Digital Marketing: Overview, Consumer Trends, and Multi-Channel Capabilities

This article provides an overview of digital marketing landscape and compares online and offline marketing concepts. It also determines and analyses consumer trends and insights that are fuelling the growth of digital marketing. The article examines the development of e-commerce and digital marketing platforms and channels in comparison to physical channels. It also develops a digital marketing plan and strategy to build multi-channel capabilities for Tesco.

Digital Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Overview of digital marketing landscape and compare online and offline marketing
concepts.......................................................................................................................................3
P2 Determine and analyse consumer trends and insights that are fuelling the growth of digital
marketing.....................................................................................................................................4
TASK 2............................................................................................................................................6
P3 Determine the digital tools and hardware that are available to marketers in contrast to
bricks and mortar and other physical channel.............................................................................6
P4 Examine the development of e-commerce and digital marketing platforms and channels in
comparison to physical channels.................................................................................................7
TASK 3............................................................................................................................................8
P5 Develop digital marketing plan and strategy to build multi channel capabilities..................8
P6 Explain how Omni-channel marketing has evolved..............................................................9
TASK 4..........................................................................................................................................10
P7 Determine and evaluate the measurement techniques and performance metrics in digital
marketing...................................................................................................................................10
P8 Present a set of actions to improve performance in digital marketing.................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Digital Marketing is a media through which company can deliver their advertisement by
using different channels such as email, websites, social media, mobile apps and search engine.
Through digital marketing, organisation can endorse their services, products and brand in order
to attract large number of customer (Centobelli and et. al., 2016). This project is based on digital
marketing in which the understanding of opportunities, challenges and impact of digital
environment is determined. It also examines key digital tools, channel and platforms by
comparing and contrasting bricks and mortar and other physical channels. The project also
determines how to organise digital marketing activities and build multi-channel capabilities in
organisation including various methods of monitoring an measuring digital marketing
effectively. The chosen firm for accomplishing this project is Tesco, it is a public limited
company which was founded in 1919 by Jack Cohen. Tesco is considered as ninth largest
company in the world in terms of revenue generation.
TASK 1
P1 Overview of digital marketing landscape and compare online and offline marketing concepts
Digital Marketing is a process or strategy that helps in connecting advertisers with
audience across various digital platforms. It is a mechanism through which company can sell its
products and services by using different channels such as mobile apps SEO, email and social
media. The few important elements of digital marketing are organic search, lead nurturing, social
media marketing, mobile consideration and content marketing (O’Connor, 2015). Tesco
implements various types of digital tools and techniques in order to attract more and more
customer towards the brand. By using digital marketing tools, company can track and monitor
the campaigns. It also makes easy for company to track their campaigns by allowing to adapt and
drive better result. Through digital marketing, Tesco can connect with their potential customer
by using internet and various forms of digital communication. The different forms of digital
marketing are emails, web based advertising and social media. Through conversion company can
get real results in the form of subscribers, traffic, number of sales and leads. Digital marketing
activities helps in optimising the conversion rate of organisation by running and advertising the
campaigns online. In order to gain higher conversion rate, it is important to work on different
digital strategies. Tesco generally engage and interact with customer who have interest in the

products and services of brand. It is a medium through which company can enhance its
reputation and brand image. When organisation interact with their customer it gives chance to
take feedback and reviews from market about how their products and services is performing.
Tesco can build great brand reputation by caring about their consumers. It is the responsibility of
the brand to pay attention and solve the issues which is faced by customer. There are various
competitors of Tesco which also use different digital marketing tools in order to create strong
customer base and attract large number of audience. Digital marketing provides an opportunity to
company to be in contact with their potential customer.
Online Marketing concept:
Online marketing is a process of promoting products and services to its customer by
using internet. It helps in improving the engagement level of customer with company's content
and promotion. Through online marketing, Tesco can easily track their return on investment and
target specific demographics.
Offline Marketing concept:
Offline marketing concept doesn't involve internet, through opting offline marketing
company can promote their products and services through magazines, mailers, television
advertisement and billboards (Liu, Perry and Gadzinski, 2019). This type of marketing is
impactful and easy to understand and also customer can easily remember the ads of brand as
compare to social media marketing.
P2 Determine and analyse consumer trends and insights that are fuelling the growth of digital
marketing
Consumer insights play an important role in optimising the customer journey and
understanding why and what customer is doing. Through consumer insight, Tesco can gain
deeper knowledge of how customer think and feel about its products and service. By knowing
customer, company can build deep empathy beyond understanding what their needs and demand
are. By using different digital marketing activities, Tesco can identify the moves and action of its
customer and also they can know about the perception of goods and services provided by
consumers (Susanto, 2017). Organisation use customer insights to develop competitive
advantage and also gain good marketing information in order to improve the growth and
profitability of business. Digital marketing is increasing the buying power of consumers by
encouraging and motivating them to buy the products and services. Customers doesn't depend on

the brand but they also focus on comparing the products, services, blogs, reads and reviews that
company has got. It is important for the company to maintain good reviews that helps in
attracting large customer base towards the brand. There is a rise in online consumer power as
customers are demanding productive products with high quality that doesn't affect their health.
Organisation faces various challenges and impacts of digital marketing as there is usually a shift
from brands and suppliers to consumers (Lui and Au, 2017). Therefore, customer gain different
experiences from products and services. Some of the customer gain positive experience whereas
some gain negative experience. It depends on the company what experience they are providing to
its customer. It is necessary for Tesco to offer high quality of goods and services to its customer
in order to enhance their experience and make them satisfied with the brand. Tesco must focus
on reducing negative publicity as it can influence the profitability and growth of business. It is
the morale responsibility of company to meet the expectation of consumers by fulfilling their
need and demand. There are various ways through which organisation can track and monitor the
multitude of different services used by customer such as google analytics, UTM parameters, IP
address, track engagement on email channels and many other. Micro-moments generally means
when customer reflexively turn to a device and need to learn something. It is important for the
company as it helps to understand the online consumer journey from search discovery intent
through buying intent. The consumer trends and insights that are fuelling the growth of digital
marketing are as follows:
AI powered optimising:
AI powered optimisation is one of the consumer trend which can influence the growth of
digital marketing. Organisation can gain competitive advantage by implementing artificial
intelligence in its business (McGruer, 2020). Through adopting artificial intelligence, company
can obtain or sustain competitive advantage and also it helps to analyse the consumer behaviour
and search patterns so that company can understand how consumers find their goods and
services.
Rapid growth of e-commerce:
The rapid growth of e-commerce can also influence the growth of digital marketing. In e-
commerce market, the marketplace is growing as consumers can easily find everything online
and also avail the discounts and great deals. Tesco also offer their products through different e-

commerce channel. It is important for organisation to implement latest technology that shapes
the shopping habits and expectation of consumers.
Negative reviews and feedback:
Negative reviews can also influence the growth of digital marketing, it is necessary for
the company to address the negative reviews provided by customers. The negative reviews can
affect the profitability and productivity of business (Theodoridis and Gkikas, 2019). Thus, for
making business successful and attract large number of customer, it is necessary to maintain
positive reviews.
TASK 2
P3 Determine the digital tools and hardware that are available to marketers in contrast to bricks
and mortar and other physical channel
Digital marketing tools helps in promoting the products and services of brand. Through
digital marketing tools, company can connect with their target customer and also communicate
with them directly via internet. There are various types of digital marketing tools which are
available to marketers in respect of bricks and mortars they are given below:
Social media marketing tool:
It is one of the digital marketing tool which is available to company in contrast to bricks
and mortars. Social media marketing tool is considered as effective tool as it helps in reaching to
large number of customers. Through social media marketing, company can connect with their
target audience, drive website traffic and also improve their sales (Saura, Reyes-Menendez and
Palos-Sanchez, 2020). Tesco must focus on using social media marketing tools as it helps in
enhancing the profitability and growth of company. There are various channels in social media
marketing which can be used by Tesco in order to create strong customer base and gain
competitive edge over its competitors. The platforms of social media are Twitter, LinkedIn,
Facebook, Instagram and many others. One of the biggest platform of social media marketing is
Facebook.
Search engine optimization:
Search engine optimisation is another tool that is available to marketers in contrast to
bricks and mortars. Through search engine optimisation, company can improve its content rank
on Google. The main aim of search engine optimisation is to improve the ranking of website in

search engine listings (Paranjape, 2018). Tesco must focus on implementing search engine
optimization so that they can keep the search results fair and also improve the customer
experience. The goal of search engine optimisation is to boost the presence in relevant online
search results so that company can increase the sales, leads and revenue.
P4 Examine the development of e-commerce and digital marketing platforms and channels in
comparison to physical channels
E-commerce was traced back to 1960's when the Electronic Data interchange takes place.
In 1979, an English inventor who was credited by developing the concept of online shopping. E-
Commerce was a pipe dream earlier but now it is one of the effective and efficient way through
which customer can shop. There are few trends which are increasing the growth of e-commerce
such as online marketplaces, M-Commerce, digital marketing and social shopping. E-commerce
has become very convenient for companies to sell, promote and attract large number of customer
(Barata, and et. al., 2018). Shopping through E-commerce is effective as consumers can avail
wide varieties of products and services from different social media sites. There are various types
of e-commerce channels that offer different range of products and services to its customer such
as Alibaba, Amazon, Magento and many other. M-Commerce has bring vital developments in e-
commerce as it sells products and services through handheld devices. Through M-Commerce,
Tesco can allow customer to browse for products and compare details and price of goods and
services with other platform. The future of E-commerce is bright and also increase the growth
and development of industry. E-commerce is heavily rely on advances in technology and
sociocultural influences. Future of E-Commerce generally includes AI and machine learning,
AR/VR, Cryptocurrency payments and multi channel buying.
Digital marketing is a medium through which company can build connection with their
customer directly by using Internet. Through these company can share message and convey their
information to customer. Digital marketing helps in gaining higher conversion rate as the main
goal of Tesco is to get conversions. It also helps in interacting with target audience, company
generally want to engage and interact with their customer in order to build their interest in
product and service. Digital marketing is a way through which organisation can reach to large
number of customer globally. One of the advantage which can be gained by Tesco is that it
removes all sorts of geographical barriers. Digital marketing helps in opening the doors to
foreign countries and offer them products and services. Company can market to them by just a

click and also develop awareness among audience to buy the products of brand. Through digital
marketing, Tesco can send personalised message to their similar customers as it increases the
chances of converting them into strong customer base (Khan and et. al., 2020).
TASK 3
P5 Develop digital marketing plan and strategy to build multi channel capabilities
Digital marketing plan helps to determine effective digital marketing strategies that can
give better result. Tesco must build digital marketing plan as it helps in engaging and connecting
with customer. There are various strategies for building multi channel capabilities such as by
identifying buyer persona, choose effective channels, focus on customer, leverage automation
and many others.
Define Brand:
Tesco is one of the leading brand which deals in varieties of products and services such
as petrol, toys, clothes, financial services, electronics, internet services, books and many others.
Buyer Persona:
Key Elements Consumer Persona
Demographics Age: 20-50
Occupation: businessmen and household
Status: married, single, unmarried
Profile Products with high quality at affordable price.
Motivations for using Tesco products and
services
Tesco is leading brand that attracts their
customer by offering high quality products at
reasonable price.
Goals for using Tesco products and services The main goal of using Tesco products and
service is that they offer varieties of products at
different price range.
Pain points Tesco products and services Tesco doesn't implement discount coupons and
other promotional tools in order to increase the
sales of brand.

Set goals:
The goal of Tesco is to increase its market share and enhance the number of visitors on
its website by 20% till 2025.
Digital Marketing Method:
The digital marketing method which must be used by Tesco is content marketing. It is
one of the effective strategy through which company can attract and retain large number of
customer by offering them attractive content.
Set Budget:
Particulars Amount (In £)
Research and development 2700
Salaries to professionals and
employees
2500
Promotional expenses 2200
Sales supporting tool 2500
Other expenses 7200
Total 17100
Measure the result:
For measuring the result, Tesco must use key performance indicators as it helps in
measuring the performance in digital marketing.
P6 Explain how Omni-channel marketing has evolved
The Omni-channel marketing was evolved in 2000 in order to define the shopping
experience that helps in spreading multi channel approaches in e-commerce industry. Through
omni-channel marketing, company can avail the big picture of their advertising campaigns.
Omni-channel marketing provide 360 degree view of customers engagement with organisation. It
is important for organisation as it helps to achieve more availability, integrate touchpoints and
also drive sales and traffic. Omni-channel marketing also allows to meet their customers where
they are and also provide right message at right time. Tesco can deliver excellent customer
experience through omni-channel marketing as it helps in smoothening the customer journey and
also understand more about the customer insights. Omni-channel marketing helps in increasing
the customer experience and also customer loyalty. Mainly consumers get engage with brand
through digital advertising, social media, websites, TV Commercials and print materials. Omni-

channel marketing provides opportunity to company to customise the message for individual and
audience. It also helps in increasing brand recognition by providing consistent and seamless
experience to customer. Generally, brand recognition is created when consumers are satisfied
with the products and services (Mehta and Kaushik, 2015). The Omni-channel marketing
strategies is designed to increase the awareness among target market. By adopting omni-channel
marketing strategies, Tesco can increase its revenue and also integrate marketing analytics and
cross channel insights. But there are few risk which must be prioritise by company in order to
run the business in effective and smooth manner such as omnichannel budget, increased
technical expertise, consistency in brand messaging and difficulty in tracking the customer
journey.
TASK 4
P7 Determine and evaluate the measurement techniques and performance metrics in digital
marketing
In order to measure the progress of digital marketing, it is important to use different tools
and techniques that helps in measuring the performance of digital campaigns. There are few
techniques which must be used by Tesco in order to measure the performance in digital
marketing they are as follows:
Google analytics:
Google analytics is one of the method through which company can measure the
performance in digital marketing. It helps in tracking hos customer interact with the product and
services of company. Google analytics is one of the effective tool that helps in identify where
customer are on website and what they are looking. Through Google analytics, company can
easily track how consumers interact with their website.
Mobile Traffic:
Mobile traffic is also a tool which occurs from mobile apps and mobile devices. Through
mobile traffic, Tesco can understand how customer can access their site via mobile devices. It is
one of the tool that helps to learn about how many consumers are accessing company's website
via mobile device. Mobile traffic also helps in determining how long customer can stay on
website and how deeply they go on mobile device.
KPI:

Key performance indicators is also a way through which organisation can measure the
performance in digital marketing. The effective tool for tracking KPI's is google analytics and
web analytics. Through KPI, Tesco can measure the its performance against its strategic
objectives. It also helps in providing clear information and objective of progress towards the end
goals.
P8 Present a set of actions to improve performance in digital marketing
Tesco must focus on improving its digital marketing performance in order to create
strong customer base and improve the profitability of business. There are various set of actions
through which company can improve the performance in digital marketing they are as follows:
Create ultimate buyer's journey:
It is one of the way through which company can improve the performance in digital
marketing. It is important for Tesco to understand their consumers in more depth in order to
create ultimate consumer journey and refine the process of buying (Opresnik, 2018). In order to
create ultimate buyer journey for customer, Tesco must optimise their online and mobile
shopping experience. When there us a smoother buyer journey it helps in increasing the
likelihood of conversion.
Optimise SEO:
It is also a strategy through which organisation can improve the performance in digital
marketing. Tesco must focus on optimising their SEO as it helps in attracting large customer
base and also provide them information about the brand. Through SEO, the availability of brand
increases due to which the profitability and sale of business increases.
Measure Content reach:
Measure content reach is also a way through which company can measure the
performance in digital marketing. Tesco must focus measuring internal and external reach so that
they can avail the broader picture of content types, topics and messaging. Through measuring
content reach, organisation can identify the effectiveness of its content.
CONCLUSION
It is being concluded from the above information that there are digital marketing helps in
improving the performance and efficiency of organisation. Through digital marketing, company
can improve its customer base and also attract maximum number of audience towards the brand.

There are various elements in digital marketing that helps in improving the performance and
productivity of business. Digital marketing helps to target large number of audience and also
considered as cost effective as compare to traditional marketing. There are various types of
digital marketing such as email marketing, content marketing, social media marketing, display
advertising, search engine marketing, affiliate marketing and many other.

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