Digital Marketing Agency: A New Business Venture Management Report

This report details a new business venture focused on establishing a digital marketing agency in Australia. The agency aims to provide comprehensive digital marketing solutions, including SEO, SEM, social media marketing, and content curation. The report outlines the business environment, goals, and promotional strategies for the venture, highlighting its strengths, weaknesses, opportunities, and threats through a SWOT analysis. It discusses the competitive landscape, emphasizing the importance of differentiation in a red ocean industry. The firm plans to expand across Australia, building a competent team to deliver premium-priced services and maintain strong client relationships through effective CRM. Ultimately, the goal is to establish a reputable agency that helps clients enhance their market positioning through innovative digital marketing strategies. Desklib offers a wealth of resources, including past papers and solved assignments, to support students in their academic endeavors.

Management
New Business Venture

Executive Summary
Entrepreneurship is important for the growth of economies. It breeds on innovation and
creativity. This report attempts to create an entrepreneurial venture which is focused on building
a digital marketing agency. This agency is aimed at creating a one stop shop for all digital
marketing needs of clients and offers services of SEO, SEM, Social media marketing and content
curating for advertising purposes. The business environment, goals of the business as well as
promotional strategies adopted by the business have been highlighted in the report.

Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Business environment......................................................................................................................3
Goals, milestones and strategies......................................................................................................4
Business competition.......................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

Introduction
Entrepreneurship refers to the process of starting a new business. The person who starts this
business is known as an entrepreneur. Entrepreneurship is crucial for the growth and
development of any economy (Drucker, 2014). Considering the increasing digitization of
businesses, this report throws light on a new business venture of a ‘digital marketing firm’. This
business is aimed at providing digital marketing solutions to businesses with an aim to help them
in reaching out to a wide customer segment with the help of innovation and technology. A
tentative five year analysis and strategies adopted for growth of the business have been shared
below.
Business environment
The digital marketing company would be built with an aim to provide a one stop solution to
clients regarding all their digital marketing needs. The products and services offered by the firm
would include consultancy on current marketing strategies of the firm as well as complete
outsourcing of their social media marketing, digital marketing and online marketing needs.
The organizational culture and structure are important to build effective communication within
the firm (Robbins & Judge, 2012). Therefore the business would be divided into various
departments including sales, marketing, digital marketing, social media, content curating, finance
and PR. The firm would hire competent employees who have an expertise in different forms of
marketing and provide the same service to the clients in exchange for a fixed annual fee.
The SWOT of the new business over a spread of five years would be as below:
Strengths: The biggest strength of the business would be its competent employees and loyal
customer base. The strong network of clients as well as effective promotional strategies adopted
by the firm would enable in attracting higher number of customers.
Weakness: The premium pricing strategy will be adopted by the firm. This would be a weakness
as firms offering similar service at a lesser price would have an automatic advantage.

Opportunities: Geographical expansions outside Australia and introduction as well as
identification of new technology for digital marketing provides an opportunity for a firm to grow
and expand.
Threats: Increasing competition of the industry, excess of low cost players and little cost of
entering is the biggest threat posed to a new digital marketing business venture in Australia.
The business would start as an office in Melbourne with a team of 25 people which would slowly
expand to other parts of Australia. The organization would be technologically savvy and
effective Salesforce and CRM software would be in place to build and maintain long term client
relations.
Goals, milestones and strategies
The business would involve in geographical as well as organizational growth in the span of 5
years. The agenda would be to build 4 offices in Australia by the end of the fifth year of
business. The beginning phase of the organization would have 25 employees which would be
increased to 1200 employees for four offices within a span of five years. Marketing and
promotional strategies adopted by a business are pivotal to the growth of the business (Kotler,
2015). The firm would indulge in the following forms of promotions:
1. Social media marketing: This involves promoting products or services through social
media platforms like Facebook, Instagram, Twitter or Pinterest (Tuten & Solomon,
2017).
2. Billboards: Various billboards would be placed across the city. Billboards help in
targeting a large set of people during a single day (Placide, 2015).
3. Digital marketing: Search engine optimization and marketing can be used to enhance the
firm’s digital presence and increase awareness among digital consumers (Berman &
Katona, 2013).
Sales process of the organization would involve identifying and approaching prospective clients
through cold calling, event marketing, client referrals and online databases. The potential
customers would be converted into revenue generating clients by conducting meetings and
negotiating scope of services.

Customer relationship management plays a vital role in ensuring long term relationships with
customers (Kumar & Peterson, 2015). CRM would be ensured to effective software in place
which would keep a track of all existing as well as potential clients. Customer retention can be
maintained through on time and effective delivery of services.
The digital marketing services would be premium priced. This involved pricing the services
higher than the market price in order to target a niche group of customers and encourage
favorable perceptions (Keller, 2017). A suitable business strategy would be build a competent
team of experts who have immense knowledge and can take responsibility of client’s marketing
needs. This team must be recruited, retained and motivated in order to extract top quality
performance. Clients must be approached and retained through effective delivery of promised
services and efficient client relationship management.
Business competition
Digital marketing industry and specifically the use of SEO and SEM is on a rise. Marketers have
identified and understood the importance of these tools for successful marketing of their products
and services. Target market of an organization is the set of customers whose needs the business
aims to fulfill (Armstrong et. al., 2015). The target consumers of the digital marketing firm
would be corporates who do not have adequate knowledge about various digital marketing tools.
The company would also target startups in order to help them with the right promotion strategies
to reach out to a wide audience. Basically, any business or individual which does not possess the
right in-house infrastructure to market their product or service would be targeted by the firm.
Competition in the industry is very high at the moment. Digital marketing is a red ocean
industry. This makes it imperative for the firm to differentiate itself from competitors on the
basis of place, promotion or product. Organizations like Xposure media, Havoc digital
marketing, and Shaba and White crow digital are leading agencies with a wide customer market.
Influence of porter’s five forces within the digital marketing industry are as below:
1. Bargaining power of buyers: The bargaining power of buyers is Moderate owing to
increasing competition in the industry. However, at the same time, the cost of switching
brands within the industry is high for the customer as once on board, the customer tends

to share confidential details with the market in such cases, it is wiser to build long term
relationships.
2. Bargaining power of suppliers: There are various suppliers in the Australian market and
hence their bargaining power is Low. The cost of switching suppliers for the digital
marketing firm are very low.
3. Threat of substitution: There is little or no threat of substitution. This form of advertising
and marketing can only be substituted by traditional forms of marketing which are
obsolete and less effective.
4. Threat of new entrants: The cost of starting a digital marketing company is very less and
therefore the threat of new entrants is very high. This makes it imperative to differentiate
the firm on the basis of products, price, place or promotion (David, 2011).
5. Competition rivalry: Owing to a large number of players in the industry, the competitive
rivalry is very high. Every organization is aiming to enhance their customer segment
leading to increased competition. All the organizations are also putting efforts in
differentiating themselves on the basis of price, product, place or promotion.
Conclusion
Digital marketing and promotions has become an important part of every business. Marketers
across the globe are putting efforts in identifying innovative ways to reach out to their targeted
consumers. This report has highlighted details of a new business idea which involves
establishing a digital marketing firm which aims to provide digital marketing solution to its
clients so that they can reach out to a wide customer segment and enhance their market
positioning. The business would be established in Melbourne and continue to grow into other
parts of Australia with the help of right promotions, effective services and efficient client
relationship management.

References
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education. United Kingdom.
Berman, R. and Katona, Z., 2013. The role of search engine optimization in search
marketing. Marketing Science, 32(4), pp.644-651.
David, F.R., 2011. Strategic management: Concepts and cases. Pearson/Prentice Hall.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge. United Kingdom.
Keller, K.L., 2017. Managing the growth tradeoff: Challenges and opportunities in luxury
branding. In Advances in Luxury Brand Management (pp. 179-198). Palgrave Macmillan, Cham.
Kotler, P., 2015. Framework for marketing management. Pearson Education India.
Kumar, V. and Petersen, J.A., 2012. Customer relationship management (pp. 1-10). John Wiley
& Sons, Ltd.
Placide, N.C., 2015. Billboard marketing system and method. U.S. Patent Application
14/252,587.
Robbins, S.P. and Judge, T., 2012. Essentials of organizational behavior. Pearson Education.
India.
Tuten, T.L. and Solomon, M.R., 2017. Social media marketing. Sage. United Kingdom.