Digital Marketing Strategy and ROI Analysis

This assignment delves into the world of digital marketing, where the company aims to create a smart strategy that takes into account various aspects of SMART targets. The analysis reveals the importance of targeting, messaging, and channel strategies in covering the identified target market. A plan is proposed, including channel details, testing, and timing, along with budget allocation to ensure accurate spending in each channel. Additionally, the concept of ROI is explained in the context of perfect fit. References are provided from various sources, offering a comprehensive understanding of digital marketing and its applications.

Digital
Marketing Plan

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
SMART Campaign objectives................................................................................................1
Targeting, messaging and channelisation strategies...............................................................3
Digital Marketing Media Plan................................................................................................5
Budget Allocation and how it delivers against campaign objectives.....................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Digital marketing has been tremendously followed in every sector now-a-days. It requires
a business strategy analysis; SMART campaign goals are very crucial in such situation. Applying
the objectives in effectively and efficiently to achieve desired outcomes. Framed targets set
should be Specific, attainable, measurable, realistic and time-bound. They must possess all these
significant targets in their strategy. Targeting special segments and whole market to achieve
increased sales can be reached by formulating target, messaging and best channel strategies.
Segmentation is also followed by most of the retailers now-a-days. Perfect Fit, seller of women
shirts online. (Ryan, 2016) By having improved focus on broad choice of tailor made shirts the
customers are being targeted. Company is requiring a digital marketing plan through this report.
In the report, all the aspects regarding allocation and achieving the target and budget for the
company has been prepared. It has deeper insight on how smartly the strategy is prepared and
distribution channelisation has to be adopted by the company. In order to achieve the set targets
and acquiring increased customer share are the goals that are kept in mind while preparing this
report.
TASK
SMART Campaign objectives
Formulating a marketing plan with setting future aim it is useful to look over 'what is essential?'
Campaign strategy is the crossroads of objectives and internal capacity. Purpose is the first
element of campaign policy; they describe the desired outcome of an effort. As the goals are the
targets to achieve organisational goals. SMART objectives help the Organisation in assessing the
quality measures. SMART aspects must be measured for effective design of objectives. Perfect
fit has been intended to grab higher market share in 2017 3500 new customers are to be targeted
this year (Tiago and Veríssimo, 2014). To achieve the desired goal the store has to make the best
plan that has to be SMART.
The SMART objectives are:
 Specific: Objectives should be focused and clearly framed with motive of success. If the
expectations are on same level then the collective measures are need to be framed
effectively. Specific objectives are easier to measure. They should be clearly defined so
that they are understood by everybody, to know what the organisation is exactly trying to
accomplish. Otherwise, there would be double coverage among A-level trade
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publications. Perfect fit has a specific target to achieve digital channels that can better
support their acquisition targets. Though, they know they need to develop retention
strategies but current specific goal is to explore the digital channels.
 Measurable: To report progress the objectives should be measurable. Measurable is not
only quantitative but it can be qualitative. Social campaigns must be framed with an
focus on behavioural alteration or qualitative measurement. It allows to accomplish
objectives effectively for sustainable values. Measurable objectives let the organisation
define what efforts are required for effectively achieving intended targets. In given case
the organisation has measured its targets for future in qualitative and quantitative both
aspects. It has qualitative objective to grab high market share by digital marketing. The
quantitative is fixed in number 3500 new customers to be targeted this year. Additionally,
the retailer has allocated a budget of 30000 pounds, excluding catalogue costs and other
formed marketing activity.
 Achievable: Before developing a strategy, perfect fit is recommended to examine the
target market and expectations of consumers to avoid failure. Environment should be
diagnosed properly for resources availability and how to reach intended goals (Royle and
Laing, 2014). 'Is your goal attainable?' is the first question that organisation has to answer
before formulating strategies. If administration is not having resources for
accomplishment then it will impact the desirable values. Perfect fit has smartly planned
the objectives as it has healthier consumer backdrop and increased Internet-savvy
population. Increase in market share is to be achieved in year 2017, targeted 3500 new
consumers. Also, Perfect Fit is aiming to increase the Average order value (AOV) to 55
pounds from 50 pounds.
 Realistic: It definitely doesn't mean be pessimistic, clear idea should emerge as to what is
to be achieved and what could not be achieved. Perfect fit has targeted to reach 3500 new
customers are to be targeted, it should assess that it is possible to attain the increased
customer share. Realistic means that objectives should be in alignment with the
organisational mission and vision (Dodson, 2016.). Campaigns that do not aim to
promote non-profit’s true purpose in their targets results in confusion and distraction in
the minds of their employees.
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 Time-Bound: Campaign should have beginning and ending date, this keeps the
supporters motivated thus creating urgency in the campaign. Time-Bound is not only for
planning purpose but also for strategy implementation. Time Limit has to be adjusted that
the campaign unfolds. Perfect fit has smartly planned objectives and a limit has been set
by the company, that says to achieve digital channelisation and new customers by the end
of 2017. Though the main goal of the company right now is to investigate new digital
channels, thus it has allocated sufficient budget for the purpose. Another current target is
to increase the Average order value (AOV) by 5 pounds in 2017. Here also Perfect fit has
a time limit for the target achieving.
Overall objective of Perfect fit is smartly planned after taking into account the SMART
campaign objectives. It has Specific, measurable, achievable, realistic and time-bound, these
objectives are all covered in the future goals to be achieved and current goals in 2017.
Targeting, messaging and channelisation strategies.
Targeting Strategies: Targeting the segments is very crucial for Perfect fit at present. They are
dependent on consistent acquisition activities for a very long period. They are not much aware of
the customers about what they have bought and got. Such that, not receiving higher returns from
the marketing budget. Purpose of marketing evaluation and developing strategies is to choose
one or more segments to enter. For grabbing newcustomers, the company has to select one or
more market segments to enter (Ryan, 2014.). While selecting the segments company has to
make choice of whether they are going to be focussed on one or few segments or they are
planning to serve to the collective market. There are four generic strategies for marketing:
 Undifferentiated Marketing: In market, there are strong differences in customers’ traits.
Undifferentiated marketing is the sales growth strategy which overlooks market segment
differences one service or product are offered in the entire market. This is also called as
collective marketing. Additionally, Perfect fit can invest into developing separate
marketing mix for various segments. Sometimes it would outweigh the potential gains,
thus the company has to develop single marketing mix for whole market. Such strategies
are practised by those companies who lack customer knowledge.
Companies following collective market strategy significantly follow collective-market
philosophy. It sees market as one big market with no different segments. It assumes that all
individuals have similar needs and expectations from the company
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 Distinguished Marketing or Multi-Segment Marketing: When there are number of
potential markets being targeted, their segmentation should be done. So that specific
marketing mixes can be designed for each of the segment in order to appeal to or all of
the segments. Such strategy exploits the differences in marketing in the different
segments.
After following this marketing strategy, Perfect Fit can serve two or more market segments and
develop distinguished market strategies for each of them. It has prospective to generate increased
sales volume with increased profits and larger market share. However, this strategy requires
greater promotion, product design, manufacture, and inventory. Before deciding to select this
strategy, Perfect fit has to compare the pros and cons of differentiated marketing (David Stone,
and David Woodcock, 2014). The clothing market is clearly segmented, there are customers who
deamnd for quality and also willing for cheap clothing along witgh thw quality. . For few, price
and brand doesn't matter but for some it is only criteria.
 Massed targeting: This strategy is focused; many segments may be identified but the
company may not serve all of them. Some segments are just out of the line in accordance
with the company's business strengths. Here, the company may target one segment with
one marketing mix. Understanding the needs of customers’ specialized marketing mix is
designed. Concentrating resources and reaching the needs of narrowly circumscribed
market segments is more profitable than scattering resources over various segments. For
ex: Starbucks became successful by focusing exclusively on customers who were
demanding gourmet coffee products. Made-to-order Marketing: In some products individuals demand incomparable
products and their purchasing power is adequate to make designing an isolated marketing
mix. Many organisations produce products in accordance to various customers.
Company's representatives go to each custome and discuss face-to-face with them, their
necessities and tailor the products as per them. Also, Customized marketing is found in
the organisational markets because of high value of orders and special needs of
customers. It is related to the close relationships between provider and seeker because
high value orders satisfy larger market and efforts applied on each buyer.
Messaging Strategy: Initially, Perfect fit has to develop an advertising campaign to take the
marketing to next level. Digital marketing is selling of products offered using new technologies
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in digital market, broadly through internet and mobile phones, demonstration advertising and
another digital source (Gilmore, Gallagher and Henry, 2007). Messaging is another strategy that
company can follow to attract more customers. The best way to measure your current messaging
is to check at how systematically your organisation discuss about products. And compare it with
how current customers reviews on the product. Strategic messaging is communication
framework that Perfect fit can enjoy by interacting with its stakeholders. It's the extension of
company's long-term goals.
Channel Strategies: This strategy defines that how the products would be transported end
consumer through chain of trade. Producers of products and service providers have number of
channels available for distribution. To select best distribution channel, they require strategy.
Retail is opening of physical stores in the market to reach customers. Another strategy is
Camping that says positioning retail stores nearby to customers located. E-commerce is also a
channel strategy that is more effective, selling trough websites on internet such as applications
on mobiles.
Digital Marketing Media Plan
Digital marketing is a common term for all the efforts that company puts into marketing.
Businesses uses digital channels like Google search, social media, emails, and their own websites
to connect with their current and prospective customers. Because people spend more time online
as they use to before a decade. Marketing has always been close to connecting with customers
who are watching the advertisements, at right place and in right time (Li, Li, He, Ward and
Davies, 2011). At present, it means that provider requires meeting them where they are already
spending time: on the internet.
Different channels are available with Perfect fit:
 Electronic communication Marketing.
 Pay-Per-Click Advertising (PPC).
 Search Engine Optimization (SEO).
 Demonstration Advertising.
 Social Media Marketing (SMM).
 Contented Marketing.
 Associate Marketing.
 Online Public Relations.
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A survey has found that many businessmen have discovered t online websites, email marketing
are most effective tools in increasing sales in the industry. Today almost 79 percent of small
retailers use online trading on social sites. (Leeflang, Verhoef, Dahlström and Freundt, 2014.)
The Best digital marketing channels for Perfect fit are:
1. Company's own website
2. Electronic mail marketing
3. Search Engine Options
4. Social media
Below image depicts that why digital marketing is important nowadays. (Hypothetical, for
understanding purpose)
(Source: <http://www.interactivecleveland.com/blog/email-marketing/top-5-digital-
marketing-channels/>)
Own Website: It is the main gateway to the brand, because all the information regarding
company's product , and all the variants which cannot be kept in store are easily available. Most
of the companies start with an attractive websites and blogs as first step towards digital
marketing. As per above image it can be understood that websites are more attractive to
consumers. A website isolated can't render activity until there is an active system or advertising
in place to drive visitors to that website. Campaigns are also helpful in attracting them to the
websites, like an attractive campaign regarding blog on internet (Holliman and Rowley, 2014). It
can be done through advertisement as well. Still, Websites are the most effectual marketing tool
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or channel. Many businessmen attribute their success scales to their websites rather than their
promotional efforts that people have conducted.
Email-marketing: It is one of the most cost-effective marketing tools to reach the potential
customers and be in touch with them. Some retailers argue that social media is beginning to steal
few of the email’s thunder, it remains effective way to reach consumers doing right.
Unfortunately, some traders abuse this channel of distribution by sending repeated promotional
lists or worse used primarily email as traffic driver (Kingsnorth, 2016). It is strictly
recommended to Perfect fit not to email list as a secondary for confusing or bad website.
Search Engine Optimization: Many people are of opinion that SEO (Search engine
optimization) doesn't work. But it is not true, it works as the top marketing channel for growing
leads or sales. The idea may be due to fact that social media advertisements are free, whereas
SEO is expensive and needs an experienced person in search marketing. It is also a truth that,
good search marketing is not free or cheap. Social media is the path to improved search engine
performance with the correct strategy in place.
Social Media: It appears to be the gaining steam among all businessmen. Of course, because it is
free to use and set up a brand page with much ease on Facebook, Twitter, Instagram etc. It is
hard to judge which company is using social media to its full potential. While, most of the
traders are very active on social media. Most of the businesses would forget it if not prepared a
strategy and made a commitment to consumers. Perfect fit should ensure that company is
maximising its social presence and providing good consumer services through social media.
Further, company can also come up with seasonal offers through different digital
marketing channels. Like Summer sale, Winter discounts etc.
Budget Allocation and how it delivers against campaign objectives.
TASKS
BUDGET
ALLOCATION
Own Website 40.00%
SEO 10.00%
Pay-Per Click 10.00%
Email 5.00%
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Social Media 20.00%
Content Marketing 5.00%
Demo Advertising 10.00%
Above table shows the allocation of 30000 pounds that the company has allocated for
Digital marketing. Budget is important part of marketing strategy, it broadly gives overview of
all the costs that are associated with carrying out marketing activities including advertising,
branding etc. Preparing a budget helps the organisation to stick to plan and avoid unanticipated
costs, decreasing the possibility of overspending. Budget would provide road map to Perfect Fit
to how to spend in channelisation. Marketing budget is useful tools for all large and small
traders.
Own Website is the most crucial for the company, it has to spend more on that because
people prefer online purchasing now-a-days, rather than traditional big retail store (Ryan, 2014.).
Today most of the customers prefer buying online, because they do not have to go outside for
shopping. In order to make the website more attractive and known to consumers they have to
make efforts and spend more on website. Perfect fit is online retailer to generate higher profit it
has to increase the turnover and that's why promoting website is essential to it.
Another digital-marketing-channel that has to be maintained by the company is Social
media, more than half of population is using social networking sites. People spend most of their
leisure time on social media, creating pages and maintaining them by creating strategies for it is
recommended to firm.
 Average order value trails the average dollar amount spent every time when a place an
order on a mobile app or website. It is calculated by dividing total revenue by number of
orders. Below show table is showing increasing number of AOV in respect to fall in
number of orders.
Budget 30000
Orders
AOV (Average Order
Value)
600 50
588 51
576 52
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566 53
555 54
545 55
AOV is ascertained using sales per order, not sales to each consumer. Revenue from sales
are used to calculate the AOV but here hypothetically it has been calculated by amount kept
aside as budget. Though, one customer can make more than one purchase. It does not determine
gross profit or net profit for Perfect fit but the insight offers. Different prices or brands can be
reasons for fall in orders. AOV is a KPI that online trader measures to recognise their customers'
habits and preferences
 Return on Investment is performance criterion used to measure the ratio of efficiency of
an investment and comparing to various investments (Ryan, 2014.). ROI measures the
magnitude of return on an investment comparative to the cost incurred to it. To calculate
ROI, the profit (or return) from investment is divided by the cost of the investment, and
result is stated as a percentage or a ratio.
The formula for return on investment is = (*Profit from investment-Cost of
Investment)/Cost of Investment
*Here in above formula profit from investments is proceed from sales of investments.
ROI measures how much amount was made upon the amounts invested initially. Such formula is
significant to the organisation so that they would be able to understand the revenue generated.
Perfect fit has planned to invest in digital-marketing-channel, here comes ROI in the picture. The
company has to calculate ROI after generating sales for the period, it can be a month or quarter.
In order to determine that the budget prepared for channelisation has been correctly prepared or
not.
CONCLUSION
After going through this report, the reader will amplify understanding on how the
objectives of organisation can be smartly designed and achieved. The analysis of company's
business situation has revealed that the company has smartly created its strategy after keeping in
mind all the aspects of SMART targets. To cover identified target market, targeting, messaging
and channel strategies are significant to be prepared. A plan has included; channel details,
illustration of how they will be utilized, consolidation, testing and timing – supporting in the
seasonality. Allocation of budget set aside is made in order to accurately spend in each channel,
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to avoid overspending. Also, return on investment's concept is explained in brief in context of
Perfect fit through this report.
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