Article on digital marketing strategy

ARTICLE ON DIGITAL MARKETING STRATEGY

Abstract: The paper presents the economic concept of marketing strategy formation in

dynamic conditions of the digital space of market communications. The presented model

The presented model of optimum strategy formation is based on the continuous cycle of Key success factors priority setting.

Factors of Success: analysis of the situation - the projection of multiple factors in the quadrants of the SWOT-analysis -

definition of priorities (positioning) - formation of product and market strategy to increase

economic value of the business.

Keywords: marketing, product and market strategy, positioning, key success factors,

digital communications, business value.

Abstract. This article presents economic concept of marketing strategy formation in dynamic environment of digital

marketing. A model in this article describes formation of optimal strategy based on continuous cycle of determining

key success factors: situation analysis - description of factors in SWOT-analysis - determining priorities - formation

of product-market strategy leading to increased valuation of a company.

Keywords: marketing, product-market strategy, positioning, key success factors, digital communication, company

valuation.

Continuous growth of a share of the digital space of market communications causes modern

Trends of change in the components of the marketing mix as follows:

- Increase in the supply of information services in relation to the volume of commodity products;

- a decrease in the price of information services (down to zero value);

- increase in the share of information means in the structure of the sales channel;

- increase in the share of information means of communication in the promotion of goods and services.

Conclusion: the development of digital technology contributes to the expansion of the range of information services

relative to the basic product offering and contributes to the effectiveness of marketing

relationships by reducing the unit cost of attracting and maintaining relationships with potential

consumers of the enterprise's products, as well as increasing the efficiency and productivity of

research on the sensitivity of demand preferences to the development of basic product offering functions

[1, 4].

The model of business value assessment taking into account the potential of relationship marketing can be expressed

by the following elements:

- The residual value of the current assets of the business;

- the forecasted discounted cash flow (profits from the sales of the basic product offering

to the "real" segment of consumers);

- the potential (coefficient) of profit growth (based on the "relationship leverage" as a result of the development of the basic

of the product offer, satisfying the demand of the "potential" segment of consumers).

Thus, the profitability of business is caused by the current market potential of the enterprise (the basic

product offer to the real segment of consumers) and the potential of development (on the basis of

marketing relations as a result of modification of product offer for the "potential"

consumer segment). This model does not contradict the existing approaches to the valuation of

business based on: costs (asset valuation), the market value of the shares of a public company,

potential cash flow. But at the same time it allows to estimate and explain the cost factors

of modern companies with a high rate of market capitalization.

Taking into account the described value concept, the marketing strategy includes:

The product component, reflecting the strengths and weaknesses of the product offering

a set of Key Success Factors, reflecting functional attributes

(consumer properties) of the objects of the basic product offering;

a market component reflecting the opportunities and threats of market relations with the

a set of the Key Success Factors, reflecting the impact of the competitive supply

of the real and potential consumer segments.

The formation of the marketing strategy is based on the business strategy which can be defined in

the following coordinates of the information market space "Growth - Development - Concentration" (which

corresponds to the coordinates of the product market space "Cost Leadership - Differentiation -

Focusing").

The methodology of marketing strategy formation includes the following stages:

1) formation of a set of CFCs, reflecting the attributive factors (consumer properties)

of product offer [1, 2];

2) research of sensitivity and demand preferences of consumer segments through

information service provision (explicitly or implicitly connected with consumer properties

properties of the basic product offer)

3) formation of a set of CFCs, reflecting the strength of market relations with real and potential

consumer segments;

4) projection of KFC set in quadrants of SWOT-analysis (based on expert marks of "Importance" and "Satisfaction

of "Satisfaction" by KFC values);

5) prioritization of "moving" the IFIs from the "Weakness-Threats" quadrant to the "Strength-Opportunity" quadrant (based on the adjustment of their "Importance" and "Satisfaction" relations with due consideration of

connections - rank correlation);

6) selection of a subset (priority) of CFC, determining the strategy of positioning of the enterprise;

7) taking into account the priority TFC - development of the product offer and market relations with the segments of

consumers;

8) transition to point 2.

Thus, the presented model of marketing strategy formation in the information space

is based on CFC of the product component (which reflects strengths and weaknesses of the

of enterprise's product offerings) and CFC of market component (reflecting the opportunities and threats

of market relations with consumer segment). The principle of optimal choice of strategy on a set of

of alternatives is based on projection of CFC in quadrants of SWOT-analysis and determination of CFC priorities with

taking into account expert estimates of "Importance" and "Satisfaction" of their values as well as correlation of ranks

OF KFC.

List of references

Arenkov I.A., Naumov V.N., Seredoho V.A., Yuldasheva O.U. Marketing and Management of Consumer Value.

Value. St. Petersburg: AMKOS Publishing House LLC, 2013.

2. Marketing of interaction : textbook / Arenkov I.A., Domnin V.N., Kozeichuk D.A. [et al]. SPb. : Publishing house.

SPbSEU, 2012. 710 с.

3. Solov'eva Yu.N. Management of marketing competence: Textbook / Under scientific ed.

Scientific editor and senior expert of the Russian Federation G.L. Bagiev. St. Petersburg: Asterion, 2015. 286 с.

Yuldasheva O.U., Yudin O.I., Prokoptsov V.E. Marketing strategies for business modeling //.

Problems of modern economics. 2012. № 4. С. 235-238.