Summary Digital Marketing VU

Aim and goal of the article

Answer: The purpose of this conceptual article is to examine the widening gap between accelerating complexity of markets and the capacity of most marketing organisations to comprehend and cope with this complexity.

Why are markets becoming more complex? What are the sources of complexity?

Answer: Traditional marketing vehicles are being enhanced (augmented) with: social media, product placements, event marketing, viral maketing... Before: struggle to get feedback Now:struggle to keep up with the flood of feedback

What are the barriers to adapting?

Answer: Organisational rigities! When a company masters a capability, it is likely to keep doing it long past the point of obsolescence 1. Path dependency and lock-in Firms who are already good at something, continue to get better. 2. Inertia and complacency (self-satisfaction) Routines affect decision-making. If you have done something in the past that gave positive outcomes, you're likely to do that again in the same way 3. Structural insularity(narrowness) *Lagging reactions: How quickly is an organisation willing and able to react to shifts in the market? It take time to absorb new information, interpret its meaning, and mobilize a coalition to act-

Why this gap exists? (diagnosing the gap)

Answer: According to resource-based or capabilities theories, companies within the industry are heterogeneous (different). Since these resources take a long time to develop , they are difficult to duplicate and therefore can be long lasting source of competitive advantage. Capabilities use cumulative learning and tacit knowledge, so they are also difficult to copy or value.

What is a dynamic marketing capability?

Answer: A dynamic capability is the capacity of an organisation to purposefully create, extend, or modify the resource base. The main focus: 1. Sensing environmental changes that could be either threats or opportunities (scanning, searching, exploring) 2. Responding to changes by combining available resources n new and different ways or adding new resources through partnerships or acquisition 3. Selecting the business model for delivering value to customers and then capturing the economic profit *familiar capabilities of marketing mix are static