Traditional Vs Digital Marketing

“The key question is not whether to deploy internet technology – companies have no choice if they want to stay competitive – but how to deploy it”


Every business (small or large) has to become an e-business to remain competitive. The level of digital disruption can vary between industry however hospitality, retail, and media sectors fear being put out of business more than utilities, oil and gas sectors (Wade, 2011).

Companies have been adapting to the online world for many years, some have been successful and others have failed to transform in time. To digitally transform a business it does not simply mean to improve e-commerce activities. A good example of this was seen in a case study between “Jessops vs Kodak”, not only was online sales opportunity missed, but also the digitalisation of products (camera Wi-Fi) (Mui,2012).

Digital transformation can take place in the following areas:

  • Business Model (How to make money)
  • People (training, HR..)
  • Structure (how you are organised)
  • Processes (how you do things)
  • IT capability
  • Engagement (staff, customers, suppliers. Etc)
  • Offerings (Products, Services.)

To find a balance between both types of marketing, especially when budgets are limited, companies need to consider the following key factors: market reach, ROI and which type has the most measurable level of response. Digital and traditional marketing can work together, for example Billboards can drive online presence, and websites can increase the foot flow “in-store”(bricks and mortar).

Telecoms company Xiaomi managed to rapidly grow their business by adapting to new technology, allowing the company to surpass existing competition. The online approach took less investment than traditional bricks and mortar, and it gave them much faster access to tier II, III cities.

“We don’t invest in traditional marketing. We live on social media which is a lot less expensive to us”


Benefits of having online presence:

  • Online 24/7
  • Information Exchange
  • Credibility
  • It Cuts Costs
  • Market Expansion
  • Consumer Insights
  • Advertising
  • Competitors Online
  • Customer Service Online
  • Growth Opportunity

Since achieving majority market share the company has started to advertise on TV, and in print. Now they have good distribution and economies of scale, the companies next stage is to build the brand in different areas.


Marketing Budget

Your marketing budget and return on investment (ROI) go hand in hand. Your marketing budget determines exactly how much money you have to play with, and exactly where to spend it.
“Marketing strategy is where we play and how we win the market. Tactics are how we deliver on the strategy and execute for success”(Mark Ritson)
Before deciding the marketing budget, you will need to research the following areas:

• Industry and market research
• Competitor Analysis
• Marketing audit
• Internal marketing

Performance records

Every business is different. First calculate your expenditure then you will be able to then determine your revenue, only at this point you can consider what percentage forms your marketing budget.
Serena Humphrey, Managing Director at F Word Training, advises:
The average of marketing spend should be between 10% and 15% of your turnover.
However, for start-up companies, more of your total revenue / forecast should be considered within your marketing budget. If you are just getting off the ground, allocating more money to boost your business and build and brand for itself is very important in the early days.
Areas to include within your marketing budget include:

• SEO and content marketing
• Your website
• Email marketing
• Print advertising
• Social media
• PR and media
• Event marketing
• TV/ Radio

Yellow Tree Studio do believe in using the complete mix of marketing, however (of course!)..the main players should be your content marketing and SEO, your social media marketing, and your email automation strategy.

Drawbacks to traditional marketing:

• Little Interaction
• No Control Over Timing
• Higher Costs
• Limited Customization Options
• Cannot Be Easily Updated
• Inability to Disclose Full Pricing Details
• Poor Campaign Measurement

Digital marketing is the best way to increase exposure and outreach. Your marketing budget and plan should include a pool of resources and time to devote to this. Online market places accounted for fifty percent of all ecommerce sales in 2019, a number which is expected to keep growing (Merton,2020). Pre- covid figures have increased dramatically more higher.

“In the world of Internet Customer Service, it’s important to remember your competitor is only one mouse click away.”

– Doug Warner
Digital Transformation

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