WebDigital: A Web-based hybrid intelligent knowledge automation system for developing digital marketing strategies

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Abstract

This paper presents a Web-based hybrid knowledge automation system, called WebDigital (created by the first and second named authors), for formulating digital marketing strategies. Within this system, various digital marketing strategy models are computerised, adapted and extended. On-line Monte Carlo simulation is employed to capture the stochastic behaviour of relevant factors or variables influencing digital marketing decision making. Web-based fuzzy logic is applied to model the uncertainty surrounding the input and strategic options. On-line “IF–THEN” rules are created to represent and automate associated planning knowledge and guidelines. Web databases are used to pass data amongst different functional components, and store and retrieve simulation results and user entries. The system has been tested using digital marketing cases with involved managers. Evaluation findings indicate that the Web-enabled knowledge automation system is efficient and effective in improving the digital marketing strategy formulation process and its output.

Research highlights

► The first and second-named authors designed and developed the Web-enabled hybrid knowledge automation system in support of digital marketing planning, and tested and explored its value with evaluation data collection and analysis. ► The hybrid approach utilises and combines the joint advantages of Web-based Monte Carlo simulation, Web-based databases, knowledge automation, on-line fuzzy logic and approximate reasoning. ► The hybrid system can be used to improve the process and output of digital marketing strategy formulation.

Introduction

“Digital marketing leverages the unique and powerful characteristics of interactive media: it is addressable, meaning that each user can be identified and targeted separately; it allows for two-way interaction; services can be tailored for each individual customer; and purchases can be made and influenced on line” (Kierzkowski, Mcquade, Waitman, & Zeisser, 1996, p. 180). Kierzkowski et al. (1996) also advise that companies must combine interactive media with their existing businesses and marketing programmes in order to gain the benefits of digital marketing. In addition to the use of the Internet or Web, digital marketing can also employ a wide range of other digital channels such as mobile phones, wireless communications and digital TV. Given this increased number of digital media and the changes they bring in reaching customers, marketers need to ensure that they plan effectively to exploit their potential. Digital marketing strategy formulation can be defined as the process of devising the methods or means for attaining the digital marketing objectives.

Formulating a sound and viable digital marketing strategy can be challenging because of internal and external uncertainty, complexity and the interaction of many different variables. To tackle this problem effectively, a hybrid or integrated approach that integrates the strengths or powers of various decision-support techniques and artificial intelligence technologies may have a role to play. This may then improve the process and outcomes of digital marketing planning.

Over the past two decades, a small number of researchers have pioneered the development and use of hybrid intelligent systems for strategic marketing planning. Representative work in this field is summarised below. Duan and Burrell (1995) designed a hybrid system linking the analytic hierarchy process (AHP) and an expert system for setting marketing strategies using a four-cell portfolio matrix. Li (2000) developed a hybrid intelligent system that combines artificial neural networks, fuzzy logic and an expert system for formulating marketing strategies, based upon various analytical models. Li (2005) tentatively put forward and evaluated a hybrid approach, integrating group Delphi with a Web-based expert system for strategic marketing planning. Li and Li (2009a) proposed and tested an integrated approach for marketing strategy formulation under uncertainty. This system hybridised human judgement, AHP, simulation, and a fuzzy expert system. Li and Li (2010a) then created and validated a hybrid system for international marketing planning that unites the powers of multiple intelligent agents, Monte Carlo simulation, fuzzy logic and knowledge bases. Li and Li (2010b) went on to construct a Web-based hybrid system for international marketing decision-making that joins Web knowledge automation, fuzzy logic and on-line databases.

The systems mentioned above were developed to deal with conventional marketing strategy development, or support general international marketing planning. However, extensive literature search suggests that no previous research on the construction and implementation of hybrid intelligent systems for digital marketing planning exists. This study is therefore particularly concerned with building and evaluating a Web-based hybrid intelligent system for digital marketing strategy formulation.

Section snippets

The rationale and architecture for WebDigital: a Web-based hybrid knowledge automation system for digital marketing planning

Before examining the specific rationale for the development of a Web-based system in this context, recognising the development of such systems and their increasing sophistication is necessary. “An expert system is a computer programme that represents and reasons with knowledge of some specialist subject with a view to solving problems or giving advice” (Jackson, 1999, p. 2). Li and Li (2010b) define “a Web-enabled knowledge automation expert system as an interactive Web-based intelligent system

Empirical evaluation of the efficiency and effectiveness of the WebDigital system

The evaluation of WebDigital was conducted in November and December of 2009. Respondents were selected on the basis of their experience with on-line systems or familiarity with making Web-based marketing decisions. Respondents included a company managing director, a marketing director, a company systems manager and three university course leaders. The participants used WebDigital to develop and formulate digital marketing strategies for their own cases within global markets through digital

Conclusion

The aim of this project has been to investigate the use of a Web-based hybrid knowledge automation system in supporting digital marketing strategy formulation. This has included pioneering work in integrating a wide range of techniques and approaches. This has included the use of the powers of on-line Monte Carlo simulation, on-line fuzzy rules, Web-enabled knowledge automation and Web-based databases. These have been combined with digital marketing expertise and associated analytical models to

Acknowledgements

This paper gives an account of the research and software development work undertaken by Shuliang Li and Jim Zheng Li in 2009 with financial support from the University of Westminster, Westminster Business School staff research allowances.

Jim Zheng Li and Shuliang Li, UK, designed and created WebDigital, a Web-based hybrid knowledge automation system for digital/e-marketing planning in 2009, and therefore, they own the copyright for this software product.

Shuliang Li and Jim Zheng Li have made

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  • Cited by (0)

    This paper reports Shuliang Li and Jim Zheng Li’s software development and research work which was financially supported by the staff research allowances of Westminster Business School, the University of Westminster.

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