Digital Marketing as a Communication Tool in Emerging Businesses

Digital Marketing as a Communication Tool in Emerging Businesses

Carlos Luis Torres Briones
DOI: 10.4018/978-1-5225-8939-6.ch020
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Emerging businesses face the daily challenge of competing in a world where major brands use their complete artillery to communicate and attract customers, and where small businesses are the most affected, so they should be more intelligent and daring to compete in the daily market. Here, the authors study the theory of digital marketing as a communication tool for emerging businesses and its benefits according to different authors. As a result, they propose the EComPymes model, where the appropriate basic tools for these type of companies are shown; thus, content generation through social media, mobile marketing, and email are the main options, not only for starting a business but competing with low budgets.
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According to GEM (Global Entrepreneurship Monitor) data for 2017, Ecuador has the highest rate of entrepreneurial activity (TEA) in Latin America (29.6%), being the highest in Latin America for the sixth consecutive year. Therefore, it is important to take into account this reality and the importance of good management and effective communication to benefit entrepreneurs.

In this context, the adequate design of marketing combinations involves the four Ps (Product, Price, Place, and Promotion). In the marketing communication’s field, efforts should be coordinated towards the last P of the marketing combination: Promotion (Todorova, 2015). Among these promotional tools, we find advertising and direct marketing, where digital marketing shows significant importance. At this respect, Carniani (2006) mentions that the digital marketing communication is aimed towards achieving outlined objectives, which are active in the communication process, as each communication flow may request an information response from the market. This opportunity returns immediate feedback, so that digital communication can be easily measured at a low cost.

Many emerging business ventures are born with small capital, with the intention of becoming a big brand; therefore, seeking the best means that digital media must turned out to be as the most common and effective as possible. According to Cizmezi and Ercan (2015), the creation of brand awareness is the first and most important stage of marketing communication; thus digital marketing tools have become the most important asset for the interactivity between consumers and businesses.

Reviewing social networking makes us realize the huge amount of products or services offered by this mean, and here we notice that many small businesses or entrepreneurs are just beginning, especially in Latin America and the Caribbean. For Harris and Rae (2009), social networks play a key role in the future of marketing, as they are externally replacing the annoyance of the client with commitment, and internally they allow the transformation from the traditional approach of controlling to an open and collaborative approach. As a result, social networks are more conducive to success in the modern business environment.

Also, blogs are a fascinating interactive media for online communication, which has led many Internet users to post their opinions and share knowledge on various topics of interest (Pal & Kapur, 2010). At this respect, Insights (2018) presents an analysis of the digital state of Ecuador in a study carried out by ‘We Are Social and Hootsuite’ called “Digital in 2018”, in which states that with a population of over 16 million, of whom 13.5 million are Internet users (80% of the population), 11 million (66%) are active users of Social Media.

The goal of this chapter is to study the importance of digital marketing as a communication tool for emerging businesses, and also the commitment of each business to use it properly. We will also try to identify the types of businesses that use this type of communication tool more often, and their results obtained, not only as a brand, but the effect on sales and business growth.

A major concern is to find the degree of knowledge for the correct use of digital marketing tools, is the proper use possible? When stakeholders meet business objectives, they contribute not only to research and academia, but also to the economic sector with query tools for entrepreneurs and business owners.

Key Terms in this Chapter

Twitter: Social network that allows users to send and read short messages of 140 characters known as tweets. You can access Twitter through a web interface, SMS, or a mobile device application.

EComPymes Model: Based on social networks, mobile marketing, and email, it has the goal of generation safe, reliable and trustworthy contents to satisfy stakeholders.

Ecommerce: It is the use of computers to facilitate all operations of firms and clients around the world.

Klout: Website and mobile application which used social networking to qualify its users according to online social influence through the “Klout Score,” which is a numerical value between 1 and 100.

Crowdbooster: It is a tool for monitoring and focusing our actions on Twitter and Facebook. It offers many tools to measure the results and draw conclusions from an online strategy.

LinkedIN: Business-oriented professional social network founded on December 14, 2002 and launched on May 5, 2003. It has more than 500 million users.

Google Analytics: Web analytics tool which belongs to Google company. It provides clustered information about the traffic reaching websites according to audience, acquisition, behavior, and conversions carried out on the website.

Mobile Marketing: Set of actions and techniques of online marketing aimed at mobile devices to attract and retain customers with the use of the internet.

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