IKEA's Digital Marketing Strategy: Ethical, Economic & Social Factors

This report provides a comprehensive analysis of IKEA's digital marketing strategy, covering various aspects such as ethical considerations, the influence of economic, social, and technical factors, and the benefits and shortcomings of social media in building the brand. It delves into ethical issues related to market research, data privacy, and intellectual property, along with the legal aspects of digital marketing, including quality, compounding, and listening. The report further examines how economic factors like inflation, income changes, and recession, as well as social factors such as culture, language, and consumer behavior, impact IKEA's digital marketing efforts. Additionally, it explores the role of technology in driving the success of digital marketing campaigns. The report also discusses the advantages and disadvantages of using social media for new business ventures and the impact on business partners, highlighting the importance of effective communication and brand image management.

Digital Marketing Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Ethical issue to control the approach of digital marketing in the business:................................3
TASK 2............................................................................................................................................5
Economic, social and technical factors which influence the successful growth of the digital
marketing strategy in the IKEA:.................................................................................................5
TASK 3............................................................................................................................................7
Benefits and shortcoming of the social media in starting the new business:..............................7
TASK 4............................................................................................................................................8
Effectiveness of the social web to building brands:....................................................................8
CONCLUSION..............................................................................................................................10

INTRODUCTION
Digital marketing strategy refers to the practices and actions of the IKEA which is used
to achieve the goals and objectives of the IKEA from the online marketing. The strategy of
digital marketing includes various channels such as social media, campaign of the business
which gives the success and the growth of the business in the present and the future conditions of
the markets. In this report it explains about the strategy of digital marketing of the IKEA. This
file determines the various ethical issues and development of the laws to control the approaches
of the digital marketing from internet in the business environment of the IKEA. IKEA is the
famous multinational IKEA which sells the large number of household furnitures. Headquarters
of the IKEA is at the Delft Netherlands. There are the evaluation of the social, technical and
economic factors which have impacts on the successful operations of the campaign of digital
marketing. This files also evaluates the social and technological changes which influence the
growth of the digital marketing in the business. This file also identify the advantages of the
social web for increasing the brands of the IKEA.
TASK 1
Ethical issue to control the approach of digital marketing in the business:
Ethical issue and social issues of the digital marketing in the working environment of the
business are very complicated. The ethical issues determine that the strategy of the digital
marketing increase the profits of the business or not. The lifestyle of the people, thoughts, beliefs
and different background which they belong which increase the variety of digital marker ting
strategy (Kingsnorth, 2019). There are various issues of the digital marketing strategy which
have impacts on the image and reputation of the business in the minds of the people.
Research of markets:
Markets research refers to the process of identifying the needs and wants of the customer
about the products and services of the customer from the digital marketing strategy. The research
of the markets gives the results and divides the people into the different categories. These
categories of the people are based on some factors such as interest, hobbies, income, education
and many more which affects the success of the business. The IKEA could target their customer
with the help of the effective and efficient strategy of the digital marketing and fulfills their
needs and wants in the different market situations.
Privacy and collection of the data:

Policy of the privacy should involve the list of the different types of collected information
is very important part of the privacy. The important information such as types of information,
how the business is going to sharing their information, effective and efficient data and
information of the privacy policy. In the business the IKEA have to include the changes should
be made in the privacy policy of the digital marketing strategy in the current and future working
environment of the business (Baltes, 2015). To protect the data and information of the customer
and the IKEA the policy of the privacy makes secure them and do not affect the business of the
IKEA.
Intellectual property:
For the protection of the intellectual property of the IKEA the business uses the
trademarks and copyrights in the business. The digital marketing strategy of the business ion the
current days are very common to use by every IKEA so the protection of the production and
services from the trademarks and copyrights are very useful that no one can steal ideas and
features of that products.
Laws of digital marketing in the business environment
There are various laws of the digital marketing which is use by the business in the
working environment to achieve the success and growth. These laws of the digital marketing
helps to achieve the successful operations easier and faster (Ryan, 2016).
Quality:
The IKEA focuses to apply the law of effective and efficient quality products and
services to the custom er by the use of the digital marketing in the business environme3nt. By
giving advertisement on the social media, TV, and newspaper for showing the quality products to
the customer to attract them and increase the sales and productivity of the business.
Compounding:
The law compounding on the social media is very essential in the strategy of the digital
marketing in the business. In the business the compounding helps to encourage the customer and
the viewers to share the content of the product and services of wewghat the IKEA is producing.
Listening:
Digital marketing strategy of the business leads to the success and growth of the business
by listening properly to the requirements of the customer. The needs and preferences of the
customer can be fulfilled only by proper and efficient listening of the views and thoughts of the

customer about the products with the use of the effective strategy of digital marketing (Chaffey,
and Ellis-Chadwick, 2019).
The ethical and legal issues of the digital marketing strategy in the business environment
of the IKEA have affects the efficient running of the business. For the effective communication
of marketing with the customer in the business these issues helps to make the good relations with
the customer. With the help of the market research the IKEA could know the needs and wants of
the customer and works to fulfill their requirements (Gulati, 2019). The information and data of
the customer should be private in the IKEA so the IKEA feels satisfied with the services of the
business from this the communication between the IKEA and the customer should be improved.
TASK 2
Economic, social and technical factors which influence the successful growth of the digital
marketing strategy in the IKEA:
To increase the success and growth of the digital marketing in the business influence the
factors such economic, social and technological in the IKEA.
Economic factors:
The economic factors like inflation, rates of the interest, taxes and recession and supply
and demand of the products in the business affects the marketing strategy of the business. The
economic factors have the direct impacts on the digital marketing strategy of the business.
Inflation rates: Rates of the inflation decrease the power of the purchasing of the
customer of the products and services of the customer. The digital marketing strategy of the
business are affected by the rate of the inflation in the economy. In the business of the IKEA if
the rates of inflation increases the purchasing power of the customer decrease and the IKEA
faces problems in the business of the furniture (Kannan, 2017). The digital marketing strategy
involves the number of customers towards the products and services of the IKEA. The success
and growth of the digital marketing in the business of IKEA by the rates of the inflation.
Changes in the disposable income: The digital strategy of marketing have affected by
the changes in the disposable income of the customer spending. If the rates of the unemployment
increases there is the decrease in the demand of the products and services of the IKEA and
simultaneously affects the strategy of the digital marketing.
Recession: Strategy of the digital marketing in IKEA are also affected by the recession in
the economy because the employment rate, income, and GDP reduces the demands of the

consumer and marketing strategy do not increase the sales and productivity of the business of the
furniture products of IKEA.
Social factors:
Social factors affects the growth of the strategy of the digital marketing in the business of
thMahmud, F., 2016e IKEA because the language, culture, laws, ideas, behavior, needs and
preferences o the people are different from each other. Advertisement on the social media and
television helps to enhance the customer but sometime people get affected by different culture
and language barriers in which the advertisement is showing (De Pelsmacker, Van Tilburg and
Holthof, 2018). The status of the customer also affects the process of the digital marketing for
the successful business of the IKEA in different situations of the markets. The behavior, attitudes
of the people towards the advertisement on the media are also different. The digital marketing
practices measure the needs and wants of the customer to reach the success and growth of the
IKEA by taking feedback from the customer about their products and improve them. Needs and
wants of the people are changes as per the changing trends and the IKEA have to change the
strategy of the marketing on the social media according to the changing trends.
Technological factors:
Technology is very essential factors which influence the digital marketing strategy of the
business of the IKEA. Technology need top be updated and reviewed on the continuous basis
because it leads to the success and growth of the business easily. With the help of the effective
and advanced technology in the business strategy o the digital marketing should be successfully
implemented and archives the goals of the IKEA. For the implementation of the digital
marketing in the business of the IKEA, they will spend their money in the purchase of the
effective equipment and services (Ozuem, 2016). These equipment and services of the advanced
technology helps in the success and growth of the campaign of the digital marketing in the
IKEA. Technology changes very fast so there is need to changes the v strategy of digital
marketing for the successful operations of the campaigns of the IKEA.
TASK 3
Benefits and shortcoming of the social media in starting the new business:
There are various benefits and shortcoming of the social media in starting of the new
business because it helps enhance the products and services of the business in the minds of the
customer.

Positive:
The social media attract the customer towards the products and services of the IKEA and
increase the productivity and sales of the business. In stating the business of the IKEA social
media helps to make their brand as the leader in the business of the furniture. The customer can
learn about the products and services of the IKEA from their websites which they made in stating
of their business (Baker and Saren, 2016). These websites attract the customer and manage the
image of the business this will increase the sales of the business. Social media helps to reach the
large number of population within seconds.
Negative:
In starting of the business o the IKEA the negative effects of the social media affects the
success and growth of the business because in the starting stage the IKEA cannot attract the
people easily for their products and services. The department of the digital marketing have to
spend lots of money and time in attracting the customer towards their products and services.
One of the biggest drawback of the social media is that it consumes the times business attracting
the customer towards the products and services. In starting the business of the furniture IKEA
they also get the negative feedback from the customer because the IKEA is not known to the
customer (Taiminen and Karjaluoto, 2015). So it takes lost of time making the effective image
and reputation of the brand.
Advantages and disadvantage of business partners from social media
The business partners face lots of advantages and disadvantages from the use of the social
media in the business because of the use of the Facebook, Instagram and link-din helps to
interact with the customer easily and faster.
Advantages:
The partners of the business focuses to make the effective relation with the people living in the
different countries With the helps of the Facebook and Instagram different types of people get
connected. By posting pictures on the social media business partners makes the effective image
of yourself in the minds of the customer and makes the positive relation on their behalf. Social
media aware the customer about their products and services which is used by business partners
(Chaffey and Smith, 2017). Larger the number of followers on the social media profile business
partners provide information of their products and services to the customer.

The people like the post of the business partner and shows their response towards the
products and services. The sales and production of the business of the IKEA increase when the
larger numbers of customer are connected on the profile of Facebook, Instagram and link-din.
For example if the business partner wants to increase the number 0f customer for their products
and services the post of the Instagram and Facebook attract them, and they start purchasing if
they liked that post.
Disadvantage:
The partners o the business faces lots of drawback with the use of the social media like
Facebook, Instagram and link-din because if they don't liked the products and services of the
IKEA they comment on the post and distract the other people from the products. The negative
feedback of the customer on the post of the business partners may affects the image of the brand
and also affects the image and reputation of the business partners as well. Sometimes the social
media does not express the real features of the products and services and people will
misunderstood about that (Key and Czaplewski, 2017). For example if the people post negative
comment on the Facebook and Instagram post of the business partner they customer who have
some interest in the products are also get influenced by the negative comments, and they stop
their purchasing from that IKEA.
TASK 4
Effectiveness of the social web to building brands:
Effectiveness of the social web to increase the image of the brand of IKEA and Morgan
furniture of the UK increase their sales and productivity of the business. The social media helps
the IKEA to improve the image of the brand and makes the business popular in the people of the
UK but in case o the Morgan furniture the image of the brand decrease by getting the negative
comments of the social media. The customer increase their trust from the good post on the social
media and attract towards the products and services while in the business o the Morgan furniture
the bad reviews impacts on the loyalty and trust of the customer on the social media (Edmiston,
2015). The IKEA organize their campaign on the social media to increase the image of the brand
ion the minds of the customer but the Morgan furniture faces various loses due to the use of the
social media.
The production capacity of the Morgan furniture reduces and it reduces the image of the
brand also in the minds of the customer. IKEA takes the full advantages of the social media and

increase their sales and productivity to increase the image of the brand on the online platforms.
Posting on the Facebook, Instagram and link-din promotes the image of the brand by getting the
best and effective review of the customer and attract different kinds of customer from different
cities (Felix, Rauschnabel and Hinsch, 2017). The Morgan furniture loses their existing customer
from getting the negative review on the post o the social media and it will affect the brand image.
The social media marketing of the IKEA helps to make the effective relations with the
people and make them feel satisfied by the products and services of the business this will
enhance the image and reputation of the brand. There are lots of people use the social networking
sites and the positive and negative comments may affects their behavior attitudes and ideas of
purchasing from the IKEA. So the social makes the image of the brand of the IKEA. IKEA will
improve the performance pf working from getting the feedback from the customer. IKEA uses
the effective strategies of marketing in the business by using the social media and increase the
image of the brand and makes the products and services visible for the customer in continuous
bases (Mahmud, 2016). The performance of the Morgan furniture reduces because their image of
the brand also reduces by the negative reviews from the customer about the products and
services.

CONCLUSION
From the above study it can be concluded that the digital marketing are very essential for
the successful business of the company in different situations of the markets. There are various
ethical issues and laws which affects the digital marketing in the business environment of the
company. The effective and efficient strategy of the digital marketing helps to reach to the
success and growth of the business. Social, technological and economic factors influence the
campaigns of the digital marketing in the business. By giving advertisement on the social media,
television, and newspaper company could show their feature of the products and services and
attracts the customer and increase their sales and productivity of the company. To make the
image of the brands in the minds of the customer the business digital marketing helps the
business to make the good and effective images of the brand. The good image of the company
influence the customer to invest their spending in the company.

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