Abstract Taking Zhejiang China Tobacco Industry Company as an example, this study conducts vertical single-case research to explore the processes and mechanisms of the digital transformation of marketing in state-owned enterprises. The study finds that: The digital transformation of marketing in state-owned enterprises is initiated with the channel management digitalization. It then sequentially promotes the digitalization of merchant management, customer relationship management and product innovation, forming a digital marketing flywheel with positive feedback, and improves the overall level of digital marketing and the brand influence; State-owned enterprises continuously promote the digital transformation of marketing by adjusting market orientation to meet the needs of high-quality development and the changes in the market policy environment; The market orientation of state-owned enterprises evolves along the path of
“plan-driven—market-driven—emphasizing on both market-driven and market-driving”, reflecting the transition of state-owned enterprises from passively responding to the market to actively leading the market, demonstrating their mission and responsibility in the new era.