Digital Marketing Strategies and Analysis for Argos Company

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This report provides a comprehensive analysis of Argos' digital marketing strategies. It begins with an environmental analysis, focusing on opportunities, challenges, and their impact. The report then critically assesses Argos' digital and store presence, comparing and contrasting their effectiveness. A significant portion is dedicated to developing digital marketing activities for an omni-channel approach, including actionable strategies. Finally, the report explores monitoring and measurement techniques to evaluate the success of digital marketing efforts. The report also covers PESTLE analysis, digital tools used for revenue generation, and the role of digital marketing communication in relation to the 7 Ps.
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Environmental analysis for Argos, focusing on the opportunities, challenges and its impact....1
TASK 2............................................................................................................................................4
Critical assessment of Argos by comparing and contrasting digital and store presence.............4
TASK 3............................................................................................................................................9
Digital marketing activities for use omni channel......................................................................9
TASK 4..........................................................................................................................................13
Monitoring and measuring techniques......................................................................................13
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18
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INTRODUCTION
Digital marketing means to advertise with distinct digital channels. The different medium
of channels can be social media, email applications, mobile application,websites, search engines,
or any other channel. The report will discuss about Argos Ltd. which is an British catalogue
retailer. The company is situated in U.K. Argos is a subsidiary of Sainsbury's. As Sainsbury's
was established in 1869, the founder of the company is John James Sainsbury. The company
headquarters are in Holborn, London, ECI, United Kingdom. In this report the discussion will be
based on understanding of opportunities, challenges and impact on digital environment in the
organisation for online retail industry. The study will be based on comparing digital presence
store and store presence in Argos business. Further the study will be based on the developing a
plan on the digital marketing operations which can helps to build multi channels capabilities. In
the last segment of the report the study will be based on the monitoring and measurement of
effectiveness of the digital marketing.
TASK 1
Environmental analysis for Argos, focusing on the opportunities, challenges and its impact.
Digital Environment includes digital devices as these are basic tools to interact and
manage the activities and contents available to themselves(Chaffey and Ellis-Chadwick, 2019).
The difference between online store and offline store is that in offline store the customer
need to visit store and the stores opens on time basis but in online store the customer can shop
from home itself as well as there is no issue for timing the online store are available all time for
customers.
The benefits of digital marketing are that it is an most potential and powerful tool to
attract large pool of audience towards the company. As the digital marketing tool is cost effective
for the company rather then traditional approach for marketing which require lots of investments
and it becomes difficult for small business to manage the budgets for digital marketing. Digital
marketing helps the company know the customers needs and wants by getting reviews from
customers through social media.
Opportunities Of Digital Marketing
Customer Insight: The Argos company can able to understand the opportunities related
digital marketing as the company is able to understand the customer behaviour towards
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purchasing the products through online services provided by the company(Kartajaya,Kotler and
Hooi, 2019). As with the help of analysing the suggestion and grievances the company can avail
the opportunity to improve its product and services for the consumers. Which further will
increase the revenue and financial performance of the company.
Developing Digital Marketing Activities: The Argos company can avail the
opportunities for using different digital marketing activities like email marketing of the online
retail store which can provide and acknowledge different customers in the market with the help
of sending emails. Another activity which can influence customer around the world are social
media marketing through which the company is able to get connected with customer easily. The
company can update its feeds and news regularly to attract the customers. The company can also
use content marketing to so that it can easily able provide brief information about the changes
and knowledge for offering new product and services for its customers.
Consumer power: The company can facilitate customers to rise their power towards the
company product and services as it can provide information on internet about the products with
acknowledging about pros and cons of the product(Chowdhury,2019). The opportunity for
accessing about the online stores and provide safe mode of transaction to the customers. The
company can have the opportunity for collaboration with the other online retail stores which can
benefit the company to provide special offer or coupons. As with the help of these opportunity
the company is able to increases its revenue and can influence new customers towards the Argos
company.
Challenges And Impact Of Digital Marketing
Challenges faced by company
Customer experience: The company faces major challenge towards giving best
customer experience for the products an services consumed by the consumers. In the phase of
digital marketing the company faces competitive environment in online retail store. As the
suppliers are more for online retail stores which aims to provide better customer experience than
Argos company. Which impacts on the company to increase quality of product and services
provided to the customer(Kingsnorth, 2019).
Volume of production: In digital world the company faces challenges towards the
reaching online and mass production of product and services which impact to less focus on
spreading the brand awareness among the consumers and which impact the company to influence
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less customers towards the brand due to which the financial performance and profit earning
capacity of business also get reduce.
Impacts on company
Negative publicity: With adoption of digital marketing the company generates some
negative publicity towards the company. The company can get negative messages through online
suggestion or comments from consumer for the product and services. As it will put impact on the
company to generate negative image for the company in market. Due to which the reputation of
company falls in the market.
Customer expectation: By meeting the customer expectation the company able to fulfil
the requirement of customers which enable the Argos company to increase its capabilities to
meet the demands of consumers and able to increase competitive advantages in the digital
market(Lewnes and Keller, 2019).
Monitoring of devices used by customers is email device as the tracking can be done
with the help of push notifications like email opened, email delivered, deep links, etc.
Monitoring help the company to examine the customer behaviour towards the product and
services provided by the company are valuable to the customers and produce quality of services.
The competitive environment in digital world is increasing day by day. The company
faces challenges to get competitive advantages from the rivals in the market. As the company is
able to get the competitive advantages when it develops different tactics, strategies, channels,
etc. to drive market performance. The company can bring differentiated digital tools to attract
customers like it can design creative website of the company, develop different digital channel to
communicate with the customers like social media, online marketing, search engines,etc.
The growth of micro moment originally means marketing and selling by google as the
moment used to describe about mobile devices which is used to start internet research of product
and services.
PESTLE analysis on digital marketing
Political: The political factors differs from one nation to another nation. Digital
marketing impact positively when the government allows the company to advertise digitally with
less imposing of government rules, taxes, etc. for promotion of products and services. And the
negative impact can be vice versa(Islam, 2019).
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Economical: In digital marketing the economic factor which influence the company are
inflation, interest rates, federal spreading, etc. The positive impact for the company will be when
the company digitally market its product in wealthier economy which will help the to influence
large pools of customers. The negative impact for the company will be when the the marketing
of the product and services are done in poor economy.
Social: In social factor the company focuses on society welfare and provide quality
product and services. The positive impact will be that company will produce quality services for
the customers. And negative impact for the company is that the promotion of product and
services if are not according to the customer then it will harm the goodwill of the company.
Technological: In the technological factor the company can adopt advance technology
for promotion through internet, etc. the positive impact will be that when the company will
adopt highly advance technology and software the company will able to run its business
smoothly. The negative impact for the company is that it when use of obsolete technology will
not contribute the company to adopt digital marketing tool for advertisement(Cvitanović, 2019) .
Legal: The legal factor includes various rules and regulation which should be followed
by the company. The positive impact is that the company will follow the policies related to
online marketing which will not harm the emotions of the customers. The negative impact on the
company is that it need to follow and make appropriate advertisement for promotion of goods
and services of Argos company.
Environmental: This factor includes the condition of climate, seasonality,
temperature,etc. The positive impact on the company for digital marketing is that it will enable
the company to understand the condition which are suitable to market in the country. The
negative factor for the company is that some times the climatic conditions creates error for
digital marketing in the country(Chaffey and Ellis-Chadwick, 2019).
TASK 2
Critical assessment of Argos by comparing and contrasting digital and store presence.
Digital Tools Used For Generation Of Revenues In Company
Pay-per-click: Pay per click is paid advertising mode which used to target potential
customers in very short period of time. As it enables the company to optimise , contextual and
visual information for advertisement.
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Search engine: The search engine is most effective tool for increasing the revenue for
the company. As most of the people usually begin by using search engines. Several activities
involve key searches, organic link building, linkable asset creation.
Advertisement: People visit many blog , websites, forums, etc. as in which people are in
their interest areas. The digital marketing can be done on the website which will enable the
customer to get attracted towards the company. Which includes boxes, interactive, banners,
interstitial advertisement,etc. Which are similar and linkable to the loading
page(Kartajaya,Kotler and Hooi, 2019).
Social media: The most effective platform to attract customers and create brand
awareness among the customers. As number of user are increasing day by day. The digital
marketer selects most appropriates social network to target the potential customers. Different
platforms within the social medial tool are Facebook, twitter,google+,etc. With the use of these
tools the company easily influence the customer to visit the company website. Which enable the
company to generate revenue when customer purchases product of the company.
Role of digital marketing communication in relation to 7 p's
Place: Digital marketing creates the space for new companies which emerged as internet
and the existing company uses the approach as part of marketing plan. For few companies
internet is additional channel which enhances the company to replace it with traditional channel
or place(Chowdhury,2019).
Price: The price policy for the company is penetration price policy. The prices are decide
according to subscription based which can be monthly or numbers of data service user, software
can be developed as service model for the company.
Product:The tools can be SEO, blogging, websites, social media, etc. it easily helps to
attract customer to purchase the products.
Promotion: The promotion require to increasing popularity of company websites and by
adopting various different methods like internal optimisation in websites. The significant ways
can be building traffic, search engines are included, etc.
Physical evidence: the company can give influence the customers by designing creative
and innovative websites . Proper details and and brief information of the products can be given.
Process: The process in digital marketing includes proper linking of websites to attract
the customers for interested in product and services. As the company sells its product through
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online website and when customer orders product company provide home delivery of the
product(Kingsnorth, 2019).
People: The people in the company should be highly skilled and able to handle or
develop new software and knowledge required is artificial intelligence.
Digital tools and hardware to support marketing
Digital marketing tools are google analysis as it is useful tool for supporting marketing in
Argos company . Which is used to increase the scale of business. Another tool can be active
campaign which is SumoMe which helps to track the readers on the sites which helps marketing
to analyse the customer behaviour and their interest areas(Chowdhury,2019). Hardware
marketing is designing of software for specific use. As the marketing is done with the help of
designing attractive features to influence customer for purchasing of the product. Digital and
store presence or marketing is plays an important at marketplace in order to develop image off
business in marketplace. In order to better understand the digital and stores presence, below is
show the comparison:
Basis Digital presence Store presence
Meaning It simply refers to business
appears online. There are various
digital platform available in
marketplace such as website and
social media.
Store presence refers to business
appears offline which is includes
stores which are physical
presence in market.
Ease of measurement Digital marketing is easy to
measure at market place (Chaffey
and Ellis-Chadwick, 2019). In this
marketer easily find out the
number of time digital marketing
message were displayed to the
local customers, the pages visited
and the amount of visit time.
In comparison to the digital
marketing, store presence is not
easy to measure progress of
marketing activity. For instance,
that store presence enable to
analyse the customer
requirements and needs.
Effectiveness of brand
development
Digital presence is help to Argos
in order to develop brand image at
As compare to digital marketing,
store presence is not effective for
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marketplace by official sides,
social media apps etc.
develop brand image at
marketplace because of limited
stores within the cities (Durmaz
and Efendioglu, 2016).
Potential exposure It is possible with online
marketing which hand crafted
messages of marketing can be
delivered to digital devices that
are used by customers.
Potential exposure is rare to hear
the story of printed sales which
has gone viral throughout the
target market.
Bigger audience range Digital presence is create the
biggest range and high
customized campaign and also
help to Argos to reach in different
cities or even different countries.
Store presence is limited in many
ways, but one of the biggest
restriction come with it is
inability to go on the far side a
local audience.
Less expensive and
more effective
Spending money on marketing,
return on investment decide the
campaign was successful or not
(Kotler, Kartajaya and Setiawan,
2016). But, digital presence is
allows spend less and gain more
or extra. This is the best for
business for earn more profits.
Other the store/traditional
presence is only have one way
which is advertisement. This way
is more expensive and less
effective because advertisement
in newspaper is costly.
Thus, as evidenced from above discussion digital presence which makes use of social
media and official websites as content with marketing channels are far effective from store
presence. Digital presence is easy for measure the outcomes and results of work and
development of Argos products and services (Opreana and Vinerean, 2015).
Consumer life cycle stages of digital adoption
Consumers adoption patterns are important to understand how market new product for
adoption. This covers the five steps which are describe underneath:
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Innovators are the first customer who are try a new products which are introduce by
Argos. They are risk taker or excited to purchase new product and services. Early adopters have a reasonably high social status, reasonable assess to finance. They
mostly influence any market space and they will often have a degree of though leadership
(Shanthi and Desti, 2015). Early majority is the mass market appeal, the next class of adopter to arrive is the early
majority. Late majority is put resources towards tried and tested solutions only and risk averse.
This category has less money, lower social status.
Laggards are last arrive at the adoption party. This value traditional methods of doing
things or high averse to change risk.
Growth of online transaction and e-commerce
Online transaction is plays an important and effective role in retail sector. E-commerce
and online transaction is the process of buying and selling products by electronic means such as
by mobile applications and internet. It refers both online retail as well as electronic transaction. It
is huge platform which is growing at an unprecedented rate all over the world. Business to
business electronic commerce accounts for the vast majority of total online transaction sales and
plays a leading role in global network. It rise over the past 20 years has been rapid (Sharif and
Butt, 2017). The growth of e-commerce in retail sales and sector has also reduced consumers
search cost placed downward pressure on many consumers prices and also reduced price
dispersion for many consumers goods. Now days most of the people are use online transaction
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Illustration 1: Digital adoption life cycle
(Source: Consumer life cycle stages of digital
adoption, 2018)
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for purchasing and selling product and services as well as payment. Online transaction and e-
commerce is grow in positive manner. It helps to people for transfer money easily in safely from
one place to another place. It is one of the best secure method for money transfer as per time
consuming.
Role of automated and non automated sales and support activities
Automation sales
Automation sales is put automates repetitive activities, task and documentation by using
software for the purpose. This includes e-mail, inventory control, pricing regular documentation
and standard contracts. Sales automation plays an important role in Argos to identify potential
customers as well as get customer information in proper manner. This method is help to sales
team for define filter criteria in order to find out potential customers. This has high chance of
making successful conversions as the filters ensure that sales personnel chase relevant and
interested parties. It is also help to sales team for gain more information and knowledge about
customers like needs and wants of customers.
Non automation sales
Non automation sales are includes face to face dealing with customers. This plays an
important role in Argos in order to understand the needs and wants of customers as per
requirement with company (Todor, 2016). In this sales team meet with customers and give
detailed information about product and solve queries of customers. This plays an important role
which is fill form and other manual process.
TASK 3
Digital marketing activities for use omni channel.
Digital marketing activities
Digital marketing is the newest of marketing in the world. This help to customers to get
all information about product of Argos. Digital marketing channels are create the various
opportunities for business and its growth.
Opportunities for develop multichannel
Digital marketing is help to develop business at marketplace. This provides various
opportunity to Argos.
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