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FINAL PAPER E-COMMERCE AND INFORMATION SYSTEMS TRANSFORMATION OF MARKETING STRATEGIES IN THE DIGITAL ERA - Edited
FINAL PAPER E-COMMERCE AND INFORMATION SYSTEMS TRANSFORMATION OF MARKETING STRATEGIES IN THE DIGITAL ERA - Edited
ARRANGED BY :
M. ZACKY: 12250315382
Writer
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LIST OF CONTENTS
FOREWORD.............................................................................................................................1
CHAPTER I..............................................................................................................................3
INTRODUCTION.....................................................................................................................3
1. 1 BACKGROUND.............................................................................................................3
1. 2 PROBLEM FORMULATION......................................................................................4
1. 3 OBJECTIVES.................................................................................................................5
CHAPTER II.............................................................................................................................6
DISCUSSION............................................................................................................................6
2. 1 INFORMATION SYSTEM...........................................................................................6
2. 2 E-COMMERCE...........................................................................................................10
2. 3 INDUSTRIAL REVOLUTION..................................................................................16
2. 4 DIGITAL MARKETING............................................................................................21
CHAPTER III.........................................................................................................................32
CLOSING................................................................................................................................32
3. 1 CONCLUSION.............................................................................................................32
3. 2 SUGGESTIONS...........................................................................................................33
BIBLIOGRAPHY...................................................................................................................35
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CHAPTER I
INTRODUCTION
1. 1 BACKGROUND
The digital era has changed many aspects of human life, including marketing. In this
era, consumers have broader access to information and have higher expectations for their
shopping experience. This requires marketers to carry out transformations in their marketing
strategies
Changes in consumer behavior are one of the main factors driving the transformation of
marketing strategies in the digital era. In this era, consumers have wider access to information
through various digital platforms, such as the Internet, social media, and mobile devices. This
makes consumers more educated and more critical in making purchasing decisions.
Apart from that, consumers in the digital era also have higher expectations for their
shopping experience. Consumers want an easier, more comfortable, and personalized
shopping experience. This requires marketers to offer shopping experiences that are more
relevant and in line with consumer needs.
E-commerce is one solution that can help marketers to reach consumers in the digital
era. E-commerce allows marketers to reach consumers globally, 24/7, and more cost-
efficiently. In addition, e-commerce also allows marketers to collect consumer data more
accurately and in real-time, which can be used to increase the effectiveness of their marketing
strategies.
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Marketing strategy transformation in the digital era can be done in various ways,
including:
Utilize social media: Social media is one of the most popular platforms in the digital
era. Marketers can utilize social media to build relationships with consumers,
disseminate product information, and promote events or promotions.
Utilizing SEO and SEM: SEO (search engine optimization) and SEM (search engine
marketing) are techniques that can be used to increase the visibility of a company's
website in search engines. This can help marketers reach consumers who are looking
for products or services offered by the company.
Leverage consumer data: Marketers can leverage consumer data to create more
accurate market segmentation and develop more relevant marketing campaigns.
1. 2 PROBLEM FORMULATION
a. How do Information Systems Support Marketing Strategy Transformation in the E-
Commerce Context?
b. How E-Commerce Has Changed The Landscape Of Marketing And Sales Strategies In
The Digital Age?
c. How has the digital industrial revolution influenced the evolution of marketing
strategies in the context of e-commerce?
d. How do developments in digital marketing impact marketing strategies in the e-
commerce industry?
e. How Do Security And Privacy Challenges In E-Commerce Impact Consumer Trust
And Company Marketing Strategies?
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1. 3 OBJECTIVES
a. Identifying How Information Systems Support Integration, Data Analysis, and
Strategic Decision Making in the Context of E-Commerce Marketing.
b. Explains how e-commerce has changed marketing and sales strategies, and its impact
on business models in the digital era.
c. Investigating the Impact of the Digital Industrial Revolution on Changes in Marketing
Strategies and Consumer Relations in the E-commerce Context.
d. Assessing How Digital Marketing Developments Influence Marketing Strategy,
Including the Role of Online Marketing Platforms and Tools in the E-commerce
Context.
e. Studying the Impact of Security and Privacy Challenges on Consumer Trust and How
Company Marketing Strategies Can Respond to and Strengthen Security in E-
Commerce Transactions.
a.
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CHAPTER II
DISCUSSION
2. 1 INFORMATION SYSTEM
A. Information Systems Support Marketing Strategy Transformation in the E-
Commerce Context
An information system is a system within an organization that meets the needs of daily
transaction processing, supports operations, is managerial and strategic activities of an
organization, and provides certain external parties with the necessary reports.
Information system components called building blocks are input block, model block,
output block, technology block, database block, and control block. These six blocks interact
with each other to form a single unit to achieve their targets.
Input block: represents data entering the information system, including methods and
media for obtaining the data to be entered, which can be in the form of basic
documents.
Model block: consists of a combination of procedures, logic, and mathematical
models that will manipulate/transform input data and data stored in the database to
produce the desired output.
Output block: the product of an information system is output in the form of quality
information.
Technology block: is a toolbox in an information system. Technology consists of 3
main parts, namely technicians (Brainware), software (software) and hardware
(hardware). Technicians can be people who know technology and make it operate
(computer operators, programmers, data processing operators, telecommunications
specialists, systems analysts). Software technology takes the form of software
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applications (programs). Hardware technology in the form of input technology (all
devices used to capture data such as keyboards, scanners, and barcodes), output
technology (devices that can present the resulting information such as monitors,
printers), processing technology (CPU components), storage technology ( all
equipment used to store data such as magnetic tape, magnetic disk, CD) and
telecommunications technology (technology that allows long-distance connections
such as the internet and ATM)
Database block: is a collection of interconnected data files that are organized in such a
way that they can be accessed easily and quickly. ?
Control block: Controls need to be designed and implemented to ensure that things
that can damage the system can be prevented or if an error has already occurred, it can
be resolved immediately.
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Decision Support Systems (DSS) DSS is almost the same as SIM because it uses a
database as a data source. DSS originates from SIM because it emphasizes the
function of supporting decision-makers throughout all stages, although the actual
decision remains the exclusive authority of the decision-maker.
Expert Systems (ES) and Artificial Intelligence (AI) AI are intended to develop
machines that function intelligently. Two ways to do AI research are to understand its
natural language and analyze its ability to reason through problems to their logical
conclusions. Expert systems use AI thinking approaches to solve problems and deliver
them to business users. Expert systems (also called knowledge-based systems)
effectively capture and use the knowledge of an expert to solve problems experienced
in an organization. In contrast to DSS, DSS leaves the final decision to the decision
maker while expert systems select the best solution to a specific problem. The basic
component of an expert system is a knowledge base, namely an interference engine
that connects users with the system by processing questions through structured
language and a user interface.
Group Decision Support Systems (GDSS) and Computer-Support Collaborative Work
Systems (CSCW) If groups need to work together to make semi-structured and
unstructured decisions, then group decision support systems create a solution. GDSS
is intended to bring groups together to solve problems by providing assistance in the
form of opinions, questionnaires, consultations, and scenarios. Sometimes GDSS is
called CSCW which includes supporting software called "groupware" for team
collaboration over networked computers.
Executive Support Systems (ESS) ESS depends on information generated by TPS and
MIS and ESS helps executives manage their interactions with the external
environment by providing graphics and communication support in inaccessible places
such as the office
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Examples of information systems include:
2. POS (Point Of Sale) system implemented in supermarkets with barcode reader support to
speed up data entry.
3. An academic service system that allows students to obtain academic data and register
courses taken each semester.
4. Credit sales system to be able to monitor customer debts that are due. 5. Smart card system
that can be used by medical personnel to find out the patient's medical history.(Ramadani &
Tarigan, 2020).
This is indicated by the variable consumer perception of the risks posed by e-commerce
which is quite high. Meanwhile, consumer confidence in e-commerce tends to be low. One of
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the influencing factors is the reliance on traditional marketing methods.(Mumlahana et al.,
2017).
The following are some of the roles of information systems in digital marketing, namely:
a. Develop a sales plan. Here we will help you create a blueprint plan for building a distro
business, where you will start from the beginning and finish it well and what the product sales
plan will look like.
b. Creating reports In this case, we create reports that contain information about sales, which
can be sales results, stock levels, income and expenses, receipts, orders, etc.
c. Calculation of income and costs. This can help us find out how much income and expenses
we received today or the previous day. 4. Makes it easier to manage inventory of raw
materials or products. So you can easily determine when raw materials and their basic prices
need to be replenished correctly. Managing raw materials or products is also easy because you
no longer need to think about how to manage inventory efficiently or check inventory every
day to find out what stock is available.
d. Analysis of sales results This makes it easier for you to help, from managing operations and
viewing employee performance, availability of raw materials or product inventory, tracking
payments to estimating profits. On the other hand, it can help you make decisions about the
next plans to implement to make your business more profitable.
e. Growing profits You can increase profits by providing accurate sales reports and real data
such as best-selling products, busiest times in the store, and more. If you know your sales and
business conditions, you can make decisions more easily and develop better marketing
strategies. an effective way to increase profits.(Hardiansyah et al., 2023)
2. 2 E-COMMERCE
A. E-Commerce Changes the Marketing Landscape and Sales Strategy in the Digital
Era
Improvements in technology and internet access have drastically changed the business
landscape, creating significant changes in various aspects of the economy. This phenomenon
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has its roots in the development of information and communication technology (ICT), which
has opened the door to innovation in various industries. In a business context, especially in the
current era where digitalization has become one of the main keys, the e-commerce industry
has emerged as a major force driving the growth of the digital economy. Improvements in
technology and internet access have had a significant impact on the business world,
drastically changing the business landscape. One of the aspects most affected by this change
is the e-commerce industry.
E-commerce will change all marketing activities and also cut operational costs for
trading activities. The processes in E-commerce are as follows:
c. Securely automate customer accounts (both account numbers and credit card numbers).
Types of E-COMMERCE E-commerce can be divided into several types which have
different characteristics:
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Trading partners who are already known and generally have a long
relationship. This information should be exchanged only with the partner.
Because you already know the person you are communicating with, the type of
information sent can be structured according to your needs and trust.
Data exchange takes place repeatedly and periodically, for example, every day,
with a mutually agreed data format. In other words, the services used are
certain. This makes it easier to exchange data for two entities that use the same
standards.
One actor can take the initiative to send data, without having to wait for the
partner.
The model commonly used is peer-to-peer, where processing intelligence can
be distributed across both business actors
2. Business to Consumer (B2C)
Business to Consumer eCommerce has the following characteristics:
Open to the public, where information is disseminated to the public.
The services provided are general (generic) with mechanisms that can be used
by the general public. For example, because the Web system is commonly
used, services are provided using a Web basis.
Services are provided based on request (on demand). Consumers take the
initiative and producers must be ready to respond according to requests.
The client/server approach is often used where the assumption is taken that the
client (consumer) uses a minimal system (Web-based) and processing
(business procedures) is placed on the server side.
3. Consumer to consumer C2C)
In C2C someone sells a product or service to another person. Can also be called
customers to customers, namely people who sell products and services to each other.
C2C Auctions: In dozens of countries, C2C sales and purchases on auction
sites are numerous. Most auctions are conducted by intermediaries, such as
eBay.com, and auctionanything.com; Customers can also use special sites such
as buyit.com or bid2bid.com. Additionally, many customers conduct their own
auctions such as greatshop.com provides software to create online C2C reverse
auction communities.
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Small Ads, People sell to other people every day through small ads (classified
ads) in newspapers and magazines. Internet-based small ads have one big
advantage over the more traditional types of small ads: they offer a national
audience rather than just a local one. Small advertisements are available
through internet service providers such as AOL, MSN, etc.
Personalized Service. Many personal services (lawyers, handymen, tax
preparers, investment advisors, dating services) are available on the Internet.
Some of them are available in small advertisements, but others are listed on
special websites and directories. Some are free and some are paid
4. Consumer to Business (C2B)
In C2B consumers communicate the need for a particular product or service, and
suppliers compete to provide that product or service to consumers. For example, on
priceline.com, customers specify the desired product and price, and Priceline tries to
find suppliers who meet those needs. (Irmawati, 2011)
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E-Commerce Success Factors
Selection and Value, Selection and value factors include attractive product choices,
competitive prices, satisfaction guarantees, and customer support after sales.
Performance and Service, Performance and service factors include navigation,
shopping processes, and purchases as well as fast and easy delivery confirmation.
Look and Feel, Look and feel factors include web displays, websites, shopping areas,
multimedia products, catalog pages, and features for interesting shopping.
Advertising and incentives, Advertising and incentive factors include: targeted web
and e-mail promotions and special offers, including advertising on various affiliate
sites.
Personal attention: Personal attention factors include personal web pages, personalized
product suggestions, web advertisements, and e-mail notifications, as well as
interactive support for all customers.
Community relationships, and relationship factors with communities include virtual
communities of customers, suppliers, company representatives, and others through
newsgroups, chat rooms, as well as various links to related sites.
Security and Reliability, Security and reliability factors include the security of
customer information and transactions on the website, reliable product information,
and reliable order fulfillment. (Irmawati, 2011)
In implementing e-business, there are seven key factors for good resources, namely:
human resources (human assets), processes, organizational structure, systems (supporting
structures for information systems), changes in organizational culture, leadership, and
partnerships. (Management & E-business, 2011)
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Source: Central Statistics Agency, E-commerce Statistics 2022
The Importance of Targeted Digital Marketing These findings reflect the importance
of targeted and effective digital marketing in the context of e-commerce. In a
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competitive e-commerce environment, companies must understand that targeted
advertising and promotions for application users can produce better results than broad,
untargeted promotions. Targeted promotional strategies allow companies to allocate
resources more efficiently and reach relevant audiences.
Understanding Consumer Behavior To implement effective promotional strategies,
companies need to have a deep understanding of their consumer behavior. This
includes understanding product preferences, purchasing cycles, in-app entry and exit
points, and trends that influence purchasing decisions. In the fast-changing world of e-
commerce, companies need to constantly monitor and mine consumer data to keep
their insights relevant.
Promotional Campaign Optimization Careful use of data in promotional campaign
development is the key to success. By analyzing consumer data, companies can
identify patterns and behaviors that provide valuable insights. This includes
determining the right timing for promotions, selecting the most effective type of
promotion (e.g., discounts, giveaways, or exclusive content), and personalizing
promotional messages for individual users.
Promotional Performance Measurement Promotional campaign performance
measurement is an important step in the digital marketing cycle. Companies need to
have clear metrics to measure the success of campaigns. This can include KPIs (Key
Performance Indicators) such as conversion rate, retention rate, customer lifetime
value, and return on investment (ROI). Good performance measurements allow
companies to evaluate whether their promotional strategies are working or whether
adjustments need to be made.(Asyifah & Ispiyani, 2023)
2. 3 INDUSTRIAL REVOLUTION
A. The Digital Industrial Revolution Influences the Evolution of Marketing
Strategies in the E-Commerce Context
In the 21st century, the world has faced the digital era of "industrial revolution 4.0",
namely a period of creation of digital technology that is all-sophisticated and continues to
develop and is continuously updated. At this time, humans are presented with very
sophisticated digital technology facilities complete with automation in their daily lives, such
as robots, artificial intelligence, the internet of things, and so on to facilitate all human work
activities. Industry 4.0 is the latest advancement in the manufacturing industry that has paved
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the way for the systematic implementation of Cyber Physics Systems (CPS), where
information from all related perspectives is closely monitored and synchronized between the
physical factory and the virtual world of the factory. computing room. Additionally, by
leveraging advanced information analytics, networked machines will be able to work more
efficiently, collaboratively, and superiorly. Trends are changing the manufacturing industry
into the next generation. Along with adapting to the Industrial Revolution 4.0, Indonesia and
even the world were shocked by a new idea in early January 2019, namely "Society 5.0" by
Shinzo Abe who is the prime minister of Japan at the World Economic Forum in Davos,
Switzerland. According to Shinzo Abe, industry 4.0 is based on the concept of artificial
intelligence (AI), whereas Society 5.0 is more focused on human resources themselves.
Society 5.0 is considered a concept built on the basis of humans and technology. In this era,
society will be faced with a life accompanied by sophisticated technology. Therefore, HR
competency must be improved so that they are able to utilize and maximize every
technological innovation such as the Internet of Things, Big Data, robots, and Artificial
Intelligence so that society is able to overcome various social problems and life challenges.
(Tahar et al., 2022)
The digital revolution is currently experiencing its peak with the birth of digital
technology which has had a massive impact on human life throughout the world. The latest
industrial revolution or fourth generation encourages automation systems in all activity
processes. Increasingly massive internet technology not only connects millions of people
throughout the world but has also become the basis for online trade and transportation
transactions. The emergence of online transportation businesses such as Gojek, Uber, and
Grab shows that the integration of human activity with information technology and the
economy is increasing. The development of autonomous vehicle technology (driverless cars),
drones, social media applications, biotechnology, and nanotechnology increasingly
emphasizes that the world and human life have changed fundamentally. (Predy et al., 2019)
The development of Industry 4.0 began to be implemented by business actors in 2011.
The development of Industry 4.0 in the business sector has had an impact on changing the
business system, namely from conventional businesses to modern digital-based businesses to
keep up with technological developments. Angela Merkel stated "Industrial Revolution 4.0 is
a complete change in production aspects in an industry by combining the internet and digital
technology with conventional industry. Meanwhile, according to Schlechtendahl et al,
"Industrial Revolution 4.0 is an industrial environment where all entities can always be
connected and able to share information with each other." The Industrial Revolution 4.0 is
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demonstrated by the increasing and integrated use of the internet and digital technology. The
use of digital technology in business activities has a positive impact, including that seller and
buyer interactions can be done online without having to interact directly, costs incurred are
also cheaper with internet access, the distance factor is less pronounced, and access is
available 24 hours. Business actors can also easily introduce their products or services to
consumers via an internet network that can be accessed by all consumer segments. (Novy et
al., 2023)
Technological advances change the marketing system which was previously carried out
conventionally into a marketing system that is carried out digitally. Coviello, Miley, and
Marcolin (2001) stated that digital marketing is the use of interactive technology in creating
and connecting interactions between companies and consumers. Meanwhile, according to
Ridwan Sanjaya and Josua Tagiran (2009: 47), digital marketing activities include branding
using web-based internet media such as blogs, websites, email, Adwords, or social networks.
One form of digital marketing is the application of e-commerce as a marketing medium.
Laudon et al (2014, 10) state, that e-commerce is the use of internet, web, or application
media to carry out digital business transactions between companies and consumers. Turban et
al. (2015, 9) explain that e-commerce consists of several main frameworks, namely people
consisting of sellers, buyers, intermediaries, and information systems; public policies and
regulations such as taxes, regulations; marketing and advertising; supporting services such as
logistics, payments, system, and network security; as well as business partnerships. The
development of an e-commerce system for MSMEs is carried out with the aim that the MSME
work culture which still relies on conventional marketing can change to digital marketing and
market MSME products to consumers via the Internet which will ultimately increase sales
volume. According to data from the Central Statistics Agency, as of December 2021, 32.23%
of businesses had carried out e-commerce. There are many types of goods and services sold,
namely 41.5% in the form of food and drinks, 16.25% in the form of fashion, 9.67% in the
form of household necessities, 6.85% in the form of cosmetics, and 6.17 in the form of
transportation services.
One of the shopping center companies managed by Garena, which has now changed its
name to SEA Group, is the Shopee Indonesia company. Shopee is a C2C or consumer-to-
consumer business by presents a mobile marketplace application that can be easily accepted
by all levels of society, including the market in Indonesia. E-WOM is one of the marketing
communications used in the business world.
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With marketing communications in the form of electronic word of mouth, companies
gain benefits with low costs and high impact. There is e-WOM on Shopee, especially for
beauty products, so that consumers can easily collect and receive information about
purchasing experiences from other consumers regarding products they will buy on Shopee.
One of the products that will be explained is Chava Saffron Face Mist by Chaiza which is sold
by the chaizaofficial. I'd shop on Shopee.
Marketing strategies in this pandemic condition are one way to accelerate economic and
business industrial activities following the Industrial Revolution 4.0. From the explanation
regarding e-WOM in one of the e-commerce sites in Indonesia, namely Shopee, it can be seen
that the influence of eWOM on a consumer's purchasing decision. With the advent of the
digital era, the economic industry must also be able to utilize technology that can support its
functions and objectives. The shift from traditional WOM to e-WOM is one strategy that can
be used by economic actors to gain a good image and reputation for their company or
organization. However, you need to remember, that in WOM the source of the message is
usually someone close or known so that the credibility of the message does not need to be
questioned, in e-WOM the message can be found on social networking sites and other online
media platforms with an unknown source, which can put emphasis on messages and content
that are distributed creatively and are able to create positive conversations among the
audience. E-WOM uses a two-way communication system so that consumers and producers
and even consumers and consumers can interact to obtain information. Increasing competition
will cause consumers and decision-makers to try to collect as much information as possible
and not have the free time to conduct surveys first.
Some common applications related to e-commerce include (1) E-mail and Messaging;
(2) Content Management Systems; (3) Documents, Spread Sheets, Databases; (4) Accounting
and Financial Systems; (5) Delivery and Order information; (6) Information Reporting from
Clients and Enterprise; (7) Domestic and International Payment Systems; (8) News Group; (9)
Online Shopping; (10) Conferencing; (11) Online Banking/Internet Banking; (12)
Digital/non-Digital Products; and (13) Online SEO. (Risdiana, 2021)
E-commerce is part of the Industrial Revolution 4.0 that must be faced. Sellers need to
learn more to master the technology industry so they can keep up with the flow of business
developments in this increasingly sophisticated era. With this, the convenience of facilities
offered by technology will increase, so that prospective buyers prefer to shop and use services
that only use technology, namely by opening an application on a cellphone without a long
duration, which is practical. A marketing strategy through e-WOM will help the process of
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various parties involved, namely e-commerce developers, sellers, and buyers. On the other
hand, what needs to be paid attention to is the e-commerce policy in providing benefits
between sellers and buyers, service providers and customers in the service sector, or providing
adequate facilities in e-commerce itself. Especially for Shopee, in facing digital industry 4.0,
it can add interaction features to obtain information through e-WOM carried out by social
network users themselves. With e-commerce and e-WOM facilities, it will help advance
economic activities in digital industry 4.0. (Aynie et al., 2021)
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5. On-demand service demand service is a business whose service system is based on or
preceded by consumer demand. When there is an order from a consumer, the service provider
will immediately respond. One example of a service provider in this form is GoJek.(Purba et
al., 2021)
The development of digital marketing has had several impacts on consumers which
ultimately affect business actors, including:
1) Consumer loyalty to one brand is decreasing. In the digital era, consumers can easily get
the information they want via the internet. With this, consumers can easily search for product
information from brand competitors to find comparisons in order to make purchasing
decisions. So consumer loyalty to products from brands they have used previously decreases.
2) Consumers and Word Of Mouth. Consumers now find it easier to provide reviews about
the products they have used. Consumers will share reviews after using a product, whether
positive reviews that will improve the product's image or negative reviews that can reduce or
even destroy the product's image.
3) Consumer assessment of products is increasingly complicated. Every consumer has a
different view on assessing a product
4) Consumer tolerance is decreasing. In providing services to consumers, whether regarding
product or service quality, business actors need to be careful because consumers in this digital
era easily judge a brand due to dissatisfaction with the product so they will give a negative
response to the product.
5) Consumers are no longer afraid to try new or different products that can provide better
service to their needs.
6) Nowadays consumers can have more than one social media. With digital marketing,
MSMEs can reach potential consumers. (Novy et al., 2023)
2. 4 DIGITAL MARKETING
A. Digital Marketing Developments Have an Impact on Marketing Strategies in the
E-Commerce Industry
In today's digital era, there are many business people. Business people compete in using
digital platforms to achieve a target within the company, a medium for conveying messages,
which is needed in business activities, business development, several stages in the progress of
a free trade era, increasingly communication in business, these stages give rise to competition
between companies, including careful planning, Behaving in business communication in a
company plays a professional role, being a good listener, is important in the running of a
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business, as well as the stages of the process in business marketing communication, of course
requires through digital platforms covering good communication senders, especially to
determine what consumers will convey so that the products they own can be delivered
through digital platform, planning to be fully accepted in the content environment, selecting
channels, setting business targets, the company actively strategizes (target market) and
determines communication measurements in order to achieve performance excellence, in
stages through the company platform, so that digital business communication science is a
defined goal as and marketing can pay attention to the process of transferring messages to
understand the stages of the company, so that the business becomes more effective from
communication strategies, use of concepts and efficiency.(Oktaviani & Pratiwi, 2022)
And the term Digital Marketing may already be familiar. Developing a business with
the digital marketing concept is starting to be done a lot. For example, through content
marketing on websites or e-mail marketing. However, implementing this marketing system
requires qualified human resources. Especially those who have copywriting skills and people
who master the platform tools technically well. This new digital era can benefit companies
operating or seeking opportunities in international markets in various ways, such as
establishing and maintaining business relationships with customers in different and distant
foreign markets, regardless of economics, politics, culture, or anything else. difference;
collect reliable and useful information about buyers, competitors, and environmental
conditions in various countries to help make more informed international marketing decisions;
achieve cost-effective personalization and tailoring of their market products; manage cross-
border business transactions in a faster, cheaper, and more direct way to increase
competitiveness
Comparison of Traditional Marketing and Online Marketing If we compare online
marketing methods with conventional traditional marketing practices then there are many
areas and opportunities where online marketing is competent and has advantages and is
always preferable to it.
Unlike traditional marketing where we have to wait for a specified time frame to know
the response from customers, online marketing is real-time.
Since we can respond to customers in real-time, it is easier to track whether a particular
campaign is working for the product or not, and based on the feedback marketers can make
appropriate changes in promotional campaigns, in traditional marketing this flexibility is not
possible.
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In traditional marketing, it is difficult for small retailers to compete with big
competitors in the market due to the costs involved and strategy-making skills whereas in the
case of online marketing, through a sharp website, you can reach the target audience with a
wider reach with better service assurance.
Cost involvement is another point that creates a lot of difference between conventional
marketing techniques and online marketing; Business houses can create their own digital
marketing strategies at very little cost and replace conventional expensive advertising
methods such as print media, radio, television, and magazine coverage.
Through online marketing, compared to traditional marketing activities, after each
marketer optimizes the content of important words, compared to traditional marketing
activities, marketing activities can be seen anywhere in the world at the best cost. The scope
and scope of each promotional concept business is much wider. Search terms on a website,
then this is a great return on investment, and the marginal cost of maintaining a position is
very low.
Through e-marketing, marketers can make choices to stimulate target audiences to take
appropriate actions, visit respective websites, and learn about their products and various
functions and services. Through this mechanism, customers can express their interest in the
product and purchase the product. The exact options and feedback can also be seen on the
website. In this way, marketers can get effective opportunities to interact with customers. In
traditional marketing models, these opportunities are usually underestimated.
Through online marketing, brand development can be better than traditional marketing
models A well-designed website with good-quality information can meet customer needs and
create more opportunities to provide considerable value to its customers. Online marketing
can produce ripple effects and viral effects in promotions over traditional modes of marketing,
for example, using social media networking websites, email, and social media channels to
disseminate message content for quick sharing.(Fauziah et al., 2023)
B. The Role of Digital Platforms and Online Marketing Tools in Reaching the Right
Target Market
According to Sanjaya and Tarigan, digital marketing is an activity in carrying out
marketing or branding using various web-based media such as blogs, websites, e-mail,
Adwords, and social media. 12 Eres Graphic chose Instagram as the main platform in digital
marketing because it provides greater reach. extensive compared to other social media
platforms. This makes it possible to reach international clients and expand the market. To
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optimize sales on Instagram, Eres Graphic pays attention to several important elements such
as ensuring the logo used looks professional and creating a simple but informative bio.
Instagram also helps Eres Graphic in building strong branding. Through features such as
stories, posts, and reels, you can create professional and interesting content. By optimizing
visuals and content ideas, you can increase the value of the work posted and create the
impression that Eres Graphic is a quality, professional company
A content marketing strategy involves creating and distributing relevant content,
valuable, and interesting to attract and retain the attention of the target audience. The goal of
this strategy is to build brand awareness, expand reach, increase engagement, and drive action
from potential customers. The following are some commonly used content marketing
strategies and examples:
Research and Analysis: -Target Audience Research: Conduct in-depth research on the
target audience to understand their needs, preferences, and problems. -Competitor
Analysis: Analyze content created by competitors in the same industry to see what
works and how you can differentiate yourself.
Blogging: -Blog Content Creation: Blog regularly with content that is relevant,
informative, and useful for the target audience. -Guides or Tips: Provides practical
guidance or tips that help the audience overcome problems or achieve their goals.
Infographics: -Creating Infographics: Creating infographics that present information
visually to make content more interesting and easy to understand. -Interesting
Statistics or Facts: Share statistics, data, or interesting facts related to an industry or
topic of interest to your audience.
Video Marketing: -Video Content Creation: Creating interesting, informative, and
entertaining videos to convey messages or stories that are relevant to the audience. -
Tutorial or Demonstration: Create a tutorial or demonstration that helps the audience
understand the use of the product or solution being offered.
E-books or Guides: -E-book Writing: Write in-depth and comprehensive e-books on
topics of interest to the target audience. -Step-by-Step Guides: Create step-by-step
guides that help your audience complete a task or achieve a specific goal.
Case Studies or Testimonials: -Case Studies: Share case studies that show how your
product or service helps customers in solving their problems. -Customer Testimonials:
Collect testimonials from satisfied customers and share them through various
channels.
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Podcast or Webinar: - Podcast Creation: Create a podcast that invites expert sources to
share knowledge and insights with the audience. -Webinar: Hold an interactive
webinar to provide information and answer questions directly from the audience.
SEO Optimization: -Keyword Research: Identify keywords that are relevant and
frequently searched by the target audience. -On-page Optimization: Optimize page
elements such as title, description, URL, and content structure to increase visibility in
search engines.(Habib Fainto et al., 2023)
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The following is an explanation according to Chaffey and Fiona (2016). The benefits of
digital marketing are:
Connected With digital marketing, your business relationship with consumers
becomes very close, even in real-time. You can serve customers anytime, anywhere. It
can even be done automatically. For example, with a chatbot or just an automatic
order form. And able to reach wider consumers. For example, with FB Ads, with only
minimal costs, we can reach any province we want or even any country we want to use
as a target market.
Data The most important benefit of digital marketing is data. Digital marketing allows
us to access various data, starting with data related to marketing. This makes it easier
to answer questions such as, how effective the marketing carried out during one month
or how good was the brand campaign
awareness of the company's products or services and many other questions that are
difficult to answer using traditional marketing. Data can also take the form of more
detailed information about customers and potential customers. Starting from
demographic data to behavior that is almost impossible to obtain except with digital
technology. Much different from conventional marketing. Of course, this will make it
easier for businesses to adopt data-driven marketing.
Effective Armed with this data and in-depth analysis, every decision taken will be
effective
Efficient After making every decision effective, it will certainly have an impact on the
efficiency of your business organization. (II, 2016)
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purchases, sales, and payments using computers and Internet networks. Trust in e-commerce
is related to two aspects, namely trust in the seller and trust in the transaction process.
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Wilson (1997) believes that there are four factors that constitute security requirements
in e-commerce, namely authenticity, integrity, non-repudiation, and confidentiality. Wilson's
opinion is in line with Ratnasingham's (1998) statement which adds several aspects needed to
ensure the security of e-commerce activities, namely authorization, authentication, integrity,
confidentiality, availability, non-repudiation, and privacy. Authorization relates to the
authority of the person carrying out the transaction, what is meant is that the person carrying
out the transaction online is truly an authorized person. Authentication means that the
transactions carried out are genuine, not fictitious. One way to ensure the authenticity of
transactions in e-commerce is with a digital signature. What is meant by integrity is that the
transactions received are in accordance with what was desired or sent by the order without
any changes. Confidentiality is a guarantee that data related to e-commerce transactions can
only be accessed by interested parties. Availability relates to the guarantee of the availability
of access to official services or information. Non-repudiation relates to the mechanism used to
resolve problems that arise if one party denies having carried out a transaction. Privacy means
the confidentiality of information related to transaction actors, in this case, the information or
data of all parties to the transaction must not be opened to the public or disseminated to
unauthorized parties. (Bahtiar, 2020)
Obstacles often faced by users of e-commerce systems, such as lack of trust between
sellers and buyers, misuse of personal information provided by buyers to sellers, unfamiliarity
with shopping using catalogs, website models that are difficult to understand, delivery of
goods still feared being lost on the road, goods damaged during delivery and the goods
ordered do not match the consumer's wishes. As for the potential crimes that usually occur,
one example is fraud that usually occurs around us, such as money being transferred but the
goods not reaching the consumer or whether the goods sent are fake and not original. This
results in consumers canceling their intention to make online purchase transactions. (Widiana,
2021)
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The government as a regulator in developing the e-commerce climate prepares policies
and regulations that support the implementation of electronic transactions in e-commerce,
including:
No. 11 of 2008 concerning Electronic Information and Transactions (ITE) which has
been formulated in Law Number 19 of 2016 (UU ITE). Laws drafted by the government
(Kemenkominfo) together with the DPR to regulate all aspects of the engineering process.
This Law regulates information and electronic transactions, or information technology in
general. This Law has jurisdiction that applies to every person who carries out legal actions as
regulated in this Law, whether within the jurisdiction of Indonesia or outside the jurisdiction
of Indonesia, which have legal consequences in the jurisdiction of Indonesia and/or outside
the jurisdiction of Indonesia and are detrimental to Indonesia's interests. Regulations
regarding information and electronic transactions refer to several international instruments,
such as the UNCITRAL Model Law on e-commerce and the UNCITRAL Model Law on
eSignature. This section is intended to accommodate the needs of business people on the
Internet and the general public in order to obtain legal certainty in carrying out electronic
transactions.
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B. Steps That Can Be Taken To Strengthen Security And Privacy For Customers In
E-Commerce Transactions
According to Armesh et al. (2010), there are still many consumers who are reluctant to release
their credit card information to online merchants, for fear of losing control over their
accounts, so an evaluation of security features and attributes is needed, which includes the
possibility of (1) the site provides encryption, (2) the site requires users to set up an account
with an ID and password, and (3) a confirmation screen is displayed upon completion of the
purchase process to ensure accuracy. Apart from that, Ahmad and AlZu'bi (2011) specifically
show the use of Secure Socket Layer, which is widely used in the protocol field and is also
useful for online credit card payments. Therefore, its implementation needs to be designed to
provide: (1) a private and reliable channel for communication between two entities, (2) the
use of Java Applets that run in the user's browser, (3) the use of a Personal Identification
Number, and (4) ) integration of digital signatures and certificates related to the smart card
system. According to Ahmad and Al Zu'bi, a combination of using smart cards and fingerprint
biometric recognition offers safer and easier access to control computers than password
methods. According to Armesh et al. Privacy in e-commerce is defined as the willingness to
share information via the internet that enables purchases to occur. Therefore, the features that
need to be evaluated in the privacy attribute are (1) the use of statements for privacy, (2)
company policies in selling customer information to third parties, and (3) the use of trackers
to collect personal information. Meanwhile, Kassim and Abdullah (2010), stated that handling
privacy needs to refer to the protection of various types of data collected (with or without user
knowledge) during interactions between users and online systems.(Kinasih & Albari, 2012)
To be able to gain trust in e-commerce, Ratnasingham (1998) said that there are several
aspects that must be met, namely:
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in electronic transactions are risk, usability, ease of use, reputation of the e-
marketplace, seller reputation, seller expertise, and ease of transaction (Sfenrianto et
al., 2018)
The rapid development of digital data in Indonesia cannot yet be balanced with laws
that can regulate in detail guarantees for the protection of privacy rights. Until now, the law
governing the protection of personal data is still in the form of ministerial regulations and the
Information and Electronic Transactions Law (UU ITE) which are not adequate to regulate
this matter. The issue of protecting privacy rights needs to be addressed immediately,
especially after the leak of data from 87 million Facebook users in mid-2018 and the recent
rise in cases of misuse of personal data. One piece of legislation that is considered to be able
to comprehensively protect personal data is the General Data Protection Regulation (GDPR)
in the European Union. GDPR covers several things, namely regulation of data collection
providers, clarity on the relevance of the use of collected data, time limits for accessing
personal data, and ease of accessing and deleting personal data, meaning that platforms must
make it easy for users to delete data that has been provided to the platform. (Bahtiar, 2020)
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CHAPTER III
CLOSING
3. 1 CONCLUSION
The digital era has brought significant changes in the way businesses operate, including
in terms of marketing strategies. E-commerce, or electronic commerce, has become one of the
main trends in the digital era, and it has had a major impact on the way businesses market
their products and services. Information systems play an important role in supporting
marketing strategy transformation in the digital era. Information systems can help businesses
to:
Integrating data from various sources, such as websites, social media, and e-commerce
platforms.
Perform data analysis to understand consumer behavior and market trends.
Develop and implement effective marketing strategies.
E-commerce has changed marketing and sales strategies in several ways, including:
Increase market reach. E-commerce allows businesses to reach a wider target market,
both geographically and demographically.
Increase personalization. E-commerce allows businesses to provide a more
personalized experience to customers, based on the information collected from them.
Increase efficiency. E-commerce can help businesses improve operational efficiency,
such as ordering and shipping processes.
The digital industrial revolution has had a significant impact on changing marketing
strategies and consumer relationships in the context of e-commerce. The digital industrial
revolution has caused changes in consumer behavior, such as:
Increased use of mobile devices. Consumers are increasingly relying on mobile
devices to access information and make purchases.
Increased use of social media. Social media has become an important platform for
consumers to search for information, share experiences, and interact with brands.
Increased use of virtual reality and augmented reality technology. Virtual reality and
augmented reality technologies can provide new and exciting experiences for
consumers.
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The development of digital marketing has influenced marketing strategies in several
ways, including:
Increasing the importance of content. Quality content can help businesses attract and
engage customers.
Increasing the importance of data analysis. Data analysis can help businesses
understand consumer behavior and optimize their marketing strategies.
Increasing the importance of integration. Businesses need to integrate various digital
marketing platforms and tools to provide consistent experiences to customers.
Security and privacy challenges can negatively impact consumer trust and e-commerce
sales. Businesses need to take steps to strengthen security and privacy in e-commerce
transactions, such as:
Uses strong security technology.
Have a transparent and clear privacy policy.
Build trust with consumers.
Overall, the digital era has brought significant changes in the way businesses market
their products and services. Information systems, e-commerce, the digital industrial
revolution, and the development of digital marketing have played an important role in the
transformation of marketing strategies in the digital era. Businesses that want to succeed in
the digital era need to understand and adopt these trends. The following are several
recommendations for businesses in implementing marketing strategy transformation in the
digital era:
Invest in sophisticated information systems. Sophisticated information systems can
help businesses to integrate data, perform data analysis, and develop effective
marketing strategies.
Track e-commerce and digital marketing trends. Businesses need to keep up with the
latest e-commerce and digital marketing trends to stay relevant to consumers.
Invest in security and privacy. Security and privacy are key to building consumer trust
3. 2 SUGGESTIONS
Here are some suggestions for businesses in implementing marketing strategy
transformation in the digital era:
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Start by understanding consumer behavior. Businesses need to understand how consumers use
the internet and mobile devices to search for information, shop, and interact with brands. By
understanding consumer behavior, businesses can develop more effective marketing
strategies.
Invest in technology. Technology is the key to marketing strategy transformation. Businesses
need to invest in technology that can help them integrate data, perform data analysis, and
provide consistent customer experiences.
Build an experienced marketing team. Marketing strategy transformation requires an
experienced and dedicated marketing team. Businesses need to invest in the training and
development of their marketing teams so they can understand and implement the latest trends
in e-commerce and digital marketing.
Here are some specific steps businesses can take to implement marketing strategy
transformation in the digital era:
Create a digital marketing plan. A digital marketing plan should include goals, targets,
and marketing strategies. Businesses need to set clear goals for their digital marketing
and develop appropriate strategies to achieve those goals.
Track and analyze digital marketing results. Businesses need to track and analyze their
digital marketing results to measure the effectiveness of their strategies. By tracking
results, a business can make adjustments to its strategy to increase its effectiveness.
Collaborate with other parties. Businesses can collaborate with other parties, such as
digital marketing agencies or technology companies, to get help in implementing
marketing strategy transformation.
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