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29I INTERNATIONAL JOURNAL OF THEORETICAL AND PRACTICAL
RESEARCH
International journal of theoretical and practical research Scientific Journal
Year: 2022 Issue: 11 Volume: 2 Published: 30.11.2022
http://alferganus.uz
Citation:
Gafurova, F.S. (2022). Digital marketing in the business system. SJ
International journal of theoretical and practical research, 2 (11), 131-141.
Gafurova, F.S. (2022). Digital marketing in the business system.
Nazariy va amaliy tadqiqotlar xalqaro jurnali, 2 (11), 131-141.
Doi:https://dx.doi.org/10.5281/zenodo.7391187
ISSN 2181-2357
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ISJIF 2022:5.962 QR-Article
Gafurova, Faina Semyonovna
Candidate of Economics, Associate Professor of the Department of Economics Fergana Polytechnic Institute
UDC 339.138
DIGITAL MARKETING IN THE BUSINESS SYSTEM
Abstract. The article is aimed at the study of the ongoing digital revolution in marketing. Within the framework of consideration of modern tendencies of development of digital marketing the most actual directions of marketing activity in the Internet are revealed. The development of Internet marketing is closely related to the spread of the Internet and its growing popularity. Particular attention is paid to how the development of the Internet is changing some patterns of consumer behavior. Taking into account the fact that the level of Internet penetration in certain regions of the world is still quite low, and in view of the steady increase in the time people spend on the Internet, it is concluded that in the future we should expect a further increase in the importance of digital marketing. Keywords: digital marketing, marketing trends, social media, social media marketing, advertising.
ЦИФРОВОЙ МАРКЕТИНГ В БИЗНЕС-СИСТЕМЕ
Гафурова, Фаина Семеновна
Кандидат экономических наук, доцент Кафедра «Экономика» Ферганский политехнический институт
Аннотация. Статья посвящена изучению происходящей цифровой революции в маркетинге. В рамках рассмотрения современных тенденций развития цифрового маркетинга выявлены наиболее актуальные направления маркетинговой деятельности в сети Интернет. Развитие интернет-маркетинга тесно связано с
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распространением Интернета и его растущей популярностью. Особое внимание уделяется тому, как развитие Интернета меняет некоторые модели потребительского поведения. Принимая во внимание тот факт, что уровень проникновения Интернета в определенных регионах мира все еще довольно низок, и ввиду неуклонного увеличения времени, которое люди проводят в Интернете, делается вывод, что в будущем следует ожидать дальнейшего повышения значимости цифрового маркетинга.
Ключевые слова: цифровой маркетинг, маркетинговые тенденции, социальные медиа, маркетинг в социальных сетях, реклама.
Annotatsiya. Maqola marketingda davom yetayotgan raqamli inqilobni o'rganishga bag'ishlangan. Raqamli marketingni rivojlantirishning zamonaviy tendentsiyalarini ko'rib chiqish doirasida Internetda marketing faoliyatining eng dolzarb yo'nalishlari aniqlandi. Internet-marketingning rivojlanishi internetning tarqalishi va uning tobora ommalashib borishi bilan chambarchas bog'liq. Dunyoning ayrim mintaqalarida Internetga kirish darajasi hali ham ancha past ekanligini hisobga olgan holda va odamlar internetda o'tkazadigan vaqtning barqaror o'sishini hisobga olgan holda, kelajakda biz raqamli marketingning ahamiyatini yanada oshirishni kutishimiz kerak degan xulosaga kelishdi.
Kalit so'zlar: raqamli marketing, marketing tendentsiyalari, ijtimoiy media, ijtimoiy media marketingi, reklama.
Introduction
With the rapid developments of computer technologies and information and communication technologies, information organizations are facing constant changes and numerous challenges such as the rapid growth of materials, increased user expectations, rising costs, budget cuts, networking demands, competition by database vendors, and complexity in information requirements and demands (Yi, 2014). Currently, the information organizations' operations, services, and resources are greatly affected by mobile applications, "cloud computing, augmented and virtual reality, discovery tools, open content, open-source software, and new social networking tools" (ACRL Research Planning & Review Committee, 2010, Yi, 2014).
New and evolving technologies especially Web 2.0 and Web 3. 0, are being applied in a variety of areas in modern society, and there is no doubt that an information organization will be one of the first organizations using these new technologies (Yi, 2014). At present, there is an increase in the creation and publication of nonprint
BIZNES TIZIMIDA RAQAMLI MARKETING
Gafurova, Faina Semyonovna
Iqtisodiyot fanlari nomzodi, dotsent Iqtisodiyot kafedrasi Farg'ona politexnika instituti
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materials, with online and electronic materials becoming more common and digitization in information organizations is a new trend (Yi, 2014). Information and communication technologies, especially Web 2.0 and Web 3.0, have offered people more choices to have access to information (Yi, 2014). In the information age, the ease of information and the variety of information providers have taken away information organizations' traditional monopoly on information services and resources. Information organizations are not-forprofit organizations and must compete in the areas of service and resource delivery while having competition from other information services' providers and the volume of information available through the World Wide Web. While information organizations do not make profits from their services and resources, those services and resources are still paid for and as a result, information organizations need to obtain positive returns on those investments. In order to achieve this, information professionals need to most effectively market those services and resources to the right users at the right time. This is where marketing can assist information organizations in competing effectively in the new information marketplace.
Definitions and terminology
The term digital marketing emerged in the 1990s when the information and communication technologies developed rapidly. Digital marketing refers to "using all digital media, including the Internet and mobile and interactive channels, to develop communication and exchanges with customers" (Pride & Ferrell, 2013). In the digital age, it is perceived that the digital technologies currently available for all to use will give people the answers to questions quickly. People just click on a button and a whole world of information never before thought possible could be opened up. Nowadays, people turn to the Internet. Therefore, information organizations are having to make changes in the way they operate. They now have to compete with an online presence, and the need to stay relevant. Given the climate, digital marketing, marketing online using information and communication technologies to reach current and potential users and to develop and maintain relationships with them, is seen as an important tool used to streamline the environments and market services and resources in information organizations.
After 2013, the term digital marketing was started to be used worldwide as a common term. Digital marketing is an umbrella term used to describe an organization's online marketing efforts. Organizations and firms use digital channels such as the Google search engine, email, social media sites, and websites to connect with and build a customer base by finding relevant prospective customers. The purpose of marketing has always been to connect and remain connected with your existing audience at the right place and right time while also looking for opportunities to expand the customer base. One of the things any firm does to accomplish this is to be where the audience is. In previous times, this meant that firm representatives had to be on the field all the time and visit physical sites where the customers would generally be. With the onset of more advanced online technology, this means that now most of the audience is spending time on the Internet-- and that is where you need to be. This created a way for digital marketing to enter the scene. To better define digital marketing, it is the advertising activities and promotion efforts of products or services that are delivered through online or digital channels like email, social media, apps etc. The difference between this and traditional
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marketing is that the channels in digital marketing offers organizations an advantage: the ability to analyze the marketing campaigns in real time.
This way, savvy digital marketers are able to see what is working, what is not, and what kind of effect it is having on the masses. To do this, a number of things are monitored by digital marketers. Metrics of what is being viewed, how often is it viewed, how long it is viewed for; what content works, what locations do audiences prefer, where do sales and conversions occur.
One must also learn about the dynamics of your niche audience groups that are targeted or are using the products or services.
Branding assets (logos, taglines, graphics, and
r
1 The company T
1 website
L J
Figure 1. Digital marketing assets
Source: Danny Star (2019) Vision 20/20 "The secrets of digital marketing and its role in growing your business"
Digital marketing also makes use of text messaging, instant messaging, cell phone apps, podcasts, electronic billboards, digital televisions, and radio channels. As an organization that engages in digital marketing, everything from our website to online branding assets is valuable as a resource for digital marketing. On this range of online channels, it is easy to classify everything into two fields: assets and tactics (Table 2),
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because that is the way digital marketers tend to use them. Digital marketers that have a good grip on these have a clear idea of how to use and apply each asset or tactic to get closer to the company's goals.
Table 1. Digital marketing tactics
Search Engine Optimization (SEO) This is the process of making your website optimized in a manner that it shows up higher in the search engine results and thus increases the amount of traffic that your website gets.
Content Marketing This involves two things; the creation of content about your products, services or brand and the promotion of that content to generate brand awareness, increase traffic growth and customers.
Inbound Marketing This type of marketing uses the assets of digital marketing and the theory of push and pull marketing. In inbound marketing, online content is used to attract target customers onto a certain website, or rather; it focuses on pulling customers instead of pushing a message.
Social Media Marketing This refers to the efforts made to promote your brand or portfolio or even your content on social media platforms. The aim is to increase brand awareness, divert traffic to other places and generate a following that can boost your customer base.
Pay per click (PPC) In this method, traffic is diverted to your website every time an ad is clicked because you have paid a publisher to do so. Google Ads is the most common type of PPC service.
Affiliate Marketing This type of marketing functions on a commission system so it is performance-based. Participants who generate sales, leads, or traffic to their partner receive a commission for marketing your products or services on your website.
Native Advertising Native advertising usually refers to advertisements that are focused on the content or open with the content and are present on a platform simultaneously with other content that is non-paid. For example, posts that are sponsored by BuzzFeed are one way to do this but some groups of people also include social media posts as a part of this advertising.
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Marketing Automation Since many actions of marketing have to be repeated continuously such as email, social media, and various website actions-- it is better to have these tasks automated. Thus, 15 marketing automation refers to the software that exists to automate these marketing processes.
Email Marketing : A lot of companies use emails to market their products and services or to communicate with their customers. Through emails, content is usually promoted. Discounts and events are made known to divert people toward the company website.
Online Public Relations (PR) This is similar to traditional PR building. The only difference is that this occurs in the online space. So digital marketers will aim to secure earned online coverage with publications, blogs, and other content-based activities.
Current global trends in digital marketing
According to Datareportal (2021) roughly 4.66 billion people around the world use the internet at the start of 2021 - that's close to 60 percent of the world's total population.
This number is still growing too, with our latest data showing that 319 million new users came online over the past twelve months. Internet users are currently growing at an annualised rate of more than 7 percent, equating to an average of roughly 875,000 new users each day. However, the coronavirus pandemic has had a big impact on internet user research, so actual figures may be much higher.
Most internet users (92.6 percent) use mobile devices to go online at least some of the time, but computers also account for an important share of internet activity. There are 4.20 billion social media users in the world today - equivalent to more than 53 percent of the world's total population. The number of social media users around the world grew by 490 million in the past 12 months.
Globally, social media users are growing at a rate of more than 13 percent per year, with the average social media user having an account on 8.4 different social platforms. GWI (2021) reports that the average global user spends 2 hours and 25 minutes on social media each day, which means the world spends roughly 10 billion hours using social media every day.
Investigating time spent on the Internet, quality of content and it impact on people's life resulted in the introduction of new digital wellbeing tools for the Internet users. The Apple's iOS 12 update - Screen Time feature (Newman, 2019), Google's Digital Wellbeing feature, Facebook's Your Time on Facebook feature and Instagram's Your Activity feature provide analysis on a user's screen time, the number of his daily pickups or time spent daily on a particular social media (Mander & Kavanagh, 2019). This, among other things, somewhat affected a drop of some social media accounts in 2019, as can be
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seen in the Table 1. The global trend of the average number of social media accounts is shown in the table below.
Table 2. Global average number of social media accounts
Global average number of social media accounts
Over time 2013 2014 2015 2016 2017 2018 2019
Global Average 4.3 4.8 6.3 7.6 8.0 8.6 8.5
Gen Z 4.4 4.8 6.9 8.0 9.0 9.7 9.0
Millennials 5.1 5.7 7.4 8.9 9.3 9.7 9.1
Gen X 4.0 4.3 5.6 6.8 6.9 7.1 7.0
Baby Boomers 2.6 2.8 3.5 4.3 5.0 5.1 5.0
Source: Adapted from GlobalWebIndex's flagship report on the latest trends in social media (Mander & Kavanagh, 2019).
Social media marketing
Social media platforms occupy an important position in digital marketing plans, as their potential reach is extremely large. The Figure 1 below presents the global number of active users of top social platforms, based on monthly active users' study. As one of the fastest-growing social media networks, Facebook is still the largest social network worldwide. In the third quarter of 2020, Facebook accounted for 2.7 billion monthly active users (DataReportal, 2021). Their users have the opportunity to share their own experience and, with the help of other users, brainstorm to develop an opinion on a product/service, company, brand, etc. (Akar & Topcu, 2011; Kim & Ko, 2012). Customers are searching for different types of information about organizations, brands, products and services online. According to 2019 State of Conversational Marketing Report, 42% of customers expect an immediate response within 5 seconds, whereas 36% expect a response within 5 minutes, from chatbots (Kilens, 2019). Usually, customers prefer reviews, video instructions, personal experiences of other users and open discussions among social media groups. Digital marketing institute states that 86% of female users consult social media before choosing a product. Other research reveals that 70% of active social network users, before making a purchase, seek additional information about the product or service on social media sites (Kim & Ko, 2012). According to research conducted by Wyzowl (2018), incredible 95% of respondents said that they have watched a video about products or services they were interested in buying and the number of such respondents increased to 96% in 2019 (Wyzowl, 2019). Another research revealed that 94% of customers would remain with the organizations that communicate transparently and clearly (Denis, 2019).
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Using social media networks, organizations can reach their target audience in a simple and fast way. Modern, online customers are seeking for more visual and interactive content, new experience and a higher level of interactivity. Interactive content is more engaging, stands out, grows awareness of a brand and keeps the audience present on the organization's website (Thomson, 2019).
Figure 2. Active users of top social platforms, based on monthly active users, active user accounts or unique monthly visitors of each platform in millions.
Potential reach of advertizing in millions
Pinterest; 442 | Telegram; 500
0 500 1000 1500 2000 2500 3000
Source: Digital 2020: Global digital overview https://datareportal.com/reports/digital-2020-global-digital-overview
Challenges of using digital technologies in digital marketing
One of the biggest challenges of new digital communications is the lack of fundamentals and basic elements of personal connection such as empathy, personal touch, eye contact and the like. Digital and social media addiction is a disease of the new age. Designing for the addiction and ethical aspect of this topic are considered both by engineers and public (Newman, 2019). Changing algorithms is a must. Issues that must be considered in further researches refer to the harmful impact of digital media - how ethical it is to use notifications that are dripping with dopamine or showing the content that misleads the consumer. Also, the need to better know the importance of 'digital well-being' will push a new wave of articles about this topic. A large number of people feel pressure to delete their social media accounts to preserve their real-life and mental health. The development of new software and dashboards for maintaining social media and
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digital addiction requires full attention of the academic community (Slijepcevic et al., 2020).
Conclusion
A digital revolution is underway in the world, which is forcing executives of various businesses to rethink the concepts, strategies and business practices they use. Old marketing concepts and strategies that do not correspond to the new times must be modified or replaced with new, more effective and consumer-oriented ones. Thus, the development of digital marketing is a direct consequence of the evolutionary process of marketing knowledge development. In the new business environment, the victory will go to those businesses that can best curb the nature of network communications by effectively using digital channels to target consumer interactions. One of the most expensive digital marketing channels, Internet marketing, plays a critical role. The development of Internet technologies has a strong impact on marketing activities, because it changes some features of consumer behavior. It can be predicted that in the future we should expect a further increase in the popularity of the use of digital marketing in enterprises and an increase in the amount of spending on it. This is due both to the steady growth of global spending on advertising using digital communication channels, and the prospect of increasing Internet penetration in certain regions of the world, as well as the fact that in recent years there has been a steady increase in the time people spend on the Internet.
To summarize, with the advent of digital marketing the scope and prospects of profit for businesses have increased to a large extent to a large extent, but, from the perspective of buyers, there is still a lack of consumer loyalty, while the inability of buyers to try tangible goods by touch, smell, and taste before making a online purchase can be a serious limitation to getting ahead of digital marketing over traditional methods. Nevertheless, theoretical understanding of why and how to use different channels of digital marketing in innovative economic development is still is still a work in progress.
To conclude our article, we would like to recommend the following four fundamental points, which are very important for the successful development of digital marketing in Uzbekistan:
1. Management of complex relationships with customers through Different channels - both digital and traditional by increasing the number of corporate websites and strengthening social marketing.
2. Initiating dynamic interactions with customers and responding to them through mobile, email, and online marketing.
3. Effectively leveraging big data to accelerate decision making.
4. Enhance geo-targeting and increase services based on location.
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