With the development of a knowledge-based information society, virtualization of business activities has triggered a cultural change where internet is playing the hero in influencing buying decisions.
The trends of digital marketing have shown through the prism of companies competing for achieving sustainable competitive advantages. The effective use of innovative business solutions in competing processes will include using tools such as online communities, Twitter, or cloud technologies. The increasing scope of information technology in the enterprise and virtualization of marketing activities require a balance between security, technological development, business objectives, and growth strategy. The role of virtualization in marketing is to innovatively use the existing infrastructural technology for market activities conducted by companies.
Management virtualization as a value makes customer management easy by shaping and defining effective communication and distribution processes. Virtualization of marketing activities is associated with the implementation of an open innovation strategy of. Entrepreneurs agree that to exploit the potential of external R&D; it is necessary to expand the company’s internal R&D. A new trend has evolved where importance is given to the assessment of the risks to provide customers the authority to access the product in the design phase before the sale.
Another critical factor in the co-creation of customer value is to build trust through transparent communication mechanism. Initially, the idea of open innovation was utilized in the IT sector only. However, today it holds immense importance in companies across industries and vertical markets. Top manufacturers like BMW, 3M, and Adidas are creating online platforms integrating customers into online communities to enable them to share views on the desirable virtualization innovation directives. Leading global brand Procter & Gamble states that their immediate focus is on improving the virtual sets of tools in all new projects and ventures. Virtualization enables the adoption of a 360-degree perspective, where the buyer becomes an active participant in intra-organizational processes. Increasingly, consumers are engaged in the sale process of goods and services, giving buyers a pivotal role involving their participation in the activities of the affiliate networks.
A quantitative survey conducted to determine the dependence of firms on virtualization concluded that 86.2% of companies are dependent on using Internet technologies to explore publications, technical reports, press releases before framing marketing strategies. 83.6% of respondents confirmed that they obtain information about competitors by visiting their websites. 79.6% of the surveyed companies said that most effective advertising is to campaign on the Internet. The most surprising fact noted was that only 13% of companies allow their customers to configure their products fully on the online virtual platforms. Less than 18% of the surveyed companies agreed that they invite consumers to participate in sales activities on the Internet. It should be highlighted that firms fail to explore the full potential of marketing virtualization, even if they recognize the undeniable importance of online marketing to beat the competition.
Many global brands employ a large number of people to conduct extensive marketing activities on the Internet to gain an edge over the competition. On the other hand, small businesses rely on virtual marketing completely to ensure that they up with the trends.
With the rising competition in the global market, the resources and marketing activities of the companies are subject to the processes of virtualization. One of the impressive developments of Internet marketing is the inclusion of public opinion and expectations in the value creation for the customer on the Internet. The scope of virtualization for marketing activities for companies will have a considerable effect on the degree of acceptability to consumers. This massive mindset transition of marketers is particularly necessary for the context of increasing expectations and awareness of Internet societies, pertaining to the improving standards of consumer privacy and personal data protection.
Read More: Top Three Digital Marketing Trends in 2019