This document discusses the impact of PESTEL factors on digital marketing campaigns, the effectiveness of social web in building brands, and the integration of digital marketing with traditional marketing techniques. It focuses on the digital marketing campaign of Zara and provides recommendations for the company.
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Digital Marketing Strategy 1
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Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 Task 1 Impact of PESTEL factors on digital marketing campaign........................................3 Task 2 Evaluation of effectiveness of social web on building brands...................................6 Task 3 Integration of digital marketing with traditional marketing techniques.....................7 CONCLUSION................................................................................................................................9 REFERENCES..............................................................................................................................10 2
INTRODUCTION Digital marketing is the process of delivering marketing message to targeted audience through online medium. This is the fastest ever concept ever in business world. This is due to advantages provided by this process for an enterprise. Furthermore, there are certain limitations associated also with the process. These limitations come in picture due to impact of various external environmental factors on digital marketing. This report focus on digital marketing campaign of Zara. Report is divided in three segments, first part is completely focusing upon conducting PESTEL analysis on digital marketing. Second part discusses effectiveness of social webs in building brand image.Last part is determining concept of integration of traditional marketing medium with digital marketing methods. MAIN BODY Task 1 Impact of PESTEL factors on digital marketing campaign P1- Introduction of chosen organisation Zara is a Spanish apparel brand founded in 1975. it has its specialisation in fast fashion and its product portfolio includes clothing, accessories, shoes, swimwear, beauty and perfumes. This company is operating under the name of big brand “Inditex”. Company is managing to be number one in clothing industry every year. Behind immense success of the company, there lies effective and efficient marketing plan. Main component of this plan is digital marketing. Desired goal of digital strategy of Zara is to increase brand awareness for products of company. The main message content of the plan is that company offers high quality clothing products at very low value. Company targets segment of young adults and teenagers as they are much attracted to stylish clothing which is offered at low prices. Company is also offering kids clothing. The main channel of digital marketing used by company is social media. Various platforms used are Facebook, Twitter, Pinterest, Instagram, You Tube and Wanelo (Social media strategy of Zara, 2018). These all platforms are used by the company in order to target young adults and teenagers who are frequently using these social sites. There are various techniques used by company to promote the company in online mode. To illustrate, photo sharing contests are held (Chaffey and Smith, 2017). According to other strategy, customers liking posts of company will get discount in their next purchase. These advertisements are made in order to give a boost to sales and revenues of company. Company focuses on 3
updating every little detail about new arrivals on social media so as to attract customers. Customers winning different contests will be liable for gift cards. Company also adopt the policy of giving offers and discounts on their social media. These all activities are targeted towards one direction only and that is to give an increase in sales and revenues of company (Chaffey, 2019). P2- Impact of PESTEL analysis over digital marketing campaigns PESTEL analysis is a framework that inspects into the impact of external environment on the subject matter. PESTEL analysis is very important measure to study while starting any new activity (De Pelsmacker, Van Tilburg and Holthof, 2018). This becomes essential due to the reason that it covers overall inspection and will assist in devising effective policies and strategies. It has six dimensions, political studies any related matter which studies governmental relations with the subject matter. Secondly, it comes about economic factors, which is backbone of any country or business. If this measure is not calculated, than it may have long lasting impacts. Next comes up the social factors, it is one of the most important consideration as it relates with ultimate customers. If the strategy is formulated and it do not comply with needs and wants of customers than it will ultimately lead to failure of campaign. Technological factors are most important element in digital marketing campaign as it is totally based on technology and if it is not up to the mark, than it will obviously a heavy loss for the company. Other two considerations are legal and environmental segments. They also impact the digital marketing campaign in great manner, legal policies and laws surely should be followed so as to prevent any intervention in smooth operations of business. Environmental factors do not have a serious impact on this campaign as it is totally a online process and do not have serious relationship with natural surroundings (Kannan, 2017).It is very useful to conduct A PESTEL analysis prior to starting up any new venture of digital marketing campaign or if you have an existing business, has it would give you a strong indication on the impact the criterion have on your business depending on the industry you decide that you want to start up a business or currently operating, if you would require any legal or political standard that you will need to abide by and other important factors which can affect your start up or your business. This analysis provides a strong backbone for campaign on which it stands strongly and firmly. P3 Impact of political and legal factors Political factors:As the name suggests, it relates to the political situation of the hosting country. This refers to the effects that political situation can have on the success of 4
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campaign. To illustrate, if political situation in a country is not stable and there are regular riots and rifts in the society. Than it will obviously have an impact on internet access. This factor can result in complete failure of campaign. Legal factors:These elements relates to several legal policies and strategies. They will greatly impact the success or failure of digital marketing campaign in hosting country. These factors includes licensing laws, taxation laws, etc. in case of given situation, cyber security laws will have a great impact on success of campaign. P4 Impact of other external environmental factors on organisational digital campaign Environmentalfactors:Theseelementsdonothaveaseriouseffectondigital campaigns as they relate with the impact on natural environment and surrounding. As the digital campaigns are completely on online mode, therefore do not have serious impacts. Economical factors:These are the economic determinants of the country which are very essential to measure. This is important to analyse as economic condition is the backbone of any country. There are several factors that comes under this umbrella, such as, interest rates, fiscal policy, inflation rates, foreign exchange rates, etc. in context of digital marketing campaign, most important economic measure is level of disposable income of population residing in the hosting country. If disposable income is not high, than it means people are not having enough income to invest in these campaigns. Therefore, measuring related economic considerations is also important. Socialfactors:Thesearethegeneraldemographiccharacteristicsofsocietyand surroundings in which the campaign is being held. These elements have direct or indirect impact on success of subject matter. For example, needs and preferences of customers, age and gender features, lifestyle pattern, etc. These all factors have a great impact on the success of digital marketing campaign. To illustrate, digital campaign is being done in country where the average age group is of old generation, those do not have a frequent access to these digital platforms. This will directly result in failure of campaign. Technological factors:Technology is the most growing concept in today's busienss world. Every thing is getting automated an in online mode. Therefore, it is important to analyse technological capabilities of hosting country. This is important so as to design digital marketing plan in an efficient and effective manner. For example, if a country is not having much advanced technology and company launches a high techno savvy 5
digital marketing campaign in that place, than it will ultimately result in a great fault (Taiminen and Karjaluoto, 2015). P9 Recommendations This part states different avocations for chosen company, i.e., Zara. The company currently is not focusing much on its marketing plans. Rather, it is focusing upon investing into opening of new stores around the globe. After making appropriate studies in above parts, it is recommended to company that it should focus more on digital marketing plan. To devise these plans, company should analyse effects of different external environmental factors on the campaign. If proper analyses are not done, it may lead to fatal issues and it can create a havoc in organisation. Furthermore, it is important to state that company should understand the need of digital marketing by studying benefits of this program. Task 2 Evaluation of effectiveness of social web on building brands P1 Explain social media platform. Social media platform is use in digital marketing which helps company to connect with its target audience in order to build its brand, increase its sales volume and attract traffic on website. This helps in publishing good quality content on the social media profile of the company(Świeczak,2017). Socialwed helpsin buildingrelationshipswithitspotential customers and establishes the interaction with the help of internet, websites and the system which is specially design for communication. Brand is the symbol, name or logo that defines the company that is helps in differentiating one company from other. In context of Zara it is using social web to create brand awarenessthat is by using visual content it is making people aware about its new products in order to attract them and to increase the brand awareness. As people spend most of their time on various social media channels so with the use of quality visual content Zara, is attracting potential customers. Moreover the brand has develop its unique personality and voice which has helped in reflecting there brand and has helped in gaining large number of followers. Furthermore they are posting different visual content on various social media platform on the bases of their popularity. P2 Evaluate and explain how organisation is using social web to create, maintain brand awareness and brand loyalty. In context of Zara, they are using various popular social media platform that is Facebook, twitter, Instagram and YouTube. The company focus on building strong customer relation and to 6
satisfy the customers by providing quality and fashionable product to its customers. With the use of visual content they are making it's customer aware about its new range of products. The company is highly dependent on visual factors and with the help of designer cloths which models wear to attract the customers. The company by providing high quality and trendy cloths has established its brand name in marketplace and with the help of popular social media platforms it is engaging its customers (Wedel and Kannan, 2016). Moreover by providing season end discount and sale to its customer they are able to attract large number of potential customers. P3 Evaluate and conclude the effectiveness of using social wed in order to create brand awareness. In context of Zara, they are using various social media platform in order to inform customersabout itsnew collectionsand on going discountopportunitiesto itspotential customers. The use of social media has helped in reaching to mass audience just with one post on various social platform. Thus it has helped in saving the time and affords of the company and also helped in influencing the large number of customers. Moreover they are using right social media platform as their target audience is youth and they mostly spend their time on various social media platform. Hence by choosing the right platform and by creating authentic high quality visual content they are able to attract more number of customers. Moreover on regular bases they post content on various social media platforms in order to engage and provide information to its potential customers. Task 3 Integration of digital marketing with traditional marketing techniques Digital marketing refers to the process of conveying marketed message to targeted audience through digital platform. This technique is very much suitable for today's techno savvy environment and also proves to be very accurate in delivering message. Traditional marketing refers to the process of delivering marketing message in old forms, such as, television ads, billboards, etc. These all techniques are one way communication methods and do not involve any communication from receiver end. In today's world of cut throat competition, using only one way of promotion is not enough, therefore, there is need of adopting a combination of both traditional as well as digital methods. Importance of combination of both techniques can be explained as – both platforms offers different results and also they depend on the product or service which is being offered (Yeow, Soh and Hansen, 2018). It is common concept, that if company wants to generate 7
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effective and best results, it is recommended that it should use a mix of both platforms. The most vital benefit of using both the methods together is that it covers a wider range of audience. This means, that a mix of both techniques attract audience in access of digital method and audience having access of traditional mediums also. Traditional medium will the gap where the digital methods will not be able to gain the recognition. The trick of incorporating both online and offline marketing methods is to tie all marketing efforts together.When a company comes up with a marketing campaign, they need to ensure that they are gaining the customer’s attention, like with online and social media ads, then retaining that attention, like with promotional coupons or billboard ads they see on their daily drive. Incorporating both marketing methods that tie together to send the customer through the sales funnel will provide businesses with the best conversion and sales results (Banerji, 2018). Advantages of digital marketing: This method provides a speed to the business so as to match with the pace of dynamically changing environment of today's business world. It provides business with an edge of reaching a wider range of targeted audience in more accurate manner. Another main benefit with this technique is that it is easily accessible from any where and at any time. It removes geographical and time barrier. Collection of data in this medium is far easy and also accurate as it is performed on real time basis and also includes two way communication. Disadvantages of digital marketing: Easy to get left behind by the ever-evolving technologies and techniques Hard to gain visibility Can be time-consuming (consistent content creation) Places you under immediate and public scrutiny (negative comments) Advantages of traditional marketing: It is a well known fact that this medium of marketing is has a higher rate of success and also it has a reach for people having less access to internet. They provide promotion to consumers who have less access to internet. 8
This is a more personal approach for audience and have more frequent face to face interaction and thus, establish good relationship with customers. It has a long lasting impact on memory of targeted audience. Dis advantages of traditional marketing: In this method, promotions are not targeting any specific segment, they are open for all. Cost associated with these methods are having very high rates. Tracking and further monitoring and controlling is very difficult in these methods as they are not targeting to any specific segment (Galan-Ladero and Galera-Casquet, 2019). Structures are very complex in this marketing plan and communication becomes difficult in several level of hierarchy. CONCLUSION In this report, it can be concluded that due to proliferation of technology in business world, there is increased trend of digital marketing. The main aim of this medium is to cover a wider areas of targeted audience. There are several other benefits of this mode and also it is to be noticed that company can use a combination of both, digital and traditional methods of marketing. According to different facts discussed in above report, it is clearly visible that digital marketing is contributing in great manner in success of organisation. 9
REFERENCES Books and Journals Banerji, J., 2018. Impact of digital marketing on consumer behaviour.Mangalmay Journal of Management & Technology.8(1). pp.65-71. Chaffey, D. and Smith, P.R., 2017. Digital marketing excellence: planning, optimizing and integrating online marketing. Taylor & Francis. Chaffey, D., 2019. Digital marketing. Pearson UK. De Pelsmacker, P., Van Tilburg, S. and Holthof, C., 2018. Digital marketing strategies, online reviews and hotel performance. International Journal of Hospitality Management. 72. pp.47-55. Galan-Ladero, M.M. and Galera-Casquet, C., 2019. Corporate Social Responsibility and Digital Tools:TheCause-RelatedMarketingCase.InHandbookofResearchon Entrepreneurship and Marketing for Global Reach in the Digital Economy(pp. 1-16). IGI Global. Kannan, P.K., 2017. Digital marketing: A framework, review and research agenda. International Journal of Research in Marketing. 34(1). pp.22-45. Świeczak, W., 2017. The impact of modern technology on changing marketing actions in organisations. Marketing 4.0.Marketing of Scientific and Research Organizations.26(4). pp.161-186. Taiminen, H.M. and Karjaluoto, H., 2015. The usage of digital marketing channels in SMEs. Journal of Small Business and Enterprise Development. Wedel, M. and Kannan, P.K., 2016. Marketing analytics for data-rich environments.Journal of Marketing.80(6). pp.97-121. Yeow, A., Soh, C. and Hansen, R., 2018. Aligning with new digital strategy: A dynamic capabilities approach.The Journal of Strategic Information Systems.27(1). pp.43-58. Online SocialmediastrategyofZara.2018.[Online].Available through:<https://blog.unmetric.com/social-media-strategy-zara> 10