The Influence of Digital Marketing on Business Performance: A Case Study of Selected Moroccan Companies

The Influence of Digital Marketing on Business Performance: A Case Study of Selected Moroccan Companies

Ali Tazi Cherti
Copyright: © 2024 |Pages: 25
DOI: 10.4018/979-8-3693-3172-9.ch012
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Abstract

This research examines the impact of digital marketing (DM), through the integration of artificial intelligence (AI), on business performance (BP) in the Moroccan context. Utilizing a structured questionnaire and the advanced PLS-SEM method for analysis, it uncovers a strong positive correlation between the use of AI in DM and improved BP. This relationship signifies a paradigm shift towards more personalized marketing strategies, data-driven decision-making, and dynamic adaptation to market trends. The research highlights how AI not only enhances operational efficiency but also fosters innovation and value creation, urging Moroccan companies to rethink their digital strategies. It emphasizes AI's pivotal role in transforming the digital marketing landscape, suggesting that its strategic integration is essential for companies aiming to thrive in the digital era. The study's uniqueness stems from its focus on Morocco, offering insights into the adaptation of AI in DM within an African context, thereby contributing to the understanding of digitalization in emerging economies.
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1. Introduction

Digital marketing can be seen as a process that involves interacting with customers who are frequently online, using a variety of tools and platforms such as websites, online brand resources, online advertising, and email marketing (Ravi & Rajasekaran, 2023). Digital transformation has become imperative across all business activities today. Digital marketing emerges as a key element for anticipating risks and seizing emerging opportunities, thus enhancing companies' strategic decision-making. This digital transition alters how businesses interact with products and brands through online services such as cloud storage, web browsing, streaming platforms, emails, and the use of social networks like Facebook, redefining traditional modes of interaction (Kiili et al., 2018). The effectiveness of traditional marketing strategies is questioned in a demanding competitive context; they are no longer sufficient to generate a sustainable competitive advantage or stimulate growth (Kaur, 2017). Today, businesses operate in a competitive and turbulent environment, requiring the use of effective tools to achieve their goals. Among these tools, digital marketing stands out (Chaikovska et al., 2022). Consequently, digital marketing presents itself as an opportunity lever for companies across all sectors eager to confront competition. It stands out as a dynamic and evolving tool, offering solutions tailored to the renewed demands of consumers. The emergence of innovative digital technologies opens new avenues for advertisers aiming to achieve their commercial objectives through online advertising (Reza Kiani, 1998).

Companies are increasingly aware of the need to integrate cutting-edge technology applications to strengthen their operational processes and ensure access to updated information (Aggarwal, 2017). However, there is a shortage of empirical evidence evaluating the actual effect of digital marketing on business performance and a gap in the literature regarding the role of digital progress in business processes (Ahmad et al., 2018). Digital marketing enables companies to maximize their sales, expand their market reach, and cultivate customer relationships virtually. As a result, digital marketing techniques are increasingly favored for targeting and engaging markets.

The marketing field has been transformed by the integration of artificial intelligence (AI), altering the techniques and strategies within this sector (Van Esch et al., 2018). The adoption of AI-based tools for creating marketing content is increasingly favored by companies to enhance the efficiency and relevance of their digital marketing efforts. AI mimics human functions such as voice recognition, visual perception, and decision-making processes, thereby enriching marketing capabilities (Tao & Zhang, 2021). It also offers the advantage of producing highly personalized content, meeting the expectations of specific customer segments. However, it is crucial for companies to maintain a balance between AI and human ingenuity to ensure their content remains unique and engaging (Haleem et al., 2022). With growing competition and changing consumer demands, digital marketing is now a crucial component in promoting products and services. This sector has undergone significant evolution with the advancement of AI, moving from a data-centric approach to a more holistic approach that combines data and knowledge .

Current applications of AI include chatbots, digital assistants, and machine learning (Devang et al., 2019). Given the vast amount of data currently produced, surpassing human capacity for analysis and decision-making, AI presents itself as an indispensable solution (Hurwitz et al., 2015). It is particularly recommended for SMEs aiming to optimize their performance and decision-making processes (Enshassi et al., 2024). Used in conjunction with marketing, AI allows for increased precision in customer data segmentation, content enrichment, profiling, development of predictive models, targeting of a broader audience, and optimization of search engine ranking. Nonetheless, adopting digital marketing represents a significant investment, which should not be directly compared to traditional marketing methods, which have already demonstrated a return on investment trajectory (Teixeira et al., 2019).

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