021). The knowledge
perspective is important because there are large differences in how individuals and
organizations change their behavioral patterns (tasks) and their beliefs (knowledge)
(Mehrizi & Lashkarbolouki, 2016; Yildiz & Fey, 2010). It is often harder to forget
irrelevant past knowledge than it is to abandon problematic routines and processes
(Tsang, 2008). Moreover, abandoning core values and assumptions may be even
more difficult for individuals (Hislop et al., 2014).
In summary, we analyze the issues, tasks, and knowledge related to the
digitalization of B2B sales (Figure 1).

Figure 1. A framework for analyzing the digitalization of B2B sales.

Digital Technologies and the Issues, Tasks, and Knowledge of Sales Teams 115

As illustrated in Figure 1, the issues reflect a strategic and visionary

perspective (Tollin, 2008) on digitalization: which kinds of organizational matters,
(here issues), related to digitalization are on the sales teams’ agenda? Tasks, in
turn, take a process perspective and are occupied with how digitalization alters
the tasks of the sales team. Finally, the knowledge perspective maps out the types
of insights needed to succeed in the digitalization of B2B sales.

3. Digitalization Through Digital Platforms, Sales

Automation, and Social Media
While digitalization can come about through a wide range of technologies and
applications, we choose to focus on three digital technologies that have the
highest potential to transform B2B sales: digital platforms, sales and marketing
automation, and social media.
First, digital platforms in B2B sales have lately gained increasing interest
among researchers (McIntyre et al., 2021; Syam & Sharma, 2018; Thaichon
et al., 2018). In recent years, digital platforms have increased their role in
B2B markets (Loux et al., 2020; McIntyre & Srinivasa, 2017; Thaichon et al.,
2018). While most platforms targeting consumers rely on network effects, B2B
platforms focus on the effective organization of sales resources and opportunities
to interact with existing customers on a shared platform (Gawer & Cusumano,
2014; Sheth & Sharma, 2008). For B2B sales organizations, platforms represent
an opportunity to scale their sales operations and increase customers’ self-service
options during purchase journeys (Mattila et al., 2021). Digital platforms can
support self-service buying by compiling the offering’s elements together in a
way that allows customers to make selections quickly and conveniently (Gawer
& Cusumano, 2014; Hartmann et al., 2018).
At the same time, platform-based business models allow individuals and
organizations to innovate and interact for common value creation in ways that have
not previously been possible (Cusumano et al., 2019; Ramaswamy and Ozcan,
2018). For example, complementors can join buyers and sellers on platforms and
add their products and services to enhance the overall attractiveness and value of
the platform (e.g., Gawer, 2014; McIntyre & Srinivasan, 2017; Rangaswamy et
al., 2020). In such an environment with several actors operating towards common
goals, sales organizations need to pay attention to the roles of these new non-
traditional actors in B2B sales (e.g., Hartmann et al., 2018). Trust among different
actors and toward the platform itself is a key requirement for platform value
creation (Trabucci et al., 2021). Moreover, the roles of sales and marketing can
shift from driving transactions and closing deals toward growing the number of
platform users and motivating these users to interact for common value creation
(Gawer & Cusumano, 2014; McIntyre & Srinivasan, 2017; Rangaswamy et al.,
2020).
116 The Digitalization of Business Sales

Platforms can allow for efficient sales processes and service delivery
(Mourtzis et al., 2020; Singh et al., 2019; Thaichon et al., 2018). Moreover,
platforms can allow sales teams to connect and interact with customers even
in the very early stages of their purchase journeys (Rusthollkarhu et al., 2021).
However, it should be noted that digital platforms can vary greatly from one
another in terms of openness to third parties, price structures, channels, and
transaction mechanisms (Täuscher & Laudien, 2018). In sum, platform features
related to connectivity, matchmaking, personalization, and community creation
can add value for all participants, but at the same time call for new competencies,
roles, and resources from the sales organization.
Second, today’s sales organizations are investing in sales and marketing
automation to stay competitive. Estimates show that much of sales work can
be easily automated (Bages-Amat et al., 2020), which drives sales teams to
rethink their resources and roles for the future. Moreover, recent studies have
demonstrated that sales and marketing automation can enable more effective time
management, increased productivity, and seamlessly transforming sales leads into
revenue (Järvinen & Taiminen, 2016; Paschen et al., 2020; Singh et al., 2019).
Tasks such as lead generation and lead qualification can be fully automated.
AI is used to gather and evaluate sales lead information from external databases
and by sending the first contact to the potential sales lead by automatized email
(Hallikainen et al., 2018; Moncrief, 2017). Further, automation can also be used in
building sales contracts based on the information received from the customer and
in notifying salespeople to contact their accounts at the optimal timing (Paschen
et al., 2020; Rangarajan et al., 2021; Singh et al., 2019; Syam & Sharma, 2018).
While sales teams have previously been crucial for generating customer awareness
and educating potential customers (e.g., Dixon & Tanner, 2012), much of this
work can be automated.
Moreover, automation can be present on websites where AI-based chatbots
(Järvinen & Taiminen, 2016; Singh et al., 2019) or sales configurators (Mahlamäki
et al., 2020) can reply to customer queries or help them finalize their purchases.
Despite automation, salespeople are likely to still play a fundamental role in
selling complex B2B services and products in the future (Ahearne & Rapp, 2010;
Cuevas, 2018). Automation can free up salespeople from administrative tasks,
such as preparing contracts, making follow-up calls, or updating the customer
relationship management system (e.g., Hunter & Perreault, 2007). Salespeople
can thus focus on solving demanding customer questions and problems.
Third, social media technologies have permanently changed sales processes
(Agnihotri, 2020; Ancillai et al., 2021; Cartwright et al., 2021), and this also
affects how B2B sales are conducted. Social media allows direct and personal
communications with customers as well as offering tools and analytics that
can generate customer insight (Rodriguez et al., 2012). Active and informal
discussions with customers can add value throughout the customer’s purchase
journey (Chuang, 2020) as well as enable the fostering of long-term relationships
(Rodriguez et al., 2012). Further, social media allows sales teams to promote
Digital Technologies and the Issues, Tasks, and Knowledge of Sales Teams 117

their offerings in new ways as well as to position themselves as thought leaders

in their field via creating social media content (Mero et al., 2023). Due to these
features, it is no surprise that studies have shown that the use of social media
tools improves sales processes and sales performance (Ahearne & Rapp, 2010;
Rodriguez et al., 2012).
Social media is changing sales work as well as being deployed in traditional
sales tasks, such as customer acquisition. Increasingly, sales personnel are
maintaining contact with customers through social media and interacting with
customers in new ways (Mattila et al., 2021). Thus, the lines between marketing-
and sales-related tasks are blurring. At the same time, social media can be used
in traditional sales tasks, such as lead generation, lead qualification, and customer
acquisition (Agnihotri, 2020; Ancillai et al., 2021; Meire et al., 2017) as well as
entering new markets (Bocconcelli et al., 2017). All this means that sales managers
need to reconsider and reconfigure current sales practices to support the transition
toward digitalization in B2B sales (Mattila et al., 2021).
To conclude, the above discussion highlights how digital technologies have
the potential to transform B2B sales operations and organizations. Next, we discuss
how these technologies impact the issues, tasks, and knowledge of sales teams.

4. The Impact of Digital Technologies on B2B Sales

In this section, we discuss how these technologies impact the issues, tasks, and
knowledge of sales teams (Table 1).

4.1. How Do Digital Technologies Affect Issues in B2B Sales?

We identified three broad areas in which digital technologies affect the issues
related to the management of sales teams.
The first of these broad areas relates to how and to what extent sales teams
interact with customers. Digital platforms create an overall need to re-evaluate
customer interactions, as platforms allow for more opportunities for influencing
and interacting with customers (Sheth & Sharma, 2008; Thaichon et al., 2018) as
well as interactions between customers. This issue can have large ramifications
for sales teams in terms of the skills and mindsets needed to interact on these
platforms. Digital platforms can also enable customer self-service (Hartmann
et al., 2018), an issue shared with sales automation (Mahlamäki et al., 2020).
Customers are increasingly preferring self-service (e.g., Ahearne et al., 2019).
Sales configurators are supporting customers in completing their purchase journeys
(Guenzi & Habel, 2020; Mahlamäki et al., 2020) without the need for a physical
meeting with a salesperson. Allowing customers to complete their purchase
processes alone partially or fully can make some sales work redundant, while, on
the other hand, they can free sales personnel to focus on more non-routine sales
activities. Moreover, both sales automation and social media technologies impact
the management of customer journeys and customer relationships. For instance,
 Table 1. The effects of digital technologies on the issues, tasks, and knowledge of sales teams

118
Digital Issues: What issues and actions Tasks: How digitalization affects the Knowledge: What types of
technology are strategically important in key business and management individual experiences and insights
digitalization? processes in sales? are needed as organizations
digitalize sales?

Digital • Re-evaluate the nature of customer • Redefine sales tasks to focus on • Adopt a competitive mindset
platforms interactions on platforms (Sheth & attracting and motivating platform toward platform complementors
Sharma, 2008; Thaichon et al., 2018) users and complementors (Gawer • Recognizing the platform
• Identify possibilities for improving & Cusumano, 2014; Haucap & business logic (Mattila et al.,
internal efficiency and increasing Heimeshoff, 2014; McIntyre & 2021; Paiola & Gebauer, 2020)
customer self-service to better match Srinivasan, 2017) and defining the sales ecosystem
customer wants (Hartmann et al., • Use sales personnel in coordinating and including customers and
2018) improving interactions among users complementors
(Rangaswamy et al., 2020) • Understand how to attract users
to platforms as well as how to
incentivize these users

The Digitalization of Business Sales

Automation • Identify customer self-service • Automate lead generation and • Develop insight on how to
possibilities to free up sales contacting of leads (Hallikainen et al., re-design sales processes for
personnel’s time (Ahearne et al., 2018; Moncrief, 2017) automation
2019; Hunter & Perrault, 2007; • Use automation to track, schedule, • Keep an open mindset toward AI
Mahlamäki et al., 2020) and manage customer contacts and and automation possibilities
• Manage customer journeys and relationships (Hunter & Perreault 2007; • Consider customer responses to
relationships more effectively Rangarajan et al., 2021) automation
(Fischer et al., 2022; Rusthollkarhu
et al., 2022)
 • Improve sales skills through • Use automation to evaluate

Digital Technologies and the Issues, Tasks, and Knowledge of Sales Teams
monitoring, training, and simulations performance and improve planning
(Singh et al., 2019) (Huang & Rust, 2018; Mahlamäki
et al., 2020; Moncrief, 2017)
• Automate customer service (Huang &
Rust, 2018; Rangarajan et al., 2021;
Singh et al., 2019)
Social media • Integrate social media into • Use social media data for in lead • Use social media to improve
customer journeys and relationships generation, evaluation, and customer understanding of customers
(Agnihotri, 2021; Chuang, 2020; acquisition (Agnihotri, 2020; Ancillai (Agnihotri, 2020; Rodriguez et
Fraccastoro et al., 2022; Marshall et et al., 2021; Järvinen & Taiminen, al., 2012)
al., 2012; Rodriguez et al. 2012) 2016; Meire et al., 2017; Rodriguez et • Acknowledge and influence
• Acknowledge the blurring line al., 2012) customer engagement (Agnihotri,
between marketing and sales • Develop close and meaningful 2020; Guesalaga, 2016; Leckie
(Cuevas, 2018; Marshall et al., 2012; customer relationships (Rodriguez et al., 2022; Trainor et al., 2014)
Thaichon et al., 2018) et al., 2012) • Use social media to generate
competitor insight (Marshall et al.
2012)

119
120 The Digitalization of Business Sales

AI can be used by sales teams to manage customer journeys (Rusthollkarhu et al.,

2022), while social media can help engage customers in new ways (Rodriguez et
al., 2012). Increasingly, sales teams must acknowledge that social media can be
an important part of sales processes (Agnihotri, 2021; Fraccastoro et al., 2022).
Social media can further allow customers to define which kinds of relationships
they want to develop with salespeople (Marshall et al., 2012) and to involve
social media into their customer journeys (Chuang, 2020).
The second area involves the skills of sales teams. While digital platforms
and social media seem to have a limited impact on this area, sales automation, in
turn, can greatly affect the development and use of sales skills. On one hand, sales
automation can free up sales personnel’s time from administrative/non-sales tasks,
such as preparing contracts, making follow-ups, or updating the CRM database
(Hunter & Perrault, 2007). On the other hand, automation and AI can improve
the skills of the sales team. For instance, AI and chatbots can give sales training
by using simulations, monitoring, and feedback (Singh et al., 2019).
The third area relates to the complex relationship between marketing
and sales functions. This complexity is prevalent regarding the use of social
media technologies (Marshall et al., 2012). The blurring line between sales and
marketing is a strategic issue influencing how sales organizations develop their
sales models, structures, and orientations (Cuevas, 2018; Thaichon et al., 2018).
Already, digitalization is increasing the number of sales models and structures in
organizations (Cuevas, 2018), and the future will show how sales organizations
will ultimately respond to this new division of responsibilities between sales
and marketing.

4.2. How Do Digital Technologies Affect Tasks?

We identified three broad areas in which digital technologies affect the tasks of
sales teams. The first area relates to lead generation and customer acquisition
tasks. Platform-based business models have the potential to change sales tasks.
For example, in a platform setting, the role of sales teams can be to focus on
growing the number of (high-quality) platform users (Gawer & Cusumano,
2014; Haucap & Heimeshoff, 2014). Moreover, sales can also be tasked with
attracting complementors to platforms (McIntyre & Srinivasan, 2017). In terms
of sales automation, lead generation can be greatly enhanced via the automatic
gathering and evaluation of sales lead information from external databases
(Moncrief, 2017) as well as the automatic sending of initial emails to potential
sales leads (Hallikainen et al., 2018). In addition, social media provides a source
of data that can be used in lead generation, evaluation, and customer acquisition
(Agnihotri, 2020; Ancillai et al., 2021; Järvinen & Taiminen, 2016; Meire et al.,
2017; Rodriguez et al., 2012). Social media can also help sales organizations
enter new markets (Bocconcelli et al., 2017).
The second task area relates to customer interactions. In a platform context,
sales teams can be tasked with coordinating and improving interactions among
Digital Technologies and the Issues, Tasks, and Knowledge of Sales Teams 121

users (Rangaswamy et al., 2020). In terms of sales automation, it has the

potential to automate tasks related to tracking communications with customers
and scheduling follow-ups (Hunter & Perreault, 2007; Rangarajan et al., 2021).
Naturally, social media can transform customer interactions. Social media offers
opportunities for customers to have close connections with sales representatives
and to easily receive answers to questions both during the early buying phase as
well during the long-term partnership (Rodriguez et al., 2012).
The third task area, closely related to the previous one, involves customer
service tasks. In general, automation and AI can assist sales teams in providing
enhanced customer service and selling by sorting historical patterns and social
media profiles and evaluating performance (Moncrief, 2017; Rangarajan et al.,
2021). AI can model customer behavior and use this data to help in predictions
and planning activities (Huang & Rust, 2018; Mahlamäki et al., 2020; Rangarajan
et al., 2021). Furthermore, AI-powered technologies can track customers’ website
behavior or product usage and generate suggestions for these customers (Huang
& Rust, 2018; Mahlamäki et al., 2020; Rangarajan et al., 2021). Automation can
also be used in customer service tasks, as inbound marketing tools and chatbots
assist website visitors and respond to customer questions (Järvinen & Taiminen,
2016; Singh et al., 2019).

4.3. How Do Digital Technologies Affect Knowledge?

Digitalization is greatly affecting the knowledge required by sales teams.
This leads to a need to adapt new types of thinking and unlearn old mental
models (Hislop et al., 2014; Mattila et al., 2021; Tsang, 2008). In this section,
we specifically discuss the required mindsets, insights and experience, and
contextual knowledge through three broad areas.
Firstly, in terms of mindsets, the emergence of digital platforms creates a
need to re-evaluate assumptions and goals related to sales activities. As explained
above, the role of sales teams in a platform setting might be to attract users and
complementors to a platform. This means that sales teams will have to adopt a
coopetitive mindset toward platform complementors, who might be competitors
(Crick, 2019). Furthermore, as platform revenue models might be based on
subscriptions and licensing fees (Paiola & Gebauer, 2020), sales teams will benefit
from recognizing the platform’s business logic. This might prove to be difficult,
as it requires unlearning old sales mindsets revolving around closing large deals
(Mattila et al., 2021). While automation and social media certainly affect the issues
and tasks facing sales teams, they do not, presently, pose a dramatic change to
business logics that would require a large mindset change.
Secondly, in terms of the required insights and relevant experience, sales
teams will need to understand how to attract users to platforms as well as how
to incentivize these users to actively take part in platform interactions and
value creation. Insights are also needed on how to re-design sales processes for
automation. Furthermore, as sales automation progresses, more knowledge is
needed on customer responses to automation. For instance, it would be beneficial
122 The Digitalization of Business Sales

to understand which kinds of calls to action (CTA) work best in automated

messages as well as understand the extent to which customers appreciate
automation versus the human touch in sales.
Finally, in terms of contextual knowledge, social media provides a source
of data and insights that can be used to improve the understanding of customers
(Agnihotri, 2020; Rodriguez et al., 2012). This has allowed sales teams to develop
sales models that can answer complex customer needs, which can often span
several business units in the customer organization (Rodriguez et al., 2012). In
a social media context, it is important to acknowledge and influence customer
engagement (Trainor et al., 2014), as engagement it has the potential to secure
recurring customer orders (Agnihotri, 2020). While engagement can be gauged
via the amount of customer social media activity and referrals (Guesalaga,
2016), a more nuanced approach considers customers’ cognitive and affective
involvement, as well as inner-self and social identity expression (Leckie et al.,
2022). To develop a more nuanced understanding of customers, Agnihotri (2020)
suggests using AI to monitor and analyze the social media interactions between
sales personnel and customers. Further, social media has the potential to generate
competitor insight, as it allows for monitoring competitor actions and positioning
(Marshall et al., 2012).

5. Concluding Discussion with Future Research

Suggestions
This chapter sought to discuss the potential effects of digitalization on sales
teams. The chapter constructed a conceptual model to address the issues, tasks,
and knowledge of sales teams concerning digitalization. To better concretize the
possible effects of digitalization, we chose to focus on three specific technologies
affecting sales: digital platforms, sales automation, and social media. Building
on a review of the literature discussing these three digital technologies, the
identified studies were then linked to our conceptual frame to outline how
digital technologies affect the issues, tasks, and knowledge of sales teams.
In terms of issues, our analysis notes how digitalization can impact customer
interactions, sales skills, and the roles of sales teams. For tasks, digitalization
can both automate and augment existing sales tasks as well as bring about new
ones. In terms of knowledge requirements, digitalization can drive sales teams
to adopt new ways of thinking as well as offer new ways to generate customer
and competitor insights. We hope our discussion and the accompanying Table 1
serve to highlight how digitalization has the potential to change the issues, tasks,
and knowledge (Tollin, 2008) of sales teams.
While discussing the many effects of the three chosen digital technologies on
the issues, tasks, and knowledge of sales teams, our conceptual framework also
provides a possibility to consider the digital technologies’ relationship to sales
teams’ human capital, social capital, and managerial knowledge aspect that also act
as pathways for advancing the work that we have started in this chapter (Table 2).
Digital Technologies and the Issues, Tasks, and Knowledge of Sales Teams 123

First, digital technologies offer means to both explore and exploit the
human capital of sales teams. As shown in this chapter, digital technologies are
increasingly assigned to handle administrative and/or routine sales tasks, such
as responding to customer requests, assisting website visitors, and otherwise
automating customer service (e.g., Mahlamäki et al., 2020; Rangarajan et al.,
2021). These changes enable the sales teams to develop their expertise through,
for example, training (Singh et al., 2019) and other experiences gained while
interacting and building trusted relationships with their customers.
Second, digital technologies influence sales teams’ social capital by enabling
the sales teams to pool resources and information from and interact with such
actors that may not have previously been considered relevant for successfully
running B2B sales activities, such as platform complementors (e.g., Gawer &
Cusumano, 2014; Haucap & Heimeshoff, 2014; McIntyre & Srinivasan, 2017).
As shown in the chapter, this kind of resource pooling, with the help of digital
technologies like social media, may for example enable the sales teams to improve

Table 2. Summary of issues worthy of future research

Sales teams’ Topics Examples of interesting research questions

competencies
Human capital Issues • What kind of human capital is needed in future
B2B sales?
• What is the effect of digitalization on the
productivity of the sales team’s human capital?
Tasks • How will the increased use of digital technologies
change key tasks of sales teams about their
human capital?
• How can the division between non-human and
human tasks within sales processes be effectively
made?
Knowledge • What kind of expertise is required for B2B
sellers in the future?
• How can digitalization be utilized in the
development of sales teams’ human capital?
Social capital Issues • How can sales teams pool and make use of
individual sales personnel’s networks?
• How does digitalization change the personal and
professional networks of sales teams’ members?
Tasks • What kinds of new tasks related to sales
networking and the use of sales networks will
emerge alongside digitalization in sales?
• Through what kinds of procedures can sales
teams attract customers who are in several digital
environments and networks?
(Contd.)
124 The Digitalization of Business Sales

Table 2. (Contd.)
Sales teams’ Topics Examples of interesting research questions
competencies
Knowledge • How can sales teams, with the help of digital
technologies, identify collaborators that improve
sales effectiveness?
• What kind of understanding and knowledge
is required for B2B sellers to effectively act in
different networks and sales channels?
• How do sales teams recognize and make sense of
their sales ecosystems?
Managerial Issue • How do different digital technologies change
knowledge existing sales strategies and models?
• How can digital technologies facilitate the
abandonment of obsolete sales strategies?
• How will the integration of face-to-face and
digital technologies be made in different
selling phases and processes, and how does this
integration affect the sales teams’ performance?
Tasks • What kinds of (new, refined) sales roles may
the utilization of different digital technologies
entail?
• How can sales teams, and individual sellers within
them, bring forth the need for reconfiguring their
existing tasks without having to fear losing their
jobs?
Knowledge • How do sales teams make sense of the
digitalization taking place in B2B sales and the
different digital technologies that are supporting
their work?
• How can managers advance the development
of a shared understanding of the use of digital
technologies among the sales teams, and do so
without sacrificing the multiplicity of knowledge
residing in them?

their lead generation (e.g., Moncrief, 2017) and further enhance sales teams’
interactions with customers throughout customer journeys (e.g., Agnihotri, 2021;
Ancillai et al., 2019).
Third, our chapter shows that digital technologies are changing sales teams’
knowledge and understanding of what contemporary (digitized) sales may entail.
For sales teams, digital technologies enable improving their understanding of
customers (including customers’ needs and wants) and enhancing customer
engagement efforts (e.g., Agnihotri, 2020; Leckie et al., 2022), in addition to
getting data-based insights for sales processes’ re-design. They also provide means
for adopting more collaborative and experimental mindsets in sales organizations
Digital Technologies and the Issues, Tasks, and Knowledge of Sales Teams 125

that have been indicated to be required to effectively manage complex B2B sales
processes in the digital era (Guenzi & Nijssen, 2021; Mattila et al., 2021).
To conclude, this chapter has discussed the effects of three digital technologies
(digital platforms, automation, and social media) on B2B sales and their influence
on sales teams from the strategic (issues), process (tasks), and knowledge
perspectives. We hope that our chapter brings value for future research building
on this approach to sales teams and, in particular, how sales teams themselves can
better make sense of and act upon the emerging opportunities in the digital era.

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 CHAPTER

Relationship Marketing in the

Age of Digital Marketing

Paulo Botelho Pires1* [0000-0003-3786-6783], José Duarte Santos1,2

[0000-0001-5815-4983] and Ricardo Silva3 [0009-0003-1301-8613]
1
CEOS.PP, Portugal
2
Accounting and Business School of the Polytechnic of Porto, Portugal
3 Francisco Gentil Portuguese Oncology Institute of Porto, E.P.E., Portugal

1. Introduction
Relationship marketing (RM) is a marketing approach that places an emphasis on
establishing and upholding lasting relationships with customers by emphasizing
their loyalty and satisfaction. Through tailored communication and the provision
of value-added services, it is an approach that emphasizes the significance of
customer retention and the importance of creating a close relationship with them.
The development of RM can be dated to the late 1980s and early 1990s, when
academics first became aware of the shortcomings of traditional transactional
marketing (Sheth & Parvatiyar, 1995).
Berry (1983), one of the first academics to write on RM, stressed the value
of creating lasting ties with clients in his article “Relationship Marketing”.
Instead of only focusing on recruiting new clients, he stated, companies should
prioritize keeping their current customers and forging relationships with them.
Berry’s research on RM set the path for subsequent studies by other academics.
In his article “Marketing is Everything”, McKenna (1991) made the case that
marketing should focus on more than merely promoting products to customers.
He recommended that companies concentrate on developing a customer-centric
culture and cultivating trust and loyalty among their customers. Also important
was a paper titled “Relationship Marketing: Theory, Methods, and Applications”,

*Corresponding author: [email protected]

132 The Digitalization of Business Sales

published by Sheth and Parvatiyar (1994). They proposed attracting, sustaining,

and strengthening customer relationships as the definition of RM in this study. RM,
they claimed, was a reaction to the market’s shifting dynamics, which included it
becoming more competitive and customer-focused. Peppers and Rogers (1993),
who wrote The One-to-One Future, are other well-known experts in RM. The
book developed the idea of one-to-one marketing, which is a customized method
of marketing that emphasizes forming bonds with specific customers. RM also
emerged as a response to the growing competition and customer demands for
higher quality, value, and service (Gummesson, 1994). Scholars recognized that
the traditional transactional model of marketing, which focused on acquiring new
customers, was insufficient to create sustainable competitive advantages (Hunt
& Morgan, 1996).

2. Key Principles of RM
The main idea behind RM is that a company’s success is based on its ability
to develop strong, mutually beneficial relationships with customers rather than
solely focusing on short-term sales transactions (Gummesson, 1994). RM is
founded on the principle of mutual value creation (Gronroos, 1994), which
means that companies should seek to create value for their customers and, in
turn, customers will create value for the company by providing repeat business,
positive word-of-mouth references, and increased loyalty. This approach
emphasizes that marketing is a two-way exchange between the company
and its customers, where both parties benefit from the relationship (Vargo &
Lusch, 2004).
A key tenet of RM is that retaining customers is more cost-effective than
acquiring new customers, as it can cost up to five times more to attract a
new customer than to retain an existing one. By retaining existing customers,
companies can reduce the costs associated with acquiring new customers and
increase their overall profitability (Reichheld & Sasser, 1990). Customer lifetime
value (CLV) is a measure of the net present value of the future profits that a
customer will generate for the company over their entire relationship with the
company. Retaining customers and CLV have a lot in common. Furthermore, loyal
customers are more likely to provide positive feedback and recommendations
to others, which can help to attract new customers and expand the company’s
customer base. Referring to Morgan and Hunt (1994), RM is the process of
attracting, maintaining, and enhancing customer relationships. It involves a
continuous process of communication and interaction between the company and
its customers, with the aim of developing trust and loyalty over a long period
of time. According to Grönroos (1994), RM seeks to create a bond between
the customer and the company that goes beyond the transactional exchange of
products and services. This bond is built on the basis of trust, mutual respect, and
a commitment to satisfying the customer’s needs and wants over the long term.
Relationship Marketing in the Age of Digital Marketing 133

Customer centricity is another of the key principles of RM. That is, the
company puts the customer at the center of its marketing strategy and seeks to
understand and meet their needs and wants. As Kotler and Armstrong (2012)
acknowledged, the essence of marketing is the development of satisfying
relationships with customers, and listening to customers, understanding their
needs, and responding to their feedback is the only way to achieve this. Another
key principle of RM is the focus on creating value for customers. As noted by
Kotler (2020), RM is about creating value not just for the company, but also
for the customer. This entails creating products and services that cater to the
wants and needs of the consumer while also ensuring a smooth and satisfying
customer experience. Companies that prioritize value creation are more likely
to build strong and enduring relationships with their customers. Another key
principle of RM is the importance of two-way communication between the
customer and the company. This communication should be based on listening to
the customer’s needs, concerns, and feedback and responding to them in a timely
and effective manner. As noted by Morgan and Hunt (1994), RM involves not
only understanding the customer’s needs but also communicating the company’s
values, goals, and objectives to the customer in a way that resonates with them.
One can still point out the need for customization and personalization of the
marketing message and product offerings. This means tailoring the product and
service offerings to meet the unique needs and preferences of individual customers.
As noted by Peppers and Rogers (1993), RM recognizes that customers are not
homogenous but rather have diverse needs and wants that need to be addressed
on an individual basis. Yet, there are additional principles of RM that are also
considered important by some scholars. One such principle is the concept of
customer empowerment, which refers to giving customers more control over the
relationship with the company by providing them with information, tools, and
resources that enable them to make informed decisions and actively participate in
the relationship (Gummesson, 1999a). Another principle is the focus on building
a network of relationships rather than just a single relationship with the customer.
This means recognizing that customers are often part of larger networks of
individuals and organizations, and that building relationships with these networks
can lead to increased customer loyalty, referrals, and other benefits (Anderson &
Narus, 1990). Last but not least, several scholars emphasize the importance of trust
as a fundamental RM principle. Consistent and reliable performance, transparency,
and honesty in all customer interactions nurture trust (Morgan & Hunt, 1994).
The benefits of RM are numerous and well-documented. Companies
that engage in RM are more likely to achieve customer satisfaction and
loyalty (Morgan & Hunt, 1994), which can translate into increased revenue
and profitability over time (Berry & Parasuraman, 2004). By building strong
relationships with customers, companies can also benefit from positive word-
of-mouth marketing, as satisfied customers are more likely to recommend the
company to others (Reichheld, 2003).
134 The Digitalization of Business Sales

3. RM Schools
Even though RM complies with the requirements to be considered as a school
of thought in marketing, the main references and proponents do not consider
it as such. This is the case with the proposals of Hunt (2010), Arndt (1985),
Sheth et al. (1988), and Shaw and Jones (2005). Only Vargo and Lusch (2008),
in their periodization of thought, refer to RM as a disciplinary area but do not
frame it as a school of thought. And just as there are different proposals for the
structure of marketing schools of thought, there are different suggestions for the
organization of RM schools.
A conceivable taxonomy is one that uses the ideas and the concepts that define
them and that has five schools. The first school is known as the transactional
school and is rooted in the idea that the primary goal of marketing is to maximize
short-term profits by persuading customers to buy more products or services
(Palmer et al., 2005). According to this school, building long-term relationships
with customers is not a priority, and may even be counterproductive if it distracts
from the goal of increasing sales in the short term (Sheth & Parvatlyar, 1995).
The second school is the interactional school which emphasizes the importance
of building long-term relationships with customers by focusing on interactions
and communication, and customer loyalty is built through a process of ongoing
dialogue and collaboration between the company and the customer. Key concepts
within this school include customer participation, collaboration, and dialogue
(Gummesson, 2002). The third school is the database school which highlights
the use of technology and data to build and maintain customer relationships, and
companies should collect and analyze customer data to better understand their
needs and preferences, and use this information to tailor their marketing and sales
efforts to individual customers (Peppers & Rogers, 1993). The fourth school is
the networking school which stresses the value of building relationships with
other companies and organizations to create value for customers, and companies
can create more value for customers by collaborating with other organizations
to provide complementary products and services (Snehota & Hakansson, 1995).
The fifth school is the relationship quality school which focuses on the relevance
of building high-quality relationships with customers, rather than simply
maintaining long-term relationships, and high-quality relationships are built on
trust, commitment, and mutual satisfaction, and are essential for creating long-
term customer loyalty (Gronroos, 1994).
Using researchers and research streams as classification criteria is another
possible taxonomy and the most widely accepted in the literature and in this
scheme, there are four schools of RM. The first one is the IMP Group (Industrial
Marketing and Purchasing Group), which is a network of researchers and
practitioners who focus on the study of business-to-business relationships and
networks. The IMP approach emphasizes the significance of inter-organizational
relationships and networks in the creation and exchange of value (Håkansson &
Relationship Marketing in the Age of Digital Marketing 135

Snehota, 2000). This requires a deep understanding of the needs and preferences of
other companies in the network, as well as the ability to integrate and coordinate
resources across different companies and organizations. The IMP approach places
a greater emphasis on the role of networks and relationships between companies,
rather than individual customers. It also stresses the value of understanding the
broader social and cultural contexts in which business relationships and the
importance of ongoing interaction and communication between companies in the
creation and exchange of value. The founding members of the group included
Hakan Håkansson (Håkansson & Snehota, 1989; Snehota & Hakansson, 1995),
who was a professor of business administration at the University of Uppsala in
Sweden at the time, and his colleague Jan Johanson (Johanson, 1986), as well as
researchers from other universities in Scandinavia and the UK.
The second school is referred to as the Nordic School. It was a group of
researchers and practitioners from Scandinavia who have contributed significantly
to the development of RM, having an approach that highlights the impact
of customer relationships and value creation through collaboration and co-
creation (Gronroos, 2002). Its key concepts include customer value, relationship
development, and service-dominant logic (Sheth & Parvatiyar, 2000). It reinforces
the critical nature of creating value for customers by co-creating products and
services with them, rather than simply selling products to them. To achieve this, it
is indispensable to have a deep understanding of customer needs and preferences,
as well as ongoing communication and collaboration between the company
and the customer. It also promotes the relevance of relationship development
over time, implying that relationships between companies and customers are
built over time through a continuous process of interaction, communication,
and trust building. It requires a long-term perspective and a commitment to
building sustainable relationships with customers. Customer satisfaction and
creating value for customers through personalized and customized services are
also key. The Nordic School perspective is grounded in a service-dominant logic
that privileges the centrality of services in the creation and exchange of value
(Sheth & Parvatiyar, 2000). Hence, in the service-dominant logic, all economic
exchange is fundamentally a service exchange in which customers seek to obtain
value through the use of services. The school was founded by service marketing
scholar Christian Gronroos (Gronroos, 1994).
The third is what’s known as the Anglo-Australian school. It was founded by
Berry and Parasuraman (2004), who introduced the concept of relationship quality
as a critical determinant of customer loyalty. According to the authors, relationship
quality is the degree to which a customer perceives that a firm provides superior
service, treats them fairly, and satisfies their needs (Payne, 2000). The school also
put prominence on customer data and technology in building and maintaining
customer relationships, as well as the need for a customer-centric culture
within the organization. Other relevant key concepts include trust, commitment,
communication, and customer loyalty. It identifies trust as a key element in
136 The Digitalization of Business Sales

the development of long-term customer relationships. Trust is built through an

ongoing process of interacting, communicating, and demonstrating commitment
to customer needs and preferences. In developing long-term relationships with
customers, commitment is also relevant. Commitment is the willingness to
invest time, resources, and effort in the development and maintenance of long-
term customer relationships. Communication is another key element. Effective
communication involves listening to customer needs and preferences, as well as
providing clear and timely information to customers about products and services.
Finally, the importance of customer loyalty in the development of long-term
relationships is also stressed. Customer loyalty is built through a combination of
trust, commitment, and effective communication, and involves a willingness on
the part of the customer to continue to do business with the company over time.
The fourth school is called the American school, also known as the network
school, which focuses on the role of social networks and relationships in RM.
It was founded by Berry (1983) and reveals the value of network structures
and social ties in building and maintaining customer relationships (Palmer et
al., 2005). According to the author, a network is a set of social relations among
actors, each of whom occupies a position in the network and can potentially
access and exchange resources with others in the network. The school also
highlights how important it is to develop trust and commitment among network
members, and how social capital can create value for customers (Berry, 1995).
Other relevant concepts include customer orientation, customer satisfaction, and
customer retention in the development of long-term relationships with customers.
A customer-oriented mindset is essential for building strong relationships with
customers, including understanding their needs and preferences and tailoring
products and services to meet those needs and preferences. Customer satisfaction
is another key concept. The goal is to exceed customer expectations and provide
an exceptional customer experience that fosters long-term loyalty and repeat
business by not only providing high-quality products and services but also by
creating a positive and memorable experience for customers (Palmer et al., 2005).
To build long-lasting relationships, customer retention is also crucial. Retaining
customers is frequently more cost-effective than finding new ones, and loyal
customers can function as effective brand ambassadors and aid in word-of-mouth
by recommending the company to others.

4. Definitions and Constructs

After presenting the schools and theoretical principles underlying RM, knowing
that the purpose of this chapter is to identify the transformation that digital has
caused in RM, we proceed to review the definitions of RM and identify the main
constructs that fall under its scope. Starting with the definition of RM, Table 1
contains the most important references, which were prepared with information
from Harker (1999), Gupta and Sahu (2012), and Agariya and Singh (2011).
Relationship Marketing in the Age of Digital Marketing 137

Table 1. The most important definitions of RM

Reference Definition
Hammarkvist et al., It comprises all the activities by the firm to build, maintain, and
1982 develop customer relations.
Levitt, 1983 It can be viewed as a process consisting of five stages,
namely awareness, exploration, expansion, commitment, and
dissolution.
Jackson, 1985 It refers to marketing activities oriented toward strong, lasting
relationships with individual accounts.
Turnbull & Wilson, It is defined as the formation of long-term buyer-seller
1989 relationships through the creation of structural and social bonds
between companies.
Grönroos, 1990 The role of RM is to identify, establish, maintain, and enhance
relationships with customers and other stakeholders, at a profit,
so that the objectives of all other parties involved are met;
and that this is done by a mutual exchange and fulfillment of
promises.
Gummesson, 1990 Marketing can be viewed as the building, maintenance, and
liquidation of networks and interactive relationships between
the supplier and the customer, often with long-term implications.
Therefore, marketing becomes first and foremost RM.
Berry & RM concerns with attracting, developing, and retaining
Parasuraman, 1991 customer relations.
Webster Jr, 1992 It is a process of understanding and managing profitable
customer relationships by delivering superior customer value,
service, and satisfaction.
Gummesson, 1994 RM emphasizes a long-term interactive relationship between
the provider and the customer and long-term profitability.
Morgan & Hunt, It is defined as all marketing activities directed toward
1994 establishing, developing, and maintaining successful relational
exchanges.
Grönroos, 1996 RM is to establish, nurture, and enhance relationships with
customers and other partners, at a profit, so that the objective
of the partners involved are met. This is achieved by a mutual
exchange and fulfillment of promises.
Bennett, 1996 RM refers to all marketing activities directed toward
establishing, developing, and maintaining successful relational
exchanges.
Ravald & Grönroos, The core of RM is relations, maintenance of relations between
1996 the company and the actors in its micro-environment. The idea
is first and foremost to create customer loyalty so that a stable,
mutually profitable, and long-term relationship is enhanced.
(Contd.)
138 The Digitalization of Business Sales

Table 1. (Contd.)

Reference Definition
O’Malley & Tynan, RM involves the identification, specification, initiation,
1997 maintenance, and (where appropriate) dissolution of long-term
relationships with key customers and other parties, through
mutual exchange, fulfillment of promises, and adherence to
relationship norms to satisfy the objectives and enhance the
experience of the parties concerned.
Mattsson, 1997 RM is the process of cooperating with customers to improve
marketing productivity through efficiency and effectiveness.
Gummesson, 1999a It is marketing based on interaction within networks of
relationships.
Parvatiyar & Sheth, It is a comprehensive strategy and process of acquiring,
2001 retaining, and partnering with selective customers to create
superior value for the company and the customer.
Hennig-Thurau et al., It is a meta-construct involving several key dimensions,
2002 reflecting the overall nature of relationships between companies
and consumers.
Payne & Frow, 2005 It is about enhanced opportunities to use data and information
to understand customers and co-create value with them. This
requires a cross-functional integration of processes, people,
operations, and marketing capabilities that is enabled through
information, technology, and applications.
Lambert, 2010 It is being viewed as strategic, process-oriented, cross-
functional, and value-creating for buyer and seller and as a
means of achieving superior financial performance.

As stated by Agariya and Singh (2011), many definitions have been proposed,
but the central theme of all is the relationship between the organization and its
stakeholders. But the authors also note that the concept of RM has been defined
by many researchers in different contexts and different industries. Gupta and
Sahu (2012), after examining the literature on the given subject, determined that
RM concentrates upon: (1) attracting, sustaining, and strengthening relationships
between companies and customers; (2) generating, communicating, and providing
value to customers; (3) expanding reciprocal economic value at lower expenses;
and (4) building and retaining effective relational exchanges.
After carrying out a review of the definitions of RM that preceded the
influence of digital transformation, we proceed to the identification and description
of the main constructs. To this end, we again used the existing bibliography and
selected four relevant studies, namely those of Harker (1999), Agariya and Singh
(2011), Gupta and Sahu (2012), and Jones et al. (2018).
Harker (1999) established a taxonomy with seven main conceptual categories,
each having a set of constructs. The following list contains the conceptual
categories and their constructs:
Relationship Marketing in the Age of Digital Marketing 139

• Creation: Attracting, establishing, getting.

• Development: Enhancing, strengthening, enhancing.
• Maintenance: Sustaining, stable, keeping.
• Interactive: Exchange, mutually, cooperative.
• Long-term: Lasting, permanent, retaining.
• Emotional content: Commitment, trust, promises.
• Output: Profitable, rewarding, efficiency
Agariya and Singh’s (2011) work was significantly more extensive, and in-
depth, and consequently produced better results, having redacted 50 constructs
that the authors considered relevant, which are shown in Table 2.

Table 2. MR constructs with the most citations, according to Agariya and Singh (2011)

1–10 11–20 21–30 31–40 41–50

Trust Role of customer Responsiveness Information Aesthetics
service personnel exchange
Satisfaction, Repurchase Conflict Benevolence Store layout
experience intentions, handling
reluctance to
search
Loyalty Key customer Level of job Collaboration Competitor
lifetime value satisfaction, orientation
identification dissatisfaction,
stress
Commitment Customer Brand Innovativeness Share of
retention purchases,
cross-buying
Service quality Customer Profitability Personalization Relationship
perceived value investment
Communication Knowledge Data mining Service recovery Price
management
Empathy, Security, privacy Bonds Tangibles Assurance
customer
orientation
Relationship Technology Ethical codes, Interdependence Cooperation
quality, value, profile
duration
Reciprocity Convenience, Word of mouth Availability Long-term
ease of use relationship
orientation
Culture Reliability Working Queuing system Shared
conditions values
140 The Digitalization of Business Sales

Gupta and Sahu (2012), on the other hand, identified 23 constructs, which
are presented in Table 3.

Table 3. MR constructs, according to Gupta and Sahu (2012)

Constructs
• Attractiveness • Conflict • Empathy • Relationship • Switching
of alternatives benefits costs
• Bonding • Cooperation • Goal • Relationship-
compatibility, specific • Trust
goal congruence investment
• Commitment • Coordination • Opportunistic • Satisfaction • Uncertainty
behavior
• Communication • Customization • Power • Service quality
• Competence • Dependence • Reciprocity • Shared values

Finally, it is also relevant to present the work of Jones et al. (2018)

who identified nine constructs: (1) Attachment; (2) Bond; (3) Closeness; (4)
Commitment; (5) Loyalty; (6) Relationship strength; (7) Relationship satisfaction;
(8) Relationship quality; (9) Trust.
From the studies presented, there is a set of constructs that show some
commonality, among which the following can be signaled: Trust, Commitment,
Satisfaction, and Loyalty. To know the evolution of these constructs, they are
described before the interference of digital technology.

4.1. Trust
Definitions of trust have commonalities, which may be due to a broad consensus
on the meaning of trust, or to the fact that they are operational definitions whose
purpose is the assessment of the presence of trust in a relationship (O’Malley
& Tynan, 1997). Also, Parkhe (1998) identified common aspects to some of the
definitions of trust, leading him to state that trust will be all the more necessary
the greater the uncertainty and potential for loss and the less control exercised by
a partner. The importance of trust in corporate relationships has been determined
and is indispensable (Lagrosen & Lagrosen, 2012).
Dwyer et al. (1987) define trust as the belief that a partner will fulfill
obligations reliably and responsibly, based on expectations derived from the
partner’s past behavior, reputation, and communication. According to this concept,
trust is shaped by past conduct, reputation, and communication. It also highlights
the significance of keeping promises and upholding expectations. Anderson and
Narus (1990) define trust as the willingness of one party to be vulnerable to the
actions of another party in the belief that the other party will perform a particular
action that is important to the trusting party, regardless of the trusting party’s
ability to monitor or control the other party’s actions. Anderson and Narus (1990)
Relationship Marketing in the Age of Digital Marketing 141

highlight the idea of vulnerability and imply that trust is founded on the conviction
that the other person will behave in a way that favors the trustor, even if the
latter cannot watch over or exert control over the latter’s behavior. In the book
Marketing Services: Competing Through Quality, Berry and Parasuraman (1991)
define trust as the customer’s belief that the service provider will deliver what has
been promised and that the provider can be relied upon to be truthful and fair. The
authors stated that trust is a critical factor in building and maintaining customer
relationships, especially true in the service sector, where intangible and complex
products make it difficult for customers to assess quality before purchasing. They
also support the statement that trust is built by providing consistent and reliable
service, communicating with transparency, and responding to customer needs
and concerns.
Trust is defined as the willingness to rely on an exchange partner in whom
one has confidence, according to Moorman et al. (1993). In other words, trust is
the belief that the relationship partner will act reliably, competently, and ethically.
The authors argue that because trust promotes cooperation and reduces uncertainty
in transactions, it is an important component of RM. Trust can be built through
a variety of means, such as consistent performance, open communication, and
the sharing of values and norms. In addition, Moorman et al. (1993) suggest that
trust can be influenced by factors such as reputation, familiarity, and structural
assurances (e.g., contracts and guarantees).
Another definition with great recognition is provided by Ganesan (1994). He
defines trust as a willingness to rely on an exchange partner in whom one has
confidence in his article “Determinants of Long-Term Orientation in Buyer-Seller
Relationships”, suggesting that trust is an essential element of RM because it
enables parties to engage in mutually beneficial long-term partnerships and also
arguing that trust is built over time through repeated interactions that demonstrate
reliability, honesty, and benevolence. The author furthermore notes that trust
can be influenced by factors such as communication, reputation, and the parties’
degree of interdependence.
But the historical and academically recognized definition is by Morgan and
Hunt (1994). The authors define trust as a willingness to rely on an exchange
partner in whom one has confidence. In their view, trust is a key component
of RM and is essential for building and maintaining long-term relationships
between buyers and sellers. They support the idea that trust can be built through
various mechanisms such as communication, commitment, and competence, and
that it is critical for mitigating the risks and uncertainties inherent in exchange
relationships. They also propose that trust is a multidimensional construct that
includes three components: (1) competence trust, which reflects the belief that a
partner has the skills and abilities to fulfill their obligations in a transaction; (2)
goodwill trust, which reflects the belief that a partner is motivated to act in the
best interests of the other party in a transaction; (3) integrity trust, which reflects
the belief that a partner adheres to a set of ethical and moral principles in their
dealings with others. Overall, Morgan and Hunt (1994) emphasize the importance
142 The Digitalization of Business Sales

of trust as a foundation for successful RM and suggest that it is essential for

creating value for both buyers and sellers.
Garbarino and Johnson (1999) define trust as a composite of the
perceived competence, integrity, and benevolence of a seller, underlining the
multidimensional view of trust, and suggest that customers consider various factors
such as competence, integrity, and benevolence when evaluating whether to trust a
seller. In their article, Jevons and Gabbott (2000) define trust as a willingness to be
vulnerable based on positive expectations about another party’s behavior. They note
that trust is a complex concept that involves cognitive, affective, and behavioral
components and that it is influenced by various factors such as communication,
perceived risk, and the nature of the exchange relationship. Jevons and Gabbott
(2000) argue that trust is critical to the success of online business relationships,
particularly in the context of e-commerce where customers often lack face-to-
face interactions with service providers. They suggest that building trust in online
relationships requires a multifaceted approach that includes developing a strong
brand identity, providing high-quality products and services, and maintaining open
and transparent communication with customers. Ratnasingam and Pavlou (2002)
complement the previous perspective by defining technology trust as the extent to
which a buyer trusts the seller’s technical competence to deliver electronic goods
and services. They point out that the success of B2B e-commerce, where buyers
frequently depend on sellers to supply complicated and customized products and
services electronically, is critically dependent on technical trust. Then same authors
argue that technology trust is built through various means such as reputation,
third-party certifications, and information disclosure and advise that sellers can
enhance technology trust by providing technical support, ensuring data security
and privacy, and demonstrating technical competence through the use of advanced
technologies and industry standards.
In a different context, Nykänen et al. (2009) define trust in network
management as the expectation that partners will act in a fair and benevolent
manner, based on past interactions and the partner’s reputation, claiming that
trust is a key factor that influences inter-organizational relationships and network
performance, and advocate that building trust requires a focus on social and
relational aspects of network management. The authors also indicate that trust and
commitment are interrelated and mutually reinforcing and that effective network
management requires attention to both dimensions.

4.2. Commitment
Commitment is defined as the level of emotional attachment and dedication to a
particular entity, such as a company or a brand. In RM, commitment is viewed
as a psychological state that reflects a customer’s intention to maintain a long-
term relationship with a company (Morgan & Hunt, 1994). According to the
authors, commitment is a multifaceted construct that includes three dimensions:
affective, continuance, and normative commitment. Affective commitment refers
Relationship Marketing in the Age of Digital Marketing 143

to a customer’s emotional attachment to a company or a brand. It arises from

positive experiences with the company and the belief that the company shares
the customer’s values and beliefs. Continuance commitment, on the other hand,
reflects a customer’s perceived costs of leaving the relationship with a company.
This type of commitment arises from the investment of time, money, and effort
in the relationship. Normative commitment refers to a customer’s sense of
obligation or duty to remain in a relationship with a company due to social or
moral norms.
Research has shown that commitment is positively associated with customer
loyalty and retention (Bansal & Taylor, 1999; Morgan & Hunt, 1994). Affective
commitment, in particular, has been found to be a strong predictor of customer
loyalty and retention. Customers who are emotionally attached to a company or
a brand are more likely to repurchase from the company and recommend it to
others (Bansal & Taylor, 1999). Continuance commitment also plays a significant
role in customer retention. Customers who have invested time, money, and effort
in a relationship with a company are less likely to switch to a competitor, as the
costs of leaving the relationship are high (Morgan & Hunt, 1994). Normative
commitment, although less influential than affective and continuance commitment,
still contributes to customer retention by creating a sense of obligation or duty
to remain in the relationship.
Several factors influence commitment in RM. One of the most critical factors
is trust. Trust is the belief that a company will act in the best interest of the
customer, even when it is not in the company’s best interest to do so. Trust is
built over time through consistent and reliable performance and communication
(Moorman et al., 1992). Another critical factor is communication. Effective
communication between a company and its customers enhances commitment
by creating a sense of connection and understanding between the two parties
(Gummesson, 1999b). Finally, customer satisfaction is a crucial factor in
building commitment. Customers who are satisfied with a company’s products,
services, and overall performance are more likely to remain committed to the
company (Oliver, 1999). Satisfaction arises from meeting or exceeding customer
expectations and delivering a high level of quality.
The definition of commitment is also reviewed by the following authors: (1)
The formal and informal exchange of information or the exchange of meaning
between the distributor and the manufacturer (Anderson & Narus, 1984); (2) An
implicit or explicit promise to continue the relationship between those involved
in exchanging (Dwyer et al., 1987); (3) An enduring willingness to maintain a
relationship that is valuable and worthwhile (Moorman et al., 1992). But, Brown
et al. (1995) counter by claiming that commitment comprises two components:
instrumental and normative commitment. In instrumental commitment, a channel
member accepts influence because of the hope of a favorable response from the
other firm whereas in normative commitment one has: identification, a channel
member accepts influence because he wants to maintain a satisfactory relationship
satisfactory, and internalization, a channel member accepts influence because the
144 The Digitalization of Business Sales

content of the induced behavior is intrinsically rewarding. Also relevant is the

definition of Selnes (1998), which defines it as the activities or communications
that lead to adjustments to meet specific customer needs. For Skarmeas et al.
(2002), commitment is the extent to which a company is dedicated to a close and
enduring relationship with another company and views continuity, behavioral,
and affective as its essential components.
Several authors have demonstrated the importance of commitment as a
predictor of the stability and success of a relationship and as a crucial factor in
long-term partnerships (Pressey & Mathews, 2000). This construct’s relevance
in relationship research is due to its conceptualization as an indicator of long-
term stability and its operationalization as an alternative measure of long-term
relationships (Farrelly & Quester, 2003). Abosag et al. (2006) conducted a study
on commitment in the context of business-to-business (B2B) relationships. The
authors sustain that the level of commitment in B2B relationships depends on the
extent to which the relationship is characterized by collaboration, communication,
trust, and satisfaction and their study found that the level of commitment between
buyers and suppliers is positively influenced by the quality of the communication
and the level of trust between the parties. The authors also found that satisfaction
with the relationship is a key driver of commitment in B2B relationships.

4.3. Satisfaction
Customer satisfaction is a critical component of RM as it determines the success
of customer retention and loyalty programs. According to Reichheld and Sasser
(1990), retaining a customer is five times cheaper than acquiring a new one, and
customer satisfaction is the key driver for customer retention. When customers
are satisfied with a business’s products or services, they are more likely to
remain loyal, make repeat purchases, and recommend the business to others.
Satisfied customers also tend to have a higher lifetime value, making them more
profitable to the business in the long run (Reichheld & Sasser, 1990). Crosby et
al. (1990) focus on the interpersonal aspects of relationship quality in service
selling. They view satisfaction as a key dimension of relationship quality and
define it as a customer’s overall evaluation of a service experience based on a
comparison of perceived expectations and actual outcomes. Since consumers’
impressions of the service experience are influenced by their expectations prior
to the experience, they underline the significance of managing client expectations
to ensure satisfaction. Müller (1991) has pointed out that customer satisfaction is
also an important factor in getting consumers to keep coming back.
Anderson et al. (1994) define satisfaction as the overall evaluation of the
experience and performance received in exchange for the expected utility or price
paid. They also view satisfaction as a multidimensional construct that reflects a
customer’s subjective evaluation of various aspects of the product or service,
including product quality, service quality, and price. Sheth and Parvatlyar (1995)
present a framework for RM in consumer markets that highlights the relevance
Relationship Marketing in the Age of Digital Marketing 145

of customer satisfaction as a key driver of relationship quality and they define

satisfaction as a customer’s overall evaluation of the product or service experience
that results from comparing the perceived benefits and costs of the experience.
According to the authors, satisfaction is a key antecedent of relationship quality,
along with trust and commitment. They claim that customer satisfaction leads to
higher levels of trust and commitment, which in turn strengthen the relationship
between the customer and the firm, also sustaining that relationship quality has
important consequences for companies, including increased customer loyalty,
lower customer acquisition costs, and higher profitability. Moreover, satisfied
customers also play a vital role in the success of a business’s word-of-mouth
marketing efforts. Satisfied customers are more likely to recommend a business to
others, leading to increased brand awareness and customer acquisition (Homburg
et al., 2017). Positive word-of-mouth recommendations are a powerful marketing
tool as customers are more likely to trust recommendations from people they know.
Bolton et al. (2000) studied the impact of loyalty program membership
and service experiences on customer retention and value. The authors define
satisfaction as a customer’s evaluation of the service experience based on a
comparison of expected and actual performance and they found that both loyalty
program membership and service experiences have a positive effect on customer
retention and value. Since satisfied customers are more likely to keep using the
service and recommend it to others, they contend that customer satisfaction
mediates this relationship. To keep customers satisfied and loyal, they also point
out how crucial it is to control client expectations and offer high-quality service.
Similarly, Verhoef et al. (2001) developed a dynamic model to analyze the impact
of satisfaction and payment equity on cross-buying behavior in a multi-service
provider context. They define satisfaction as the level of consumer happiness or
pleasure resulting from the consumption experience. They found that satisfaction
has a positive effect on cross-buying, as satisfied customers are more likely
to purchase additional services from the same provider. They also found that
payment equity (i.e., the perceived fairness of prices and fees) has a positive
effect on satisfaction and a direct effect on cross-buying. The authors advise that
companies can increase cross-buying by managing customer expectations and
providing high-quality services at fair prices, highlighting the need of monitoring
customer satisfaction and payment equity over time, as these factors may change
dynamically in response to the company’s actions and external factors.
It is also worth mentioning the work of Szymanski and Henard (2001),
who conducted a meta-analysis of empirical studies on customer satisfaction
to explore the relationship between satisfaction and various outcomes, such as
loyalty, retention, and profitability. According to their definition, satisfaction is
an emotional reaction to a product or service that is determined by contrasting
anticipated expectations with actual experiences. Szymanski and Henard (2001)
find a strong positive correlation between customer satisfaction and a range of
outcomes, including customer loyalty, repeat purchases, positive word-of-mouth,
and higher profits, also having identified several moderators of the satisfaction-
146 The Digitalization of Business Sales

outcomes relationship, such as industry type, product type, and customer

characteristics. In addition to customer retention and acquisition, customer
satisfaction also leads to increased customer loyalty. According to Hennig-Thurau
et al. (2004), customer satisfaction is a significant predictor of customer loyalty.
Satisfied customers are more likely to repurchase and remain loyal to a business
over time.
Although satisfaction is considered by many authors to be the most important
factor in defining strategy, Bennett and Rundle‐Thiele (2004) contend that it
should not be the only goal of a firm’s marketing strategy. The extent to which
expectations are fulfilled or exceeded during the customer experience is how
they measure satisfaction. Bennett and Rundle‐Thiele (2004) imply that focusing
exclusively on customer satisfaction can be limiting, as it may not capture other
important aspects of the customer experience, such as emotions, preferences,
and values, proposing a broader framework that includes multiple dimensions of
customer value, such as functional, social, emotional, and symbolic value. The
authors furthermore highlight the significance of contemplating the company’s
own goals and resources when designing a marketing strategy, and balancing
short-term and long-term objectives. Overall, they argue that a customer-
centric approach that goes beyond satisfaction can help companies to create
more sustainable competitive advantages and to build stronger relationships
with customers. One last point deserves to be highlighted. The authors showed
that dissatisfied customers can remain loyal. This is in line with the claims of
Mittal and Lassar (1998), who have reported that although dissatisfaction can be
the cause of customer loss, customer satisfaction is not a guarantee of
customer loyalty.
To achieve customer satisfaction in RM, businesses must focus on several
factors. These include product quality, customer service, and overall customer
experience. According to Gronroos (1994), customer satisfaction is a result of
the customer’s overall experience with the business. This includes the customer’s
interactions with the business’s employees, the quality of the products or services
offered, and the level of customer service provided. Moreover, businesses
must focus on creating emotional connections with their customers to achieve
satisfaction. Emotional connections result from the customer’s perception of the
business’s values and culture (Homburg et al., 2017) and this can be achieved
through the use of personalized marketing messages, special promotions, and
loyalty programs that make customers feel valued and appreciated.

4.4. Loyalty
A key component of RM is a customer’s will to continue to use a brand or
service provider. Several factors have been identified as antecedents of loyalty
in RM. One of the most critical factors is customer satisfaction, which has been
shown to have a significant positive effect on loyalty (Fornell et al., 1996).
Other antecedents of loyalty include trust (Morgan & Hunt, 1994), commitment
(Morgan & Hunt, 1994), perceived value (Sirdeshmukh et al., 2002), and
Relationship Marketing in the Age of Digital Marketing 147

customer involvement (Hennig-Thurau et al., 2002). Baldinger and Rubinson

(1996) define satisfaction as the customer’s overall evaluation of a company’s
performance concerning its products or services, stressing that satisfaction
is a multidimensional construct that is influenced by a variety of factors,
including product quality, service quality, price, convenience, and the overall
value provided by the company. They also showed that customer satisfaction
is a critical determinant of customer retention and loyalty, as well as positive
word-of-mouth and repeat purchase behavior. Loyalty has several outcomes that
are beneficial to companies. One of the most important outcomes is increased
customer retention (Reichheld & Teal, 1996), which is critical to the long-term
success of a firm. Other outcomes of loyalty include increased customer lifetime
value (Fornell et al., 1996), increased positive word-of-mouth (Gruen et al.,
2000), and reduced price sensitivity (Reichheld & Sasser, 1990).
Relationship quality has been identified as a key driver of loyalty in RM. It
refers to the degree to which customers perceive that their needs and expectations
are being met by a firm (Berry, 1995). High relationship quality has been shown
to increase loyalty (Ganesan, 1994), and it can be enhanced through several
techniques, including effective communication, responsiveness, and empathy
(Crosby et al., 1990). Another area related to loyalty is loyalty programs, which
are a popular tool used by companies to increase loyalty among customers. These
programs provide incentives for customers to continue to patronize a company,
such as discounts, free merchandise, and exclusive services. The effectiveness
of loyalty programs in promoting loyalty has been a subject of much debate in
the literature. While some studies have found that loyalty programs can increase
loyalty (Bolton et al., 2000), others have found that they have little impact (Dick
& Basu, 1994). One potential explanation for these inconsistent findings is that
the effectiveness of loyalty programs depends on their design, implementation,
and communication (Sharp & Sharp, 1997).
While loyalty is generally viewed as a positive outcome of RM, it can also
have negative consequences. For example, highly loyal customers may be more
resistant to change and less likely to try new products or services (Oliver, 1999).
Additionally, highly loyal customers may be more likely to engage in negative
word-of-mouth if they are dissatisfied with a company (Hennig‐Thurau &
Klee, 1997).
We can move on to more recent definitions, starting with Bolton et al. (2000),
which define satisfaction as a post-consumption evaluative judgment that reflects
the consumer’s appraisal of the quality of the product or service based on the
comparison of expected and perceived performance. The authors proved that
satisfaction is a critical determinant of customer loyalty and retention, as well
as positive word-of-mouth and repeat purchase behavior. Lemon et al. (2002)
defined satisfaction as the consumer’s affective response to the evaluation of
a consumption experience based on the perceived quality of the product and
service performance relative to the expectations that the consumer held for the
experience. They realized that satisfaction is a dynamic construct that can change
148 The Digitalization of Business Sales

over time based on ongoing interactions with the firm and the evolution of the
customer’s expectations.
A very renowned researcher, Verhoef (2003), defines satisfaction as a
customer’s overall assessment of the performance of a supplier’s products or
services about the customer’s expectations, and it reflects the emotional state
resulting from the comparison between expected and actual product or service
performance. He sustains that satisfaction is a central predictor of customer
retention and loyalty, as well as customer share growth, which refers to the extent
to which a customer increases their purchases from a particular supplier relative
to other suppliers over time. Another meaningful definition comes from Palmatier
et al. (2006), who define satisfaction as the extent to which a customer perceives
that a supplier has met or exceeded their expectations regarding the quality, value,
and overall performance of the supplier’s products and services. They support
the claim that customer satisfaction is a key determinant of customer loyalty
and retention in B2B relationships, and that companies can leverage customer
satisfaction by developing effective RM strategies aimed at enhancing the value
of customer interactions and building long-term trust and commitment. To make
RM investments that produce long-term, sustainable returns, the authors stress the
significance of assessing customer satisfaction and using this data as guidance.
The antecedents of loyalty include customer satisfaction, trust, commitment,
perceived value, and customer involvement, among others. The outcomes of
loyalty include increased customer retention, increased customer lifetime value,
and reduced price sensitivity. Relationship quality has been identified as a key
driver of loyalty, and loyalty programs are a popular tool used by firms to
increase loyalty.

5. RM in the Digital Age

The technological evolution, and in particular its digital dimension, has had a
transversal impact on society, and consequently, on RM. After having identified
the classic constructs of RM, we proceed to identify what has changed in RM.
Digital technologies have enabled marketers to collect much richer and
more detailed data about their customers, which has revolutionized the way
relational marketing is practiced. Social media has made it possible for marketers
to gather vast amounts of data about the preferences, interests, and behaviors
of their customers, which can be used to tailor marketing messages and offers
to individual customers (Kim & Lee, 2011). This has led to a shift from mass
marketing to personalized marketing, where marketing messages are tailored to
individual customers based on their unique characteristics. Digital technology has
had a significant impact on customer behavior because they now have access to
vast amounts of information about products and services through digital channels
such as social media and online reviews. There was also a shift in power from
businesses to customers, as they are now more informed and can make more
informed decisions. As a result, businesses must now focus on building trust
Relationship Marketing in the Age of Digital Marketing 149

and creating a positive reputation with customers to attract and retain them
(Laroche et al., 2012). Digital technology has also led to the emergence of new
communication channels in relational marketing. Social media, email marketing,
and mobile messaging are now widely used by businesses to communicate with
customers. These channels allow businesses to reach customers directly and in
real time, which can improve customer engagement and satisfaction. Furthermore,
these channels also allow businesses to personalize their communication efforts,
which has been shown to increase customer engagement and loyalty (Kim &
Ko, 2012). Digital technology has also led to the emergence of new marketing
strategies in relational marketing. Content marketing, social media marketing,
and influencer marketing are now widely used by businesses to attract and retain
customers (Bernoff & Li, 2008).
As stated by Thaichon et al. (2019), RM has been proven to create strong
customer relationships that increase customer satisfaction, loyalty, and company
profits. The authors reviewed and described the evolution of online RM, proposing
four phases: Phase 1 (Pre-1990: develop an online promotional strategy in line
with customer gratification and expectation to build a successful relationship);
Phase 2 (1990s: design online systems and networks to provide real-time
information and create a relationship through credibility); Phase 3 (2000s: create
a successful online relationship based on customer knowledge, social networks,
and e-WOM); and Phase 4 (2010s: moving forward with value co-creation and
building customer equity through retention and repeat purchase). The last phase,
which is the relevant one for this study, is underpinned by the theories of value
co-creation and customer equity. The key trends and disruptions identified by the
authors are co-creation, autonomy, innovation, lifetime value, customer loyalty,
and intellectual capital.
With the consolidation of digital technologies, the classic constructs – trust,
commitment, satisfaction, and loyalty – have been adapted to a new reality in
which online is progressively superimposed over face-to-face and traditional
technologies. Either way, the classic constructs remain relevant and important.
What we have seen is the emergence of new constructs and, simultaneously, the
appearance of so-called new constructs, but which are existing constructs with a
new name (the traditional reinventing of the wheel, characteristic in marketing).
Several constructs associated with consumer behavior have assumed
prominence, namely: customer engagement (Brodie et al., 2011; Hollebeek, 2011;
Hollebeek et al., 2023), customer experience (Verhoef et al., 2009), and customer
delight (Bartl et al., 2013). Still related to this subject, two more concepts emerged,
which are the customer journey (Voorhees et al., 2017) and customer touchpoints
(Hallikainen et al., 2019).
A significant percentage of interactions take place online as a result of
digital technologies. For this reason, a few constructs and concepts have been
studied, highlighting, among others, e-service quality (Chen et al., 2017; Collier
& Bienstock, 2016; Loiacono et al., 2002; Parasuraman et al., 2005), usability
and user experience (Marquez et al., 2015) and technology adoption models
(Venkatesh et al., 2003; Venkatesh et al., 2012).
150 The Digitalization of Business Sales

Let’s also highlight the following topics: online trust influence (Bart et al.,
2005); social media (Rehnen et al., 2017) and social media strategy (Wang &
Kim, 2017); loyalty (Anderson & Srinivasan, 2003; Chiu et al., 2018; Jain et al.,
2018; Rehnen et al., 2017); commitment (Chiu et al., 2018; Jain et al., 2018);
satisfaction (Anderson & Srinivasan, 2003).

6. Conclusion
Relationship marketing emerged at the beginning of the 1980s and has been
developing into a new concept of marketing. It was mainly a response to the
shortcomings and limitations of transactional marketing. Initially oriented
towards the B2B market, it progressively expanded into services and business-
to-consumer. It has given rise to relevant constructs that are now indispensable,
the most important of which are trust, commitment, satisfaction, and loyalty.
Others could still be mentioned, such as the quality of the relationship, customer
retention, and customer-centricity. The emergence and consolidation of digital
technologies, which have been and continue to be disruptive throughout society,
has meant that classic RM constructs have been adapted to new contexts and
have not become obsolete, but new constructs have simultaneously emerged.

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 Part 4
Business Leveraged on
Digital Marketing
 CHAPTER

Pre-Sales and Social Media Strategies’

Role in the Customer Journey

Maria Eduarda Pinto Leite1 [0000-0002-6282-5054], Amélia Brandão1

[0000-0003-2751-7272] and Jorge Remondes2* [0000-0002-5259-4379]
1
University of Porto, School of Economics and Management, Cef.up; Portugal
2
Accounting and Business School of the Polytechnic of Porto, Portugal

1. Introduction
The abrupt digital transformation forced by the Covid-19 pandemic has brought
significant changes in the purchasing process in Business-to-Buisness (B2B)
companies. Buyers still go through the stages of awareness, consideration, and
decision-making, already known by marketers, but how clients interact with
sellers has changed (Charm et al., 2020).
We witnessed a reduction in face-to-face meetings and events that were
essential to the decision-making process for B2B companies that relied heavily
on a close relationship with their clients (Charm et al., 2020).
According to a study by McKinsey (Bages-Amat et al., 2020), 70%-80%
of B2B decision-makers prefer remote human interactions. Sellers also believe
digital prospecting is as effective as in-person meetings to connect with existing
customers and warm leads. This shows marketers moved toward being forced
to adopt the digital transformation due to lockdown to firmly believing this is
the way to go.
Nowadays, clients have less time to waste, and the customer journey is much
more streamlined. Although buyers undergo the same decision stages, the growing
online research pushes brands to work harder on their pre-sales and social media
strategies to generate those leads. With these changes in mind, the key objective
of this study to be covered in this chapter is to determine how these pre-sales
and social media strategies influence customer journeys.

*Corresponding author: [email protected]

160 Business Leveraged on Digital Marketing

Although there’s much research into digital servitization, many focus on

manufacturing companies and fail to generalize conclusions. There is also
substantial literature on the sales process in B2B companies. However, few explore
pre-sales and social media as relevant strategies to the new conversion funnel.
In detail, this research aims to bridge the gap between marketing practices
and sales by studying how clients and sellers get acquainted and how these
formed relationships might be nurtured. This is a particularly relevant topic after
the impact of the Covid-19 pandemic on the way buyers and sellers interact.
This chapter focuses on addressing the concepts of B2B Digital Servitization,
Digital B2B Customer Journey, Pre-sales & Social Media, and Digital Brand
Management, which are related to the path the customer takes to make the
purchase decision.

2. B2B Leveraged on Digital Marketing

In the B2B business environment, there still needs to be more research on
digital relationships and the impact of digital marketing strategies on customer
attitudes and purchase intentions (Hien & Nhu, 2022). In a study carried out by
the authors above, it can be concluded that the relationship between customer
attitudes toward digital marketing significantly impacts customers’ purchase
intention. This is very important in terms of the brand-building process and
identifying the right digital marketing strategies in companies’ business plans.
This study also generalized the impact of digital marketing methods on B2B
businesses during the pandemic.
Bearing in mind that digital strategy is new for emerging markets and B2B
companies and that managers need guidance on the same, Vieira et al. (2019)
developed a study in a company hub, having concluded that there is a positive
association between own media and company results. Interactive and innovative
content published in proprietary media, mainly websites, can show how valuable
a company can be and what products and services it offers. As a result, content
posted in proprietary media can arouse the interest of potential customers and
initiate new sales (Vieira et al., 2019).
However, “there are barriers to the digitization of commercial marketing
processes, but entrepreneurs are adapting to the new technological reality and
looking for new digital channels that are more suitable for promoting certain
products among different types of consumers” (Olena et al., 2023, p. 46).
Recently, Marvasti et al. (2021) conducted a study that found evidence
suggesting online browsing behavior can estimate the stages of the B2B consumer
buying process. This information is beneficial for both businesses and consumers.
It should be noted that “artificial intelligence, blockchain, data security/
integrity, Internet of Things and big data analytics are just a few possible digital
trends that may shape how B2B relationships are understood and managed
(Hofacker et al., 2020, p. 4). In the following sections of the chapter, we
specifically delve into a substantial research domain in B2B marketing and discuss
Pre-Sales and Social Media Strategies’ Role in the Customer Journey 161

what role digitalization and digital marketing can play in servitization, representing
an emerging theme in B2B marketing research, such as relationship dynamics.

3. B2B Digital Servitization

The digital transformation has pushed digital businesses to develop and evolve.
Although we now see many companies going through the digitization process, it
is still important to appreciate the efforts of those that pioneered this movement
and that are now seeing the fruits of their labor and forward-thinking.
Let’s rewind history to understand how this all came to be. Traditional
manufacturers have sought to increase their business service offerings in recent
decades (Eloranta et al., 2021), transitioning from transactional, product-based
businesses to offering a more diverse value proposition. This allowed companies to
create more value, not only because they were harder to compete with (Andreassen
& Lindestad, 1998; Gebauer et al., 2021; Kohtamäki et al., 2019b), but also to
nurture a more relational interaction with the customers, which is an essential
part of B2B relationships.
This trend is called servitization (Baines et al., 2009; Vandermerwe & Rada,
1988). The increased academic interest in this topic (Fliess & Lexutt, 2017) has
emerged from exploring the future competitiveness of the servitization firms
(Lexutt, 2020) and the fact that we have witnessed exponential growth in the
market, expecting 33 billion euros by 2025, proving the increased profitability of
services sold compared to products (Probst et al., 2016). This relationship allows
for better customer loyalty (Kohtamäki et al., 2019a) and substantial constant
revenue (Kohtamäki et al., 2020).
Digital servitization is defined by the convergence of servitization and
digitalization (Gebauer et al., 2020a). Digital Servitization has been described
as creating new services depending on digital technologies, enabling new digital
business models that propose a different value proposition in alliance with the
tools and data available in this new digital era (Paschou et al., 2020).
Some great examples of well-established companies following digital
servitization are the “Frightful Five” (Manjoo, 2017): Google, Apple, Facebook,
Amazon, and Microsoft. These businesses represent the influence of this
transformation from product-centric to service-based value. The high impact of
the Internet, social media, and other digital technologies have benefited the rapid
growth of these companies and the enormous revenue they generate (Gebauer
et al., 2021).
Many companies now understand the value of investing in technology to take
their business to a new level. Having the digital space as your solid ground for
the company has its advantages, but it also suffers from some tough challenges,
being such a fragile and ever-changing environment. Management should be
well prepared and adapt quickly, taking advantage of the external socioeconomic
factors to survive its different stages of growth.
162 Business Leveraged on Digital Marketing

Many service-based companies operate in a B2B context. Exploring the

potential of the value co-creation enabled by this B2B network is essential
to compete in such a crowded market. Value Co-creation is the fourth most
researched topic in studies related to digital marketing (Pandey et al., 2020).
Traditionally, value creation is seen as a one-way stream where suppliers create
value for their B2B customers, who examine these offerings (Ulaga, 2003).
However, this service-dominant logic has reevaluated this perspective (Vargo &
Lusch, 2008, 2010). The value now resides in the relationship between the two
parts (Lusch & Vargo, 2014). This close B2B relationship helps further create
value through service propositions. Andersson and Axelsson (2018) highlighted
that B2B markets act as “networks” of actors, activities, and resources. This
collaboration allows for value co-creation (Vargo & Lusch, 2010).

4. Digital B2B Customer Journey

This research focuses on bridging the gap between marketing practices and
sales. To understand the two sides of this coin and their relationship, it is crucial
to analyze their similarities and differences and how these might connect. To
increase sales and attract customers, the management team has to get acquainted
with how clients interact with the company and how B2B relationships are
supposed to be nurtured.
Being a fast-paced industry, the company must constantly adapt to different
circumstances and learn the best ways to reach potential clients. The B2C 1
dominance in the market has set the tone of how academics view customer
journeys and conversion. However, it is now understood that B2B and B2C
settings follow entirely different strategies. A lack of research on the topic pushes
B2B companies to be creative in problem-solving and pursue a hands-on attitude
to find new ways of approaching clients.
The customer acquisition process in the B2B context is very complex and
obeys an interactive relationship. Usually, purchasing decisions are taken by the
Decision-Making Unit (DMU) and imply cost considerations (Cunningham et
al., 2017).
Following the approach of Järvinen and Taiminen (2016), the sales funnel
(Figure 1) is divided into four different stages:
1. In the first stage, a list of suspects is created, where potential customers are
outlined.
2. The second stage works on reducing the previous list to identify prospects.
Usually, this list has more information regarding specific people that might
be relevant to the sale or contacts given by a marketing department.

1 B2C: Abbreviation for business-to-consumer.

Pre-Sales and Social Media Strategies’ Role in the Customer Journey 163

3. The third stage consists in qualifying these prospects into leads2. This can
be accomplished by profiling, testing, and performance and profitability
analysis.
4. The final step is converting the lead into an actual customer (D’Haen & Van
den Poel, 2013; Järvinen & Taiminen, 2016).

Figure 1. Sales funnel (adapted from Järvinen & Taiminen, 2016).

The sales funnel represented in Figure 1 is a visual tool to guide managers to

understand in which stage the customer is. Some authors argue that this operation
is more linear than it appears and that customer behavior is much more complex
and dynamic (Lingqvist et al., 2015).
As stated by Pöyry et al. (2019), a communicative approach and a persuasive
influence are vital to keeping users engaged. Content Marketing can also help with
moving the product/service to the “top of mind” of the customer and influence the
prospect’s final purchase decision (Gagnon, 2014). These sales influence tactics
(SITs) effectively communicate with the clients along the sales funnel, especially
when complementary strategies (rational-emotional and emotional-rational
combinations) are applied (Pöyry et al., 2019). It also defines the procedure after
the lead enters the first stage of the funnel, declaring that the system is first email
and then a telephone sales call.
Sales operations and activities require more effort than a decade ago due to
higher customer expectations and buying power (Cuevas, 2018). Pandey (2015)
states that changing buyer behavior, rising customer expectations, and infusing
innovative technologies have driven change in the B2B selling context. Managing

2 Customer Lead Generation: The process of collecting names of possible future

customers. [Cambridge Dictionary]
164 Business Leveraged on Digital Marketing

the customer journey in the digital age has gained importance (Edelmann & Singer,
2015), with capabilities like automation, personalization, contextual interaction,
and journey innovation being critical components in this management process.
The Purchase Funnel, authored by Elias St. Elmo Lewis in 1898 (Strong,
1925), is a consumer-centered model that illustrates the theoretical customer
journey toward purchase. From the first stages, when an individual learns about
your business, to the conversion phase, this marketing funnel maps the route
to the final purchase. This framework, often called the AIDA model, stands for
Awareness, Interest, Desire, and Action. The association of the funnel model
with the AIDA concept was first proposed in Bond Salesmanship, written by
William W. Townsend in 1924. This is a helpful tool in guiding the managing
team to understand where the company must invest to drive sales and generate
more vital brand awareness.
In e-commerce, the Conversion Funnel is a close instrument to evaluate a
consumer’s online journey navigating through digital channels. This includes
searching for a website, seeing a piece of advertising, and finally purchasing.
The funnel describes the progressive reduction in the number of users at each
process stage. These marketing efforts can be aimed at: (1) the top of the funnel
where awareness is captured, (2) the middle funnel, when a prospect expresses
interest in service and considers purchasing by seeking more information from the
brand, or (3) bottom of the funnel, the point at which the prospective customer
makes a decision and completes the process by becoming an active customer,
depending on which stage of the conversion process the consumers are in (“The
eCommerce Conversion Funnel Explained | Qualtrics,” 2020).

5. Pre-sales and Social Media Strategies

The digitalization affecting servitization has also impacted how buyers and
sellers interact, becoming increasingly critical for sales and marketing practices
(Rapp et al., 2014; Rust & Huang, 2014). New means and tools are changing
the B2B sales management process (Guenzi & Habel, 2020; Singh et al., 2019;
Syam & Sharma, 2018). This shift has emerged with the increased information
accessibility available to customers, especially in the early stages of the
purchasing process (Ostrom et al., 2015). This is essential to conversion since
B2B buyers make about 60% of their purchase decision before reaching out to
companies (Adamson et al., 2012). According to a prediction from Gartner’s
publication (Blum, 2020), up to 80% of B2B sales interactions between buyers
and sellers will be carried out through digital channels by 2025. This may
challenge companies facing difficulties with digital transformation, despite
acknowledging their relevance (Guenzi & Habel, 2020).
This is where pre-sales strategies show extreme relevancy. Unlike marketing
and sales operations, pre-sales yields a particular set of activities that lead to
qualifying and ultimately renewing a deal. According to an article from Harvard
Pre-Sales and Social Media Strategies’ Role in the Customer Journey 165

Business Review (“To Improve Sales, Pay More Attention to Presales,” 2015),
companies with solid pre-sales capabilities consistently achieve win rates of 40
to 50% in new business and 80 to 90% in renewal business, which is well above
average rates.
This has more impact on revenue generation than capturing leads because it
focuses on shaping conversations with the client to position the company at the
top of mind3. This involves deeply understanding the client’s needs and offering
solutions that can address them.
These pre-sales strategies can account for 30 to 50% of overall commercial
headcount, improve conversion rates, raise revenue by 6 to 13%, and a 10 to
20% improvement in the speed of moving prospects through the sales process
(“To Improve Sales, Pay More Attention to Presales”, 2015).
It is crucial that leads turn into clients by engaging people to interact with
the company. Content Marketing4 and the public image that the company has,
play a massive role in the process of lead generation (Gagnon, 2014). Content
Marketing can be a powerful formula to push customers from the beginning to
the final purchase stage (Gagnon, 2014).
The increased access to information made available by the Internet helps
customers make more informed decisions (Pandey et al., 2020). With this digital
relevancy in the flow of the relationships between buyers and sellers, social
media marketing and digital content have been more and more present in the
brands’ channels, and educational content has been increasingly used to share
information on the value proposition to potential customers (Holliman & Rowley,
2014; Järvinen & Taiminen, 2016). The online space’s attention now forces B2B
companies to maintain a credible and relevant online presence through websites,
blog posts, and social media platforms (Pandey & Shinde, 2019). This is also an
excellent way to manage customer relationships (Pandey et al., 2020).
Although B2B companies have gradually adopted digital marketing strategies
and the success stories that have been studied contribute to the change of
perspective (Venkatesh et al., 2019), it was believed until very recently that these
strategies could only work in the business-to-consumer (B2C) context (Lacka &
Chong, 2016). This proves that the research on this topic is still in its early stages
(Pandey et al., 2020). Digital marketing can help create trust among customers
by making information increasingly more available (Krishna & Singh, 2018;
Pandey, 2015). This implies constant research on new strategies since this field
is fast-paced and constantly evolving (Shaltoni, 2017).

3 Top of Mind: Defined as being the first brand that comes to mind when a customer is
asked an unprompted question about a category. [Marketing Dictionary]
4 Content Marketing: A type of marketing that involves the creation and sharing of

online material (such as videos, blogs, and social media posts) that does not explicitly
promote a brand but is intended to stimulate interest in its products or services.
[Oxford Dictionary]
166 Business Leveraged on Digital Marketing

Social media can be a great way to facilitate communication between

salespeople and clients and can also be a tool to improve customer satisfaction
(Agnihotri et al., 2016; Lamberton & Stephen, 2016; Simula & Karjaluoto, 2015).
Social media marketing is a good investment for customer engagement in the
B2B context to reach out to customers, project managers, and experts for value
co-creation and network building (Alamäki & Korpela, 2021).
This shift in the marketing communication paradigm is changing the role
of marketing as we know it. According to Kotler et al. (2017, p. 411), content
marketing individuals “create, inspire and share brand messages and conversations
with and among customers across a fluid mix of paid, owned, earned and shared
communication channels”. Holliman and Rowley (2014) defined B2B content
marketing with a significant focus on sharing value through content to engage
and encourage customers to buy. Some techniques that can help create demand
among prospective leads are content marketing, blogs, social media marketing,
and podcasts - inbound marketing techniques (Bleoju et al., 2016).
Social media is a very dynamic channel of communication since it is
continuously evolving due to fast-paced technological shifts and fluctuating user
behavior (Kane et al., 2014). It can also be a tremendous competitive advantage
in the B2B setting (Bolat et al., 2016).
B2B companies are now reaching out to the digital space and applying these
marketing strategies to boost customer acquisition (Pandey et al., 2020). These
digital marketing practices are set apart because they can target potential leads
precisely (Pandey & Gudipudi, 2019). Linkedin is one of the most common social
platforms to connect to other executives. Here it is possible to be more productive
in sales endeavors, track engagement and conversion, and create content that best
suits your viewer’s preferences (Pandey et al., 2020).
The use of social media in the B2B context should be approached as an
interactive process where monitorization, maintenance, evaluation, and the
development of strategies should be thought out flexibly to better adapt in
decision-making. Operational capabilities are also required to analyze the content
of posts, frequency, and where and how to post on these platforms (Pandey et
al., 2020). It is crucial to align its goals with corporate vision and focus on
community-building (Wang et al., 2017).
There is still a need to identify and fully leverage effective social media
platforms in the B2B sector and adapt marketing strategies for the B2B context,
developing the right key performance indicators (KPIs) for social media usage
(Pandey et al., 2020). However, it can be challenging to implement these social
media strategies in organizational functionalities. For example, in the United States
and European technology industry, 55% of decision-makers engage in Social
Media for non-business purposes, while only 29% use it for business purposes
(Ngai et al., 2015; Smith & Anderson, 2018).
With this new school of thought in mind, we accept that marketing is changing
and that a brand should follow this transition into a more up-to-date one. The
new strategy should incorporate these pre-sales and social media tactics to drive
Pre-Sales and Social Media Strategies’ Role in the Customer Journey 167

more sales. With the insights that these provide us, the company should plan its
investments and define its priorities.

6. Digital Brand Management

By defining what the new brand must look, feel and speak, the management team
sets how it wants to be perceived and treated, being a well-established brand
that can create a sustainable competitive advantage in a company (Guenther
& Guenther, 2019). Being one of the most critical strategic features, branding
improves a company’s reputation. It can help generate revenue through sales and
communicate the benefits of services and products to buyers, reducing associated
purchasing risk (Keller, 2013).
Branding in the B2B context has only recently gained research interest
(Kumar et al., 2015; Yieh et al., 2018; Zhang et al., 2015). The vast network of
stakeholders with complex demands and expectations has raised the complexity
of B2B branding compared to the B2C context.
The branding models were first developed by Aaker (1991) and Keller
(1993), pondering over components of brand equity, such as brand awareness,
brand loyalty, perceived value, brand associations (Aaker, 1993), and customer-
based brand equity, which is generated by the customer’s knowledge of a brand
(Keller, 2001).
Looking into brand loyalty as part of brand equity, the eWOW (electronic
word of mouth) has taken up more space regarding brand engagement. It becomes
essential to what people comment about the brand and how it reacts to people’s
perceptions. The more information shared, the more power the customer has (Canli
et al., 2016). Having a digital presence in today’s market has to be a guarantee.
However, although not an added-value component, its absence may significantly
reduce brand equity (Mathews, 2015).
The new digital era brought challenges to the brands that raised brand
management issues regarding accessibility and availability of information to
guide customers in their purchasing decision. It is crucial to plan these points
of contact between buyers and sellers. It is now essential to evaluate the brand’s
digital presence to deliver results to generate a positive brand reputation (Hohenhal
et al., 2014).
Having a brand involves managing an orchestra of people where harmony
and balance are the keys to success. It is when all the different departments
align that the company can thrive. A structured brand architecture allows you to
identify brand positioning, rebranding, and brand extension opportunities (Keller
& Swaminathan, 2019). These strategic changes that will enable growth should
preserve the brand’s core associations (Beverland, 2005; Perra et al., 2017; Spiggle
et al., 2012; Urde, 2009).
Aaker and Joachimsthaler (2000) defined brand architecture as an “organizing
structure of the brand portfolio that specifies brand roles and the nature of
relationships between brands”. This can relate to the company’s history (ownership
168 Business Leveraged on Digital Marketing

of brands, traditions, or growth strategy); the company structure; the company

philosophy (historical associations, held values and beliefs, company pride or
policies); the company’s strategic decisions (mergers and acquisitions), market
leadership, corporate reputation, product quality or customer loyalty; the market
structure and segmentation; the company’s product range; and the products and
services life cycles (Rodrigues & Brandão, 2020).
Brand architecture can help with avoiding internal competition and achieving
synergies (Datzira-Masip & Poluzzi, 2014); leveraging brands across markets
and segments (Åsberg, 2018); and achieving more robust competitive advantages
(Chailan, 2008).
Brand architecture acts as a tool to communicate the relationship between
brands to the customer (Åsberg, 2018). Essentially it serves two roles: clarifies
similarities and differences between brands – improves brand awareness -and
impacts brand image by maximizing the transfer of equity to and from the brand
to individual products and services (Keller, 2015).
Some factors have pushed managers to recognize the need to integrate
business and strategy, such as the constant pressure on brands to deliver
shareholder value; the increased number of brand mergers and acquisitions
(Strebinger, 2004); the aggressive market extensions and complex sub-brand
structures within companies’ portfolios (Laforet & Saunders, 2005); the vast
market fragmentation; and the increasingly opinionated, connected and diverse
customers demanding clarity and simplicity in their buying decisions (Abraham
& Taylor, 2011). As Teece (2010) states: “Whenever a business enterprise is
established, it either explicitly or implicitly employs a particular business model
that describes the design or architecture of the value creation, delivery, and capture
mechanisms it employs.” Business model architecture refers to a firm’s business
model portfolio, the components within a business model – market segments that
should be targeted, the value of the products/services to the customer, the value
captured by the company, channels, customer relationships, essential resources,
key activities and partnerships (Aspara et al., 2011; Danneels, 2002; Johnson
et al., 2008; Osterwalder & Pigneur, 2010; Ritter & Lettl, 2018; Shafer et al.,
2005; Teece, 2010; Wirtz et al., 2016) - and their interrelationship (Beckett &
Dalrymple, 2019; Sachsenhofer, 2016).
With the understanding of how other companies have been behaving and
the best practices that have driven results, companies must gather all of this
information to plan moving forward.

7. Conclusion
This chapter aimed to understand the influence of pre-sales and social media
strategies on the customer journey in B2B markets. Implementing these tactics
impacts the repositioning of brands, communicating updated information, and
generating awareness for their new values, structure, and value proposition
through their websites, being published, paid media campaigns, and commercial
Pre-Sales and Social Media Strategies’ Role in the Customer Journey 169

actions. All these strategies should follow customer analysis, which is crucial for
defining the target audience and studying market trends.
The literature confirms that perceived brand value and customer-based equity
are difficult to measure in the short term. This is a more relevant topic than ever.
The literature also indicates that the way forward for companies should be to focus
on strengthening digital channels to generate opportunities by guiding customers
to make purchase decisions.
The Covid-19 pandemic had a significant impact on how buyers and sellers
interact. This increased dependency on digital channels to push new information
and pull buyers onto your brand. This means more B2B companies compete in
the digital space, where information floods abundance (Charm et al., 2020).
This new paradigm raises the question of how B2B companies can now, with
more means available, interact with the client and nurture relationships (Guenzi
& Habel, 2020; Singh et al., 2019; Syam & Sharma, 2018).
Some authors (Lingqvist et al., 2015) consider that the current sales funnel
model (Järvinen & Taiminen, 2016), already well known by marketeers, might
not be prepared to deal with the complexity and dynamism of the new B2B
customer behavior. They also argue that the B2B operation is not as linear as the
model implies. The context studied indicates that there should now be a higher
weighting in the first stages of the AIDA model. According to Adamson et al.
(2012), 60% of purchasing decision occurs before ever contacting the company,
and Gartner’s studies indicate that 80% of interactions will happen through digital
channels by 2025 (Blum, 2020).
Although it was found that Järvinen and Taiminen’s Sales Funnel (2016)
should be considered as part of the definition of strategy, experience proves
that this process is, in fact, not linear, being hard to position the customer in
each stage and becoming challenging to set a strategy in only one stage of the
purchasing process, since multiple strategies might impact more than one stage
of the AIDA Model. The website can be a tactic for Awareness when potential
clients first discover the brand, but it can also be used to clarify information
when closing a deal, for example. Social Media presents itself as a way to reach
potential clients through paid ads and to nurture relationships with existing clients
through its organic content.
Changes in strategy often come after companies identify when they’re facing
challenges with existing operating models (Keller & Swaminathan, 2019). Good
brand management helps find opportunities for brand positioning, rebranding, and
brand extension within your company, contributing to more excellent navigation
through the B2B network. This brings more consciousness over the benefits and
drawbacks of the current operation, helping avoid internal competition and achieve
synergies (Datzira-Masip & Poluzzi, 2014). Studying the external context is
essential to get to know market trends, being up to date on how other companies
manage their brands, and learning from others’ experiences. This more profound
understanding of the competitors forces managers to realize when to change their
strategies and evaluate the need to rethink their customer journey touchpoints.
170 Business Leveraged on Digital Marketing

Other B2B companies that may find themselves taking on a brand

repositioning should consider implementing these pre-sales and social media
tactics to generate more Awareness and Desire, but most importantly, investing
in deeply analyzing their customers’ needs and behaviors.
After the impact of the Covid-19 pandemic, companies now have more
stability to invest in studying the new needs and expectations of the consumer
and analyze short and long-term implications. This is the right time to rethink
strategy and venture into new projects.

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 CHAPTER

The Age of Digital Services Marketing

Sebastiano Mereu*
Sports Business Research Academy

1. Services as an Economic and Experiential

Offering in the Digital Age
As economies increase their per capita income, the main economic offering
generally shifts from a goods economy to a services economy (Kim, 2006; Pine
& Gilmore, 2020). The shift brings considerable structural change, as goods and
services are fundamentally different offerings. Historically, goods are objects of
value that can be owned by way of purchase (Wirtz & Lovelock, 2022). Services,
on the other hand, “are economic activities that create value and provide benefits
for customers at specific times and places, as a result of bringing about a desired
change in—or on behalf of—the recipient of the service” (Lovelock et al., 2017,
p. 1/4). In today’s globalized and connected world, services provide a direct or
indirect intrinsic experience around their offerings, which can strengthen brand
loyalty, due to the omnipresence of ICT, the influence of lifestyle brands, and
the integration of entertainment with marketing (Brakus et al., 2009; Schmitt,
1999). However, a digital transformation entails more than just adding digital
marketing and communications channels to an offering; a company is expected
to embrace and integrate a digital mindset into its culture and organization
(Ryan, 2021). As proposed by Kotler et al. (2021), the goal of marketing should
be “to demonstrate to the customers that the correct applications of technology
may improve human happiness” (p. 66). This can be applied to services as main
products, as well as to services as product extensions.
In the early 2010s, Kotler and Keller (2012) defined marketing as a business
activity that helps “introduce and gain acceptance of new products that ease or
enrich people’s lives” (p. 4). Yet, their definition did not emphasize the importance

*Corresponding author: [email protected]

The Age of Digital Services Marketing 177

of technology in marketing, an element that became crucial for numerous business

activities by 2020 with the spreading of the coronavirus pandemic. Governments
worldwide restricted human contact to contain the spreading of the virus by
ordering the lock-down of a variety of businesses and other organizations for
longer periods of time and, consequently, limiting most commercial, institutional,
and social activities to online channels (Financial Times, 2022). This led to
a surge in the utilization and consumption of online services (IMF, 2022). It
further led to the realization that technology is a crucial element in modern-day
life, and, because of that, also in contemporary marketing (Rust, 2020). With
the technology aspect in mind, Kotler et al. (2021) introduced a new level to
marketing defining it as “the application of human-mimicking technologies to
create, communicate, deliver, and enhance value across the customer journey” (p.
6). This implies applying a variety of technologies to enable effective marketing
efforts in a digitally enhanced world.
Based upon the above-mentioned definitions and arguments, services
marketing in the digital age can be defined as the creation, communication,
delivery, and enhancement of intangible and value-adding services offered through
a variety of communicative avenues that connect the physical and virtual world
along the customer journey via contemporary technologies. Henceforth, this
defines the term digital services marketing. To achieve the above-mentioned goal
of digital services marketing, strategies and tactics need to be developed along
a set of marketing components, also known as the marketing mix (Kotler et al.,
2021). McCarthy (1960) defined the original 4 Ps of marketing by including the
four components price, product, promotion, and place. The mix was later updated
and expanded in various marketing literature, which, however, vary to different
degrees in their perspective and terminology. A prominent update resulted in
the inception of the 7 Ps of the services marketing mix, which first added the
components people, physical evidence, and process management, and was later
expanded to the 8 Ps with the addition of productivity and quality (Lovelock
et al., 2017). The following sections define the eight components and discuss
applications in the context of digital services marketing.

2. The Digital Services Marketing Mix

2.1. Product
Mullins et al. (2018) define the product as “anything that satisfies a want or need
through use, consumption, or acquisition” (p. 341) and add that products can
be objects (e.g., cars, phones, clothes), services (e.g., education, consultation,
dry-cleaning), places (e.g., London, Disneyland), people (e.g., politicians,
celebrities), and ideas (e.g., #metoo, #blacklivesmatter). Throughout the wider
creation process of a product, an essential task for marketing managers is to
“select the features of both the core product (either a good or service) and the
bundle of supplementary service elements surrounding it, with reference to
178 Business Leveraged on Digital Marketing

the benefits desired by customers and how well competing products perform”
(Lovelock et al., 2017, p. 1/20). Kotler and Keller (2012) add that a great
product is at the heart of a great brand and “to achieve market leadership, firms
must offer products and services of superior quality that provide unsurpassed
customer value” (p. 325). These definitions reflect the perspective of traditional
companies that create value for their end consumers through their products
without including them in their ecosystem, whereas products that are based upon
a digital media platform are generally built to co-create the user experience with
their customers (Hein et al., 2020). This applies, for example, to social media
platforms that use third-party content as their main media product (Kietzmann
et al., 2011). It also applies to smartphones that merely offer the hardware onto
which users install their preferred apps and, hence, create a digital media services
device customized to their needs and wants; and, it applies to online streaming
platforms that are fed viewing behavior data from their users to inform the
suggestion algorithm (Balbi & Magaudda, 2018).
To create and promote a product that consumers want to purchase and use,
Kotler and Keller (2012) suggest five product levels organized hierarchically
according to benefits and customer value. The first level refers to the core
benefit(s). These are fundamental benefits customers buy into, such as easy and
instant access to entertainment in the case of a streaming service like Netflix (cf.
Rubin, 1983), virtual reality (VR) from the comfort of one’s home as in the case
of the Oculus Quest VR headset (cf. Lee et al., 2021), or a personalized digital
media hub in the palm of one’s hand through a smartphone (cf. Balbi & Magaudda,
2018). The next level is the basic product. Based upon defined core benefits, a
company designs its product. As an example, for a streaming platform to offer
uses and gratifications to its viewers through video entertainment, appropriate
entertainment media products need to be provided through the platform. Or, if a
virtual tour through an art museum is to be offered, that virtual experience needs
to be conceptualized, designed, programmed, and launched by skilled specialists.
With this in mind, managers tackle the next level, the expected product. Customers
expect certain conditions and attributes from a product. Hence, a company should
deliver the product it promotes, which is also the product consumers expect to
receive. This is what constitutes the customer-centric marketing approach that
was prevalent in the second half of the twentieth century (Kotler et al., 2021).
Especially, in a world where products can be compared instantaneously, and
abundant alternatives are found with a simple online search, providing the
expected product is not simply nice to have, but constitutes a necessity to ensure
customer loyalty.
This leads to the next product level, the augmented product. Customer
expectations can be exceeded by augmenting products through the delivery
of functional and affective value that goes beyond core and expected products
(Kim et al., 2019). This is a crucial notion to stand a chance with the fierce
competition in the digital environment. Simple augmentation could consist of
creating a website or mobile app with features and visual elements that are more
The Age of Digital Services Marketing 179

aesthetically pleasing and appealing than a competitor’s digital offering (cf.

Ryan, 2021). To elicit emotions, the product provider should satisfy consumers’
needs and wants by offering an experience they want to absorb (Pine & Gilmore,
2020). This could entail adding free services that enhance the experience, such
as a possible VR offering to an online shop, behind-the-scenes content to a new
show, or a limited edition non-fungible token1 (NFT) with functional utility. After
having considered viable product augmentations and transformations, a company
needs to reflect upon how to satisfy consumers’ needs and wants in new ways to
differentiate itself from competitors, which introduces the last level, the potential
product. As consumers become accustomed to augmented products and features,
these augmentations become expected, and they fall into the hierarchy. Hence,
companies need to think about future products or product features to augment
their offerings. With continuous innovation in immersive online technologies,
companies can choose from a growing array of digital tools to enhance their
offerings, especially with mixed reality, the metaverse, or digital tokens (Kotler
et al., 2021; Lee et al., 2021).

2.2. Price
Price refers to the amount of money customers are requested to pay to receive
anticipated benefits (Kotler & Keller, 2012). It is used as an indicator of product
quality and benefits, where higher-priced products can be perceived to provide
higher quality, as compared to lower-priced offers, and may be less susceptible
to offers of rival brands (Yoo et al., 2000). Expectations regarding the perceived
quality of a product are to be managed by defining the most appropriate price
while reflecting the product’s quality and the way it is marketed and distributed
to consumers (Wirtz & Lovelock, 2022). Lovelock et al. (2017) note that
other costs of service, such as time, mental and physical efforts, as well as
unpleasant sensory experiences, can be perceived as indirect costs which may
lower the perceived quality of the consumer experience. In the digital age, a
brand or product with a wide reach across various digital channels can price its
services higher, such as promoting a product to its fans or subscribers; this is
especially visible with lifestyle brands and services provided by influencers (The
Economist, 2022).
Prices can be set based on three perspectives: The customer-based perspective
reflects on “what the market will bear”; the competitor-based perspective considers
“what competitors charge”; and the cost-based perspective asks “what profit
margin should a company aim for” (Cram, 2008). The potential price range
starts at the floor price, which is defined by the costs incurred by the company
to produce the product; the range then ends at the ceiling price, which is defined
by the customer’s ability to buy the product. The perception of how appropriate
1
A non-fungible token (NFT) is “a blockchain-based digital record representing a non-
interchangeable digital or physical asset” that “has a unique identity with distinct
qualities” (Li & Chen, 2022, p. 4).
180 Business Leveraged on Digital Marketing

the price for the offered product or service is based on the impact that brand
marketing has on consumers; this includes how well the brand can depict and
communicate the value consumers would receive from the purchase of the product
and to which degree the brand and its products are considered to be superior to
its competitors (Lovelock et al., 2017).
Although some consumers may be highly devoted and price-insensitive
when it comes to lifestyle brands they love (Rahman et al., 2021), there will
be a threshold they will not be willing to cross regarding spending money on a
specific product. If an offering becomes too expensive to bear, certain consumer
segments will not be willing or able to afford it (Cram, 2008). Rethinking the
desired (or necessary) profit margins that need to be made on top of a product’s
floor pricing, helps to define a more appropriate price. Comparing the prices of
competitors with one’s own price can provide a better understanding of what the
market can bear (Lovelock et al., 2017). This is especially important in a world
with ubiquitous information access, as consumers can compare prices with a
simple online search and choose the cheapest or most convenient supplier (Ryan,
2021). If a company envisions higher profit margins and therefore higher prices,
then the additional value that can be expected from consuming the product should
be communicated (Yoo et al., 2000). For example, if a cloud-storage service is
priced higher than its competitors, detailed information on the characteristics
that legitimize the higher price can be delivered across various communication
channels (see Batra & Keller, 2016). This could include explaining, for example,
that the service uses more secure technology, or that its servers are located in a
country that upholds the highest possible consumer privacy ethics.
In the context of the digital economy, consideration needs to be given to
the fact that prices for digital products have generally decreased, because of
better business efficiency employed through digital inputs and lower prices for
main production and operations activities; examples can be found in digital
products categories such as website design, telecommunications services, or
consumer electronics (Balbi & Magaudda, 2018). However, with the transition to
a blockchain-based Internet and a wider acceptance of digital tokens, especially
NFTs, the above-mentioned pricing dynamics need to be reassessed. For instance,
NFTs are utilized to protect sensitive information and preserve their utility
through a unique identification token, which provides greater consumer value
to their owners via a specific functionality, e.g., access to an online or offline
service, intrinsic value of digital item because of its scarcity, or digital wearables
for a user’s avatar, to name a few (Kaczynski & Kominers, 2021). As NFTs can
be limited to a specified amount, their price can easily surge because of their
comparative value; the ease of buying, selling, or trading NFTs also fuels the
potential price increase (Wang et al., 2021). It is noteworthy that the average
revenue per user in the NFT segment has considerably grown from USD 5.14
in 2018 to USD 56.89 in 2022 (Statista, 2022a). Although the crypto crash of
2022 may have dimmed the generally positive outlook on the wider crypto
The Age of Digital Services Marketing 181

market (Botros, 2022), these numbers show that NFT buyers still recognize the
potential economic gain and are willing to bear a higher price. Yet, because the
pricing of cryptocurrencies significantly influences the pricing of NFTs (Ante,
2022), owners may be reluctant to sell, as the tokens would be sold at a loss. On
the other hand, buyers are more eager to purchase NFTs during a cryptocurrency
downturn, because of lower prices. These dynamics affect the pricing of such
digital items in unprecedented ways, forcing companies to rethink their pricing
approach. Nevertheless, the three perspectives remain a viable tool to assess
pricing in Web 3.02.

2.3. Promotion
Marketing campaigns rely on effective promotion and communications to reach
their goals (Batra & Keller, 2016). The idea of messages delivered through what
was traditionally called the promotional mix is to accompany consumers through
their customer journey and achieve specific objectives along that journey
(Mullins et al., 2018). This implies an audience-centered approach that is built
upon brands creating and maintaining good relationships with their customers
(Fill & Osmond, 2017). The digital age has brought considerable changes to the
channels and opportunities offered by or through the promotional mix, which
in marketing has evolved to what now is commonly known as the integrated
marketing communications (IMC) mix (Yeshin, 2008). This section focuses on
the eight communication objectives that companies should seek to achieve, as put
forth by Batra and Keller (2016) while utilizing various promotional channels.
Create awareness and salience: Companies should ensure their target audiences
are aware of the offered products; this can be achieved by being appropriately
prominent through advertising, direct marketing, personal selling, website
and search, and, possibly, as a sponsor at events (Batra & Keller, 2016). For
example, a hotel in New York City could promote a hospitality package that
can be booked on their website by advertising it on third-party websites and
social media platforms with display ads or sponsored posts. Furthermore, it can
send personalized marketing emails to the targeted audience, or communicate
the offer through press releases and industry magazines. Personal selling in
a traditional setting may not directly apply to this example, although it may
have a great influence in another setting. However, personal selling in an online
context could refer to a hotel manager or director offering a free webinar to their
contacts on social media to, for example, introduce refurbished rooms, a new
in-house restaurant, or maybe a new concierge, and directly answer questions
in the webinar.

2 TheWeb 3.0 is said to converge technological advances from previous Internet eras, i.e.,
Web 1.0 and Web 2.0, including websites, mobile and smartphones, and social media,
with new technologies such as blockchain, digital tokens, and virtual/augmented/mixed/
extended reality (Hein et al., 2020; Kim, 2021).
182 Business Leveraged on Digital Marketing

Convey detailed information: Holistic brand experiences include an educational

component through which consumers can learn about a company to make
informed decisions, such as whether or not to buy a company’s products (Pine &
Gilmore, 2020). The same applies to an online environment, where information
is shared via, for example, a company’s website or email newsletter. McCarville
and Stinson (2014) note that consumers feel more comfortable about a brand
when they find or receive value-adding information, which means brands should
simplify the flow of information about their products. It is therefore essential
to create a well-organized and easy-to-navigate virtual experience that offers
visually appealing and value-adding content underlining the purpose of the
website or email newsletter (Garett et al., 2016; Ryan, 2021). For example, an
established clothing brand would share as many details as possible about a new
collection in their online shop, including size, price, stock, product description,
delivery, returns, payment options, etc. The same can be done through other
adequate channels, like social media or email newsletters while adapting the
conveyance of the message regarding the channel, where necessary.
Create imagery and personality: Batra and Keller (2016) suggest that the
communication channels with the most influence on consumers about brand
imagery and personality are TV advertising and social media. Advertising
and other paid media reach a wide audience that might not know about the
brand or its products (Ryan, 2021). Similarly, social media can have a wider
reach than traditional media (see Statista, 2022b). A possible approach is to
emphasize aesthetics and entertainment (Pine & Gilmore, 2020). For example,
Nike’s popular 2014 #DareToZlatan campaign was based on strong aesthetics
portraying Swedish football (soccer) player Zlatan Ibrahimović as a super-athlete;
the campaign offered great entertainment value while showing off Ibrahimović’s
skills in cartoon-like worlds (see Bianchi, 2014). A more contemporary approach
would see a brand taking advantage of Instagram’s or TikTok’s entertainment
value with content that is visually and emotionally entertaining (Barta et al.,
2023).
Build trust: Brand trust is best built through public relations (PR), social
media, and personal selling (Batra & Keller, 2016). PR aims to place the
brand in numerous third-party media outlets, such as TV channels, magazines,
websites, news portals, social media, and so on. Such mentions are perceived
as unbiased and neutral, which is different from the perception that people have
when they encounter an ad or a company’s press release (Fill & Osmond, 2017).
For example, in 2021, Sotheby’s, the world’s oldest auction house, launched
a digital gallery on Decentraland, an interactive virtual world. Following
standard business procedures, the innovative project was accompanied by an
official communication from Sotheby’s (see Sotheby, 2021) and Decentraland
(see Decentraland, 2021) to inform third-party media and encourage objective
and unbiased coverage of this possibly controversial project. Media outlets from
different industries and regions of the world covered the topic. Social media can
The Age of Digital Services Marketing 183

also have a great influence on building brand trust, especially when the brand
involves the community and cherishes the brand-customer relationship (Laroche
et al., 2013). This means a company such as Sotheby’s should ensure its target
audience perceives the brand as available and active online. This entails showing
that Sotheby’s is an active member of the art, jewelry, and collectibles community
and appreciates the social interactions and contributions around respective topics
(see Kietzmann et al., 2011).
Elicit emotions: Schmitt (1999) highlights that to stimulate sentiments,
marketing activities should appeal “to customers’ inner feelings and emotions,
with the objective of creating affective experiences that range from mildly
positive moods linked to a brand […] to strong emotions of joy and pride”
(p. 61). Advertising, PR, events, and social media can have a great influence
on the recipients of a marketing message (Batra & Keller, 2016). Moreover,
Belch and Belch (2003) note that “emotions generated by [an advertisement]
are important because they may become associated with the advertised product
through classical conditioning” (p. 125). A good example is Nike’s commitment
to the Black Lives Matter cause, a social and political movement, which is of
great importance to their target audience and community (Nike, 2020). Nike
created an emotional marketing campaign on the subject with different ads (see
YouTube/Nike, 2020), ensured the media would report about it (e.g., Mirzaei,
2020), encouraged NBA athletes to wear Nike shirts with a “Black Lives Matter”
print (Mauch, 2020), and made sure all of it would be shared across social media
with a dedicated hashtag like #blacklivesmatter to evoke emotions.
Inspire action: After consumers have gone through the journey of becoming
aware of a brand, learning about its products, understanding the brand’s image
and personality, trusting it to be a legitimate brand to buy into, and forging
positive emotions towards it, the next step is to inspire specific actions (Batra &
Keller, 2016). An effective way to inspire action online is direct marketing, or
more specifically, email marketing (Hudak et al., 2017). To achieve the expected
conversion, call-to-action elements should be defined and applied; this is best
undertaken by introducing a product via a direct or subliminal sales message,
which is followed by a visually unmistakable call-to-action button appropriately
placed within the email (Ryan, 2021). Action can also be inspired through sales
promotions across various channels. However, depending on the target audience,
this may not always be a suitable approach. For example, price promotions for
luxury hotels on discount websites may negatively affect the status of the hotel
brand among consumers with a high need for status (Yang et al., 2016).
Instill loyalty: Once a consumer converts to a paying customer, a marketer’s
task of satisfying that customer’s needs and wants becomes even more
important, as the next goal is to elevate the customer’s status to loyal (Kotler
& Keller, 2012). Hence, it is essential to recognize that the four dimensions of
a brand experience impact brand loyalty; thus, brands must provide a complete
184 Business Leveraged on Digital Marketing

experience based on aesthetics, emotions, information, and engagement (Brakus

et al., 2009). These experiences are individually offered at various stages of
the customer journey. Nevertheless, a brand should appropriately synthesize the
experiences to offer a consistent brand experience. A possible approach is for
a brand to create a variety of content with different media formats for different
online communication channels based on the four brand experience dimensions.
This means the company could deliver relevant information on its products and
brand, evoke emotions through affective stories, set the mood with beautiful
and intriguing visuals, and engage fans in discussions and activities around
the current campaign. Publishing these contents under a strategically designed
calendar would foster the meaning of the brand- or product-story and, hopefully,
turn customers into fans.
Connect people: Batra and Keller (2016) note that “high consumption
satisfaction should lead to brand repurchase behavior and loyalty, but this may
not, by itself, create brand advocacy” (p. 132). Hence, brands need to support
and encourage people to engage and connect with each other, especially since
smartphones enable consumers to engage with their favorite brands and peers
anytime, anywhere (Balbi & Magaudda, 2018). Social media on mobile devices
can be considered effective to achieve a said goal (Batra & Keller, 2016). Vale
and Fernandes (2018) found that social media users mainly consume, contribute,
or create content because they seek information, empowerment, and brand
love. This means that to drive engagement, fans on social media want relevant
information, want to be able to influence others, and want to be emotionally
attached to the brand.

2.4. Place
The last of the four Ps in the traditional marketing mix is place, often also
referred to as distribution; this component considers how consumers are
concerned with the convenience of purchasing a product in a given distribution
network (Mullins et al., 2018). Lovelock et al. (2017) note that products may be
delivered through physical or electronic distribution channels or a combination
of both––whatever adds value to the customer; furthermore, products could be
delivered “directly to customers or through intermediary organizations, such
as retail outlets owned by other companies, which receive a fee or percentage
of the selling price to perform certain tasks associated with sales, service and
customer-contact” (p. 1/20). In a digital context, this also applies to platforms
like eBay or Udemy, which offer an online marketplace to anyone who wants
to sell a tangible or intangible product online. With ever-growing opportunities
for brands and individuals with an idea to create a product and sell it online,
distribution intensity becomes crucial for creating awareness about the offering.
Yoo et al. (2000) ask the following three questions to assess how consumers
perceive the distribution intensity of a product: (1) More stores sell Product X,
as compared to its competing brands. (2) The number of stores that deal with
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Product X is more than that of its competing brands. (3) Product X is distributed
through as many stores as possible. Consequently, a brand with global aspirations,
like, for example, a shoes and clothing brand, would want to (1) have their
products sold in more stores than their competitors online and offline, (2) be
more visible across online and offline stores than their competitors, and (3) be
as visible as possible across a large variety of stores online and offline to stay
top-of-mind with consumers. A specific and wide distribution network––online
and offline––is highly relevant when building brand equity, because it simplifies
the purchase process offering consumers more access to the product, be it online
or offline (Abril & Rodriguez-Cánovas, 2016).
Regarding where to place a brand and its products, as well as the respective
promotion, marketers should first assess the potential reach their products can
attain through a specific online platform (Ryan, 2021). However, not only general
reach is essential, but also relevant reach, which refers to the number of users
a brand can reach through a digital channel. These users should belong to the
relevant target audience as defined by demography, geography, geodemography,
psychography, and behavior (Pickton & Broderick, 2005). For example, with
the above-mentioned reach and target audience characteristics in mind, brands
choose the appropriate media platforms for their online videos, which may include
product videos, storytelling videos, or behind-the-scenes features. When thinking
about placing one’s corporate or product videos on a specific platform, YouTube
may come to mind first, as it is recognized as the video platform with the largest
active audience worldwide (Statista, 2022b). However, this is where relevant
reach is to be considered in connection with the expected goal of the videos
along the customer journey. Although YouTube could be used as a repository for
a brand’s videos to raise awareness about the brand and its products, if found
by YouTube users, a dedicated communication channel like a brand’s own app
for mobile devices might be more appropriate, if, for example, the goal is to
increase loyalty toward the brand (Plotkina & Rabeson, 2022). This could be
achieved by offering videos exclusively through the branded app to enhance the
brand experience with affective and entertaining videos, which can strengthen
consumers’ identification with the brand, increase satisfaction with their products,
and therefore bolster brand loyalty (Brakus et al., 2009; Pine & Gilmore, 2020).
The same thoughts should be entertained when choosing the appropriate place
for distributing a digital product or digital communication about a product for
each specific IMC goal, as described in the Promotion section.

2.5. People
The people component of the marketing mix considers two perspectives: The
first perspective refers to internal marketing and the importance of employees to
the marketing success of an organization; the second perspective suggests that
brands should view consumers as people with a specific lifestyle and understand
their wants and needs, not just see them as consumers with whom they undertake
186 Business Leveraged on Digital Marketing

a simple monetary transaction (Kotler & Keller, 2012). Lovelock et al. (2017,
p. 1/21) argue that “customers will often judge the quality of the service they
receive largely on their assessment of the people providing the service”; this
leads to the notion that recruiting, training, and motivating personnel is crucial
for the sustainable success of a company and the products it offers. Furthermore,
people provide and receive brand experiences and, therefore, all stakeholders
should be considered in the conceptualization of promotional campaigns (Pine &
Gilmore, 2020). This includes employees producing, supporting, and delivering
products, as well as people supporting any kind of operation online; it could
also involve a brand’s social media followers, who co-create the experience with
their engagement and contributions (Sutera, 2013). From a business-to-business
(B2B) perspective, it can be argued that business partners, clients, goods and
facilities producers, as well as supporting services providers are stakeholders
that need to be considered within the people component (Mullins et al., 2018).
Although B2B refers to two companies doing business together, it is critical to
understand that the business partnership or transaction is effectuated between
people, which emphasizes the importance of this component regarding B2B
marketing activities.
Emotions can be evoked through face-to-face interaction (Schmitt, 1999).
For example, a brand could employ a person with strong ties to the brand and
its brand community when creating videos for its communication activities; this
person should radiate a certain personality that appeals to the target audience
with credibility and familiarity (Ryan, 2021). An example in the technology
industry could be that a company like Salesforce, a cloud-based software provider,
would employ a popular industry figure to introduce or review a new product
in a podcast, live video, or other digital content. Schmitt (1999) mentions that
“interactions do not occur in a social vacuum” (p. 167), which implies a direct
co-creation of the brand experience between consumers and brands. Traditionally,
for events that take place in a venue, this means that the atmosphere is created
between the company that provides the experience and the people in the audience
(Pine & Gilmore, 2020). In the digital age, the experience can be enhanced
by encouraging consumers to co-create the experience. Event organizers can
urge attendees and non-attendees of the event to engage with each other and
contribute user-generated content across social media (Sutera, 2013). This may
include attendees in the venue sharing visual impressions directly from the event
with others. Additionally, people following the event online, who may simply
not be able to attend, should be allowed to participate remotely in the event via,
for example, live video or online Q&As. Such engagements can reinforce the
attachment to the company and increase brand loyalty (Brakus et al., 2009). This
is crucial in a post-Covid-19 pandemic world, where live events may suddenly
be limited to fewer attendees or even forced to be held without an audience, due
to unforeseen and uncontrollable events.
Digital communication channels offer convenient access and great influence
in connecting people virtually (Sutera, 2013). Such social influence among a
The Age of Digital Services Marketing 187

brand’s fans can be reinforced by establishing an environment specifically for

like-minded consumers (Schmitt, 1999). The affiliation of customers with a brand
they love can be based upon shared attitudes, beliefs, and behaviors, which fuel
the self-categorization of individuals and lead them to associate with like-minded
people and disassociate with unlike-minded others (Yocco, 2016). The example
of Nike’s “Black Lives Matter” campaign shows how the brand positions itself
and influences its fans to do the same (Nike, 2020).

2.6. Physical Evidence

Lovelock et al. (2017, p. 1/22) explain that “the appearance of buildings,
landscaping, vehicles, interior furnishing, equipment, staff members, signs,
printed materials and other visible cues all provide tangible evidence” of a
company’s existence and service quality. This affects the impression consumers
have of a brand, emphasizing the importance of environmental factors (Wirtz
& Lovelock, 2022). When assessing the perception of how a brand’s physical
evidence would affect its brand equity, Al-Dmour et al. (2013) suggest raising
the following points: (1) Does the staff appear in attractive uniforms? (2) Are
public facilities of the company comfortable and attractive? (3) Does the product
provider use modern and sophisticated equipment? (4) Is the overall atmosphere
comfortable?
In a digital context, however, physical evidence may refer to the appearance
of digital channels, such as website design, social media presence, digital content
aesthetics, and branded mobile app functionality. For example, (1) introducing
a dress code or uniforms for staff and helpers in a physical environment could
enrich the general aesthetic experience offline, but also online, as recipients
of a message through digital media may feel a stronger sense of inclusion
(Slepian et al., 2016). This could be achieved by following a dress code or
generally coordinating appearances for people in any kind of media products
like commercial photos, promotional videos, salespeople on video calls, and
customers in testimonials. Nevertheless, this point could be extended to branding
aspects of visible online assets of a company, such as websites, branded apps,
social media, marketing emails, online ads, etc. Hence, a company should ensure
appropriate and congruent implementation of its corporate branding and design to
the above-mentioned communication channels (Kotler & Keller, 2012). Similarly,
(2) it can be argued that following a specific sensorial concept that presents a
company’s facilities as comfortable and attractive is equally important in an
online setting, which entails providing an appealing sensory online experience
to consumers (Khan et al., 2016). In an online-driven information environment,
a company must present an attractive website to its target audience that is easy
to navigate, is built upon appropriate graphical representation and content utility,
and offers the expected functionalities (Garett et al., 2016). Regarding (3) modern
and sophisticated equipment, consumers expect contemporary and not antiquated
equipment or software. This means, besides presenting the expected easy-to-
188 Business Leveraged on Digital Marketing

navigate, state-of-the-art responsive website design or branded app (Ryan, 2021),

the consumer experience could be enhanced with more immersive metaverse
experiences through virtual, augmented, or mixed reality, as well as including NFT
extensions for certain products (Lee et al., 2021). From a promotional point of
view, it may be expected for a company to communicate with its target audience
via contemporary communication channels (Fill & Osmond, 2017). Lastly, (4)
the degree of the overall atmosphere could be improved by providing consumers
with a satisfying offline and online brand experience, which is based upon the
preceding three points.

2.7. Process Management

Products are created and delivered to customers through effective processes.
According to Lovelock et al. (2017), “a process describes the method and
sequence of actions in which service operating systems work” (p. 1/23).
Furthermore, processes can affect the delivery and, thus, the perceived quality of
a product, which consequently can hurt relationships with customers, especially,
if these are poorly delivered or of low quality (Kotler & Keller, 2012). In
services marketing, the delivery of products can be undertaken through tangible
or intangible actions and be directed at people’s bodies (people processing),
people’s minds (mental processing stimulus), or they can be directed at people’s
possessions (possession processing) or people’s assets (information processing)
(Wirtz & Lovelock, 2022). Given the ubiquity of digital applications, this also
applies to digital services marketing.
People processing includes tangible actions that are undertaken to physically
present customers, who obtain benefits of the purchased product (Lovelock et al.,
2017). In digital services marketing, the main difference is that the customer does
not have to be physically present, but may be present via an online communication
channel. Therefore, people processing could entail active engagement by the
company with consumers through any two- or many-way communication channel,
e.g., social media (Ryan, 2021). This became crucial with the Covid-19 pandemic
in 2020. Certain merchants introduced a novel personal shopping experience
through live video to bridge the communicative gap that was created because of
lockdown measures; the augmented service enabled consumers to comfortably
shop from their homes, which might be an additional service that companies may
want to keep in their customer relationship management portfolio, as it positively
influences shopping decisions (Wang et al., 2022). This applies to any tangible
action with a customer.
Possession processing involves tangible actions that are made to physical
possessions of customers, which includes value-adding activities occurring during
the lifetime of the physical or digital possession (Lovelock et al., 2017). This
could include the customization of physical products like sneakers, shirts, or
photobooks through a web application or in a branded smartphone app. Similarly,
possession processing can entail an account upgrade from, for example, a basic
The Age of Digital Services Marketing 189

package for a cloud-storage service to a larger storage package. Also, an important

process for digital platforms is the proactive update of software and apps to
provide the best possible delivery of its digital service. However, depending on
the perspective, such an update may be categorized as information processing
(see respective section).
Mental stimulus processing encompasses intangible actions pointed at
people’s minds like entertainment, sporting events, theatrical plays, and education
(Lovelock et al., 2017). Customers need to be mentally present but can consume
the product from anywhere they please, as long as they have online access. An
obvious example includes the consumption of an entertainment product like a
movie or series on TV or through an online streaming platform like Netflix.
Watching YouTube for educational purposes could also be included in this
category; for example, watching a video explaining how to apply a specific
function in Microsoft Excel to learn a new skill, requires viewers to think while
absorbing and processing the new material, before putting it into action (see Pine
& Gilmore, 2020). A further media product directed at people’s minds could
include advertisements across various digital channels. Based on the premise that
advertising may mainly have a great influence in establishing brand awareness,
brand imagery, and eliciting emotions (Batra & Keller, 2016), it can be argued that
Nike’s 2022 campaign “Never Settle, Never Done” achieves the above-mentioned
goals. It addresses the struggle for equality for girls and women and positions its
brand to create an unmistakable image, and, consequently, evokes strong emotions
through its outspoken commitment to contemporary issues (Cowan, 2022).
Information processing involves intangible actions directed at consumers’
assets, which may comprise operations such as data processing, billing, or
consulting (Lovelock et al., 2017). The model suggests that the more uncertain
a task is, the more information has to flow between decision-makers during the
performance of the task to achieve a certain level of quality; however, if the
task is clear from the beginning, it can be pre-planned, saving time and effort
(Galbraith, 1974). Consequently, the delivery of the product should follow a
clearly structured and transparent process that eliminates any kind of uncertainty
and therefore diminishes the possible threat of customers being dissatisfied. An
example can include the recurring billing of an online subscription for a service
like Disney+, an on-demand over-the-top streaming service. The platform may
offer various payment options, such as monthly or yearly through a credit card
or PayPal. Offering a clear explanation of how the transaction occurs, limits
uncertainty on the side of the customer; it might further increase trust that the
process will be properly executed (see Yocco, 2016). The same can be applied
to any other information processing. Sisodia and Chowdhary (2012) argue that
visuals help better deliver messages with a high level of information. Similarly,
Yocco (2016) posits that the ubiquity of digital media and the channels accessible
to distribute messages, enable users to gather and share information with little or
no effort. This is where Galbraith’s (1974) proposition of a transparent and clear
information process becomes relevant in a digital context again.
190 Business Leveraged on Digital Marketing

2.8. Productivity and Quality

The last of the 8 Ps has been named differently across various literature, e.g.,
performance (Kotler & Keller, 2012), personalization (Goldsmith, 1999), and
productivity and quality (Lovelock et al., 2017). Kotler and Keller (2012) see
“performance as in holistic marketing, to capture the range of possible outcome
measures that have financial and nonfinancial implications […], and implications
beyond the company itself” (p. 26). This definition sets productivity and quality
in marketing into a broader context and underlines the importance it has on the
overall outcome of a company’s activities viewed from an internal and external
perspective. A different view is offered by Goldsmith (1999), who speaks of the
new marketing responsibility and contends that “the Personalisation decision
is so important that it should be among the first decisions managers make so
that the degree and nature of product personalization should guide subsequent
marketing decisions” (p. 179). This means, the personalization opportunity for
consumers will offer a unique product for every individual consumer. Lastly,
Lovelock et al. (2017) combine both arguments and posit, “productivity relates
to how inputs are transformed into outputs that are valued by customers, while
quality refers to the degree to which a service satisfies customers by meeting
their needs, wants and expectations” (p. 21); they add that service quality, as
defined by customers, emphasizes how a product differentiates from a competing
offer and therefore builds customer loyalty.
The key takeaway from the three definitions above is that productivity and
perceived quality may increase, if companies offer personalization opportunities to
consumers, which in the digital age equals additional interaction and engagement
possibilities with the brand through digital channels. This notion finds indirect
support in the experiential marketing concept by Schmitt (1999), in which
interactive campaigns are intended to add experiential value to a brand experience,
bolster brand satisfaction, and enhance brand loyalty. This is also highlighted
by Pine and Gilmore (1998), who note, “Escapist experiences can teach just as
well as educational events can, or amuse just as well as entertainment, but they
involve greater customer immersion; acting in a play, playing in an orchestra, or
descending the Grand Canyon involves both active participation and immersion in
the experience” (p. 102). Therefore, it can be deduced that involving consumers
in the online or offline co-creation process of a product or a brand experience,
will empower them, make them feel more connected to the brand community,
and ultimately makes them an integral part of the brand.
Ramaswamy (2008) suggests that co-creation between a brand and its
customers should be based upon four elements: (1) dialogue between the brand
and users, as well as between users; (2) access between the brand and users that
addresses how to receive and experience the product; (3) risk-return for both
users and the brand, because the personalization of a product can reduce the
risk that a customer may not like the product, since it is co-created by the user;
similarly, the company lowers the risk of losing a customer, because the perceived
quality of the product is higher, given the customer enhanced it herself; and
The Age of Digital Services Marketing 191

(4) transparency of information for users to have a stronger foundation upon

which to build their perception of the company or brand.
In the context of digital services marketing, the following can be interpreted
and applied: (1) Dialogue would see to the possibility for users and the brand
to talk to each other through, for example, a website chat option like a chatbot;
similarly, dialogue between users could be offered through comments and reply
functions on shopping items. This could be of help when potential customers
have questions about an item or want to consult the comments of previous buyers
during their decision-making process. (2) Access refers to how the product shall
be received and experienced. In the case of online clothes shopping, this could
include the shopping experience offered to users, such as ease of navigation
through the online shop, finding and altering features, or how much fun it is
to shop on the website (Garett et al., 2016). A further perspective could be
the ease of access to the website for shopping purposes from a smartphone; a
responsive website design would be expected for a better user experience (Ryan,
2021). Furthermore, considerable value could be added to the user experience,
for example, through access to an online app or software that allows users to
personalize certain products. (3) The risk-return relationship is based upon the
proposition that the risk of not liking the purchased product is minimized, because
customers co-created the product to make it as much to their liking as possible
(Goldsmith, 1999). In the case of clothing and accessories, personalization options
could include changing the color of specific pieces of a product, like the sole of a
sneaker, or printing or stitching a name on a bag. Regarding intangible products,
for example, a mobile phone data plan, a user could simply upgrade or downgrade
a certain option via the provider’s website. However, the question arises, of how
much personalization is necessary to please users without diluting the branding
aspect of the offered product (Goldsmith, 1999). Lastly, transparency is given
when “all the information, which might be helpful to improve the outcome of
the service experience” is provided (Solakis et al., 2017, p. 542). Simply put,
a company should be adequately open to potential and current customers about
how they conceptualize, produce, and promote their products. It could further
be argued that total transparency would also include offering an overview of the
price evolution of certain products, as well as costs incurred to produce them and
the margins that are made. This is especially relevant in a Web 3.0 environment,
where the “safe and transparent recordkeeping nature of blockchain [technology]
is a potential game-changer for marketing” (Kotler et al., 2021, p. 103).

3. Conclusion
This chapter defined digital services marketing and how it can be applied
through the 8 Ps of the services marketing mix. The main difference to a
contemporary services marketing mix is the emphasis on digital characteristics
of given products or their augmentations and the bridging of the offline and
online environment through contemporary technology. It was argued that a
192 Business Leveraged on Digital Marketing

general digital-first approach in marketing and the ubiquity of digital media not
only stresses the obvious importance of the digital perspective for promotion
and distribution activities but also for product conceptualization and pricing.
It was highlighted that the technological evolution to a more immersive online
environment, including virtual, augmented, or mixed reality opportunities, NFTs,
and metaverse experiences, will incite consumers to expect respective enhanced
products, which companies will need to deliver at least to a certain degree, if
not completely, through digital channels. Although people connected to a brand
or product may seem to be obviously grounded in an offline environment,
contemporary technology allows them to be represented online via respective
channels. Similarly, the meaning of physical evidence evolved to include online
channels and other digital assets. Whereas the management of processes in the
digital age may only have added new categories and extended some intangible
applications, the productivity and quality component of the marketing mix has
seen a more significant update. An increasing number of new virtual tools keep
offering novel opportunities and possibilities to companies and consumers alike
that need to be addressed to improve organizational effectiveness. Ultimately,
marketers should be aware of the considerable impact that current technological
advances have on general marketing activities for tangible and intangible
products. With all of this in mind, it is crucial to create marketing strategies
and tactics with consideration to the interwoven relationship between tangible
products and intangible augmentations.

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 CHAPTER

10

Go International with Digital

Transformation

Carla Azevedo Lobo1* [0000-0002-6721-376X] and Fernando Moreira2

[0000-0002-0816-1445]
1
REMIT, IJP, Universidade Portucalense, Porto & GOVCOPP, Universidade
de Aveiro, Portugal
2 REMIT, IJP, Universidade Portucalense, Porto & IEETA, Universidade
de Aveiro, Portugal

1. Introduction
The ability to internationalize has become a competitive necessity for
many companies, and one that allows for survival and growth in the era of
globalization (Raymond & St-Pierre, 2011). The process of internationalization,
namely in small and medium-sized companies (SMEs), is a developing process
and requires a new set of skills (marketing, orientation towards new markets,
among others) (Pham et al., 2017). According to Oviatt and McDougall (1997),
it seems that internationalization strategy is not merely uncertainty-reducing,
but also opportunity-seeking. Opportunity development cannot take place in a
vacuum. Rather it happens in a specific context, that is, within the companies’
international network (Holm et al., 2015). In line with most conceptualizations
of opportunity, a company’s knowledge is the critical element and a company
with sophisticated knowledge is likely to pursue opportunities in different ways
than outsider companies with limited experience (Bai & Johanson, 2018). In this
context, digitalization is transforming the range of opportunities and offering new
perspectives of internationalization (Autio, 2017). Digitalization, as a relatively
recent phenomenon, has gained a lot of adherence and is completely changing
customer behavior and expectations and has, therefore, implicitly forced the
reinvention of businesses to create and maintain customers. Digitalization,

*Corresponding author: [email protected]

Go International with Digital Transformation 197

according to Huckstep (2016), is a significant part of the possibly greatest

global trend, Industry 4.0, and more recently, Industry 5.0, “that complements
the existing Industry 4.0 by highlighting research and innovation as drivers for
a transition to a sustainable, human-centric and resilient European industry”1.
Digitalization threatens to completely transform organizations and business
models today. It is also widely acknowledged that organizations have suffered
a large evolution at the technological level where the traditional barriers of
information and knowledge transferring have been progressively eliminated.
In this context, the concept of Digital Transformation (DT) emerges. In
business practice, the DT can enable a significant competitive advantage. It
can also be seen as a deep and accelerating transformation regarding processes,
activities, competencies, and models, to take advantage of the changes and
opportunities offered by the inclusion of digital technologies into an organization,
of which digitalization tools are an example.
According to several researchers, internationalization is increasingly
dependent on companies’ digitalization. Since companies started dematerializing
borders and reducing costs with the usage of e-commerce, they have also changed
how business is conducted (Gregory et al., 2019). The introduction of mobile
technologies, storage solutions (cloud computing), learning algorithms, and big
data technologies has created new opportunities for companies and has increased
digitalization. Data scientists can extract the most outstanding possible customer
knowledge from a large amount of data produced by these technologies. The
goal is to define new personalized products and services described by Kraus
et al. (2019). Three-dimensional printers also represent a crucial advance in
manufacturing techniques, as does the Internet of Things (IoT). According to
Iansiti & Lakhani (2018), the opportunities introduced by blockchain technology
provide companies with transparent storage and transmission of information,
which is secure and works without third parties based on code.
In this context, it is possible to define, according to Hervé, Schmitt &
Baldegger (2020), four fields of activity related to the main internationalizing
criteria. These are: (1) costs, accessibility, resources, and competencies; (2)
market knowledge; (3) distance and location; and (4) relational competencies
and partner networks.
Technologies listed above have greater or lesser relevance in all the fields
of activity previously mentioned. These technologies are always present when
companies want to become more international and more competitive. For the first
criterion, the use of IoT described in Strange & Zucchella (2017), and virtual reality
(VR)/augmented reality (AR) technologies are good examples of tools to reduce
production costs and have the potential to influence organizations and employees
dramatically. For the second criterion, Neubert (2018) shows that capturing and
disseminating large amounts of data can accelerate internationalization. Processing

1 https://op.europa.eu
198 Business Leveraged on Digital Marketing

these data allow, through predictive algorithms, to assess the current conditions
of the company, as well as the possible attractiveness of new markets where it
intends to conduct its activity. The authors also add that, based on the volume of
data, it is also possible to use advanced data-mining techniques, such as machine
learning (ML), for decision-making. Artificial intelligence (AI) and statistical
approaches can help companies build more adequate internationalization strategies.
On the other hand, in Strange & Zucchella (2017), it is shown that in
machine-to-machine and machine-to-human interaction, IoT facilitates product
customization. In addition, three-dimensional (3D) printers provide customers
with more significant influence over the design of their products and the control
of manufacturing origins. Regarding the third criterion, according to Coviello
et al. (2017), it is possible to develop a large community of users and create
partnerships with local companies via platforms. Finally, for the last criterion,
it is possible to highlight, according to Coviello et al. (2017), and Strange and
Zucchella (2017), the sharing of data between partners to reach target networks
and to make sustainable use of social networks and mass media. The goal is to
get feedback on products and even as local manufacturers.
Also according to Kraus et al. (2021), digitalization is changing businesses
worldwide because of globalization. In recent decades, the pressure for businesses
to change radically has increased; the emergence of global businesses, such as
Uber, Airbnb, among others, which sustain their globalization through technology
and the proposal of innovative business models, can be highlighted. White (2012)
shows that it is possible to find an efficient integration through the digitalization
of processes and collaboration tools. In this context, the importance of DT has
increased (Bouncken et al., 2019; Bouwman et al., 2018; Hess et al., 2016).
According to Muthuraman (2020) and Isensee et al. (2020), the digitalization
processes have become part of every aspect of business with a major impact
on business growth and sustainable development. Bai et al. (2021) describe
digitalization and sustainability as good practices that should be part of strategic
plans for organizations. Denicolai et al. (2021) present some findings indicating
that sustainability is going to become a competitive driver for those SMEs having
an international orientation. Sustainability issues in SMEs have also gained further
attention in “the new normal” era, confirming that there are two dimensions—
digitalization and sustainability (Bain & Company, 2020).
This chapter follows the following structure: Section 2 presents the
background concepts involved in this study; Section 3 reviews the central literature
for internationalization and business digitalization; and Section 4 addresses the
conclusions.

2. Background
In this section, we will present some important definitions of concepts that have
already been part of this chapter and that will continue to be present until the
closing remarks. We will start with the definition of Internationalization, which
Go International with Digital Transformation 199

has not been the subject of a consensus among the different researchers on
the subject.

2.1. Internationalization
Beneki, Papastathopoulos & Tsagris (2011) describe internationalization
as a “means that a company acts in one or several foreign markets and thus
develops its activities in an international context”. The authors also explain
that internationalization helps companies to have a competitive advantage in
doing business abroad. This competitive advantage appears with the advent
of globalization and the knowledge economy, allowing the establishment of
strategies that increase the internationalization of companies, especially SMEs.
However, SMEs are generally limited in their resources and international
experience.
Internationalization is an essential source for the company’s growth
and to improve its performance. For example, there was a clustering of
internationalization in large organizations in the past, but the internationalization
strategy of SMEs started to increase when digital technologies allowed them
easy access to other types of markets. These technologies increased the speed
of internationalization and created the global recognition of opportunities, as
evidenced by trends in using these means to promote, communicate, and reach
various partners. Thus, internationalizing has become a competitive necessity for
many companies, allowing their survival and growth under challenging conditions,
such as globalization and in the middle of the knowledge economy.
According to Sestino et al. (2020), digitalization blurs the boundaries between
technology and management (facilitating new business models integrated into
digital environment concepts, methods, and tools that lead to the DT).

2.2. Digitalization
Digitalization within a business context is a concept of more automatic and
digital operations. All data are transferred to computer systems and become
more accessible. Thus, the development of automation enabled by robotics and
AI brings the promise of higher levels of productivity and better efficiency,
security, and convenience described in Manyika (2017), as well as, according
to Valenduc & Vendramin (2017), transforming the world of work, creating
new types of digital or virtual work. This digitalization, according to Huckstep
(2016), is transforming entrepreneurship in two ways. The first transformation is
the inconstant location of entrepreneurial opportunities in the economy, and the
second is the transformation of entrepreneurial practices themselves. The same
author uses the term “digital disruption” to describe the transformational impact
of digital technologies and infrastructures on how businesses, the economy, and
society operate. This digital disruption creates opportunities for SMEs to grow
and internationalize. If they do not follow the digitalization trend, they will fall
behind their competitors, eventually leading to their closure, for example, with
Kodak.
200 Business Leveraged on Digital Marketing

2.3. Digital Transformation

In recent years, DT has become a major trend in both industry and the public
sector in many countries (Kaminskyi et al., 2018). DT determines the transition
to the mass use of digital technologies in the various sectors of the economy and
society, which improve or replace traditional products and services. According
to the World Economic Forum (2016), DT offers enormous innovation potential,
moves several trillion dollars, and applies to many industries (logistics, health,
automotive industry) and social trends (science, government, etc.). The DT of
society not only significantly changes industrial and economic structures, but
also introduces new perspectives in all kinds of businesses and in the various
areas of society (public and private).
Gong and Ribiere (2021) created a unified definition of DT because, upto the
time of the publication, there were 134 definitions. They present the following
unified definition of DT: “A fundamental change process, enabled by the
innovative use of digital technologies accompanied by the strategic leverage of
key resources and capabilities, aiming to radically improve an entity and redefine
its value proposition for its stakeholders.”
According to Kaminskyi et al. (2018) the main axes of the influence of DT
on the evolution of social and economic systems are: (1) to increase mobility
in meeting consumers’ needs, allowing overcome territorial restrictions and the
dependency on the location of service providers; (2) to have the possibility to
collect, store and process large volumes of data, which leads to a reduction of
transaction costs in decision-making and the conclusion of transactions; (3)
proliferation of network effects, which alter profit generation chains and ground
new business models; (4) to change the system of relations between consumers
and service providers for the involvement of consumers in the process of creating
value for the consumer himself.
The DT of society not only significantly changes industrial and economic
structures, but also introduces new perspectives in all kinds of businesses and
in the various areas of society (public and private). Companies that present
disruptive digital business models (Google, Tesla, Apple, Amazon, Netflix, Uber,
and Airbnb, among others) use the most recent technologies (cloud computing,
Internet of Things [IoT], big data analytics, and machine learning [ML]) that have
been supporting and driving DT. As concrete examples presented in Oswald et
al. (2017), the business model of Uber and Airbnb is entirely digital and uses the
mentioned technologies. Another example is the change seen in the television
and film industry with the emergence of companies such as Netflix and HBO
that use streaming services. These organizations could gain access to the global
market because they strategically leveraged their resources and capabilities (using
the suitable means, that is, the right technologies) to recreate value (having a
far-reaching impact reaching all parts of the world). It allows them to adapt to
changes in customer preferences and market dynamics, as is happening in this
pandemic that we are currently experiencing.
Go International with Digital Transformation 201

All organizations/companies (organization, business network, industry, and

society) have valuable digital assets, whether they are data or functionality, but
resources (human, financial, and knowledge) and capabilities (digital capabilities
and dynamic resources) are the strategic assets for initiating or accelerate DT,
leveraging, reusing, combining, and sharing with stakeholders. Zavery (n.d.)
describes DT as not about using digital technologies themselves, launching more
mobile apps or migrating to the cloud, or enjoying ML or most of the other
finite things that people associate with it. Nevertheless, the strategic leverage
of resources and capabilities radically improves an organization/company and
redefines its value proposition for stakeholders. Preferences and market dynamics
are happening in this pandemic that the world is currently experiencing.

2.4. Digital Business Transformation

The DT of the business, according to Schwertner (2017), is the application of
technology to build new business models, processes, software, and systems that
result in higher profits, more significant competitive advantage, and greater
efficiency. Companies achieve this goal by transforming business processes
and models, enhancing the efficiency and innovation of the workforce, and
customizing the experiences of customers/citizens. Among companies where
cloud, mobile, social, and big data technologies (key pillars of DT) are critical
parts of their infrastructure, these technologies are already profitable, on
average, have higher revenues, and have achieved a higher market valuation
than competitors, without an appropriate view of usage aligned with their
strategy. However, as with any emerging technology, significant challenges are
associated with cloud, mobile, social, and big data initiatives. The main risks
that prevent its wider adoption are data security issues, legal issues, lack of
interoperability with existing information technology (IT) systems, and lack of
control, which can somehow, in the initial phase, delay the DT of the business
and, as a consequence, slow down the internationalization of the business.

2.5. Digital Technologies

2.5.1. 5th Generation (5G) telecommunications
5G wireless communications meet the challenges that large-scale complex
network connections pose. These networks have extremely low latency, greater
capacity, and improved data transmission speed, using millimeter-higher
frequency waves than existing networks (Simkó & Mattsson, 2019). The
transmission latency and the download speed of these networks are much better
than those of previous generations (3G and 4G). In the first case, it allows a
much lower transmission latency (Samsung, 2015), and in the second case, it
can increase the download speed by 20 times (Nordrum et al., 2017), which
substantially improves the service provided to end users.
202 Business Leveraged on Digital Marketing

2.5.2. The Internet of Things (IoT)

The number of mobile devices has exceeded the number of the global population
(Simkó & Mattsson, 2019). In this way, there is an increased interconnection
between devices and machines, maintaining connections without direct human
intervention. This network is known as the IoT to differentiate it from the
traditional internet connecting people. It is the network of physical objects
incorporated with sensors and transmitting and processing data, communicating
with other machines or humans, and is often automated. Nowadays, networks
connect individuals, but as individuals begin to use monitoring devices, such as
smartwatches, smart homes, mobile payments, and travel in smart cities with
driverless cars, the capacity required for networks is growing exponentially. All
this connectivity requires that communication infrastructures be improved, and
5G will support this ubiquitous connectivity and enable IoT, connecting virtually
all aspects of human life. Connected devices will reach around 500 billion, about
59 times the projected human population, by 2030, when mass marketing of 6G
is expected (Newsroom, 2020).

2.5.3. Artificial intelligence and important subareas

The concept of AI proposed by McCarthy et al. (1955) appeared for the first
time in 1956, and the authors stated that: “The study is to proceed based on the
conjecture that every aspect of learning or any other feature of intelligence can
in principle be so precisely described that a machine can be made to simulate
it.” Since then, there has been a significant evolution in this activity area, where
ML developed in Samuel, A.L. (1959) appeared as a subarea. The focus of this
technique is on systems learning automatically from experience instead of being
programmed. In the 1980s, ML demonstrated great potential in computational
forecasting and predictive analysis (Bengio et al., 2013). Deep learning (DL), a
subarea of ML, allows studying the underlying resources in data from various
processing layers using neural networks, like the human brain (Goodfellow et al.,
2016). As of 2010, DL has attracted immense attention in many fields, especially
image recognition and speech recognition (Ferreira et al., 2019; Schmidhuber,
2015).

2.5.4. Augmented and virtual reality

Virtual reality (VR) will significantly impact society when 5G and later
6G emerge. Technology has a widespread presence since it will provide the
technical conditions, namely the communications infrastructures, that will allow
users to interact with the simulated elements practically in real-time. Augmented
reality (AR), in which computer-aided information is generated and graphically
augmented for display in real-time, may also have vast implications in any sector
of activity. VR creates a digital experience in which the user’s environment is
immersive. The user usually wears an immersive headset that limits peripheral
vision in the VR environment. AR combines digital information with real-world
Go International with Digital Transformation 203

environmental data, allowing users to simultaneously interact with digital images

and view the real physical environment. AR integrates virtual objects in real-
world space, while VR generally blocks information from the real environment
and transports users to a simulated virtual world (Cipresso et al., 2018).

2.5.5. Big data and associated analytics

As discussed by Chen et al. (2014), on the one hand, big data is considered an
abstract concept, and, on the other hand, the academic and industrial communities
have different views on the definition (O’Reilly Radar Team, 2011). However,
some definitions have appeared over time, namely by Apache Hadoop, IBM,
McKinsey & Company, and IDC. Though introduced by Doug Laney in 2001,
the first definition was of the 3Vs model (volume, velocity, and variety) (Gantz
& Reinsel, 2011). This definition has changed, and in 2011, IDC defined big data
as follows: “Big data technologies describe a new generation of technologies
and architectures, designed to economically extract value from huge volumes
of a wide variety of data, by enabling the high-velocity capture, discovery, and
analysis” (Labrinidis & Jagadish, 2012). This definition implied a change from
the 3Vs model to a 4Vs model with the inclusion of value (tremendous value
but very low density).

2.5.6. Cloud computing

The basic definition of cloud computing is described in Armbrust et al. (2010) and
is given as follows: “Cloud computing refers to both the applications delivered
as services over the Internet and the hardware and systems software in the data
centers that provide those services.” The services themselves have long been
referred to as software as a service (SaaS). Some providers use infrastructure
as a service (IaaS) and platform as a service (PaaS) to describe their products.
While realizing that the definition may vary, Ochian et al. (2014) describe
cloud computing “as a mechanism for generating ubiquitous access to a pool
of convenient, on-demand computing resources (compute, storage, platform,
application, and services) through a web interface with low administration
overhead and the least intervention from a cloud service provider”. Providers such
as Amazon, Google, and Microsoft support this new paradigm. Microsoft offers
SaaS, PaaS, and IaaS cloud packages to end users. Regarding the advantages
of the implementation of the cloud computing paradigm, Uhl and Gollenia
(2014) put forward the following enhancers for organizations: “(1) Increase user
mobility by a ubiquitous approval of information on any device; (2) Flexibility
and cost savings by eliminating the need for heavy local installations of end-user
applications and high-powered client computers; and (3) Boost your business by
the shift from fixed costs to variable costs.”

3. Theoretical Foundation
Companies’ internationalization and their research are of increasing importance
204 Business Leveraged on Digital Marketing

today. This subject is proven to be relevant not only for companies but also for
the national economy itself. As export market shares change, the consequences
for a small open economy such as Portugal, for example, can be very serious.
Deteriorations in export performance tend to be negatively reflected in economic
growth, leading to disparities in real per capita income as witnessed, for example,
in the euro area.
Internationalization has become, more than a matter of choice, a matter of
survival in a changing world. According to Dana and Richard (2004), international
business has for a long time been dominated by large companies with smaller
companies tending to remain local or, at most, regional. The traditional theories
of internationalization thus focused mainly on multinationals and not on smaller
companies. However, the development of business and new technologies has
been breaking all frontiers, with the increasing internationalization of companies
regardless of their size, activity sector, or geographical origin (Teixeira, 2003).
Several researchers in recent years have focused on the characteristics of behaviors
that allow SMEs to increase their processes of internationalization, as well as
their international performance despite the apparent lack of resources when
compared to large companies (Brouthers et al., 2014; Bruneel et al, 2010; De
Clercq et al., 2012; Oura et al., 2016; Lobo et al., 2020). Thus, empirical evidence
can provide important insights into the internationalization of new business,
showing how younger and smaller companies can compensate for their lack of
international experience, through learning based on the previous experience of
the management team and through business digitalization (Beneki et al., 2011).
Nowadays, companies have to find new ways to develop competitive advantages
which imply the acquisition of new skills, resources, and capabilities (Nakos,
Dimitratos & Elbanna, 2019). In many cases, companies can gain access to these
resources, including market-specific knowledge, through alternative forms of
management and with the help of new technologies (Beneki, Papastathopoulos
& Tsagris, 2011). On the other hand, the evolution of e-commerce has redefined
the nature of international business for many SMEs (Karavdic & Gregory, 2005).
By facilitating the direct connection between the company and a foreign client,
new technologies provide possibilities of access and service to foreign markets,
impacting the number of those involved in the export operations (Joensuu-
Salo et al., 2018). This approach captures the fact that with the introduction
of the internet, competing with MNEs (multinational enterprises), SMEs also
started to engage in international activities—frequently immediately after their
foundation. These International Entrepreneurship (IE) approaches focus on internal
factors, capabilities, and networks of a company as reasons for such behavior
(Andersson, 2011; Etemad & Wright, 1999). Therefore, there is a growing need
to understand internationalization in the context of SMEs as much as it existed
in the context of large multinationals. Knowing how, when, and why companies
become international, has become an important research topic in the field of
Internationalization. For Hagen et al. (2017), in the intention of internationalization
of SMEs, two pillars should be considered: the increasing globalization of markets
Go International with Digital Transformation 205

(Clercq et al., 2005; Coviello & Munro, 1997; Jones, 1999; Thomas, 2009) and
the rapid advances in technology, especially at the level of everything that can be
traded online (Karavdic & Gregory, 2005). Digitalization fundamentally changes
business practices, challenges the competitive advantages of well-established
businesses, and provides opportunities for new businesses (Clercq et al., 2005).
The characteristics of the digital market promote the internationalization of smaller
and younger companies despite their limited budget for internationalizing early
and on a wide scale. Notably, traditional theories (e.g., internalization theory,
the eclectic paradigm adding ownership and location-specific advantages, or
the internationalization process model also known as Uppsala stages), were
developed based on observations in large MNEs, often more than 40 years ago.
Digitalization, on the other hand, could be described as a new “game changer”
in the internationalization of SMEs worldwide. Digitalization offers new
opportunities in foreign markets while at the same time increasing competition in
the home market. To achieve a competitive advantage, companies must be aware
of changes in a market utilizing digital tools and be capable of responding to
those changes through digitalization (Cao et al., 2018). This requires learning and
dynamic capabilities. Merkert et al. (2015) also stress the need for further research
on the usefulness of digitalization for decision-making purposes. Digitalization
is instrumental in facilitating earlier and faster internationalization through
digitalized knowledge, network creation, and decision-making processes (Coviello
et al., 2017). According to the Uppsala internationalization process model,
companies use an establishment chain to develop new foreign markets (Vahlne
& Johanson, 2017). An establishment chain in the form of a market development
process can be described as a series of four steps: (1) market evaluation and
selection phase; (2) market preparation; (3) market entry; and (4) market growth
and development (Neubert, 2015). Due to a large amount of existing data and
a steady stream of new data due to a fast-changing and complex environment,
the basic assumption of the study of Neubert (2015) is that the preparation of
decisions and decision-making processes in international market development
would benefit from digitalization, thereby reducing the evaluation and selection
workflow from three tasks to just one task and increasing the limited number of
analyzed countries to the whole population.
The entire digitalization process has seen exponential growth in recent
times but has increased during the pandemic. However, this type of research
was initiated in 1996 by Lovelock and Yip, as indicated in Alves (2020), Gilson
et al. (2014) and Kotha et al. (2001). These studies focus only on a few specific
aspects of digitization (Eduardsen & Ivang, 2016; Leamer & Storper, 2001) and
internationalization (Reuber & Fischer, 2011; Vadana et al., 2019) or focus on
a specific type of company (Wittkop et al., 2013) or country (Mendes, 2020).
Digitalization is a concept that allows more automatic and digital operations
because it blurs the boundaries between Technology and Management. This
approximation, almost fusion, between technology and management will facilitate
the emergence of new business models integrating digital environments, concepts,
206 Business Leveraged on Digital Marketing

methods, and tools that lead to the DT of organizations (Sestino et al., 2020). Data
are transferred to computer systems and become more accessible in this context.
Thus, the development of automation enabled by robotics and AI holds the promise
of higher levels of productivity as well as better efficiency, safety, and convenience
(Manyika, 2017), and allows the transformation of the world of work, creating
new types of digital or virtual work (Valenduc & Vendramin, 2017). According
to Huckstep (2016), digitization transforms entrepreneurship in two ways. The
first transformation is the shifting location of entrepreneurial opportunities in
the economy, and the second is the transformation of entrepreneurial practices
themselves. The same author uses the term “digital disruption” to describe
the transformational impact of digital technologies and infrastructures on the
functioning of businesses, the economy, and society. If they do not follow the
digitization and DT trend, they will no longer be competitive and may even
disappear from the market, as happened with Kodak.
However, and oddly enough, in the research of Cao et al. (2018), digitalization
did not affect the performance of internationalized companies. Nevertheless,
the effect was significant with companies operating in their domestic markets.
The finding is intriguing because as recent literature argues, digitalization is
sought to be a new way of reaching foreign markets. It could be that the tools
of digitalization are more difficult to utilize fully in the context of a foreign
culture. With companies operating in their domestic markets, digitalization had
a significant effect on companies’ performance. It seems that operating in a
more familiar market makes it to exploit the positive effects of digitalization.
The dynamic capabilities (DC) concept suggests that digitalization is a potential
asset but one requiring a company to be able to adjust its processes to utilize this
resource effectively in a dynamic business environment. These findings suggest
that companies require heightened levels of this ability when operating in foreign
markets (Cao et al., 2018).
Organizations’ imperative primarily drives the rapid evolution of DT to adapt
to evolving market demands and shifting consumer behaviours. Gong and Ribiere
(2021) have played a crucial role in addressing this need by providing a unified
definition. They highlight that disruptive digital business models heavily rely on
foundational technologies, exemplified by industry giants such as Google, Tesla,
Apple, Amazon, Netflix, Uber and Airbnb, as pointed earlier in this chapter. Uber
and Airbnb have strategically leveraged these technologies to expand their global
presence, while Netflix and HBO have revolutionized the television and film
industry through their innovative streaming services. Even during the pandemic,
these organizations have remarkably adapted to shifting customer preferences and
market dynamics. Although digital assets in the form of data and functionality are
ubiquitous across all organizations, the strategic allocation of resources—human,
financial, and knowledge—and the cultivation of digital and dynamic capabilities
serve as the driving force behind and catalyst for DT. Consequently, the essence
of DT transcends mere technological advancements; it encompasses the strategic
Go International with Digital Transformation 207

harnessing of these assets to redefine value propositions—a particularly critical

endeavour in the ever-evolving landscape of today’s markets.
However, some authors argue that it is not enough to have digital technology
and the necessary strategic solid market orientation, such as Knight & Cavusgil
(2004). It is also essential to have distribution networks and market knowledge,
which can be obstacles for companies and compromise internationalization.
However, the market with increasing demand makes the internationalization
strategy closely associated with DT (Dethine et al., 2020).
As long as they are appropriately incorporated, business internationalization
with digital technologies can automate these processes; social technologies, mobile
technologies, analytics, clouds, and the Internet of Things (IoT) are considered
new digital technologies (Sebastian et al., 2020). Some of these technologies are
favorable to the internationalization of businesses because, based on technological
development, it adds value, especially to digital workplaces, providing access
regardless of location (White, 2012).
To confirm the research work presented above, a study shows that
traditional systems engineering and management approaches are inadequate and
insufficient for a system-of-systems (SoS) (Bondar et al., 2017). The reasons
given can be summarized with advances in network communication and the
human-machine interface, requiring reliable interoperability between component
systems in an SoS environment, as the traditional functional decomposition
is no longer valid. Complementarily, in Pousttchi et al. (2019) it is shown
that data technologies (NoSQL, in-memory, blockchain; IT infrastructure can
be local, on-premise, cloud, serverless or employing edge computing; data
analytics—data mining and predictive analysis; big data techniques, AI—rules-
based systems, ML, neural networks, and general AI, information security
techniques), could be used to increase the potential of digital technologies in
internationalization. The combination of capabilities developed by companies and
capabilities provided by digital technologies allows companies to establish new
internationalization strategies.
The obstacles mentioned above that limit the desired internationalization,
as discussed (Bharadwaj et al., 2013; Kane, 2015; Knight, 2001; Pagani, 2013;
Ross et al., 2016; Sebastian et al., 2020; Westerman et al., 2011), the effect of
globalization on business performance through the impact of digitalization should
be considered in international entrepreneurship (Foroudi et al., 2017; Bouwman
et al., 2018).
According to Hervé et al. (2020) research has shown that companies need
to adopt “an entrepreneurial orientation by being innovative, proactive, and
risk-taking in their decisions” and be complemented with technologies that are
“creating more fluidity and nonlinearity in entrepreneurial processes and activities
across time and space” (Nambisan, 2017) to make a difference in international
markets to achieve a more successful internationalization.
208 Business Leveraged on Digital Marketing

4. Concluding Remarks
There has been an increasingly pressing need to carry out studies where
internationalization and digitalization are combined to help company managers
have a mechanism that allows them to make better decisions. Indeed, technology
evolves, and digital advancement reshapes the business world and gives rise
to new opportunities and disruptions across all industries (Schmidt & Cohen,
2014). The nature of technology, in its adoption, presents some ease of transfer
to companies, regardless of geographic location. Thus, digitization is essential
to facilitate internationalization, the creation of networks, and decision-making
processes (Coviello et al., 2017). Digitalization helps, according to Neubert
(2018), companies to efficiently identify new market opportunities in global
markets and, with this approach, these resources while developing the most
attractive markets. The possibility of exploring the benefits of large-scale
digitalization has driven companies to invest in it (Sinkovics et al., 2013).
Therefore, “to add to the increased demand from customers, companies are
facing ever tougher competition due to globalization and pressurization to go
digital before others do, seeking to survive and attain competitive advantages”
(Alves, 2020).

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 CHAPTER

11

Internal Marketing Supported by

Digital Marketing

José Duarte Santos1,2* [0000-0001-5815-4983], Bruno Sousa3 [0000-0002-8588-2422]

and Paulo Botelho Pires2 [0000-0003-3786-6783]
1
Accounting and Business School of the Polytechnic of Porto, Portugal
2
CEOS.PP, Portugal
3 Polytechnic Institute of Cavado and Ave, Portugal

1. Introduction
In a present-day strongly marked by an era of globalization and an increasingly
automated and dynamic market, organizations feel the need to gain sustainable
competitiveness. This search emphasizes reconsidering new policies and
strategies capable of, in turn, meeting the socio-economic challenges that require
the business world to adapt to market trends in constant development and change
(Qaisar & Muhamad, 2021).
In this context of great dynamism, complexity, innovation, uncertainty, and
competitiveness, the valuation of human resources (HR) has been accentuated, as
they are the main element of any process of change, which brings new concerns
to organizations, to motivate them, considering their needs and expectations, to
achieve their objectives (Brum, 2005).
An increasingly service-oriented economy requires organizations to attract
and retain customers to ensure a sustainable competitive advantage. To achieve
this goal, organizations must focus their efforts on developing and maintaining an
organizational culture that emphasizes internal customer well-being as a means
of attracting and retaining external customers (Bansal et al., 2001).
Human resource management is no longer focused exclusively on procedural
and administrative issues and has gained a new dimension by engaging with the
issues of employee satisfaction and motivation. People in organizations are now

*Corresponding author: [email protected]

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considered a key strategic element and companies are aware of the importance and
value of employees, which implies meeting their needs and consequently the needs
of the business (Rafiq & Ahmed, 1993). The company, therefore, feels the need
to devise mechanisms to keep employees motivated and satisfied (Mishra, 2018).
Internal marketing can be an opportunity to bring the brand closer to the
company, with its employees, giving the opening for internal brand advocates to
be born. It should be considered that when external marketing reflects the internal
culture, brands with a lot of potential can be created (Kotler et al., 2024).
To meet business requirements, companies feel the need to develop human
resource policies and practices that can align employees with inherent strategies
and external marketing (Mishra, 2022). Thus, it is important to invest in employees
through improvements in internal communication and promotion of mechanisms
conducive to high levels of motivation, satisfaction, and commitment, aiming to
instill and orient employees towards the customer, resulting in external customer
satisfaction and an effective market (Brown, 2021).

2. The Concept of Internal Marketing

According to Grönroos (1993), Internal Marketing (IM) is also known by the
terminology Endomarketing. Cobra (2001), mentions that ‘endo’ comes from
the Greek and means position or action inside, that is, the movement inwards.
The word Endomarketing means the marketing effort carried out internally
in companies by promoting among the people of an organization a system of
values that encourages the action of serving the customer.
The concept of internal marketing has roots in the field of services marketing
(Ahmed & Rafiq, 2002; Kotler et al., 2024; Qaisar & Muhamad, 2021). Services
marketing strategy requires not only external marketing but also internal marketing
and interactive marketing (Kotler et al., 2024).
Internal marketing focuses on the principle of employees being seen as
internal customers (Berry, 1981). It is a management philosophy (Brown, 2021;
Ferdous et al., 2013), a set of practices and strategies, and a way for organizations
to promote themselves to their employees, which is done for various reasons,
such as improving internal communication and collaboration, increasing retention
or encouraging customer-centric behaviors (Brow, 2021).
According to Silva et al. (2019), internal marketing aims, through the good
management of the organizational culture, values, and mission of the company, to
influence the behavior of its employees so that they align with the objectives of the
organization. Consequently, internal marketing involves developing, motivating,
and retaining employees through products (work) (Berry & Parasuraman, 1991).
Qaisar and Muhamad (2021) add that internal marketing is a method that
aims to improve employee and company performance and has evolved from the
micro level (frontline employees) to the macro level, now encompassing the entire
organization. Internal marketing should cut across all departments of the company,
from product development to front office staff (Bekin, 1995). This importance
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refers to the fact that a satisfied internal customer influences the external customer
and, complementarily, presents a better quality of service (Mishra, 2018).
To Kotler et al. (2024), internal marketing means that the company must
pursue “orienting and motivating customer contact employees and supporting
service employees to work as a team to provide customer satisfaction” (p. 264).
According to these authors, for companies to be customer-oriented, it is only
possible if all employees are also aligned. Thus, internal marketing must precede
the external one.
Rafiq and Ahmed (1993, p. 222) assume that IM should be defined as “a
planned effort to overcome resistance to change and to align, motivate, and
integrate employees for the effective execution of corporate and functional
strategies”. They point to three distinct but interrelated stages in the process
of developing the concept of internal marketing: internal customer motivation
and satisfaction; customer orientation; strategy implementation; and change
management.
In the first phase, internal marketing was explored as a driver of employee
satisfaction and motivation, where it was realized that employees are emotional
beings and are subject to fluctuations in performance (Ahmed & Rafiq, 2002).
Different levels of performance can give rise to variations in the quality of work
produced (Varey, 2001). From this assumption, there was a need for marketing to
develop efforts to ensure more satisfied and committed employees and to provide
a consistent and high-quality service aimed at satisfying external customers. The
focus of any company should be employee satisfaction through the integration
of quality service throughout the system.
In the customer orientation phase, the concept of Grönroos (1990)
predominates, in his perspective, internal marketing aims at an active and
coordinated marketing action, in which the entity determines the stimulus and
motivation of its employees with the objective of conscious and customer-oriented
development. Thus, the basic idea was to consider the end customer as the main
objective. It was then intended to influence behaviors and attitudes that give
greater attention to the external customer, focusing exclusively on employee
satisfaction and motivation (Ahmed & Rafiq, 2002).
In the third phase, the concept of marketing grew when it was used as a
mechanism for implementing strategy and management change and began to be
recognized as a vehicle for strategic implementation. The scope of IM extends
beyond the previous phases to employee satisfaction and motivation and customer
orientation. To George (1990), IM is a holistic management approach to integrate
multiple functions.
From another perspective of Qaisar and Muhamad (2021), there are three
types of approaches to the conceptualization of internal marketing: behavioral-
instrumental, mechanistic, and holistic. The behavioral-instrumental approach
focuses on internal programs aimed at satisfying employee needs to achieve
external goals, while the mechanistic approach incorporates the service value
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chain and the internal supplier-customer relationship to increase productivity and

customer satisfaction. The holistic approach combines the above and focuses on
integration between departments to improve organizational performance toward
achieving its external goals.
Although the concept of IM is not yet consensual, which can be seen
as dynamic, some of the main elements of IM are employee motivation and
satisfaction; customer orientation and satisfaction; cross-functional coordination
and integration; implementation of specific business or functional strategies (Rafiq
& Ahmed, 2000).
Brum (2005) states that there are factors that determine the success of an IM
program. These factors include valuing the organizational culture; using internal
marketing as an educational process; using IM tools that captivate the internal
public; providing information as the responsibility of the organization; having
transparent and truthful communication; communicating simple, short, and clear
messages; and giving importance to the visual part.
Collins and Payne (1991) categorize IM into four distinct practices: managing
human resources, determining existing market segmentation, designing internal
marketing programs, and managing employee behaviors through internal
marketing.

2.1. Employer Branding

Brands are one of the most valuable assets of a company, and although companies
direct their efforts to the development of product brands, brands are also being
used in the HR field. The application of branding principles in HR is called
employer branding (Backhaus & Tikoo, 2004).
The term employer branding was originally used by Amber and Barrow in
1996 who defined it as “the package of functional, economic and psychological
benefits provided by employment, and identified with the employing company”
(Amber & Barrow, 1996, p. 187). Employer branding involves promoting,
both outside and inside the company, a clear vision of what makes a company
attractive and desirable as an employer (Backhaus & Tikoo, 2004). According
to Saini and Jawahar (2019), employer branding has two main target audiences:
employees (current and former) and potential employees. It is the process of
creating an excellent and unique place to work and promoting it to the talent
whose knowledge and skills are needed by the organization to achieve its business
goals and objectives (Mosley & Schmidt, 2017).
Michaels et al. (2001) consider that the use of employer branding allows to
obtain a competitive advantage, representing an efficient way of attracting and
recruiting employees, since, by aligning their interests, culture, and values with
those of the company, they become witnesses of the brand in front of customers.
Employer branding should be seen as multidisciplinary, as a long-term strategy
to manage the different perceptions of different employees and business partners
regarding the organization (Sullivan, 2004).
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The creation and implementation of a strong and structured organizational

brand through employer branding promotes employee pride and satisfaction
as well as employee retention and increases productivity (Merz et al., 2009).
At the organizational level, it improves organizational culture and employee
relations, results in more efficient and cost-effective employee recruitment,
and leads to an organizational competitive advantage (Vokić et al., 2022).
Companies that follow an employer branding model seem to have a higher
retention rate, particularly among the most qualified professionals. In addition,
these companies can attract the best candidates more easily (Amber & Barrow,
1996). Thus, employer branding internally increases organizational loyalty and
commitment and externally promotes the attraction of future talented employees
(Minchington, 2010).
It is important to distinguish the concepts of employer branding and employer
brand. While employer branding describes the process of building a unique and
identifiable employer identity, the employer brand is a concept that differentiates
the organization from its competitors (Backhaus & Tikoo, 2004). The benefits that
an employer brand offers to employees are paralleled by those that a conventional
brand (product) offers to consumers. As with any brand, the value of the employer
brand depends on the value employees place on the benefits the company can
provide and its differentiation from others (Amber & Barrow, 1996).
In short, effective employer branding allows an employer to promote and
differentiate itself from its competitors, reduce the costs of acquiring potential
employees, and improve working relationships with current employees by
increasing their motivation and commitment to the organization (Suen et al., 2020).

2.2. Employer Brand Metrics

Employer branding process must be constantly updated, since the aspects valued
by employees change and are not always the same and adaptable to the changes
and challenges that the organization faces throughout its activity (Tarodo et
al., 2018). Thus, the implementation of an employer branding strategy must
include a phase of control and monitoring of the results obtained. There is no
single way to measure the return on investment of an employer brand, nor can
there be, since all organizations are different, but there are some indicators that
companies can consider, according to their interests, to know the external and
internal perception of their brand (Chaves, 2011).
To fully assess the strength of its employer brand and the effectiveness of its
talent marketing and employer branding activities, an organization can use metrics
related to marketing process efficiency and effectiveness; brand reputation and
experience; and desired behaviors and outcomes (Mosley, 2014).
The Net Promoter Score (NPS) is an indicator that was created to measure
the degree of loyalty of a consumer or customer of a brand, but given its wide
use, it has been used in other scenarios. It has a high degree of flexibility and
reliability and has therefore been used in employer branding with candidates
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in selection processes and with employees (Clavery, 2020). In this sense, and
according to the same author, the indicator eNPS (Employee Net Promoter Score)
assesses the perception of the experience and adherence to the employer brand
of candidates and employees of the organization.
The level of employee engagement is also one of the important metrics in
monitoring the success of employer branding, as when employees feel involved
in their work, they develop a sense of belonging and pride in belonging to their
company, which contributes to their level of satisfaction (Garg et al., 2018;
Moroko & Uncles, 2008). In turn, Moroko and Uncles (2008), highlight as
indicators to evaluate an employer brand, the percentage of job offers accepted;
number of candidates per function; average length of stay; average turnover; and
level of involvement of the teams.

2.3. Internal Marketing Segmentation

According to Jobber and Ellis-Chadwick (2020), as in external marketing,
customer analysis starts with internal market segmentation. The authors propose
grouping internal customers into three segments: supporters (those who stand to
gain from the change or who are dedicated to it); neutrals (those who have gains
and losses in balance); opponents (those who stand to lose from the change or
who are in opposition to it). For each segment, an internal marketing program
supported by the marketing mix should be created and adapted to each of them.
Thus, to create warmth for the internal customer and seek to retain high-
quality and valuable employees, organizations need to make use of segmentation
(Camara et al., 2007). In this sense, segmenting is the “process of grouping
employees with similar characteristics, needs, wants or tasks” (Rafiq & Ahmed,
1993, p. 227). Thus, it is to identify and, consequently, group employees according
to their similarities, characteristics to act on them and meet their needs and desires
to design the expected products and/or services, as well as to apply the other
variables of the marketing-mix (Camara et al., 2007). In this way, an auxiliary
mechanism of the organization is deduced when identifying employees given
their relevance to its success and since they have peculiarities regarding their
personality, skills, and knowledge.

2.4. Employer Value Proposition

The value proposition that the organization has for employees, known as EVP,
can be defined as an offer that the company gives to employees so that they feel
valued. The aim is to ensure that they are engaged, satisfied, and productive
(Phungula et al., 2022). In marketing, the value proposition of a brand refers to
the complete set of benefits or values based on which a brand is differentiated
and positioned, and which it promises to offer consumers to satisfy their needs
(Kotler et al., 2024). In this sense, it is possible to draw a parallel between
Employer Value Proposition (EVP) and Customer Value Proposition (Backhaus,
2016; Mosley, 2014).
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Using information about the organizational culture, management style,

qualities of current employees, current job image, and image of a product or
service quality, managers develop a concept that designates the particular and
unique value that their company offers to employees. Intended to be an actual
representation of what the employer offers its employees, the employer value
proposition provides the core message that is conveyed by the brand. Thus, the
employer brand presents an image that shows the organization as a good place
to work (Backhaus & Tikoo, 2004; Sullivan, 2004).
Employer value is the set of associations and offers provided by an
organization to its employees, in exchange for what they can offer you in terms
of their skills, abilities, and experiences (Rana et al., 2021) and is related to their
level of commitment and sense of belonging. Minchington (2010) considers it
to be the set of values provided by the organization in which employees are
compensated for the use of their skills, abilities, and experiences.
Pawar (2016) defines EVP as the comparison of rewards and benefits that
employees of an organization get as a consequence of doing their work, and
organizations construct EVP as an employer brand communication formation.
According to Bagienska (2018), the components of EVP can be grouped into
five categories, namely, rewards, opportunity, organization, work, and people.
• The area of remuneration (rewards) includes remuneration systems and non-
wage benefits, average wages per employee, average wage at the lowest level
of employment, wage at the lowest level of employment concerning minimum
wages, and retirement pensions.
• The area of development opportunities includes the types of staff training, the
number of hours of training, the ratio of trained employees, the number of
hours of training per employee, training programs for students and graduates,
and projects that enable the development of employees.
• The organization area includes information on the quality of products or
services, the position on the market, the number of new employees, activities
related to the social responsibility of a company, and the statement that the
company is a reliable and credible employer.
• The area of work includes the type of employment contracts, statements on
ensuring safety and equal opportunities for all employees, work-life balance
activities, information on vertical and horizontal promotion possibilities, and
employee turnover rate.
• In the people area, these include quality of manager, quality of co-workers,
communication and relations with co-workers, code of ethics, knowledge
sharing, and mentoring.
In turn, Backhaus and Tikoo (2004) describe employer branding as a
three-step process. First, an organization develops the value proposition using
information about the organization’s culture, qualities of current employees,
impressions about the quality of the product or service, and current employment
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image, which establishes who they are, what they expect, and what they have to
offer. The employer brand value proposition should provide a realistic image of
the organization and its culture. If the image is not clear, expectations will not be
reflected, and the employee may leave the company. Once the value proposition
is developed, the company should use it to attract employees with potential.
Internal marketing that aims to deliver on the brand promise made to candidates
is the third aspect of the process. The goal of internal marketing is to develop a
workforce committed to the goals of the organization.
Employer branding has forced organizations to look beyond compensation
to focus on aspects such as organizational culture, career management,
work-life balance, and training and development (Saylan & Eroğlu, 2019).
Nanjundeswaraswamy et al. (2022) identified seven elements that influence
employer brand development: organizational culture, training and development,
work environment, work-life balance, career development opportunities,
compensation and benefits, and corporate social responsibility. It is necessary to
identify an employer value proposition adjusted to the organizational characteristics
and the reality of the company (Pawar, 2016). The employer value proposition
should, in this sense, represent the expression of the psychological and functional
benefits promised by the organization, clearly indicating what is promised and
what is expected (Saylan & Eroğlu, 2019). EVP describes the qualities that best
define and differentiate the organization and with which it wants to be associated,
constituting the main reference point for employer branding (Mosley, 2014).

2.5. Internal Marketing Mix

The concept of an internal marketing mix is consolidated in the organization
as policies that provide internal customers with satisfaction to achieve success
(Mishra, 2018). Thus, the company must develop policies for product, price,
distribution, communication, processes, participants, and physical evidence from
an internal perspective.

2.5.1. Product
The product, in the case of Internal Marketing, refers to the employee’s job/
function, which presupposes looking at them from the employees’ point of view
and what they seek at work, thus paying attention not only to remuneration but
also to other valued factors, such as training, participation in decision-making,
level of responsibility, training opportunities, career development and work
environment (Ahmed & Rafiq, 2002; Bruin-Reynolds et al., 2015). Training and
development, as a strategic investment (Collins & Payne, 1991), is excellent in
providing such training to other employees that it subsequently enables them to
develop the necessary skills and knowledge (Mishra, 2018).
Therefore, a successful organization, before selling its services to customers,
must sell the work to its employees (Bruin-Reynolds et al., 2015).
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2.5.2. Price
The price represents everything that is requested and even demanded from
the employee in exchange for the products and/or services offered to them in
terms of changing attitudes, improving quality and productivity (Tripathy &
Mishra, 2022).
To have access to the product, and to be able to develop their function, there
are costs for employees, namely time costs, psychological costs, opportunity costs,
and energy costs (Mishra, 2022). The psychological cost is inherent in the adoption
of new working methods, projects that must be renounced, and the adoption of
new policies or practices. They are also associated with the psychological reaction
of other employees to their environment (Bruin-Reynolds et al., 2015; Rafiq &
Ahmed, 1993).
Opportunity costs focus on external opportunities and employee sacrifices in
adjusting to possible changes in the organization (Bruin-Reynolds et al., 2015;
Rafiq & Ahmed, 1993). Due to the difficulty of measuring opportunity costs,
employees tend to resist change because they consider the costs to be high, which
should be countered by companies by demonstrating the benefits and disseminating
all the necessary information to dispel fears that may exist (Ahmed & Rafiq, 2002).
This element of the marketing mix corresponds to what is required from
the internal customer (employees) in exchange for the products/services that the
organization offers, in terms of development and retention. In this element of the
marketing mix, we can highlight, for example, personal availability, common
sense, productivity, commitment, creativity, and innovation, among others (Camara
et al., 2007).

2.5.3. Distribution
Distribution, according to Bruin-Reynolds et al. (2015), refers to “the channels,
outlets or modes of distribution necessary to ensure that the internal product
or service is delivered” (p. 27). Thus, it aims to ensure that the internal
product reaches the internal customer at the right time, place, and condition, in
conjunction between culture and organizational structure.
Thus, distribution refers to the strategic and operational activities that
companies organize to deliver products to workers, i.e., jobs (Qaisar & Muhamad,
2021).

2.5.4. Communication
Internal communication can be defined as “the process responsible for the
internal exchange of information between stakeholders at all levels within the
boundaries of an organization” (Karanges, 2014, p. 333). It aims to align the
organization’s strategies and processes, making it possible for employees to
focus on services oriented to external customers (Bekin, 2004; Bernstein, 2005),
leveraging the provision of high-quality services through the trust and respect
of employees (Danso et al., 2017). It is a strategic resource in the organization’s
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links with the environment and also in the interaction with employees (Pažėraitė
& Repovienė, 2018).
For Camara et al. (2007, p. 591) “internal communication is an indispensable
element in the constructive interpretation of employees, of what the company is,
their relationship with it, and the role conferred on them”. Thus, the dissemination
of information is important in the intention to retain, motivate and create
awareness of the numerous occurrences of the organization among employees,
to prevail in a performance of excellence (Danso et al., 2017).
Communication contributes to building a relationship with employees and
promotes well-being, satisfaction, and motivation, and the organization should seek
the best way to communicate with employees (Mishra, 2018). Communication
is composed of internal advertising, personal selling of ideas, internal sales
promotion, social media (Bruin-Reynolds et al., 2015), and management incentives
and programs (Davis, 2001).
In internal communication, there are two types of channels, formal and
informal. Formal channels transmit information upward and downward, ensuring
the functioning of the company. In this sense, it is noticeable that internal channels
are the information made available by companies through channels that allow
their registration, and most of the time this record is written. Informal channels
arise in the connection between employees, without company control (Monteiro
et al., 2015). Table 1 shows the main communication channels.

2.5.5. Process
The process is about how customers receive products and how they are delivered
(Ahmed & Rafiq, 2002; Bruin et al., 2021). Thus, it emphasizes the relationship
with the customer and the respective quality of service and should therefore
raise awareness among employees through training processes (Mishra, 2018).
In the internal context, it refers to the process of creating value in employees’
organizational relationships, which can be achieved through training, structural
changes through new reporting methods, in the form of introducing new policies
(through negotiations with unions or imposed unilaterally) (Ahmed & Rafiq,
2002; Shahzad et al., 2018). Thus, the process refers to how products and/or
structural changes reach the employee through new information methods (Rafiq
& Ahmed, 1993).

2.5.6. Participants
The participants are the other elements involved in the process when delivering
and receiving the product (Bruin et al., 2021; Mishra, 2018) and with full
influence on the perceptions of the external customer (Rafiq & Ahmed, 1993).
The participants are the people who are involved in the delivery of the product,
those who receive it, and those who have some influence on the customer’s
perception (Ahmed & Rafiq, 2002; Shahzad et al., 2018).
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Table 1. Internal communication channels

Channel Usage
Intranet A broad concept that allows connecting employees
through different types of devices, allowing the
sharing of internal manuals, for example.
Enterprise social network A tool that allows employees to interact with each
other, generates many-to-many communication.
Collaborative platforms Oriented to perform certain activities (e.g., project
management).
Email Develop a direct channel for company communication
with employees.
SMS/MMS Use it for rapid communication, which tends to be
unscheduled.
Internal (corporate) TV Use this mechanism to disseminate news.
Internal radio Identical to internal TV.
Internal newspaper/internal Bring relevant internal information to employees.
magazine
Internal newsletter Can play a similar role to an internal newspaper/
magazine; tends to have less content and be less
dense.
Comic book magazine Use this tool as a ‘relaxed’ way of bringing
information to employees.
Poster Pass information to the internal public and always
update this material as something beneficial to those
who are reading it (informative and/or motivational).
Shared leadership meetings Involve employees with the coordination and other
hierarchical levels to discuss issues relevant to the
company.
Lightning meetings Hold meetings whenever it is necessary to pass on
information in which employees must be informed
quickly.
Video conferences Use technological resources to present to the internal
public.
Internal talks Present the company’s news to the internal public.
Internal conventions Involve the internal public in the presentation of
activities.
Message board Help to remember objectives, disseminate crucial
messages, and motivate employees.
Suggestion box Provide a constant channel for anonymous input from
employees.
Internal notes and circulars Make short communications, usually used to
standardize procedures, or communicate formal
situations.
Source: Adapted from Brum, 2005.
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2.5.7. Physical evidences

According to Mishra (2018), physical evidence focuses on the interaction between
the internal customer and the customer to deliver a product, i.e., evidence when
displaying the environment where the product was delivered. In this sense, two
types of evidence can be differentiated (Ahmed & Rafiq, 2002; Shahzad et al.,
2018): essential physical evidence referring to the environment in which the
product is received by internal customers; and peripheral physical evidence, i.e.,
those referring to tangible signs that the product has been delivered, such as
memos, guidelines, training manuals, and documentation in general.
In IM, documentation is important as it is an essential mechanism for
employee communication and adjustment to possible organizational change. The
documentation of policies and changes are relevant in the course of the employee
performing a certain task and consequently complying with standards, hence these
should be documented. Through standardization and compliance, it is possible to
ensure a higher level of quality of service provided by the employee to the end
customer (Rafiq & Ahmed, 1993).

2.6. Internal Digital Marketing

Internal marketing seeks to leverage existing digital channels and various
technological platforms, in a similar way to marketing, to promote the online
connection between the organization’s department and employees. Technological
tools make it possible to improve internal communication through interaction
between employees, sharing information and knowledge, and improving
involvement and a sense of belonging (Sánchez & Armengol, 2021). Technology
is, in this sense, an extremely useful tool to promote effective internal
communication, facilitating the creation of contact networks, immediate access
to any type of information and anywhere (Nalina & Panchanatham, 2016).
In the last decade, the Internet and digitalization have changed all areas of
communication, with employees using digital channels to communicate in the
workplace and their personal lives (Kovaitė et al., 2020). There is a diversity of
internal technological platforms stemming from Web 2.0 (Buchanan & Hvizdak,
2009) that show great potential in the ease and, in turn, quality when it comes
to the possibility of communicating and establishing connections between others
inherent in the organizational context (Cardon et al., 2019).
The Intranet is an internal network based on the technologies and standards
of the Internet and the World Wide Web. It uses the same techniques and
technologies as the Internet and is most often a private area that a company’s
employees can access for exclusive, internal information. This tool uses the
same communication protocols as the Internet, which allows people to access
information in a simplified and efficient way. It can be used to share company
news, policies, and new procedures it can gather content from various areas
such as Human Resources, Production, Sales and Marketing, and Finance and
Accounting (Laudon & Laudon, 2014).
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According to Berceruelo (2014), technological tools facilitate access to

information for all company employees and encourage participation in the
production and dissemination of information (for example, using the employee
portal, such as Workday). On the other hand, they encourage interaction between
all employees, active listening to team contributions, and knowledge sharing
(namely, through collaboration tools such as Microsoft Teams, Microsoft
Sharepoint, and Google Workplace; social networking platforms such as Facebook,
LinkedIn or Instagram or even social networks internal to the organization; and
learning management systems).
According to Pereira (2018), it is understood that technological tools have
some advantages, such as the ability to measure results, to ascertain the return
on investment made in internal communication; greater, more efficient, and
attractive dissemination of content; the possibility for employees to be protagonists
of information and message senders, creating a bidirectional communication
process in the company. However, the digital age also brings several challenges
to organizations, especially the promotion of open and attractive dialogue
environments between the various sectors and workers of the company, in the
sense that everyone can contribute to the construction of internal communication
content consistent with their expectations and interests.
For Hennig-Thurau et al. (2007), collaboration tools refer to software
applications or platforms designed to facilitate and improve teamwork,
communication, and articulation between individuals or groups within an
organization. These tools provide features such as real-time messaging, file
sharing, document collaboration, task management, video conferencing, and
project monitoring, allowing teams to work together efficiently and effectively
regardless of their physical location.
Email is undoubtedly one of the most widely used tools in organizations.
According to Beltrán (2007, p. 236), email “integrates the ability to communicate
clearly of a letter with the speed of a phone call”. In addition, it allows attaching
text, graphics, sound, and video files, which increases its richness. You can create
contact lists and closed working groups with whom you automatically share
information. All this means reduced costs and faster and easier responses. But on
the other hand, misuse can cause the recipient to become saturated and therefore
not read the information sent (Martínez, 2016).
Employee portals, also known as intranet portals, are digital platforms within
organizations that provide a centralized hub for employees to access relevant
information, resources, and tools. Typically, these portals include functions such
as employee directories, company news and updates, internal communication
channels, document repositories, and self-service applications (Davenport, 2002).
One of the channels that can be monetized by internal marketing is the
blog, that is, the organization can create an internal blog, also called a corporate
blog which is an online space that belongs to the company and is intended for
the publication of content related to the entity, and where everyone can be part
(Jiménez-Marín et al., 2019). Internal communication tools are managed by the
228 Business Leveraged on Digital Marketing

management of the organization or by the internal communication area of the

organization. They can be used by departments or work teams and include news
about the organization, current topics, news, proposals, opinions, etc.
An internal Wiki is an online encyclopedia used to transfer and consolidate
knowledge within the organization (Martínez, 2016) through a series of pages that
can be edited by any user, i.e., they are collaborative web spaces. Any member
of a company, in this case, can edit the content (Jiménez-Marín et al., 2019).
The use of social networks is an environment where employees can interact
with each other, either through content related to the company or through other
content, and perhaps more personal. On this platform, information related to the
experience in the company can be posted, thus allowing effective communication
that favors business communication in organizations (Jiménez-Marín et al., 2019).
Some organizations develop their enterprise social networks to engage employees
or use internal social media platforms provided by vendors such as Yammer or
Facebook at Work. In social media platforms, mobile apps seem to have taken
the lead and are preferred by many organizations, mainly due to convenience,
personalization, higher smartphone penetration, and an increasingly mobile
workforce. With the help of the social analytics tools that accompany social
technology, strategic communication professionals can gain insights to drive
behavior change (Ewing et al., 2019).
The digital forum is also an option and can be used to exchange
communications between colleagues in a company or to ask questions about which
they have doubts, thus allowing everyone to participate in the discussion and
collaboratively resolve any type of issue that may arise. It is a tool that allows one
to know the opinions of all members of the company who can participate freely.
It is used, for example, to extract opinions on certain topics or suggestions. It
can also become a leisure space used by employees (Jiménez-Marín et al., 2019).
But if the administrator does not filter the messages before they are published,
this can lead to a lack of control over the content of the forum (Martínez, 2016).
The possibility for two or more people, who are geographically separated,
to connect is a major advance for organizations, especially if this connection
involves an exchange of video and audio information. Videoconferencing is a tool
for visually connecting people who are separated by a considerable distance. The
use of videoconferencing saves time, money, and travel to the organization, as
otherwise, meetings would involve the travel of employees, with the consequent
monetary cost and fatigue (Esparcia, 2008).
The use of certain Apps in the context of internal marketing can facilitate
formal as well as non-formal communication. For example, through WhatsApp,
it is easy to arrange a shift change or a request for a day off. The instant and
efficient exchange of more or less personal messages tends to influence the way
we work and communicate (Jiménez-Marín et al., 2019).
Training and development are essential components of internal marketing
(Ahmed & Rafiq, 2002; Bruin-Reynolds et al., 2015; Mishra, 2018), and digital
marketing can play a significant role in this area. E-learning platforms and
Internal Marketing Supported by Digital Marketing 229

webinars enable businesses to provide continuous learning opportunities to

employees, helping them enhance their skills and stay updated with industry
trends. This investment in employee growth enhances job satisfaction and reduces
turnover. Learning Management Systems (LMS) are software applications or
online platforms designed to manage and deliver educational and training content
within an organization or educational institution. LMS platforms provide a
centralized system for creating, organizing, distributing, and controlling various
types of learning materials such as courses, modules, assessments, and resources.
They often include features such as content creation, learner enrolment, progress
tracking, communication tools, and reporting capabilities.
Employee performance management platforms are software applications or
online platforms that organizations use to effectively measure, track, and manage
employee performance. These platforms provide tools and functionalities to set
performance objectives, conduct performance appraisals, track progress, provide
feedback, and identify areas for improvement (Aguinis, 2019).
Actively seeking and acting upon employee feedback demonstrates that the
company values employee opinions, reinforcing a positive internal culture. Digital
marketing techniques can also be applied internally to gather employee feedback
through surveys. Online survey tools enable businesses to collect valuable insights
from their workforce, helping them identify areas for improvement and gauge
employee satisfaction. Survey tools are software applications or online platforms
designed to create, administer and analyze surveys or questionnaires. These
solutions offer a range of functionalities to help with survey design, distribution,
data collection, and analysis. They typically include options to create various types
of questions, customize the look of the survey, distribute surveys through various
channels (such as email or web links), collect and sort responses, and generate
reports or visualizations of survey data (Dillman et al., 2014).
Additionally, digital marketing’s gamification elements can be applied to
internal marketing to enhance employee engagement. Lastly, digital marketing
can play a vital role in promoting diversity and inclusion within organizations.

3. Conclusions
Internal marketing is a strategic approach within a company aimed at fostering
a positive and engaging work environment while aligning employees with the
organization’s goals and values. It involves utilizing marketing principles to
cultivate a sense of belonging, motivation, and loyalty among the workforce.
This internal focus enables employees to become brand ambassadors and deliver
a consistent message about the company’s identity and values.
Employer branding plays a pivotal role in internal marketing. It involves
the strategic development of a company’s reputation and image as an employer
of choice. By highlighting the unique aspects of the organization and its culture,
employer branding aims to attract, engage, and retain top talent. This brand
230 Business Leveraged on Digital Marketing

proposition is carefully crafted to resonate with current and potential employees,

encouraging them to become committed advocates of the company.
Internal segmentation is another aspect of internal marketing, where
employees are divided into distinct groups based on shared characteristics, needs,
and preferences. This segmentation helps tailor internal marketing efforts to meet
the specific requirements of different employee segments, ultimately increasing
their satisfaction and productivity.
Employer branding proposition refers to the unique and compelling offer made
to employees in exchange for their skills, time, and dedication. It encompasses
a combination of tangible benefits, such as competitive salaries and benefits, as
well as intangible factors, such as a positive work culture, growth opportunities,
and a sense of purpose.
To evaluate the effectiveness of the employer branding proposition, various
metrics are applied. These metrics may include employee satisfaction and
engagement surveys, retention rates, talent acquisition cost, and the number of
referrals made by employees. These indicators provide valuable insights into the
impact of the internal marketing efforts and the overall employer branding strategy.
The marketing mix is a fundamental concept in internal marketing, as it
outlines the set of tools and tactics employed to promote the employer branding
proposition. This mix typically includes elements such as communication channels
(e.g., internal newsletters, social media platforms), training and development
programs, recognition and rewards systems, and opportunities for internal mobility.
With the increasing significance of digitalization, internal digital marketing
has become essential in modern internal marketing strategies. It involves
leveraging digital channels and technologies to communicate with employees
effectively. This may include using internal social media platforms, online learning
portals, virtual town halls, and mobile applications to keep employees informed,
engaged, and connected.
So, internal marketing, employer branding, internal segmentation, employer
branding proposition, metrics, marketing mix, and internal digital marketing are
interconnected components that collectively contribute to creating a motivated,
committed, and enthusiastic workforce, aligned with the company’s mission
and values. This, in turn, enhances the organization’s reputation, fosters talent
retention, and strengthens its position as an employer of choice in the competitive
job market.

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 CHAPTER

12

Tourism and Digital Marketing

Lauren A. Siegel1* [0000-0003-2117-8492], Hyerhim Kim2 [0000-0001-6800-6183]

and Ryan Yung1 [0000-0003-0706-8019]
1 University of Greenwich, UK
2 University of Essex, UK

1. Introduction
The evolution of communication has brought about a shift in marketing from
a production-focused approach to one that prioritizes building relationships.
This shift has been fuelled by technological advancements such as the Internet,
information and communication technology (ICT) tools, and the Web revolution,
which have enabled the digital marketing of products and services in the
hospitality and tourism sectors (Kumar, 2021). With the tourism industry being
information-intensive, consumers are now active co-creators of digital content
across various media platforms. This has led to a shift in power from service
providers to consumers, who can attract and influence others through shared
experiences on digital platforms.
To reach these consumers, firms in the hospitality and tourism industries are
adopting a digital marketing mix that includes strategies such as social media
marketing, search engine optimization (SEO), content marketing, influencer
marketing, and affiliate marketing. These channels enable organizations to target
and position their products and services in the highly segmented niche markets
that exist within tourism (Sert, 2017).
Lagiewski and Kesgin (2017) define digital marketing within tourism as
the use of digital technologies such as the internet, mobile devices, and global
positioning systems as key instruments in marketing visitor attractions. Digital
advertising is crucial in the tourism and hospitality industry because it enables
companies to reach and engage with customers in a cost-effective and personalized

*Corresponding author: [email protected]

236 Business Leveraged on Digital Marketing

way (Huang et al., 2018). Digital marketing enables tourism and hospitality
companies to leverage various digital channels, including social media, search
engines, email, and mobile devices, to create targeted and measurable marketing
campaigns.
In tourism, the ultimate goal for digital marketers is to provide information to
potential tourists, allowing them to have a vicarious experience of the destination
or attraction. This means that marketers aim for potential tourists to imagine
themselves enjoying the destinations. Marketing in tourism can be difficult because
of the intangible nature of the product. In the past, tourism had to rely on travel
agencies and traditional print as marketing channels.

2. Digital Marketing Strategies in Tourism: What

and Why?
Digital marketing strategies refer to the various tactics and techniques that
businesses employ to promote their products or services through digital channels
such as the Internet, social media, search engines, mobile devices, and other digital
technologies. Digital promotional strategies typically involve a combination of
tactics, such as search engine optimization (SEO), content marketing, social
media marketing, email marketing, pay-per-click (PPC) advertising, and
other forms of digital advertising. SEO involves optimizing a website to rank
higher on search engine results pages (SERPs), while social media marketing
involves using social media platforms to promote products and services. Content
marketing involves creating and sharing valuable content such as blog posts,
videos, and infographics to attract and engage customers, while email marketing
involves sending targeted emails to customers to promote goods and services
which has proven to be an effective strategy with a high return on investment.
Finally, online advertising involves placing ads on websites and social media
platforms to reach a wider audience. Digital marketing is increasingly seen as
more effective than traditional methods, successfully allowing businesses to
engage with their target audience, build brand awareness, drive website traffic,
and achieve their marketing goals (Bala et al., 2018).
To use digital marketing effectively in the tourism industry, organizations must
have a clear digital advertising strategy that aligns with their business goals and
objectives. They should identify their target audience, create compelling content,
optimize their website for search engines, and use social media to engage with
customers. They should also measure the effectiveness of their digital marketing
campaigns regularly and use the data collected to optimize their strategies
continuously. They can use this information to tailor their products and services
to meet customer expectations, ultimately leading to customer satisfaction and
loyalty, and digital marketing allows organizations to collect and analyze customer
data, which can help them to understand customer needs and preferences better.
Using digital marketing effectively can increase their brand awareness,
Tourism and Digital Marketing 237

enhance customer experience, and improve their competitive advantage. Tourism

industries have realized the importance of delivering exceptional digital customer
experiences to attract and retain customers in the competitive market. Digital
marketing strategies have revolutionized the way tourism industries not only
interact with their customers and improve customer engagement, satisfaction,
and loyalty (Sigala, 2020), but also reduce costs, and increase revenue (Buhalis
& Law, 2008).

3. Leisure Travel Market Segments and Niche

Marketing
Segmenting the leisure travel markets is unique because of the highly diverse
range of product offerings. This includes varied destinations from megacities
like Tokyo all the way to extremely rural homestays in places like Peru or
Papua New Guinea, along with a range of activities that can be done in every
destination from gastronomy experiences, adventure sports, agricultural tourism,
and cultural tours. Indeed, touristy is one of the world’s largest industries and
thus, there are significant opportunities to segment markets. The overall language
of tourism contains a wide number of registers, each one of them addressing a
certain type of potential tourist with specific interests (Dann, 1996). The types of
special interest tourism are suitable for niche marketing (Sert, 2017).
The term ‘niche’ is borrowed from marketing segmentation, and in tourism
contexts, describes consumer-motivating factors that are driven by bespoke
and specific experiences (Stone, 2005). Niche tourism marketing is especially
conducive to economic development and for small to medium businesses to
find customers in an intensely competitive environment. Therefore, destination
marketers should advertise tourism types that will meet differentiated and high-
level expectations, desires, and preferences to increase their share in the tourism
market. For the most effective strategy, it is advised to determine areas that can
be serviced in the best way by identifying the most appropriate market segment
by destination and focusing marketing budgets directly on that particular segment
(Sert, 2017).
Morgan et al. (2002) described the positioning of New Zealand as a niche
marketing destination with the “100% Pure New Zealand” brand campaign that
was launched to address the changes in the travel market as previously, New
Zealand had been focused on domestic tourism and neighboring countries as
inbound visitors. As the travel market became increasingly globalized, there was a
demand for a shift in New Zealand’s strategy to remain competitive on the world
stage. Morgan et al. (2002) outline the first step in repositioning a destination
brand as establishing “durable, reputable, and communicable core values” (p. 344).
Thus, aligning with New Zealand’s objective to be seen as an undiscovered and
untouched land, the “100% Pure” campaign was born to target potential visitors
seeking adventure and unspoiled landscapes. The success of this drive as one of
238 Business Leveraged on Digital Marketing

the highest-ever performing travel campaigns (Murphy, 2020) is an indicator that

destinations, especially those with limited marketing budgets, can squeeze the
maximum value by relying on targeted and effective niche branding strategies.

4. Destination Marketing Organizations

A seminal theory utilized in the context of destination marketing is destination
image. Destination image is defined as the perceived image of a destination that
a potential tourist holds in their mind. This image is constructed through the
tourist’s cognitive (what they know) and affective (how they feel) perceptions
towards the destination. In other words, the image of the destination is made
up of what a tourist thinks they know about and they feel about it. These two
constructs then influence the cognitive component of a destination’s image
– the individual’s actual conduct or intention to (re)visit and recommend the
destination to others (Agapito et al., 2013).
Considering a destination as a product, Destination Marketing Organizations
(DMOs) are usually the bodies mostly responsible for promoting it and upholding
its optimal or desired image. Of course, DMOs also carry the ultimate intention
to promote the destination towards economic benefits (Fyall & Garrod, 2019). It
would be impossible to address tourism marketing without the context of a DMO.
Segmentation in tourism marketing can exist by considering marketing efforts
from the destination’s side, in which many DMOs are responsible for attracting
visitors and ensuring their brand is kept consistent. Corak and Zivoder (2017)
point out that DMOs are also responsible not only for promoting a shared vision
for a destination but also champions of digital conversion.
Digital tools can help to enhance DMOs’ marketing efforts in these areas and
to reduce advertising costs (Angeloni & Rossi, 2020; Magano & Cunha, 2020).
The content available on DMO websites has improved in recent years and can
therefore provide a useful and efficient experience for travel consumers when
visiting DMO websites. This is not always applicable to every DMO, but the
trend is increasing with the democratization of technology (Buhalis & O’Connor,
2005). Notably, Morrison (2013) suggests that it can be difficult for DMOs to
have direct control over the tourism product in their destination, and additionally,
there can be a danger that tourism product stakeholders might launch their
own marketing strategy that is inconsistent with the DMOs. Introducing easily
accessible, straightforward, and inexpensive technological tools will facilitate
business collaboration and knowledge sharing among stakeholders which will
eventually result in a more personalized experience on the visitor’s side (Abidin
et al., 2019).

5. The Traveler Consumer Journey

The consumer journey has always been prominent in travel and tourism. The
traveler consumer journey, or consumer decision journey is defined as the
Tourism and Digital Marketing 239

dynamic customer experience with an organization over time through various

touchpoints (Lemon & Verhoef, 2016). Generally, the consumer has three main
phases: pre-purchase, purchase, and post-purchase; with the purchase and post-
purchase phases then informing the pre-purchase phase in an ongoing cyclical
process. In more specific detail, the traveler consumer journey can be broken
down into four stages: consideration or inspiration; evaluation or information;
booking; and experience & recommendation (Court et al., 2009; Varkaris &
Neuhofer, 2017). Figure 1 illustrates the importance and prevalence of digital
innovations across the traveler consumer journey.

Figure 1. Digital touchpoints across the traveler consumer journey.

5.1. Inspire
The inspiration phase of the traveler consumer journey includes how travelers
become aware of the travel destinations that they wish to visit. Technology has
had a profound effect on this part of the process as in the past, most travel
destinations were either widely circulated in the media or were shared among
family and friends via word-of-mouth (McCabe & Stokoe, 2010). However,
now with the advent and standardization of digital and social media, there is
an exorbitant amount more information available to inspire the future travels of
those connected with the traveler, before their search begins for more specific
information to book.
240 Business Leveraged on Digital Marketing

5.2. Inform
In the inform or evaluation stage, to decide on the final decision what to purchase,
consumers add and subtract brands from a group of favorites under consideration.
In this stage, consumers start to search for information, evaluating alternatives
based on the information that they can obtain about the destination, attraction,
or hotel (Varkaris & Neuhofer, 2017). The perceived image of destinations
or attractions continues to be formed in this stage, often now through the use
of social platforms (i.e., reviews and vlogs), search engines, and increasingly
chatbots.

5.3. Book
Once a trip is booked, many companies and organizations will now have access
to the preliminary itineraries of many travelers. This presents a ripe opportunity
to push notifications through various platforms like transactional emails or
mobile applications to target specific activities onsite like tours or museums or
“upselling” opportunities like accommodation or flight upgrades. The consumer
journey for tourism is unique in this way.

5.4. Experience & Recommend

Once the travel experience has begun, modern travelers immediately will want
to share their experience in real-time (Wang et al., 2016). Sharing is also a
part of the post-trip experience (Kim & Fesenmaier, 2017). Travelers will also
want to post reviews through User Generated Content (UGC) applications
like Yelp and Tripadvisor to either recommend or (more often) give a bad
review to a hospitality or tourism business that they utilized while on their trip
(Lu & Stepchenkova, 2015). It has been cited that most tourists will rely on
UGC to plan their travel itineraries, which then starts the traveler consumer
journey again.

6. Delivering Digital Customer Experiences

Effective digital customer experiences are crucial for companies seeking to
improve customer satisfaction and loyalty. Verhoef, Reinartz, and Krafft (2010)
define delivering digital customer experiences as providing customers with
personalized, relevant, and timely information across all digital channels. To
achieve this, companies must first understand their customers’ needs, preferences,
and behaviors by collecting and analyzing data from various digital channels,
such as social media, websites, and mobile apps. Additionally, they must ensure
that their digital channels are user-friendly, accessible, and responsive, by
designing websites and mobile apps that are easy to navigate and optimized for
different devices and screen sizes (Manco, 2022). Finally, they must provide
customers with consistent and seamless experiences across all digital channels
Tourism and Digital Marketing 241

by integrating data and processes to ensure that customers receive the same level
of service and support, regardless of the channel they use.
A number of studies have explored the impact of digital marketing strategy
on delivering digital customer experiences. De Keyser et al. (2015) argue that
companies that adopt a data-driven approach to digital marketing are more likely
to deliver personalized and relevant digital customer experiences. They suggest
that collecting and analyzing customer data from various digital channels can
enable companies to create a more complete view of their customers, allowing
them to deliver more targeted and effective digital marketing campaigns.
Similarly, Ailawadi et al. (2015) found that companies that prioritize customer
needs and preferences in their digital marketing strategies are more likely to
deliver experiences that meet or exceed customer expectations. In the context of
the tourism and hospitality industry, digital marketing has become increasingly
important for businesses to enhance their brand, increase customer engagement,
and drive revenue growth. As technology continues to advance, the use of digital
marketing in this industry is expected to continue to grow, providing new business
models and opportunities for companies in the sector.

6.1. Digital Marketing Tools and Strategies in Tourism

Digital marketing is an essential part of modern-day business, with companies
increasingly using digital channels to reach wider audiences and improve their
brand image. The meaning of “digital marketing” has evolved from referring
solely to the promotion of goods and services through digital channels to
encompassing the broader process of utilizing digital technologies to attract and
engage customers, enhance brand awareness, maintain customer loyalty, and
boost sales (Kannan & Li, 2017).
Essentially, digital tourism marketers strive to disseminate rich information
(cognitive) as well as content that evokes strong positive feelings (affective)
from potential tourists towards their destinations or attractions. Innovations in
technology, as well as a growing understanding of shifting cultural landscapes,
have theoretically allowed destination marketers to expand the digital marketing
process with tourism 4.0 techniques that would otherwise not be possible with
traditional marketing approaches.
With the rising numbers of outgoing visitors in emerging regions like the
MENA region, and East and Southeast Asia (Dodds & Butler, 2019), the ability
for travel and tourism providers to be able to reach diverse audiences is crucial.
Therefore, utilizing digital marketing methods creates greater access to notably
hard-to-reach consumers in terms of finding, scrutinizing, and choosing the
relevant content for decisive behavior (Mathew & Soliman, 2021).
Two main technologies have changed the scope of digital marketing in
tourism: smartphones and social networking sites (SNSs). It is through these
channels that users are now able to create their own travel content (images,
videos, stories, recommendations, etc.) and upload it directly online to be shared
as far-reaching as desired, instantly.
242 Business Leveraged on Digital Marketing

Social networking sites like Instagram, Facebook, WeChat, and TikTok

have also had an immense impact on digital marketing in tourism. SNSs create
innovative opportunities for marketers hoping to reach new and relevant audiences.
Within travel and tourism, SNSs have become a source of inspiration, envy,
electronic word-of-mouth, and social support (Boley et al., 2018; Hajli et al.,
2017; Hudson & Thal, 2013; Kim & Tussyadiah, 2013).

6.2. Blogging/Storytelling
Digital age storytelling and blogging have become popular marketing tools and
have significant implications for the tourism industry in the digital age. These
tools enable tourism organizations to create engaging and personalized content
that resonates with their tourists.
The use of digital technology has transformed the way tourists consume and
share travel stories (Bassano et al., 2019). Tourists are looking for personalized
and authentic experiences that they can relate to. Digital age storytelling enables
tourism organizations to create content using various digital channels such as
social media, websites, and mobile apps to tell stories that capture the essence
of a destination and create emotional connections with their audience. By using
immersive and interactive storytelling techniques, tourism organizations can
transport their audience to the destination and create a desire to visit (Munar &
Jacobsen, 2014).
Blogging is also an effective way to increase search engine visibility and drive
traffic to a tourism organization’s website (Buhalis & Law, 2008). By creating
relevant and high-quality content, tourism organizations can not only improve
their search engine rankings and increase their visibility to potential tourists but
also establish themselves as thought leaders and build brand credibility, increasing
brand awareness and loyalty among tourists (Gretzel & Yoo, 2008).
Digital age storytelling and blogging can be used to enhance the overall
customer experience and improve tourists’ satisfaction with a destination and
their intention to revisit (Lund et al., 2018). Tourism organizations can foster
customer loyalty and enrich the customer experience by offering helpful insights
and insider tips. By effectively utilizing digital-age storytelling and blogging,
tourism organizations can also engage with their target audience and drive tourism
growth. It is important to not only consider the promotional message, but also the
delivery of the message. Storytelling has been a successful method of connecting
with audiences that may result in potential visitors. Through storytelling, people
can be encouraged to tell their own stories and experiences. Across the centuries,
people have always told each other stories about the places they are from, the
places they live in, and the places they have visited (Bassano et al., 2019).

6.3. Travel Influencers

Although the influencer industry began in fashion marketing, it has become
essential in many diverse industries including travel and tourism. Online
Tourism and Digital Marketing 243

influencers usually define themselves by a certain niche and differ from what is
known as “traditional celebrities” because they have created a somewhat organic
following by posting content online or through their social networks. Research
has shown that many users find influencers to be more relatable and trustworthy
than traditional celebrities (Jin et al., 2018); therefore, acquiring their footprint
in travel and tourism marketing is highly coveted.
Many destinations have chosen to capitalize on the trend and work with
influencers or travel bloggers to promote their destinations. Indeed, travel
influencers have been found to form a critical part of destination branding strategy
(Glover, 2009). The online personalities will usually promote certain niche
aspects of the destination that are cohesive with the influencers’ personal brand
image. Hence, it is important that destinations and DMOs choose to work with
influencers whose personal brand characteristics align with that of the destination
itself. Additionally considered when choosing with whom to work will include
the number of followers, types of created content, communication style, and
reliability (Uzunoǧlu & Misci Kip, 2014).
Influencers will share content with their following or online audiences across
several platforms including both social networks like Instagram, TikTok, or
WeChat, and their personal blog or website. Working with influencers can be a
unique opportunity to appear on multiple channels to an otherwise hard-to-reach
audience (Khamis et al., 2017).
There are several studied cases where influencers significantly helped to
diversify the marketing of travel destinations. Serra et al. (2021) describe the
use of influencers to ‘rebrand’ the well-known party destination of Benidorm,
Spain, to reflect a more sustainable and natural image. Their study demonstrates
that influencer marketing can provide destinations with an opportunity to regain
control over their branding and promotion while taking advantage of the power of
eWOM. The study also emphasizes the careful selection of appropriate influencers
that reflect the destination’s strategic vision and planning.
Chatzigeorgiou (2020) studied how influencers helped to promote more
rural destinations to tourists visiting Greece. This was especially beneficial to the
economies in these more rural areas as they are shifting away from agriculture
to more diversified economies (Sigala, 2017). Furthermore, the factors that
contribute to the success of social media marketing in travel and tourism are its
flexibility and transience. The ability for influencers to create publishable content
from virtually anywhere allows for the promotion of rural and overlooked places
within a destination. In this way, social media has been credited with helping
to alleviate scenarios of overtourism by redistributing crowds (Gretzel, 2019).

6.4. User Generated Content

User-generated content (UGC) is described as creative content that is published
on publicly accessible websites and is created without a direct link to monetary
profit or commercial interest (Soylemez, 2021). UGC websites can vary from
244 Business Leveraged on Digital Marketing

virtual communities (Lonely Planet), consumer reviews (Yelp), microblogging

platforms (Tumblr), as well as social networks (Facebook), media sharing tools
(YouTube), and wikis (Wikitravel; Xiang & Gretzel, 2010). UGC is also widely
used by consumers of hospitality and tourism services as a source for making
decisions (Lu & Stepchenkova, 2015). This type of content, in a marketing
context, can be used for the delivery of promotional materials, reaching new
customers, information distribution, as well as inviting customer engagement,
rather than for publishing user-relevant material and responding to comments of
current and potential customers (Leung et al., 2013). Online consumer accounts
are perceived as more likely to contain up-to-date, informative, and reliable
information that is rich in detail and highly relevant (Gretzel & Yoo, 2008).
Recommendation systems are especially useful in tourism contexts. Because
of the more recent global distribution of mobile devices, content can be created
from virtually anywhere and, furthermore, even as the experience is unfolding
(Lu & Stepchenkova, 2015).

6.5. Geotagging
One of the aspects of social media promotion that is especially salient in
promoting destinations is the act of ‘geotagging’. A geotag is an electronic tag
that assigns a geographic location to a photograph or video posted to social
media. This allows a very specific pinpointing of exact locations where the
same experiences can be sought out by viewers. When considering that the
experience is the product for consumption within travel and tourism contexts,
it is significant when a potential consumer can be directed to an exact location
wherein that same experience can be obtained and is available directly online
where the inspiration to visit and take part in that experience happens. Siegel
et al. (2022) refer to the “circle of self-presentation” that describes the circular
nature of social media users who see travel images or videos circulating on social
media and then travel to the same places as they’ve seen online to photograph
themselves for their own eventual posts to social media. The geotag is a key
element within this cycle.

6.6. Personalization
A crucial aspect of digital marketing is the use of digital marketing strategies
to create effective digital customer experiences that can improve customer
satisfaction and loyalty. Today consumers with an individualistic approach will
demand individualized products and services because of intending to differentiate
themselves (Sert, 2017). Digital marketing differs from traditional marketing
in its speed of communication and offers a wider variety of communication
channels, insights into consumer preferences, and the ability to receive feedback
and track market patterns. Digital marketing is more interactive, engaging, and
conversational than traditional marketing, empowering both consumers and
marketers. Personalization is a significant advantage of digital marketing, allowing
Tourism and Digital Marketing 245

for faster and more cost-effective customization of personal communications.

The shift from mass communication to personalized communication has enabled
marketers to segment, target, and position their products in specific niche markets.
Web 2.0 offers read-write-and-publish features on digital media, allowing for the
creation of relationships, and replacing push strategies and mass marketing with
pull strategies and individual targeting. Consumers are now active participants
on digital media platforms, creating content and collaborating rather than just
being passive consumers.
With digital marketing, businesses can tailor their messaging and content
to the specific needs and preferences of their target audience. This level of
personalization helps businesses build stronger relationships with customers,
which is crucial in the tourism and hospitality industry.

6.7. Artificial Intelligence and Big Data

Driving toward personalization, user-generated content, recommendations,
content marketing, and consumer behavior on digital platforms has resulted
in the increasing importance of big data and artificial intelligence (AI). AI is
defined by IBM (n.d.) as a field that encompasses machine learning and deep
learning, leveraging computers and robust datasets, to enable problem-solving
and decision-making capabilities like the human mind. AI and machine learning,
forecasted to grow to 1.5 trillion USD by 2030 (Statista, 2022), are leveraged
to analyze big data sources like social networking services, to then predict and
recommend context-appropriate content or relevant information dynamically
(del Carmen Rodríguez-Hernández & Ilarri, 2021). Its use in digital tourism
marketing is no different. M Live by Marriott International (Marriott International
News Center, 2016) tracks conversations, trends, global performance, marketing
campaigns, and brand reputation across social platforms in real-time, identifying
opportunities for Marriott to engage consumers with its 19 brands and nearly
4,500 properties worldwide. One example is the technology picking up a story
about a New Zealand backpacker who was traveling the world with his favorite
Lego figurines and documenting their adventures on social media. Marriott
then hosted The Lego Backpacker, resulting in content for the brand that was
then amplified through Lego’s social channels. Through the use of geo-fencing
M Live is also able to uncover untagged social conversations that guests are
having at Marriott properties and identifies opportunities to create a better guest
experience. For example, the M Live team discovered a tweet that a guest
posted from the Domes of Elounda Autograph Collection Hotel in Greece. M
Live created an on-property breakfast moment and also surprised the guest with
Marriott Rewards points leading him to share his excitement on Twitter and
create user-generated content for the Autograph Collection brand and hotel. As
the capabilities of AI systems continue to improve, case studies like the above
will become increasingly automated (Grundner & Neuhofer, 2021).
An increasingly ubiquitous utilization of AI systems in digital tourism
marketing is the use of chatbots. Voice assistants and chatbots, powered by natural
246 Business Leveraged on Digital Marketing

language processing, allow organizations to have 24/7 automated concierges

readily available to assist with decision-making on flights, hotels, tour packages,
opening hours, attractions, etc. (Tussyadiah & Miller, 2019). When combined with
the availability of user data, these chatbots will be able to leverage self-iterating
recommender systems to personalize travel suggestions based on user interest, user
sentiment, and temporal dynamics captured through their social media or mobile
activity (Zheng et al., 2018). In other words, the entire consumer decision-making
process could be automated by AI, leading to a theoretically seamless, efficient,
convenient, and hyper-personalized implementation for tourists (Gupta et al.,
2022). Recommender systems will inspire and prompt users at the right times, with
the right potential products and services, using advertising and marketing material
that is personalized for specific users. Self-iterating algorithms on social platforms
like TikTok and Instagram are continually shaped through user engagement to
increasingly push and recommend content based on existing and projected user
interests. Chatbots will be able to interact with and inform users of any potential
inquiries, before taking them through the booking process seamlessly. Potential
for novels or surprises will be prompted to attractions or service providers, based
on the user profile (i.e., honeymoons, birthdays, anniversaries), to encourage
user-generated earned content by tourists. Before the cycle starts again, as that
information feeds into bigger databases, ready to start the next inspire phase.

7. Future of Digital Marketing in Tourism

Extended Realities (XR) is an umbrella term for immersive technologies that
allow users to introduce synthetic elements into their sensory experiences. Two
commonly known examples are augmented reality (AR) and virtual reality (VR).
AR allows users to overlay computer-generated graphics onto the real world
(Rauschnabel, 2021). With AR, what the user sees is still largely corporeal,
enhanced by digital assets often through the use of smartphone cameras and
screens or projected holograms. Due to the nature of the technology, AR is often
used on-site, usually through experiential marketing. Examples of this include
multisensory experiences that can transform entire rooms into wine-tasting
cellars (Martins et al., 2017). This allows DMOs to take entire experiences to
travel and tourism trade shows, giving potential travelers a preview of what they
can expect at the actual attractions. Increasing gamification of AR also allows
destination marketers to introduce features that take advantage of geolocation
and mobile marketing capabilities to offer experiences akin to Pokemon GO,
with time-sensitive content marketing approaches.
On the other end of the spectrum, is VR, which allows users to enter virtual
experiences that are commonly fully computer generated, as well as fully
interactive (Yung et al., 2021). Since COVID-19, VR destination marketing
has gained exponential interest and adoption due to the technology’s ability
to allow users to visualize and experience spatial depth – crucial to enriching
users’ vicarious experiences. Users put on a head-mounted VR device and get
Tourism and Digital Marketing 247

an immersive, engaging preview of a destination or attraction. Accordingly, the

3-Dimensional nature of VR advances the richness of information that marketers
can provide when compared to traditional mediums like video or images. Research
has also shown that VR can positively influence emotional responses to marketing
content (Yung et al., 2021). Unsurprisingly, tourism boards across the globe
including Germany, Ireland, Maldives, and Japan have launched VR experiences;
with Japan-based company First Air, which offers VR flight experiences, and have
reported a 50% increase in bookings since the pandemic lockdowns (Debusmann
Jr., 2020).
The next frontier for VR destination marketing is the impending onset of
metaverses and virtual worlds. Metaverses combine multiple existing components
from different platforms and contents to conceive a world beyond the real world.
Metaverses often comprise virtual worlds with their own virtual goods, the use of
VR, multi-user virtual spaces with avatars, forms of social media, self-contained
virtual economies, and persistent network infrastructures where the virtual world
continues to ‘live’ even after the user has exited (Joy et al., 2022; Kim, 2021).
As of 2023, key metaverses that are available to the general population include
Fortnite, Meta Horizons, Decentraland, Nvidia Omniverse, Roblox, VRChat,
and Sansar. Metaverses will allow DMOs to create entire interactive virtual
environments for potential tourists to immerse themselves in. Future research will
continue to reveal if the metaverses themselves will start to become the primary
attractions and experiences, the point at which VR marketing will reduce instead
of increase tourists’ intention to visit the corporeal attractions.

8. Degrowth, Demarketing, and Deinfluencing

Although this chapter is arranged to review digital marketing and its
intersections within tourism, it would be amiss to evade the importance of
sustainable and responsible marketing efforts in this vein, and the importance
of the aforementioned practices in the future of digital marketing for travel.
Just before the COVID-19 pandemic, ample attention turned to the issue of
tourism reaching its limits in many destinations around the world (Higgins-
Desboilles et al., 2019). Many residential communities were overwhelmed and
there was a discernible deterioration in the quality of life for local people in
tourist destinations (Dodds & Butler, 2019). Thus, the conversation shifted to
consider how it has been the practice for many DMOs to focus on marketing
over the proper management of the tourism subsystem. The terms, ‘degrowth’,
‘demarketing’, and more recently, ‘deinfluencing’ emerged to describe the efforts
to counteract this phenomenon (Higgins-Desboilles et al., 2019; Hall & Wood,
2021; Milano et al., 2019).
Many of the issues described throughout this chapter must also now be
considered within this lens of responsibility and social duty, especially within the
business of influencer marketing. Serra et al. (2021) studied the use of social media
influencers to set a new standard of practices and found that, indeed, influencers
248 Business Leveraged on Digital Marketing

can have an impact in promoting increased awareness of sustainable tourism

practices in destinations experiencing saturation. These standards emphasize
damage control and more sustainable consumption patterns. Furthermore, many
destinations are now employing fresh and unusual response strategies to attract
more responsible visitors-as-consumers including campaigns that encourage
visitors to put their phones away and see destinations in a digital-free manner, as
well as marketing campaigns that exclusively target ‘responsible’ travelers (Siegel
et al., 2023). Future marketing endeavors on behalf of DMOs will continue to
gain importance in the coming years.

9. Conclusion
In conclusion, digital marketing is vital in the tourism and hospitality industry
because it enables companies to reach and engage with customers effectively.
Travel and tourism is especially conducive to digital marketing as it is inherently
a hypermobile product. Therefore, mobile applications available through
smartphones are one of the most salient marketing channels for travelers of
various market segments.
A new traveler consumer journey due to advancements in technology has
emerged wherein digital touchpoints are utilized during each stage of the travel
process. Companies within the travel and tourism space can use various digital
channels to create targeted and personalized marketing campaigns that improve
customer experience and loyalty. By using digital marketing effectively, tourism
and hospitality companies can increase their brand awareness, reduce costs, and
improve their competitive advantage in the market. Furthermore, DMOs can help
to facilitate business collaboration and knowledge-sharing among stakeholders
for an optimized destination marketing strategy.
Finally, harnessing technologies, such as those described in this chapter, such
as AI, personalization, UGC, and social networking platforms, will be essential
to success as the nature of the consumer experience continues to evolve into a
[sustainable and responsible] future.

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 Part 5
Digital Marketing Expanded
 CHAPTER

13

Digital Marketing in Nonprofit

Organizations: Conceptual Background
and Recommendations for Practitioners

Inês Veiga Pereira1* [0000-0002-7906-612X], Beatriz Casais2 [0000-0002-7626-0509]

and Inês Mendes3 [0009-0005-5616-6880]
1 Accounting and Business School of the Polytechnic of Porto, Portugal
2 University of Minho, School of Economics and Management, Portugal
3
IPAM, Portugal

1. Introduction
Nonprofit Organizations (NPOs) play an important role in society. Not searching
for profits, they offer services that often replace the government or private
organizations and/or create programs to lead to behavior change that may help
improve society (Andreasen, 2006). Existing in a competitive context, NPOs and
for-profits need to develop marketing strategies to improve their sustainability,
inform different publics how can they contribute to the organization, and help
the ones in need (Aldashey & Verdier, 2009).
Society’s pressure for companies to perform responsibly has been shown
in the growth of corporate social responsibility (CSR) strategies by companies.
NPOs are also required to perform adequately in the three dimensions of CSR:
environmental, social, and economic (Chwilkowska-Kubala et al., 2021), despite
the differences for for-profits.
In this context, NPOs need to understand how they can use digital marketing
strategies and tools to reach their targets more effectively, without harming their
image making the best of their scarce resources. This chapter analysis the use
of digital marketing, in particular the website, social marketing networks, and
digital endorsers by NPOs so that they reflect on recommendations and apply
them when implementing their strategies.
*Corresponding author: [email protected]
256 Digital Marketing Expanded

The chapter starts by explaining the different concepts around NPOs, NPOs
marketing, social marketing, CSR, and digital marketing. After, digital marketing
strategies: website, search engine optimization (SEO), social networks, and digital
endorsers are pointed out. It ends with some of the challenges for NPOs and
conclusions and recommendations.

2. Nonprofit Organizations and Marketing

Concepts
Nonprofit organizations (NPOs) are social agents with special importance, not
only solving problems in unprotected communities but also developing projects
to inform and educate public opinion.
According to Lienert (2009), Public Sector Nonprofit Institutions (NPIs)
are legal or social entities created to produce goods and services, but which
cannot be a source of income, profit, or other financial gain for the units that
established, controlled, or finance them.1 The main international organizations
use the term (NPOs) to talk about private entities, which are supported by both
private donations and public subsidies. They are not for profit because they don’t
focus on obtaining and sharing profit. NPOs have been working at several different
levels. Philips and Philips (2011) identified the following categories served by
NPOs: healthcare, civic, education, environmental, community service, public
service, cultural or hobby, religious, education, and youth.
According to the UN NPI Handbook2 to consider an organization an NPO,
it has to follow these criteria:
• It must be an organized institution, with goals, structure, and activities that last
in time.
• It cannot look for profit.
• It should not depend on the government, although it can be one of the main
sources of funds.
• It has to control its activities, it cannot be controlled by any other external
entity.
• The time and money donations to the organization must be voluntary.
NPOs use marketing due to their need to obtain funds to support their
activities and to attract more volunteers. As the number of NPOs has increased,
the number of volunteers is more distributed amongst those NPOs. So, it is
important, for NPOs to understand how they can get more volunteers, and also
how they can keep the ones they already have.

1 https://www.imf.org/external/pubs/ft/wp/2009/wp09122.pdf, last consultation in 15th

May 2014.
2 http://ccss.jhu.edu/wp-content/uploads/downloads/2011/09/UNHB_DevelopmentTest-

ing_packet.pdf, last consultation in 15th May 2014.

Digital Marketing in Nonprofit Organizations 257

2.1. NPOs Marketing

Marketing plays a key role in the life of third-sector organizations (Andreasen
& Kotler, 2003). Although the goals of NPOs are not concerned with earning a
profit, but rather supporting the people most in need (Yazdanifard, Massoumian &
Karimi, 2013), these types of organizations have different marketing objectives,
as creating awareness to seek support from fundraising companies and also
attract and retain volunteers (Blery et al., 2010). When organizations are not
recognized, donors do not contribute and support their causes (Yee & Yazdanifard,
2015). Thus, it is important to develop a marketing plan to create awareness and
increase contributions to non-governmental organizations (NGOs). However,
many NGOs show a lack of in-depth knowledge about marketing principles
and focus too much on sales and advertising efforts (Dolnicar & Lazarevski,
2009). Social organizations may be reluctant to adopt marketing strategies and
tools because they believe that it aims to manipulate people and is therefore not
compatible with their honorable work and mission and do not want to implement
advertising methods because they see them as manipulation (Blery et al., 2010).
On the other hand, many NPOs have started to implement marketing strategies
that contribute to their livelihood, help the people who need it most, and inform
those who do not know how they can support the associations’ causes (Aldashev
& Verdier, 2009). Foreman (2005) explored how marketing can be used to
derive significant benefits from philanthropic activities. Marketing in third-sector
organizations involves the assessment of customer (beneficiary) needs and the
efficient and consistent delivery of appropriate services and products, generating
revenue through donations (Chad et al., 2014). In this sense, it is natural that some
institutions deepen their understanding of marketing and, consequently, start to
perform better in the market since this is the main contribution of promotional
thinking to third-sector organizations (Bandyopadhyay & Ray, 2019).

2.2. Social Marketing

Social marketing reflects “the use of marketing principles and techniques to
influence a target audience to voluntarily accept, reject, modify, or abandon a
behavior for the benefit of individuals, groups, or society as a whole” (Kotler
et al., 2017, p. 5). It pertains to the utilization of marketing principles and
approaches to promote or improve social change. These may include public
health challenges, injury prevention (Smith, 2006), environmental problems
(Maibach, 1993), transportation demand management (McGovern, 2005), or
other needs in the social domain. Social marketers aim to bring about voluntary
behavior change through the adaptation of commercial marketing practices
and the use of extreme intervention methods. Therefore, social marketing can
be used to refer to a wide spectrum of processes and/or activities involved in
establishing societal-level changes or individual changes.
Andreasen (2006) believes that “…greater social welfare comes about
only through individual behaviors” (p. 5). Social marketing may or may not be
258 Digital Marketing Expanded

concerned with the broader concepts involved in social change. Although, the
success of social marketing may be related to the support and involvement of
a wider community, as an advocacy group utilizing social marketing for social
change may only be effective if the group can appeal to the social values of
society to gain support for the proposed changes (Wymer, 2004). It is also relevant
to understand that social change may be discussed from different perspectives:
individual (Hirsch et al., 2007), political (Hadjimichalis & Hudson, 2007; Hall
& Taplin, 2007), economic (Seabrooke, 2007), or behavioral perspective (Stead
et al., 2007).
Brenan and Binney (2008) argue that social marketing interventions may
consciously or unconsciously contribute to an unsustainable future as a result of
these changes. Take the example of a program that, justifiably, promotes a better
living standard, that requires an increased use of environmental resources. In
social marketing terms, social marketers are often seeking to develop durable
(sustainable) social change. Despite that, and due to differences in countries’
development around the globe, social marketing has evolved differently, sometimes
resulting in different emphases on what social marketing thinking and practice
entails. To achieve their goals, social marketers use the principles of marketing to
promote behavioral change in the target group (Kotler & Zaltman, 1971). Further,
they combine product, price, place, and promotion to set a social marketing
strategy that helps NPOs achieve their goals more effectively. As for-profits, social
marketing programs use segmentation strategies, communication channels, various
clues in the message, and various innovative means to capture the mind-share of
the consumers (Dhir et al., 2019; Sindhani et al., 2019). Also, as with any social
change, there may be unintended consequences (Fry & Polonsky, 2004) and
these changes may be contributing to the sustainability dilemma. Understanding
these impacts may be identified and minimized by a consistent social marketing
strategy and benefits
In the literature, cause-related marketing and social marketing are prominently
studied in the context of corporate social responsibility (Brønn & Vrioni, 2001;
Elving, 2013; Xiaoli & Kwangjun, 2007), therefore this concept will be discussed
in Section 2.4.

2.3. NPOs and Relationship Marketing

Relationship marketing and, more particularly, the creation and maintenance
of donor relationships are the key factors in retaining loyal partners (Bennett,
2013). To develop an effective relational marketing strategy, NPOs should
determine the importance of stakeholders to the organization, augment their
current marketing practices through each of these stakeholders and evaluate their
effectiveness (Knox & Gruar, 2007). Casais and Santos (2018) conducted a study
to analyze corporate motivations and the conditions that may lead companies
to make long-term donations. Consequently, they concluded that NPOs should
develop a relational marketing plan to engage socially responsible partners in
the organization’s practices. Accordingly, other authors claim that focusing
Digital Marketing in Nonprofit Organizations 259

on relational marketing (developing and maintaining relationships rather than

transactions) is the best way to meet the needs of social organizations as they
operate in a competitive environment (Brennan & Brady, 1999; MacMillan et al.,
2005). NPOs should implement a relationship marketing strategy to obtain donor
loyalty since many donations are punctual and do not work in a long-term period,
because firms prefer to diversify the causes and institutions supported (Casais &
Santos, 2018). The quality of applied relational marketing is directly related to
the characteristics of NPOs, as it influences partner donations, may cause them
to increase, and affects the achievement of organizational and beneficiary goals
(Brennan & Brady, 1999). Third-sector organizations should apply a strategy of
transparency with their stakeholders since this will bring advantages such as a
greater rapprochement between the two parties. By increasing the brand value of
the NPO stakeholder awareness, participation and affinity also increase, leading
to greater loyalty and improvement in the efficiency and effectiveness of the
organization (Knox & Gruar, 2007). This is due to the regularity of information
that is provided to stakeholders, as new knowledge about the organization is
processed more readily when communicated consistently. Thus, it follows that
developing a stakeholder loyalty strategy based on communication will lead to
growth in the organization’s brand value and productivity.
Trust and commitment are the factors that lead to loyalty in the relationship
between donors and organizations (Barra et al., 2018). In this sense, the authors
seek to understand in their study which components of loyalty are relevant
to the third-sector. Further, relational connectedness, trust, and commitment
are consequences of message and support satisfaction (Obaze et al., 2021).
Communication is mentioned as a variable influencing donor trust and commitment
with an impact on the loyalty relationship (Knox & Gruar, 2007).

2.4. Corporate Social Responsibility (CSR) and NPOs

CSR does not have the same meaning for everyone, since for some it means legal
responsibility, for others it can be understood as socially responsible behavior on
an ethical level, and for others, it can mean responsibilities in general (Votaw,
1972). The concept of CSR has been very focused on for-profits and the way they
perform to benefit their stakeholders and society in general. CSR is understood
as how companies act in the social system concerning certain issues beyond the
economic, technical, and legal ones. The company must evaluate the effect of
its decisions to obtain social benefits beyond the usual economic gains of the
company (Davis, 1973).
Dahlsrud (2008) analyzed 37 definitions proposed in the literature and grouped
the definitions found into five different dimensions, including environmental,
social, economic, voluntariness, and stakeholder. The study concludes that
all dimensions are important in the definition of CSR and that at least three
dimensions are almost always included in a random definition of CSR, thus
making it impossible to separate the definitions in different schools of thought.
260 Digital Marketing Expanded

Martínez et al. (2014) studied the influence of CSR on brand image and
loyalty in the hotel industry. For this purpose, the author measured three
dimensions of CSR, including the environmental, social, and economic
dimensions. Chwilkowska-Kubala et al. (2021) identified the most common CSR
practices suggested by the literature, concerning each of the three dimensions:
• Environmental: Assessing the environmental impact of activities, introducing
energy and water-saving activities, developing renewable energy sources,
choosing environmentally friendly suppliers, encouraging clients to care for
the natural environment, implementing waste and pollution control systems,
striving to reduce the environmental impact of energy production/transmission,
creating activities that care for the natural environment.
• Social: Assessment of the impact of activities undertaken by the enterprise on
the local society, cooperation on social and charity projects, promotion of the
development of the local community, protection of heritage, ensuring work-
family balance of employees, ensuring a high level of work safety, care for
the development of the employees’ high competencies, and care for the proper
motivation of employees, conducting open cooperation with stakeholders.
• Economic: Offering a competitive level of remuneration, treating customers and
suppliers fairly, shaping good relations with responsible suppliers, providing
high-quality products, carrying out cost-effective operations, investing in new
technologies, providing a high level of reliability of energy supplies, managing
financial risk.
If these three dimensions are considered, we may include NPOs in two
different aspects. First of all, as potential partners of for-profits as they may
help companies improve their social dimension performance. Further, in some
situations, if we consider environmental NPOs, partnering with these organizations
may help companies to be more aware of the environmental impact of their choices
and have a deeper understanding of the alternatives. The other aspect that may be
considered is the social responsibility of NPOs themselves. Being organizations
that do not aim for profit but improve society, these three dimensions must also
be present in their choices. Being environmentally responsible by including
activities that reduce their environmental impact; improving local communities,
considering the well-being of their employees and their development; and carrying
out cost-effective operations, treating customers and suppliers fairly, and offering a
competitive level of remuneration are some of the practices NPOs must perform.
Most NPOs perform these activities, but many of them don’t communicate these
to the public. Considering that understanding NPOs’ activities and how they are
performing in a socially responsible manner may increase their credibility, which
may improve satisfaction and brand image (Araújo et al., 2023).

3. Digital Marketing and NPOs

Given the importance of early and rapid transaction development, digital
marketing as a concept highlights a set of profile processes that embrace all the
Digital Marketing in Nonprofit Organizations 261

digital channels available to promote a product or service or to build a digital

brand (Kotler, 2017). According to the analysis and evaluation of the specialists,
there is a difference between digital marketing and marketing on the internet
marked out and materialized in the planning and successful development of the
business. Internet marketing is therefore a subsystem of digital marketing, the
most important component of it.
To talk about digital marketing implies referring that social marketing is
closely related to intimacy and psychological closeness (Short et al., 1976), which
served as the foundation for the first operational concept of social existence.
According to this definition, social presence places a strong emphasis on how
people perceive social integration through social media platforms by thinking
about how social interaction can help customers by socially recognizing them
through the mediated interface. Other scholars argue that social presence is a
communication channel for specifying how people interact and socialize and
defining the extent of awareness in the medium-technologized interactions
synchronously (Gao & Li, 2019; Ye et al., 2020). The digital presence of the web,
and of others, and the virtual presence of interaction with sellers are the three
elements that constitute social presence (Lu et al., 2016). The ability of a website
to evoke human interaction and warmth in its users is referred to as its social
presence. The social presence of others refers to how other social individuals exist
and respond to users in online communities. The degree to which customers use
the online platform to perceive a service provider’s personal traits and sensitivity
is the social presence of others (Biocca et al., 2003; Ye et al., 2020).
The idea of interaction related to social presence shows that NPOs may use
several tools to communicate with their targets, in particular, websites and social
networks. Both tools will be addressed in the next sections.

3.1. Websites
Websites are one of the digital tools organizations may use to communicate
with their audiences. Regarding their usefulness as a digital marketing tool,
they are not often studied individually (Ahrens & Coyle, 2011). However, their
importance in the digital world is something that will be difficult to replace
with any other tool, considering that the website is the first place where
organizations are presented to potential customers (Oliveira, 2016). Authors
such as Michailidou et al. (2008) investigated the strong relationship between
the perceived complexity, aesthetic appearance, and readability of websites and
their structural schematic organization (layout). They concluded that the visual
complexity of a layout negatively affects users’ perception.
Loiacono et al. (2002) proposed a website quality measurement (Webqual)
in 12 core dimensions: informational fit-to-task; tailored communications;
trust; response time; ease of understanding; intuitive operations; visual appeal;
innovativeness; emotional appeal; consistent image; on-line completeness; and
relative advantage. In Table 1, the area of concern definition and recommended
actions suggested by the authors are summarized.
262 Digital Marketing Expanded

Table 1. Webqual measures and recommended action

(adapted from Loiacono et al., 2002)

Area of concerns Definition Recommended action

Ease of understanding Easy to read and Design pages that the public can
understand. easily read and understand.
Intuitive operations Easy to operate and Develop an intuitive navigation
navigate. system that is easy to learn and
master.
Informational fit-to- The information is Undertake market research to
task adequate for the target. determine what information
consumers want on the website.
Tailored Communication adapted Support consumer interaction via
communications to the consumer’s needs. the Web site and the capability to
receive tailored information.
Trust Secure communication Adopt and promote security and
and observance of privacy policies and procedures
information privacy. that make customers feel secure in
dealing with the company.
Response time Time to get a response Have sufficient hardware and
after a request or an communications capacity to meet
interaction with a Web peak demand and avoid large
site. graphics.
Visual appeal The aesthetics of a Web Use colors, graphics, and text that
site. are pleasing to the consumer’s eye,
and avoid cluttered pages.
Innovativeness The creativity and Use a creative and differentiating
uniqueness of a website. approach to the Web site.
Emotional appeal The emotional effect of Design the Web site to provoke a
using the website and positive consumer experience.
intensity of involvement.
On-line completeness Allowing all or most Allow customers to conduct
necessary transactions important business functions over
to be completed online the Web.
(e.g., purchasing over the
website).
Relative advantage Equivalent or better Make the Web site just as easy, if
than other means of not easier, for consumers to use
interacting with the than other forms of interacting
company. with the company.
Consistent image The website does not Design the Web site to reflect the
create dissonance for company’s image.
the user by an image in
compatibility with that
projected by the firm
through other media.
Digital Marketing in Nonprofit Organizations 263

Ali (2016), Wang et al. (2015), and Wang and Law (2019) identified website
usability, its functionality, security and privacy as constructs to measure its quality.
Moura (2016) adapted parameters identified by Cebi (2013) to develop website
parameters such as usability, visual aspects, technical adequacy, content, security,
communication, and prestige. In seeking to develop a guide for the construction
of a website for cooperatives, Pereira and Araújo (2023) analyzed the following
criteria for cooperative websites (Table 2).

Table 2. Website structure (Pereira & Araújo, 2023)

Criteria Description
Easy to use The user should be able to intuitively identify where the information
they want to find is and adapt to its availability.
Layout Clear, clean, and intuitive visual presentation.
Graphic quality Good quality images (photos, videos, icons) of the cooperative, its
activity, and its products. Brand identity color is relevant.
Readability Legible font with good contrast against the background.
Fast Fast and fluid website.
Content Content appropriate to the theme of the website, with relevant
information provided that meets the user’s expectations.
Contact Provide contact form(s) to facilitate contact.
Mobile adapted The visual structure of the website adapts to devices such as
smartphones and tablets.

These criteria have also been used in other research which focuses on NPOs
(Baggio et al., 2011; Law et al., 2010) and its analysis leads to improving its
content. Huang and Ku (2016) have also analyzed the relationship between website
content and the creation of a nonprofit brand image. A brand image is formed
from three types of brand associations: functional, symbolic, and experiential.
For NPOs, these functional associations refer to the characteristics, mission, and
tangible qualities of the organization (Michel & Rieunier, 2012), as they are
linked to utilitarian benefits. The desire to solve problems related to the consumer,
and to satisfy externally generated consumption needs are within functional
brand associations, so tangible qualities and mission can easily be linked to this
aspect. Symbolic associations are abstract cognitions that translate the values of
the organization, personality traits associated with the brand, and even emotions
(Michel & Rieunier, 2012). How can this be reflected in NPOs’ brand image? If
a symbolic association is related to fulfilling internally generated needs for self-
enhancement, role position, group membership, and ego-identification, activities
such as volunteering or donating can play an important role. An experiential
association is defined as the desire for products or services that provide sensory
pleasure, variety, and cognitive stimulation (Park et al., 1986). Analogous to the
264 Digital Marketing Expanded

brand image of a for-profit organization, the brand image of an NPO may affect
donor attitudes and influence donation behavior.
Huang and Ku (2016) analyzed the relationship between the information type
and image. The former includes objective and service; operational management;
communication and consultation; online services and convenience and contact.
Image is focused on usefulness; dynamism; efficiency; and affect. Further, they
have also tried to understand the relationship between image and intention to
donate time and money. The main conclusions of their research are:
• Information items regarding operational management, communication, and
consultation will produce the image of usefulness, and this image will enhance
viewers’ intentions to donate both money and time.
• Information items regarding objectives and service, and online service can
help generate the image of dynamism, which will increase the intention to
donate time.
• Website usability is positively related to the image of efficiency, and website
attractiveness is positively related to the image of dynamism.
These conclusions are relevant for NPOs managers as they should focus on
improving the attractiveness of the website, as the image of dynamism increases
the intention to donate. Since websites are an important way of contacting
different stakeholders, special attention must be given to their development and
content inclusion.
When in NPOs CSR is concerned, website information may focus on two
different aspects: the development of CSR activities by the NPO itself and
attracting for-profits as partners. Pereira and Araújo (2023) analyzed Cooperatives’
websites and concluded that only a few of them include clearly the CSR activities
they develop. If the public doesn’t have complete information about what
organizations have done and how they are contributing to society, it makes it
harder for them to relate with them. Individuals and organizations benefit from
website quality and information inclusion as e-trust increases with website quality
increase (Amin et al., 2021). As, according to the same authors e-trust increases
with social presence, another aspect that can be considered is social network
presence for NPOs, which will be discussed in the next section.

3.2. Search Engine Optimization (SEO)

For NPOs, SEO is a crucial component of digital marketing. NPOs must
implement effective SEO strategies to boost their own visibility, draw more
traffic to their websites, and ultimately increase donations and support for
their causes as a result of the growing number of organizations competing for
attention online. NPOs can boost their website’s visibility in search results, draw
more visitors, and ultimately increase donations and support their cause (Iqbal et
al., 2022) by optimizing their content and website search engines. According to
research, the majority of online experiences start with a search engine, making
SEO an essential part of any NPOs’ digital marketing strategy (Cho et al., 2014).
Digital Marketing in Nonprofit Organizations 265

To assess the effectiveness of their SEO strategies, there are four metrics
NPOs should use. One of them is organic traffic, which refers to the number of
visitors to a website without any paid advertising (Younan et al., 2020). These
visits may come from a search using keywords that are related to the services
the NPO delivers or its social marketing goals, therefore, understanding the main
key terms for potential public search is fundamental. This leads us to another
metric: keyword ranking. According to Khan and Mahmood (2018), a website’s
position in search results for particular terms and phrases related to the mission
and cause of the NPO is referred to as its keyword ranking. Another important
metric is conversion rate, which is the percentage of website visitors who actually
do something like donate money or subscribe to a new program. Finally, NPOs
can track backlink quality and quantity, as a website’s search engine rankings
and online visibility can be significantly improved with high-quality backlinks
from trustworthy websites (Younan et al., 2020).
By understanding which keywords are most relevant for its public, how the
NPO performs in keyword ranking, what makes the target subscribe to their social
programs or purchase products or services, and which links lead to more and better
traffic, NPOs may implement their SEO strategies to improve their SEO results.

3.3. Social Media Marketing for NPOs

Technological advancement stands out as an opportunity for third-sector
organizations since it allows them to increase fundraising through online
campaigns (Yee & Yazdanifard, 2015). Thus, the rapid development of social
networks and, consequently, digital marketing has shown great potential, as
they allow for greater engagement with the public. Kirby and Marsden (2006)
define social media marketing as representing all marketing techniques that are
deployed online to stimulate users to talk positively about a brand, a company, a
product, or a service. From the above it can be noted that the concept of social
media marketing is in simple terms, marketing through social media platforms.
Social media has become one of the main tools for organizations to communicate
with their public and will remain the main form of communication for NPOs’
future (Milla et al., 2018).
For social organizations, this is a crucial aspect, as they can increase brand
recognition, have greater donor support, advocate their mission, and create a
closer relationship with existing and potential volunteers, as 70% of internet users
use social networks, but NPOs are not knowing how to take advantage of the
opportunities that these platforms can provide (Mittal & Bhattacharjee, 2017).
These authors developed a digital marketing strategy for organizations, and their
main goal was to improve the performance of organizations’ digital campaigns.
They concluded the following points:
• It is important to identify the social network where the audience spends most
of their time.
• The content should be appropriate to clearly convey the intended message to
266 Digital Marketing Expanded

the audience. Thus, the message must be simple to capture people’s attention,
raise awareness, and sensitize the public.
• The social organization should start working on storytelling, to make its story
known and to create an emotional connection with the public. The use of
quality images and videos is also a way to convey a powerful message, which
brings out the sentimental side of the public.
• Audience segmentation is important as it influences the language in which the
information should be published. Thus, if the target audience is global, the
most appropriate language is English; however, if the organization operates
locally, the language should be that of the region.
• Canva software is a tool that allows social organizations to create attractive
and informative content for the public. This type of content is one of the most
important steps for a successful digital campaign.
Digital marketing in NPOs enables the fostering of relationships which leads
to greater involvement in the causes of the institution, as well as promotion and
greater support for them (Selander & Javernpaa, 2016). In the same line of thought,
Waters et al. (2009) state that relationships are the basis of social media, so third-
sector organizations should carefully plan their publications and present interactive
and dynamic profiles since interactivity plays an important role in developing
online relationships with stakeholders. Selander and Javernpaa (2016) add that
despite the interest that digital platforms generate in the public, the benefits can
be short-lived, so there should be consistency in the communication of social
organizations’ profiles. It is noticeable that digital marketing creates opportunities
for social organizations to gain visibility and attract resources for fundraising.
Wyllie et al. (2016) state that digital platforms represent an important means
for third-sector organizations to identify their stakeholders and consequently
strengthen relationships with them.
Galiano-Coronil and MierTerán-Franco (2019) conducted a study aimed
at defining the profiles of non-governmental development organizations and
analyzing their interaction rates with the public. These authors agree that social
media offers advantages to third-sector organizations because they are inexpensive
and do not require too much experience, and argue that they are a significant
way to connect and communicate with donors, volunteers, and partners. The
type of messages most posted by organizations do not always coincide with
communications that have the greatest impact on the public. This aspect was
found in Facebook and Twitter, since the social organizations under study act
as an information service rather than encouraging interaction with the public.
Concerning the use of hashtags, third-sector organizations do not use them
correctly, not encouraging the public to react and interact with the publications
(Galiano-Coronil & MierTerán-Franco, 2019). However, Hyoryung and Kannan
(2014) argue that the use of hashtags allows users who are interested in a particular
topic to search for that specific topic and get more detailed information about it.
In this sense, it is perceptible that the use of tags is important as it allows users
Digital Marketing in Nonprofit Organizations 267

to express on social media their thoughts and interests. Thus, organizations can
search for groups of people based on tags, and donors and volunteers can use
online devices and platforms to find organizations (Hyoryung & Kannan, 2014).
Literature has identified some of the key success factors for social media
marketing for NPOs. According to Soboleva et al. (2017), the success of social
media strategy depends on the ability for the marketers to choose the right
platforms, meaning, the ones its stakeholders prefer. This must be set on the
development of a social media policy, which should guide the staff towards what
should and should not be done on the platforms, as it will help the NPO achieve
its goals as messages are clear and consistent (Jones et al., 2012). Another success
factor is the quality of communication. NPOs should update their social media
accounts with relevant content, using videos and pictures about their activities, and
thanking donors and volunteers for their support (Rosnerova & Hraskova, 2021).
Therefore, they should include content that attracts their targets and involves them
with the organization (Chary, 2014). Another important factor is related to the
use of several platforms. A multichannel strategy may be adequate when NPOs
can reach different audiences in different channels. Despite that, there may be
differences in the language, messages, and style, consistency amongst them but
positioning them is very important, so that these messages do not contradict each
other (Jones et al., 2012).
Most social organizations and companies use the internet to promote their
products or services since they can reach their goals and create word-of-mouth
propaganda more easily. In this sense, hiring digital influencers, celebrities, and
bloggers allows these institutions to propagate their ideas, missions, and causes
(de los Salmones et al., 2013; Yee & Yazdanifard, 2015). From the same point
of view, Mayer and Vambery (2008) state that the credibility of a celebrity is the
key factor, as this is the only way to influence the public by making them aware
of the organization’s mission. In this way, the message is effectively conveyed
and the marketing strategy is successfully implemented. The importance of
influencers is also pointed out because it was confirmed that the information
generates great impact and is received by a larger number of people. Thus, they
can involve more individuals in the causes of the organization (Galiano-Coronil
& MierTerán-Franco, 2019). This finding is interesting since it has already
been mentioned in Knox and Gruar (2007) study, where the authors found that
influencers are considered definitive stakeholders who have a great potential to
establish funding agreements.
Finally, Galiano-Coronil and MierTerán-Franco (2019) argue that it is
important for NPOs to reflect on the type of publications they should publish to
provoke reactions in the public that lead to behaviors that impact the organization.
This also means that the publications should contain consistent and continuous
information on how to donate, so that this action is seen as something simple and
easy, provoking a reaction in the public. Nelson (2019) also states that the online
presence of NPOs, based on interaction and dialogue, produces positive results,
268 Digital Marketing Expanded

such as the development of new donors. This is because users are increasingly
exposed to conversations and interactions that capture their attention.

3.4. Digital Endorsers to Enhance Marketing of NPOs

Celebrity endorsement and digital influence are very effective in marketing
communication (Conde & Casais, 2023), since celebrities are easily recognized
and respected and digital influencers adapt messages to persuade consumers in
the digital environment (Nascimento et al., 2020). However, in the context of
NPOs, such endorsement usually does not have monetary compensation and does
not significantly increase celebrities’ job opportunities, and their engagement in
social campaigns may result from different motivations such as the closeness
with the cause or the social project or simply altruism (Casais & Proença,
2012). However, digital influencers have a different context. Their persuasion
power does not come from their activity in mass media or show business, but
they become important and recognizable brands precisely on social media, an
environment that is no longer a place of leisure, but their professional career. In
this case, the personality should already have a large number of loyal followers,
generating large financial gains for companies and therefore advertising brands
regularly. In this sense, these endorsers may also connect to social causes and
non-profit campaigns not exclusively as an altruistic activity, but also as part of
their positioning, becoming personal brands with activism, supporting causes,
and influencing behavior change (Ballestar & Sainz, 2020).

3.5. Challenges for NPOs

Businesses can now effectively reach their target market and make money
thanks to digital marketing. However, due to several obstacles, NPOs have
found it difficult to adopt effective digital marketing strategies. NPOs face many
hurdles when implementing digital marketing. First of all, the importance of
ethics. This may limit their use of certain digital marketing techniques such
as target advertising. This becomes a challenge because NPOs need to balance
their promotional objectives with ethical considerations and they may find
it challenging. Further, NPOs must maintain a high level of authenticity and
trustworthiness in their online communications.
One of the main obstacles for NPOs to adopt digital marketing is the lack
of resources because it requires an abundance of resources, including skilled
staff, technology, and budget allocation, which is why NPOs frequently run
on tight budgets (Jindra et al., 2020). Due to their limited resources, smaller
NPOs will have difficulty in implementing digital marketing strategies. The lack
of expertise is another issue that NPOs face. The technical expertise needed
to carry out digital advertising campaigns may not be available to NPOs as
most of them lack knowledge about it (Gong et al., 2022). Besides a lack of
knowledge and resources is the difficulty of NPOs to evaluate the effectiveness
Digital Marketing in Nonprofit Organizations 269

of digital marketing campaigns (Hou & Lampe, 2015). So additional metrics like
engagement, donations, and awareness should be considered.
Finally, competition also plays a relevant role in this context. Due to their
limited reach when compared to for-profits, NPOs may find it difficult to reach
their target through digital marketing (Kannan, 2017). Further, NPOs also compete
with other NPOs, and they also try to attract their target market’s attention when
you talk about digital attention. So, it may be challenging to stand out and interact
with potential supporters (Zahay, 2021).
Despite all these challenges, digital marketing is still an important tool for
NPOs. The acknowledgment of these may help NPOs to set a digital marketing
strategy and, therefore, mechanisms to overcome them.

4. Conclusions and Recommendations for NPOs

It is important to present recommendations for NPOs to achieve the loyalty of
their business partners through digital platforms. Organizations should present
a clear and coherent communication and image, which transmit trust and
transparency. However, it is noted that when the NPO does not maintain regular
communication and, in general, the organization’s partners do not subscribe to
the newsletter. Thus, it would be beneficial for organizations to promote, in its
digital platforms, the subscription of the newsletter and send a quarterly email
with news of the NPO and its projects, to maintain its presence in the mind of
that partner, who despite having contributed only once with the organization, can
always do it again, since he had a previous positive experience and feedback.
NPOs should make the effort to communicate directly with their partners,
especially those who collaborated only once with the organization. The
communication should focus on all the projects and not only the one to which
they contributed, to captivate partners to participate in different donations. In a
way, it is to say that donors don’t need to diversify the organizations to which
they donate because they find in the same organization the way to do it through
the most diversified projects.
Understanding NPOs’ activities and how they are performing in a socially
responsible manner may increase their credibility, which may improve satisfaction
and Brand image. Websites are very important tools for NPOs as they can control
the information and its quality. When building a website, NPOs should focus on
12 core quality dimensions: informational fit-to-task; tailored communications;
trust; response time; ease of understanding; intuitive operations; visual appeal;
innovativeness; emotional appeal; consistent image; online completeness; and
relative advantage. Several NPOs’ websites lack information about CSR activities.
Therefore, website information may focus on the development of CSR activities by
the NPO itself and attracting for-profits as partners. When the public has complete
information about what organizations have done and how they are contributing
to society, it improves the relationship and trust.
270 Digital Marketing Expanded

NPOs should also use SEO strategies, as they have been shown to help
increase visibility, draw more traffic to their websites, and ultimately increase
donations and support for their causes. SEO performance may be enhanced
if relevant keywords, organic traffic, keyword ranking, and conversion rate
are tracked and analyzed. Understanding which are the relevant keywords
for the targets, from where visitors come, may help NPOs have a better
online performance and increase the target subscription of social programs,
increase donations, or purchase products or services offered to the market by
these organizations.
To have a more regular and personalized communication with the partners it
would be interesting to send a personal email congratulating on some objective
achieved or some commemorative date. Still, in personalized communication,
storytelling is pointed out, making use of YouTube. In this sense, it would be
pertinent for organizations to produce more personal content for Facebook and
Instagram, which are the social networks where partners follow the NPO the most.
Thus, publications that demonstrate the history of organizations, their daily life,
and the faces behind the NGO can promote empathy in the partner companies and
the creation of a personal bond. It is also important to produce current content
in real-time, through stories on Instagram and Facebook, identifying the events
or the partner company that donated.
Thus, to establish a long-term relationship with NPO partners, it is important
to have regular communication, whether through email or social networks, as well
as sharing beliefs and values that lead to trust in the third-sector organization and,
consequently, to a commitment to it. To foster a long-term relationship with partner
companies, it is important to understand their stories, projects, and motivations
for donating, renew knowledge about the companies, and present new social
responsibility actions that may be interesting to the surrounding parties. The key
element is to maintain regular, personalized, and engaging communication. We
recommend a digital strategy that puts into practice relational marketing principles
and, consequently, leads to the loyalty of partners.

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 CHAPTER

14

Ensure Video Game Success with

Digital Marketing

Radoslav Baltezarević1* [0000-0001-7162-3510] and Ivana Baltezarević2

[0000-0003-4605-1420]
1
Faculty of Business Studies, Megatrend University, Serbia
2
Faculty of Law, Megatrend University, Serbia

1. Introduction
A game can be seen as a voluntary interactive activity of one or more players,
who follow rules, which are set to limit their behavior in a process of artificial
conflict that ends with a measurable outcome (Zimmerman, 2004). As a kind
of cultural product, video games require a special approach if a positive market
response is desired (Baltezarevic et al., 2018). The main difference between non-
electronic games and computer games is that computer games add complexity
and automation. Such games can independently support and compute game
rules, enabling more complex and rich player experiences in game worlds
(Juul, 2004).
Because there have been major demographic shifts in the target audience in
this industry, more video games are being published in different genres today,
to attract more audience and capture more market share (Scharrer, 2004). Most
games on the market are developed by a company that will eventually publish
them. As game development nears completion, publishers consider the scope of a
marketing campaign to support the game. Publishers used to have a certain degree
of flexibility when it came to the game’s release date, but lately, the release date
has been strictly locked to coordinate the marketing campaign. In rare cases, the
publisher may decide to delay the release of the game, if the dates coincide with
the release of competing games (Engelstätter & Ward, 2013).

*Corresponding author: [email protected]

Ensure Video Game Success with Digital Marketing 277

The use of digital media in various industries is gaining more and more
importance, primarily due to the widespread use of digital communication devices
and the low cost of accessing data in a digital environment (Nigar, 2018). Digital
marketing plays a crucial role in providing a timely and cost-effective solution
that helps measure the impact of promotional activities on return on investment
(ROI) (Pepelnjak, 2009). This type of marketing combines digital technologies to
contribute and facilitate marketing activities that continuously increase customer
acquisition. Digital technology allows companies to improve their understanding
of their consumers, their tastes, preferences, and desires to more adequately meet
their needs (Del Toro, 2020).
The current global video game advertising market is estimated to be worth
more than 4 billion USD and is expected to reach close to 5 billion (by 2024)
(Statista, 2022a). In the conditions of very strong market competition, marketers
are trying to find innovative ideas to bring their video games ‘closer’ to consumers.
With the help of digital marketing, it is possible to communicate more effectively
(but also cheaper) with consumers in a digital environment, given that gamers
rarely use traditional media. In this way, it is possible to positively influence their
perception of brands, build a good image of products and services, and finally,
respond precisely to their needs and desires. Digital marketing strategies are the
ones that can help in the process of achieving business goals.

2. Overview of the Video Game Industry

“Video game” is a term that represents an extremely wide range of events. It
can be understood as interactive digital entertainment that is performed using a
computer, game console, or mobile device. There are lots of different types of
video games on the market, such as first-person shooters or interactive movies,
and due to the lack of specific names for each type of game, the term is generalized
as video game (Owen, 2016). Recently, the video game industry has surpassed
the music and film industries combined and has become a major industry in
the entertainment sector (Witkowski, 2021). Creating video games has become
a complex process that can be compared to the making of high-budget movies
and can cost hundreds of millions of dollars. Due to the quarantine measures of
COVID-19, when people were forced to spend most of their time in their homes,
the video game industry achieved great growth in popularity (Beattie, 2020).
The video game industry consists of many elements, such as consumer
platforms, hardware and software, content development and production (includes
publishers who provide management of capital and intellectual property rights),
developer networks, marketing, creative teams, production of middleware and
software tools, distribution (physical and online), servers and network technologies
(Stewart & Misuraca, 2013). It is expected that this industry will continue to
grow and reach the sum of 200 billion USD in 2023, with an average growth
rate of 8.3% compared to the previous year. The revenue from the global gaming
industry is close to 175 million which is almost five times more compared to
278 Digital Marketing Expanded

the cinema industry, and almost nine times in contrast to the music industry
(Krampus-Sepielak et al., 2021). In the segment of digital video games, the
number of gamers will exceed 3 billion by 2027 (Statista, 2022b). Video games
can generate profits in just a few days. For example, the video game Grand Theft
Auto 5 (Rockstar) earned about one billion USD in the first three days (Crecente,
2013). It is undeniable that this industry contributes to the country’s economy
(not only in terms of direct sales value) through innovation, technology spillover,
building domestic infrastructure for advanced online services, through hardware
and software development (Stewart & Misuraca, 2013). The last decade has
seen major changes both in video games themselves and in the preferences and
demographics of video game players. The most significant is the increase in the
number of female gamers, older gamers, and in general the number of people
who have experience with video games (Entertainment Software Association,
2015). Perhaps the biggest change can be seen with the emergence and rise of
mobile games which played a major role in the huge development of the video
game industry since it is the most accessible gaming platform. Mobile gaming
generates the largest source of revenue in the industry, generating 54% of annual
revenue in this market (Takahashi, 2020).
From the player’s perspective, three game components can be distinguished:
rules, system, and fun. From the developer’s perspective, the components include:
mechanics that describe some of the game’s components, at the level of presenting
algorithms and data; dynamics that describe the behavior of mechanics during
operation depending on players’ input and output; and lastly, aesthetics that
describe the desired emotional reactions that tend to be evoked in the players when
interacting with the game system (Hunicke et al., 2004). With changes in consumer
preferences and the development of technology, maintaining a competitive edge
in the market is extremely demanding. Generally, when technology begins to
advance in one area, consumers withdraw from other areas of the industry. When
the game Pokemon Go was launched in 2016, it experienced a dizzying success
and became an instant global phenomenon. This game offered the audience
augmented reality as a new technology and broke five world records: it became
the highest-grossing game in the first month after its release; the game was the
most downloaded mobile game in its first month; Pokemon Go simultaneously
topped most international download charts in its first month; it topped most
international charts simultaneously in the same period in terms of revenue, and
ultimately earned $100 million in the shortest period of time (Swatman, 2016).
Generally, the video game industry today can be classified into four
categories: cloud gaming, esports, virtual reality (VR), and mobile gaming.
As for cloud gaming, this kind of gaming allows users to have a great gaming
experience while playing a high-tech game (which can be very demanding) on
a simple device, such as a smartphone or tablet, but with the condition that they
are connected to a good internet connection (Sharma, 2020). Cloud gaming is a
system for playing games online, which has boomed with the promotion of new
mobile technologies (Pollyana, 2016). The Cloud Gaming model is a concept
Ensure Video Game Success with Digital Marketing 279

that means affordable and hardware-independent gaming on multiple different

devices, such as console computers and smart TVs. This model enables any
device to access, through a client, the server on the Cloud remotely (via the
internet), the servers process the information sent by the device and return actions
via streaming (Xu et al., 2015). The second category is esports, which can be
defined as a sport in which professional players compete in various electronic
sports disciplines at a gaming tournament or championship both individually
and in teams. Among the most popular games played in esports are Overwatch,
League of Legends, Counter-Strike, StarCraft II, and Dota 2 (Klimowicz, 2017).
Esports tournaments are streamed live and winners receive prize money and
salaries (Baltezarević & Baltezarević, 2018). Globally, the esports audience
exceeds half a billion users, while fans spend an average of 100 minutes per
streaming session watching on specialized platforms such as Twitch, Mixer,
or YouTube Gaming (Field day inc., 2022). The esports industry has become
interesting to many multinational companies (both from the gaming world and
outside it). Companies are increasingly sponsoring esports competitions, teams
and individual players playing in tournaments, providing merchandise and cash
prizes, and organizing accompanying content. Of course, the main motivation
for the involvement of companies in this area is the huge audience (mostly
members of the younger population) with whom it is possible to communicate
directly and influence their purchasing decisions. In many cases, companies hire
the most successful esports gamers (influencers) to endorse and recommend their
brands to their followers, usually during streaming sessions, where, while playing
the game, they directly interact with consumers. According to Sherstyuk et al.
(2020), the next category is virtual reality (VR). Today, these games are at such
a level of visual realism that they are very close to movie quality. Unlike other
types of games, VR systems require expensive hardware and custom software,
so they are available to a limited audience. VR games stand out from all other
platforms, primarily because of the realistic feeling of presence in the video game.
This capability has made VR a tool used for medical and military purposes as
well, for training in extreme conditions. Bray and Coulter (2020) believe that
the main innovative trend in games is Mixed Reality (MR), which represents
the abstract concept of the coexistence of real and virtual worlds by creating a
connection between players, computers, and the physical environment. Mobile
gaming is the fastest-growing category of all gaming segments. As the number
of people who own a smartphone is increasing, it follows that this device is the
easiest and most convenient to connect to the virtual world of games (Krampus-
Sepielak et al., 2021). With the increase in smartphone users, mobile gaming
applications are on the rise globally. Mobile free-to-play apps account for the
largest revenue in the global mobile app economy (Swrve, 2016). Members of
the younger population use more sophisticated smartphones that have graphics
and high-quality features suitable for gaming. These more modern and advanced
smartphones motivate them to play for longer periods of time. Most games are
280 Digital Marketing Expanded

free to download, but players often have the option to pay for additional features
within the game itself (Su et al., 2016).

3. Digital Marketing: Definition and

Conceptualization
Digital marketing has become an indispensable tool for reaching potential
consumers and securing a competitive advantage in the market (Kannan, 2017).
Nowadays, the multi-channel nature of marketing requires marketers to be
familiar with digital skills to offer memorable experiences to their consumers
(Pine & Gilmore, 2019). This type of marketing appeared in the last decade of
the 20th century and presently, in most cases, represents the main strategy in
the business world. The introduction of digitization in marketing is a form of
using information about the progress of the marketing process, and it consists of
several stages: the emergence of new technologies that will be used for marketing
purposes; marketing has started to use technology, which is becoming a priority;
increasing technological functionality is used in research to achieve goals; key
strategy and adaptation, as a standard method in marketing, is implemented by
technology. The stages show that the progress of information communication
technology is the basis of the work and development of digital marketing.
However, it is evident that this means of connection (company to market)
can be even more effective (Rian, 2014). This type of marketing establishes
strong connections between the company and consumers and improves their
experiences, fosters electronic word-of-mouth (eWOM), which directly affects
brand equity (Jalilvand & Samiei, 2012) and the creation of mutually beneficial
relationships between consumers and organizations (Schivinski & Dabrovski,
2015). Digital marketing is a type of advertising that transmits information
in digital form (with the help of computers, mobile phones, or other digital
devices) to promote the brand image, deliver the brand message, and increase
sales. It covers different methods of marketing with the help of different channels
which include websites, email marketing, social media platforms, advertising
via mobile, WebTV, SEO, video, or pay-per-click campaigns (Bhagovati &
Dutta, 2018).
Websites are the core of any digital marketing strategy and are the foundation
of support for other platforms that are critical to customer engagement, such
as Facebook, Twitter, YouTube, Instagram, LinkedIn, and others. The content
placed on these platforms is critical to the success of campaigns. According to
research conducted in 2021, the main channels of digital promotions are social
media (85%), search (80%), display (60%), influencer marketing (52.50%),
email (47.5%), etc. (Chaudhari & Bhornya, 2022). It is believed that an effective
combination of traditional and digital marketing can help companies create brand
awareness and brand loyalty (Mortazavi et al., 2014).
Ensure Video Game Success with Digital Marketing 281

Among the advantages made possible by digital marketing that should

be singled out are: interactivity, or active communication of companies with
consumers, and the erasure of borders, which make it easier for marketing experts
to implement marketing ideas. This is the main reason why a brand can appeal to a
wider audience, not just those consumers in the limited market where the company
operates. Also, the advantage is reflected in easy access to resources (Web and
Wap (Wireless Application Protocol) resources). Finally, the development of the
internet and mobile communications enabled much faster evaluation of campaign
activities (Bernstein, 2014). Consumers often rely on digital marketing tools such
as reviews, communication with friends, and discussions on social networks, just
before making a final purchase decision. If the integration of websites and other
resources is well coordinated with mobile devices, greater consumer loyalty can be
expected. Mobile devices are used to perform financial transactions, offer discounts
and promotional coupons, and to perform other activities that are characteristic
of traditional marketing (Sarner et al., 2016). The goal of digital advertising is
not to replace traditional marketing, but that these two types of methods should
coexist with alternating roles (Kotler et al., 2016).

4. The Role of Digital Marketing in the Video

Game Industry
Choosing the platform for which the game will be developed (mobile phone,
console, computer, etc.) is an important decision in the development and
marketing of games because each platform has specific characteristics and
includes different segments of gamers. For example, in the case of smartphones,
software is provided through the Apple Store and the Android Market. The
console sector is reserved for major game titles. On this platform, gamers are
limited to buying games made for only one console. An analogy can be found
with razors for shaving (razors are cheap, and blades that fit only one type of
razor are expensive) (Cross, 2011). Promotional budgets within the gaming
industry are provided by console owners and game publishers, among which
the largest are Electronic Arts, Ubisoft, and Activision. Generally, half of the
income is invested in business promotion (Zackariasson, 2012).
Generally, the marketing process starts with a game development proposal,
when developers are just forming ideas and presenting them to publishers
(Zackariasson et al., 2006). Almost all major console manufacturers have invested
in their own digital distribution stores (such as Nintendo eShop and PlayStation
Store), and have managed to monetize the purchase of games directly on their
website. It is digital marketing that helps developers to generate further sales (after
the initial purchase of the game) through various means of microtransactions such
as downloadable content (DLC), season passes, and subscriptions or in-game
items. Distribution via online stores has enabled game developers to monetize
their gaming audience who, after purchasing the game, continue to invest in
282 Digital Marketing Expanded

additional content (Perrotta, 2020). Most promotional activities follow a standard

setting, however, there are more and more cases where innovative and new
promotion strategies are used within the industry. A good example is the digital
game Halo 2 which was promoted using an alternate reality game (McGonigal,
2008). In the virtual environment, many companies offer their consumers the
opportunity to try a product/service before deciding to buy it. In this way, an
emotional connection can be created between consumers and the brands (before
buying a video game or a movie ticket), but it can also demonstrate the value
and quality of that experience (Handy, 2005). At the moment when a consumer
tries a product or service, he can imagine himself as a future user. This method
can strongly influence the final purchase decision of consumers.
Advertising improves consumer awareness, knowledge of games, and
increases their participation (Pitt et al., 2017). Product placement (covert
advertising) of products has long been used in films and in some ways can be
considered an industry standard. Product placement in games allows the player
to be visually stimulated by the message, but also to interact with the product in
the game’s narrative. It has been proven that this aspect affects the understanding
of the product and creates virtual experiences with the brand (Mackay et al.,
2009). While the ultimate goal of classical advertising is an ad, singled out and
presented to the audience, the method of product placement subtly presents
the product within a film, television program, video game, etc. An individual
is generally aware of the moment in which he/she comes into contact with a
commercial advertisement. But here the situation is significantly different. The
viewer is generally not aware that he/she is exposed to this method of commercial
advertising (Baltezarevic & Baltezarevic, 2019).
The increase in the number of people playing mobile games has directly
contributed to the increase in revenue from mobile ads, which are integrated
into mobile applications in the simplest form and defined as one of the tools for
mobile marketing. Ads in the application influence consumer behavior in brand
recommendations, overall positive brand ranking, and ultimately purchase intent
(Cheung & To, 2017). A study of 176 game development companies found that
in-app ads have become the most common form of advertising for mobile game
monetization (Koetsier, 2014). As for game reviews, they can be published by
users themselves or by experts in the field. Today, online reviews have become
the first place that consumers will check in the process of creating a purchase
decision. Consumers trust the reviews, and positive ones are usually posted on the
game’s website, and often decorated with photos, charts, and maps, increasing the
site’s attractiveness. Other forms of content on a website aim to gain the interest
of potential consumers and motivate them to visit content-oriented websites
more often. To keep consumers, various quizzes are often published, contests are
organized, and clients are informed about news and updates through newsletters
(Wawrowski & Otola, 2020).
Companies are increasingly using social networks as one of the most
effective ways of communicating with their target market. The contents that
Ensure Video Game Success with Digital Marketing 283

are delivered to consumers are diverse, however, our sense of sight is the most
dominant and for this reason, the most attention is paid to visual communication
(Baltezarevic & Baltezarevic, 2022). Social networks are the main place for
direct communication with consumers in the gaming industry. However, it is
very important that the posts shared on social networks are unique, entertaining,
and adapted to the needs and interests of Internet users. Sometimes, during the
interaction with consumers, questions are asked about how players would react
to certain scenarios and what their next possible move in the game would be.
It is essential for social network managers to know their game’s audience and
to establish an honest relationship with them. With the development of digital
technology, new social network platforms appear from time to time. If the new
platform is attractive, the CEO of the company will inform the manager of social
networks to prepare a content strategy and implement it as soon as possible. One
such popular platform is certainly TikTok, which works by sharing video content
among users, and represents a great challenge for every gaming company. Video
content is an essential part of any digital marketing strategy, but it is frustrating
when this segment is added to the already expensive marketing activities. Gaming-
related video content is primarily suited for YouTube, which supports horizontal
video for PCs and consoles, while the TikTok platform uses vertical video only
(Francis, 2022).
Virtual reality (VR) is a constantly evolving field, and companies are
experimenting with it to simulate the experience of using their products through
brand interactions. It is considered the forerunner of the metaverse, which
represents a combination of VR and digital life, and all predictions indicate
that it will be the next trend in digital marketing. Microsoft recently bought the
video game company Activision Blizzard, and it specifically emphasizes in the
contract, that it will primarily focus on the metaverse which will provide different
options for connecting with consumers, who will have a more important role in
the company’s decision-making (Bernat, 2022).
Among the current digital marketing trends in the gaming industry, Search
Engine Optimization (SEO), App Store Optimization (ASO), the already
mentioned Video Marketing, and Influencer Marketing stand out. SEO, as a
critical component of digital marketing, refers to the process of improving a
gaming website to increase its visibility on search engines, when consumers
are searching for gaming products. If the pages are better exposed in the search
results, the more likely companies are to draw attention to themselves and
their brands. Every year, internet users perform billions of searches to obtain
information about desired products and services. A better position in the search
results than the competition can significantly affect the competitive advantage
and indirectly contribute to the company’s profit. On the other hand, ASO is how
game developers adjust the entry of their application in a specific store, such
as the Google Play store or the App Store. Adequate application optimization
makes games visible in popular searches. Video marketing, as already mentioned
in the previous text, refers to short advertising videos, which aim not only to
284 Digital Marketing Expanded

increase sales, but also to raise awareness of services and products and engage
customers (Optikpi, 2020). Research has shown that customer engagement can
definitely be considered an effective strategy for improving customer relationships
in the digital environment (Chan et al., 2014). Influencer Marketing is a form
of digital marketing that takes place on social networks (Optikpi, 2020). Most
influencers in the gaming industry got their start on the YouTube platform, which
is still considered the most popular platform for gaming influencers. However,
another very popular video game streaming platform is Twitch which allows its
members to connect their computer, smartphone, or console, and directly stream
videos while playing the game. It is estimated that today more than 3 million
gamers regularly follow gamer streams on this platform. Players follow top
gaming influencers to improve their gaming skills, listen to advice, and discover
new games based on the recommendations of these professionals. Interestingly,
changes in user demographics have also resulted in many strong female gaming
influencers today (such as SSSniperWolf, and iHasCupquake), who have millions
of followers and billions of video views. Teaming up with the right influencers
can positively influence consumer perception of video games (Haughey, 2020).
The streaming platform Twitch has almost 10 million daily active users, on the
other hand, gaming-related content accounts for 80% of the most popular topics
on the YouTube platform (Xaxis, 2017). Today, social media is crowded with
micro and macro influencers, and one of their main duties is to endorse and
recommend brands to their followers (for which they are rewarded with money
or gifts) and thus influence consumers’ attitudes about brands and strengthen
their purchase decisions (Kwiatek et al., 2021). Gaming influencers are usually
teenagers themselves who have a huge following among relevant demographics.
According to Google, 90% of gamers watch a YouTube gaming channel at least
once every seven days, and 64% will download a game after seeing a video about
that game on YouTube (Thinkwithgoogle, 2016).
In terms of social media engagement, more than 60% of video game players
write something about video games at least once a month, and more than 22%
say their main motivation for writing is to make it easier for other video game
players to play games. 8.0% of gamers write blogs or articles about video games,
and 77% of gamers of the younger population say they regularly talk to friends
about video games. It can be concluded that playing video games builds social
bonds with peers both in the digital world and in real life (Picton et al., 2020).
The recommendation of a credible and charismatic gaming influencer can inspire
followers to initiate positive eWOM in a digital environment, which can be
understood as an online version of word-of-mouth (WOM), characteristic of a real
environment. This kind of communication can contribute to building a positive
brand image (in this case, a video game). However, if an influencer carelessly
shares inadequate or harmful information (or content) related to a video game,
it can trigger negative eWOM communication among internet users, which can
have incalculable consequences for the brand’s image and the company’s profit.
Sometimes, such information in the digital environment comes from competitors
Ensure Video Game Success with Digital Marketing 285

or disgruntled malicious users of the video game and can cause a viral effect. If
such an effect occurs, i.e., the exponential spread of information in the digital
environment, the harmful influence is very difficult to control, and the only option
left for companies is to deny such false information.
Among the companies in the video game industry, there are many positive
examples of the use of digital marketing strategies that have contributed to the
dizzying success of the video game. Mikael and Niklas (Rovio) are Finnish
developers who launched the video game Angry Birds on the iOS App Store
a few years ago. The developers cleverly used a YouTube video trailer for the
game (the first of its kind for a mobile game) to maximize exposure. The number
of trailer views soon exceeded 110 million, and the game was downloaded two
billion times by 2014. After the incredible success of the video game, the business
expanded to include merchandise, theme park attractions, and even a high-budget
movie. Another good example is Activision’s digital marketing campaign. For its
globally popular video game Call of Duty: Black Ops II, along with a YouTube
teaser trailer with Robert Downey Jr. in the lead role, this company launched a
Twitter campaign “Choose your Black Ops adventure”. Black Ops II grossed 1
billion US dollars in its first two weeks of release and sold nearly 25 million copies
(Edology, 2016). The video game Grand Theft Auto (GTA) (Rockstar), also used
Twitter and launched the trailer in its digital marketing campaign. The campaign
was enriched with viral marketing and exclusive pre-sale offers. Rockstar earned
800 million US dollars in 24 hours with this game. The Disney Infinity video
game launched a broad social media campaign that included Facebook posts and
digital Valentine’s Day greetings. Also, Disney has secured a presence on sites
such as Nickelodeon, ESPN, and Yahoo (Bestmarketingdegrees, 2018).
Regarding the use of influencers in digital marketing campaigns, the following
examples should be mentioned. The mobile game Brawl Stars (Supercell) was
promoted with the help of influencer marketing even before the launch, to get as
many people as possible to subscribe to it in advance. Supercell hosted a series
of live video streams with ten YouTube influencers and gamers. This approach
produced excellent results and exceeded expectations with 5 million subscribers
after the release date was announced. It is assumed that an adequate selection of
influencers was crucial for this success. They decided not to choose big names
among influencers, but based their campaign on gamers who already played
Supercell games. Mobile game developer WildWorks developed the game Tag
With Ryan around the popular YouTube influencer, Ryan, from Ryan ToysReview.
Ryan Kaji was a young influencer who runs a YouTube channel dedicated to toy
reviews with 18 million subscribers. Therefore, the mobile game was designed
so that Ryan was the main character in it, who participated in the promotion of
the game in parallel. The game earned close to 80 million USD. Azur Games is
another example worth mentioning, that shows that different endorsements from
pre-launch influencers are not only great to start the story around the game, but
also to reach potential gamers. To promote its game Infinity Ops, Azur Games
teamed up with a few popular YouTube influencers who created introductory
286 Digital Marketing Expanded

videos about the game before its launch. In addition to this, the developers also
offered special bonuses to those who registered for the game before its launch,
which was noted in the content posted by the influencers (Kairytė-Barkauskienė,
2022).

5. Conclusion
Recognizing the great possibilities of digital marketing in the video game
industry is a necessary prerequisite for survival in a turbulent market with
strong competition and increasingly demanding consumers. Digital marketing is
a logical choice for marketing professionals, considering that gamers hardly ever
use traditional media. Their interests are focused on the digital environment,
where they communicate with other internet users, read reviews and seek advice
from their peers, or credible experts in a certain field (when making a purchase
decision) and, of course, it is where they have fun, primarily while playing video
games. This paper presents strong evidence of the benefits of digital marketing
in the video game industry, available in the literature, and several examples
of successful digital marketing campaigns, which in some cases have enabled
enthusiastic video game publishers to achieve global success.
Among the most effective digital marketing activities, which should be
prepared promptly, and launched at the right moment, primarily on social network
platforms, the use of influencer marketing (on YouTube and Twitch) and video
marketing, together with the inevitable Search Engine and App Store Optimization,
stands out. It is desirable to adapt the website to the needs of the target market
and enrich it with multimedia content and positive reviews of relevant experts in
this field so that it would be interesting for consumers to visit the website more
often. Communication with consumers, their involvement in the video game
development process, and organizing quizzes and competitions should permeate
all other marketing activities. VR and Metaverse (as the inevitable evolution
of the internet) are becoming important factors in simulating the experiences
of consumers interacting with brands, however, these methods are still in the
experimental phase. It is an undeniable fact that digital marketing methods will
be upgraded even more in the near future, that the understanding of consumers’
hidden subconscious needs and desires will be clearer to marketers so that the
video game industry will be able to respond to the demands of the target market
even more accurately and refined.

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Index

Consumer response, 54
A
Consumers, 277
Advantages of digital marketing, 5 Content creation, 39
Artificial intelligence, 245 Content development, 277
Asia, 241 Content marketing, 16, 17
Augmented reality, 278 Corporate social responsibility, 255, 259
Automation, 113 Cost, 179
Cost-based pricing, 179
B COVID-19, 56, 57
Creating value, 133
B2B, 111, 160 CRM, 27
Benidorm, 243 Crowdsourcing, 25
Bloggers, 243 CSR, 255, 259
Brand associations, 263 Curious-Oriented-Decided (COD) model,
Brand image, 260 50
Brand perception, 277 Customer acquisition, 117
Brick-and-mortar, 24 Customer centricity, 133
Business, 93 Customer experience, 29
Business-to-Business (B2B), 111, 160 Customer journey, 21, 24, 51, 119, 120,
159, 181, 184
C Customer service, 121
Challenges for NPOs, 256, 268 Customer-based pricing, 179
Channel, 111
Chatbot, 116, 245, 246 D
Click-and-mortar, 24 Data generation, 39
Cloud gaming, 278 Data-driven decision-making, 22
Co-creation, 25 Degrowth, 247
Commitment, 134 Deinfluencing, 247
Competitive edge, 278 Demarketing, 247
Competitor-based pricing, 179 Destination marketing organizations, 238
Computers, 279 Destination marketing, 238, 246
Conditions of digital marketing, 6 Digital advertising campaigns, 15
Consumer behavior, 38, 178 Digital advertising platforms, 13
Consumer behaviour theories, 42 Digital advertising, 13
Consumer perception, 62 Digital age, 23
Consumer platforms, 277
292 Index

Digital business, 200, 201, 206 Ethics, 268

Digital buying process, 8 Evolution of marketing, 22, 23
Digital campaigns, 265
Digital channels, 28 F
Digital communication, 100, 105, 277
Digital consumer, 51 Facebook, 10
Digital customer experiences, 244 Feedback, 39
Digital customer journey, 8, 13, 51 Forms of digital marketing, 9, 18
Digital customer, 51 For-profits, 255, 258
Digital disruption, 22, 23 Functionality (website), 263
Digital ecosystem, 26 Fundraising, 257, 265
Digital endorsers, 255, 256
Digital environment, 277, 284 G
Digital influencers, 267, 268 Game development, 281
Digital landscape, 22 Gamers, 277, 278
Digital marketig, 22 Geotagging, 244
Digital marketing analytics, 22
Digital marketing channels, 7
H
Digital marketing initiatives, 50
Digital marketing metrics, 269 Hardware, 277
Digital marketing operations, 6 Heatmap, 31
Digital marketing strategy, 7, 22, 26 High-tech games, 278
Digital marketing, 3-9, 18, 40, 48, 57, 91, Human capital, 122
92, 255, 256, 277 Human resource management, 215
Digital media, 5, 9, 178, 187
Digital platforms, 121, 266, 269 I
Digital servitization, 160
Digital solutions, 21, 22 Influencers, 243
Digital technologies, 22, 23, 206, 207 Information access, 38
Digital tools and technologies, 75 Information processing, 188, 189
Digital touchpoints, 52, 239, 248 Information type, 264
Digital tourism, 241, 245 Instagram, 10, 11
Digital transformation, 25, 26, 57, 196, Integrated marketing communications
197, 200 (IMC), 181
Digitalization, 121, 204 Interactive digital entertainment, 277
Disney+, 189 Internal marketing mix, 222
Display advertising, 14 Internal marketing, 215
Display networks, 15 Internal segmentation, 230
Distribution, 184, 185 Internationalization, 198, 199
Donors, 259, 266 Internet information resource, 75

E K

e-marketing, 3 Key Performance Indicators (KPI), 30

Employee satisfaction, 217, 230 Knowledge, 122
Employer brand metrics, 219
Employer branding, 218 L
Employer value proposition, 220 Lead generation, 114, 124
Esports, 278, 279 Leisure travel markets segments, 237
Index 293

Leisure travel markets, 237 Players, 278

Lifetime value, 139, 144 Possession processing, 188
LinkedIn, 7, 10, 11 Price comparisons, 38
Loyalty, 134 Price, 177, 179, 192
Pricing, 180, 181
M Primary sources, 68
Privacy (website), 263
Market information, 67 Process management, 177, 188
Marketers, 277, 280 Product evaluations, 38
Marketing mix, 184 Product, 176, 177, 188
Marketing research, 67 Production, 277
Marketing, 93 Productivity, 177, 190
Mental processing stimulus, 188 Project management, 99, 102
Metaverse, 179, 192 Promotion, 177, 181
Mindset, 117, 121 Promotional mix, 181
Mobile devices, 38 Publishers, 281
Mobile games, 278
Multi-channel marketing, 53
Q
N Qualitative research, 68
Quality, 177, 190
Native advertising, 14 Quantitative research, 71
Netflix, 189
New Zealand, 245
R
Niche tourism marketing, 237
Nike, 182, 183 Relationship marketing, 258, 259
Non-fungible token (NFT), 179 Resources, 255, 268
Non-profit campaigns, 268
Nonprofit organizations, 255 S
NPOs marketing, 256
NPOs, 255, 259 Sales funnel, 162, 163
Sales organization, 120, 124
Sales process, 121
O
Sales tasks, 122
Omnichannel marketing, 53 Sales teams, 122
Online consumer behaviour, 28 Sales, 121
Online marketing operations, 4, 9 Satisfaction, 133
Online marketing, 1, 4 Search engine advertising, 14
Online platforms, 39 Search engine optimization, 10, 256, 264
Online services, 278 Secondary sources, 68
Online shopping, 38 Security (website), 263
Opinion sharing, 39 Segmentation, 237, 238
Self-service, 111
P SEM, 31
SEO, 10, 256, 264
People processing, 188 Services marketing, 176, 177, 188
People, 182, 184 SMART, 27
Personalization, 27, 190, 244 Smartphone, 279
Physical evidence, 177, 192 SMEs, 196, 198
Place, 177, 182
294 Index

Social capital, 122 Travel recommendations, 241

Social marketers, 257, 258 Traveler consumer journey, 238
Social marketing, 256 Trust, 134
Social media listening, 31
Social media marketing, 19 U
Social media platforms, 38
Social media, 123, 178, 181 Unlearning, 121
Software, 277 Usability (website), 263
SoLoMo, 24, 28 User generated content, 243
Storytelling, 242 User testing tools, 31
Streaming, 178, 189 User-generated content (UGC), 29
Sustainable futures, 247
V
Value creation, 121
T
Video game advertising, 277
Tablet, 278 Video game industry, 277
Technology, 278 Video games, 276, 277
Third-sector organizations, 259, 265 Virtual reality (VR), 178, 278, 246
Touchpoints, 53
Tourism marketing, 237 W
Tourism technology, 241
Transversal competencies, 102 Web 3.0, 181, 191
Transversal impact, 92 Web analytics, 31
Transversality, 95 Webqual, 261
Travel influencers, 242 Website, 178, 180, 261
Travel marketing, 237