Challenges, Impacts, and Opportunities of Digital Marketing

This report provides insights into the challenges, impacts, and opportunities of digital marketing. It discusses the use of digital tools and platforms, tactics for organizing digital marketing activities, and the growth of e-commerce. The report also explores TESCO's digital marketing strategies and the impact of omni-channel marketing. Additionally, it provides information on how to measure the success of digital marketing efforts.

UNIT24: DIGITAL
MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO 1.................................................................................................................................................3
LO 2.................................................................................................................................................5
LO 3.................................................................................................................................................8
LO 4 ..............................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Digital marketing is primarily the method which allows the organizations to reach
customers and provide them innovative products through the help of electronic medium. IT is the
range of efforts which organizations pursue for promoting their products and services.
TESCO is majorly multinational groceries as well as general merchandize being established in
1919 by Jack Cohen and headquartered in England, U.K. It has its own supermarkets, metro,
Banks, club-cards etc. and operates in more than 10 countries.
This report gives a brief about challenges, impacts and opportunities of digital marketing,
Numerous digital tools as well as platforms in contrast to physical channels, tactics for
organizing activities of digital marketing and multi-channel capabilities and monitoring and
evaluation.
MAIN BODY
LO 1
Challenges, impacts and opportunities of digital marketing
Digital marketing
Digital marketing is basically the use of various tools and methods which helps the
organizations in effective advertising of the various products and services. When the
organizations promoted their products through digital marketing, then they seek the help of e-
commerce websites and various digital tools which eventually helps them to grab the attention if
consumers. Organization uses a variety of tools like pay per click. Along with this, through the
help of digital marketing, organizations are able to attract more and more consumers from across
the world (Hofacker and et.al.,2016). The use of digital marketing has increased since the
emergence of globalization and now almost every organization target the consumers by reaching
them through the digital media. The growth of digital marketing has enabled organizations to
make innovations in their product by soliciting feedback from the consumer and knowing their
demands and expectations.
Difference between online and offline marketing
Online marketing concept Offline marketing concept
Online marketing concept is basically the
method in which organizations make use of
Offline marketing concept is the method in
which organizations utilize traditional methods

social media, websites and other advanced
tools in order to take their products to the
customers (Teixeira, Barbosa and Pinto, 2019).
of marketing like newspaper advertising to
make the consumers aware of their products.
In online marketing, the exposure and the
viewership is high and thus covers a wide
range of audience.
In offline marketing, the coverage and
viewership for the products are not much and
thus does not reach wide geographies.
The tools which are being used in online
marketing are E-mail marketing, content
marketing, SEO etc.
Offline marketing makes use of the tools like
newspaper, radio, pamphlets etc.
Online marketing targets the specific group of
people and thus reaches them directly through
various websites like Facebook, Instagram etc.
In offline marketing, the organizations remains
bound and have limited ability for targeting
audience.
Online marketing provides the organization
with a facility to measure the conversion rate.
Through offline modes, organizations cannot
estimate the rate of conversion.
Factors for growth of digital marketing
Increase in technological advancement
This is the most important factor which has contributed to the growth of digital
marketing. Since the emergence of globalization, there has been advent of recent technology in
the world which have eventually given rise to the digital marketing and its various tools. Thus,
due to the innovation and advanced technology, the development of digital marketing is
imperative (Edmiston, 2015).
Rise of consumer power
Due to the recent technological advancement, the power of consumers for innovative
products and services have increase and this has enabled TESCO to introduce various digital
marketing tools in their organization. As more and more consumers now wants technology in
each product thus their expectation have compelled the company to make use of digital
marketing tools to reach consumers and fulfil their demands.
Challenges
Even though digital marketing assist the companies to establish their position but when
they decide to switch to digital marketing, they encounter various challenges

Negative publicity
As more and more consumers have now become technology-oriented and uses social
media thus this is the biggest challenge for TESCO which might hinder their image. Competitors
in order to show others inferior tend to post negative comments on websites for the company
which eventually leads to negative publicity. This negative publicity may compel TESCO to lose
their customer base because consumers have the tendency to believe what they see. This might in
future reduce the revenue and profitability ratio of company (Todor, 2016).
High competition
This is another challenge which TESCO might face while switching to digital marketing.
As now in present scenario, almost every competitor seek the attention of their customers
through the use of social media, digital tools. Thus, competition level in market have risen up
which might lead to downfall of TESCO. Sustaining in this highly competitive world and
providing the customers with innovative product will be a challenge for TESCO. The company
would need to find out various ways through which they can deliver high quality products to the
customers in order to survive in this cut-throat competition.
Hiring an effective organization
This is one of the most significant challenges which the organizations encounter when
they decide to serve the customers through aspects of digital marketing. For the effective
utilization of digital tools as well as platform, organizations requires highly skilled staff which is
can be a challenge fort TESCO. Finding the innovative candidates which are well aware of the
software and applications and have creative mind is still complicated for the company. This not
only have effect on the growth but the overall performance of the organization.
LO 2
Numerous digital tools as well as platforms in contrast to physical channels
There are various digital tools as well as platforms which are available for the
organizations and which will help them in their growth and development. These are
Google analytics
This is the most remarkable tool which the organizations can use to scale up and boost
their business. This is the tool which will show TESCO about the important information relating

to their website like its performance, popular keywords, audience demographics and thus through
this tool, the management of TESCO can take necessary actions for improving performance.
This will also help the company to optimize their essential campaigns and track the customer's
data (Van Belleghem, 2015).
E-mail marketing
This is the another most renowned tool which helps the organizations to design their
strategy and thus generate revenue. This is available to TESCO and thus can be used by them to
drive their profit. In this, company can send personalized messages and e-mails to their target
customers regarding the any new product launch, offers deals or cashback. This tool will helps
the company to design their mails which are to be sent to customers in an innovative way which
will attract them to the outlets.
Search engine optimization(SEO)
This is the tool which helps assist the organizations to remain on the top of the list and
thus increase the brand awareness among consumers. This is the tool which TESCO can use to
increase customer engagement. By improving its SEO, company can ensure that their name
appears on the top of the search engine when customers browse for anything on google like best
company etc. This will not only help company to establish their position in market but will also
enhance its brand recognition even among the people.
Content creation
Most of the organizations lack tool through which they can make their website more
effective and creative. This is the most significant tool which is available to TESCO and thus
will help them to make their website more innovative. TESCO can use tools like Canva,
Visual.ly through which they can optimize their website by including various infographics,
videos of success story etc.
Digital marketing landscape and growth of e-commerce
Digital marketing landscape is basically the use of digital media as well as advertising
which includes influencer marketing, social media, pay-per-click etc (Semenov and et.al.,2017).
Through the use of digital marketing landscape, organizations are able to promote their products
and services on large platform and thus helps them to attract the target customers. This has
provided immense opportunities even for the small businesses and thus have assisted them to
drive their business. Along with the digital marketing landscape there has also been the growth

of E-commerce platform since the inception of globalization. With the advent of technology,
there has been development of e-commerce platform and therefore has transformed overall
process of trading that is buying as well as selling. It has enabled business-to-business as well as
business-to-consumers to modify the economies of scale and have helped them to scale up their
businesses. The development of e-commerce platform has impacted business and customers in
great way.
Positive impact
Convenient for customers
Due to the E-commerce, the online transaction has become easier for the customers while
making the purchase of any product or service. Due to this platform, now consumers can easily
transfer money or pay their various bills online like credit cards and thus have helped them to
step out of the constraints of traditional payment methods.
Increased sales
Due to the growth of e-commerce platform, more and more consumers have become
technology-oriented and thus wants everything even the small things online. Thus, this has
helped TESCO to increase the sales ratio by growing their e-commerce platform and providing
the customers more innovative services (Das and Lall, 2016).
Negative impact
Cybercrime
Although the growth of E-commerce have helped organizations as well as people in a
great way but it has also led to the increasing number of cybercrimes across the world. As the
consumers are constantly engaged in making online transactions and transferring money, thus
there remains the threat of stealing confidential information of consumers by hackers. Besides
this, due to the advanced technology, the safety of employees of TESCO are at threat as the
thefts tend to spy the employees and keep an eye on their activities.
Omni-channel marketing
Omni-channel marketing is basically the method in which organizations use all the
channels for developing a unified as well as an integrated experience for the consumers. This
predominately includes the mixtures of both traditional and modern methods of marketing. The
emergence of omni-channel marketing was due to the reason of choosing the most appropriate
channel which will fulfil the needs and demands of customers. The fluctuating expectations of

the consumers was the main rationale behind the inception of omni-channel marketing. As
consumers, people interact with various brands every day. Sometimes, they do this through face-
to-face communication or sometimes via emails, social media and other digital tools. Thus,
resolve this confusion marketers came out with a unified approach that is omni-channel
marketing that will maximizes the customer experience (Avery, Dev and O'Connor, 2015). This
marketing creates a seamless and well-through customer experience across every channel. It
takes into account the different digital interactions along with interpersonal interactions. The
development of this marketing took place in 2010 which integrates offline channels as well as
online channel in the most holistic way. The main rationale behind building this omni-channel
marketing was to make it convenient for the customers to browse and delivering the unified
message across each and every consumer. This strategy has helped to improve the overall
performance of TESCO and thus has also helped them to provide seamless and better customer
services. It has been reported that around 60% of the consumers wants the process of marketing
to be easy and are willing to spend high amount on simple experience. This has eventually led to
the development of omni-channel marketing where the journey of the consumers are not
interrupted and the execution of this approach has also helped TESCO to drive their business and
profits.
LO 3
Tactics for organizing activities of digital marketing and multi-channel capabilities
Gantt's chart
Activities/Week W1 W2 W3 W4 W5 W6 W7 W8
SWOT analysis
Sales promotion
Marketing campaigns
Grouping tasks
Locating target

customers
Market segmentation
Implementation
Monitoring
Digital marketing plan
There are various digital marketing strategy which the organizations utilize for enticing
the customers and increasing brand awareness among them. These strategies helps them to
establish their position in the market and capture great market share. Among the numerous,
TESCO will use the following marketing strategies.
E mail marketing
This is the most significant digital marketing tool and platform which helps the
organizations to attract large number of customers. TESCO will use E-mail marketing where
they will send personalized messages and mails to their customers regarding any product, offers,
cashback etc. The main advantage of this strategy which will help TESCO to succeed is that
through this tool, TESCO can segment their customers into various categories according to their
preferences and thus can send them highly personalized content (Bain, 2017). Besides this, E-
mail marketing will also help the company to increase brand recognition among the consumers.
Social media
This is another digital marketing tool as well as strategy which TESCO will use for
gaining a large market share and for improving its growth and performance. Through the social
media websites like Facebook, twitter, company will reach a large number of customers through
its brand message. The main advantage of this strategy is that it will result in large exposure and
coverage and almost every individual now uses social media and thus will help TESCO to target
wider geographies (Deepak and Jeyakumar, 2019).
Monitoring

Once the company has used these tool for reaching the consumers, monitoring the
activity and their outcomes is also important. TESCO will use various tools and indicators which
will helps them to measure the outcome of their actions.
Sales per customer
This is the indicator which will help company to measure the outcome of their activities.
Through this, TESCO will be able to know the number of units which are sold per customer.
Increase in this ratio means marketing activities are successful (Lamberton and Stephen, 2016).
Online sales
This is the another way of measuring the success of digital marketing. TESCO can use
this tool to track the online sales of their products and thus will help them to know the success of
their marketing strategies.
Multi-channel capabilities
Multi-channel is basically using the various different channel for enticing the customers
and reaching them. In short, through this channel, organizations prepares a mixture of offline and
online channel to reach the customers. The multi-channels used by TESCO will eventually help
them to gain better market share. For example through the E-mail marketing, company will be
able to send personalized messages to customers according to them. The main reason behind
choosing social media is that almost every individual use internet thus this strategy will help
TESCO to target large audience and will help them to generate more and more leads. Therefore,
these strategies used by TESCO has their own benefits which will helps company to flourish. All
the strategies have their own advantageous thus the selection of these two channels are
imperative for TESCO (Chaffey and Allen, 2015).
Effect on consumer engagement and ROI
The various multi-channel used by TESCO will help them to engage more and more
customers and hence will give them better return on investment. For example- In E-mail
marketing, TESCO will attract the customers by making them aware of the different cashback,
offers, deals etc. This in turn will stimulate the customers towards that product, and they will
search more and more. This will eventually increase the customer engagement. As more and
more customers tend to engage in the company's activities, there will be high sales and TESCOI
will at the end get better return on the money which they invested. On the other hand, when

TESCO will use social media for reaching customers like websites then it will attract the
attention of customers browsing the internet, and they will click on the page or pop-ups for
knowing more about it. This will eventually increase the engagement of customers and better
engagement means company will get great return on investment.
Developing personalized products
As now almost every consumer have become technology-driven thus they want products
which can fulfil all their expectations and demands. They mainly focus on those products which
are highly personalized and provide them the required benefit at reasonable price. In order to
satisfy the needs of consumer, TESCO designed various strategies through which they can
personalize and customize the products as per the customer demands. The most significant tool is
google analytics. This tool provides the company about various information like consumer
demographics, their needs, expectations etc. Using this data, company comes to know what are
the ongoing demands of customers and what they want from a particular product. This at the end
helps them to design innovative and customized products which will satisfy their needs and
demands and will help organization to increase revenues (Armstrong and et.al.,2018).
Another tool and strategy which TESCO makes use of for developing personalized
products is the online survey as well as feedback. The company is constantly involved in seeking
feedback from the customers either by sending feedback sheet on e-mail or by enabling them to
review their services on their official website. The data which is collected through this feedback
and online survey helps the company to determine what level of services customers want and
what additional product they are looking for. Based on this data, company is able to develop the
personalized products which will make the experience of customers better.
LO 4
Monitoring and evaluation
Improvement of digital marketing
For improving the effectiveness of the digital marketing tools and strategy, there are
various performance matrices which TESCO can use in order to improve the performance of
their organization in market. Performance metric is predominately the system or tools which help
the organizations to estimate the effectiveness and efficiency of various aspects of the business
(Teixeira, Pereira and Dionísio, 2018).
Retention rate

This is the rate at which the organizations are able to retain the customers in their
organization. In short, it is the number of customers which keeps on using the product of same
company for long period of time. TESCO can use this metric for increasing the effectiveness of
digital marketing. They can increase the retention rate by developing continuously modifying the
products on periodic basis. When company will frequently modify their products, then customers
would less likely to switch to competitors and thus this will increase the retention rate of
TESCO.
Website traffic
Website traffic is basically the estimation of total number of visitors on the particular
website and how often does the customers search or visit on that website. High website traffic
means high number of consumer visiting the website. Thus, TESCO can use this tool for
determining the effectiveness of their digital marketing. In order to increase the website traffic,
TESCO can make their official website more creative using content tools and thus can make it
more innovative and unique (Balusamy and et.al.,2017). This will attract more and more
consumers as it will be convenient for them to grab the information about any product or service.
Thus, the conversion rate will eventually increase. High conversion means the digital marketing
strategy used by company is effective. Thus, through TESCO can enhance the effectiveness and
efficiency of digital marketing.

CONCLUSION
It has been summarized that digital marketing is the most profound method through
which organizations are able together more and more leads and provide better services to the
customers. Although there are various factors which contribute to growth of digital marketing,
but there are also some challenges which organizations might face while switching to digital
marketing like negative publicity etc. With the growth of digital marketing, there has been an
immense growth of e-commerce platform and omni-channel marketing which has made the
experience of consumer mire better. As there are various digital marketing strategies available to
organizations, in order to select the most appropriate one, companies develop digital marketing
plan in which they decide which strategy or mixture of digital marketing strategy will help them
in achieving goals.

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