IKEA's Digital Marketing: Tools, Techniques, and Integrated Approach

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Added on  2022/09/28

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This report provides a comprehensive analysis of IKEA's digital marketing strategies. It begins by examining the opportunities and challenges IKEA faces in the digital landscape, including increased visibility, global reach, effective targeting, cyber security threats, rapid changes in the online environment, and dependency on technology. The report then delves into the application of digital tools and techniques for integrated marketing at IKEA, discussing the effectiveness of SEO, social media marketing, content marketing, and email marketing in terms of reach, impact, and cost. Furthermore, it analyzes the benefits of applying an integrated marketing approach, such as increased leads, improved efficiency, promotion of brand uniformity, and the development of audience trust. Finally, the report concludes with a critical analysis of digital marketing, defining its key components and comparing it to traditional marketing methods, drawing valid conclusions for effective marketing practices at IKEA. The report highlights the importance of a seamless brand experience across various digital channels to enhance customer engagement and drive business success.
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DIGITAL MARKETING
Introduction
Digital marketing, often known as online marketing, is the promotion of brands through the
internet and other means of digital communication in order to engage with potential clients.
Part A will consist of different opportunities and challenges IKEA faces in digital marketing,
the different tools and techniques for digital marketing, the effectiveness of integrated
marketing approach at IKEA, and an evaluation of digital marketing (barone, 2021).
Examining and Analysing the opportunities and challenges digital marketing presents for
effective marketing and the digital landscape at IKEA.
OPPORTUNITES:
1. Increased visibility
Digital marketing has provided a base for effective marketing at IKEA through different
means. For instance, through the use of Search Engine Marketing(SEM), IKEA is able to pay
a search engine, for advertisement, that appear on the result pages, thus helps increase
visibility through appearing in the top results of Google and other search engines. Increased
visibility has promoted effective marketing in IKEA through enhanced engagement with
potential consumers, increase brand awareness and increasing online presence. In the digital
landscape, the increased visibility has helped IKEA create brand loyalty, increase consumer
share drive revenue and boost sales (storm, 2021).
2. Enhanced global reach
Digital marketing has supported IKEA through effectively reaching their target audience,
locally and globally, as opposed to traditional marketing. Through using Social media
marketing IKEA utilise platforms such as Facebook, Twitter, Instagram, and Pinterest, with
estimated total followers of 12 million across all platforms. IKEA utilises the platforms to
effectively market, through publishing content related to its products, connect with their
global audience at the same time which is also cost effective, generate leads and drive
website traffic. In the digital landscape, the opportunity gives exposure to foreign investment
opportunities for the business, thus increasing capital reserves for IKEA.
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3. Effective targeting
Digital marketing has enabled businesses such as IKEA to effectively target audience in a
cost effective way through utilizing content and email marketing. Using content marketing,
IKEA creates publishes and distributes personalized content for their target audience. For
example, content for new born, and children furniture such as baby cribs and basinets for the
specific new parents, which helps them effectively market by saving financial resources, and
Avoiding Unnecessary Ad spent on an audience that is not interested. In the digital landscape,
effective targeting enables businesses to ensure greater consumer satisfaction is attained,
build deeper consumer loyalty and retention, as well as attracting and converting high quality
leads, in a cost effective way (maurya, 2022).
CHALLENGES:
1. Cyber Attacks
Cyber security is a major challenge that digital marketers face, because most brands such as
IKEA need to protect its Brand title and customers from cyber-attacks. Cyber-attacks inhibit
effective marketing, through hacking their website and preventing people from accessing it,
which leads to loss of lead generation and traffic, and its customers could be affected, and
even damage its reputation for example, through Spear shipping attackers pretend to be your
business, and trick consumers to open malicious links, through which their personal
information is revealed, and can be misused. In the digital landscape, Cyber-attacks lead to
loss of consumer loyalty, and retention, as well as decline in revenue, plus hiring IT
professionals is also costly (maurya, 2022).
2. Rapid changes
The online environment is evolving quickly. Investment in marketing strategies becomes
obsolete more quickly due to constant change, as a result, firms like IKEA find it very costly
to keep up with the changing environment, which even affects their marketing such that to
boost visibility online presence and consumer reach continuous adjustment with changes in
tools and platforms is required, as well as keeping up-to-date regarding the application, and
search engines, which audience are using is important to keep alive. In the digital landscape,
rapid changes prove to be costly for businesses and constant research and development is also
needed, that demands for workforce and tools (Gupta, n.d.).
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3. Dependability on Technology
Digital marketing relies heavily on technology and the internet and is prone to errors. This
inhibits effective marketing for IKEA for instance when There are times when the links to
their webpage may not work, landing pages may not load, and page buttons don’t do its job.
This leads the prospective customers to switch to other brands, and competitors, as well as
decline in revenue, and lead generation and conversion. In the digital landscape,
dependability on technology, is time consuming for the business as a test of the website is
necessary, also proofreading the contents and making sure that the campaigns will work on
its targeted niche, as well as hiring IT specialists who check the websites, is an added cost to
the firms.
Applying digital tools and techniques for integrated marketing at IKEA, and discussing their
effectiveness in terms of reach impact and cost.
Integrated marketing Is a way to use several different marketing channels to ensure that your
company is successful at reaching your target market. It is how you create relationships with
your customers, and it is a powerful tool to increase brand awareness and customer interest.
(allen, 2022) .
Digital tools and techniques:
1. SEO
Search engine optimization, is a set of techniques aimed at enhancing the look and
positioning of web pages in natural search results. An integrated SEO strategy brings together
all elements of the online marketing ecosystem to attract the highest number of visitors to
web page content. Integrated Marketing Expedites SEO and help secure the business by
generating traffic. SEO is an effective tool for integrated marketing because it not only
reaches audiences in every stage of the buying funnel but also connects with every type of
target audience. Furthermore, one of the key impacts of SEO for IKEA is that that it increases
traffic for their site by optimizing the site to rank better in search. In terms of Cost, SEO is an
effective tool because unlike SEM where you pay the search engines to display the website
SEO doesn’t require to be paid thus is cost effective (denver, n.d.).
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2. social media
Social media marketing is the use of social media such as Instagram, YouTube, and social
tactics in an (integrated) marketing perspective whereby several marketing goals can be
fulfilled and opinions of target audiences are taken into account to improve marketing
(listening and acting). Social media is an effective tool integrated marketing, because using
social media is another means to reach a larger global audience with your message. It is a
powerful tool for connecting and interacting with brand-new or potential clients. The tool has
created impact through helping IKEA grow by increasing brand recognition, customer
loyalty, new customers or conversions, and higher conversion rates. Furthermore, in terms of
cost, this tool is extremely cost effective compared to traditional marketing, where a lot of
cost is involved in billboards for example (tawde, n.d.).
3. content marketing
Content marketing is a technique that uses relevant articles, videos, and other media to
engage, attract and retain an audience, where the messages in each of the
content marketing campaigns integrate with the messaging throughout all the platforms,
which builds expertise, raises brand awareness, and keeps IKEA forefront, in its industry,
This tool is effective as its reach is wide such that the firm is able to target and interact with
specific target audience with its content catering to needs of the audience. Moreover, in terms
of impact, content marketing enables firm to increase market share through target audiences
in the market, and build consumer relations. The tool is also cost effective due to a variety of
approaches that provide access to low-cost marketing possibilities through social media and
brand loyalty (mailchimp, 2019).
4. email marketing
Email marketing is the use of email to promote products or services while developing
relationships with potential customers or clients. This tool is effective due to its ability to
send emails to far reaching target consumers distributed globally. It’s an impactful tool in
marketing as it is enables Sending email fast, free and far-reaching, thus is also a cost
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effective marketing as well as time saving tool and, which also provides insights when people
open the email and gain consumer loyalty (tawde, n.d.).
Analysing the effectiveness and benefits of applying the integrated marketing approach
Integrated marketing is a marketing strategy that emphasizes the necessity of providing
consumers with a consistent, seamless, brand experience, where each branding effort is
presented in a consistent manner that reinforces the brand's overall message (insights, 2021).
Increased leads
An integrated approach assists IKEA in reaching a wide range of consumers based globally
using different channels and tools such as social media, resulting in more leads and
ultimately, more conversions, which enhances its effectiveness. Using integrated marketing
approach enables targeting audience through both PR and digital media that does more than
just lowering costs thus is cost effective marketing approach and increases brand visibility,
which in turn results in more conversions, and lead generation as well as increased sales and
ROI.
Improved efficiency
Integrated marketing enables IKEA save time and cost for creating a marketing campaign
with elements such as Photography, graphics and all which comes with a price tag, through
enabling it to simply repurpose the content you’ve already written, instead of coming up with
new messaging for each different channel. This way Not only does this strategy reduce
IKEAs marketing costs, but it also keeps your brand’s tone and voice consistent across all
channels, thus making it a seamless experience for consumers, in a cost effective and time
effective way, while capturing interests of a wide range of audiences thus increasing market
share
Promotes brand uniformity
An integrated campaign is more effective. By communicating consistently via a variety of
channels enables IKEA to reinforce their brand message which, in turn, makes their message
more powerful. Moreover, through The uniformity of the messaging will increase brand
awareness and trust, leading to customers thinking of IKEA first when they are ready to buy
or refer you to a friend or colleague, which also helps generate website traffic, boost sales and
generate revenue for the firm.
Develops audience trust
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Customers are typically sceptical of advertisements because they believe that they are too
good to be true, thus IKEA can increase the likelihood that your target audience will give you
the benefit of the doubt and click on the extremely alluring link you have supplied through
integrating your messages and maintaining consistency, thus enabling IKEA in generating
leads and lead conversion, in a cost effective way while building the brand (woodland, 2017).
Critically analysing digital marketing to draw valid conclusions for effective marketing at
IKEA.
Definition
The use of digital channels to advertise products and services to consumers is referred to as
digital marketing. This sort of marketing makes use of websites, mobile devices, social
media, search engines, and other comparable channels and is frequently regarded as an
innovative technique for IKEA to approach consumers and comprehend their behaviour. It
also consists of aspects such as integrated marketing which allows it to create seamless
experience for consumers
There are different types of digital marketing such as:
Digital marketing entails several platforms, which make it effective and efficient for IKEA to
achieve and attain their marketing objectives such as increase brand awareness , market
share, generate leads and consumer retention in the most cost effective way, the platforms
include social media marketing which involves the use of social platforms like Facebook
Instagram to promote the business, affiliative marketing which involves the use of affiliates
to increase visibility and brand awareness, SEO where the website content is optimized to
consumer needs to increase visibility and increase website traffic, and email marketing where
emails
Digital marketing vs traditional marketing
On the other hand, traditional marketing is whereby firms such as IKEA focus on print,
television, and radio marketing however The advancement in internet and digitalisation has
brought about digital marketing, which has enabled IKEA attain a global reach in the most
cost effective way, as opposed to traditional marketing such as radio and billboards that have
limited audience reach and is even costly for firms.
Benefits of digital marketing to IKEA
Through Measurable and trackable outcomes Evaluating IKEAs online marketing with web
analytics and other online measure tools enables determining the effectiveness of its campaign
easier. Moreover, If IKEAs client database is linked to its website, you can greet visitors with
targeted offers whenever they visit. Global reach as a website allows IKEA to find new
markets and trade globally for only a small investment.
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Conclusion
All firms, large and small, benefit greatly from digital marketing. This sort of marketing
enables organizations to thrive by utilizing technology. However, in order to stay safe, users
must exercise caution when posting information on the internet. A balance must be struck, and
businesses should be charged based on the amount of data they possess (aplustopper, n.d.).
PART B
DIGITAL MARKETING CAMPAIGN
A digital marketing campaign is a well-planned online marketing activity that is carried out to
attain a specified goal(chris, 2022). In order to achieve its objectives, IKEA shall develop the
following Digital marketing campaign that will run for 1 year, between July 2022 – july2023:
Objectives for the campaign
To increase website traffic by 7000 visitors per month in 90days, through Search
engine marketing.
To increase IKEAs revenue by 100% by the end of July 2023 through creating brand
awareness using email marketing
To increase the number of IKEAs social media following by 30,000 by the end of July
2023 through implementing social media marketing and affiliative marketing.
To improve conversion rate and lead generation, by 50%, within 45 days through
content marketing.
Market and target audience
IKEA operates in a competitive market, within the furniture industry, with several
competitors. The firm consists of 464 stores worldwide, with an average customer base of
80million. As a result, the target market is segmented in terms of age, occupation, income
level, and lifestyle. The target audience comprises of young cost conscious Customers that
tend to be students or young adult professionals. Their salary ranged between Ksh15000 and
Ksh60,0000, they own an apartment or a townhouse, both husband and wife have jobs, are in
the primary age group 35-44, or the secondary age group 25-34, have two children, and they
change houses frequently, so IKEA products are very usable to that type of people because
product shifting is very easy.
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Message Design
We Are Glad You Are Here!! In today’s busy and high-end lifestyle, it’s difficult to find,
house fittings, and appliances that are lavish and opulent, while being cheap cheerful. But
IKEA got you covered! Find your desired, easy to assemble fitments and furnishings that
could be bought for a song. Subscribe to IKEAs newsletters, and follow IKEAs social media
platforms, for latest updates and promotions, or Visit the stores near you for the valuable
amenities that will compliment your house!!
Digital tools and channels
Digital
channels
Objective Activity/
strategy
frequency KPI Budget
Instagram Increase social media
following
Using affiliates
to post about
IKEA on their
platforms
3times a
week for 6
months
Views,
followers
shares
650,000
Facebook Enhance brand
awareness and reach
Using sponsored
ads. Connecting
with consumes to
enhance
engagement
3 times a
week for 8
months
Likes shares
views
follows
reach
500,000
Search
engine
marketing
Increase website
traffic, and lead
conversion
Paying search
engines to
display the
website on top to
drive traffic
4 times per
month Click rate,
bounce rate,
page views
800,000
Websites Increase conversion
rates and generate
revenue
Posting and
updating quality
content through
2 times per
week
Website
traffic, time
spent on
700,000
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hiring a content
writer
website and
CRO
Emails Increase
subscriptions rate,
reach, and brand
awareness
Sending emails
with content to
target audience
3 times a
week
Subscription
rate, open
rate
350,000
Channel Way of monitoring
Instagram Monitoring the followers to assess if there is
an increase in followers, and views gained
Facebook Monitoring the engagement of the posts,
through likes views shares and follows
Search engine marketing Observing if there is an increase in the
website traffic, through click rates.
Website Monitoring the website traffic, and leads
generated and conversion rate using google
analytics
emails Monitoring the open rate of the emails, and
the subscription rate to assess if there is
increase in the reach
Monitoring performance
Measuring success using benchmark techniques
Return on investment – return on investment (ROI) is a metric that will help measure and
evaluate the success of the campaign, through assessing whether there is a gain from
investment. An increase in ROI will mean that the effort of campaign is actually working,
and goals are being achieved, for instance revenue is increasing.
Click through rate – the click through rate will help determine the success of the campaign
and help assess whether the posts are gaining views, whether the website is gaining traffic.
For example, the sponsored ads on Facebook, through CTR, we can determine how many
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people clicked on the Ad and visited the Facebook page for IKEA which will help increase
visibility.
Lead generation- lead generation is a measurement technique that will help assess the
success of the campaign through being able to determine the potential organic traffic the
website is attracting, which will help knowing if the goals of increasing website traffic is
being attained.
Actions to improve digital marketing
Security
Security is an important aspect for digital marketing, as digital marketers may consist of
personal and private information of their customers, therefore, implementing and utilising
effective security measures will help prevent the theft and hacking of the websites thus
boosting the marketing experience.
Recruiting effective teams
recruiting and hiring effective markets, content writers, graphic designers, IT specialists and
research and development will help boost the digital marketing experience and ensuring that
the digital marketing efforts contribute to the company goals and deliver effective consumer
experience.
Constantly tracking performance
Using analytics metrics and KPIs will help track the performance of the digital marketing
efforts , for example insights post reach and post engagement, which will help derive and
optimise the digital marketing efforts to fit the trends and demand shifts .
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