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Digital Marketing and its effects on Start-up business

Written by A. Akeel, M. Gubhaju

Paper category

Master Thesis


Business Administration>Marketing & Sales




Master Thesis: The term Start-up is increasingly mentioned, but it is usually not clear (Savey, et al., 2020) because scholars have different interpretations of the term (Mazzarol, 2015). As companies move from small local businesses to large technology companies, now positioning themselves as start-ups, the term has evolved over time (Cook. S, 2020). There are many definitions of a startup. It can be defined as an entrepreneurial enterprise established by one or more founders to produce and sell innovative products or services (Investopedia, 2020). According to Laari-Salmela et al. (2017), Start-up is a company that has been in the industry for less than 10 years. According to a comprehensive literature analysis by Gruber (2004), start-ups have few attributes. The first and most frequently mentioned attribute is "novelty", that is, companies in the early stages of growth. The "small" of such enterprises is the second characteristic. The third feature is environmental volatility, manifested by the instability of buyers and profits (quoted from Eergeer and Sigfridsson 2018). Therefore, start-ups can be defined as new small businesses whose purpose is to market innovative products with limited funds. Since start-up companies are newly established companies, they need to carry out strategic work when marketing the brand. They should use limited capital and use creative and unorthodox methods to gain momentum (Haereid and Indregård, 2015). Start-ups must emphasize the economic aspects of marketing, such as social media marketing, email, word of mouth (WOM), etc. Therefore, they must focus on 4Is: information, identification, innovation and interaction (Stokes, 2000) instead of the traditional marketing 4 Ps (product, price, location, promotion) or 7 Ps (product, price, location, promotion, process, Personnel and physical evidence). 2.2 Digital marketing Over time, the term "digital marketing" has evolved from a specific term describing the marketing of goods and services using digital platforms to describing the combination of digital technology to attract consumers and create consumer habits, support brands, and maintain customers And increase revenue (Financial Times,, cited in Kannan and Li, 2017). Therefore, digital marketing can be described as a flexible, technically supported framework through which companies work with consumers and partners to develop, connect, generate and retain value for all stakeholders (Kannan and Li, 2017). Digital marketing is the use of mobile phones, computers and other media devices to reach consumers through social media, websites, search engines, and applications. Digital marketing has great potential. One of the main goals of digital marketing is to determine how customers use emerging technologies and incorporate this insight into the organization's strengths. The above structure describes the marketing process and the central theme of the technology that will continue to have a huge impact on emerging digital technologies. It includes not only the specified components, but also the configuration between these components. The system also emphasizes the focus on the roles and responsibilities of digital media that may have internal or external impacts on the organization. These digital technologies lead to an increase in the value of customers and companies. The use of digital media platforms in marketing has accelerated, allowing more customer contact in order to obtain information and feedback from consumers and expand the target market. There are different types of digital marketing, as described below: Interactive marketing Interactive marketing is a method that uses dynamic content (such as layered information, personalized content, visual narrative, and two-way interaction) to interact with consumers. The goal of interactive marketing is to make content relevant and attractive to consumers. Personalized content Personalized content uses advanced technology to collect data about consumer geography, demographics, and life cycle information. Then, the system creates a profile for each consumer, which can then be used to target certain individuals to create a personalized, relevant and meaningful experience, making it more likely for consumers to interact with the content through shared content (Galetto , 2016). Hierarchical information Use hierarchical information when advertising is designed to educate consumers about brand names, products, or services. In this method, detailed information is provided in small increments. For example, a small amount of information provided in quick and easy-to-read fragments can be used to tell the brand story, thereby gradually showing more information to interested consumers. Two-way interaction is the use of advertising as an activity for consumers to participate. Two-way interaction uses interactive tools such as games, interactive videos and puzzles to provide consumers with a more powerful experience (Galetto, 2016). 2.3 Digital Marketing Strategy The increasing success of technology integration companies in marketing strategies highlights the need for in-depth analysis of digital marketing strategies (Gibson, 2018). A strategic shift to customer-centric marketing activities enables companies to participate in a new era of revolutionary marketing strategies that use digital marketing to meet their key marketing norms (Gibson, 2018). In every marketing strategy, digital marketing is of great significance to companies, regardless of market, scale or nationality. Therefore, companies need to use this marketing method more than ever to maintain success. Read Less