In today’s business landscape, platforms are increasingly playing a pivotal role in marketing management. A platform is a digital ecosystem connecting various stakeholders to enable them to interact and transact. Platforms can connect brands and consumers and facilitate data-driven marketing processes. As we move into the era of the Fourth Industrial Revolution, it is becoming more and more evident that platforms are reshaping marketing management as we know it. With the ever-growing abundance of data and the proliferation of new technologies, platforms are becoming powerful tools for marketers to reach their target audiences more effectively. In this blog post, we will explore how platforms are changing the landscape of marketing management and what implications this has for businesses.
In the past, marketing management was about choosing the right mix of mass media to reach a target audience. But with the rise of digital platforms, that’s no longer the only—or even the most important—way to think about marketing management. Platforms like Facebook, Instagram, and Snapchat have changed how people discover and consume information. And as a result, they’ve also changed the way businesses need to think about marketing. Companies can use targeting on a platform like Facebook to ensure their ads are seen by the people most likely to be interested in them. And on Snapchat, businesses can create short videos that give people a glimpse into what it’s like to use their products. But it’s not just about using new platforms to reach new audiences—it’s also about building relationships with customers and creating loyalty. Nike, for example, has created a very successful platform called Nike+ that helps customers track their progress and connect with other runners. So how can businesses ensure they’re thinking about marketing in a way that takes advantage of these new platforms? Here are three tips:
- Don’t think of platforms as just another channel for your message. Platforms like Facebook and Snapchat are powerful because they allow you to connect with customers more personally. Use them to create relationships, not just deliver messages.
- Pay attention to algorithms. The algorithms that power social media platforms are always changing, and businesses need to change. For example, Facebook recently announced that its News Feed will now prioritize posts from friends and family over posts from brands and publishers. Businesses that want to reach potential customers on Facebook must rethink their strategies accordingly.
- Get creative. There are endless possibilities for how businesses can use platforms to reach their goals. So don’t be afraid to experiment and try something new. The worst that can happen is you learn something along the way.”
A platform can be defined as a digital business model that creates value by enabling direct interactions between two or more interdependent groups of users. In other words, a platform is an ecosystem that connects people, organizations, and/or devices to exchange information and/or conduct transactions. A platform typically features a multi-sided business model, which relies on multiple user groups (i.e., demand-side and supply-side platforms) to generate value. The notion of the platform is not new. Indeed, companies have been using platforms to power their businesses for centuries. For example, transportation companies such as railways and shipping firms have long used physical infrastructure to connect people and businesses.
Similarly, companies in the telecommunications industry have used their networks to connect people and businesses. What is new is the emergence of digital platforms powered by technological advances in computing, storage, and networking. These advances have led to new business models leveraging network effects to scale rapidly and achieve profitability. The most notable examples of these business models are online marketplaces such as eBay, Amazon, and Airbnb.
In recent years, the power of network effects has led to the rise of platforms as a new model for business. In a platform business, the value of the service increases as more people use it. This creates a virtuous circle in which more users lead to more value, more users, and so on. The power of network effects has disrupted many traditional businesses, from newspapers to travel agencies. It is now reshaping the field of marketing management. In particular, it changes how companies think about their customers and their relationship with them. Traditionally, marketing has been about convincing individuals to buy products or services. Marketing management was about creating and executing plans to achieve these objectives. But this approach is no longer enough in a world where platforms are increasingly important. Platforms are built on relationships between companies and their customers. To succeed, companies need to understand these relationships and how they can create value for both parties. This requires a new approach to marketing management, one that is based on four key principles:
- Platforms are built on trust: Companies need to build trust with their customers by providing them with valuable and useful products or services.
- Platforms are built on networks: Companies need to create networks of customers and partners that can help them scale their businesses.
- Platforms are built for engagement: Companies need to engage with their customers and partners to build long-term relationships.
- Platforms are built for profitability: Companies need to generate profits not just from selling products or services but also from the data and insights they generate from customer interactions.
From Y2K and the bursting of the dot-com bubble to the global financial crisis and smartphone adoption, businesses have had to adapt to an ever-changing digital landscape. How we consume information and make purchasing decisions has shifted dramatically, and companies must change how they reach and interact with customers. Digital transformation is upon us, and those who don’t adapt will be left behind. Controlling costs, increasing operational efficiency, and improving customer experience is no longer optional — they’re now table stakes in the age of digital business. Digital technology is reshaping every aspect of marketing management, from planning and budgeting to execution and measurement. The days of relying on intuition and gut feeling to make decisions are over — today’s successful marketers rely on data. Data-driven marketing makes decisions based on hard evidence rather than guesses or assumptions. Using data to inform your decisions, you can avoid costly mistakes, optimize your campaigns for better results, and make real-time adjustments that improve your bottom line. The first step in becoming a data-driven marketer is understanding which data is relevant to your business goals. There’s no shortage of data available today, but not all are useful for marketing purposes. To focus your efforts on the most impactful data, start by asking yourself these three questions:
- What business goals do I want to achieve?
- What does success look like for each goal?
- What data do I need to track to measure progress toward each goal?
Once you know which data is most important to your business, you can start collecting it and using it to inform your decisions. There are a number of ways to collect marketing data, including surveys, customer interviews, focus groups, web analytics, and more. The key is to choose the right method for each situation — there’s no one-size-fits-all solution. Once you understand your marketing data, you can start using it to improve your campaigns and drive better results.
To reach and engage consumers, marketers must first understand the demographics of their target audience and develop a clear understanding of the cultural context in which they live. This includes understanding the values, beliefs, and behaviors that drive purchase decisions. With the advent of social media and the rise of the Gen Z consumer, this task has become more complex. Marketers must now factor in the ever-changing landscape of platforms and how they are used when developing their marketing strategy. There are several ways to stay up-to-date on the latest platform trends. Whether reading articles, following influencers on social media, or attending conferences and events, staying informed on the latest platform changes is critical for marketers. Marketers must have a presence on multiple platforms to reach consumers where they are spending time. This includes traditional platforms like television and radio and digital platforms like social media, websites, and apps. It is also important for marketers to understand how each platform is used differently by different demographics. For example, while Facebook is still the most popular social media platform among all age groups, Gen Z users increasingly turn to Snapchat and Instagram for their content consumption. As platforms continue to evolve, so too must the way marketers approach them. By staying up-to-date on the latest changes and understanding how different demographics use different platforms, marketers can ensure that they reach their target audience where they spend time.
With the rise of digital and social media, the playing field for competition has changed dramatically in recent years. To keep up, businesses need to understand their competitive online environment thoroughly. Here are four tips on how to get started:
- Define your online presence. You first need to define your online presence to know who your online competitors are. What platforms are you active on? What kind of content are you putting out? Once you have a better understanding of your web presence, you can compare it with your competitors.
- Identify your main competitors. Use search engines and social media platforms to identify businesses similar to yours regarding products or services offered, target market, or geographic location. These businesses will likely be your main competitors in the online space.
- Analyze their strategies. Now that you know your main competitors take some time to analyze their marketing strategies. What platforms are they using? What kind of content are they sharing? How often are they posting? Understanding your competitors’ strategies allows you to adapt and improve upon them for your business.
- Keep an eye on new entrants. In addition to monitoring your main competitors, it’s also important to keep an eye out for new businesses that might enter the market and pose a threat. Use search engines and social media platforms to track industry keywords and trends so you can quickly adapt your marketing strategy if needed.
To stay ahead of the curve, marketing managers need to understand how the company context changes and how this impacts their business. In the past, marketing management focused on driving growth through customer acquisition. However, in recent years there has been a shift toward driving growth through customer retention and expansion. Several factors have contributed to this shift, including the rise of digital platforms, the increasing importance of data analytics, and the changing consumer landscape. As a result of these changes, marketing managers need to re-evaluate their approach to marketing management to succeed in today’s business environment. Some of the key areas that marketing managers need to focus on include the following:
- Developing a deep understanding of your customers: To retain and expand your customer base, you must deeply understand who your customers are and what they want. This requires collecting and analyzing data on your customers’ behavior, preferences, and needs.
- Focusing on customer lifetime value: With the rise of digital platforms, it is easier than ever for customers to switch between brands. As a result, marketing managers must focus on retaining customers over the long term by delivering value throughout their relationship with your company.
- Building an Omnichannel Presence: To reach and engage customers across multiple channels (e.g., online, offline, social media), you need to have a strong Omnichannel presence. This requires developing a consistent brand identity and message delivered across all touchpoints.
- Leveraging Data Analytics: Data analytics can identify key insights about your customers that can be used to drive decision-making around marketing initiatives. Marketing managers need to partner with data analysts to ensure that they are making data-driven decisions about their marketing strategy.
Change is the new normal in marketing management. Consumer behavior and how customers want to interact with businesses have changed dramatically in the last several years, and it continues to evolve at an ever-increasing pace. This has created a challenge for marketing managers struggling to keep up with the rapidly changing landscape. To be successful, marketing managers must be able to adapt quickly to changes in the marketplace. They must understand the latest trends and utilize new technologies to reach their target audience. Additionally, they must be able to manage multiple platforms and campaigns simultaneously. The key challenge for marketing managers is the rate of change. The marketing landscape is changing so rapidly that it can be difficult to keep up. However, those who can adapt quickly and effectively will be rewarded with success.