Blog 2a – Week 3

2a: Examine the importance of the marketing environment to

a) digital marketing success and b) digital marketing failure.

  • The marketing environment
  • Environmental change
  • Successful digital marketing
  • Digital marketing failure
  • Incorporating current issues into strategy

The marketing environment

The marketing environment is the overall economic environment. Understanding the macroeconomic conditions can help businesses develop better strategies to be responsive to the stakeholders and to business conditions. Knowledge of the economy and stakeholders gives organisations a strategic advantage in developing an approach.

Strategy is everything really.

The changing nature of the political, social and economic environment affects every business, but in the digital economy e-commerce businesses are reliant on competition to position strategically for business growth. Ensuring that businesses thrive and succeed means that other businesses are also more likely to succeed and benefit in the long-term, because they are viable. Positioning is by definition manoeuvring based on the perception of your competitors (Chaffey, 2019). Business, economic and social issues will affect strategy. Competition leads to the reallocation of resources to ensure efficiency and productivity are maintained.

Environmental change

Changes in social culture are fast and technological advances are a part of a short-term culture, which leads to increased consumer demand. There are also supply side changes to resourcing as a result of societal change.

Technological changes that can affect digital businesses include:

  • emerging technology
  • platforms 
  • devices

Digital marketing is supporting marketing goals with technology and the macro environment as primary concerns using data. This is the marketing environment. Strategic agility (Chaffey, 2019) means gaining a competitive advantage through innovation by keeping up with changes in the marketplace. An evaluative approach can help to determine options and tactics. Businesses who are undergoing digital transformation should focus their strategies around evaluations of the existing business activities, baselining their approach to data to inform future digital marketing strategies.

a) Successful digital marketing

Businesses such as Amazon, ASOS, Apple and Netflix have identified areas where consumers have changing tastes and preferences such as the use of voice assistants, internet streaming services and data management, capitalising on their competitive advantage in understanding technology by grabbing new segments and building new audiences for new platforms.

Shifting consumer demand has resulted in low growth in digital media demand, as tastes and preferences shift, from TV and radio to internet streaming services (Deloitte, 2019). This is important for content marketers who choose mediums and vehicles based on audience segmentation.

Social media is useful for consumer-to-consumer (C2C) marketing and many social media platforms are still trying to make this model of trade successful, and focus more on drawing in digital advertising whilst websites such as GumTree build brand loyalty for marketplace transactions. Tactically online word of mouth is crucial to product success (Marchand, 2017), through microblogs (Twitter) and reviews.

A whole market perspective is better to understand emerging trends in the marketing environment. Everyone-to-everyone (E2E) involves cloud computing for universal access to services, data driven customer insights that inform digital marketing approaches, and e-commerce driven by martech in a digital ecosystem (Chaffey, 2019). Emerging digitalised services include financial intermediation services, UBER transport, wholesale e-Commerce, outsourcing and digitalised international trade (ABS, 2020).

b) Digital marketing failure

Businesses that fail are likely to leave the market or become less competitive for sale to other business. Bauer Media in Australia is a good example of business with a failing digital strategy, but not a failed business.

Many years ago, social media websites like MySpace struggled because they did not have functionality that met the needs of their target audiences and became less popular (Lee, 2011). Successful digital businesses focus on customer experience (CX) and user experience (UX) to create websites and applications that are user friendly and accessible.

International world wide web consortium (WC3) has standardised code and developed improved accessibility standards that help developers make more functional websites and technologies. 

Web standardisation reflects the maturity of the tech industry and the internet in developing new technologies and applications through research and development, for example Netscape standardised Javascript as a programming language. Research and development is crucial to digital marketing success. 

Incorporating current issues into strategy

A relevant model for strategy development is the SOSTAC framework (Chaffey 2019).

  • Opportunity – situation analysis using PESTLE and SWOT and objective setting (Political, Economic, Sociological, Technological, Legal, Environmental)
  • Strategy – tactics and resourcing to achieve objectives through activities
  • Action – managing implementation through actions and controlling the environment with effective systems.

The 5 D’s of digital marketing 

A PESTLE analysis for a digital marketing strategy is informed by the 5 D’s of marketing.

  • Digital devices 
  • digital platforms
  • digital media
  • digital data and 
  • digital technology.

Source: Chaffey (2012)


Barker. et al. (2016) Social Media Marketing: A Strategic Approach, 2nd Edition.

Chaffey. and Ellis-Chadwick. (2019) Digital Marketing: Strategy, Implementation and Practice. Seventh edition. Harlow, England; Pearson, Print.

Chaffey. (2012) SOSTAC® marketing plans [infographic].

Deloitte. (2019) Media Consumer Survey.

Elliott, G. (2017) Marketing, 4th Edition, Wiley. ProQuest Ebook Central,

KPMG. (2020) Traditional business models won’t be enough in the digital commerce era.

Lee. (2011) Myspace. How the social network fell apart. The Huffington Post.

Marchand, Hennig-Thurau, Wiertz. Not all digital word of mouth is created equal: Understanding the respective impact of consumer reviews and microblogs on new product success. International Journal of Research in Marketing, Volume 34, Issue 2, June 2017, Pages 336-354,

Roberts and Zahay. (2013) Internet Marketing: Integrating Online and Offline Strategies. 3rd ed. Mason, OH: South-Western, Cengage Learning. Print.

Tuten. and Solomon. (2018) Social Media Marketing. Pearson Education, Upper Saddle River, NJ USA. Print.

Zhao. (2020) ABS Chief Economist. Measuring digital activities in the Australian Economy. Economic Research Hub.,to%20economies%20around%20the%20world