Digital marketing as a new marketing paradigm of industry 4.0

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Uzhgorod National University

Digital marketing as a new marketing paradigm of industry 4.0

Mushka D.V.

Introduction

In the modern conditions of Industry 4.0, the main trends in the development of the global international business environment are total digitalization (mobile telecommunications, cloud technologies, business process analytics, etc.), robotization, virtualization of world markets for goods/services, the use of artificial intelligence, technology convergence.

Today, according to the `Digital 2023: Global Overview Report', there are 5.16 billion Internet users in the world (64.4% of the total population of the planet are connected to the Internet), 4.76 billion users of social networks (about 60% of the total population), and by the beginning of 2024, 5.44 billion people (68% of the total population) will use mobile phones [1].

A number of modern companies have quickly achieved the leading position in their markets thanks to the introduction of information and communication technologies (ICT), which, firstly, have provided the opportunity to reduce the number of intermediary links in supply chains (retailers, brokers, etc.), thereby increasing competitiveness. Secondly, they changed the structure of value formation (methods for developing a new product, production technologies; implementation methods; methods of distribution and promotion of manufactured goods/services by companies). Thirdly, approaches to the marketing mix and forms of managing commercial activities were optimized, making them convenient and more effective (less costly in the process of promoting products). Fourthly, we turned digitalization into an effective business tool that performs a wide range of communication functions, regardless of distances and borders, influencing the behavior and preferences of potential customers.

Results and discussion

Presently, the share of the digital economy in the GDP of industrialized countries of the world economy ranges from 6 to 15%, and by 2030 it will increase to 5060% [2]. Four decades ago, the famous futurist E. Toffler predicted in his book `The Third Wave' that the future post-industrial society would depart from market principles of management and functioning of economic entities, mass markets would disappear, a large number of mini-markets would appear, and new professions and forms of activity would emerge, fundamentally changing the nature of social life [3].

Since the publication of the book, fundamental changes in the technological structure have occurred - by the end of the 20th century, increasing competition between various brands for the attention and loyalty of customers was accompanied by an increase in the number of resources for interacting with an ever-decreasing number of potential consumers. It was during this period that many specialists in the field of marketing [4; 5; 6; 7] noted a tendency towards a decrease in the effectiveness of traditional marketing strategies and tools and called for rethinking the fundamental principles of classical marketing in order to adapt to the new external conditions of post-industrial society and the characteristics of consumer behavior. The concepts of customer satisfaction, market orientation and customer value began to play a leading role in the implementation of transactional marketing, which was consistent with the Internet era, digital technology and online environment. As a result, this type of marketing has become known as digital marketing.

Approaches to defining digital marketing in academic sources are different, which is explained by its accelerated development as a multidimensional economic phenomenon. Authors of domestic studies use different terms: digital marketing, e-mail marketing, online marketing, web marketing, Internet marketing, targeted marketing, interactive marketing, new marketing and etc. In Western literature, the definition of digital marketing is mainly used (especially after 2013 [8]), which we will use in this study. We also consider it necessary to make a brief overview of the definition of digital marketing. Thus, Wikipedia defines `digital marketing as a general marketing term that uses digital technologies to attract potential customers and retain them as consumers' [9]. The other definitions include:

> Digital-marketing is a set of methods for promoting and selling goods and services using digital channels that cover online and offline audiences [10].

> Digital marketing is a term that generalizes marketing for services and goods that use digital technologies to attract customers [11].

> Digital marketing is any form of marketing or advertising that is delivered through digital channels: websites, social networks, mobile applications, email, search engines, and so on [12].

> Digital marketing is the promotion of brands through interaction with users in digital channels [13].

Despite the apparent terminological chaos', many marketing specialists are unanimous in one thing that digital marketing implies [14; 15]:

1) the use of various digital channels/tools to reach the user audience and introduce various methods of using the potential of digital technologies,

2) interaction with consumers and transmission of marketing messages to create relevant communications and satisfy public and private interests,

3) a set of methods and methods for reducing costs, distribution and promotion, creating a brand image and managing business processes of the company's marketing services, carried out in offline and online spaces, based on various digital technologies.

Ukrainian authors, such as: Piletska S.T., Petrovska S.V., Oklander M.A. [16], Romanenko O.O., Kostyuk-Pukalyak O.M. [17], Ruban V.V. [18], Novitska I.V. [19] studied the theories of digital marketing, in particular, the definition of the main types of digital marketing based on a systematic approach. However, in our opinion, one of the reasons for the gap between the theory and practice of digital marketing is that the authors' declaration of a `systemic approach' does not mean its use. Therefore, sometimes many studies and attempts cannot be linked with each other in their practical application. In order to effectively use the concept of digital marketing and its tools, in our opinion, it is necessary to start with an analysis of the so-called sales funnel, to find out exactly where users first come into contact with the business. This will provide an opportunity to get an idea of possible `points of contact' with potential consumers, where it is most rational to build relationships with the client audience, rather than using repetitive transactions. economy digitalization marketing business

The `trouble points' in the theory and practice of digital marketing also include the fact that many market participants still do not take advantage of the tools that have emerged during digital transformations, partly because the use of these tools has not been properly systematized and interpreted in the scientific literature. Any one-sided interpretation of the systematic approach principles or only their nominal use (without connection with real practice) also lead to the fact that the same tools are used differently and give different results, which causes mistrust in the ideas of digital marketing among market participants.

The variety of theoretical concepts, definitions and types is associated with the ever-growing set of digital marketing tools and the non-linear development of modern means of communication. To form the author's chain of reasoning, let us turn to some of the main historical stages in the development of digital marketing.

In the first decade of the 21st century, the emergence of the concept of `Internet marketing' was accompanied by the practice of using all the tools of traditional Internet marketing to manage customer relationships. This happened by establishing and automatically recording technical indicators (clicks, orders, payments, requests, registrations, visits, display of advertising messages, etc.). Reducing material costs for physical contact was the main incentive and motive for the development of a set of techniques on the Internet in order to obtain feedback from the audience. These techniques included both the creative and technical aspects of online work, including design, development, advertising and marketing itself.

The second decade of the XXI century was marked by the formation of a set of IT technology tools that radically changed the ways of promoting goods and services to the market, introducing the concept of complexity (Social Media Optimization). The latter includes direct and content marketing, contextual and media (banner) advertising, social media marketing, online branding, search engine optimization, e-mail marketing, viral marketing. And although the general inherent principles of marketing activity remain unchanged, in the conditions of mass informatization of society and development of the Internet, the concept of `market' itself is shifting from the real to the virtual plane. Complex business processes and procedures involving key interactions with partners and clients are being replaced by digital marketing methods and tools that are simple and easy to use. `Digitized' startup companies (unicorn companies) that work exclusively with cloud technologies and artificial intelligence are emerging, with a market value estimated at billions of dollars. The use of digital marketing allows such companies to plan many aspects of their business activities for the long term, use modern effective tools and technologies to predict future demand in markets [20].

An analysis of the stages of the evolution of digital marketing and the specifics of the marketing activities of modern business entities in general showed that digital marketing is a set of diverse and interconnected processes. They are unique in relation to both the macroeconomic environment and the specifics of individual companies, enterprises and organizations within the framework of the transition to the fourth technological order. Moreover, digital marketing is not only methods of promoting and selling information products, but also trade in information spaces, business models and other services of modern Industry 4.0.

Digital marketing, like digital communications, are by their nature targeted and interactive, and the main thing in understanding the unity of communications on the Internet and the digital environment is that they have the same marketing focus and have an integrative nature. The concept of `digital marketing' is broader than the concept of `internet marketing', as it includes channels that do not require the use of the Internet [21].

According to P. Kennan, the prompt and effective interaction of companies with consumers is based on such channels and tools as digital broadcasting technologies, social services, electronic media, mobile technologies, high-speed Internet access, various types of gadgets and devices. It defines digital marketing as the process of using digital technologies and electronic media to promote brands or products and attract consumers [22].

Thus, D. Tapscott believes that the new technologies and digital strategies not only transform business processes, but are ways of creating and selling different types of products and defining the rules for effective operation [23]. The researchers K. Wertheim and J. Fenwick also note that the main concept of digital marketing lies in a customer-oriented approach, when marketing is quite capable of absorbing new and most effective marketing methods and becoming the main marketing concept of the 21^st century [24]. According to other world experts, during the period of intensive development of mobile technologies and social services (2000-2010s), the term `digital marketing' began to mean cooperation with consumers [25; 26].

Some experts note that the methods of digital marketing to influence consumers are different from Internet marketing due to the boundaries of target audiences. The latter is aimed at reaching Internet users, and digital is aimed at attracting all possible consumers through the digital media space [27], within which different channels are used. They provide companies and clients with significant advantages: various types of advertising, expansion of audience and awareness, acceleration of sales, automation of payments, prompt feedback and service capabilities. Therefore, digital marketing can be classified as a variety of market methods that occur in online and offline spaces using different types of hardware and software tools that are part of the IT infrastructure (network technologies and digital media space).

In scientific sources, digital marketing is presented in many types: promotion in search engines, contextual, media, viral advertising, email newsletters, affiliate marketing [28]. According to other experts, digital marketing should be divided into two types: presented in the online and offline environment, which correspond to certain means of implementation, often combined in the process of digital marketing [29].

However, a common point of view on understanding digital marketing channels and tools has not yet been developed. Thus, some researchers call the Internet and electronic devices that provide access to it (computers, tablets, smart phones, etc.) its most important tool, as a means of obtaining information, communication and human self-realization [30].

Others understand digital marketing channels as the Internet and other access devices, local networks of companies and territorial entities that are gradually integrating with the Internet - mobile devices; digital television, which is successfully replacing analogue and is gradually integrating with Internet applications; interactive screens; and POS terminals [31]. Still others believe that these are affiliate, search, e-mail marketing, display advertising placed on banners, social networks, video games, video advertising, infographics [32].

The main two conditions for functioning of the special technological essence of digital marketing are: a) the effective use of the entire set of methods, techniques, forms and methods of market management aimed at creating consumer value and b) achieving high results of entrepreneurial activity while maximizing the possibilities of meeting customer needs. In turn, communication operations related to demand generation, sales promotion and product promotion are based on the concept of managing the marketing technologies of a company/enterprise and lie in the plane of feedback with recipients of communication messages that take into account consumer demand. The features of digital marketing are [33]:

• decentralization of the information provider - the customer's choice is determined in a dialogue with the seller;

• a fundamental change in the nature of information transfer due to the interactive nature of the communication environment - `from vertical to horizontal';

• multimedia ability of communicative traffic for transmitting content (from text, numbers, graphs, photos and video images to visual and verbal, tactile, and olfactory elements of communications);

• high demand for professional competencies of employees, which presupposes knowledge of methods, tools and models of digital marketing related to the transfer and use of new technical and information means and innovative technologies of a targeted and interactive nature (involves feedback from the target audience).

The essential difference between the two types of marketing - digital and Internet marketing - is that digital marketing involves the use of digital technologies online and offline, while Internet marketing uses only online technologies and the Internet [34]. Expanding the range of information transmission channels in digital marketing compared to Internet marketing is based on the use of the following tools: applications such as WOW calls for smart phones, SMS and MMS mailings, second screen technology, local intranets of companies (extranet), innovative POS materials (digital media, which are gradually replacing standard outdoor advertising). Consequently, digital marketing differs from internet marketing in that it uses not only the World Wide Web, but also offline tools (smart gadgets, POS terminals, etc.). As for communications, marketing digital communications differ significantly from traditional communications both in the channels of information transmission and the characteristics of the tools used, as well as in the content and impact of messages on consumers.

A number of researchers define the key principles of digital marketing as follows [35]:

• synergy (interconnection and complementarity of all elements of the digital marketing communications complex and their coordination for the successful implementation of the marketing strategy);

• openness (orientation to the development of partnerships, willingness to cooperate, search for alliances);

• personalization (building individual relationships with each client based on the development of special tools and professional skills of staff);

• efficiency (readiness to use specially initiated, as well as involuntarily occurring events for communications).

These principles allow, firstly, to carry out more detailed, individualized market segmentation, coordinated and organized application of the components of the promotion complex; secondly, build long-term effective cooperation with other companies to attract and retain customers; and thirdly, move to a single multichannel synchronized communication. The latter is associated with the establishment of bilateral relations with various target audiences (coordinated and planned address), and for each of which an appropriate model is built. Consequently, we are talking about a new unique paradigm for marketing promotion - digital promotion of the communication marketing mix. It has made fundamental changes in trade, commercial, production and communication activities, as well as in the relations of market participants - marketers of companies/enterprises and consumers.

In real commercial practice, the availability of various offline and online channels is limited, as a rule, by the budget and competence of specialists in marketing and advertising services. Companies strive to obtain a synergistic effect from the use of various channels for delivering marketing messages to their target audiences, making maximum use of all channels and methods of informing consumers available to them. Therefore, several digital marketing tools are most often used together effectively. So, while search engine marketing is used when trying to get a better position for a business in search engines (for example, a new visitor attracted by texts or calls to action (CTAs) must stay on the site for a long time and navigate through the marketing tunnel), then affiliate marketing brings a certain niche income from the operation of many small sites.

Another trend that is also worthy of attention is the active development and expansion of the boundaries of digital marketing and the expansion of its tools beyond the computer and the Internet. An example is DOOH advertising, with the help of which users can manage outdoor advertising from their personal account - in fact, billboards are `moving' from traditional marketing to digital.

In general, the typology of digital marketing tools depends on the type of market:

*for the B2B market: corporate portal, CRM systems, online supply systems (purchases) and trading systems (EPR resource planning system);

* for the B2C market (retail sales): web showcase (a simplified system for posting price lists with the ability to accept orders), online store (a fully functional online trading system with individual schemes for interacting with consumers); Internet auctions; electronic trading platforms; directories provided by search engines; various types of portal sites designed to attract different types of audiences.

As for Internet marketing as an integral part of digital marketing, there are three groups of tools [36]:

1) external tools - website optimization in search engines, contextual advertising, teaser networks, media branding. These tools provide initial contact with the Internet user;

2) internal tools - intranet promotions, internal banners, corporate mailings, electronic discount cards, etc. These tools are used at the stage of managing visitors on the site;

3) providing tools - online advertising management systems. This group of tools allows for comprehensive management of online advertising based on activity automation software products.

To determine the effectiveness of tools (both from a communicative and commercial point of view), it is necessary to consider such a parameter as the conversion of digital traffic of an advertising platform, which is defined as the ratio of the number of clients to the number of visitors attracted to the website of a company/organization from a certain platform. There are 2 types of conversion:

1) external conversion as the share of the audience of an advertising platform (advertising system), who are capable of turning into customers within a limited time as a result of standard marketing influence;

2) internal conversion as the ability of an Internet site (corporate website of an organization) to convert Internet traffic (marketing digital communications) into customers.

In our opinion however, it is necessary, to supplement the consideration of communication methods (forming contact with the audience), which form digital marketing technologies, with conversion and analytical methods of digital marketing. They contribute to the transformation of the user audience into a `field of practical actions' that is valuable to the company/organization. In this regard, it should be noted that the conversion process is inseparable from the communication process, since any communication causes a reaction from the audience: actions either increase conversion, or ignoring communication reduces conversion.

Currently, there are four stages and four communication channels associated with the use of digital marketing methods, depending on the corresponding message formats. The stages include:

1) awareness - any information on websites or banner advertising;

2) comparison, preference and analysis of goods - advertising on social networks, search, contextual advertising, website, forums, online conferences;

3) action - promotions in online stores, discount for contacting through the website;

4) loyalty - social networks, subscription to mailing lists.

The communication channels used include: website web pages (format - banners and pop-ups), search engines (format - text links), promotional sites (format - website, mini-site, collage) and email (format - email).

A characteristic feature of digital marketing is that a consumer on a digital network can, firstly, either return to previous levels of the presented forum countless times, or can be immediately redirected to the last level using retargeting methods. Secondly, they can position themselves on the platform in his chosen communication component, within which the methods of influencing the message recipient are ranked according to their degree of effectiveness. This is confirmed by the latest research in the field of digital marketing communications, especially regarding their classification according to the criteria of time of occurrence, coverage of the target audience, the means of communication used and the type of feedback [37]. Thirdly, they can use site search engines within the same (or similar) set of search phrases aimed at specific landing pages of sites, which in itself is a tool that increases the number of site visitors.

The modern system of digital marketing support is based on a consistent set (chain) of marketing messages through the channels of Internet marketing communications, digital marketing activities and operations that ensure the promotion of a product (service) of a certain type.

When classifying a company's digital and Internet resources today, it is appropriate to highlight:

• the company's own Internet resources (official Internet sites of the company and unofficial Internet resources - blogs, forums, chats, etc.);

• external digital resources (communication tools, trading platforms and advertising platforms).

The analysis of the accelerated development of digital technologies is currently aimed at increasing the loyalty of message recipients to digital resources of companies in three areas:

1) psychological technologies (neuromarketing tools: design, music, video, photo, color);

2) functional technologies (personalization and customization of the site, increasing the level of service for visitors and improving the quality of their service;

3) financial technologies (savings cards, discounts, bonuses for purchases, gifts).

Currently, the development of digital marketing communications is a consequence of a new stage of change in the evolution of mass media, a change in marketing paradigms and changes in consumer behavior. The multichannel nature of the media and development of their highly specialized channels, the high price of television advertising, and protracted promotions of goods/services lead to a decrease in profitability and objectively require transformation of marketing philosophy and development of an integrated communication policy by companies.

Modern digital marketing, on the one hand, differentiates points of contact with the target audience, at which the process of conversion and transformation of the target audience's requests into sales occurs. On the other hand, it is characterized by specific highspeed interaction with users via electronic communication means (usually the Internet), the main the purpose of which is to target consumer behavior.

Conclusions

Further research into the theoretical and practical aspects of the functioning of modern digital marketing as a new marketing paradigm of Industry 4.0 requires, first of all, an indepth analysis and classification of its tools (element base). As part of a company's integrated marketing communication, digital marketing is currently at the stage of changing the historical stages of development of the Internet Web3.0-Web4.0, which is characterized by a combination of Internet marketing and classical marketing methods. Its technological essence must be considered from the perspective of two main approaches: the first is based on technological know-how in the use of information, the second - on methods of transformation and methods of using information in the processes of the production cycle, product quality control and management models. These two elements of the semantic structure of the concept of `digital marketing technologies' presuppose a certain form of management activity that exists within the framework of a functioning information base (the source of which is marketing information obtained in the course of various marketing research).

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Аннотация

Цифровой маркетинг как новая маркетинговая парадигма индустрии 4.0

Мушка Д.В.

В современных условиях Индустрии 4.0 основными тенденциями развития глобальной международной бизнес-среды являются тотальная цифровизация (мобильные телекоммуникации, облачные технологии, аналитика бизнес-процессов и т.д.), роботизация, виртуализация мировых рынков товаров/услуг, использование искусственного интеллекта, конвергенция технологий. Сегодня, согласно отчету "Digital 2023: Глобальный обзорный отчет", в мире насчитывается 5,16 миллиарда пользователей Интернета (64,4% от общей численности населения планеты подключены к Интернету), 4,76 миллиарда пользователей социальных сетей (около 60% от общей численности населения), а к началу 2023 года в мире насчитывается 5,16 миллиарда пользователей Интернета (64,4% от общей численности населения). к 2024 году мобильными телефонами будут пользоваться 5,44 миллиарда человек (68% от общей численности населения) [1].

Ряд современных компаний быстро завоевали лидирующие позиции на своих рынках благодаря внедрению информационно-коммуникационных технологий (ИКТ), которые, во-первых, предоставили возможность сократить количество посреднических звеньев в цепочках поставок (розничные торговцы, брокеры и т.д.), тем самым повысив конкурентоспособность. Во-вторых, они изменили структуру формирования стоимости (методы разработки нового продукта, технологии производства; методы внедрения; методы распространения и продвижения производимых компаниями товаров/услуг). В-третьих, были оптимизированы подходы к маркетинг-миксу и формам управления коммерческой деятельностью, что сделало их удобными и более эффективными (менее затратными в процессе продвижения продукции). В-четвертых, мы превратили цифровизацию в эффективный бизнес-инструмент, который выполняет широкий спектр коммуникационных функций, независимо от расстояний и границ, влияя на поведение и предпочтения потенциальных клиентов.

Выводы. Дальнейшее исследование теоретических и практических аспектов функционирования современного цифрового маркетинга как новой маркетинговой парадигмы Индустрии 4.0 требует, прежде всего, углубленного анализа и классификации его инструментов (элементной базы). Как часть интегрированной маркетинговой коммуникации компании, цифровой маркетинг в настоящее время находится на этапе изменения исторических этапов развития Интернета Web3.0-Web4.0, который характеризуется сочетанием интернет-маркетинга и классических маркетинговых методов. Его технологическую сущность необходимо рассматривать с точки зрения двух основных подходов: первый основан на технологических ноу-хау в области использования информации, второй - на методах преобразования и способах использования информации в процессах производственного цикла, контроля качества продукции и моделях управления. Эти два элемента семантической структуры понятия "цифровые маркетинговые технологии" предполагают определенную форму управленческой деятельности, существующую в рамках функционирующей информационной базы (источником которой является маркетинговая информация, полученная в ходе различных маркетинговых исследований).

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