Digital Marketing Strategy Report: Ethical Issues at IKEA

This report provides a comprehensive analysis of IKEA's digital marketing strategy. It begins with an introduction to digital marketing and then delves into the ethical issues faced by IKEA, such as data protection and misleading advertising. A PESTLE analysis is conducted to evaluate the political, economic, social, technological, legal, and environmental factors influencing IKEA's digital marketing efforts. The report also includes a critical analysis of social media, exploring its benefits such as connectivity, education, and awareness. Furthermore, the report assesses the effectiveness of social media in building the IKEA brand, covering aspects like community building and customer engagement. The conclusion summarizes the key findings, emphasizing the importance of ethical considerations and strategic planning in digital marketing for a global brand like IKEA. References are provided to support the analysis.

Digital Marketing Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Ethical issues of the IKEA in digital marketing.........................................................................1
TASK 2 ...........................................................................................................................................3
Pestle analysis .............................................................................................................................3
TASK 3............................................................................................................................................5
Critical analysis of the social media ...........................................................................................5
TASK 4 ...........................................................................................................................................7
Analyses and evaluate the effectiveness of the social web for the building brands ...................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Digital marketing at higher level refers to advertisement delivered delivered via digital
channels like search engines, social media, websites, e mails and the mobile applications (Spiller.
and Tuten, 2015).. The term covers wide range of the marketing activities, that are not
universally agreed. It refers to marketing of goods and services with the use of digital
technologies over internet through apps on mobiles, display advertising and many other digital
mediums.
TASK 1
Ethical issues of the IKEA in digital marketing
In integrated digital marketing there are many types of tools and techniques used. This is
a way of advertising products through social media, internet, etc. It requires effective design and
content through which marketing is done (Chaffey,and Ellis-Chadwick, 2019). However, it is
necessary for business to maintain security of data and information in it. Alongside, they have to
work in ethical way so that their brand image is not hampered. In digital marketing there are
many ethics that has to be followed. But sometimes, many ethical issues occur which highly
impact on marketing activities and brand image of organisation. The organisation needs to be
transparent in order to sustain in market. They must provide relevant and precise data of products
and services. These marketing channels are based on systems over internet that could create,
accelerate & transmit the value of product from producers to terminal consumers through digital
networks. The development of digital marketing began in 1990s and is evolving with the
dynamic business environment. Digital reforms are very properly included in the marketing
strategies of businesses. It is helping the organization to expand their business cross borders. The
report will reveal about the use of digital marketing in the business and its importance in the
growth of the business. It will also include the marketing strategies PESTLE for analying the
market factors influencing the businesses.
Data protection and privacy law
This is the main ethical issue that occurs in digital marketing. It is important for business
to protect and secure data of consumers. The data is related to age, gender, etc (Ryan, 2016). of
people. But sometimes, they work in unethical way and provide crucial data to third parties. So,
this activity in illegal in marketing and some countries as well. Here, companies often leak data
1

of consumers by giving fraud advertisement. It also impact on marketers as well. For example –
Facebook and Google often practice this to earn extra income (Mooney. and Slobodian, 2016).
Misleading Advertisement
Advertising is majority the concern for the digital marketing companies like IKEA as it s
consider as the another grey area such as an advertisement about the toothpaste that it 100%
makes the yellow teeth white but in reality it is up to 40% it makes the effect as the test shows
that. The reasons marketers cab legally get way due to the firm can complete 99.99% under the
lab conditions (Kannan, 2017). Digital marketing allows the companies like IKEA to reach the
new audiences mostly by internet ,smartphones devices and computers.
There are some differences within the educational background between the target market
and marketers that can be difficult to relate as well as draw within the target market effectively.
IKEA must be careful as not to lose the connection to the target market's interest as well as
priorities. Scams and Fraud Various examples are available that the people commit fraud by
the help of the social media. Security issues Personal accounts of the people have access by the
security agencies that makes the privacy compromised as they are visited through any
investigation officer regarding any problem that can be mistakenly as well as unknowingly
discuss on the internet (Chaffey,and Ellis-Chadwick, 2019). Cheating Most of the individual
have a negative bad impact on the issues regarding the bad health . Since Exercise is a key for
the good health mos of the people can avoid it and becomes lazy as they spend most of the time
on social media sights. People also sleep late at night and wake up late at morning and the
outcomes brings the disorder in their routine life. This will shows that how the
Bad it affected their health (Chaffey. and Smith, 2017).
IKEA is the leading marketing brand that has been very popular in furnishing sector.
Every organization somehow faced some issues related to ethically, legally etc. as IKEA also
might have been through from such issues which is related to Digital marketing. IKEA presented
their image in very unique manner. IKEA itself is a big world for customers. It has well
designed, low cost products and specially eco-friendly. For that IKEA stores having own play
area for students where they handle children which is called Smaland. Parents can drop their
child off in the play area for upto 1 hour free of charge as they go shopping. IKEA having
different strategies to prevent themselves from the ethical issues. Also, it includes more leading
approaches towards protecting enviornment.
2

TASK 2
Pestle analysis
Pestle analysis of the digital marketing is impact on the business in terms of product as well as
services (Baltes,2015).
Economic factors
Economic crisis
Through the international laws IKEA is affected as they are considered to the susceptible to all
over the world as some new brands can suffer from their 2007 recession. Many people lost
their jobs and also affects the negatively (Chaffey. and Smith, 2017).
One of the most crucial economic factors that effects IKEA is Consumer spending power and
macro economic situation and also affect the performance of the firm. As the crisis of 2007-
2009 there is an impact of the external factors on the business. Thus, it is crucial to note that
the influence of the crisis was considered as a lesser extent for IKEA as compare to the various
other business due to the cost leadership strategy regarding business. Particularly IKEAS is the
one has to eliminate around 5,000 jobs as the sale's volume decreased and only if 1 % through
the second quarter of 2009 (Yasmin, Tasneem and Fatema,2015).
Changes within the currency Exchange rates
Revenue of the IKEA are directly effected by the exchange rate fluctuation between the
USD and EUR as well as the major currencies because of the global scales regarding e business
operations. The largest firm of furniture retailer attempts to address the influence of the
modification within the currency exchange rates by engaging within hedging initiatives.
Particularly the firm has to accepted producing products and sourcing products locally as they
consider one of the main tools to deals within the currency exchange rates. Such as amid
weakening pound against dollars and euros .( De Pelsmacker Van Tilburg. and Holthof, 2018).
The Furniture of the Swedish chain as to planned to double the numbers of the products locally
within the local market of he United Kingdom. So It able to decrease the negative influence of
the change of the currency rates regarding for the business.
Fluctuation of the cost of the Raw Materials.
Cost of raw materials fluctuates such as wood as well as metals IKEA is considered as
the major economic factor that also influence the significance of the business. The prices of the
food fibers within the western hemisphere that is the biggest region for firm IKEA was
3

considered as the unstable for past four years within the direct implications on the cost of the
raw materials regarding the furniture retailer a metal is highly inconsistent (Yasmin, Tasneem
and Fatema,2015). This can also highlight as another economic factors hat able to effect the
bottom line regarding the largest furniture retailer.
Social factor
The social factors that impacted the firm IKEA include the following factors.
IKEA requires to carefully aware about the health standards, harassment claims reaction as
well as importance of the protection of the environment that prevails within the industry .( De
Pelsmacker Van Tilburg. and Holthof, 2018).
Demographics of the population for example meaning of the respective ages as well as
genders . Targeting majority population of a female rather than the male population Makeup is
mostly catered to the women.
The class distribution is also vital among the population. To promote a premium product IS
unable for the IKEA regarding the public as if the majority population was lower class they are
directly depends on the very niche marketing (Yasmin, Tasneem and Fatema,2015).
Technological factors
The impact of the technology on the basis of the cost that most of the companies within the
industry are subjective to have the potential to enhance or eliminate the resulting profits greatly
in number as they can reinvest into the research as well as development where future
technological innovations would further raise the levels of the profits and also assuring
sustainable profits all long period .( De Pelsmacker Van Tilburg. and Holthof, 2018).
How easy as well as quickly that the technology diffused to the other forms within the industry
that leads to the other firms copying the technological process that are featured through IKEA.
Technological factor is highly influencing methods that enable to attract customer preferences
towards the brand. IKEA using modernization applications and regain the interests of their
customers. Such as IKEA using photo realistic renders of its products and services instead of
photographs for quite some time. Also IKEA indulge with virtual reality, wireless IKEA
cataloger. Smart lighting and solar panels. The latest technology adopted by the IKEA is
augmented reality applications which is automatically present the rough map of furniture at
anyplace.
4

TASK 3
Critical analysis of the social media
Benefits of social media
Connectivity
First and foremost benefit of the social media is that it provides the connectivity. As people
from any religion, location can be connected with to learn as well as share their thoughts
(Yasmin, Tasneem and Fatema,2015).
Education
A lot of benefits to the teacher and students takes from the social media . As it is very simple to
educate from who's that are knowledgeable at their field through social media with a
minimum amount of charge. You can learn from anyone from any field (Confos. and
Davis,2016).
Help
To get the help and guidelines anyone can share their issues with the community helping in
terms of advice and money.
Information as well as updates
To update oneself is the main benefit regarding social media such as from the latest
happening all over the world. Mostly print media and television are biased as well as unable to
convey the true messages. As social media helps any individual to get the facts as well as true
information doing some research ( Watrobski,Jankowski. and Ziemba,2016) .
Noble causes
It can also be used for the noble causes such as to provide the donations for the needy
people ,to promote the NGO and also social welfare activities. Nowadays people are using
social media to help the needy people as it is the quickest way to help anyone (Spiller. and
Tuten, 2015).
Awareness
Social media is also used to creates the awareness as well as innovate the way a people
live. It is the social media that has helped people to discover new as well as innovative stuffs that
increases personal lives. As any section of the society such as teachers, farmers and security
agencies to spy as well as catch criminals to a fight crime (Bhowmik and Bag, 2017).
Assist in building the communities
5

With the help of the social media it helps in the building as well as participating within the
community of own regions and beliefs to discuss and learns about it. People of various
communities can connect as well as share resulted stuffs such as doctors joins the medical
communities ,game lover joins the games related communities and many more (Confos. and
Davis,2016).
Promotion
Social media helps the various business to promote them such as form the helps of the
Facebook various business can promote the advertisements and also Instagram plays a vital role
as it focuses mainly on the pics such as pics of the restaurants and YouTube also provide the
promotional advertisements of the various brands.
Help govt and agencies fight crime
It is considered as one of the social benefits that assists the government as well as
security agencies to spy as well as catch criminals regarding the fight crime.
Disadvantages
Hacking
Personal as well as privacy data hacked easily. As it share on the internet that can
makes the financial losses as well as loss regarding personal life. Also, identify theft issues is
another issues that provides the financial loss to anyone through by hacking their personal
accounts ( Watrobski,Jankowski. and Ziemba,2016) . Various personal Facebook and twitter
accounts had been hacked within the past. Various posted materials can posted by hackers that
can be effected the personal lives of the People. Basically one of the dangerous disadvantages
regarding the social media is hacking so that every user that is well-advised to keep their
personal data in a safe manner so that accident regarding the personal issues can be solved easily.
( Watrobski,Jankowski. and Ziemba,2016) .
Addiction
The addiction of the social media is not at all good as it can disturb the personal lives and
professional life Teenagers are the people who are most affected by the social media's addiction
as they are involved very extensiveness as well as eventually cut themselves from the society.
They are not involving with others . This can also reduce their efficiencies and also the waste of
time that can be used for the productive work ( Watrobski,Jankowski. and Ziemba,2016) . Cloud
computing also serves the big data as well as handle the information of the Hilton Hotel as by
6

the use of the cloud computing , the staff members access the information of the firm, and they
are collaborated with their staff members within real time. It can increase the commitment
towards the team work as well as gain a competitive advantage. If the firm has the more
competitive advantage than it means that means the customers have more awareness about the
brand ( Watrobski,Jankowski. and Ziemba,2016) .
TASK 4
Analyses and evaluate the effectiveness of the social web for the building brands
Social web basically the series that are interconnected system, methods and process that allows
human beings to communicate with each other and also establish social relations. They included
the social media platform and e-commerce platforms. They involve various new technologies
such as data analytic ,cloud computing and IOT by which the humans are interacted with each
other ( De Pelsmacker Van Tilburg. and Holthof, 2018).
Positive impact of the social web
Social web assists the business within building its positions as well as more imperative
for them.
Enhanced awareness
With the help of the social web the Companies like Hilton Hotel they are able to connect
with the costumers as they need social media platform for advertising the services . The use of
the different social media websites is able to connect with a broad range of the people as well as
advertising the services and products of the Hilton Hotel. This can assist to build the awareness
of the brand among the minds of the consumers and also assists to recognizes the brand
awareness of the Hilton Hotel .( De Pelsmacker Van Tilburg. and Holthof, 2018).
IKEA uses the cloud computing that is able to store the data as well as information of
their valuable consumers that eventually assist the IKEA to reach the consumers as well as
marketing the products of the IKE. Here the impact can be positive as firm can easily attract the
more number of the customers and also more numbers of the consumers able to establish
positions within the market. Such as Cloud computing consumers as they give the feedback
regarding the service quality of the IKEA products and this assist them to improve their products
when they required (Yasmin, Tasneem and Fatema,2015).
Competitive advantage
7

The social web also assists the IKEA to accomplish competitive advantages as well as
also assist them to survive within cut-throat competition. The different e-commerce platforms as
well as websites assist to build the brand loyalty among the consumers as well as enlarge the
customer base. By the help of the social web the firm like IKEA is able to improves the
efficiency of their employees and also enhance the productivity. With the help of the social web
such as IOT management of the IKEA .( De Pelsmacker Van Tilburg. and Holthof, 2018). It is
also able to interact with their staff members as on the regular basis that enhances their
motivational level as well as also increases the performance of the staff members. Competitive
advantages means hat there is an awareness of the costumers about the brand is more as it assist
in building brands among customers. Such as with the help of the social web it increases the
communication among the customers and reduces the workload. Due to this it increases the
efficiency and also it is very well saying that better employees means the better name regarding
brand (Confos. and Davis,2016).
Negative influence
Chance to disclose the negative information that is confidential
It is not always to protect the private inflammation of the firm. If accidentally or by
mistaken IKEA can share its important t information to the other company. So it becomes very
late to clear out the business oriented information as because on the social media it can spread
too quickly and there is no single chance that information can be recovered. Various firm faced
this type of the mistakes and hence the consequences is very bad. So there is a need of the more
carefulness about such kind of the issues (Spiller. and Tuten, 2015).
Enhance sales and generate leads
Social web is consider as the most to boost the sales as well as generate the leads with
the helps of the different e-commerce websites as well as platforms ,firm is capable to send
personalized messages to their consumers that are ready to launch the products ,cashback and
many more. This assist to generate leads as well as enhanced sales. Such as starting campaign
regarding to the digital marketing of the Hilton Hotel as well as Social web tools that assist
Hilton hotel to make their guests aware about the campaign as also attracts them (Spiller. and
Tuten, 2015) . The digital technology has made the company to have global presence, now the
companies could be accessed from anywhere in the the world. Products of the company are
available across borders. Through digital marketing companies have doubled their revenues.
8

Therefor every business organization is giving special preference to the digital marketing while
framing their business strategies
CONCLUSION
From the above research it had been concluded that digital marketing is very essential
for the growth of the business. It is required for the business organization to effectively use the
digital technology for the success of the organization. The report has given the understanding
about the utilize of digital technology within the business organization and the importance of
digital technology. Digital technology has provided number of platforms to the organization to
spread its business.
9

REFERENCES
Books and Journals
Baltes, L.P., 2015. Content marketing-the fundamental tool of digital marketing. Bulletin of the
Transilvania University of Brasov. Economic Sciences. Series V.8(2). p.111.
Bhowmik, S. and Bag, S.N., 2017. Prospects and scope of digital marketing in indian industry: a
review. International Journal of Management Research and Reviews.7(4). p.490.
Chaffey, D. and Smith, P.R., 2017. Digital marketing excellence: planning, optimizing and
integrating online marketing. Taylor & Francis.
Chaffey,and Ellis-Chadwick, 2019. Digital marketing. Pearson UK.
Confos, N. and Davis, T., 2016. Young consumer-brand relationship building potential using
digital marketing. European Journal of Marketing,.50(11).pp.1993-2017.
De Pelsmacker, P., Van Tilburg, S. and Holthof, C., 2018. Digital marketing strategies, online
reviews and hotel performance. International Journal of Hospitality Management, 72.
pp.47-55.
Dodson, I., 2016. The art of digital marketing: the definitive guide to creating strategic,
targeted, and measurable online campaigns. John Wiley & Sons.
Kannan, P.K., 2017. Digital marketing: A framework, review and research agenda. International
Journal of Research in Marketing.34(1).pp.22-45.
Mooney. and Slobodian, 2016. Seeing the wood for the trees: Fixing large undefined problems in
digital marketing. Journal of Digital & Social Media Marketing.3(4) pp.294-303.
Ryan, D., 2016. Understanding digital marketing: marketing strategies for engaging the digital
generation. Kogan Page Publishers.
Spiller, L. and Tuten, T., 2015. Integrating metrics across the marketing curriculum: The digital
and social media opportunity. Journal of Marketing Education. 37(2).pp.1, 14-126.
Watrobski, J., Jankowski, J. and Ziemba, P., 2016. Multistage performance modelling in digital
marketing management. Economics & Sociology.92. p.101.
Yasmin, A., Tasneem, S. and Fatema, K., 2015. Effectiveness of digital marketing in the
challenging age: An empirical study. International Journal of Management Science and
Business Administration.(5).pp.69-80.
10