In today’s digital economy, the way companies brand and advertise is completely transformed. As Edelman (2010) suggested, the Funnel Metaphor is less applicable in describing consumer’s purchase journey. Instead, the Consumer Decision Journey (CDJ) took place, which pointed out the extended evaluation and and post-purchase phases. The implications for marketers are significant. The touch points have shifted, requiring companies to adjust their marketing strategies and tactics correspondingly. To see the impacts of the challenges brought about by the digital economy, the cosmetics industry will be taken as an example for elaboration.
Touch Points
The first challenge is the shift of touch points with consumers. In the past, it made sense for companies to invest heavily on mass media advertising and promotions because consumers used to be influenced the most during consider and buy stages. However, in today’s digital age, they are relying more on online contents that are not …show more content…
The adjustment of marketing strategies and resource allocation will be enterprise-wide. It is not enough to just have an extra department in charge of digital marketing as the changes are often cross-functional. In order to commit to its digital transformation, L’Oréal not only appointed Lubomira Rochet as the chief digital officer but also positioned her in the executive committee, which she claims has really helped her in spearheading several digital marketing initiatives (GCI, 2014). In the Makeup Genius campaign mentioned above, “the company has first time allocated the same kind of budget as if they were launching a new product or brand”, according to the company’s Head of Digital. The endeavor to fully embrace and adapt to the digital economy requires organizational and cultural change, thus is hard to implement without enterprise-wide
Touch Points
The first challenge is the shift of touch points with consumers. In the past, it made sense for companies to invest heavily on mass media advertising and promotions because consumers used to be influenced the most during consider and buy stages. However, in today’s digital age, they are relying more on online contents that are not …show more content…
The adjustment of marketing strategies and resource allocation will be enterprise-wide. It is not enough to just have an extra department in charge of digital marketing as the changes are often cross-functional. In order to commit to its digital transformation, L’Oréal not only appointed Lubomira Rochet as the chief digital officer but also positioned her in the executive committee, which she claims has really helped her in spearheading several digital marketing initiatives (GCI, 2014). In the Makeup Genius campaign mentioned above, “the company has first time allocated the same kind of budget as if they were launching a new product or brand”, according to the company’s Head of Digital. The endeavor to fully embrace and adapt to the digital economy requires organizational and cultural change, thus is hard to implement without enterprise-wide