Digital Marketing, Its Opportunities and Challenges

Executive Summary

The purpose of this report is to present findings on the opportunities and challenges offered by digital marketing to organizations. The reason for the timely research is to increase digital marketing of organizations in reaching the consumers.

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The main findings include that digital marketing, which transforms marketing by offering new channels of reaching customers in period time. It is evident that there are merits and disadvantages inherent in digital marketing, but the advantages outweigh the challenges.

The recommendations we give for effective implementation of digital marketing in an organization include the creation of interactive websites, ensuring 24/7 internet presence, presenting personalized customer messages, and improving internet visibility. This will help take advantage of the opportunities offered by digital marketing and overcome the challenges.


This report aims at presenting the findings on the opportunities and challenges in digital marketing. An understanding of the opportunities and challenges in digital marketing will be useful in making decisions on the use of digital marketing (Martin & Todorov 2010, p. 61). The report begins with an explanation of the five-element formula of digital marketing. The report then proceeds to explain two advantages and two disadvantages of digital marketing. Digital marketing implementation solutions are then given, followed by recommendations on the need to use digital marketing.

Digital Marketing approach

Digital marketing comprises a five-element formula that an organization has to implement to realize its effectiveness. This comprises the steps the company has to take in order to realize satisfactory results in digital marketing as detailed in the following headings.

Building productive websites

Setting up the infrastructure for digital communication is necessary for a company. The set infrastructure includes websites, e-mails, and having accounts in leading socials sites (Klososky 2012, pp. 42). An organization has to ensure its website has information that is relevant and up to date to ensure recurrence of customer visits. Websites that are relevant and informative, ensure efficient digital marketing.

Providing social technologies

The second step involves the generating of customer interaction avenues through various channels. The channels include the development of search engines, integration of mobile with social media, enhancing member satisfaction, and augmentation of customer service (Mahajan & Wind 2001, 7).

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Mobile tools

The third element in data marketing is ensuring the availability of the business 24/7 for client communication (Charlesworth 2007, p. 80). Business availability on their website for clarification, customer correspondence, and offer of information on goods is pivotal for the success of digital marketing.

Driving online traffic

This element entails ensuring the company has garnered enough attention on the internet with a good subscriber base (Klososky 2012 p. 43). Consistency in the quality of a company’s website information aids in improving online traffic (Urban 2004, p. 34). Use of traditional advertising methods to enhance the customer’s visits and recognition of the company also helps in gaining online traffic. This translates to an increase in revenue for a company through increased sales.

Measurement systems

These are the measures taken by a company to evaluate the success of digital marketing in meeting company goals (Klososky 2012, p. 43). The main measures taken by the company include accessing the number of visits to the site, tracking successful online sales, and the improvement in sales because of introducing digital marketing. The firm then make changes where applicable and improvements to effect successful digital marketing.

Digital Marketing advantages and challenges

Opportunities for Digital Marketing

Low set up costs

The main opportunities for companies to invest in digital marketing are the low set up costs (Klososky 2012, p. 42). Digital marketing has access to various communication channels to the public at low costs. The advent of technology, the main driver of digital marketing, and the internet reduces the requirement costs of marketing to be very effective digitally (Martin & Todorov 2010, p. 65). The increase in website interaction, blogging, social websites, and improved consumer marketer’s interaction are the main drivers for harnessing digital communication cheaply to improve sales in a company. These communication channels are cheap and require low instalment and operating expenses, hence creating the opportunity for digital communication to flourish in the digital age. There is also an increase in exposure to the services and products dealt with by the company to the consumers leading to tremendous sales and revenue.

Faster marketing Channels

The other opportunity available for digital marketing is faster marketing channels that have more innovation opportunities. Digital marketing provides a faster channel for marketers and consumers to communicate real-time leading to improved interaction. Consumer-marketer interaction offers idea generation channels, platforms for requesting for corrections and product improvement translating to improved brand loyalty. The channel also improves customer satisfaction and enables a company to realize the chances and benefits of marketing for the improvement in the brand. Digital marketing offers the chance for an organization to build ongoing relationships with customers through the interactive platform it offers. Digital marketing is a new field and the high range of technological innovations in new gadgets, interfaces, and applications show the benefits in store for companies embracing digital communication.

Disadvantages of Digital Marketing

High dependence on Technology

High dependence on technology is one disadvantage of digital marketing due to challenges facing technology especially the internet, the main channel of digital marketing (Matheison 2010, p. 241). The main internet challenge is viruses that have the capability of altering information or transmitting information from one computer to others instantaneously. The first internet virus, the Melisa virus, recorded in March 26 1999 reached 100,000 computers in a span of three days and a site reported receiving 32000 Melisa- infected mails (Mahajan & Wind 2001). With these statistics and continued viruses, availability in the internet, digital marketing faces a challenge. The increased dependence on the internet by digital marketing leads to costs on computer maintenance and protection against viruses (Charlesworth et al 2007, p. 11). This is because computers in the world are vulnerable to infections that, may affect the reputation of the company.

High set up and Maintenance costs

Set up and maintenance costs of hardware to ensure efficient digital marketing present a challenge. This is because of the need to have 24-hour internet access and effective computers and cable networks to facilitate digital marketing.

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Digital Marketing implementation solutions

Implementing solutions for digital marketing include companies forming strategic alliances with other firms and organizations to increase their internet presence. Organizations should also have a global perspective in tailoring their products and marketing digitally (Wilson 2001, p. 11). This is because of lack of knowledge on customer preferences worldwide coupled by the internet having the capacity to reach audiences worldwide (Fitch & Holis 2009, p. 210). Another way to marketing is rolling out of time-competitive products and marketing information. This is aimed at avoiding obsolesce of digital marketing information due to time passage. Greater customer integration practices are also important for the success of digital marketing (Fitch & Holis 2009, p. 211).


A recommendation is for companies to embrace digital technology as it offers greater 24/7 accessibility by customers and versatility than traditional marketing methods. Companies should create up to date websites, have interactive customer care, present personalized customer messages, and improve visibility in the internet for increased success in digital marketing.


Charlesworth, G, Esen,R, & Gay, R 2007, Online Marketing: A Customer-Led Approach, Oxford University Press, New York.

Fitch, D & Holis, N 2009, Is global brand marketing as rewarding as it first appears?, Journal of Sponsorship, Vol. 2 (Henry Stewart publications 2009) No. 3, pp. 206–214.

Godin, S 2009, Purple Cow: Transform Your Business by Being Remarkable, Penguin Group USA, New York.

Klososky, S 2012, ‘Social technology: the next frontier’, Financial Executive, vol. 28, no. 4, pp. 40-45.

Mahajan, V & Wind, J 2001. Digital Marketing: Global Strategies from the World’s Leading Experts, John Wiley & Sons, New York..

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Martin, K & Todorov, I 2010, How will digital platforms be harnessed in 2010, and how Will they change the way people interact with brands?, Journal of Interactive Advertising, Vol. 10 No 2, (Spring 2010), pp. 61‐66.

Matheison, R 2010,The On-Demand Brand: 10 Rules for Digital Marketing Success in an Anytime, Everywhere World, AMACOM Div American Mgmt Assn, New York.

Urban, G 2004, Digital Marketing Strategy: Text and Cases, Pearson Prentice Hall, New Jersey.

Wilson, R 2001, Planning your internet marketing strategy: a Doctor Ebiz guide, Wiley,New York.MME 101 – Tri 2 2012 – Assignment ONE Page: ii

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