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DIGITAL MARKETING: DISRUPTION, EXPANSION AND ITS IMPACT ON BUSINESS

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Abstract

Digital marketing has taken over a larger share of marketing and promotion compared to traditional ways. Analyzing digital marketing and studying their types, mainly search engine marketing, the paper will examine how disruptions and expansions impact businesses. The study will focus on how website keyword-stuffing can boost or kill the growth of a company. Qualitative and quantitative data will be collected, and descriptive statistics methods such as mean, mode, standard deviation, and percentiles will be used in addition to R-square to determine the objectives and draw a conclusion. The study will take place from March 2021 to August 2021.

 

 

  1. Introduction

Marketing is a broad term that every organization, whether small or large, uses to create awareness, grow, or promote its products and existence. According to Deepak and Jeyakumar (2019), marketing is a function in an organization with a set of processes that create, communicate and deliver value to customers and manage relationships to benefit both the stakeholder and the company. Marketing involves product advertising, product selling, product delivery to other businesses or consumers.

1.1 Marketing Mix

Marketing professionals get involved in marketing by creating dynamic ways to draw the company's attention through promotional activities. These activities are designed to boost sales mainly. For instance, a company may use promotional activities such as celebrity endorsement, catchy slogans or phrases, media advertising, and explosive graphic designs. Marketing professionals came up with a marketing mix regarding dynamism and marketing growth, also known as 4ps; product, price, place, and promotion to dissect marketing into working ways.

1.1.1       Product

From the customers' point of view, they will favor affordable and available products (Deepak &Jeyakumar 2019). Product, therefore, is the basic market-level offering goods and services that the business has a customer base for. The goods and services are tailored to their customers' needs. Before launching its products, the company studies the market to understand the need and competition to device necessary marketing activities to penetrate the market.  For instance, a company may be the best in manufacturing quality floppy disks. But for customers, might only be interested in something that can help them store data; therefore, the company may remain relevant only if they switch to making portable disks, flash disks, and SD memory cards..

      1. Price

Price defines how much the company is willing to sell its products for. Before determining price, it considers unit cost, marketing costs, and distribution expenses to come up with the final price. A review of the competitors' price of the same product affects the customers' ability to switch between them.

      1. Place

Place, is the third p in the marketing mix, determines the distribution channels of the product. The company can decide to sell this product through a physical store or digitally, or even both.

      1. Promotion

From product conception, product price, distribution channels, and promotional activities, the company keeps on track the product's life and its performance in the market. Promotion involves activities to bring awareness and sales such as selling, advertising, sales promotion, sponsorships, and more.

    1. Digital Marketing

Traditionally companies have used traditional methods to market their companies and products, such as newspapers and hoardings. However, things have changed, and digital marketing ways, which are cheaper, reach a wider audience faster, have entered the stage (Kannan, 2017). Search engine marketing (SEM), search engine optimization (SEO), social media marketing, and websites are ways digital marketing is applied.

Digital marketing levels the marketing ground for both large and small companies to promote their products. However, it comes with various scopes; thus, a keen study can produce its impact on digital marketing. SEM, a digital marketing type, entails soliciting for a websites visit through various ways such as pay-per-click and organic ways; the main aim is to increase a website’s visibility and increase sales as a result. Therefore, does SEM impact business by improving profitability or not? And is digital marketing a better option for businesses?

    1. Background and Problem Statement

Since the 1990s, when digital marketing traces began, the online marketing growth graph has been growing steadily with various approaches diversifying. Digital marketing, therefore, is the use of media or digital technologies to achieve marketing objectives (Chaffey & Smith, 2017). From a simple thing known as desk search to online research has turned into the complex online analysis. Over the years, the growth of online space promoting digital marketing has been unlimited. For instance, according to Chaffey & Smith (2017), most US populations stay online for 24 hours per week. Thus even the newspaper companies are shifting from print to digital copies, thus further widening the field.

For the effectiveness of digital marketing, all companies need to have their website and applications if necessary. This way, companies can display ads, perform email marketing, engaging ads on social media platforms, perform email marketing, and many more. Besides, digital media need to be visually helpful since customers will skip websites they find unattractive or difficult to navigate. Thus to how can SEM be applied and how does it impact profitability of a business

 

 

    1. Literature review

Digital marketing has traversed across India into all businesses of different nature. According to Hima (2016), digital marketing is a phenomenon that rules the world, and digital marketing is essential in education. It not only helps business spur their growth but also expand boundaries in education. As a result, learning institutions don't suffer from a lack of brand awareness due to digital information availability.

To expound on digital marketing in Big Choice Group, Fierro (2017), using a case study comparing the digital innovations with a company's structure. It was realized that digital marketing dit affects various sectors and the users and their buying behavior. Simirlarly Sivasankaran (2017) did a similar study and found out how Indians' youth and markets have been affected.

Further to understand how digital marketing varied from traditional marketing, Afrina, Sadia, and Kaniz investigated the variations and how they impacted sales. In an empirical study using various statistical tools to get conclusions, sales varied from different markets. Building conducive relations with the customer was one of the takeaways, as illustrated by Merisavo. Digital marketing has expanded customer data kept by the companies. To understand how customers make their purchases, customer behaviors and digital marketing have encouraged tracking such data, making businesses understand their customers' purchase behaviors (Merisavo). According to Julian, people spend more time with their phones since the advent of smartphones. Therefore, the social media blaze is providing more opportunities for companies to grow their brands.

Moreover, to explain how brands' ways of acting with customers changed with customers gaining more power over brands, Rupin (2015) found that companies could collect customers' data easier than before. In the analytical and practice phases, the relationship between the two improved where customers could influence brands' decisions, especially with community groups online uniting for a course.

To increase a page's SEO and traffic, there are various ways to approach this. In understanding it, including its algorithm, Patil (2013) discussed how it helps businesses grow. Also, Khalil found that methods such as regular content creation, keyword optimization, and good content can increase a page's ranking in Google. Chaffey and Smith (2017), in their research on planning, optimization, and integration of online marketing, found various importance of competing through technology and digital media. The use of keywords stuffing in websites through SEO can boost websites' visibility (Raza et al.). SEO increases the ranking of websites' search engine indexing; therefore, a more stuffed website with keywords ranks top during a web search, increasing its chances of receiving a click.

  1. Hypothesis

The hypothesis is assuming something is true or false for research. Denoting the hypothesis is done in two ways; Ho for null and Ha for an alternative. P-value is used to reject or accept the hypothesis, a smaller p (<0.05) value indicates rejection of the null hypothesis. In comparison, a larger p (>0.05) signifies rejection of the alternate hypothesis and validates null.

3.1 Research Objective 1

By using digital marketing, how does it affect marketing cost and revenues?

3.1.1 Research hypothesis 1

To test how digital marketing assists in lowering the overall marketing cost.

Ho – Digital marketing does not help lower the overall marketing cost of the companies.

Ha – Digital marketing lowers the overall marketing cost of the companies.

3.2 Research Objective 2

To use SEM to bring healthy traffic and increase sales to the company.

3.3 Research Objective 3

The use of websites helps in gaining more audience and promoting goods and services.

3.3.1 Research hypothesis

To test if keywords stuffing helps boost websites' visibility

Ho – Keywords don't help increase websites' visibility.

Ha – Keywords help increase websites' visibility.

3.4 Research questions

  1. How does SEM affect operational costs and revenues?
  2. Does use of website increase traffic to the businesses?
  3. Does SEM increase websites’ traffic?
  1. Research Methodology

4.1 Study Design

The study design is the framework and techniques chosen by the researcher to use as research methods. It provides a clear blueprint to answer given research questions by collecting data, interpreting, analyzing, and discussing it. This study applies both qualitative and quantitative design where raw data will be collected from sampled questionnaires, analyzed, and discussed in line with this study's objectives to provide a conclusion.

4.2 Data Collection Methods

This research will source its data from respondents of companies that use any digital marketing strategy to promote their awareness or products. The researcher will initiate a face-to-face meeting with various companies and provide a questionnaire that is then filled and submitted for further processing. The respective companies' multiple websites will be monitored to provide insights into the qualitative part's marketing strategies' actual applications.

4.3 Data Analysis Methods

The researcher will collect data, edit, code, and classify it so that interpreting and presenting it will be easy. Descriptive statistics, such as mean, mode, standard deviation, and percentiles, will be used to analyze the data. With R-square, a statistical tool for the coefficient of determination, the data will be explored in addition to statistical methods to determine how close it is to the regression line before concluding.

4.4 Mechanisms to assure the quality of the study

There will be a standardized data collection and accurate recording method to eliminate human error elements during the data collection process. Similarly, with the use of R-square and p-value, the decision to determine a hypothesis conclusion lies with the tools, therefore, eliminating the researcher's bias in decision making.

4.5 Study Period

Task name

March

April

May

June

July

August

Proposal preparation

 

15th

 

 

 

 

Proposal presentation

 

 

 

 

 

 

Submissions to ethics committee

 

 

15th

 

 

 

Data collection

 

 

 

 

 

 

 

Data analysis and report writing

 

 

 

 

 

 

Final submission

 

 

 

 

 

 

 

Final presentation

 

 

 

 

 

 

1.0 Study period Gantt chat

As detailed in the Gantt chat above, the research proposal takes from March to 15th April, while the presentation takes place in April after the 15th. Submissions to the ethics committee and awaiting feedback occur in the first half of May, while data collection takes part in the second part for two weeks. For the whole month of June, the data collected is analyzed, and a report is generated that gives room for submission and presentation in July and August, respectively.

4.6 Participants of the Study

The study aims to collect data from companies using digital marketing to promote their products. Employees and business owners will be put in the sampling. The researcher would like to get a sample of businesses running ads on Facebook and Twitter. A population of 300 randomly selected companies in California, USA, and a final sample size of 30% as recommended by Varoquaux (2018), giving 100 respondents is used.

4.7 Ethical Considerations

The research follows accepted protocols to collect and use the data without any violations. The data collected is done voluntarily with prior consent to maintain ethics. The researcher does not contain any sensitive data. The data is kept in a confidential manner where whatever is accessible to the public is a processed data and nothing personal.

5. 0 Resources – Budget

Activity

Amount

Printing and photocopying, and binding

 

Internet and Research charges

 

Travelling  expenses

 

Miscellaneous

 

TOTAL

200

 

100

 

1000

 

500

 

USD 1800

 

 

References

Deepak, R. K. A., & Jeyakumar, S. (2019). Marketing management. Educreation Publishing.

Kannan, P. K. (2017). Digital marketing: A framework, review and research agenda. International Journal of Research in Marketing34(1), 22-45.

Chaffey, D., & Smith, P. R. (2017). Digital marketing excellence: planning, optimizing and integrating online marketing. Taylor & Francis.

Varoquaux, G. (2018). Cross-validation failure: small sample sizes lead to large error bars. Neuroimage180, 68-77.

Hima, V. (2016). (2016). Digital marketing: a phenomenon that rules the modern world.  Reflections Journal of Management (RJOM).

Raza ul Mustafa, M. Saqib Nawaz, M. IkramUllah   Lali2   (2016). Search engine optimization techniques to get high score in serp's using recommended guidelines.

Marko Merisavo. The Effects of Digital Marketing on Customer Relationships.

 

 

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