Digitalization Strategies for Marketing Communications to Build
Relationship Marketing: Modern Solutions in Brand Management
VALENTYNA MOROKHOVA1, ZHYLDYZ BATYRBEKOVA2*, OLENA BONDARENKO3,
TETIANA USTIK4, MARIIA SAIENSUS5, VITALII TRAVIN6
1Department of Marketing,
Lutsk National Technical University, Lutsk,
UKRAINE
2Adam University,
Bishkek,
KYRGYZSTAN
3Department of Marketing,
Kyiv National University of Trade and Economics, Kyiv,
UKRAINE
4Department of Marketing and Logistics,
Sumy National Agrarian University, Sumy,
UKRAINE
5Department of Tourism and Hotel and Restaurant Business,
Odessa National Economics University, Odesa,
UKRAINE
6Department of Finance and Digital Economy,
Zhytomyr Polytechnic State University, Zhytomyr,
UKRAINE
*Corresponding Author
Abstract: - The content presented in this article explores the emergence and progression of digital marketing on
a global scale. This article aims to elucidate the primary drivers behind the evolution of digital marketing,
tracing its origins from the inception of early information transmission technologies to the establishment of
high-speed Internet platforms operated by prominent companies and the proliferation of online resources
offering diverse products and services. Furthermore, this work encompasses a comprehensive chronicle of the
evolutionary trajectory of marketing strategies employed by enterprises for engaging with their consumers and
prospective buyers. Within the scope of this article, an overview is provided on the contemporary landscape of
digital marketing, highlighting its various forms and their utilization within the scientific and theoretical
domain as well as practical applications within a diverse spectrum of companies. Additionally, the article
presents empirical research findings on the multifaceted interactions between marketing initiatives and their
target audience, employing diverse communication channels and methodologies. Statistical metrics and
graphical representations are employed to elucidate the growth and maturation of the digital marketing field,
offering insights into industry-specific trends, geographical variations, and the financial investments committed
to this evolving domain. This article also delves into various Internet platforms that have significantly
influenced the evolution of digital communications within the realm of commerce. The author systematically
elucidates the distinctive approaches adopted by these platforms in advancing digital marketing strategies.
Moreover, the article underscores the manifold advantages of digital marketing, with particular emphasis on the
substantial reduction in transaction costs and the mitigation of governmental regulatory interference in
economic activities. This reduction in regulatory influence is attributed to the emergence and consolidation of
novel formal and informal protocols governing both domestic and international online transactions.
Furthermore, it is observed that the digitalization of trade has hastened the globalization of economic relations,
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2023.19.112
Valentyna Morokhova, Zhyldyz Batyrbekova,
Olena Bondarenko, Tetiana Ustik,
Mariia Saiensus, Vitalii Travin
E-ISSN: 2224-3496
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simplifying trade interactions and eradicating geographical boundaries between nations, particularly in the
context of promoting branded products. In addition, the author underscores the critical importance of adhering
to specific guidelines to gain a competitive edge through the utilization of digital communication technologies
and tools. These guidelines encompass comprehensive knowledge about consumer and buyer behavior,
analytical processing of sales data, rigorous assessment of key performance indicators against financial
expenditures, optimization of return on invested capital and intellectual resources, and the development of a
crisis model that encompasses challenges related to the synergy between financial operations, resource
allocation, and marketing activities. Methodologically, this study employs a range of research methodologies
including historiographic description, comparative analysis, synthesis of information and opinions, forecasting,
tabular and graphical data representation, as well as modeling to elucidate strategic objectives and development
trajectories.
Key-Words: - Online marketing, Marketing communications, Digital marketing, Internet marketing, Brands, E-
commerce.
Received: April 17, 2023. Revised: September 21, 2023. Accepted: November 14, 2023. Published: December 22, 2023.
1 Introduction
In the second decade of the twenty-first century,
digitalization has emerged as the predominant
vector of transformation, heralding what is often
characterized as the next phase of the industrial
revolution, referred to as the digital revolution. This
evolution supersedes the earlier computer
revolution, which had its roots in the late twentieth
and early twenty-first centuries. Alignment with the
viewpoints of researchers such as by, [1],
underscores the significance of digital
transformation across various facets of socio-
economic life. It is instrumental in setting novel
trends and establishing fundamental principles
governing interactions between business entities and
consumers. The ongoing processes of digitalization,
coupled with the advent of new business paradigms
within the context of the fourth industrial revolution,
necessitate the formulation of new paradigms and
strategies within the economic sphere. Remarkably,
marketing stands out as one of the domains
experiencing profound changes under the influence
of these transformative processes. Traditional or
classical marketing tools and technologies are
progressively giving way to digital counterparts, [1].
In practical terms, this necessitates a pragmatic shift
towards adapting marketing communications to
conform with contemporary realities and
imperatives, [2].
2 Literature Review
Thus, [3], evaluates the prospects for the
development of work from remote locations using
the latest computer technologies. Research by the
team of authors, [4], defines the application of
computer technologies in the process of making
management decisions in the cluster. The authors in,
[5] and [6], draw parallels to the potential
development of digital communications and
business structures, business entities, indicating the
effectiveness of such application.
In, [7], it is studied the issue of expanding the
technical capabilities of electronic commerce as a
result of pandemic quarantines in the world. In, [8],
it is revealed the potentials of China as a leader in e-
commerce in the world. The work of the team of
authors in, [9], determines the possibilities of work
using digital technologies at enterprises and the,
[10], defines the advantages of electronic commerce
in the modern world. Authors, [11], in their work
immerses us in the details of software management
of electronic commercial flows. The, [12], evaluates
the prospects of e-commerce in the future based on
the indicators of 2021.
The study, [13], is aiming to outline the main
directions of digital marketing development in the
era of scientific and technological progress and the
formation of new services in trade. Authors, [14],
highlight the advantages of digitalization of the
professional environment in conditions of remote
employment and in, [15], the authors solve
problematic issues of information asymmetry in the
decision-making process. Nevertheless, in, [2], new
possibilities of digital marketing in the theoretical
plane are evaluated and in, [16], the collective work
forms elements of both theoretical and practical
answers to questions of ESG work.
Given the nascent nature of this emerging
domain, the objective of our study is to contribute to
and deepen the ongoing scholarly discourse initiated
by the aforementioned authors.
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DOI: 10.37394/232015.2023.19.112
Valentyna Morokhova, Zhyldyz Batyrbekova,
Olena Bondarenko, Tetiana Ustik,
Mariia Saiensus, Vitalii Travin
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3 Research Aims
The study's primary objectives encompass the
identification of digital marketing strategies that are
both effective and efficient in facilitating brand-
consumer communication.
4 Methods
The research methods are divided into general ones,
among which the synthesis of opinions and
definitions, the description of features when
describing the concepts of digital marketing are
actively applied; a method of comparison when
determining the effectiveness of classical and digital
methods of product promotion, a method of
grouping information when forming analytical data
of leadership in the promotion of digital marketing,
a method of historiographical description and
selection of primary and secondary when studying
the stages of e-commerce implementation. The
chronological method of presenting information and
its analytical processing is also used.
Among the special methods of research, the
range of analytical methods should be emphasized,
namely: tabular and graphic grouping of information
on indicators of the development of electronic trade
and turnover by countries and continents; analysis
of statistical data, analysis of survey data and their
comparison with other data and own observations
when studying the problems of the spread of
electronic commerce in Ukraine and foreign
countries; forecasting communication links and their
application in e-commerce through various social
communication channels.
5 Results
Traditionally, digital marketing is presently
construed as the utilization of the Internet, mobile
devices, engagement on social media platforms,
utilization of search engines, and various other
communication channels, primarily to engage with
consumers, particularly within the realm of
commerce and profit generation. Also referred to as
"internet marketing," it entails the strategic
promotion of goods or services through digital
conduits to achieve outreach to a broader and more
diverse audience. The term "digital marketing"
encompasses a comprehensive spectrum of methods,
which extend beyond email, social media, and
online advertising, to also encompass the
transmission of text and multimedia messages.
The historical origins of digital marketing have
been a subject of debate. Some contend that its
inception can be traced back to as early as 1897
when Guglielmo Marconi invented the radio.
Alternatively, certain researchers posit that the era
of digital marketing commenced in 1971 when Ray
Tomlinson transmitted the inaugural email via
electronic mail. However, it is our viewpoint that
the definitive evolution of digital marketing
commenced at a juncture when technology had
advanced to a level enabling the storage of
substantial volumes of information, specifically
within databases. A pivotal milestone in this
trajectory occurred in 1981 when IBM introduced
the first personal computer. Concurrently, during the
1980s, Robert Kestenbaum and Robert Shaw
initiated the process of marketing automation,
ushering in an era of database-centric marketing
practices. This shift marked a significant
transformation in the landscape of digital marketing,
as it hinged on the strategic utilization of databases
and automation processes. This development
enabled companies to begin monitoring consumer
behavior, albeit through manual processes. The term
"digital marketing" made its debut in 1990,
coinciding with the launch of Archie, recognized as
the world's inaugural search engine equipped with
search engine optimization capabilities, which
involved enhancing a website's visibility for specific
queries. The onset of the digital era within society is
inextricably tied to the advent of the Internet and the
establishment and evolution of the Web 1.0
platform. Web 1.0 provided users with the
capability to access the information they sought;
however, it did not facilitate online information
sharing and discussion. During the 1990s, the
prominence of CRM (Customer Relationship
Management System) software surged, and after the
Internet's emergence, this evolved into e-CRM. In
1993, the Internet witnessed the introduction of its
inaugural clickable banner. Subsequently, AT&T
conducted the very first digital advertising
campaign, wherein a notable 44% of consumers
who were exposed to the banner advertisement
interacted with it, [17].
Businesses initiated the development of their
websites during this period. In 1994, the launch of
Yahoo marked a significant milestone, as it rapidly
amassed one million views within a year. This surge
in viewership prompted businesses to strategically
optimize their websites to secure prominent
placements on Yahoo's platform. Concurrently, the
widespread adoption of cookies facilitated
companies in distinguishing between individual
users, tracking their online activities, and compiling
statistical data based on user behaviors. In the year
2000, the dot-com bubble burst, resulting in a
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DOI: 10.37394/232015.2023.19.112
Valentyna Morokhova, Zhyldyz Batyrbekova,
Olena Bondarenko, Tetiana Ustik,
Mariia Saiensus, Vitalii Travin
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substantial depreciation of shares in Internet-based
companies. Consequently, only industry giants with
revised business models survived this tumultuous
period. Google played a pivotal role in this evolving
landscape by introducing products such as AdWords
(three-line advertisements prominently displayed at
the top or right of search results) and AdSense (a
revenue-generation tool based on displaying ads on
websites). Furthermore, Google pioneered targeted
advertising based on user interests, thereby
positioning itself as a major market player. This
period also witnessed the advent of Web 2.0,
transforming content consumers from passive users
into active participants. Web 2.0 fostered user
interactions, not only among themselves but also
with businesses. Social networks emerged as a
hallmark of Web 2.0, with the establishment of
platforms such as LinkedIn (2002), Facebook
(2004), Gmail (2004), YouTube (2005), and Twitter
(2006). These developments heralded the inception
of social media marketing. In August 2006,
Facebook commenced the sale of advertising space
on its social network pages. Within a year,
Facebook afforded advertisers the capacity to target
users based on demographic data. Consequently,
advertisements began appearing in the news feeds of
numerous social networks. Furthermore, social
media platforms facilitated consumers in forging
closer relationships with brands. They could now
voice complaints online, engage in online purchases,
and wield influence over other users through
reviews of products and services, both positive and
negative.
Consequently, the term "digital marketing"
encompasses all advertising endeavors conducted
through electronic means of communication. Some
marketing professionals perceive digital marketing
as an entirely novel domain necessitating fresh
approaches to information consumers and a
simultaneous reevaluation of consumer behavior in
conjunction with conventional marketing practices.
Digital transformation has already started to play a
significant role in helping EU countries achieve
sustainable values by promoting environmental,
social, and governance (ESG) performance, [16].
The prominence of digital marketing has surged in
concert with the heightened accessibility of digital
platforms. A multitude of digital marketing
modalities, spanning from social media to text
messaging, facilitate direct engagement with the
target audience. Additionally, digital marketing is
characterized by comparatively low overhead costs,
rendering it an appealing option for nascent and
smaller enterprises. Subsequently, we shall explore
the various types of digital marketing along with
their associated attributes.
1. Internet Marketing: The cornerstone of all
digital marketing endeavors, internet marketing
serves as a resilient channel and a prominent tool for
a diverse array of online marketing activities. A
fundamental aspect of Internet marketing is the
website, which assumes a pivotal role in
representing the brand, products, and services
lucidly and memorably. An effective website should
possess attributes such as speed, mobile-
friendliness, and user-friendliness.
2. Pay-Per-Click Advertising (PPC): Pay-per-
click advertising enables marketers to access
internet users across diverse digital platforms
through paid advertising campaigns. Digital
marketers can configure PPC campaigns on
platforms including Google, Bing, LinkedIn,
Twitter, Pinterest, and Facebook, leveraging these
platforms to display advertisements to content
consumers based on relevant keywords and tags
associated with the respective products or services.
PPC campaigns offer the capability to segment users
according to their demographics, encompassing
factors such as age, gender, profession, industry, and
even target audiences with specific local interests or
locations. The most widely utilized PPC platforms
include Google Ads and Facebook Ads.
3. Content Marketing: The primary objective of
content marketing is to engage with potential
customers through the dissemination of content.
Typically, this content is published on a website and
subsequently promoted through various means,
including social media, email marketing, search
engine optimization (SEO), and, in certain cases,
pay-per-click (PPC) campaigns. The arsenal of
content marketing tools encompasses a diverse
range of media, including but not limited to 1)
blogs, 2) e-books, 3) online courses, 4) infographics,
5) podcasts, and 6) webinars.
4. Advertising Newsletters: Within the realm of
digital marketing, email marketing remains one of
the most efficacious channels for online
engagement. It is worth noting that email marketing
should not be misconstrued as spam; rather, it serves
as a legitimate means to establish contact with
potential customers or individuals exhibiting an
interest in a particular brand or product. Many
digital marketers leverage an array of other digital
marketing channels to expand their prospect lists
through email marketing initiatives. Subsequently,
they employ email marketing as a mechanism to
establish new avenues for consumer engagement
and conversion, thereby transforming prospects into
leads.
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DOI: 10.37394/232015.2023.19.112
Valentyna Morokhova, Zhyldyz Batyrbekova,
Olena Bondarenko, Tetiana Ustik,
Mariia Saiensus, Vitalii Travin
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5. Media Marketing: The primary objectives of
social media marketing encompass the
establishment of brand awareness and the
cultivation of social trust. When executed with a
high degree of professionalism, this level of
marketing empowers brand proprietors to
confidently employ it as a robust tool for direct sales
and the acquisition of new customers in an assertive
manner.
6. Affiliate Marketing: Affiliate marketing
represents one of the oldest forms of marketing, and
it was the advent of the Internet that breathed new
life into this time-honored resource. In affiliate
marketing, well-recognized individuals undertake
the promotion of products and services, receiving a
commission for each successful sale of these
products or the acquisition of new customers.
Prominent retailers, such as Amazon, have instituted
affiliate programs that disburse substantial sums of
money each month to websites responsible for
facilitating the sale of their products.
7. Video Marketing: Currently, YouTube stands
as the second most widely utilized search engine
globally. A substantial user base routinely turns to
YouTube channels as a precursor to making
purchasing decisions, seeking information, perusing
product reviews, or simply engaging with content
for leisure. Various video marketing platforms,
including the notably popular Facebook, Instagram,
and TikTok, have been established and have
integrated video marketing into their campaigns.
Retailers have achieved considerable success with
video marketing by incorporating it into their
strategies for search engine optimization, content
marketing, and broader social media marketing
initiatives.
8. SMS Marketing: Both for-profit enterprises
and nonprofit organizations have harnessed text
messaging as a means of disseminating pertinent
information regarding their latest promotions and
opportunities to interested customers. Moreover,
political candidates vying for public office have
leveraged text messaging campaigns to propagate
affirmative messages through their dedicated
platforms. In tandem with technological
advancements, many SMS campaigns have evolved
to enable direct payments and facilitate the
transmission of concise text-based messages.
A diverse array of digital marketing resources
exists, encompassing any Internet-based marketing
tool. However, it is often the case that individuals
are unaware of the full spectrum of digital
marketing resources at their disposal. Here are some
illustrative examples:
1. Video Content: This category includes video
advertisements and product demonstrations.
Notably, research conducted by S. Brooke
underscores the significance of email, with "nearly
60% of consumers indicating that email plays a
pivotal role in influencing their purchasing
decisions", [13].
2. Website: A fundamental digital marketing
resource.
3. Brand Assets: This incorporates elements
such as logos, icons, and abbreviations.
4. Images: This encompasses diverse visual
content, including infographics, product
photographs, and corporate images. To illustrate,
consider a scenario where a consumer is interested
in purchasing athletic footwear. If the company
integrates a pay-per-click (PPC) campaign into its
digital marketing strategy, potential customers can
readily click on the ad displayed on the first page of
Google without having to navigate through
competitive websites, [13].
5. Written Content: This category comprises
diverse written materials, such as blog posts, e-
books, product descriptions, and reviews.
6. Online Products or Tools: This classification
includes Software as a Service (SaaS) offerings,
calculators, interactive content, and similar digital
tools.
7. Customer Reviews, Opinions, and
Experiences: Valuable sources of user-generated
content that can significantly influence consumer
perceptions and decisions.
8. Social Media Pages: Notably, research by S.
Brooke highlights the prevalence of social media
usage, with consumers maintaining an average of
approximately eight social media accounts.
Furthermore, the average adult dedicates roughly 2
hours and 22 minutes daily to social media
engagement. This extensive engagement window
offers companies an opportunity to effectively
communicate with their target audience and attract
new consumers, [13].
Digital marketing presents distinctive challenges
to those engaged in this field. Digital channels are in
a state of rapid evolution, necessitating that digital
marketers possess a profound understanding of their
mechanisms, consumer utilization patterns, and
effective strategies for promoting products, services,
and brands. Furthermore, it is imperative to
acknowledge that the target audience is inundated
with an increasing volume of promotional content
from various companies, rendering it arduous to
capture their undivided attention. In this context,
digital marketers confront the formidable task of
distilling meaningful insights from the vast
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Valentyna Morokhova, Zhyldyz Batyrbekova,
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Mariia Saiensus, Vitalii Travin
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reservoirs of data they collect, subsequently
employing this data in the development of novel
marketing campaigns. The intricacies associated
with data collection and utilization underscore the
imperative for digital marketing strategies founded
upon a comprehensive comprehension of human
behavior. For instance, a company may find it
essential to conduct an in-depth analysis of the
behavior patterns exhibited by new customers,
thereby facilitating a more nuanced approach to
engagement and marketing strategies.
A digital communication marketing strategy
designed for brand promotion delineates a suite of
activities harnessed by online marketing channels to
attain diverse objectives. These channels encompass
those classified as owned, paid, and earned media.
With a digital marketing action plan, a customer can
successfully create and implement an online
marketing strategy with strategies that are constantly
expanding. Some digital strategies that most
businesses use are pay-per-click advertising; paid
search advertising; SEO search engine optimization;
paid advertising in mass media; traditional
marketing using mass media; conversion rate
optimization; content marketing; native advertising;
advertising mailing on communication networks;
partner marketing planning (Figure 1). Hence, it is
discernible that the development of a comprehensive
digital marketing framework within a corporate
entity necessitates adherence to a specific sequence
of actions, the cultivation of a customer-centric and
competitive behavior strategy, and the recognition
that the competence of digital marketers is
continually advancing.
Presently, a discernible trend in the domain of
marketing is the burgeoning prominence of Internet
marketing. Nonetheless, it is noteworthy that even
within Western literature, descriptions of Internet
marketing remain fragmented, and the majority of
domestic authors do not delineate Internet marketing
as a distinct field of study. Remarkably, online
channels now account for approximately 10% of
global trade, with certain countries, including China,
Japan, and the United Kingdom, witnessing the e-
commerce sector's contribution to GDP surpassing
the 20% mark. Equally noteworthy is the
remarkable growth dynamics exhibited by the e-
commerce segment, with annual increments of up to
30% (Figure 2), [19].
Internet marketing assumes a pivotal role within
the framework of the contemporary economy,
serving as the principal conduit for all virtual
interactions between a company and prospective
customers. Nevertheless, it is noteworthy that a
comprehensive theoretical framework for Internet
marketing remains conspicuously absent. Notably,
in his seminal work "Marketing Management,"
revered American marketing scholar and classic
figure in the field, F. Kotler, devotes merely a single
paragraph to Internet marketing. Within this limited
scope, the author offers a cursory overview of the
phenomenon and underscores the transformative
impact of e-commerce on the discipline of
marketing, [20].
Fig. 1: Digital marketing strategies for a business company.
Source: сompiled by the author based on, [18].
Digital
marketing
strategies
Paid advertising
Search engine
optimization (SEO)
Advertising mailing
list Marketing in the field
of mass media
Content marketing
Paid search
advertising
Pay-per-click
advertising
Affiliate marketing
Native advertising Conversion rate
optimization (CRO)
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DOI: 10.37394/232015.2023.19.112
Valentyna Morokhova, Zhyldyz Batyrbekova,
Olena Bondarenko, Tetiana Ustik,
Mariia Saiensus, Vitalii Travin
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Fig. 2: E-commerce turnover in the world from 2010 to 2020, was $ billion.
Source: сompiled by the author based on, [19].
Within his work titled "Value-Based Marketing,"
the American scholar, [21], presents his unique
taxonomy of the evolutionary stages in the field of
marketing. Doyle differentiates Internet marketing
as an autonomous scientific domain, situating it as
the fourth phase in the progression of marketing
evolution termed "individual customer
relationship management." This is juxtaposed
against the preceding phase, "marketing as brand
management," which primarily emphasizes the
product rather than the consumer. Notably,
customer-centric Internet marketing facilitated by e-
commerce technologies enables a personalized
approach to engage with each specific customer or
target demographic, [21]. Consequently,
personalization stands out as a salient hallmark of
contemporary Internet marketing. Moreover, as A.
Kwilinski, O. Lyulyov, and T. Pimonenko cogently
underscore, "digital inclusion pertains to equitable
access and active participation in digital
technologies and services", [16].
The inception of digital marketing finds its
historical roots intertwined with the ascendance of
the Chinese economy. Approximately two to two-
and-a-half decades ago, brand proprietors exerted
control over the distribution channels for their
products, while relocating production to nations
where labor and resources were more cost-effective.
Nevertheless, these strategic decisions did not afford
them access to foreign markets, which primarily
pertained to countries within the Asia-Pacific
region, [22]. The advent of e-commerce initiated a
transformative shift, affording Asian manufacturers
unrestricted entry into global markets. E-commerce
and Internet marketing technologies revolutionized
the logistics of product delivery to end consumers,
thereby engendering the emergence of a novel
"Asian approach" to marketing organizations.
However, as articulated by, [15], "the objectives of
distinct participant groups within this dynamic are
variegated and seldom align harmoniously. These
divergent interests among market participants
engender information distortion or its uneven
dissemination concerning the same subject matter",
[15].
A distinctive attribute of this approach lies in its
capacity to curtail transaction costs significantly.
Goods no longer traverse a traditional intermediary
chain; instead, they are directly conveyed to the end
consumer through Internet-based channels. This
phenomenon, in part, underpins the remarkable
resurgence of the Chinese economy. In the 1980s,
Deng Xiaoping initiated sweeping economic
reforms in China, resulting in substantial
improvements in the nation's economic landscape.
To illustrate, China's GDP per capita stood at 195
yuan in 1980, escalated to 318 yuan in 1990, and
reached 960 yuan by the year 2000. However, the
ascent of China's economy often hailed as the
"Chinese economic miracle," materialized
predominantly after the turn of the millennium.
Notably, the growth trajectory of e-commerce in
China is nothing short of impressive. Commencing
in the latter half of the 2000s, the e-commerce
market in China has experienced an average annual
growth rate of approximately 30%, [8]. As of
present, China boasts the highest e-commerce
growth rate globally.
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Olena Bondarenko, Tetiana Ustik,
Mariia Saiensus, Vitalii Travin
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Fig. 3: Growth rates of e-commerce markets in the world in 2017-2018.
Source: compiled by the author based on, [19].
However, the aforementioned dynamics are not
exclusive to China. Countries such as Japan and the
United States also exhibit e-commerce sectors that
surpass the 20% threshold. The top five nations, in
terms of the highest e-commerce turnovers,
comprise the United Kingdom, Germany, France,
South Korea, and Canada. E-commerce markets in
various countries display noteworthy growth rates,
such as up to 34% annually in China, 31%, 27%,
and 20% in India, Canada, and the United States,
respectively, when measured in terms of US dollars
(Figure 3).
In the year 2015, several trends gained traction in
the realm of digital marketing, including predictive
analytics, smart clothing, and content marketing.
Content marketing represents the strategic
dissemination of product-related information to
consumers, serving as a mechanism to enhance
brand recognition. With the advent of new content
formats and the burgeoning popularity of video
content, content marketing has transcended the
realm of textual blog posts and lists. The production
of unique and informative content has assumed
paramount importance within the spectrum of digital
marketing strategies. This approach bestows several
noteworthy advantages. The consistent publication
of high-quality content contributes to an augmented
level of brand visibility, thereby potentially
attracting new customers. It also facilitates the
attainment of elevated search engine rankings,
kindles user engagement with the brand, and imparts
intangible value to the company's product offerings.
It is judicious to assert that the evolution of e-
commerce technologies has significantly reshaped
the overarching trajectory of the global economy.
Foremost among contemporary trends are the
mitigation of transaction costs and the diminishing
influence of government regulatory measures on the
economy. This transformation has been catalyzed by
the emergence and consolidation of both formal and
informal regulations governing domestic and
international online transactions.
As articulated by the eminent American
economist, [3], a seminal figure in the field of new
institutionalism, "…in the absence of transaction
costs, regardless of the legal system: people can
always agree, acquire, divide, and combine rights
for free in a way that will increase the value of
production", [3]. This assertion holds particularly
true within the realm of e-commerce, where
geographical barriers are virtually non-existent, and
transaction costs remain low. The impact of e-
commerce technologies is precipitating significant
global institutional transformations within the
economic landscape. In, [23], underscored that
"traditional marketing strategies may no longer
suffice for ensuring the effective operations of
companies across diverse industries". Consequently,
with the burgeoning accessibility of sales
technologies, an increasing number of transactions
occur directly between consumers and producers,
thereby diminishing the necessity for intermediaries.
This transformation serves as a boon for both end
consumers and product manufacturers.
Statistics unequivocally underscore the
magnitude and transformative nature of these
developments. As reported in the Global Digital
2019 study, an analysis of the global digital market
conducted by the We Are analytical agency in
collaboration with the prominent SMM platform
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DOI: 10.37394/232015.2023.19.112
Valentyna Morokhova, Zhyldyz Batyrbekova,
Olena Bondarenko, Tetiana Ustik,
Mariia Saiensus, Vitalii Travin
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Hootsuite, "the year 2019 witnessed a surge in the
number of Internet users, culminating at 4.39 billion
individuals, constituting over 57% of the world's
population. Additionally, the tally of users engaging
with social media platforms soared to 3.48 billion,
representing 45% of the global populace", [24].
Considering that online commerce contributes to
10% of the total global trade, with developed
nations often exhibiting figures twice as substantial,
it is indisputable that virtual markets and e-
commerce technologies currently serve as catalysts
for economic advancement. The, [25], underscore
the notion that "...the realization of many synergies
necessitates time and due consideration of certain
effects, which may not be immediately apparent
during the phase of stable growth".
The worldwide proliferation of the COVID-19
pandemic has instigated noteworthy transformations
in the landscape of e-commerce. As observed in,
[11], "the imposition of restrictions on social
mobility and economic activities in response to the
rapid spread of COVID-19 has engendered a
multitude of economic and societal repercussions.
The economic ramifications, in particular, have been
adverse, characterized by diminished production
levels and logistical challenges in the distribution of
goods and services. Estimates of the economic
losses incurred at the national and global levels
exhibit disparities; however, these losses have been
disproportionately substantial when compared to
preceding economic crises", [11]. Concurrently, the
lockdown measures, which disrupted individuals'
customary routines, conferred significant
advantages and yielded remarkable profits for
proprietors of e-commerce networks. After all, they
offered consumers everything: from essential goods
to entertainment and educational programs right
from home.
Table 1. Forecast of e-commerce growth in the world, %.
Country
2018 / USD billion
2023 / USD billion
Five-year growth rate
China
636,1
1806,1
70,3 %
USA
504,6
735,4
45,7 %
France
49,4
71,9
45,6 %
Australia
18,6
26,9
44,6 %
Canada
39,9
55,4
38,8 %
Germany
70,3
95,3
35,6 %
UK
86,5
113,6
31,3 %
Japan
81,7
103,6
26,8 %
East Korea
63,7
80,2
25,9 %
Source: compiled by the author based on [12].
Fig. 4: E-retail sales, billion USD.
Source: compiled by the author based on, [12].
0
1000
2000
3000
4000
5000
6000
7000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023* 2024*
1336 1548 1845
2382
2982
3354
4280
4891 5242
5908
6388
billion $ USA
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DOI: 10.37394/232015.2023.19.112
Valentyna Morokhova, Zhyldyz Batyrbekova,
Olena Bondarenko, Tetiana Ustik,
Mariia Saiensus, Vitalii Travin
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In 2020, over two billion individuals engaged in
online purchases of goods or services, and during
the same year, global e-retail sales surpassed $4.28
trillion. By 2021, these metrics escalated to $4.89
trillion, with projections anticipating a figure of $6.3
trillion for the year 2024 (Figure 4).
As per the projections concerning the growth
dynamics of e-commerce in retail sales for the year
2023, the forefront is anticipated to be led by
countries including China, the United States,
France, and Australia (Table 1).
As we can see from Table 1, the forecast for the
growth of e-commerce is set for China at 70.3% by
the end of 2023, as it is recognized as the leader in
this direction of trade and marketing. China is
purposefully forming a new direction of marketing
promotion of goods - digital, which can be seen
from the growth indicators of its online sales.
Several countries with growth rates of 40-50%
from 2018 can be ranked second in the use of digital
marketing. These are the USA (+45.7%), France
(+45.6%), Australia (+44.6%). What these countries
have in common is the openness of oceanic ports
and airfields, which can receive goods from
customers and buyers.
In the third place in terms of the growth of
turnover from the use of electronic commerce
methods, we put those countries, which by the end
of 2023 are predicted to increase the indicators to
40%. These include Canada (+38.8%), Germany
(+35.6%), Great Britain (+31.3%), Japan (+26.8%),
East Korea (+25.9%).
The dominant entity in terms of web traffic, as
per the global ranking of retail websites, is the e-
commerce behemoth, Amazon. This platform is
headquartered in Seattle and offers an extensive
array of products and services encompassing e-
commerce, computer services, consumer
electronics, and highly sought-after digital content.
As of June 2020, the company had garnered a
staggering 5.2 billion unique visits, as measured by
gross merchandise value (GMV). Remarkably,
Amazon stands at the third position in this ranking,
trailing behind Chinese competitors Taobao and
Tmall. These platforms are under the aegis of the
mega-corporation Alibaba Group, a foundational
purveyor of e-commerce goods and services in the
Asian market. Figure 5 provides an illustrative
depiction of the ranking of the world's most
frequented retail websites in 2020, quantified by
average monthly traffic (in millions of visits).
The influence of COVID-19 pandemic has had a
discernible impact on consumer behavior regarding
the online procurement of goods and services.
Digital channels have witnessed a surge in
popularity compared to traditional brick-and-mortar
stores, owing to the inherent advantages of
convenience, independence, and security associated
with online shopping. In the year 2020, the global e-
commerce landscape witnessed an unprecedented
milestone, recording a staggering 22 billion monthly
visits. This surge in online activity was particularly
pronounced in the demand for essential
commodities such as food, apparel, and retail
technology products. The effects of the COVID-19
pandemic on online sales traffic are notably
reflected in an augmented preference for
supermarket, media, and television-related e-
commerce platforms. Furthermore, an examination
of the impact of the pandemic on trading volumes,
as reported by Сontentsquare. com, reveals a
substantial upswing within the retail, banking,
cosmetics, and health insurance sectors (Figure 6).
Fig. 5: Dynamics of visits to retail websites by average monthly traffic.
Source: compiled by the author based on, [12].
0 1000 2000 3000 4000
HomeDepot.com
Ikea.com
Etsy.com
Walmart.com
AliExpress.com
Samsung.com
Apple.com
Rakuten.co.jp
Ebay.com
Amazon.com
229
232
289
492
596
603
429
799
1021
3676
Number of visits
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DOI: 10.37394/232015.2023.19.112
Valentyna Morokhova, Zhyldyz Batyrbekova,
Olena Bondarenko, Tetiana Ustik,
Mariia Saiensus, Vitalii Travin
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Fig. 6: Impact of the COVID-19 pandemic on transactions in terms of sales volumes.
Source: compiled by the author based on, [26].
Throughout the COVID-19 pandemic, there was
a notable 60% increase in the average number of
items per order, [10]. Additionally, 44% of
consumers ventured into trying new brands during
this period (Arlington Research). The pandemic also
witnessed a significant shift in consumer behavior,
with 43% of shoppers expressing newfound
confidence in online shopping, while 40% of
consumers reported feeling more at ease with digital
technologies compared to the pre-quarantine period
(Wunderman Thompson Commerce). In the context
of Ukraine, data from the EVO group of companies
indicates that the total expenditure on physical
goods and services purchased online by consumers
in 2020 amounted to UAH 107 billion, marking a
substantial 41% increase compared to 2019, [27].
Online payments have experienced a notable
50% increase during this period. Nearly 9% of all
transactions are now conducted online,
encompassing marketplaces, online stores, and
social media platforms. In 2020, there was a
substantial 42% surge in orders placed on EVO's
platforms, including Prom.ua, Bigl.ua, Crafta.ua,
Shafa.ua, IZI.ua, and Prom.ua company websites.
Simultaneously, there was a discernible 10%
decrease in the average order value. Consumers
have significantly augmented their online purchases,
particularly in categories such as clothing,
household goods, food, pet supplies, and personal
protective equipment, including masks, [7]. The
Covid-19 pandemic has had a profound impact on
global trade, resulting in substantial disruptions.
However, it has also led to a diversification of e-
commerce activities worldwide, characterized by
varying growth patterns and expansion dynamics
across different countries.
In summary, contemporary e-commerce trends
underpinning digital marketing can be delineated as
follows:
1. Shifting Marketing Orientation from Products
to Customers: A distinguishing characteristic of
online marketing is its emphasis on personalization.
Traditional marketing primarily targets mass
consumers, whereas the internet, to some extent,
tailors its approach to the unique characteristics of
each customer.
2. Multichannel Approach: At this juncture,
traditional marketing and online marketing exhibit
more similarities than disparities. Traditional
marketing has long necessitated engagement with
customers through various communication channels
that are interconnected and mutually reinforcing.
3. Mobility: The widespread adoption of mobile
internet and smartphones has brought about novel
transformations in online marketing. Each year,
there is a growing number of transactions conducted
through mobile devices, prompting online marketers
to explore fresh strategies for effectively engaging
recipients through mobile communication channels.
4. Interactivity: Online marketing harnesses
interactivity, automating processes that once
required sociological surveys. Internet users
willingly engage in various business activities,
including surveys, reputation building, audience
creation, and customer acquisition through methods
like recommendations, word of mouth, and viral
marketing.
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DOI: 10.37394/232015.2023.19.112
Valentyna Morokhova, Zhyldyz Batyrbekova,
Olena Bondarenko, Tetiana Ustik,
Mariia Saiensus, Vitalii Travin
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5. Reach and Recipient Attitude: Internet
marketing provides round-the-clock access to a vast
recipient pool.
6. Opportunities for International Trade: The
advancement of e-commerce technologies has
removed international trade barriers, ushering in
fresh sales opportunities and horizons.
In the current landscape, it is imperative to
address issues about the new economy,
digitalization, e-commerce, and Internet marketing.
The ongoing societal transformations associated
with e-commerce development have become
permanent fixtures and warrant comprehensive
research. As pointed out by authors, [28] "E-
commerce in Ukraine, when compared to EU
countries, exhibits lower prevalence and contributes
a smaller percentage to GDP. According to their
assessment, the primary impediments to e-
commerce development in Ukraine include deficient
infrastructure and limited Internet access in certain
regions, consumer apprehension regarding online
purchases, a preference among buyers to physically
inspect goods before purchase, fraudulent activities
such as fictitious online stores, cybercrime,
insufficient state support for new enterprises, lack of
funding, and other factors", [28]. Authors in, [29],
have highlighted that "Ukrainian enterprises
currently face challenges in bridging the gap
between recommendations and the existing statistics
concerning the digitalization process". Nonetheless,
the researchers of this study underscore that the
potential for e-commerce development in Ukraine
remains substantial. This is attributed to the
presence of a skilled workforce and a sizable
population of young individuals with
entrepreneurial inclinations capable of readily
embracing and generating innovations and ongoing
research and technology advancements. Moreover,
Ukraine boasts the widespread availability of
innovative technologies such as blockchain, big
data, and cloud computing, among others, that can
be harnessed for the advancement of e-commerce,
[28].
Hence, it is evident that digitalization catalyzes
advancing marketing endeavors aimed at promoting
products, goods, and services offered by both
established and emerging companies. In this
context, the dynamics of digital communication
processes assume a central role, permeating every
phase of a company's brand execution, from
conception to the consumer's or buyer's acquisition
and utilization of a product or service.
Consequently, [5], assert that "Relationship
marketing serves as a practical mechanism for
implementing the concept of collaborative value
creation within modern institutional frameworks of
interaction within the innovation system (including
innovation networks, virtual networks, international
clusters, and alliances). Therefore, relationship
marketing holds a pivotal position within the
innovation system", [5].
In both theoretical and practical contexts, the
communication system is comprehensively regarded
as a unified and structured framework established to
facilitate regular information exchange within an
enterprise and between the enterprise and its
external entities. Communications represent a
fundamental structural framework that mirrors the
nature of interactions between the enterprise's
internal environment and its interactions with the
external environment. Consequently, the business
communication environment of an enterprise is
shaped, within which various communication facets
are dynamically structured and evolved. These
encompass internal and external organizational
communications characterized by upward,
downward, and horizontal communication channels,
information processes, and systems, as well as
interpersonal communications within the
organization, featuring established interaction
patterns. Management theory characterizes the
communication process as the exchange of
information, a dynamic process that subsequently
shapes the information flows within the enterprise
due to the communication-related business
processes within the organization. This insight has
been emphasized in, [6]. Furthermore, scholars like,
[4], assert that "the factors within the
microenvironment and the internal environment of
the enterprise wield the most significant influence
on the criteria for operational management within
the organization". Consequently, the primary
objectives of brand promotion via digital marketing
tools and strategies encompass attracting new
customers, optimizing cost and revenue ratios,
launching innovative products, fostering brand
reputation, and augmenting overall company
visibility, [13].
To effectively pursue the objectives of digital
marketing in the context of promoting a brand amid
competition and their respective strategic
approaches, the following guidelines and principles
should be adhered to:
1. Gain a comprehensive understanding of
customer behavior, encompassing their preferences
and inclinations.
2. Implement rigorous analytical monitoring of
the company's performance concerning its digital
strategies. In support of this, researchers such as,
[14], drawing from their research findings, assert
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DOI: 10.37394/232015.2023.19.112
Valentyna Morokhova, Zhyldyz Batyrbekova,
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Mariia Saiensus, Vitalii Travin
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that "financial resources play a pivotal role in
achieving a high level of remote work management,
influencing a company's capacity to organize remote
work effectively and enhance employee motivation
through increased compensation for overtime".
3. Leverage a holistic approach informed by the
research of digital content scholars, such as, [9],
who have devised a method that assesses crises
while incorporating the principles of the Balanced
Scorecard (BSC), encompassing financial,
operational, human resources, and marketing crises.
4. Proactively outpace competitors by adopting
the methodological framework put forth by authors,
[30], which entails several key stages of analysis: a)
determining the company and brand's level of
autonomy within the external environment; b)
identifying potential risks associated with brand
promotion and assessing their impact on the
achievement of objectives in terms of timeliness and
comprehensiveness; c) pinpointing sources and
strategies to enhance overall operational efficiency,
management, and the utilization of digital marketing
communications; d) scrutinizing the outcomes of the
organization's endeavors, [30]. For each stage and
the economic analysis results obtained, researchers
specify the areas of further investigation,
information sources, and data processing
methodologies.
6 Discussion
In summary, digital marketing holds the potential to
facilitate a company's expansion, diversify revenue
streams, identify prospective clientele, and enhance
online sales. However, it is essential to acknowledge
that there is no universal, one-size-fits-all strategy
applicable to all brands. The realms of e-commerce
and the promotion of a competitive, desirable
website demand distinct approaches, a willingness
to experiment, and a vigilant focus on emerging
trends within the domains of marketing and digital
technology. This necessity arises from the dynamic
nature of consumer preferences and behaviors,
which continually adapt to their ever-evolving
circumstances. Consequently, corporate marketers
must remain adaptable and receptive to the
integration of novel tools to maintain a competitive
edge.
The application of critical digital marketing
models in the context of Ukraine's current business
challenges during the war raises certain
controversies. Although many global brands have
maintained a presence in the Ukrainian retail
landscape, there has been a significant decline in
consumer demand. Consumers are increasingly
shifting towards more affordable goods, services,
and products that cater to their basic needs.
Furthermore, challenges related to internet access
persist in areas affected by or recovering from
hostilities. As a result, the process of digitalizing the
promotion of goods and services should encompass
more than just the virtual distribution of advertising
and product information. Marketers in specific
industries, such as construction, food, clothing, and
household appliances, should seize the opportunity
to adapt, as products from these sectors are likely to
experience higher demand among the population at
present. This adaptation necessitates the
implementation of additional strategic measures by
companies operating in each respective industry.
For example, to expand the circle of consumers
in light industry, and trade, it is advisable to use
social networks and communication channels more
widely, as well as: the creation of target, interested
groups of buyers in dialogue systems Viber,
Messenger, Telegram, Instagram, and Facebook.
Groups in these networks cannot control the
statistics of the site or page visits, and the number of
clicks, analyze sales conversion rates from online
and offline sales funnels, and determine their
effectiveness.
7 Conclusions
The examination of the process, potential, and
challenges associated with the digitalization of
marketing strategies for brand promotion in the
marketplace allows us to conclude that digital
marketing emerged in the 1970s. By the early 21st
century, it transitioned from the phase of gathering
information about products and services to the
online distribution of products and services by well-
established companies with substantial financial
resources. Marketing strategies encompassed
elements such as logos, advertisements, slogans,
distinct color schemes, and text choices, direct mail
advertising, reminders to consumers to make
purchases, customer registration on websites,
discount offerings, and promotional campaigns,
among others. This is how consumers became adept
at recognizing brands, posting reviews about them
on dedicated platforms, and endorsing or critiquing
products or services to other consumers or
competitors.
The emergence of global challenges such as the
COVID-19 pandemic, the conflict in Ukraine, and
political instability in other regions has prompted
companies to forge stronger connections with
consumers through social media channels and to
market their products through online platforms.
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DOI: 10.37394/232015.2023.19.112
Valentyna Morokhova, Zhyldyz Batyrbekova,
Olena Bondarenko, Tetiana Ustik,
Mariia Saiensus, Vitalii Travin
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Presently, digital marketing strategies are not only
fulfilling their conventional role of disseminating
information about products and bringing them closer
to consumers for consumption or use but are also
evolving rapidly in practical terms, in tandem with
technological advancements amid the context of the
21st century's fourth industrial revolution.
The formation of e-commerce skills in Ukraine is
at a very low level. The study of all the possibilities
of social communication channels, which are
already developed in the dialogue systems Viber,
Messenger, Telegram, Instagram, and Facebook,
and, with their active use and analytical calculation
of efficiency, the identification of needs in sales and
product promotion, should influence software
developers to improve these sources of distribution
of communication and sales.
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Source Base of Research
The article partially includes the results of the
international research project of the Scientific and
Technical Organization Teadmus (teadmus.org)
“Marketing and Brand Management in the Digital
Age: Enhancing Customer Relations”.
Contribution of Individual Authors to the
Creation of a Scientific Article (Ghostwriting
Policy)
The authors equally contributed to the present
research, at all stages from the formulation of the
problem to the final findings and solution.
Sources of Funding for Research Presented in a
Scientific Article or Scientific Article Itself
No funding was received for conducting this study.
Conflict of Interest
The authors have no conflict of interest to declare.
Creative Commons Attribution License 4.0
(Attribution 4.0 International, CC BY 4.0)
This article is published under the terms of the
Creative Commons Attribution License 4.0
https://creativecommons.org/licenses/by/4.0/deed.en
_US
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2023.19.112
Valentyna Morokhova, Zhyldyz Batyrbekova,
Olena Bondarenko, Tetiana Ustik,
Mariia Saiensus, Vitalii Travin
E-ISSN: 2224-3496
1245
Volume 19, 2023