Competitive Pressure Drives Digital Marketing Efforts

26 September 2020 by 51240 comments Business 405802 Views
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As revealed by our study, external competitive pressure plays the most prominent role in a firm’s decision to utilize digital media for marketing purposes (56% of surveyed managers rated it as important or extremely important). Internal efficiency represents the second-most influential factor (49% of managers) driving firms to adopt digital marketing strategies, followed by the facilitation of top-down directives (13% of managers).

Digital social media brings several advantages to firms. Ainscough and Luckett (1996), for example, argue that the Web can be used for publishing, online sales, market research, and customer support. Other scholars contend that the Web can assist in brand building, generating word-of-mouth communication among consumers, buzz marketing, and crowdsourcing (Whitla, 2009). In addition to helping with the execution of marketing strategies, the Internet may improve the firm’s overall performance (Eid & El-Gohary, 2011).

Managers rely heavily on digital marketing to build their brand (82% of surveyed managers rated it as important or extremely important), improve knowledge (78% of managers), and heighten communication flows (70% of managers).

Because social networks are largely based on user participation, it was reasonable to expect that the promotion of social activities would emerge as a key motivator for firms to become involved with social media.

However, only 41% of respondents define the promotion of social activities as the primary driver for their digital marketing efforts. In addition–—and contrary to the findings of Kaplan and Haenlein (2010)–—only 37% of marketing managers recognize an important link between digital presence and internal marketing. These findings suggest that, among the largest Tanzania companies, digital marketing efforts are mainly influenced by external forces.

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