Digital Marketing Plan: E-commerce, Omni Channel, M&S Analysis

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This report provides a comprehensive analysis of digital marketing, comparing it with offline marketing and highlighting factors contributing to its growth. It explores the opportunities and challenges in transitioning to digital platforms, key digital tools available, and the impact of e-commerce growth. The significance and evolution of Omni channel marketing are discussed, along with a marketing plan. The report uses Marks & Spencer (M&S) as an example, examining their shift towards online retailing and the need for effective digital strategies to maintain competitiveness in the evolving market landscape. The analysis covers social changes, technological advancements, globalization, competition, and changing customer relationships as drivers for adopting digital marketing. The report also addresses the importance of data security and the challenges of maintaining integrity in artificial intelligence within digital platforms.
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Digital Marketing
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Digital marketing concept and its comparison with offline marketing.......................................3
Factors contributing in growth of digital marketing....................................................................4
Opportunities and challenges in switching to digital marketing.................................................5
Key digital platforms and tools available in comparison with physical channels.......................6
Impact of e-commerce growths...................................................................................................7
Significance and evolution of Omni channel marketing.............................................................8
PART 2............................................................................................................................................9
Marketing plan.............................................................................................................................9
CONCLUSION AND RECOMMENDATION............................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Digital marketing is defined as the marketing approach which encompass the use of internet
or electronic devices for the promotional and marketing purpose. Contemporary organisations
are using variety of digital channels like social media, email, search engines and websites to
interact with potential stakeholders (Vieira and et.al., 2019). As compare to conventional
marketing approaches the new emerging digital technology is able to approach wider segment of
target audience in more cost effective manner. Organisations such as Marks & Spencer (M&S)
who used to dominate retail and clothing segment on basis of their attractive physical stores are
also shifting towards online retailing. This report will provide the key advantages and challenges
in accomplishing the shift from traditional to digital marketing. It will also discuss various digital
tools which can help organisation in developing effective Omni channel marketing for
successfully achieving marketing objectives.
PART 1
Digital marketing concept and its comparison with offline marketing
Digital marketing refers to the plan which assist organisations in achieving their marketing
goals by means of advanced digital technology based channels such as SEO, mobile application,
social media and email marketing (Kingsnorth, 2019). Digital marketing approaches are
measurable and trackable which makes them highly efficient in terms of cost as well as expected
marketing outcomes. For the organisations like M&S it has become possible to predict the
buying behaviour or purchasing journey of customers. On the basis of this prediction companies
are able to highly influence the decisions of customers and to achieve new dimensions of
success. Online or digital marketing proves to be more dynamic and successful in comparison to
offline or conventional marketing. Some of the key differences between both of these types of
marketing are as follows:
Criteria Online marketing Offline marketing
Basic concept Online marketing is primarily
based upon use of technology
or digital technology
It uses non-technical
approaches such as billboard,
physical stores or newspaper
advertisements for marketing
purpose.
Focus Online marketing mainly Offline marketing is mainly
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focuses on content which can
attract or retain customers.
product oriented and emphasis
upon product attributes.
Key tools It includes social media,
emails, websites, SEO and
other third party media
It includes newspapers, mass
media, telephone or call
centres.
Target audience On online platforms targeted
audience is usually
accumulated at one place.
In offline marketing targeted
customers are scattered.
Cost Cost effective High cost
Measures and result Online marketing outcomes
are more quantitative and can
be easily measured
It’s almost impossible to
actually figure out the impact
of offline marketing campaign
(Christina, Fenni and
Roselina, 2019).
Factors contributing in growth of digital marketing
There are several factors which have encouraged organisations like M&S to adopt digital
marketing. Some of these factors are as follows:
Social changes: With increasing demand of quick or home delivery, online payment methods
online shopping has become a common trend. People used to spend good time and interest on
social media or internet. Thus organisations must also make changes to their marketing
approaches so that more interactive relations can be build. In addition to this Covid 19
pandemic, social distancing concepts have also encouraged the need of online marketing or
business instead of physical stores or offline marketing (Dewi, 2020).
Technology: The advanced technological platforms and internet tools like social media, online
payment and shopping, good analytics have allowed organisation to keep watch on their
customers. Thus their marketing approaches also need shift to digital paradigm so that available
opportunities can be availed.
Globalisation: Flexible international trade and acceptance of international brands has inspired
companies to work globally in cost effective manner. Thus to operate globally traditional
marketing seems to be less efficient in terms of accessibility and cost. It acts as one of the
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biggest reasons that companies are now relying on online marketing so that they can have better
control and efficiency.
Competition: To provide better services and to meet the expectations of customer’s organisations
are searching for more interactive and analytical platforms so that marketing outcomes can be
measured and improved (Olson and et.al., 2021). Increased competition in the retail sector has
also forced M&S to seek improved marketing tools.
Changing customer relationship aspects and communication methods: With modernisation and
evolving societies people are becoming more vocal about their needs and choices. Customers
have lot of options available and thus they expect every service or product to meet their
personalised needs. The increasing use of social media tools and smart electronic gadgets have
made it essential for the companies to mark their presence on such platforms and to engage in
digital marketing practices.
Opportunities and challenges in switching to digital marketing
The use of digital marketing will be effective for M&S in terms of expanding its business
and services across the globe with minimum cost. The technology will allow organisation to
predict nature and expectation of its customers and thus to allow itself to deliver more efficient
services. Increased interaction due to digital technology will make organisation able to withstand
increasing global competition among e-commerce (Sridhar and Fang, 2019). M&S also has
chance to create strong brand perception and loyal customers using the social media tools which
are highly influential in terms of affecting purchasing decisions of the customers. Digital
marketing tools are measurable and quantitative in nature. Thus it is possible for the organisation
to measure the effectiveness and success of their marketing campaigns and response of people
towards them. Digital marketing approaches are capable of measuring every reaction of the
customers so that organisations can review their strategies and efforts. Thus it can provide a great
opportunity for the organisation to monitor its progress and to make necessary changes in its
strategical pathway (Saura, Palos-Sánchez and Cerdá Suárez, 2017). The internationalisation and
global exposure has become possible for organisations mainly because of digital technology.
Digital marketing made it possible for the firms to enter into international market even without
having any physical infrastructural support. Social media platforms and strong web presence is
enough and dominating factors for the firms to influence the international audience and to attract
investors.
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In addition to several advantages digital technology also suffers from variety of challenges.
While choosing to shift completely into digital marketing M&S may face different challenges.
Cost and maintenance can be one of the key challenge for the firm. Since organisation has to
operate its physical stores as well and digital platforms also requires frequent maintenance in
terms of data security it can pose a difficulty for the firm (Zhu, 2019). Digital platforms are open
for interaction thus along with the good interaction organisation may also have to deal with
negative and false remarks which can be harmful for its growth. Thus to sustain the benefits
organisation must also come up with dynamic nature of digital technology. Data security and
lack of integrity in artificial intelligence can affect the long term sustainability of existing
platforms. Thus company must have readiness in terms of dealing with data security challenges
related to digital technology.
Key digital platforms and tools available in comparison with physical channels
Use of several digital platforms and technologies has allowed organisation to work beyond
a fix time or place. Customers are now able to communicate with organisation at any instant of
day and irrespective of their physical location (Riva and Pilotti, 2021). This improved interaction
is vital for enhancing the marketing and business outcomes of the firm and thus contribute in
competitive gain. While billboards, newspapers and media are major physical channels of
marketing, potential digital tools include:
Social media: M&S used to have active presence on social media platforms like Facebook,
LinkedIn and Twitter. These tools not only act as promotional tool but also helps organisation to
observe choices of customers and to have quick response to their queries. Organisation can
quickly respond to the negative or unfavourable remarks against brand using this digital
platform.
Email marketing: With the use of email marketing companies used to provide a constant update
or products or services to customers so that they are always connected to organisation and they
feel valued. It helps in building trust and brand loyalty (Desai, 2019).
Websites and mobile marketing: In this mobile world users are able to know any organisation in
just few clicks on their computer or phones by means of website only. Thus organisation can use
this tool to make their customers aware about its glories, decisions and actions. For better
approach and interaction M&S also uses mobile applications, push notification as well as in app
purchase so that people can easily access to organisation at any instant of time.
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Search engine optimisation (SEO): For gaining competitive advantage M&S also uses
techniques to enhance website visibility, traffic and visitors on websites by improving awareness
on search engine (Kaur, 2017). Use of SEO techniques helps companies to provide and use user
friendly architecture and optimum use of websites for attracting customers.
Impact of e-commerce growths
Use of digital technology has made it a very common trend to exchange the goods and
services over internet. This trend has even forced M&S to shut some of its physical stores and to
have greater focus on online retailing. The greatest impact of e-commerce rise is in buying
pattern and behaviour of customers. Digital technology allows individuals to shop at any time
and from any brand across the world. It has encouraged companies to make their services and
products accessible to entire world instead of operating to any one specific physical location.
However, it also imposed a greater challenge for the retailers in terms of competition. Customers
are able to compare the products and services of all available options and thus maintain high
quality with minimum cost has become a greatest task for the firms (Castro, Silva and Duarte,
2017). Fierce price wars are proving a tough nut for companies while for customers it is giving
them lot more options to choose from.
E-commerce growth has also motivated organisations to focus more on product quality,
social presence, increased used of digital technology and the way in which customers perceive
their brand on social or digital platforms. It has also generated need of more advanced analytical
tools and digital technology in various business operations so that marketing outcomes can be
achieved and improved. With rapid rise in e-commerce growth organisations are now adopting a
wide customer segment which is not only limited to only a fix geographical region. This has also
resulted in immense competition among retailers on basis of price and quality. Though this
competition is giving vast range of options to customers for choosing from multiple suppliers but
at the same time it is creating an extreme level competition for service providers.
Organisations like M&S have to stay alert on every aspect of business such as their pricing,
range of product, delivery mechanism and duration, delivery method, product attributes,
discounts, pricing as well as the actions of competition (López García and et.al., 2019). The e-
commerce growth has also made organisations more responsible and accountable towards
consumer needs and choices. Like it has become very common for retailers to give update and
promotional information to the customers using emails or to promote the organisational
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initiatives on social media platforms (Lashgari, 2018). Since with the technology and advanced
technology tools organisations are able to extend their services globally, this international growth
in the form of e-commerce has also resulted in various challenges for retailers. Organisations
have to compete very extreme on the basis of price and other operational aspects.
Significance and evolution of Omni channel marketing
Omni channel marketing is defined as the integration of multiple channels by organisation
so that interaction with customers can be enhanced and brand experience can be improved.
Evolving digital platforms have been acting as key driving force for successful creation and
development of such marketing approaches. For instance, M&S is using both its digital presence
as well as attractive and lavishing physical stores to attract customers. One of the key feature of
Omni channel marketing is that it considers the customer journey maps across multiple channels
so that organisation can improve its services at every touch poi8nt which can affect the buying
decision.
With increasing choices available for customers Omni channel marketing enables
organisation to deliver better user experience and to build cohesive brand identity. Use of digital
platforms like social media, pay per click and SEO allows organisation to go well in more depth
with its data analytics. By tracking customer journey retailers like M&S are giving more
personalised services to their targeted customers (Vinerean, 2017). Collecting good and suitable
data, appropriate statistical analysis, customer journey mapping and brand testing are key stages
in developing Omni channel marketing. It would not have been possible for organisation to
accomplish these stages with traditional marketing. Use of digital platforms like social
networking sites, website traffic and purchase trends analysis helps organisation to accurately
predict the need and choices of customers. Thus this type of marketing approaches has played a
crucial role in deciding the service mechanism and path ways. The use of social media, review
site, online mobile applications as well as buy in store are permitting customers to have a
centralised interaction with the service provider and thus improving the service quality and
competitive gain.
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PART 2
Marketing plan
Digital platforms have become a symbol for measuring the brand popularity and customer
response towards a particular brand. Thus it is essential that M&S must develop marketing
objectives in alignment with digital tools and technology so that its long term growth aspects can
be meet.
Executive summary:
The marketing plan helps organisation to follow a strategical path for aching its business
or sales objectives. It includes situational analysis, key marketing strategies as well as methods to
measure the effectiveness of the marketing plan.
Objective:
The objective of this marketing plan is to:
To increase the order value of per customer from website sale by £ 40 within next 6
months.
To lower the bounce rates by 15% from all sources in 1 year.
To increase the organic traffic volume by 10% in 1 years
Situational analysis:
The existing evaluation of internal and external environment of M&S can be done by
using SWOT and PEST analysis. The key findings from this analysis are as follows:
Strength: Strong brand presence and brand awareness is key strength of the organisation. As
M&S is well known brand its customers are more positive in accepting the digital shift and
tactics of M&S. This will help organisation to optimise its digital strategies to increase its
revenues.
Weakness: Slow response to dynamic nature of technology changes has been one of the
weakness of M&S. As compare to its competitors like Tesco and Zara, M&S has slowly reacted
towards digital platforms due to its size and scope limitation which was earlier oriented to only
physical stores. If in long term organisation does not respond quickly toward technology changes
then it can impose a competitive threat for the firm.
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Opportunity: M&S has great opportunity to use social media platforms to inform its target
audience about its CSR initiatives, offers and success so that its brand awareness and customer
retention can be improved.
Threats: Increasing cyberattacks and data breaching are major threats for the organisation. The
failure to manage these threats can affect the volume of customers who prefer to use online M&S
app for buying purpose (Castro, Silva and Duarte, 2017). To retain the customer loyalty also
organisation, need to use safe and secure payment gateways and database technology.
External environment analysis:
Political: Political instability and restrictions due to pandemic can affect the tax regimes, data
security legislations and supply chain of the firm. The political factors can also influence the
marketing tactics and future operational plans of the firm.
Economic: Post Covid 19 supply chain of M&S have affected greatly. Thus it is important that
organisation must trade-off between demands and pricing changes so that it can balance its
profitability and expenses.
Social: Changing social trends demands for quick delivery, online bookings, competitive prices
as well as immediate response and support from the customer services. Thus M&S must consider
these aspects in formulating policies for its physical stores as well as for extending its online
services.
Technology: Digital technology is very dynamics and thus M&S must also monitor the emerging
trends and platforms so that it can always stay connected with its stakeholders. However, the
lack of planning can make it very costly and vulnerable to data security challenges.
Marketing strategy: The key marketing strategies which can be used by M&S to achieve its
objectives are as follows:
Product: M&S offers variety of products such as grocery, households, clothing as well as food.
These products are provided in attractive packaging at both online and offline platforms. Vast
range of products will help organisation to target different types of customer segments.
Price: At online platforms retailers used to face extreme price wars. Thus M&S must keep its
pricing low so that its bounce rates can be reduced and more and more customers can be
motivated to make purchase.
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Promotion: Organisation can use social media and good user friendly online application to
facilitate purchasing. Schemes such as loyalty benefits, appreciation rewards on social platforms
and improved SEO will help organisation to generate more online traffic and revenues.
Place: Physical stores of M&S are effective in generating revenues but with changing social
distancing trends organisation must give more emphasis on its online supply chain network.
M&S can use social media along with its official websites or mobile applications to approach
and access customers. It will enhance the user interaction and order value per customer.
Tools and techniques used: The key digital tools which can be used by M&S for increasing its
sales are:
Social media: Social media presence plays a great role in affecting buying decisions and
customer journey touchpoints. Thus organisation must ensure that it has very positive good will
on social networking platforms. M&S can also use such media to inform customers about its
achievements and strategies.
Search engine optimisation: By using good quality content M&S can position itself higher in
search engine ranking. This approach will help organisation to gain competitive benefit over its
rivalries who give strong competition on pricing terms (Saura, Palos-Sánchez and Cerdá Suárez,
2017). It is used to create a positive impression among customers about brand power and
positioning.
Email marketing: To keep customers update about their services organisation must send regular
emails to customers. Along with the service update M&S can also send informative and
appreciation emails so that customers feel valued and connected with brand. It will help
organisation to enhance customer loyalty.
Mobile application and website: Since most of the people now days used to prefer online
shopping, it is mandatory for M&S to develop and employ mobile applications and websites
which are highly secure in terms of data privacy. The user interface of such applications must be
interactive and simpler so that people do not find difficulty in making communication with the
organisation.
Actions for improvements: In order to improve the outcomes and brand performance organisation
must review frequently its online presence. Many times negative and fake remarks from
dissatisfied customers leads to poor brand perception. Thus organisation must closely monitor
such individuals and try to meet their requirements. To increase the organic traffic on websites
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M&S must use attractive content, discount offers and good interactive user interface (Desai,
2019).
Measurement techniques:
In order to measure the success of digital marketing campaign organisation can use different
metrics. The first one is online conversion rates. Using this parameter organisation can determine
that how many customers are diverted to website and how many of them have made purchases.
This aspect will help organisation to manage and control its bounce back rates and conversion
rates. Another metric which can be used by company is number of returning visitors who used to
leave the webpage or application of organisation without making any purchasing. On its basis
M&S can use feedback mechanism to understand the reason of their return and then appropriate
actions can be taken to motivate such consumers for making purchase.
CONCLUSION AND RECOMMENDATION
It can be concluded from the above study that digital marketing approaches are more cost
effective and efficient in terms of approaching closer to customers. Digital tools have helped
companies to create a new benchmark for competition and level of customer interaction. Thus
for successful global orientation as well as for sustainable growth it is required that organisations
must be very quick and effective in choosing suitable digital platform for their marketing
objectives instead of relying on traditional and old methodologies. It is also recommended that
though digital technology is measurable and easy to bring success but they must be measured
regularly so that their impact can be assessed and necessary improvement strategies can be taken
by the firm to fill performance gaps. For sustainable performance it is also recommended that
along with the use of advanced digital marketing tools new threats and new regulations such as
data privacy, cybersecurity, data sharing acts must also be taken into consideration.
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