Table of Contents INTRODUCTION...........................................................................................................................1 Part 1................................................................................................................................................1 1. An overview of the digital marketing and comparison of online and offline marketing concepts and analyse the factors that contributing digital marketing growth.............................1 2. Analyse the challenges Zalando might have to face while switching to digital marketing....2 3. Assess and critically analyse the key digital tools & platforms available to marketers as compare to physical channels......................................................................................................3 4. Examine & critically analyse the digital marketing landscape and the impact of the growth of e-commerce.............................................................................................................................4 5. An explanation of how and why omni-channel marketing has developed.............................5 Part 2................................................................................................................................................5 1. Develop a coherent and logical digital marketing strategy and determine its implications. Generate an actionable measurement framework that can be applied in context of Zalando.....5 2. Justification of the chosen multi-channel capabilities to be used, and how they will optimise consumer engagement and return on investment (ROI).............................................................7 3. Using data to inform and develop customised and personalised products and services.........7 4. Actions to be implemented to improve effectiveness of digital marketing using performance metrics and critically evaluate it.................................................................................................7 CONCLUSION................................................................................................................................8 REFERENCES................................................................................................................................9
INTRODUCTION Digital marketing can be referred to as the process by way of which a company is able to carry out marketing in an effective manner through the utilisation of internet and other kinds of online technologies. These online technologies include mobile phone, digital platforms & media, desktop computers and so on which are capitalised upon by an entity for the purpose of promotion of organisational offerings in market place among the customers. Digital marketing enables a brand to enhance its reach among the people prevailing in the global market place. Now, the current project is carried out to gain knowledge of the process of digital marketing and the concepts linked to it by way of considering Zalando as the organisation for analysis. Zalando is a company operating in e-commerce sector, and having its headquarters situated within the bounds of Berlin, Germany, Europe. The organisation is known to follow a platform approach, whereby the fashion and other kinds of lifestyle products are offered to the customers across the globe within 17 markets of Europe. The project is divided into 2 parts. The first part consists of discussion about digital marketing along with challenges faced by companies while changing to digital marketing. Besides this, it includes critique of key digital platforms and tools as against physical channels. In addition to this, the evolution of omni channel marketing has been discussed herein. The second part encompasses the digital marketing strategy along with its implications for the company. Also, it consists of selection of multi channel capabilities along with the manner in which it streamlined customer engagement and ROI. Furthermore, it constitutes actions which can be executed for improvement of effectiveness of digital marketing via the usage of performance metrics and their critical evaluation. Lastly, data will be leveraged for informing and developing personalised & customised offerings for the company. Part 1 1. An overview of the digital marketing and comparison of online and offline marketing concepts and analyse the factors that contributing digital marketing growth Digital marketing can be defined as the marketing activity which is carried out by virtue of digital platforms and tools, internet, online tools and automation. With the passage of time, digitalisationhastransformedeverysphereoflife.Ithasevendigitalisedthebusiness organisations and empowered the corporations to make use of digital media and tools in order to 1
reach out to large base of audience across the globe. This helps the company in elevating its revenues and profits in the long run to ensure attainment of a competitive edge over the rival firms in the same industry. It even leads to acceleration of business efficiency and productivity levels of employees as well as the company as a whole. Besides this, marketing is mainly said to be composed of two concepts, namely, offline and online. With the help of these concepts, an organisation is able to expand its customer reach, thereby enhancing the scope of earning higher revenues. Now, with respect to offline marketing, it has been determined that this is mainly concerned with the procedure of creating brand awareness by reaching out to target audience and consequently increasing the volume of sales within a given period of time. Some of the most common tools and media which are put to use for the purpose of carrying out offline marketing include newspaper, radio, TV, banner, poster, pamphlet, brochure, and so on. Opposed to offline marketing, online marketing is also referred to as digital marketing or internet marketing. Hereby, all the promotional activities and practices of an organisation take place over the internet or with the help of online tools. In this relation, the tools and media that are leveraged for carrying out online marketing encompass video blogs, SEO marketing, webpages, social media platforms, email marketing, online ads, audio blogs, e- brochures, and many more. Now, Zalando uses both, online and offline marketing to reach out to maximum number of individuals prevailing within the global market place. The main factors which contribute towards digital marketing growth are acknowledged to be internet, technology and time. An entity is able to save time by leveraging internet and emergent technologies to gain growth by way of digital marketing. 2.Analyse the challenges Zalando might have to face while switching to digital marketing Zalando makes use of online as well as offline marketing to reach out to the potential audience which it seeks to target. The company encountered several challenges while switching from offline marketing to digital marketing. These challenges are described in a brief manner as follows:- Creatingsuccessfulreferrals:Thisisidentifiedasoneofthemostsignificant difficulties that isencountered by Zalando while switching as this is the most important aspect in digital marketing. In this manner, obtaining the attention of clients by creation of successful referral is a significant challenge for Zalando. 2
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Producing traffic:It is considered as another big hurdle that was faced by Zalando while altering its marketing approach to digital marketing. Digital marketing is regarded to be impactful and progressive when it is able to pull the attention of large number of individual and thereby generate traffic upon the website or mobile application. For generation of traffic, Zalando focussed upon the quality of its offerings and the fulfilment of all the promises made at the time of marketing via the products. However, initially this was one of the major challenges faced by the e-commerce organisation while opting digital marketing. Legitimate utilization of technology:Digital marketing is an expansive concept which is concerned with the selection of optimal media or channels for the promotion of products and services of an entity. This was another challenge that was encountered by Zalando while making the switch to digital marketing. The options available to Zalando were SEO marketing, social media platforms, search engines, website, mobile application, and so on. Out of these, the respective e-commerce company made use of its fashion app to offer its high quality products to the customers across the globe, thereby augmenting the sales and margins. M1: The opportunities which facing the digital marketing landscape: The company has various opportunities for digital marketing landscape it helps its for higher brand value which helps for better performance for the business. It helps company for the higher sales for its better brand value which helps for higher profitability for the businesses. 3.Assess and critically analyse the key digital tools & platforms available to marketers as compare to physical channels Digital tools can be defined as the tools that can only be leveraged with the help of internet and technology. On the other hand, physical channels can be deciphered as the offline tools or media which are used by the companies for reaching out to public at large. These include channels such as wholesalers, retailers, and many more. Given beneath is the assessment and critical analysis of digital tools as against the physical channels:- Merits of Key Digital ToolsDemerits of Physical Channels The companycan target the maximum number of customer as these tools have the potential of reaching out to local and international customers. Thereachofphysicalchannelsis limited as against the digital tools and platforms. 3
Digital tools and platforms are relatively costeffectiveascomparedtothe physicalchannelsandevenleadto savings of time. Marketing by way of physical channels is an expensive process. Demerits of Key Digital ToolsMerits of Physical Channels Thebiggestdemeritofusingdigital toolsistheconcernsassociatedwith privacy as well as security. Another demerit linked to digital tools and platformsisidentifiedto be the extensivecompetitionbetweenthe companies that make use of these tools. The physical channels are trusted by the customers as they do not possess threatsorconcernslinkedwith security, confidentiality and privacy. The competition in relation to physical channelsisrelativelylesseras comparedtothedigitaltoolsand platforms. 4.Examine & critically analyse the digital marketing landscape and the impact of the growth of e-commerce Digital marketing includes the marketing of the product and services by digital platforms like internet. Digital marketing landscape is a man created space for digital marketing includes different kind of marketing as social-media, pay per click, google search engines, optimised search, email marketing and many more. 4
E-commerce or electronic commerce and that defines the online services where company buy and sale there product and services on the internet services or other techniques as well like emailing. E-commerce measures the growth as people get attracts towards the web portals and other online platforms. Customers gets the update of all the things on there phone and there is no need to go on shops and stores to get to know about the different schemes of any Zalando (E- commerce in the UK-statistics and facts,2019).There are several impacts of growth of e- commerce as UK had the third largest e-commerce market that are defined as below as: Lower the cost:As to start the business that takes the lot of capital cost but due to e- commerce that cost is reduced. E-commerce is the been maintained with the lowest investment as well thus Zalando also gets the positive impact of that and they balance there inventory on the basis of customer requirement and demand. Elimination of mediators:As by using the online platforms company is direct in contact with the customers and doesn't need any mediator to transfer there product and services. Thus there is no requirement of the substitute that transfer there schemes and changes to the market. These are some of the factors under which Zalando measures the success and growth as it is a e-commercebusinessthus there whole business dependsupon the digitalplatforms (Galipoglu, 2018). Thus the growth of e-commerce has the positive impact on the success and growth of Zalando. M2: Critically analyse the use for digital tools hardware, software for use for the company for meet their marketing needs: Digital technology helps company's for their marketing which helps for higher sales. Company use digital marketing tools for its branding which helps for its sales. Company'suse digital marketing for better performance which helps for higher profitability for the businesses. 5.An explanation of how and why omni-channel marketing has developed Omni-channel marketing is an integrated approach that provide leniency to the customer to purchase the product from any of the channel includes the phone, desktop and the brick-and- motor store. It is used by the Zalando to maintains the focus on the customers need and wants that builds the unified brand image and value in the market. As customers are omni-channel and they are choosing different source of the digital marketing thus it has been developed by Zalando and consist several steps like first they get to 5
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know about the need and demand of the customers and analyse the complete prospects of the market. After that apply several techniques by which they connect to the customers like making advertisement, creative pamphlets etc. Then targets the segmented customers after that get the experience of the customers and then spread that experience to the omni-channel by which people get to know more about the product and services of the Zalando(Hanlon, 2019). Omni-channel has been developed as people get more adverse about there choice of digital platform thus it developed to provide the easiness for the customers as they get the same service from all the platforms and get the same experience from every digital channels. This has been developed to provide the cohesive and seamless services to the customers. Part 2 1. Develop a coherent and logical digital marketing strategy and determine its implications. Generate an actionable measurement framework that can be applied in context of Zalando Zalando uses digital marketing strategy to enter into the new market as they sell 1500 internationalbrandsandlocalisedbrandaswellthatincludesdifferentfashion,culture, payments, strategies that varies from country to country(Kingsnorth, 2019). Thus the digital marketing strategy takes the best decision at the right time that makes the company successful in terms of success. The digital marketing plan for trendy fashionable clothes is as follows: Vision: To make the world not only fashionable but also sustainable. Mission: As a e-commerce business produce more fashionable products that leads the success of the company. Marketing objectives:To promote there product and services by which they get “ real dispensable relationship” with the customers from where people start there fashion and end there fashion too. Situational Analysis:As per the competition of the market Zalando develops certain marketing strategies for to measure the growth. Strengths:As UK is the most developed and modern country thus people always gets attracted towards the new and trendy clothes. Customers also look for the trendy clothes that is affordable in price thus Zalando also introduce the fashionable and trendy clothes that attracts the large customer base. 6
Weaknesses: The major weakness of Zalando is as they have less amount of capital as online retailing doesn't have the high revenues. And due to Brexit there business is suffers the economic crisis and to measure that is the biggest issue. Opportunities:Zalando expends there business to other markets as like Sweden and Denmark and they are also be more developed thus they accept the different fashionable trends with that Zalando measures the growth. Threats:There are other company as well like eBay and ASOS that also produces the trendy and branded clothes that is the biggest competition of the Zalando. Marketing strategies:Zalando joins global fashion agenda with VF corporation as a associate partners to enhance the sale and increase the brand value and image. Social-media marketing: It is an effective and efficient tool that is used by the Zalando to attracts the large number of customers and it makes the direct contact with the customers by which they get the direct feedback as well and implement the changes according tothe need (McCabe, 2018). Target market: Zalando targets the age group of 18-35 as these group people get attracts towards the fashionable clothes and accepts the different fashionable trends in the market. Zalando measured there actionable framework by the follows tools and techniques are as: Key performance Indicator:It is a technique used by Zalando that shows the enhanced performance as compared to the set standard. As company set the standard as compare to the other best performed industry and then make some strategies by which they achieve that set target. As per the context of digital marketing Zalando sets the standard as per there competitor as eBay and ASOS. This framework is used as it differentiated between what company has to what company has achieved. Measurable Metrics: It is a matrix that is used by the Zalando to measure the effectiveness of the digital marketing strategies that is used by company. This matrix includes cost per click, absenteeism rate, overtime hours, sales and delivery time. It is one of the most beneficial metrics as defines the current situation of the company(O'Shea, 2018). 7
2.Justification of the chosen multi-channel capabilities to be used, and how they will optimise consumer engagement and return on investment (ROI) Multi-channel capabilities means that company uses different channel to get in contact with the customers. With that Zalando applies same strategies to all the digital platform to enhance the productivity. The major goal of multi-channel is to provide the choice to the customers to buy the product at any time whenever and wherever they want. Zalando optimised the customer engagement by using multi-channel marketing strategies as through this company reaches to the customer at the right time and right place exactly at the time of requirement. By applying various strategies like email, SMS, social-media etc. and with that company also focuses on the approach of customer and thus it optimise the engagement of the customers(Rohm, 2019). Zalando optimised the return on investment as by multi-channel company is in contact with the customers at every platforms and that enhance the customer engagement, that increase the customer base by which there is a development of the brand image and value in the market. That all factor increase the sale of the Zalando thus they get the best return of there investment. M3: The tools, techniques which are plans for omni channel marketing campaigns: Theomnichannelmarketingtoolsprovidesopportunitiesforthecustomersfor purchasing goods, services they purchase goods where they wants it will helps company for their sales which helps for better performance which helps for higher profitability for the businesses. 3.Using data to inform and develop customised and personalised products and services Zalando is operating their business in digital and information technology sector through managing different methods that is used by organisation to gain sustainable advantage in market. Their are several ways are also used by companies which leads companies to gain top position by improvingperformanceoforganisation.Somestateofactionsthatareimplementedby organisation is as follow: Customer related services-In present scenario buyers or consumer are most essential part of a market because all companies sold their products to customers for increasing their profits. So with digital marketing it is easy to understand whole market and then to select a specific market and target group of persons to fulfil needs of customers at large level(Saura, 2019). Customer oriented-With the help of digital technology majority of companies are performing their work at global level. This refers it is essential for management to increase their 8
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sale of profits by satisfying needs of customers in effective manner. From point view of Zalando data and digital technology used by management to understand recent years information due to which new products and services are designed as per customer perspective. Buying methods-All techniques which are related with digital marketing is used by Zalando to identify needs of customers for preparing products as per customer expectations. Along with this by implementing new digital techniques and software quality of products is also checked by management within limited period by using updated software machines. 4. Actions to be implemented to improve effectiveness of digital marketing using performance metrics and critically evaluate it Online marketing refers to complete all work through utilising various channel with point of developing an effective shopping experience for customers. In simple terms Zalando utilise all techniques and channels with motive of generating better experience for buyers. This is also used by entrepreneurs to attract more number of customer for increasing market size. Moreover, personalised products is beneficial for designing products and services as one to one marketing channel through offering content as an individual entity. Enhancement in revenue-Their are various task will be performed by management to increase sale of products and profits. It determines that personalised products is an effective technique for increasing demand of commodity and services by satisfying customers needs. So digital tools is one of most effective techniques that is used by management to increase revenue for firms(Sharmila, 2018). Moreover, social media tools and website is used by management for engaging customers in products due to which it is easy for Zalando to design products and services as per customers needs and wants. Further, with virtual images it is recognised that is it possible to develop product in practical way or not. Formulation of website-Marketing is most effective term that is used by management to complete their work within effective manner. Affiliate marketing, E-commerce platform and digital advertisement are some essential techniques which is used by management to design marketing techniques through generating better work fields for management that results for developing better marketing strategy for all operations and functions that boost sales of products and services. Along with this it is also used to collect data by monitoring clicks on company website. 9
M4: Critically evaluate the key digital techniques & performance metrics which are use for company's digital marketing: Company's has digital marketing tools for its marketing which are includes gmail, sites, social media etc. These tools helps company for its brand value which helps for higher sales. These tools helps for better performance which helps for higher profitability for the businesses. CONCLUSION On the basis of above discussion, it can be comprehensively inferred that digital marketing acts as the route map for the companies to inflate their reach in the global market place. This allows the corporations to elevate their financial performance in the long run, in an effective manner by way of increasing their revenues and profits. Besides this, it has been determined that there are online and offline channels of marketing which can be leveraged by an entity to appeal to the tech friendly and non tech friendly audience. In addition to this, the passage of time has given rise to the emergence of omni channel marketing. This is an integrated approach to marketing which enables a firm to make use of more than two channels of marketing in a bid to effectively reach out to the potential leads. 10
REFERENCES Books and Journals Alvermann, D. E. and Sanders, R. K., 2019. Adolescent literacy in a digital world.The international encyclopedia of media literacy, pp.1-6. Bala, M. and Verma, D., 2018. A critical review of digital marketing.International Journal of Management, IT and Engineering.8(10). pp.321-339. Cao, H., 2018. The growth of e-commerce and its impact on the fast fashion retailers. Chaffey, D. and Ellis-Chadwick, F., 2019.Digital marketing. Pearson UK. Chaffey, D. and et. al., 2019.Digital business and e-commerce management. Pearson UK. Galipoglu, E. and et. al., 2018. Omni-channel retailing research–state of the art and intellectual foundation.International Journal of Physical Distribution & Logistics Management. Hanlon, A., 2019.Digital Marketing: Strategic Planning & Integration. SAGE Publications Limited. Kingsnorth, S., 2019.Digital marketing strategy: an integrated approach to online marketing. Kogan Page Publishers. McCabe, M. B. and Weaver, R., 2018. Marketing Effectiveness of Educational Services on Websites.Business Education & Accreditation.10(1). pp.49-58. O'Shea, T. J. and et. al., 2018, September. Physical layer communications system design over- the-airusingadversarialnetworks.In201826thEuropeanSignalProcessing Conference (EUSIPCO)(pp. 529-532). IEEE. Rohm, A. J. and et. al., 2019. Time for a marketing curriculum overhaul: Developing a digital- first approach.Journal of Marketing Education.41(1). pp.47-59. Saura, J. R. and et. al., 2019. Digital marketing strategies based on the e-business model: Literaturereviewandfuturedirections.InOrganizationalTransformationand Managing Innovation in the Fourth Industrial Revolution(pp. 86-103). IGI Global. Sharmila, R. and Kavitha, M., 2018. Effectiveness of social media marketing.Indian Journal of Public Health Research & Development.9(11). pp.192-196. 11