Digital Marketing: Overview, Consumer Trends, Tools, and E-commerce Development

This report evaluates the opportunities, challenges, and effects of the digital environment. It covers topics such as digital marketing landscape, consumer trends, key tools, and e-commerce development. The report also provides insights into Tesco's digital marketing plan and strategy. BTEC Level 5 Higher National diploma in Business Unit 24: Digital Marketing

BTEC Level 5 Higher National diploma in Business
Unit 24: Digital Marketing
Centre Code: 01018
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Digital Marketing

Table of Contents
INTRODUCTION ..........................................................................................................................2
TASKS.............................................................................................................................................2
P1.Overview of the digital marketing landscape and compare online and offline marketing
concepts .................................................................................................................................2
P2. Determine and analyse the key consumer trends and insights that are fuelling the growth
of digital marketing ...............................................................................................................4
P3. The key digital tools and hardware that are available to marketers in contrast to 'bricks and
mortar' and other physical channels -.....................................................................................5
P4. The development of e-commerce and online marketing platforms with comparison to
physical channels- .................................................................................................................6
P5 Develop a digital marketing plan and strategy to build multi-channel capabilities-.........8
P6: Omni-channel marketing has evolved-............................................................................8
P7: The measurement techniques and performance metrics in digital marketing..................9
P8- There are set of actions to improve performance in digital marketing ..........................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
This report will going to evaluate an opportunities, challenges and their effect of the
digital environment. It would further elaborate the key digital technologies, different platforms
comparing with the different channels which will help in organising the digital market activities
to enable multiple channel capabilities in an organisation. It will also analyse various techniques
to monitor and measure digital marketing progress properly. An organisation which is selected
for this report is Tesco . Currently it is dealing in the retail industry and operating business in a
British public limited and was founded in 1919 by Jack Cohen. It is UK's largest retailers in the
term of sales. It has huge pool of staff working in at different location .This project covers
various topics such as digital marketing landscape and their comparison with the online and
offline marketing as well as determining the key consumer trends and insights which are
fuelling the growth of digital marketing in today's market.
TASKS
P1.Overview of the digital marketing landscape and compare online and offline marketing
concepts
The collection of different websites, email, social networks, mobile devices(tablets,
iPhones and smartphone) and YouTube that helps business to sell their products online is defined
as digital marketing landscape. Given field of marketing has seen an evolution that how brands
can establish communication with consumers and how consumers can communicate with brands
and also how they both can engage in communication with other. There are different trends
and innovations that influence digital marketing landscape are.
 Artificial intelligence: It is the ability of computer or machines to do those task which
are related to humans. It has the ability to understand the needs and demand of consumers
with the data which has already analysed. By dividing the audience. Artificial intelligence
helps companies to understand what consumers want. It helps to predict the purchasing
behaviour of target consumer.
 Social media marketing: This include several things such as posting text and image
upload, videos and other content that drives audience segment as well as paid social
media advertising. This helps to attract large customer for business by which content gain
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more likes and shares. This is one of the crucial way in order to attain marketing goals of
business.
Basis of comparison Offline marketing Online marketing
Cost This way of marketing is very
costly because it include
several things such as banners,
hoardings and many more.
Which sometimes become
very expensive for company.
In TESCO earlier company
were use offline marketing
concepts which became was
became very expensive for
company as they use hoardings
and bill boards for marketing
of their brand.
This kind of marketing is very
affordable as comparison to
offline marketing because it
include several things such as
SEO, keywords and many
more which is very affordable
for business to apply. In
TESCO, after making their
websites now consumer can
order their products online
with the help of mobile or
laptop from anywhere around
the world. Making websites
and doing SEO is become very
affordable for mentioned
company.
Better tracking of consumers In this kind of marketing it is
very difficult to track the
consumers that whether
consumer are purchasing
products or not. Earlier in
offline marketing TESCO
wasn't able to track their
consumers.
This form of marketing enable
business to track customers
whether they are actually using
business products or not. In
TESCO, after shifting to
digital marketing by using
several tools now company can
get to know how many
consumers are using products
and what type of response they
are giving on products.
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P2. Determine and analyse the key consumer trends and insights that are fuelling the growth of
digital marketing
Collection of behaviour, opinion and attitude which influence the decision making
capacity of consumer are defined as consumer trends. To evaluate such trends companies spend
huge amount to monitor the edge of consumer behaviour. For example health conscious, mental
health aware, eco-friendly, local travellers, virtual workers and many others. All the key
consumer trends which are fuelling in the growth of digital marketing are explained below-
 Rental and resale are in fashion- This consumer trend no longer relegated to those who
are financially struggle. New generation is nowadays shifting towards online stores and
rental services. Although the resale of goods can prevent the sales of new products.
 All-around global connectivity- The global retailing is the massive area no matter where
you are in the world, you can get access to a variety of sales and services as per your
requirements and demands. Products are just at the tip of your fingers through digital
connectivity.
 Environmental awareness- Now a days consumers are more concerned about the
climate change. A large group of people, consumer and others holds certain sentiment
which enable those respective groups to play greater importance and experience over
the ownership.
 Mobile- Mobile plays a major role in engaging with consumers which helps marketers to
identify consumer to create personalized messages for improved sales. Having mobile
apps as the part of digital transformation program improves overall customer experience
significantly. Mobile penetration is taking place in the market which is an opportunity for
both organisation and consumers
 Health conscious- Consumers are focusing more on health than before. It has become the
top most priority after the COVID-19 as after months of increased hand washing,
wearing protective masks and hygiene will remain in remain in everyone's mind. The
pandemic has caused people to think about the healthy lifestyle. Brands should take into
account their customer's health conscious behaviour and aim to do what they can do to
support them.
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 Online shoppers- Online retail will become a saturated market- base with large mass
which uses technology so, the companies can create easy e-commerce experience. This
can be done by embracing new shopping features on social media, Pinterest or Instagram
posts which makes it more easier for customers to shop through online platform.
Another interesting trend is shop streaming which allows consumers to buy products directly
from a live video (Cai and Lo, 2020).
 Programmatic Advertising- Companies receive a more reliable and cost-effective
solution to their needs which consist of self buying and selling of online advertising. It
helps in capturing the consumer's attention in today's world. There are many websites
which are being viewed in different channels everyday. This automation facility has
enable to do transactions in efficient and effective by streamlining the process and
combining the digital advertising efforts of one technology platform (Chaffey and Ellis-
Chadwick., 2019).
P3. The key digital tools and hardware that are available to marketers in contrast to 'bricks and
mortar' and other physical channels -
Tesco is a leading grocery store in the UK which is a British multinational groceries one of the
largest retailer in the world. It was founded in 1919 by Jack Cohen. The key digital tools which
are used by Tesco are as follows-
 Content marketing tools- These tools help the marketers to spot the opportunities and
make arrangements to post social media stuff that will resonate with audience. Such as
educational articles, e-books, webinars and entertainment. The concept of content
marketing has gained incredible popularity since 2010. These tools help in finding the
suitable audience and to allocate the resources.
 Social media platform- The most common tool to generate buzz around about the brand
for example, Instagram, Snapchat, Facebook and many others which allows marketers to
show their products ads and also can monitor the performance to measure the public
engagement for their brands and its products (Elhajjar, 2021).
 E-mail marketing tools- These are those type of tools which help marketers to develop
email campaigns that change their content to motivate their users to become more
connected with the brand. In order to make the impact the positive impact on various
campaigns it is required to make best use of the tools.
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 Design tools- Another important part of digital marketing is to designing tools which can
be used to add creativity on social media ads or blog post. Digital or online marketing is
such a process which is impossible without using application such as Canva and
Photoshop which can add great graphic graphic to image of the content.
Bricks and mortar( B& M) means to a physical presence of an organization business in a
structure. Basically it is a business which is situated in side street that offer products and services
to its customer It is a traditional business that has physical presence where customers make
purchase in person. Many customers prefer to buy from physical stores. In brick and mortar
stores consumers has the facility to speak with employees and ask questions about the different
products and services. There are also the disadvantages of the Bricks and mortar are as follows-
◦ Offline business requires more employees to operate their day to day functions.
◦ Selling products on the physical store is more expensive as compared to the online
platform.
◦ To set up such stores requires high start-up cost and operational cost which is a risky
part because it includes rent, tax, utilities and employees and many more.
Tesco has continually been investing in the technology to develop and focus on the omni-
channel customer experience in order to increase UK grocery landscape. It has moved from
'selling only offline to selling both offline and online method'. It has consists of competitive
pack by offering an omni-channel which refers to 'click and collect' function where customer
can place their orders in online way and collect grocery items as per their choice (Galipoglu abd
et.al.,2018).
P4. The development of e-commerce and online marketing platforms with comparison to
physical channels-
This is considered as a main activity of buying and selling different products online. Today the
e-commerce is growing rapidly. If a company wants to sell its products or services through e-
commerce various factors that play a major role are competitors, scalability, development,
designs and website development (Goldfarb and Tucker, 2019).
Digital marketing is now consider as a major part for doing successful marketing
organisation. Millions of people use social media technology on daily basis. Digital marketing is
considered as advertising of products of company on electronic media. People are using digital
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content on a daily basis. Physical market will be replaced by digital marketing. There are
numerous advantages of digital marketing which are as follows-
 With the help of digital marketing a company can reach a larger amount of customer in
shorter duration of time. Products which are marketed in digital way are available to all
the customers at every times. People have shifted to smart phones and desktop which are considered as the main
areas where digital marketers have gained more popularity (Hanlon, 2019).
 Encourage customers to follow on social media channels so that they can get access of
daily updates about the products and keep them engaged with the content that delights
them. Various point based loyalty programs can also be utilized both offline and digital
channels the more customer spends their time the more points they can collect as well as
members also receive personalized emails changing them of new products and
membership gifts.
The major difference in online and traditional marketing is the main medium through which an
audience can connect with a marketing message whereas in traditional media it uses tools like
hoardings and banners.
Basis Digital Marketing Physical channels
Meaning It means the marketing of
products or services through
digital channels such as
display ads, internet,
smartphones and many more.
It means marketing that uses
traditional channels for the
marketing such as newspapers,
magazines, print ads handouts
and many more.
Engagement of public High Comparatively low
Tracking Possible Not possible
Reach Global Local
Interruptions Allows the consumers to avoid
or skip the ads which do not
interest them.
Consumers are bound to see
them. They cannot skip the
ads.
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Nature Dynamic Static
P5 Develop a digital marketing plan and strategy to build multi-channel capabilities-
Given plan outlines the marketing goals pursed by a company which helps to manage the
timelines, budget and strategies. In this plan company outline its marketing plan which includes
the roadmap, business goals, investments and budget. Digital marketing plan helps to organize
the initiatives for connecting with the audience for engaging them and driving them to action.
One can think ahead and coordinate among departments for greater impact to integrate digital
marketing( Kundu, 2021).
Tesco can create a website for CSR activities for COVID affected patients , homeless
person or disaster affected person to pursue other pro-socio objectives. Tesco cares about people
in different ways through eduction initiatives, support for charities, promoting human rights and
through health living. It operates globally with the main goal to earn the lifetime loyalty of the
customers. It is having branches in the many countries globally. The reason of success is that its
focus on the customers to provide the quality products at cheap rate.
P6: Omni-channel marketing has evolved-
This type marketing is the collection of the different channels which are being used by the
organizations to do interaction with the customers with the main goal to be more consistent for
brand improvement. Main credit goes to the online channel and modern customers which have
more options to be more engaged with the brands. It also leads to the better customer experience
overall (Leban and Voyer, 2020).
It is mainly integration of online, messaging and branding touchpoints which enables to
have a more impactful customer experience. It aims to encourage the interaction between the
customer and the retailer. This concept was first introduced in 2010 to explain a shopping
experience but nowadays the customer journey has more dynamic and accessible than even
before as the companies are communicated through a centralized system which creates an
overall view of the customer interactions. It also enable the customers to enjoy a seamless
superior customer experience no matter how they choose to get engage among customer. In
today's world,most brands begin their journey to omnichannel from a single channel email
( Opresnik, 2018).
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As recently few years age different companies that adopted a multi channel approach to
support their customers as innovative as leaders in the industry. The customer of today is
omnipresent because when the customers interact with an e-commerce brand they are constantly
jumping around different channels as people rarely buy from the first site visit. That is why it is
complicated to build the trust of the people from the very first site visit with omnichannel
marketing (Palmatier and et.al., 2019).
P7: The measurement techniques and performance metrics in digital marketing
Various techniques and KPIs in online marketing are as follows-
Incremental Sales- It helps in evaluating the marketing campaigns which results in increased
sales revenue.
Brand Awareness Metric- It helps in tracking how people can understand their brand on
different social media and search engines.
Return on Marketing Investment (ROI)- It measures the capability of different marketing
campaigns to generate new source of revenue for business ( Ruan and Siau, 2019).
P8- There are set of actions to improve performance in digital marketing
Various set of actions which required to improve the company's performance in the digital
marketing are as follows-
 Content is share-worthy- Make sure the content is created is share-worthy and fits in all
the campaigns. Content not only helps in build trust and connection with the target
audience but also it acts as a medium to promote the business in digital way because it is
necessary to get the attention it require. Moreover, it helps the audience to get the
answers to their questions.
 Use trends analysis- It is a approach to analyse the behaviour of the websites and
specific landing pages. This data can be utilized to customize the campaigns for the
improved results (Tuten, 2019).
 Measure the content reach- Digital marketing tends to help the audience to have a
broad picture of what are different content topics and which types are effective in the
market. It can be checked by different ways like number of participants per month by
content, type, persona and sales stage (Swan, Dahl and Peltier, 2019).
 Consider the audience – In order to increase sales with the help of digital marketing its
a must to know the audience first which can be communicated through various platforms
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like Email, Instagram, Twitter and Facebook. It helps to identify the various channels
which are used by the audience to get the more information about brands.
 Track the social media channels- This type of marketing has gained popularity. Social
media exist to drive a potential buyer deeper into the sales cycle and motivate them to
engage by focusing through landing pages, doing something to earn higher lead or
requesting a demo.
 Google Ads- Google ads are suitable for both who are at initial stage and at professional
level. Beginners have the option to use the Google Ads by using the Smart campaigns. A
company can promote business through the advertisements that appear on search engine
results page.
Digital marketing is a powerful tool for all type of business which allows it to create the clear
plan for how to take initiative to reach the targeted audience along with it to create a direct
relationship with them.
CONCLUSION
On the basis of above report it has been said that that digital marketing plays a very important
role in overall success of an organisation. By using this technology a business can easily do its
marketing at very cheaper and affordable cost. In this report it has been discussed that what is
digital marketing landscape and differentiation between online and offline marketing. Moreover
it had also been discussed that what are the key consumer trends and how they can give boost to
digital marketing. It had also been discussed that what are different tools a businessman can use
to do effective digital marketing. Moreover it has also been discussed different marketing
platform a business can use to do digital marketing in order to carry on business operation in
effective and efficient manner. At last different techniques, performance metrics and what are
different set of actions for improve performance of digital marketing have been discussed.
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REFERENCES
Books and Journals
Cai, Y.J. and Lo, C.K., 2020. Omni-channel management in the new retailing era: A systematic
review and future research agenda. International Journal of Production
Economics, 229, p.107729.
Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing. Pearson uk.
Elhajjar, S., 2021. Digital marketing jobs: What are recruiters looking for?. Journal of Education
for Business, pp.1-7.
Galipoglu, E., Kotzab, H., Teller, C., Hüseyinoglu, I.Ö.Y. and Pöppelbuß, J., 2018. Omni-
channel retailing research–state of the art and intellectual foundation. International
Journal of Physical Distribution & Logistics Management.
Goldfarb, A. and Tucker, C., 2019. Digital marketing. In Handbook of the Economics of
Marketing (Vol. 1, pp. 259-290). North-Holland.
Hanlon, A., 2019. Digital marketing: strategic planning & integration. Sage.
Khurramov, O.K. and Kasimova, H.J., 2019. The main advantages of internet marketing and
differences from traditional marketing. Мировая наука, (4), pp.65-68.
Kundu, S., 2021. Digital Marketing Trends and Prospects: Develop an effective Digital
Marketing strategy with SEO, SEM, PPC, Digital Display Ads & Email Marketing
techniques.(English Edition). BPB Publications.
Leban, M. and Voyer, B.G., 2020. Social media influencers versus traditional influencers: Roles
and consequences for traditional marketing campaigns. In Influencer Marketing (pp. 26-
42). Routledge.
Opresnik, M.O., 2018, July. Effective Social Media Marketing Planning–How to Develop a
Digital Marketing Plan. In International Conference on Social Computing and Social
Media (pp. 333-341). Springer, Cham.
Palmatier, R.W., Sivadas, E., Stern, L.W. and El-Ansary, A.I., 2019. Marketing Channel
Strategy: An Omni-Channel Approach. Routledge.
Ruan, Z. and Siau, K., 2019. Digital marketing in the artificial intelligence and machine learning
age.
Swan, E.L., Dahl, A.J. and Peltier, J.W., 2019. Health-care marketing in an omni-channel
environment: Exploring telemedicine and other digital touchpoints. Journal of Research
in Interactive Marketing.
Tuten, T.L., 2019. Principles of Marketing for a Digital Age. SAGE.
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