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Digital Marketing
With advances in communication and the growth of internet
services, digital marketing has become an important
component in the marketing effort of most companies. Digital
marketing involves the application of marketing strategies and
technologies using electronic media, such as computers and
smartphones. Digital marketers capitalize on digital
technologies to differentiate their products and services from
competing offers (Gaikwad & Kate, 2016).
Online retail sales have exploded, as internet retailers, such as
Amazon, provide informative, convenient, and personalized
experiences. By saving on overhead costs associated with
brick-and-mortar stores, inventory, and staff, these retailers
can offer competitive prices and can profitably sell low-
volume merchandise to their niche markets. While customers
scan websites searching for the lowest prices, online retailers
compete to offer the customer a top-caliber online
experience, delivery, and handling of customer complaints
and issues. E-commerce allows customers to connect and
interact with the brand of their choice. Accordingly, customer
service is crucial to the success of these retailers. In addition,
B2B commerce is increasingly being conducted online,
profoundly changing the supplier-customer relationship
(Kotler & Keller, 2015).
Digital marketers provide their customers with an
individualized buying experience, a wide selection of
products, and substantial information to help them research
and evaluate these products. However, it is easy for customers
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to visit another website at any time with the click of a button.
For this reason, digital marketers aim to not only attract
customers, but to encourage them to stay on their websites,
explore, and buy from them. A website's stickinessthe
amount of time that a potential customer spends on the site
can be used as an evaluative measure (Marshall & Johnston,
2011).
Anderson (2006) states that innovations in e-commerce and
search engine technologies enhance the efficiency of online
retail by encouraging the entry of even more innovative
products. This process creates a long tail of niches while
simultaneously decreasing the market share of blockbuster
products. Anderson argues that internet innovations reduce
the marginal cost of products by allowing online retailers to
focus on previously ignored long-tail products. According to
Anderson, in a world of scarcity, the "curse of the traditional
retail" is the obligation to find local customers (p. 17).
Traditional retailers typically carry only products that generate
profitable demand. They are constrained by their space and
retail areas and thus prioritize their stocked products
according to demand. By contrast, online retailers exist in a
world of abundance, with infinite shelf space and cheap
distribution costs. This advantage allows them to carry a
substantial number of niches, which collectively represent a
large share of their business and may rival their blockbuster
products.
As examples, Anderson (2006) refers to the online book and
music sales of Amazon and other online retailers, where
selection is virtually unlimited and delivery is cheap. He adds
that the market share of niches is increasing, and the cost to
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customers is decreasing. These shifts are influenced by
technological innovations in search engines as well as
recommendation and ranking tools, which effectively drive
"demand down the tail" (p. 53). Anderson also argues that
three forces underlie long-tail economics: democratization of
production tools, democratization of distribution tools, and
connecting supply and demand.

Unformatted Attachment Preview

Digital Marketing With advances in communication and the growth of internet services, digital marketing has become an important component in the marketing effort of most companies. Digital marketing involves the application of marketing strategies and technologies using electronic media, such as computers and smartphones. Digital marketers capitalize on digital technologies to differentiate their products and services from competing offers (Gaikwad & Kate, 2016). Online retail sales have exploded, as internet retailers, such as Amazon, provide informative, convenient, and personalized experiences. By saving on overhead costs associated with brick-and-mortar stores, inventory, and staff, these retailers can offer competitive prices and can profitably sell lowvolume merchandise to their niche markets. While customers scan websites searching for the lowest prices, online retailers compete to offer the customer a top-caliber online experience, delivery, and handling of customer complaints and issues. E-commerce allows customers to connect and interact with the brand of their choice. Accordingly, customer service is crucial to the success of these retailers. In addition, B2B commerce is increasingly being conducted online, profoundly changing the supplier-customer relationship (Kotler & Keller, 2015). Digital marketers provide their customers with an individualized buying experience, a wide selection of products, and substantial information to help them research and evaluate these products. However, it is easy for customers to visit another website at any time with the click of a button. For this reason, digital marketers aim to not only attract customers, but to encourage them to stay on their websites, explore, and buy from them. A website's stickiness—the amount of time that a potential customer spends on the site— can be used as an evaluative measure (Marshall & Johnston, 2011). Anderson (2006) states that innovations in e-commerce and search engine technologies enhance the efficiency of online retail by encouraging the entry of even more innovative products. This process creates a long tail of niches while simultaneously decreasing the market share of blockbuster products. Anderson argues that internet innovations reduce the marginal cost of products by allowing online retailers to focus on previously ignored long-tail products. According to Anderson, in a world of scarcity, the "curse of the traditional retail" is the obligation to find local customers (p. 17). Traditional retailers typically carry only products that generate profitable demand. They are constrained by their space and retail areas and thus prioritize their stocked products according to demand. By contrast, online retailers exist in a world of abundance, with infinite shelf space and cheap distribution costs. This advantage allows them to carry a substantial number of niches, which collectively represent a large share of their business and may rival their blockbuster products. As examples, Anderson (2006) refers to the online book and music sales of Amazon and other online retailers, where selection is virtually unlimited and delivery is cheap. He adds that the market share of niches is increasing, and the cost to customers is decreasing. These shifts are influenced by technological innovations in search engines as well as recommendation and ranking tools, which effectively drive "demand down the tail" (p. 53). Anderson also argues that three forces underlie long-tail economics: democratization of production tools, democratization of distribution tools, and connecting supply and demand. Name: Description: ...
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