Digital Transformation of SME Marketing Strategies : Innovating for the 4.0 Era

SMEs represent more than 95% of businesses operating in global markets. These businesses are the fabric of any economic system both in developed and emerging countries, and are the main constituents of any global supply chain throughout the world. However, research on new 4.0 marketing strategies for this kind of businesses has been largely neglected. Extant literature mostly neglects, or fails to articulate the importance of emerging technology such as Big Data, Artificial Intelligence and VR/AR for SMEs. Building on that, this book reviews existing literature on innovation and new technology in marketing for SMEs, what they could do and should avoid. Then, presenting multiple case study from SMEs operating in diverse industries (fashion and design, food and wine, financial services), it develops a practical strategic framework that could be used by SMEs wishing to effectively innovate their marketing strategies in our contemporary digital era. It will be an essential resource for students and researchers of marketing, innovation and industry 4.0. Contents 5 About the Authors 9 List of Figures 11 List of Tables 12 1: Introduction 13 References 16 2: SMEs’ Digital Transformation from a Marketing Perspective 18 2.1 What Does Digital Transformation Mean in the Marketing Literature? 18 2.1.1 Internet, Computer, and Businesses. A Brief Overview 18 2.1.2 The Expressions of Digital and Digital Technologies: How Do They Become Two of the Most Diffused Jargon in Management and Marketing Language? 22 2.2 The Effects of Worldwide Diffusion of Digital Processes and Transformation for SMES 28 2.3 Digitalization in Industry 4.0: A New Challenge and Opportunity for SME Marketers 37 References 49 3: New Technologies and SMEs’ Business Model: ‘Marketization 4.0’ 55 3.1 The Key Drivers Shaping Future Digital Trends 55 3.2 A Holistic and Integrated Overview of New Technology Implementation in SMEs 57 3.2.1 Sensors and Actuators 59 3.2.2 Smart Beacons and Radio Frequency Identification (RFID) 60 3.2.3 Mobile Technologies 61 3.2.4 Cybersecurity Tools 62 3.2.5 Internet of Things (IoT) 63 3.2.6 Embedded Systems (Cyber-Physical Systems) and Cloud Systems 65 3.2.7 Additive Manufacturing 66 3.2.8 Robotics Technologies 67 3.2.9 Virtualization Techniques (Virtual Reality, Augmented Reality, and Simulation Techniques) 68 3.2.10 Big Data Analytics, Machine Learning and Artificial Intelligence 70 3.2.11 Blockchain and Smart Contracts 72 3.2.12 Digital Payments 74 3.3 How Technologies 4.0 Are Affecting SMES’ Business Model and Marketing Strategies 76 3.3.1 The Impact of Technologies 4.0 on Business Models 79 3.3.2 Marketing Strategists in the 4.0 Landscape: How to Lever New Technologies 82 References 85 4: Marketing 4.0 for SMEs in the Digital Era: A Customer-Centric Approach 90 4.1 The Evolution of Marketing: Marketing to Digital Generations 90 4.2 Marketing in the Digital Age and the New Customer Journey 97 4.3 Big Data for Big Profit 106 4.4 Transforming Big Data Into Small Data 112 4.4.1 Big Data, Small Data, and Smart Insights 112 4.4.2 Which Data Should SMEs Capture? 114 4.4.3 The Promises and Perils of Blockchain Protocols to Analyze Big Data 116 4.5 Emerging Mechanisms to Generate Competitive Advantage in the Digital Era 118 4.5.1 Adopting Competitive Intelligence Tools 118 4.5.2 Adapting the Value Proposition 125 Offering of Digital Products in Addition to Physical Ones 125 Offering New Additional Services That Could Be Purchased Only Through an Online Platform 127 Integrate Digital Technologies Into Existing Physical Stores 128 Reimagine Brick-and-Mortar Positioning 129 References 134 5: Case Studies: From Theory to Practice 141 5.1 Methodological Approach 142 5.2 Selected Cases and Data Collection 149 5.2.1 SMEs’ Digitalization and Marketing in the Fashion Industry 151 5.2.2 SMEs’ Digitalization and Marketing in the Food and Wine Industry 154 5.2.3 SMEs’ Digitalization and Marketing in the Fintech Industry 157 5.2.4 SMEs’ Digitalization and Marketing in Fashion Distribution 159 5.2.5 Home Décor and Furniture SMEs Digitalization of Marketing Strategies 161 5.3 Results: The Common Path Toward Digitalization 163 References 165 6: How Can Managers Transform SME Marketing Strategies in a 4.0 Fashion? 168 6.1 SME 4.0 Marketing Transformation 168 6.1.1 Identify Who Is Leading the Way 172 6.1.2 Making the Case for Digital Transformation: Crafting the Vision Within Your Business 173 6.1.3 Benchmarking Current Capabilities and Defying Resource Requirements 175 6.1.4 Integrating New Digital Technologies Into Current Systems and Processes 179 6.1.5 Handling Change Management by Managing Culture 181 6.1.6 Measuring the Outcomes 182 6.1.7 Don’t Forget About Customers 184 6.1.8 Tools to Manage the Process 188 6.2 Effective Strategies and Channels for SMEs 191 6.3 Effects of 4.0 Marketing Strategies 192 References 195 7: Conclusion 197 References 200 References 201 Websites 201 Index 203