Final Essay

History has proven that technological innovation can always change how we live and how marketers practice marketing. Nowadays, the creative destruction that digital technology unleashed is changing the nature of marketing. Creative destruction, coined by Joseph Schumpeter(1942), refers to a process by which the emergence of something innovative supplants the outdated and declining one. In modern marketing use, however, this term is more likely refers to a revolution of marketing mix in order to adjust to the transformation of marketing environment. In this paper, I will attempt to demonstrate the impacts of digital technology on marketing planning: the positive effect through efficient communication and low expense and the challenge that come

On one hand, it greatly reduces marketing cost; on the other hand, it helps increasing the revenues. According to Neustar 2014 Q1 Media Intelligence Report, digital technology is ranked as the most cost effective channel (Q1 2014 Global Media Intelligence Report, 2014). The cost-effectiveness makes digital technology to be a prevalent tool for marketing, especially for small and medium size enterprises which could maximum their competitiveness without paying much expense. Honestly, communicating with customers and building customer relationship should help companies increase revenue. However, there are ways to directly gain profits through digital technologies. On Facebook, retailers can set up a Facebook store app. On Twitter, marketers can post the products or services with a link. There are also various methods to increase sales in YouTube, Instagram and other digital technologies. Nowadays, there are numerous companies make successful campaign through free digital technologies. For example, Dell implemented fruitful marketing campaign on Facebook and Twitter and announced it made $6.5 million revenues through the

With the invention of digital technologies, the initiative has converted to the customers, which requires the companies to adjust their marketing strategy as well. Some large companies might adapt to the changes smoothly, such as Bank of America, which has been successfully managing the customer relationship through Twitter, and Lenovo, which has established an online community to provide service and support, some other companies, however, get through this change. Since the digital technologies can be easily accessed by the customers whenever and wherever they want, which allow them to reach all sources of information related to the product, service and experience, even the negative customer reviews. Nowadays, a comment of a video by a dissatisfied consumer can become a viral within an hour. To makes matter worse, a negative video gives rise to social aggression to the product, service and experience. Customers are no longer as gullible as usual to receive every message delivered by the marketers. Instead, they prefer to believe in the words of their communities rather than have faith in the marketers. Companies, hence, are more likely to find it difficult to manage the information that customers receive about their brands (Schultz, Malthouse and Pick, 2012), which is potentially harmful to companies. If customer spread negative reviews about the