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UNIT 11 RP Assignment (DOC)

   

Added on  2020-12-10

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UNIT 11 RP

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1RESEARCH TOPIC........................................................................................................................1Topic............................................................................................................................................1Aim..............................................................................................................................................1Objective......................................................................................................................................1Significance.................................................................................................................................1LITERATURE REVIEW................................................................................................................2Importance of digital marketing on profits and sales of SME.....................................................2Positive and negative impact of digital marketing on SME........................................................3Recommendation on use of digital platform for marketing for improving profits of SME........5RESEARCH METHODOLOGY....................................................................................................5DATA COLLECTION....................................................................................................................7CONCLUSION................................................................................................................................7Recommendation.........................................................................................................................7Reflection.....................................................................................................................................8REFERENCES................................................................................................................................9APPENDIX....................................................................................................................................11

INTRODUCTIONDigital technology is very much important for accelerating and improving profitsfor firm so that they are able to grow and develop into prevailing marketing conditions orincreasing competition as well (What Is Digital Marketing, 2018). There are number of ways forfirm to get profits and increase into their sales but they must be trying to indulge more and morewith use of digital marketing. SME in UK are growing faster than big industries and contributinglarger share in GDP of company this is due to their use of technology and innovations inoperations as well. So this particular project will be based on exploring significance of digitalmarketing on profits and sales of SME within context of UK. For this assessment of importanceor significance of digital marketing within profits of firm The People’s Supermarket is beentaken which will help to conduct the research in proper manner.The People’s Supermarket was started in year 2010 by Arthur Dawson which is aimed atselling food at good and cheaper price to consumers and producers as well. This supermarket isbased upon concept of food cooperative under which the member will be contributing £25 asannual fee and giving at least 4 hours of a month working within store. For this these memberswill be getting 20% discount on their shopping in-store only.RESEARCH TOPICTopicThe implications of digital technologies on SMEAim To explore the significance of digital marketing on profits and sales of SME: A study onThe People’s Supermarket”ObjectiveTo study on importance of digital marketing on profits and sales of SMETo explore the positive and negative impact of digital marketing on SMETo provide recommendation on use of digital platform for marketing for improvingprofits of SMESignificanceAs in current time digital technology is very rapidly changing so its impact is also onbusiness operations and profits of firm. The companies are now performing very well as they areusing digital technology which is helping them to connect with their clients and customers on1

easier terms. So this project which is covering impact of digital technology on profits and salesof SME firm is very much significant for those who are studying the same topic in theirgraduation and post-graduation. The topic or research is also essential for those companies whichare SME’s so that they will be having knowledge that how much technology is helpful for them.Further for People’s Supermarket on which research is conducted this project is useful they couldgain knowledge about implementation and use of digital marketing.LITERATURE REVIEWImportance of digital marketing on profits and sales of SMEAccording to Taiminen and Karjaluoto, (2015) it could be included digital marketing isthat effort which will use all electronic device and internet within promoting and selling ofproducts of company. There are number of channels of digital marketing like that of email,search engines, website of company and social media platform which help firm to connect withtheir new or current customers. So the number of different tactics and channels which are usedby company to encompass spreading of their products and services to wider customer base willbe termed to as digital marketing.This digital marketing is very much essential for increasing profits and sales of SMEbusiness as this will support in achieving of long and short term goals of firm. As included byJärvinen and Karjaluoto, (2015) content marketing which is a form of marketing will help increating series of blog post that would be serving as generating profits. Digital transformationand growth of company will be using marketing plan which is developed to attain goal for firm.Thus it could be noted that with help of digital marketing growth options for small businesscould be easily opened (The impact of digital marketing on SME’S, 2018). This will bedepending upon method or channel that will be used by company and their reach for wideraudience that too at lesser cost. Further it could be included that Musa, Shibghatullah and Othman, (2016) conversionrate of customers if company is using digital technology will be higher than traditionalmarketing. Conversion rate is that percentage of visitor to website or social media channel ofcompany which is helping firm to complete their desired goal out of total number of visitors. Ifthe conversion rate is higher than this will indicate that marketing is successful and if it is lowthen this would mean that marketing done by company is not good. Within this also Kumar,2

Janakiraman and Kannan, (2016) indicated that content marketing is having the highest andgreatest impact on profits and sales of company among all other digital marketing. As per the view of Zaglia, Abfalter and Müller, (2015) for all firm and companieswhether they are working on small or large platform their priority will be their customers. So thisis with help of digital marketing it has been possible to connect and communicate with clientsand customers. It is worth noticing that all problems and grievance of customers are nowaddressed with use of social media. Like for example company could help customers to askabout products or service their use or any other type of issue if it is arising. With this it could be included by Jones, Borgman and Ulusoy, (2015) that if company isgetting themselves connected with all their customers with help of mobile or other online sourcesthan this will also ease their operations. Most of the companies are having their own mobileapplications which will allow customers to buy products and services online. If company ispromoting their brand and its products then it will be possible for them to increase profits andsales in coming time or year. It was included by Aslam and Karjaluoto, (2017) that digitalmarketing will allow all SME to be able to compete with a smaller budget of advertising. Butthey need to manage it effectively so that it could be giving them ability to have control overtheir spending of money so that they are been able to explore benefits or importance of digitalmarketing as well.Positive and negative impact of digital marketing on SMEAs it was included by Neirotti, Raguseo and Paolucci, (2016) positive impact of digitalmarketing is more than negative on the SME firm. The most important among the positiveimpact will be its increase in trust for branding among customers. If the brand of company ispresent into all or multiple platform then this will enable customers with wider options to ratetheir service with their level of experience. The customers are satisfied and are happy with whatcompany is giving them then this will allow them to leave a positive or favourable review forcompany. According to the view of Afrifa and Padachi, (2016) contacting with company throughhelp of social media page for way of resolving issue resolution or for other matters as well isvery much common. In the past time it could be included that all sort of budget allocation wasdone based on individual marketing medium but this is not familiar in this present times. Ifcompany is been digital then this would clearly mean that they will be having different way or3

access to variety of packages of costing. So from these company could be ready to select anykind which is just suiting their type of budget and even it could be done in small level ofinvestment. As per Ebitu, Ufot and Olom, (2015) noted that even if budget of company fordigital marketing is less or their investment is low then also it is very much easy for them todeliver best kind of results. If the company is using web analytics then it will be helpful for them to known whethertheir website is providing optimal level of Return on Investment (ROI) or not. Whereas it is alsonoted that website is not the only sources for generating revenue directly for company but ratherconversion rate of inquiries could also be made or allowed with help of telephone calls and emailthat are done for sales. It was also included that Hilmola, Hilletofth and Malmsten, (2015) digitalmarketing is very much cost effective as they will not be required to keep track on each thingseparately rather all things together could be analysed together. As the digital marketing will begiving them chance to reach out more number of customers that too within short span of timeand this will also be under their budget. While on other hand Aslam and Karjaluoto, (2017) indicate that there are alsomany side effect or negative impact on business of firm as well. The social media ROI and itsmeasurement is not that much easy for any firm to calculate properly as it become very difficultto measure it. As companies are much active on many online sites or social media campaign butthe major concern for them will be the complex procedure of measuring the ROI or return oninvestment from each investment made. there are many types of online tools like that of Twitteranalytics, Google, Facebook insights and Buffer which are meant to provide different types ofstatistics in way of understanding effectiveness of campaign which are made. It was alsoincluded by Jones, Borgman and Ulusoy, (2015) there are increased in chance of copyingcampaigns, products and even brand name by competitors of company. Thus digital marketingwill enable others to copy or replicate the products which are always considered to as negativeimpact of digital marketing on profit of company.In addition to this it could be included that company will be having less control on alltype of stuff or content which they are sharing on social media. There are number of users andcustomers who are interacting on social media on single post or tweet. So company will belosing its control over what customers are sharing on their own social media post that too aboutcompany. Janakiraman and Kannan, (2016) indicated that all type of negative comments or4

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