DIGITAL MARKETING IN THE SERVICE SECTOR: OPPORTUNITIES, CHALLENGES AND TRANSFORMATION STRATEGIES

This research investigates how service companies can optimize digital marketing strategies to harness emerging opportunities and overcome persistent challenges in a rapidly evolving digital economy. Despite the sector’s growth and the availability of established frameworks–such as Rogers’ diffusion of innovation, the AIDA model, and the 7Ps marketing mix–a gap remains in understanding how these models can be practically integrated to address barriers like resistance to change, digital skills shortages, and technology integration. The study adopts a qualitative, three-stage methodology: (1) analysis of trends including artificial intelligence, immersive technologies, hyper-personalization, and ethical practices; (2) benchmarking best practices through industry reports and agency case studies, focusing on personalized customer experiences and omnichannel engagement; and (3) in-depth examination of documented digital transformation cases from leading firms such as Nike, IKEA, Lego, and Starbucks. The findings demonstrate that digital marketing enhances visibility, targeting, engagement, and operational efficiency while also presenting challenges related to change management, skills gaps, integration complexity, and data security. The study contributes an integrated framework linking opportunities, challenges, and success strategies and recommends further research on small and medium-sized enterprises and the ethical dimensions of digital marketing. This work offers practical advice for service companies navigating digital transformation.