Digital Marketing & Disruptive Business Theory
Clayton Christensen has defined Disruptive Business Theory as the principle that guides revolutionary product and business models that completely transform entire markets (The Innovator's Dilemma). The utility of Digital Marketing is a great example of the manner in which the advertising world has shifted from word-of-mouth, to print-based, and into digital media. Digital Marketing Agencies in Washington, DC can be very effective for enhancing your company's capacity to "Disrupt" a sector.
Disruption: Technology vs. Applications
Christensen's model described the manner in which the disk drive industry, the hydraulic actuation equipment industry, and others underwent rapid innovation and transformation in order to fundamentally alter the nature of information storage and excavation. If your company needs digital marketing to facilitate a similar disruption, social media marketing, email marketing, and conventional word-of-mouth strategies may be effective for bringing your products or service to market. Christensen emphasized that the technologies themselves, while disruptive, were not the subject of his theory. Rather, the business models that implemented the broad-market availability of these technologies were the innovations that transformed the industry. Here, technological innovation served as a function for product development, but the executive management's method for implementing and marketing the technologies were fundamental to transforming their respective industries through creating a disproportionately “unfair advantage”. Digital marketing agencies in Washington, DC may provide the expertise required to facilitate disruptive innovation.
Moreover, the technologies themselves may, in-fact, not offer what customers have demanded, which contradicts standard supply-and-demand models of consumer data research. Therefore, established firms that listen to their customer's feedback may be the most susceptible to becoming obsolete during market transformations. These well-established firms may form very tightly regulated systems in order to sustain their profit margins, which places their focus upon research and development that is designed to maximize margins within their sector and relies upon consumer feedback. However, their research and development may be focused upon maximizing opportunities within existing markets rather than emerging markets, because emerging markets are typically smaller. Digital marketing analytics may be more effective at monitoring emerging market trends in Washington, DC and around the world. These emerging markets become excellent opportunities for small-cap companies with new and innovative strategies to address a very small sub-market, but which may rapidly integrate into the larger markets. Digital marketing has become one of the new mediums used by companies throughout Washington, DC and the world in order to promote these new small-cap companies.
Digital Marketing & "Low End Disruption" vs. "New Market Disruption"
The spectrum of disruption may range from “low-end disruption” to “new market disruption”, where the former focuses upon customers who demand only basic performance from a product, and the latter focuses upon consumers whose needs are now only met through the new product. Low end disruption products may improve more rapidly than customers can adapt to the new feature sets, so the technology's potential utility actually exceeds it's functional utility. Digital marketing analytics may assist with monitoring customer needs through monitoring social media analytics, which reveals important information about consumer behavior.
Therefore, low-end disruptors may be focused upon a very small segment of the market in order to focus upon smaller margin sales. For example, an automotive maker may produce luxury high speed cars with 200mph top speeds, but only a small number of people are interested in these vehicles. New market disruption describes the manner in which a new product may suit new and emerging markets that earlier technologies could not satisfy (i.e. affordable electric vehicles, which cut fuel costs by 90%).
Digital Marketing and Developing New Market Infrastructure
Milan Zeleny has suggested that disruptive technologies and manufacturing models may be delayed to market due to market support networks. For example, fossil-fuel automotives are supported by a network of business interests, which derive their margins from global energy supply goods (oil) and services (fuel stations). Therefore, the introduction of an electric vehicle would require innovations in both the core product (development of a new vehicle) and a new support network (electric fuel stations). Digital marketing in Washington, DC has been very effective for companies looking to move into emerging markets, and a digital marketing agency may offer the expertise needed, which is otherwise not already present within the company's group of founders.