The Impact Of Digital Marketing Discussion Paper
Abstract
The impact of digital marketing on the online presence of international businesses can not be gainsaid. Ideally, digital marketing helps the business focus on audiences with a global reach. Businesses use digital technologies to improve their online touchpoints that customers wanting to find more about a brand and its associated products can use to find more information. Relying on a literature review, the study analyses the relationship between digital marketing and the online presence of international business in the UK IT sector, assess the impact that digital marketing has on the online presence of international businesses in the UK’s IT sector, documents the challenges companies face in implementing digital marketing to increase online presence and identify the strategies the companies can utilise to mitigate the challenges faced while implementing digital marketing to increase online presence. Relying on the literature review, the paper establishes that digital marketing allows companies to create a buzz that, in return, improves their online presence; that digital marketing and online presence are intrinsically intertwined, that an action on one inadvertently affects the other; and that an improvement on online presence as a result of digital marketing improves the interaction between a business and its customers. It further establishes how an improvement in online presence as a result of digital marketing attracts new customers and retains the old ones, thereby increasing the sales and revenue of a business entity. The study hypothesises that the security and privacy of the users’ data is a challenge many businesses face when implementing digital marketing initiatives. The study further hypothesises that the challenges can be addressed by allocating enough financial and human resources to the digital marketing initiative. Finally, the study situates the entire discussion on digital marketing within market segmentation theory, relationship marketing theory, and customer-led positioning theory. The study relies on theories to explain the relationship between the constructs under study The Impact Of Digital Marketing Discussion Paper.
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Acknowledgements
Special thanks to my supervisor, who read every draft of this paper. Your advice and suggestions were helpful during the completion of this project. I am eternally grateful.
Introduction
The advancement and widespread use of technology worldwide has expanded the avenues for marketing. One new avenue for marketing is digital platforms. Today, companies and business entities create and disseminate information through digital media platforms or channels (Akeel and Gubhaju, 2020; Manafzadeh and Manafzadeh, 2019). The process through which business entities create and disseminate information through digital platforms is known as digital marketing. Such marketing may be carried out through smartphones, computers, tablets, and any other gadget connected to the internet (Akeel and Gubhaju, 2020; Manafzadeh and Manafzadeh, 2019). Marketing is an important concept in any business. Marketing allows the consumers or the potential customers to be aware of a product and engages the customers in a way that persuades them to buy one product over another (Alruthia, 2020; Wirtz et al., 2014). Marketing allows a business to maintain relevance, demand, competition, and reputation. Marketing also allows a business to remain a going concern by allowing it to perform its most important role, which is to make profits (Alruthia, 2020; Wirtz et al., 2014). Businesses leverage digital platforms such as social media, search engines, emails, and websites to connect with current and prospective customers. Digital marketing, therefore, shifts from traditional marketing tools and employs digital technologies in the marketing process. Many businesses utilise digital technologies to improve how easily their customers or potential customers can reach or interact with them (Akeel and Gubhaju, 2020; Manafzadeh and Manafzadeh, 2019). Businesses use digital technologies to improve their online touchpoints that customers wanting to find more about a brand and its associated products can use to find more information. The ease with which a customer can reach a brand or the online representation of a brand, a company, or a product is what is known as the online presence (Fuller et al., 2022; González-López et al., 2021). Local and international businesses employ the digital marketing tactic. International businesses rely on digital marketing tactics to ensure they create a presence in geographical areas where it is physically impossible to have a presence. The paper argues that effective digital marketing positively enhances the online presence of international businesses The Impact Of Digital Marketing Discussion Paper.
Research Background/Context
International business entails the movement of goods and services across borders. It entails contractual agreements that allow business entities to allow foreign firms and customers to enjoy their services and products. In essence, international business involves manufacturing, selling, delivering, and distributing products and services across borders or in foreign countries (Cavusgil et al., 2014; Daniels et al., 2014). Given the impact of globalisation or the interdependence of the world economies, cultures, and people as a result of cross-border trading and technology, many businesses have come up with or have been forced to adopt novel ways of marketing and staying relevant (Cavusgil et al., 2014; Daniels et al., 2014). Globalisation has created a vast market for companies and business people. The vast market cannot be adequately covered by traditional marketing methods hence the new marketing method in the form of digital marketing (Griffin and Pustay, 2015). Modern businesses create and maintain a competitive advantage over others by embracing technology and having a strong online presence.
The concept of digital marketing began in the 1990s with the advent of the internet. In 1993, the first clickable web banner went online, and from then, the digital marketing phenomenon has been part and parcel of business operations. 1993 also saw the establishment of Yahoo. Yahoo changed digital marketing by giving companies ideas on how to optimise themselves on the internet (Faruk et al., 2021). In the year 1996, more search tools such as HotBot, LookSmart, and Alexa were introduced. In 1997 the first social networking website was established in name of Sixdegrees.com (Faruk et al., 2021). 1998 was a great year for digital marketing as yahoo online was launched, Google was established, and Microsoft launched MSN. Between 2000 and 2010, there were massive developments in the internet sphere. LinkedIn was founded in 2002, Gmail in 2004, Google and Facebook went public in 2005, and Youtube was founded in 2005 (Chaffey and Smith, 2022a). In 2006 Twitter was founded, and the internet traffic increased by billions. Between 2000 and 2010, marketing strategies shifted from traditional platforms to online or internet-based platforms (Faruk et al., 2021). It was the period after 2010 to date that saw many of the digital platforms monetised and used as marketing tools. After 2010, many companies began to consider digital platforms for marketing seriously The Impact Of Digital Marketing Discussion Paper.
Today, many customers and potential customers spend most of their time in online spaces, making digital platforms important avenues for marketing. For digital marketing to be carried out, there need to be digital devices which include mobile phones and tablets; there must be digital content platforms such as Twitter, where users interact continuously, there must be digital media or paid channels, and there must be digital technologies such as artificial intelligence, virtual reality or augmented reality that enable the digital marketing (Bala and Verma, 2018; Kannan, 2017). The concept of online presence is closely connected to digital marketing; digital marketing allows businesses to increase their visibility and the ease with which customers can reach them and the products they sell.
Aims
The aim of the research is the main element of the research paper, as the other elements depend on it. The aim helps the researcher set a hypothesis that assists in achieving the research objectives. The aim of this research is to analyse the impact of digital marketing on enhancing the online presence of international business: An exploratory study of the UK IT sector.
Objectives
- To analyse the relationship between digital marketing and the online presence of international business in the UK IT sector.
- To assess the impact that digital marketing has on the online presence of international businesses in the UK’s IT sector.
- To analyse the challenges companies face in implementing digital marketing to increase online presence.
- To identify the strategies the companies can utilise to mitigate the challenges faced while implementing digital marketing to increase online presence.
Intended Outcomes
The intended outcomes that are expected by the successful accomplishment of the research paper are:
- The relationship between digital marketing and online presence.
- The impact of digital marketing on the online presence of international businesses.
- The challenges and strategies that are utilised during digital marketing for the online presence of the international business.
Justification of the Study
Marketing in the current business setting is dependent on digital marketing, which is due to the increasing benefits of digital marketing. The United Kingdom is a nation known for its UK-based multinational businesses (Pandey et al., 2020). UK multinational businesses are actively utilising digital marketing to increase their marketing strategy and communication efforts. Digital marketing helps organisations increase their reach as digital can be done by the company from one nation to another easily. Furthermore, digital marketing helps organisations in the UK’s IT sector to foster their online presence in internal marketing. The online presence is helping organisations attract new customers to the company, which eventually increases the sales and revenue of the company. Companies in the IT sector are actively utilising digital marketing to expand their business offerings in other nations through utilising the online channel (Chaffey and Ellis-Chadwick, 2019). This helps the companies in decreasing the cost of expansion and increases the reach of the companies. It is important for the readers to have a proper knowledge of the subject of digital marketing and how it increases the effectiveness of online presence in internal business. The research on the subject is essential as it will provide insights that the readers can utilise to have a clearer picture of the impact that happens due to the utilisation of digital marketing on the online presence of an international business. The research on the subject will provide valuable and reliable insights that the readers can use for practical implementation of digital marketing to increase the effectiveness of online presence (Ryan, 2020)The Impact Of Digital Marketing Discussion Paper. The research is focused on the IT sector as it is one of the most emerging international businesses, and it is essential for people to have proper knowledge of how companies use digital marketing for their online presence.
Literature Review
Introduction to the Literature Review
The section carries out an in-depth and descriptive analysis of the literature on the study subject. It identifies commonalities and divergences in the literature on the subject. The section relies on books, journals, working papers, and reports to provide a comprehensive overview of what other authors have documented about the current subject of discussion. The literature reviewed in this section was obtained from online databases such as JSTOR, Hein Online, ProQuest, and Google Scholar. Other books, reports, and journals were obtained from the physical library at the school. The literature from the online databases was searched using phrases and terms such as :
- Digital Marketing
- Online presence
- International Business
Boolean operators such as AND, NOT, and Or were employed in the online literature search to ensure that the search results only indicated the most relevant books, journals, and reports (Aliyu, 2017; El Hofi and Labelle, 2019). Once the list of books, reports, and journals was retrieved, the literature was filtered based on publication date and relevancy. The most relevant documents answered the research questions, while the recent publications cover the most recent developments on the topic of study.
An Understanding of Digital Marketing
According to Desai (2019), digital marketing entails carrying out company or business marketing activities through the use of digital technologies. According to the author, digital marketing entails the use of channels and tactics such as search engine optimisation, social media marketing, affiliate marketing, content marketing, native advertising, email marketing, pay-per-click, inbound marketing, website traffic, and online public relations. A similar sentiment is echoed by Verma (2018), who argues that digital marketing is the process of achieving a business’s marketing objectives through digital technologies. On the other hand, Chaffey and Smith (2013) assert that digital marketing is the employment of digital technologies to improve customer knowledge of particular products. According to Chaffey and Smith (2013), the actions on digital platforms are done either by the companies themselves, their agents, or by people they have contracted. Dwivedi et al. (2021) opine that digital marketing refers to the use of flexible, cheap tools provided by technology to market products. According to Dwivedi et al. (2021), digital marketing is all about leveraging digital technologies to ensure that a business is aware of itself and the products it sells. Yasmin et al. (2015) concur with Dwivedi et al. (2021), Chaffey and Smith (2013), and Desai (2019) that digital marketing is a marketing style that departs from traditional marketing and uses digital channels. As such, Digital marketing may be conceptualised as a marketing style that departs from traditional marketing methods, embraces the use of digital technologies, leverages technology to maximise the outcome of the marketing process, and is disruptive. The digital marketing process allows businesses to expand beyond the limits of traditional marketing practices The Impact Of Digital Marketing Discussion Paper.
Conceptualizing Online Presence
Forbes (2017) explains that online presence refers to the deliberate process of availing digital media through different digital search engines. According to Forbes (2017), online presence entails the online representation of a business or company and its associated brands. Online representation is not only limited to websites but also extends to the use of emails and social network apps. Sharma et al. (2020) explain that online presence entails all the activities a business entity has under its name on the internet. According to Sharma et al. (2020), such activities include social media accounts created under the business’s name, assets, and the business’s interactions on the internet. Ali and Nasr (2016) conceptualise online presence by describing various aspects of the construct. According to Ali and Nasr (2016), online presence entails the appearance of a business entity on search engine results, a brand’s website or portal, a business’s social media presence, online advertisement, a mobile business app, and communication made via email. Ali and Nasr (2016) argue that search engines are the starting points for many customers; if a simple search result on search engines such as Google can produce a result that contains something associated with a company or a business, then, arguably, such a company has some online presence. According to Ali and Nasr (2016), social media presence is about using social platforms such as Twitter and Facebook to communicate with the target market. A brand’s portal or website is a designated place on the internet where customers and potential customers can get information on the product and services a company offers. The companies also use portals and websites to provide information on themselves. Ali and Nasr (2016) assert that customers can access the portals and websites to get details on the company or business, and in some situations, they can also get some information about the staff that serves them. According to Ali and Nasr (2016), mobile apps allow businesses to reach out to customers directly and provide them with much-needed convenience The Impact Of Digital Marketing Discussion Paper.
International Business
According to Subedi (2022), international business entails trade of goods and services, technologies, knowledge, and capital on a transnational scale. Therefore, according to the author, international business involves a transborder exchange of goods and services. According to Subedi (2022), for international business to exist, the business operation must take place across two or more politically independent jurisdictions. Subedi (2022) states that international business is seen in three forms: imports, exports, and entrepôt. According to the author, the export entails selling products to foreign entities. The import involves purchasing goods and other products from foreigners, both natural and legal. Entrepot, on the other hand, entails the import of goods for the purpose of exporting them to another country. Subedi (2022) provides another side of international business by asserting that international business may also refer to multinational companies’ internalisation of business processes. Eden et al. (n.d.) disagree with Subedi (2022) and explain that multinational companies do not have to be necessarily involved for a business venture to be termed as international. According to Eden et al. (n.d.), local business ventures may be involved in cross-border economic activities. Such actions would still amount to international business despite the domestic entities not being multinational. Eden et al. (n.d.) argue that while the term international business is often associated with multinational companies, it may sometimes apply to national business operations done by national companies that have a transnational effect. Grozdanovska et al. (2017) explain that in the traditional sense, the forms of effectuating international business included franchising, joint ventures, establishing subsidiaries, and licenses. Grozdanovska et al. (2017), a license is a permit given by manufacturers or owners of intellectual property to another person to allow them to produce products or services similar to those of the person or company legally entitled to enjoy the intellectual property exclusively. In such a situation, the business granting the license often puts measures in place to ensure that the business it gives the license to produces products similar to what they would produce. Grozdanovska et al. (2017) explain that a business sells the right to another business to allow them to use its name in franchises. The business using the name is given the right to buy and sell products under the trademark and model of the business giving the right The Impact Of Digital Marketing Discussion Paper.
The relationship between digital marketing and online presence.
Chaffey and Smith (2022b) assert that digital marketing cannot be without an online presence. According to the author, digital marketing itself is possible with some online presence. According to Chaffey and Smith (2022b), a company must have a digital presence before it starts the process of digital marketing. Chaffey and Ellis-Chadwick (2019) agree with the above assertion but explain that digital marketing promotes a company’s online presence. According to Chaffey and Ellis-Chadwick (2019), digital marketing allows companies to create enough buzz to improve their online presence. To Chaffey and Ellis-Chadwick (2019), digital marketing and online presence are intrinsically linked, and one cannot talk about one without including the other concept. According to Chaffey and Ellis-Chadwick (2019), one may set to increase a company’s online presence and achieve its digital marketing goals. Similarly, one can set out to achieve a company’s digital marketing objectives and achieve the online presence objective. Bala and Verma (2018) explain that digital marketing concepts such as search engine optimisation (SEO) and search engine marketing (SEM) also help in improving online presence. Piñeiro-Otero and Martínez-Rolán (2016) agree with Bala and Verma (2018) and explain that digital marketing and online presence should not be viewed as separate concepts.
The impact of digital marketing on the online presence of international businesses.
Charlesworth (2014) explains that digital marketing positively impacts an international business’s online presence. According to the author, digital marketing allows international businesses to broaden the target market and ensure that there is maximum engagement with the customers. Further, the digital market gives the customers interacting with the business the opportunity to choose the mode and means of interaction. The traditional marketing methods did not allow the customers to choose the way they wanted to interact with the business. Ištvanić et al. (2017) explain that digital marketing makes interaction with the audience possible. Most digital marketing technologies are active and ensure back-and-forth customer engagement. According to Ištvanić et al. (2017), the data from digital marketing platforms are easily recorded and, therefore, can be easily shared among customers. The recording also means that the data from the digital marketing platforms can be easily accessed from the internet in the future. Digital marketing, especially on social media platforms, can go viral, thereby increasing the online presence of an international business.
The Benefits Of Online Presence On International Businesses
According to Howison et al. (2014); Yaro (2013), online presence in the digital era is important. Howison et al. (2014); Yaro (2013) explains that online presence has benefits, including increased customer reach and engagement. The digital age provides companies and international businesses with digital tools that allow them to bridge the geographical distance between the business and customers in other jurisdictions. Howison et al. (2014); Yaro (2013) explains that digital tools allow customers in other jurisdictions to be accessible. Search engine optimisation tools and other digital marketing tools promote the visibility of the brand’s marketing. Howison et al. (2014); Yaro (2013) further asserts that online presence also improves the credibility of the brands. Most businesses that do not have an online presence are hardly considered to be legitimate businesses. According to Howison et al. (2014); Yaro (2013), the quality of a brand’s website are instant way consumers determine the credibility of the businesses or brands they engage with online. Further, an online presence allows businesses to display positive testimonials that further attract more customers and cement the credibility of the business. According to Howison et al. (2014); Yaro (2013), online presence also ensures cost-efficient business actions. Online presence is less expensive than having a presence in traditional marketing platforms such as print media.
Chen and Yen (n.d.); Mahto and Mohan (2020) explain that online presence is a convenient and flexible way of promoting products. Businesses are able to reach anyone at any time from anywhere in the world. The flexibility is witnessed through the fact that digital platforms accommodate various forms of online presence that meet the demands of various businesses. The businesses only have to model their online presence structure to align with the business that they carry out. Mahto and Mohan (2020) assert that online presence gives businesses the chance and potential for growth. According to Mahto and Mohan (2020), the main benefit of online presence is seeing it grow through increased customers and revenue. The author argues that regardless of the nature of business, the main objective of a business is to make a profit and remain a going concern, and having an online presence allows international businesses to achieve that. An online presence allows businesses to perform their corporate responsibility The Impact Of Digital Marketing Discussion Paper.
The challenges faced by applying digital marketing for the online presence of the international business
Leeflang et al. (2014); Suleiman et al. (2020) assert that while there are several benefits of digital marketing, there are several challenges faced when applying digital marketing. Leeflang et al. (2014); Suleiman et al. (2020) assert that many companies face the challenge of integrity and the lack of a personal touch that is present in marketing strategies such as face-to-face marketing. Leeflang et al. (2014); Suleiman et al. (2020) opine that the main challenge when implementing a digital marketing strategy is the security and privacy of the data of the users that the business engages online or over the internet. Information security is a major challenge in today’s world. Companies or businesses have the challenge of securing and ensuring the personal data of customers and potential customers. Further, businesses are struggling to keep up with the various data protection laws in the many jurisdictions in which they operate. Pasaribu et al. (2022) assert that consumers do not trust many digital marketing tools because they fear their personal data may be collected without their permission. There is a fear amongst many customers that the information that they receive from digital marketing platforms may not be trustworthy. Further, some more traditional customers are yet to accept modern marketing and payment methods. Pasaribu et al. (2022) explain that businesses are therefore forced to invest more to convince customers of their legitimacy instead of promoting their brands or products.
Bhojaraj (2018) argue that it is challenging for businesses to create consistent branding in digital marketing. According to the author, digital marketing results in so many messages being thrown at the customers at a time that it becomes difficult for the customer to keep up with the business brand. Bhojaraj (2018) opines that another problem faced when applying digital marketing is the difficulty in consistently generating leads and maintaining traffic, understanding the market, and having the right budget for the process. Establishing an effective digital marketing platform requires resources in terms of knowledge and technological devices, all of which costs money. Bhojaraj (2018) also explains that managing websites and social media platforms also costs money and requires specific technical knowledge. Some companies may not have enough resources to have the people with the right knowledge to run the websites and social media platforms. Bhojaraj (2018) asserts that some companies do not have the right talent for digital marketing or do not have the right content to share with customers or potential customers. According to Bhojaraj (2018), companies must create the right content to have the customers glued to their websites and social media handles The Impact Of Digital Marketing Discussion Paper.
The strategies the companies can utilise to mitigate the challenges faced while implementing digital marketing to increase online presence
Poorani et al. (2021) assert that to mitigate challenges faced while implementing digital marketing to increase online presence, companies must be strategic and act swiftly to capture the changes in the market. Strategic acting allows the company to adapt to new situations. Poorani et al. (2021) explain that companies must invest in the right technology to ensure that the company website and social media are up to date. Further, the business must employ people with the right knowledge to enable them to achieve their goals. Hien and Nhu (2022) suggest that there is a need for a business to carry out research before implementing any marketing strategy. A similar sentiment is echoed by Putri (2021), who asserts that carrying out research and properly training the staff at a company allows it to succeed in digital marketing. Poorani et al. (2021) also explain that ethical business practices allow a business to do well when mitigating challenges faced when implementing digital marketing. Leeflang et al. (2014) suggest that companies must create avenues of having funds specifically allocated to marketing. According to the author, companies should allocate resources to research and implementation of the right digital marketing tools. Further, the culture of the organisations must accommodate the use of digital marketing. A company’s culture determines whether digital marketing succeeds or fails (Leeflang et al., 2014). Finally, Leeflang et al. (2014) suggest that issues such as data protection and privacy can be adequately handled through a legal team that ensures that all ethical and data protection matters within all the jurisdictions in which the international businesses operate are complied with The Impact Of Digital Marketing Discussion Paper.
Theoretical Framework
According to Varpio et al. (2020), a theoretical framework is a foundational review that provides the road map used for a paper’s arguments. The theoretical framework introduces the theories that explain the subject of study. According to Varpio et al. (2020), a theory is an abstract description of the relationship between widely accepted constructs that help individuals understand a phenomenon. Varpio et al. (2020) explain that theories can be descriptive, explanatory, emancipatory, predictive, disruptive, and sometimes a combination of the named characteristics. According to Mandal (2016), the theories that provide an understanding of the concept of digital marketing include the market segmentation theory, relationship marketing theory, and customer led positioning theory. The section situates the digital marketing process within the above-mentioned theories and provides a foundation on which subsequent discussions are carried out.
The Market Segmentation Theory
According to Brüchert and Kaniki (2021); Obong’o (2020), the market segmentation theory is credited to John Mathew Culbertson. According to Brüchert and Kaniki (2021); Obong’o (2020), John developed the theory in 1957 as an economic theory. Brüchert and Kaniki (2021); Obong’o (2020) argue that the theory stipulates that companies sell their products in a heterogeneous market but have the opportunity to act and maximise their sales. According to Brüchert and Kaniki (2021); Obong’o (2020), a heterogeneous market means that within the market that a company sells, there are small groups of people who share more characteristics than others. These different groups, for varying reasons, want to purchase different products. Brüchert and Kaniki (2021); Obong’o (2020) explain that the market segmentation theory stipulates that a company can reach small groups within a large market by dividing them along the shared characteristics The Impact Of Digital Marketing Discussion Paper.
According to Mandal (2016), the market segmentation theory stipulates that to serve the customers better; the market must be divided along some similarities. The author argues that the presence of technology allows companies and other businesses to compile and have data on potential customers, which the companies then use to profile them and divide them into segments. Eze (2015) argues that market segmentation allows business owners to classify customers into groups of people with shared characteristics. Eze (2015) argues that dividing customers into groups with common traits allows businesses to meet the customers’ needs and have a competitive advantage. To Eze (2015), market segmentation theory is a proactive measure the business takes to identify the market segments it can best serve. According to Mandal (2016), market segmentation theory provides companies with the framework they can use to identify the right group of customers and adequately address their needs. According to Mandal (2016), market segmentation is a tool that can be used to help companies have a competitive advantage over their competitors.
While the market segmentation theory is lauded for its benefits, Brüchert and Kaniki (2021) argue that market segmentation, in reality, may result in planned exclusion. According to the authors, market segmentation theory does not explain how to deal with the remaining group within the market that has no characteristics relevant to the products the business is selling. Despite the shortcomings of the theory, it serves digital marketing well by allowing businesses to use only the platforms that reach their intended market The Impact Of Digital Marketing Discussion Paper.
Relationship Marketing Theory
According to Christopher et al. (2013), relationship marketing theory stipulates that marketing aims to attract, develop and maintain customer relationships. Christopher et al. (2013) argue that the theory is more concerned with the social network that results from the marketing process. The theory stipulates that relationships are maintained through mutual exchange and the keeping of promises. Sheth et al. (2015) argue that the relationship marketing theory can not be credited to a single person or author as several people contributed to its development. According to Mandal (2016), the relationship theory prioritises customer loyalty and has such explains the highly interactive and personalised marketing strategies used on digital platforms. The regular and frequent communications that characterise the digital marketing process align with the relationship marketing theory. According to Mandal (2016), the relationship theory allows customers to receive information that is relevant to them. According to Mandal (2016), the theory explains how business tailors their messages on digital marketing platforms such as social media.
Customer-Led Positioning Theory
According to Mandal (2016), the customer-led positioning theory stipulates that companies must aim to forge a specific image of their products in the minds of the customers. Mandal (2016) asserts that, unlike traditional marketing processes, digital marketing platforms allow customers to customise their experience. The digital retail experience of the customers positions the products within their minds. Slater and Narver (n.d.) argue that customer-led theory focuses on the needs of the customers and aims to provide them with a fulfilling experience. According to Slater and Narver (n.d.), the theory of customer-led positioning allows for surveys and interviews by companies and businesses to ascertain the needs and wants of their target customers and thereafter produce services and products that meet these wants and needs. Slater and Narver (n.d.) argue that the theory benefits companies and businesses with the framework or tool to create a close connection with the customers. Despite its strength, Slater and Narver (n.d.) assert that the theory has a downside. Slater and Narver (n.d.) assert that while the theory seems sensible and compelling, it has the shortcoming of being reactive and only applies to short-term outcomes. It does not result in generative outcomes but adaptive outcomes. As such, the author is of the opinion that the theory is not futuristic and focuses on the now and not what will happen in the future. Slater and Narver (n.d.) argue that the theory application is limited to businesses with short-term objectives, not long-term ones The Impact Of Digital Marketing Discussion Paper.
The Social Presence Theory
While the theories discussed in the previous sections align more with digital marketing, the social presence theory explains the online presence construct. According to Oh et al. (2018); Yaro (2013), the social presence theory stipulates that a social presence is an important in ensuring effective online interaction, which is the basis of an online presence. According to Oh et al. (2018); Yaro (2013) asserts that the quality of the communication device itself determines the social presence. Accordingly, the quality of the media chosen determines the nature of the social presence that an organisation experiences. Oh et al. (2018); Yaro (2013) defines social presence as the visual, auditory, and physical contact a person or brand can achieve through media. While physical distance affects the intimacy level of such contact, the distance can be narrowed or bridged through the use of media that allows the parties involved to express themselves more freely. Oh et al. (2018); Yaro (2013) asserts that the theory forms the basis of an online presence as modern businesses rely on its principles to ensure that they succeed in the digital era.
Digital Marketing Models
According to Leeflang et al. (2013), marketing models are tools that merchants or people in the marketing field use to strengthen their position in the field. Marketing tools provide the framework that individuals can use to rationally evaluate how they are doing compared to their competitors in the market. According to Leeflang et al. (2013), marketing models are created around the concepts of communication and human behavior The Impact Of Digital Marketing Discussion Paper.
The Honeycomb Model
According to Deng and Chiu (2023), various models have been suggested to work or be suited to digital marketing. Key among the models is the honeycomb model. According to Ouirdi et al. (2014); Zajmi–Rugova (2015) asserts that the honeycomb model was developed by Kristopher Hermkens, Jan Kietzmann, and Ian McCarthy, who are Canadian professors. According to Ouirdi et al. (2014); Zajmi–Rugova (2015), the honeycomb model was designed specifically for social media. Ouirdi et al. (2014); Zajmi–Rugova (2015) explains that the honeycomb model is called because of its hexagonal shape that looks like a honeycomb. Another reason for the name is because it was modeled after the hexagon framework developed by google to trace customer actions. Ouirdi et al. (2014); Zajmi–Rugova (2015) explain that it entails seven components; Identity, Relationships, Presence, Reputation, Groups, Conversations, and Sharing. The components do not articulate the customer’s journey. According to Ouirdi et al. (2014); Zajmi–Rugova (2015), identity refers to the extent to which the users of social media reveal themselves, relationships refer to the degree to which the users of social media relate to each other, presence relates to the degree to which the users of social know that other users exists, and exchange refers to the degree to which the social media users share content amongst themselves. According to Ouirdi et al., (2014); Zajmi–Rugova (2015) conversations refer to the extent to which the users exchange information or communicate with one another, groups refers to the communities that the users of social media form, while reputation refers to the standing of the social media users and the content that they post.
According to Silva et al. (2020), the model provides the framework that marketers can use to focus their energy on the most important elements of social media. The framework can be used by marketers and other parties in the digital market, social media users’ habits, and structure digital marketing projects aligning with the target audience’s behavior. Silva et al. (2020) explain that the model allows social media marketers to spread good content and reduce the cost they use to carry out marketing on various social media platforms. Silva et al. (2020) explain that the honeycomb model has four phases; the first phase is connecting; in this phase, the marketers and their agents connect with their target audience through various social media platforms. The phase is more of finding your target phase. The second phase is the engagement phase. In the engagement phase, the marketers converse with the target audience. The third phase is the conversion phase. In the conversion phase, marketers turn their audience into leads or customers. Silva et al. (2020) explain that the fourth phase is the measure phase, where the marketers take stock of the progress made.
The RACE Model
Rautela (2021); Sestino et al. (2021) assert that the RACE model is traced to the work of Dave Chaffey and was launched around 2010 and was later modified in 2012 and 2015. The model stands for Reach – Act – Convert – Engage. Rautela (2021); Sestino et al. (2021) that the model is ideally a four-stage model, with an additional planning stage. At the planning stage, the marketers or companies identify their key performance indicators in the marketing field, carry out their segmentation process and identify their audience. Rautela (2021); Sestino et al. (2021) assert that in the second phase or stage, which is the reach stage, the marketers get the brands known on the internet. The brands and the markets achieve the above through the use of tools such as search engines, social networks, and blogs. At the act stage, the marketers get the target audience to interact with the service or products they offer. At the acting stage, the marketers make the online users understand the brand’s proposition and position. At the conversion stage, digital marketers persuade online users to become their customers. At the engagement stage, digital marketers make customers loyal to their products. Rautela (2021); Sestino et al. (2021) assert that the model is important because it allows digital marketers to have key performance indicators at every stage of marketing.
The STDC Model
Jílková (2019) asserts that the STDC model was developed by marketing evangelist Avinash Kaushik, who has authored several books on digital marketing. According to the author STDC stands for See-Think-Do-care. Jílková (2019)asserts that the model operates from a consumer perspective and therefore describes the intent of the target audience and not the intent of the businesses. The model emphasises getting the message out there and getting it right. At the see stage, the marketers carry out conversations with the target audience and amplify the brand’s presence on the internet. At the thinking stage, the click rates are examined. The Do stage involves conversion and checking customer loyalty. Care involves the likelihood of recommending and also the likelihood of becoming a repeat customer.
Research Methodology
The study relies on a desk research approach; it relies on already published reports, journals, and working papers as sources of information for the study. The data for the study was collected through a literature review. The study adopts mixed- a method approach. The mixed-method approach accommodates the use of numerical and non-numerical data collected from secondary sources. The mixed approach was adopted because it allowed the researcher to combine the strengths of qualitative and quantitative approaches (Morse, 2016). The mixed approach also promotes confidence in the data collected, is easy to generalise, can be contextualised, and is more credible (Wasti et al., 2022). A mixed method is also more trusted.
Data Analysis
The research adopted thematic and content analysis to analyse the data collected from the literature. The thematic and content analysis were used to identify patterns, similarities, and commonalities within the data. Content analysis was also used to quantify the number of times certain phrases or themes appeared in the data collected (Jaspal, 2020)The Impact Of Digital Marketing Discussion Paper. While thematic analysis was used only on the qualitative data, the content analysis was used on both the qualitative and quantitative data (Maguire and Delahunt, 2017). The thematic analysis was used to situate how themes in the data collected relate to one another and how they are manifested. Content analysis, on the other hand, was useful in explaining the characteristics of the data collected (Vaismoradi et al., 2013). Content analysis was also used to quantify the qualitative data and inform on the theoretical claims made within the data collected.
Ethical Consideration
The ethical considerations throughout the research included the fact that all sources used were properly acknowledged through the referencing style allowed by the school. The study reasonably presumed the consent of the people who participated in the initial studies that formed part of the secondary resources that it used (Hasan, 2021). The research also used the data in a manner that did not cause distress to the people who participated in the initial research (Irwin, 2013). Further, the data were de-identified, and any information that could allow the reidentification of the participant was anonymised.
Research Philosophy
The study adopts a post-positivism approach because it accepts methodological pluralism. It allows for a mixed-methods approach to study. The philosophy recognises that researchers are always biased in their collection and analysis of studies (Krauss, n.d.). The philosophy accepts that researchers cannot act independently of their past experiences. The philosophy is important in the current study because it allows the researcher to acknowledge that there may have been biased findings in the studies that the current paper relies upon.
Limitations
The main limitation of the research methodology is the fact that the paper solely relies on secondary sources. The secondary sources, however recent, are not up to date on the day-to-day happenings on the subject of study. Further, the secondary data may be biased and, therefore, not be a true reflection of the status of the phenomenon under study. Another limitation of the secondary research used here is that it may not adequately answer the research questions the paper set out to answer. The literature had different objectives that may differ from the current study.
Research Findings And Analysis
The study sought to determine the relationship between digital marketing and online presence, the impact of digital marketing on the online presence of international businesses and the challenges and strategies that are utilised during digital marketing for the online presence of the international business. To achieve the above-mentioned objectives, the study relied on secondary data from previously published data on the subject of discussion. From the literature reviewed, the study determined that while various authors have different definitions of digital marketing, they all agree that digital marketing entails the use of digital platforms to market products. Similarly, the pieces of literature reviewed on the conceptualisation of online presence concur that online presence entails a brand availing itself on digital media platforms.. On the other hand, the paper found that international business mainly involved economic activities across two or more jurisdictions. In the definition of international business, the paper found out that two elements must be present; economic activities, and economic activity must occur in more than one political territory (Subedi, 2022). The table below indicates the various definitions of digital marketing and online presence provided by various authors in the literature reviewed
| Digital Marketing | Online presence | International Business |
| This entails carrying out company or business marketing activities through the use of digital technologies (Desai, 2019). | the deliberate process of availing digital media through different digital search engines | business entails the trade goods and services, technologies, knowledge, and capital on a transnational scale (Subedi, 2022). |
| The process of achieving a business’s marketing objectives through digital technologies. | Online representation of a business or company and its associated brands | multinational companies’ internalisation of business processes (Subedi, 2022). |
| The employment of digital technologies to improve customer knowledge of particular products (Chaffey and Ellis-Chadwick, 2019). | All the activities a business entity has under its name on the internet (Sharma et al., 2020). | Business operations done by national companies that have a transnational effect |
| The use of flexible, cheap tools technology provides to market products (Dwivedi et al., 2021). | The appearance of a business entity on search engine results, a brand’s website or portal, a business’s social media presence, online advertisement, a mobile business app, and communication made via email (Ali and Nasr, 2016). | |
| leveraging digital technologies to ensure that a business is aware of itself and the products it sells | using social platforms such as Twitter and Facebook to communicate with the target market | |
| a marketing style that departs from traditional marketing and uses digital channels (Yasmin et al., 2015). |
The paper found that despite the variations in the various authors’ definitions, there was an underlying thread that connected all their understanding of digital marketing and online presence. For digital marketing, the use of digital tools was the common ground, while for the online presence, the internet was the shared thread that brought all the definitions provided together.
The paper also found that digital marketing and online presence are two closely connected concepts that, by doing one, a business may achieve the other. The study found that businesses often set out to achieve one of the two and end up having the two (Chaffey and Ellis-Chadwick, 2019). The study found that it is difficult for a business to use digital marketing as a marketing tool and fail to have an online presence. Accordingly, whichever objective the business sets out to achieve, in most cases, it ends up having two. The study also found that digital marketing positively impacts online presence; digital marketing improves the visibility of the brands or businesses that apply and therefore improves the businesses’ online presence. It was also determined that digital marketing platforms allow customers to customise how they want to interact with international businesses online The Impact Of Digital Marketing Discussion Paper.
On benefits of online presence to business, the study found out that online presence has the benefit of increasing the level of customer reach and engagement, allowing businesses to bridge the geographical distance between them and customers in other jurisdictions, improving the credibility of the brands, ensures that the business actions are cost-efficient, provides convenient and flexible ways of promoting products and helps businesses grow through an increase of customers and revenue. It was the study’s finding that implementing digital marketing to influence online presence is complex and has several challenges. Some of the challenges that the paper identified include; inadequate integrity and the lack of a personal touch that is present in marketing strategies such as face-to-face, security, and privacy of the data of the users that the business engages online or over the internet, consumer distrust, inconsistency in branding in digital marketing, and inadequate human, technical and financial resources (Bhojaraja, 2018; Leeflang et al., 2013; Pasaribu et al., 2022; Suleiman et al., 2020). On how to address the challenges, the study found that businesses can do the following; strategic planning, carrying out proper research, abiding by ethical business practice standards and laws regulating businesses, and allocating enough resources towards digital marketing and online presence. Further, businesses must have cultures that accommodate digital marketing.
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The study also examined the theoretical foundation and underpinnings of digital marketing and online presence. It also examined the models that business use in digital marketing. The findings are contained in the tables below.
| Theories of Digital Marketing | Short description | Application | The shortcomings of the theory |
| The Market Segmentation Theory | The theory argues that a company can reach small groups within a large market by dividing them along the shared characteristics. Further, to serve the customers better, the market must be divided along with some similarities (Brüchert and Kaniki, 2021). | Allows businesses to serve the customers better by understanding what each group needs | may result in planned exclusion (Brüchert and Kaniki, 2021). |
| Relationship Marketing Theory | The theory asserts that the main objective of marketing is to attract, develop and maintain customer relationships (Mandal, 2016). | Allows businesses to tailor their messages to digital marketing | Only focuses on the business and not the customers. |
| Customer-Led Positioning Theory | Asserts that companies must aim to forge a specific image of their products in the minds of the customers | It is a tool for creating close connections with the customers | not futuristic and focuses on the now and not what will happen in the future (Slater and Narver, n.d.). |
Table 1. Digital marketing theories
The table below shows the findings on online presence
| Theory | Description |
| The social Presence Theory | social presence is importance in ensuring effecting online interaction which is the basis of online presence |
Table 2. Online presence theory
The table below shows the digital marketing models that digital marketers use to market their products and services.
| Digital marketing Model | Description |
| The Honeycomb Model | provides the framework that marketers can use to focus their energy on the most important elements of social media (Ouirdi et al., 2014). |
| The RACE Model | It is a model that allows digital marketers to have key performance indicators at every stage of marketing (Rautela, 2021). |
| The STDC Model | the model operates from a consumer perspective and therefore describes the intent of the target audience and not the intent of the businesses (Jílková, 2019). |
Table 3. Digital Marketing Models
Discussion
From the study findings, it is evident that digital marketing is not only a concept but also a tool that is employed to achieve marketing goals. It can be inferred from the findings of the study that digital marketing as a construct involves the business initiating a process through which they create awareness about their brand through digital platforms. Therefore, for a business to adopt digital marketing as a tool to promote itself, the cultural practices of a company or business entity must accept the use of technology in the promotion of business (Dwivedi et al., 2021). It may, therefore, be inferred that digital marketing is a shift in the marketing culture from traditional marketing methods to technology-centered ways of promoting products. From the data gathered on the subject of study, it is evident that online presence is closely related to the social presence in the context of the relationship between customers and businesses. The data indicates that online presence mainly involves a brand’s auditory, visual and physical presence within online spaces that potential customers may use. To this extent, the study can adequately conclude that digital presence may be a means to achieving an online presence. Arguably, digital marketing allows brands to have an auditory, visual, and physical presence of a brand within online spaces. Examined from a presence point of view, one may conclude that online presence is the same as digital marketing (Desai, 2019). The confusion worsens when the concept of digital marketing is examined from the point of the tools that are used to achieve the two concepts. The tools are the same. The only point of divergence between the two concepts is the purpose for which they are done; digital marketing is for marketing, while online presence is to increase the visibility of a brand online. Even with slight divergence in functionality, it is worth mentioning that the overall objective of the two concepts is to increase the number of customers purchasing services and products that a company or business sells and increase its revenue.
It is discernable from the literature reviewed that international business only exists where economic activity is being carried out across two or more jurisdictions. From the data collected, it is inferable that a local business operating online can have an online presence in jurisdictions other than that which it should legally operate. While it is clear that such online presence can be monetised and become an economic activity across borders, it is unclear how the practitioners in the field, including the governments, consider such operations. The findings of the data show that such an operation, by all means, meets the requirements of being considered an international business despite not being registered by the authorities to operate as such (Subedi, 2022). Therefore, the study’s informed conclusion is that the use of digital tools in business presents grey areas that are yet to be adequately addressed by the authorities.
On the relationship between online presence and digital marketing, the data collected reveals that the two may be one and the same thing, just termed differently to effectuate a specific functionality at a given time. Accordingly, the study discerns that an action on one of the constructs, either digital marketing or online presence, in most cases automatically leads to an action in the other one (Chaffey and Ellis-Chadwick, 2019). Therefore, it can be presumed that the construct of digital marketing and online presence are the same but referred to differently when tperforming When the impact of digital marketing on online presence is examined, it reveals that digital marketing positively impacts a business’s online presence. Digital marketing increases the visibility of a product, ensuring that those who use the internet are aware of the services and products that a brand has on offer. The data collected shows that online presence in the digital era provides many benefits to businesses. Some of the benefits include inter-jurisdictional accessibility. Arguably, all the benefits that online presence brings to a business are geared towards ensuring that it has so many customers on its online platforms and that these customers end up purchasing the services and products that the business sells. It is only prudent that the paper concludes that the main aim of online presence is to increase the revenues of a business.
Anything good has its challenges. Operating a business itself has its challenges. The application of digital marketing for the online presence of international businesses also has its challenges. Some of the challenges identified by the study include security and privacy of the data, consumer distrust, inconsistency in branding in digital marketing, and inadequate human, technical and financial resources. It is evident from the above finding that the application of digital marketing for the online presence of an international business may be a business venture on its own; it requires capital, regulations, and ethical boundaries. It also may require a great leader to see it through. Most of the challenges that faced the process are challenges that can be addressed through strategic business actions. Strategic business actions that include proper allocation of resources to the process. Resources in the above context refer to financial, human, and technological resources, all of which come together to ensure the process’s success. It is only prudent that the study concludes that the human resources here include great leaders and people with the technological know-how to successfully apply digital marketing for the online presence of an international business The Impact Of Digital Marketing Discussion Paper.
The literature on the theoretical framework reveals that several theories explain the relationship between the constructs under study. From an examination of the market segmentation theory, relationship marketing theory, and customer-led positioning theory, it is evident that whatever the business does in digital marketing, the business must understand the needs of the customers and put in place measures to ensure that it creates a relationship with the customers (Mandal, 2016). The business needs to understand the customers’ needs if it is to serve them better. Creating a relationship ensures loyalty. The models that are used in digital marketing indicate that the process of digital marketing is a planned process that entails several stages. Regardless of the model, each stage serves an important role, and businesses must follow them. The models provide digital marketers with detailed step-by-step procedures that they can use to ensure that they succeed in the process of digital marketing. An examination of the Honeycomb Model, The STDC Model, and the RACE Model indicates that international businesses must identify their objectives and, after that, put in place key performance indicators to ensure that they measure their success in digital marketing (Jílková, 2019; Rautela, 2021; Silva et al., 2020). It is inferable that each business must choose the model that better fits its business strategy. Despite all the models applicable to digital marketing, they are all suitable for certain business strategies and outcomes.
Conclusion And Recommendations
In conclusion, it is evident that digital marketing is important in improving the online presence of a business. The online presence of a business is important because it improves the credibility of the business, increases the visibility of brands, and increases the number of customers that a business has. The overall objective and purpose of online presence are to improve the revenue that a business collects from its operations. Evidently, no business would focus on having an online presence if it would not help it achieve its core purpose of making profits. The close relationship between digital marketing and online presence makes it difficult to accurately determine how each impact the other. Further, online presence on its own is not the end product that the business entities require; online presence is a means to an end. Online presence is a means to ensure that the business increases its customer base and, finally, the profit margins. Examined as the same concept termed differently depending on the purpose that it serves, online presence or digital marketing mainly serves the purpose of ensuring that a business achieves its corporate purposes. The study also concludes that digital marketing performs the same function as traditional marketing. Businesses must also be strategic in their application of digital marketing for online presence. An international business with operations in multiple jurisdictions needs digital marketing and online presence to adequately compete and have a competitive advantage in this digital era.
The study recommends that future studies on the subject focus on a single concept and not both digital and online presence simultaneously, having determined that the two concepts are intrinsically connected. Focusing on a single concept will allow future studies to limit the number of variables considered during the study. The study also recommends the use of primary data in the future. The secondary data used in the current study has the shortcoming of containing the personal views and biases of the authors who wrote them (Ajayi, 2017; Prada-Ramallal et al., 2018). Further, the secondary data does not capture the more recent developments in the field, however recent they are. The primary data are collected from individuals who have had personal interactions with the construct under study and are in a better place to identify the recent development on the subject. Further, primary data is free from the bias and personal views of people (Ajayi, 2017; Prada-Ramallal et al., 2018). another benefit of primary data is that it directly addresses the research question that a study is asking. Secondary data may not directly answer the research questions that a study puts forward, as the methodologies that were used in those studies were meant to answer different research questions (Ajayi, 2017; Prada-Ramallal et al., 2018). All a researcher can do is find the studies or secondary data that closely answer their research questions and make inferences from there. The result is that the secondary data may not be the appropriate data to be used to answer research questions; it may aid in creating a background for the study, but primary data still beats it when it comes to objectivity The Impact Of Digital Marketing Discussion Paper