Introduction: This report basically discusses and analyses the importance of digital marketing in a current business scenario. Instead of trying the traditional way of discussion this report has considered one of the epic failure cases in the context of digital marketing and confirmed the key lesson learned from that case. So, the report has chosen the failed case ofBoo.comwho has launched the business ofonline global sportsretail site in the year 1999 spending ÂŁ125 million in six months and was closed in the year 2000. According to the case study the company had a strong background considering the experiences of the financial director and the other two co-founders with publishing success. However, the company in its initial stage has targeted both European sectors and the US with funding of ÂŁ22.4 million in marketing and public relation. During a meeting with the capitalist Larry Linehan, they were unable to present the key indicators like conversion rates, visitor numbers, acquisition costs of expected growth rates which confirmed that the digital marketing plan for a global online company like this is very poor. They should have a better plan with CLTV, CAC while doing such a costly establishment. The report has dedicated itself to identify the basic differences between traditional and digital marketing, usage of web optimization techniques, social media and content marketing process, as well as the process of web visibility, brand awareness creation and process of digital management. 1. Traditional & digital marketing: Differences between traditional and digital marketing: Although digital marketing can be considered as another way of marketing and advertising but the communication process is way better than traditional marketing. The digital marketing means using websites, video, audio channels, social media to publish or advertise the product lines while traditional marketing uses TV, radio, printing advertisements to launch some product lines. Of course, both the marketing styles have a common objective and that is o reach the target customer base efficiently. However, digital marketing is better than traditional marketing as it providestwo-waycommunicationwhiletraditionalmarketingprovidesone-way communication. As an example, if a product is advertised on social media like facebook then the viewers can instantly comment or post on the wall which is not possible in case of traditional marketingchannels.Again,thedigitalmarketingiscost-effectiveasmakingpagesand publishing are of very low cost comparing the advertisement costs in the TV, print media. The
traditional marketing channels like broadcasting media, tv advertisement, direct mails with catalogs make the advertiserswait for weeks to see the outcome while the digital media show the results on a click (Ryan, 2016). Moreover, themultidimensionaldigital channels can use easy but accurate analytics (Google Analytics) to measure the performance indicators like a basic trend, traffic, transformation rates, bounce rate which is not possible by theone-dimensional traditional channels. Again,trackingthe number of viewers in case of traditional marketing is time-consuming and erroneous while digital marketing process uses the tracking as a part of the promotional strategies. The concept of digital marketing is completely different from traditional marketing. The first one is like anopen system with the transparent brand and user-generated contentwhile traditional marketing is likemass marketing with opaque professional content. The key differences are concentrated below. ●Thedata-drivendigital marketing usesreal-time contentcreation with the theme of engagementwhile traditional media use the theme of thefrequencywithprofessional content. ●The digital marketing can provide theproof of authentication instantlywhile traditional media is not able to do so instantly ●The traditional media use actorsor celebritieswhile digital media use users and influencers (Järvinen and Karjaluoto, 2015). ●Thebottom-updigital strategy coversinformal languagewithactive involvementin the unstructured communication while the traditional media usetop-downstrategy with formal language and passive involvement ●Thedeep analyticsdefine the digital media asowned, earned and paidwhile the poor analytics of traditional media define it as onlypaid. Why should Boo.com have used digital marketing: Although the company had a strong background but the financial vision was not completely transformed into reality by the business case. First of all, the focus was to become the first global retail sports site. The brand was interested in showing European features with global appeal. Therefore, the company has focused on both the European and American market simultaneously. In the initial stage, it was a risky approach and reminds the example of the successful online retailer Amazon. Amazon has the same aim too but with vast product lines but this company has taken a sequential approach to capture the market. That means it has targeted first theUS market and then the other including European market. Secondly, the target market of Boo.com was young and fashion conscious generation (18-24 years) and the market research process was traditional. The growth information was collected from the retail analysts and there
was no specific information on ROI for future. In this context, digital analytics could help with accurate market research information (ups and downs too) (Patrutiu-Baltes, 2016). The investor proposal has covered popular brand names like "Polo Ralph Lauren, Tommy Hilfiger, Nike, Fila, Lacoste and Adidas" and focus was on recreating the offline market experience. There were3D visualizing and zooming features(unique) and used thestack control or visualization software.Hereagain,thedigitalmarketingwithitsearned,ownedandpaidfeature (management) may give the company more popular than usual. The cataloging and mannequin clothing covering all the activities cost $ 6 million which could be very cheap via site popularity activities. Theweb experienceand 8-second download limits were not satisfying for the customers where digital marketing may show the managers negative outcomes. So, from the initial to final stage integrating different digital marketing activities might have changed the future. 2. Web optimization techniques: There were some major issues in Boo.co web optimization environment and they could be improved with the following web optimization techniques. Poor-conceived products: According to the historical data Boo.com had a huge advertisement and PR campaign offline but the online site launching missed 35,000 potential customers. In simple terms, the campaign was for a global brand who had no online presence then. The site development was a long process for the retailer. In this context, thecode minificationprocess might have changed the time taken for the site development. This process removes the interpretation gaps between network elements and codes making the development process simpler. Again, thelossy compressionmight have changed the pixel quality and color gradation issues without affecting the content visibility. PR marketing gaps: The Boo.com marketing was dependent on the public relation heavily. As an example, the in-house publication of Boom in different languages was focused on product marketing but failed to get good orders for the retailer. There were catalog style magazines too but sales outcomes were vaguely predicted (Kannan, 2017). In this context, the web performance can be measured viapage speed and pagelocitytechniques which can grade the site speed and measure the social metrics respectively.
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Customerrealityissues:Theonlineretaileraimedtotransformthephysicalshopping experiences into online shopping experiences via a virtual assistant. It was a unique and creative idea but the complex software requirements were not met properly. As an example, the online appearance was good for broadband connection but in that time the dial-up connection was popular. So, the website neededHTTP request reductionfor resource consolidation,file compressionfor low loading time andcaching optimizationfor latency as well asraster graphicsfor 3D images. 3. SEO, SMM & content marketing: TheSEO, SMM and content marketingmight have changed the Boo.com outcomes for attraction, retention and engagement policies. The search engine optimization is a process to attract customer or visitors using different features of search engines. The key activities are measuring visitors, preferences, idle time, conversion rates etc. Again, social media and content marketing means using the internet to promote products online via digital tools. The key activities are measuring social media presence, brand position, future outcomes per consumer preferences. Both the processes attract new customers to targeted pages. In the case of SEO the organic sessionscount the number of paid visits in the targeted webpage considering the inactive user time. It is an important KPI and for brand searches like Boo.com, it could be used as a critical success factor. Moreover, theCTR (expected-click-through-rate)connect pages with attracting keywords, meta-descriptions so that the single positions multiplied in small time via link visiting. Another important KPI is thekeyword rankingand this identifies the keyword positions in the leading search engines like Google, Bing, Opera etc. If the keyword ranking is low then brand names are positioned in the list ends with poor visibility. In the case of Boo.com, this KPI could have alerted the company about their real position in the market. After getting the online visibility the websites need to make the position consistent andleads/ conversionscan help here (Nummelaet al.,2016). They are the communicable channels like a newsletter, sign up, webinar to stay connected. The retailer Boo.co was way too attentive on the online newsletters and neglected these tools. Here other too related KPIs areCRO and UX (user experience)who can identify easy navigation, call-to-action efficiency, trustworthy contents as well as expected conversion funnel. Thebounce ratealso can identify the attraction quotient of the customer confirming loading session and time to exit. Again,page load timeshould be 3 seconds
(standard) while Boo.com had 8 seconds so they had crossed standard limit repelling the customers. In the case ofsocial mediamarketing there areactive and passive promotion strategies. The active strategies add content links to the popular social sites while passive strategies show activities like a status update, event announcements in the social sites (FB, LinkedIn, Instagram, Picasa). The active strategies might help Boo.com vialink building campaignandcontent marketing strategymight have used analytic tools to identify customer preferences. 4. PPC & Online display: PPC and online display design steps: The PPC or pay-per-click is a special type of online advertising where the advertisers are paid if the site visitors or the end users click the advertisement links or buttons. The advertisers use a bidding process to increase the value of the advertisements using keyword ranking, innovative platforms, and target audience. The basic goals of any PPC campaigns are increasing the sales, leads and brand awareness. It is highly focused on data relevance. As an example, it provides product, service information via targeted advertisements in a timely manner If a user searches " Boo services" the advertisement may take the user to the link of "boo.com" webpage. There are many efficient platforms to use this style. The Google Adwords in the largest platform for partnerordisplaynetworksites.Moreover,BingcanshowBingandyahoonetwork advertisements. In terms of accounting structure, the advertiser can select individual keywords for different campaigns considering keyword variation and match types. There are also negative keywords to remove unwanted users. The advertisers create the audience considering page view, time spent on the page etc. The companies can usetext, product, image,advertisements with different types of campaigns likesearch, display, product listing, device and location targeting. The steps to design an effective PPC are given below. â—ŹThebusinessandmarketingteamsshouldcreategoalandexpectationsforthe advertisements â—ŹThe next step is tofix the targetsfor the advertisements. That means the keywords, Ad copy, phrases should be relevant and the landing pages should be aligned with the keywords for high-quality user experience and maximum ROI (Chaffey, 2015) â—ŹSimultaneously the advertisers should list the possible outcomes and include the same in thecall-to-actioncontext of the advertisement. â—ŹThe URL and pixel tracking will be included to analysis the metrics while the campaign is on
â—ŹNext, the easy and simpler campaign structure will be created with manageable targeting options while using some customized adoptions â—ŹThe success factors will be measured at regular intervals after the promotion and the factors are a keyword, landing page, quality score, and advertiser cost/keyword Application in Boo.com: In the case of Boo.com there were high pricing issues and the local and zonal pricing conflicts were highly visible. Moreover, the investors were not aware of the real funding situation in the company which led nasty funding confusion. The PPC policies and factors might have changed the issues. First of all the company should have used both the advertisement delivery methods. In simple terms, theoptimizedfactor considers the advertisement delivery on high click volume while theindefinite rotateworks like an online auction to catch customers. The rotate mode will follow all the geographic locations for the user clicks while optimize will collect the specific target users. Based on the user needs the prices will be allocated and retail interest will meet when the specific customers take the purchase offers. In terms of technology, the PPC can try conversion tracking in a web page, devices, call extension, imported goals and identify the users as well as retailer preferences. Therefore considering the peak volume of visitors the company would have appliedsurge pricing policy (the high rate at high demand)like Uber. For the investors, the funding arrangements should be clear and transparent (Kari, 2016). The PPC can support the SEO efforts, build awareness for new products, beat the rivals with search engine research page as well as create an online budget foundation. So, the investors would get clear information from ad scheduling and work accordingly. Moreover, the PPC tools likechange historycan get the past history,keyword plannercan plan campaigns,display plannercan organize the network campaigns so using PPC can offer Boo.com an integrated and concentrated business with profits. Budgetary dependencies: There are different ad work network where the cost depends on the key metrics. The most common metrics are the cost per click, click through rate, average ad position, conversion rate, invalid click rate etc. Moreover, the companies usually hire PPC experts and they can be added to the budgeting process (Hochman, 2017). There are also landing page development and lead cost for the overall planning of PPC. The value of the metrics varies with technological factors and user preferences. A recent statistics of the metric costs are given below.
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(Source: Hochman consultants) Relevant laws & guidelines: The PPC policy is considered as the set of rules and restrictions for a businessman to authenticate the PPC processes in the search engines. The policy includes the followings. â—ŹAffiliated campaign forms â—ŹMerchant, product and brand keywords with some conditions â—ŹRestrictions for used keywords â—ŹOutranking conditions for the business and offers â—ŹNegative keywords limitations (free, lowest price) â—ŹSome URL display or content display limitations â—ŹDirect linking and ad content strategies There are also both open and closed policies. The open policies cover the PPC commissions for the business while the closed policies approve the content information, PPC structure, and the related organizations. There are also different policies for affiliated and digital marketing. As an example,affiliatemarketingusesrulesforduplication,linkcloaking,newspaper,geo optimizationwhiledigitalmarketingusesrulesforinboundmarketing,recapturing,lead generation, visual content etc. In case of the search engines, the companies need approval for bidding using trademark and competitors terms. Moreover, the landing page deals with URL display, domain misspelling, geo-targeting, order, tax and exchange rate based rules. The advertisement copy restrictions deal with regulations like truthful advertisements, official site logo management etc (Digitalmarketing-glossary.com, 2014). In case of report violation, the companies can complain in the court under the intellectual property right section and the
penalties include blacklisting, monetary compensation etc. There are many companies with reserved right on digital content. Therefore copying the content can introduce exclusion, penalties, as well as alert notifications from the legal agencies and the companies. In the case of search engines the major regulations deal with cookie policy, opt-out cookie, self-regulation, opt- out tool, NAI, search privacy policy etc. Furthermore, the advertisements need to deal with the basic regulations of in-game advertising where some video features and content get restrictions in different geographical location. So, if the company is dealing with international markets and trying innovative marketing with games and videos than it has to consider these regulations. Again, there are direct linking policies including the bids and merchant pages. In this context, it is significant the favored conversions are only allowed for the affiliated websites. Considering all the above-mentioned rules the business environment can have an ethical process. 5. Email marketing: According to the case study, the company was focused on offline marketing but email marketing might have changed the scenario. First of all, the US and global market confirm that91%of adults are interested in receiving promotional emails from interesting companies (business or entertainment purposes). Moreover, the market research tools suggest that email marketing is40 timeseffective than social media sites like FaceBook, Instagram etc. According to businessmen and researchers emails are efficient to build credibility while sharing the informative and important content (Royle and Laing, 2014). Therefore, Boo.com could try this process in the initial stage to build the trust factor with the young generation instead of investing in costly PR campaigns. The case study also determined that Boo.com stakeholders had no future plans for informationmanagementandmarketingwheretheemailingtheinfluencers(required information) consistently might have generated the lead (the right person for communication) for marketing. As an example,Amazon, Walmartuse personalized email marketing tactics to attract and retain thetargetcustomers.Thepopularemaildesigntrendcoversthefeatureslikestrong narratives, storytelling, human language utilization, increasing message variation per customerinterestandscalingemailbuildingsystemviatemplate,snippetsetc.The marketing style is considered predictive marketing to build a permanent connection with the customers. As the web interface was great for Boo.com they should have tried to popularize the
same via progressive enhancement of contents, images in case of email marketing. This process is data-driven and creates segments for new subscribers. So,welcome email seriesfor each new consumer of site visitors (identified via organic sessions) could potentially have increased the customer base of Boo.com. Again, the emails might have links and buttons for opening, clicking, and conversions so that the customers feel connected all the time. This is an efficient engagement policy and the same could be improved if thespecial emailsin regular intervals offer attractive discounts, giftsfor the young generation. Finally, the same process could be applied for fundraising and sales-boosting for Boo.com. As an example, the popular Colorado SpaAllegria use these tactics (mailing when discounts come) to boost sales. Finally, theinteractive email with audio and video contentcould also help Boo.com. (Source: fulcrumtech)
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6. Analysis & management of digital marketing: The company should have used the ongoing digital marketing tools to manage and analyze the challenges in the way given below. Brand building: After the initial funding the company started allocating individual tasks without adequate recruitment. Here a digital analytics like Google analytics may have identified the roles and number of resources required before implementation. Moreover, there were 27 areas of management covering logistics, infrastructure, front-end applications, legal issues, and the website was tailored with local languages and currencies. Although the on-time delivery rates were achieved but the step by step predictions was missing. Herepay-per-click policy, keyword marketing, lead generationmight have given huge profits in every step with challenge prediction. As an example, if in France the keyword ranking would have gone below the list than the company should have taken data-driven decisions to improve the situation. Moreover, the fashion and sports brands had channel conflict whereSMM with its active strategymight have collected solutions from the users and investors in the open forums of the social sites. Again there were local and zonal pricing issues which might have solved by thecontent marketing (asking for solutions and drawing investor/influencer comments) and open webinar, chatting in the passive SMM strategy. Business case management: First of all the investors were confident with the $130 million while the business was worth $390 million so there was definitely communication issues. Moreover, the management team was disappointed to predict sales results, growth strategies where thecloud-based performance monitoringmight have helped (Ryan, 2016). Again, the company should have tried business analytics likeRetailnext, Backbase, Radius Networkto get correct predictions. Conclusion: The Boo.com case study confirms that poor digital marketing process and pressure of global brand positioning in a single month has led the failure of this unique business model. The sport retail aims were unique but the analytics and management were not sufficient to deal with the customer and stakeholder requirements. A proper SEO, SMM process might have confirmed the business flow long ago. It is surprising that an online company had a very poor idea about
conversion rate, site visits and the failure determines how important the digital marketing strategies are today.
References: Chaffey, D., 2015. Digital business and e-commerce management. Pearson Education Limited. Digitalmarketing-glossary.com. (2014). What is PPC policy for affiliates definition: The digital marketingglossary:illustratedtermsanddefinitions.[online]Availableat: http://www.digitalmarketing-glossary.com/What-is-PPC-policy-for-affiliates-definition. Hochman, J. (2017). The Cost of Pay-Per-Click (PPC) Advertising—Trends and Analysis - HochmanConsultants.[online]HochmanConsultants.Availableat: https://www.hochmanconsultants.com/cost-of-ppc-advertising/. Järvinen,J.andKarjaluoto,H.,2015.TheuseofWebanalyticsfordigitalmarketing performance measurement. Industrial Marketing Management, 50, pp.117-127. Kannan, P.K., 2017. Digital marketing: A framework, review, and research agenda. International Journal of Research in Marketing, 34(1), pp.22-45. Kari, M. (2016). Introducing Content Marketing for B2B: Case Study: Subcontracting. Nummela, N., Saarenketo, S. and Loane, S., 2016. The dynamics of failure in international new ventures: A case study of Finnish and Irish software companies. International Small Business Journal, 34(1), pp.51-69. Patrutiu-Baltes, L., 2016. Inbound Marketing-the most important digital marketing strategy. Bulletin of the Transilvania University of Brasov. Economic Sciences. Series V, 9(2), p.61. Royle, J. and Laing, A., 2014. The digital marketing skills gap: Developing a Digital Marketer Model for the communication industries. International Journal of Information Management, 34(2), pp.65-73. Ryan, D., 2016. Understanding digital marketing: marketing strategies for engaging the digital generation. Kogan Page Publishers. Websites: https://farotech.com/blog/how-does-ppc-work-a-beginners-guide-to-pay-per-click/ https://www.ppchero.com/ppc/ https://www.smartinsights.com/digital-marketing-strategy/online-marketing-mix/boo-com-case- study-a-classic-example-of-failed-ebusiness-strategy/ https://fulcrumtech.net/resources/top-10-trends-will-power-email-marketing-2018/
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