First of all, what is Marketing? Marketing can be defined as the the management process through which goods and services move from concept to the customer. It includes the famous four elements that surely all of you know, the 4 P’s of Marketing: product, price, promotion and place. Or more casually as one of my professors at university used to state: good Marketing it is when the customer decides to buy.
During the recent past, digital Marketing has become more and more important. How is digital Marketing differentiated versus traditional Marketing?
Traditional Marketing encompasses all strategies in these 4 categories:
- print: includes all products in paper form including newspapers, magazines and other printed material.
- broadcast: advertisements on radio and television.
- direct mail: all material sent to customers via postal mail consisting of brochures, letters, postcards and fliers.
- telephone, also called telemarketing: sales messages are delivered over the phone to achieve customers buying the product or service.
Consumers are very much used to traditional Marketing methods and therefore these are broadly accepted. An exception might be telemarketing that has been abused with aggressive sales pitches during the recent past. You surely know the situation when you take up the brochure of your desired next holiday destination or the latest car model you consider buying and you look through it again and again. That’s a unique advantage of traditional Marketing. With the tools of broadcasting and/or print it’s easy for marketers to reach their local target audience.
However, there is usually no direct interaction between the traditional medium and the consumers. Instead, information is provided to the public in the hope that customers support the brand and buy the products. In addition to that, all methods mentioned above are very costly. The extreme example is an advertisement at the Super Bowl where a 30 second ad costs several million dollars. Is it worth the investment? It depends on what the goal of the campaign is. The fact that several major companies do it shows that demand exists. I will have to dig into further detail in a separate blog.
Digital Marketing as the name already says used electronic media for Marketing purposes. These include websites, videos on youtube, podcasts as well as social media such as facebook, twitter, instagram etc. Digital Marketing has a few compelling advantages:
- global reach: an audience all over the globe can be reached, at any time, without the need to be locally present. All it takes for consumers to be reached is digital devices and an internet connection.
- tailored: digital campaigns can be tailored to fit the needs and preferences of a clearly defined target audience.
- interactive: Social media allow to receive direct customer feedback and get into direct interaction across all different channels.
- cost effective: some services are free of charge and the overall spend is much lower than in traditional Marketing. It allows particularly smaller companies which could not afford costly TV ads to promote products or services.
- measurable results: effects of digital campaigns can be measured and analysed to understand what is working and what isn’t. You can see what is being viewed, how often and for how long, what is being clicked, what sales conversions are and you can follow the comments of what people are thinking about it.
And the winner is
Traditional Marketing has been tried and tested over many years and surely has its raison d’être. However, Digital Marketing is very efficient and offers formerly unimaginable opportunities. So in this omnichannel world, I recommend applying a smart-combination-of-both instead of a winner-takes-it-all approach.
What do you think? Leave your comments below.