The next edition (Ed. 15) of Marketing Management will enlarge on some new trends such as co-creation, crowdsourcing, sustainability, dynamic pricing, digital marketing, marketing automation, and growth strategies. Many of these are based on digital technologies.
The Internet is having an impact today that is comparable to what the world felt when Gutenberg introduced the idea of printing. The Internet, social media and new communication technologies are major game changers in marketing. The company cannot promote its brand by having a monopoly on communications about its brands. It is the consumers and their peer-to-peer talk that is shaping consumer images of brands and what to buy and how much to pay. No Company can afford to deceive customers without being quickly exposed on the Internet.
New digital technologies affect all of the 4Ps of marketing. The advent of 3D Printing will help entrepreneurs design new products cheaper and faster. The development of software to do dynamic pricing will allow airlines to change the price of seats depending on the number of seats already sold. The development of new distribution channels such as online seller, Amazon and others, and eBay are increasing the ease of transacting. The development of social media technologies such as Facebook, Twitter and YouTube are changing marketing tools for promotion.
Traditional advertising will contribute to be a brand builder but it will have to do it with a lower budget. Some percentage of every company's advertising budget will have to move into digital and social media marketing. It may conceivably in five or more years rise to 50 percent. Traditional advertising will increasingly partner with digital marketing, one supporting the other in a synergistic way.
Company Moves to use Digital Marketing Opportunity
1. Companies will increasingly resort to crowdsourcing to get ideas for new products, new advertising campaigns, and new sales promotion ideas.
2. Companies will increasingly move to marketing automation where they use artificial intelligence to carry out marketing activities that were formerly done by skilled marketers.
3. Companies will increasingly learn how to produce “lovemarks” with their customers and employees.