This report analyzes the importance of digital marketing for companies and how it enables strong brand value accomplishment. It explores the digital marketing landscape, key consumer trends, various digital tools, and compares digital marketing channels with physical channels.
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................3 LO1..................................................................................................................................................3 P1; Digital Marketing Landscape................................................................................................3 P2: Key Consumer Trends Fuelling Growth of Digital Marketing.............................................5 LO2..................................................................................................................................................6 P3: Various Digital Tools............................................................................................................6 P4: Comparison Between Digital Marketing Channels and Physical Channels..........................8 LO3..................................................................................................................................................9 P5: Digital Marketing Plan..........................................................................................................9 P6: Omni-Channel Marketing....................................................................................................11 LO4................................................................................................................................................12 P7: Measurement Techniques and Performance Matrix............................................................12 P8: Set of Action to Improve Performance................................................................................13 CONCLUSION..............................................................................................................................14 REFERENCES..............................................................................................................................15
INTRODUCTION Digital marketing refers to as one of the most integralcomponent of marketing that utilizes internet and digital technologies such as advanced computers, mobiles and social media platforms to promote business and services among consumers around the world.. This report analyses importance of digital marketing for companies and how they enable strong brand value accomplishment with completion of goals.Organizations use multiple channels with use of innovative technologies and machinery which enable them to analyse campaigns, content and strategies for promotion and business marketing campaigns. Sainsbury is one of the biggest retail brand in UK offering wide ranges of products and services to customers, along with many stores in internal boundaries.This report explains digital marketing landscape, its spread avenues and how it differentiates with offline marketing concepts for companies in operating their business structure.It also analyses the latest customer trends and insights which fuel the growth of digital marketing structures andtools that are available to marketers in contrast to bricks and mortar and physical channels. It explains development and importance of e-commerce for digital marketing platforms along with marketing plan along with formulation of business strategies to build multi channelcapabilities to expand in diversified sectors of world. This report also analyses how omni channel marketing has evolved as an innovative tool of marketing segmentation, in company business operations and also evaluates the performance metrics and measurement techniques in digital marketing, along with set of actions to improve performance in digital marketing. LO1 P1; Digital Marketing Landscape Digital marketing landscape can be understood as constantly evolving state of digital media platforms where social media, marketing through websites and innovative ideas to promote business ideas enable companies to build dynamic growth. Sainsbury is one of the biggest retail giant of UK having large number of stores in countries with large varieties of products and services. Digital marketing landscape has given large boost to customer market share for high quality shopping experience through internet and also wide categories of brands to choose their products from. It has largely brought world closer by giving high competitive growth to brands in industries on social media platforms and networking websites, where brands can reach to various segments of customers (Ali and Anbarasu, 2020).
Opportunities of digital marketing Sainsbury by digital marketing strategies position itself as strong brand among other competitors in industry as promotion of business activities and wide portfolio of products on company websites will enable customers to have high quality shopping experience. Online marketing concepts will provide sainsbury with wide promotional platforms to reach new segments of customers and expand its business scale. Digital marketing through online services allow company to deliver quick solutions to customers grievances and feedbacks regarding products quality and serve them with high efficiency standards. Sainsbury through digital marketing landscape can establish close contact with customers who have high loyalty towards brand to maintain good repurchase opportunities (Badre,2020). Digital marketing landscape has given boost to global business by enabling companies to build cost effective advertising channels and enhance accountability principle of business towards consumers.Sainsbury can establish brand promotion activities around the whole world, through social media advertising and websites services to enrich customers shopping experience and establish an easy reach to worldwide audience. Comparison of online and offline marketing concepts Online and offline marketing concepts varies largely on the percentage of consumers they are able to reach in market share. Offline marketing doesn't allow company to reach large segmentsofcustomersandhindersbusinessgrowthopportunities,whereasonline marketing concepts enable dynamic growth and promotional opportunities for companies. Brands can build strong image incompetitive global scenario where digital marketing promotion has large role to play in captivating market share (Kakalejčík, Bucko and Danko,2020). Online marketing concepts enable companies to expand their business scale dynamically in new sectors by advertisements and feedback services to customers on websites and shopping portals. Whereas offline markets limits the customer interaction for companies to only physical stores and hinders promotion of products and services. Offline market disables managers to increase business revenues as it is only limited to local customers and services are not up to mark due to less technology factor.
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P2: Key Consumer Trends Fuelling Growth of Digital Marketing The key consumer trends which has fuelled growth of digital marketing in Sainsburury can be understood as follows: Changing preferences for customers to have high innovation standards in products quality and services has fuelled digital marketing extensively, as there is high demand for efficient quick feedbacks along with delivery when people purchasethrough websites. Sainsbury's goals are to focus on keeping customers highly satisfied by delivering strong quality in all goods and maintain close connectivity with them through social media advertising activities (Kambil, Davis and Weinberg,2020). Customers are increasingly looking for online shopping avenues where they can have easy quick access to branded products where they can get complete content and details regrading company business values and what makes product unique. These trends have highly fuelled the growth of digital marketing into Sainsbury operational structure. Brands have high competition among each other to impact strong customer base where Saisnbury can gain competitive edge as brand gas already established goodwill among customers. Customers are increasingly active on social media and sites where they look for new brands and companies products with innovative products and reviews of previous buyers before purchasing. This trend has highly fuelled growth of digital marketing strategies by Sainsbury as it aims to be reach performance standards with efficiency long with maintain brand equity for long term in industry (Kankonkar and Desai,2020). Digital marketing has emerged as buzz word in global scenario where e-commerce has highly globalized the business scenario of all companies and how they reach to their customers. Business models are highly innovative due to digital marketing trends where companies are facing high competition to reach benchmarks in performance statements. Sainsbury aims to build high potentialities through digital marketing and promotional activities as it has large customers segments who have high loyalty towards brand products.Nectar card is loyalty card utilised by consumers who come for shopping at Sainsbury stores which helps to promote brand name and more the customers visit stores, higher the points are shown at Nectar card. Challenges of digital marketing
High capital investments-Digital marketing involves advanced technology usage and modernization in working structures of company which leads to high capital investments. Often it becomes hard for management to finance out the required capital as big retail giants have wide business goals to address and large uncertainty in operating through dynamic business world (Priya, 2020). Advertisements of limited products-Digital marketing also limits some products advertisements as it becomes hard for company to presentinnovative food items and food groceryfor example in their portfolios. Customer link and conversation is also limited to only onlineplatforms through internet where they can face internet access limitation and poor connectivity problems. Risk of hacking strategies-Hacking promotional strategies by competitors in industry is also challenge of digital marketing as promotional activities by brands can often create data theft issues. It becomes difficult for companies to keep control ion these factors as they are extensively out of control for management. Large advertisements on social media platforms also makes hard for companies top keep up with the latest changing trends and technology factors. LO2 P3: Various Digital Tools In today's digital world, marketers can make use of various digital tools and hardware to aid them in their marketing operations and market to a wider audience at the same time. Social mediaplatforms,onlinewebsites,dedicatedsmartphoneapplicationsetc.haveproved themselves to be of invaluable use to marketers in their quest to market effectively to as wide a customer base as possible. The internet has ushered in a new age for marketers and has opened their profession to new challenges, opportunities, threats and paradigms. What is even more influential is their ability to use these new technological marketing tools in order to generate revenue for the business by servicing customer's issues in a timely and efficient manner, growing their brand image online and running paid advertisements (Chaffey and Ellis-Chadwick, 2019). Use of these tools is also cheaper for the businesses as opposed to traditional marketing methods and results in decreased marketing costs as well which increases businesses profitability.
All marketers are familiar with the marketing mix which focuses primarily on the four P's that majorly affect marketing operations of any business. Use of digital tools and hardware by marketers also has a massive impact on the traditional four P's. Price:Marketing through digital platforms such as social media, online sites and smartphone applicationsreducesmarketingcostssignificantlyasopposedtotraditionalmethodsof marketing through pamphlets, magazines and radios, while addressing a greater number of clients simultaneously.Prices of food items at Sainsbury are relatively low in comparison to other store which helps in achieving strong market share and gaining customers goodwill due to affordability factor. Product:Using digital tools and hardware, marketers can showcase a wide variety of products to customers without actually having to bring the product to physical store and showcasing it. Digital tools have simplified product marketing and has helped marketers market to a huge numberof potentiallyinterestedcustomers.Theproductsfactorshavehigh featuresand innovative applications helps to gain large customer market, as 90 % people come in Sainsbury stores for buying their household supplies. Place:Using the current digital tools and hardware, marketers can advertise any product from any place in the world to any place in the world. This effectively solves major marketing problems which were caused due to geographical restrictions placed on the transport or sale of a product domestically (Kannan, 2017).Sainsbury are UK supermarkets which is strong place factor and has helped company to establish strong competitive place among consumers around the world. Promotion:The most significant use of digital tools and hardware to marketers is in the promotion and advertisement of products and services to potential clients. Not only can marketers now promote and advertise their products to anyone with an internet connection, they can now also focus their promotional efforts upon clients who are genuinely interested in the product, increasing their customer reach and marketing efficiency at the same time.Sainsbury has taken large steps to promote and keep the market highly pursued to its advantage which will help in gaining high profitability revenues. There are different types of digital tools, which marketers can make use of such as: Social Media:Marketers can make use of social media platforms to advertise their products globally to millions of people at minimal input costs.The various platforms on internet which are
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shopping portals and social media handles, through which company can gain high customer base goodwill among market share. Websites:Marketers can advertise and promote their products on the internet by creating a website. This website can also generate additional revenue by running paid ads. Smartphone Apps:Marketers can create smartphone applications to better advertise and promote their products to millions of smartphone users. Content Creators:Marketers can collaborate with multiple content creators online in order to effectively advertise products and services to a wider market, with the help of creator (Chaffey and Smith, 2017). Search Engine Optimisation:Marketers can better optimise online search engines in order to better connect potential customers to their required desired products.Search engine optimisation factors helps in gaining data on quantity and quality of people who come on Google and websites for gaining information on company services and the variety of products which are offered before public. P4: Comparison between Digital Marketing Channels and Physical Channels There are multiple significant differences between digital and physical channels of marketing. Digital MarketingPhysical Marketing Provides a wide reach of potential clients to marketers,notrestrictedbygeographical limitationswiththeoptiontoadvertiseto particularsectionsofmarketinorderto increase marketing efficiency. Provides a limited client base for marketers to advertise to. Geographical limitations do end up restricting physical marketing operations. Marketerscannotpromotetoparticular sections of the market in an effort to increase their marketing efficiency. Cost of marketing digitally is quite less as compared to traditional methods, as websites, socialmediaplatformsandsmartphone applicationsareallquitecheaptocreate, Costofmarketinginphysicalapproachis substantiallyhighascomparedtodigital alternatives. Face to face marketing has a high human cost whereas marketing through other
implement and market throughtraditionalmeanssuchasnewspapers, magazines, pamphlets, radio etc. all have high additional costs attached. High level of interaction is observed between potential customers and marketers using digital tools and hardware. Such interaction increases the chances of marketer to make the final sale. Low level of interaction is observed between potentialcustomersandmarketersusing traditional physical approach of marketing. A lot of marketing tasks can be outsourced to digital software that have been created to aid the functions of digital marketers (Kingsnorth, 2019). No marketing functions can be automated by themarketersusingtraditionalphysical channels, increasing their stress and decreasing their motivation levels. Digitalmarketingtrendschangevery frequently with marketers having to always be in the marketing circle to be notified of these changing trends to perform efficiently. Traditional marketing trends do not have the tendencytofluctuatelikedigitalmarketing trends do and can stay relevant for a long period of time. Digitalmarketingapproachisstillinits infancy with new breakthroughs and downfalls in marketing using digital tools happen very frequently. Traditional physical channel of marketing has been in operation for more than 100 years and hasbecomestablefieldwithmajor breakthroughs becoming a thing of the past. It is quite easy to damage brand reputation while marketing through digital platforms, as one small accidental mishap has the potential to reach millions of people. It is not as easy to damage brand reputation when marketing via traditional physical means as both the target audience is smaller and more steps are involved in marketing process (De Pelsmacker, Van Tilburg and Holthof, 2018). Using digitaltoolsandhardware to aidin marketing approach, marketers can collect and analyserelevantconsumerdatatoimprove theirmarketingoperationsandincrease efficiency. It is quite hard to collect and analyse relevant consumer data while marketing through the traditional physical marketing approach, unless additional resources are spent simply on data collection.
LO3 P5: Digital Marketing Plan A productive digital marketing plan for Sainsbury. Digital Marketing Plan Executive Summary This digital marketing campaign is created for Sainsbury. This plan includes various productive marketing strategies to company, which will help in attract lots of customers in market. Marketing Team of company should follow this plan in their operations. Aim:Gain large customer base in the retail industry. SMART Objectives Specific:It is a specific goal of company, because currently there is huge competition in retail industry. Measurable:Marketing team is able to measure value of this target by interacting with customers. Achievable:Company is able to achieve this target by using this productive digital marketing campaign. Realistic:Gain large customer base is a logical goal or aim of company. Time-Oriented:Company need to give some additional time to this plan for achieving decided target on time. STP Model Segmentation:Before implementation of this plan, marketing team of company need to divide their whole market in small market segments. Targeting:After segmentation, team should target customers on the basis of their age, income, interest, etc. With the support targeting, it'll able to save their lots of time and money. Positioning:At the end, team need to run their promotional activities through digital marketing (Malik, 2017). This is a stage where company aware to customers about their products and services. Market Analysis There are various internal and external factors of Sainsbury's business environment impact it in both terms positively or negatively. In this case, top-level management should use
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useful techniques to deal with these factors. 4Ps of Marketing Mix Product:Companyshouldproducesomespecificorexclusiveproductstoattractnew customers. Price:It needs to offer favourable prices in the market. Place:Marketing team need choose a specific place to run this marketing plan. Promotion:In promotional activities, team need to use those all useful digital marketing tools and gadgets. Budget Top-level management of Sainsbury should pass needed fund for its marketing team. Then team will able to run their digital marketing campaign through this fund (Helsen, 2019). A specific budget is too necessary to implement this plan in proper manner. Monitoring & Evaluation Marketing manager of company is responsible to supervise all activities which its team will run under this digital marketing campaign. This is very important task for manager to get positive results from this marketing campaign. P6: Omni-Channel Marketing Omni-channel marketing now one of the most marketing tool for the businesses, because with the help of omni-channel a company can easily attract lots of customers towards brand. Omni-channel is too useful for Sainsbury too, because it provides the best way to build large customer base in this digital time. The actual definition of omni-channel marketing is, a channel which companies uses to interact with their customers in respective market. Many times companies or businesses send promotional messages on customers' mobile number, email, social media etc. so this is type of marketing is also called omni-channel marketing (Juska, 2017). Currently most businesses taking huge advantages from this style of marketing. Each company always add this marketing tool in their digital marketing campaigns. Marketing team of this company should take advantage from this marketing strategy, in which it first needs to take contact numbers of customers when they come in their store to buy something. Then it needs to send promotional messages on those customers' numbers. It'll able to inform customers about their current discount and offers in stores through these promotional messages. This is a basic
way to take advantages from this strategy. There are some major roles and importance of omni- channel marketing has been mentioned below; Build Effective Brand Image:When any company use omni-channel marketing, then it'll able to build effective image of its brand in market. It provides facilities to companies for interacting with their customers. In this case, customers are like to buy products and services through those businesses or companies which has effective interaction values. Currently those businesses are achieving high success which like to interact with their customers through messages and emails. Then their good or brand image is automatically improving. That's why omni-channel marketing is important in build effective brand image. Motivate Customers for Buying:Omni-channel marketing help to company for motivating their employees to buy something. For example; Sainsbury sends a message to their all customers to inform their current offers and discount. In this case, this step of company will motive their employees to visit in its supermarkets or stores. This strategy is currently employing by many companies in their marketing campaigns. Improve Performance:This marketing strategy is important in attracting lots of customers, in which when a company attracts lots of customers then its performance will automatically improve (Birkett, 2017). Currently there is huge competition in retail industry, so with the support of this strategy Sainsbury is able to gain huge competitive advantage in this industry. This is a modern time, where almost all people have smart gadgets like; phones, tablets, laptops etc. In this case, omni-channel strategy gives facility to the company for building effective relationship with customers through these gadgets. These are some major points which shows the importance of omni-channel marketing in current time. LO4 P7: Measurement Techniques and Performance Matrix There are various measurement techniques and performance metrics available to Saisbury for measuring their digital marketing campaigns. Some major measurement techniques and performance metrics has discussed below; Web Traffic Sources:To measure performance of digital marketing, there is company need to analyse web traffic sources. Suppose company's official website shows number of people who visit on its site. In this case, marketing team of company can easily identify that how many people engaged through current digital marketing campaign. Mainly rush increase on sites only
on that time when company runs any digital marketing, in which marketing team enables to measure how much new people visit on site. Brand Awareness:Marketing team of company should ask random people about their brand in question form, like; you know about Sainsbury or not. If most customers will give answer is yes, the team can know that company people are aware about company (Kurnianti, Erfiana and Wijaya, 2019). On the other side, if people replied in no, then team will able to understand that, company has not effective brand awareness. This is another productive way for company to measure their performance of digital marketing. Social Media Ratings:Marketing team should properly check their rating on social media. Currently customers are able to show their satisfaction level towards company on social media. If people have given good ratings to company's products and services, in which team will able to know that digital marketing campaign is effective. On the other side, if people have given poor ratings to company on social media, then team will able to understand that digital marketing campaign is not much effective. Sainsbury is able to improve quality of their digital marketing campaign through this technique. Returning Visitors:Analysis of return visitors also help to marketing team for measuring performance of digital marketing. In this case, team should consider how much people again and again visiting on company's official website or social media handles (Kamal, 2016). If team get that some people are returning on site, then it'll able to know their current digital marketing campaign is productive. These are major measurement techniques and performance metrics which will help to companyinknowingtheirdigitalmarketingcampaigneffectiveornot.Currentlymost companies uses these same techniques and metrics to measure performance of their marketing campaigns. However, company need to give some additional time and cost when it use these techniques and metrics. P8: Set of Action to Improve Performance A productive set of actions to improve digital marketing campaign has been mentioned below. Sainsbury is really able to improve performance of its digital marketing campaign, if it'll implement such ways in their business environment which has mentioned below; Use Current Trends:This is the best way to marketing team of company for improving their digital marketing campaign. Reason is, most people relate with such things which
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currently trending in the market. Suppose, people currently like to use social media platforms (Clark, 2015). For example; Instagram, Facebook, Twitter, Snap-Chat etc. In this case, marketing team of company is responsible give first priority to these platforms for running their digital marketing campaigns. It should complete the market research to analyse what things currently trending in market. This way will really support to marketing team for improving their digital marketing campaign. Set Realistic Goals:Marketing team of Sainsbury need to set a realistic goal before starting its digital marketing campaign. Realistic goals are necessary to develop some logical marketing strategies. Otherwise, an unrealistic goal always runs full marketing campaign in improper channel. To set a realistic goal, team should complete market research, because a systematic market research inform team about there is growth opportunities has or not. In this case, set realistic goal is another way to marketing team for improving level of its digital marketing campaign. Analyse the Previous Activities:It is major responsibility of marketing team to learn from their previous digital marketing activities. No company can full run their marketing campaigns in systematic manner, because all companies makes little-bit mistakes in their marketing operations. In this case, these mistakes gives opportunities to companies learn how to avoid mistakes during any marketing campaign. Previous mistakes will help Sainsbury's marketing team too (Radovic, 2017). If team learn from previous mistakes, then it'll never repeat those mistakes in the future, so this is a very productive way to improve digital marketing campaign of company. These are some logical ways for marketing team of Sainsbury. Team should follow these ways in their current digital marketing campaign to make it more productive. CONCLUSION It can be concluded that with the support of digital marketing Sainsbury is able to gain large customer base in retail industry. Digital marketing provides opportunities to company for raising its market share in respective market. There is digital marketing is completely a part of online marketing, because it only operates on electronic tools and gadgets. Offline marketing is called traditional marketing which companies using form long time. There are various key tools and hardware available for company like; Smart phones, computers, laptops etc. These tools are very necessary for a marketing team to conduct its digital marketing campaign. Currently e-
commerce and digital marketing platforms are very popular in all around the world. Each business able to take huge advantages from these platforms. A productive digital marketing plan also has included above which help to company for attracting lots of customers in retail industry. This plan includes various marketing strategies which support to company in gaining huge competitiveadvantage.Omni-channelmarketingisalsoaperfectmarketingtoolfor organizations. Various measurement techniques and performance metrics has mentioned above which helpful in measuring current performance of marketing campaign. Lastly, marketing team of Sainsbury should follow some productive ways to improve performance of their digital marketing.
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