Business Strategy

Blockchain Deployment in Marketing: Developing Conceptual Frameworks and Research Propositions

Article Details

Pub. Date	: Sep' 2022
Product Name	: The IUP Journal of Business Strategy
Product Type	: Article
Product Code	: IJBS010922
Author Name	: Pankaj M Madhani
Availability	: YES
Subject/Domain	: Strategic Journals
Download Format	: PDF Format
No. of Pages	: 26

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Abstract

Blockchain deployment in marketing provides various benefits in diverse areas: enhancing trust between firms and consumers, increased transparency, disintermediation, privacy and data ownership, digital identity, customer relationship management, loyalty programs, advertising, fighting click fraud, and supply chain management. It can lead to substantial functional changes by reshaping existing marketing practices and improving established business processes. This study identifies various challenges to digital marketing and explores blockchain deployment for resolving those issues. The study develops various propositions for blockchain deployment in marketing and advances a digital transformation and customer-centric framework. The study concludes that blockchain deployment in various marketing processes provides various benefits which can enhance business competitiveness due to higher efficiency and effectiveness. It will help marketers in strategic decision-making as it significantly reduces administrative work and increases performance.

Introduction

Marketers often overwhelm their customers with too many ads, emails, coupons, and messages. Blockchain deployment in marketing will bring more trust, transparency, and disintermediation and thus benefit both marketers and consumers alike. It allows marketers to expand their advertising campaigns, improve customer targeting capabilities, and enhance service responsiveness. It also prevents the same display ad from being over-served to anyone, by designing the optimal frequency of ad serving for each consumer. Unsuccessful advertising campaigns are caused by the reliance on unreliable, inadequate, and untrusted analytical data. Blockchain deployment in marketing controls bots and hence ensures that real people are engaged with their ads, thus protecting the integrity of its ad campaign data and preventing wasted money in the long run.

Today, financial transactions have considerable costs as retailers routinely pay credit card companies +3% payment processing fees. Many online platforms charge listing fees or sales commissions. Vendors using eBay and Shopify pay listing and sales fees, and consumers pay transaction fees on payment portals like PayPal. All of these fees increase the cost of goods