Analysis of John Lewis's Online Marketing and Digital Media Usage

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This report provides a comprehensive analysis of John Lewis's online marketing strategies. It begins with an introduction to online marketing, emphasizing its importance for a leading brand like John Lewis. The report then delves into the micro and macro elements influencing e-commerce success, including customer behavior, competitor analysis, and political, economic, social, technological, legal, and environmental factors. It examines the digital marketing mix (price, place, product, and promotion) and explores various e-marketing tools, such as mobile applications and social media. The report further details online order processing, search engine marketing (SEM), opt-in email marketing, and public relations strategies. It highlights the significance of these elements in building and maintaining relationships with stakeholders and achieving marketing objectives. The report concludes with a discussion of best practices for online public relations, making it a valuable resource for understanding John Lewis's approach to online marketing and digital media.
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UNIT 30
JOHN LEWIS
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TABLE OF CONTENTS
Introduction..........................................................................................................................................3
Task:1....................................................................................................................................................3
1.1................................................................................................................................................3
1.2................................................................................................................................................3
1.3 ..............................................................................................................................................4
1.4................................................................................................................................................5
2.1................................................................................................................................................6
2.2................................................................................................................................................6
2.3................................................................................................................................................7
2.4................................................................................................................................................7
3.1................................................................................................................................................8
3.2................................................................................................................................................8
3.3................................................................................................................................................9
Task:2..................................................................................................................................................10
4.1..............................................................................................................................................10
4.2..............................................................................................................................................10
Conclusions.........................................................................................................................................11
References..........................................................................................................................................12
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INTRODUCTION
Marketing is a very much broader concept which is spread globally. As the term is broader it
comprises of many elements and one of its most important factor is “Internet marketing/Online
marketing”. Online marketing is the process of promoting the products and services with the help of
the most updated tools and mechanisms on the internet. Internet is a window to the outside world.
The concept of online marketing is the most upgraded and fastest means or channel of marketing.
John Lewis is a leading brand and a chain of departmental stores throughout Great Britain and
which is headquartered in London. The below carried analysis comprises the elements and mix of
online marketing, the mechanics of internet marketing and uses of digital media to a business for
the above mentioned organization.
TASK:1
1.1
Online marketing is also known as digital marketing. After the introduction of internet as a
means of promotion the concept of selling and buying the products and services has changed
(Baiely, 2011). Now the consumers prefer internet a way better option for shopping, So the John
Lewis group should focus on developing methodologies and strategies for E-marketing in order to
retain the existing customers and regaining the new ones. The major elements which contribute in
the success of an e-commerce of the organization are explained below:
Micro Elements
Customer is the most dominating factor of micro environment and all the strategies and
plans of an organization depends totally on the needs and wants of the consumers (Wong, Chan and
Leung, 2005). Slight changes in his tastes and preferences will make the marketing team to make
changes in the plans and strategies.
Competitors are considered to be the most common barrier in the grounds of competition
and this factor can easily influence the marketing decisions of the organization. For instance John
Lewis competitors has launched a new range of formal apparels in low price then this will surely
effect the decisions of the organization (Simmons, 2008).
The workforce or the employees of the organization are to be included in this list. For
instance if the team member itself in the marketing departments wont be working efficiently then
the implementation of the decisions wont reach to the desired and maximum limit (Smith, 2012).
Macro Elements.
Political factors refers to governmental policies or regulations. This also includes legal
components such as rules and norms related to corporate sector, business regulations and
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prohibitions etc. Economic factors are the characters which include development of an economy,
rate of employment and unemployment, costs of fuels and raw materials, rate of inflation in the
economy (Schibrowsky, Peltier and Nill, 2007). The components vary and changes from region to
region and country to nation. Social culture refers to the civilization, morals and ethics used by the
organization. The culture of a firm can also include demography, age, standard of living, lifestyles
and income ratios of the society. Technological factors consists of all the innovations and
discoveries, developments and up-gradations, the changing and the latest trends in e-commerce and
in internet. It also includes the new methods and techniques used in production and marketing
activities. Legal factors are the laws and norms laid and implemented in the economy whether they
prove favourable or unfavourable for the organization (Pomirleanu, Schibrowsky and Peltier, Nill,
2013). Environmental factors contain percentage of natural resources , waste decomposing and
recycling processes adopted by the organizations.
1.2
Digital marketing mix is as same as marketing mix. The use of Four P's (Price. Place,
Product and Promotion) in the digital marketing context is the one and only difference between
these two sets of mixes (Chaffey, 2008). So below it is explained how John Lewis group can apply
this concept to its organization so to achieve the desired objectives:
The most important component of the e-marketing mix is Price. It is the value of the
company's product or service which the customer pays for enjoying it. The company can
use penetration pricing strategy as this marketing concept is widely used. So the
organization should keep the price of the products low so as to gain new customers and
retain the existing ones.
The organization should carry out some surveys or researches for making the product list
to be sold on their online stores. This will help them in saving time and money as well as
time and efforts of the customers the more familiar the products more will be the
chances of a quick sale.
Reaching the products to the customers in time is also an important factor. So as being
online the organization can easily find the easiest routes and ways to deliver the goods to
the customers. Also the company can make available the products on the online stores
according to the areas, regions and the crowd or population and their likes and dislikes.
This is the best component of the mix for digital marketing. Promotion can be done on
its best level through e-marketing as it is the widest means used in today's world. John
Lewis group can use promotional techniques, such as discount coupons, gift hampers,
promo codes and also can organize some contests so as to get involvement of customers.
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1.3
E-marketing is anything which is done through the means of internet. So the tools of this
marketing concept are methods or the systems used to maintain this process (Chaston, 2015). Some
of the tools of the above mentioned concept are social media, blogs, emails/sms, ads and many
more. From these the two tools are compared below:
Online applications
The John Lewis group can launch its personal online mobile application so as to make its
products and services more popular. As each and every person won’t be able to make
possible the use of computers but can use his cell phones for the same.
As applications are mobile friendly they are easy to use and easy to operate. The buying
process is also made quite simpler and shorter for the application.
Now a days applications have become more familiar as the use of cell phones have
increased tremendously.
But besides this there are some disadvantages also as this tool totally depends on its
installation and use. The tool will be useful for the company only if the customer installs it
and start using the same.
Social media
Social media is one of the best and biggest platform which an organization can use promote
and market its products at a wider range.
Through posting ads on Facebook, twitter can make the organization more popular and
familiar as these social media are used globally by each and every category of the
customers.
The best benefit of using this tool is its availability and its easy approach. The company can
make its products available at a very low cost with a high effectiveness through these social
media.
1.4
A method or a system or a mechanics which is used by the companies through the internet to
take orders, make payments is known as the online order processing (Lantz, 2009). As this is a very
popular concept John Lewis group can use this in increasing the efficiency of the company's sales
process and also the audience will get connected with company through online interface. The online
system of order processing is explained as follows:
The process starts with ordering the product. This is the initial step in which the buyer
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checkouts the desired products and then confirms for the same. He will receive an order
confirmation sms/mail regarding his order.
After the order confirmation the buyer needs to fill the billing details as prescribed in the
site. Then he have to choose the modes of payments accordingly available for the same. The
billing details are the delivery information’s through which the order will reach to the
desired place on the specified date and time.
After the order confirmation the company or the concerned organization send the product
with details mentioned in the order for shipment. Now the buyer receives a mail or sms
regarding the despatch of his order and through which the company provides tracking
details through which the buyer can track its order.
Delivery is the last step in online order processing. But after getting the order delivered
safely and as desired by the consumer the company provides after sales service. The process
is totally safe and secure in terms of our personal details and payment details. Not a single
word is disclosed on the end of company.
2.1
The paid advertisements by a company presented on search engine result pages (SERP) is
known as search engine marketing (SEM). SEM is the most popular and easiest way to promote
your products and services and also important factor in the growth of the business (Lu and Julian,
2007). This term is used to evaluate people's exposure, opinions and attitudes. In the following
figure SEM is shown in generic point of view.
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There are some major ways by which the establishments make the relations such as E-
newsletter, investor relations, web-cast, corporate events and sponsorship. The entities can sell its
products and services easily by opting the methods of public relations. The corporation can
advertise about the goods, which are being sold bit through graphical advertising on World Wide
Web that appears next to the content on web pages, IM application, E-mail. These advertising tools
include text, blogs, logos, pictures and rich media. Rich media is also known as interactive
multimedia. Therefore online marketing is the best way to make the healthy relationships with the
stakeholders of the enterprise. Another prominent part of online marketing is webcast.
2.2
A type of business emails sent to whom who have signed up specifically for receiving the
same is known as Opt in email. The one and only single factor of this mailing system is permission
is required for sending the mail (Leung, Xue and Bai, 2015). This factor is one of the biggest
benefits for the company as it will help the organization to know the count of customers who are
really interested in getting the mails. The concept of email marketing is further explained with the
benefits:
The example of opt-in email newsletter is presented below:
Greetings.
Up-to 25% Off on all kitchen appliances.... Avail before it ends.
John Lewis Clearance More Of What You Love For Less. Now On. Just by taking few steps faster
ahead you can avail the amazing and mouth watering discounts. You just have to visit the nearest
stores and company's outlets or also you can directly make the purchases through online mode on
official website of Johnlewis.com
Just rush fast to the nearest store or login to the online portals and make the purchases of
minimum £250 or more (Omar, Bathgate and Nwankwo, 2011).
Number of Gift hampers and bumper prizes at every weekend.
MORE OF WHAT YOU LOVE.
Johnlewis.com
2.3
Maintaining, building and managing communications between the company and the
stakeholders is the act which is well known as Public relations. The stakeholders are the most
important and the key factor for this act and also for any type of business organization. The
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stakeholders can be the clients, or the Board of directors of the company, or they can be the
shareholders (Bothos, Apostolou, and Mentzas, 2009). The company should share a good bond or
should maintain a good and professional relation with them as they are from one of the key factors.
The above concept focuses on the target segment, communities and the customers who mostly rely
on internet. The guidelines for best practices of online public relations are explained as follows:
The organization should have a good knowledge about the market and the customers. In
addition it will be more profitable to know which product is used by which group of people.
And done accordingly will increase the interest of consumers in the organization's brand
which in turn results in a good and strong relation.
Company should prepare a schedule based on the timing used by the public or on which
time they mostly see the brand's ads. On that time the posts and updates should be put on
and will be seen by the customers.
Feedback means asking for reviews against the products and services provided by the
organization. This will enhance the interest of the customers as they will fell themselves a
part of the company.
2.4
The combination of text, graphics, audio and video which is transmitted through the internet
on the computers is defined as digital media. It is the digital media which have made possible the
fastest communication process, sharing of files, audio, videos and many more such things which are
on your computer (Smith, 2012). This method has brought a big change in the way of
communication whether it is personal, schools or even for business organizations. So now further
the the benefits of this type of communication for any John Lewis is explained below:
It is the digital media which has made the companies to reach their information to their
customers and audience faster, as the organization will not have a need of waiting for the
newspapers or TV ads. John Lewis group can let know their clients about the promotion on
sites, through emails and ads on internet and on social media.
This media has a greater reach. With a single touch the organization can promote and reach
to a very large number of audience. The company just needs to use proper mediums such as
Facebook, emails, blogs etc. as these are the most used options on the internet.
Digital media is one of the greatest creation of new modern technology and by using this
option the business organization can add an important and valuable asset. Through the use
of this media the organization will be positively influencing the other areas of the business
as it will help in communicating the employees in an easier way.
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3.1
Secondary research is defined as the research carried out on the existing books, journals and
analysis done on any subject. The research other than primary research is also known as secondary
one. This concept also includes getting information from other reports, collecting data from
websites and other types of records (Simmons, 2008). There are mainly two methods of carrying
out secondary research. The followed points explains one of the method of secondary research
which can be done by John Lewis group:
Internal sources.
The organization can user internal sources for carrying out the secondary research. The
method includes the research on the existing data, records or the filing system of the
company. The information already stored in the form of files or records proves useful in this
concept for the future references.
The method proves to be important and useful in developing new strategies,, improving the
existing the products and services.
The useful components of this type of research are the balance sheets of the company. The
can be useful in finding the spastics and mathematical data related to the future projects,
To increase the profit ratio and to see which products have proved themselves the most
profitable previously. The company can refer profit and loss statements.
Inventory records and the sales figures can also be useful while carrying out this research.
3.2
A set of questions prepared on any concerned topic and targeted to a part of audience
through the means of internet is known as online survey (Omar, Bathgate, and Nwankwo,
2011).The organization uses the database collected from the survey in improving their products and
services and also to understand deeply the thoughts, desires and demands of the customers. There
are many types of online surveys which an organization can use and from them one of the type is
explained as follows:
The following is an online survey carried out for John Lewis group:
Survey title Appetite for John Lewis through online portals.
Objectives of the survey The survey is carried out to measure the percentage growth in use
of online portal of John lewis by consumers for purchasing
company's goods.
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Participants Existing consumers and future forecasting to retain new audience.
Survey channels Online survey through Facebook, Twitter, Blog spot etc.
Survey Questions Personal details.
Name:
Gender:
Age:
Contact details:
Occupation:
Marital status:
Why John Lewis is a better option of shopping.
Cost effective goods:
Quality products:
After sales service:
Rate of the quality aspect of the organization.
Good:
Very good:
Average:
Poor:
How often do you use John Lewis for shopping.
Always:
Often:
Always:
Never:
How do you find the online services of John Lewis.
Always:
Often:
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Always:
Never:
3.3
To achieve the Customer relationship management objectives there is an application known
as E-CRM (Electronic customer relationship management), this application is based on online
technologies such emails, sites forums etc (Holliman and Rowley, 2014). The concept is very much
beneficial for the organization in the selling, marketing and after sales services. And this also helps
in improvement and up gradation in the products, enhances the relations with the customers. The
benefits of E-crm is explained in the below study for John Lewis:
One of the most important factor while dealing with the customers is their trust which is
very much hard to obtain. Now it has become more important for the organization to
communicate personally one-on-one with the customers and to know their preferences and
tastes. So the ecrm will help the company to obtain trust and cooperation.
This concept has proved itself to be the fastest one. It cuts down the time taken in operating
and processing the queries raised by the customers, questions asked regarding the payments
and delivery of the orders. And the time saved can be directed by the company in other
related issues which will help them in enhancing efficiency.
The major factor which determines the retaining and gaining loyalty is providing a quality
of service and delivery. This has become a vital and major characteristics and is widely
selected by the customers.
TASK:2
4.1
Using set of powerful systems, tools methods and mechanisms for the promotion of product
and services through the internet is known as digital or online marketing (Chaston, 2015). This
concept is broader than the traditional one as it includes a variety of elements, channels and
marketing methods (Lu and Julian, 2007). It is a low cost process and a large number of audience
can be approached easily. The further analysis is done on an online marketing plan of John Lewis
group:
PESTLE analysis.
Political: These factors determines the interference of governing bodies in the organization.
A level of stability has been experienced by John Lewis group due to the political balance in
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the economy (Leung, Xue and Bai, 2015). Many policies have been implemented in the
favour of the industry and by adapting the norms John Lewis has established a distinctive
and loyal image in the market.
Economic: The determinants of this concept have a direct impact on the organization's
performance for long run. For instance a rise in inflation may effect the pricing strategies of
John Lewis and which also effects the quality of the goods and services (Lee and Trim,
2008).
Social: This includes market and indicative determinants such as cultural trends,
demographics,population analytics etc. John Lewis launches range of traditional apparels on
occasions as there is a rise in demand at times.
Technological:The mechanisms, up-gradations brought in and which effects the operational
activities of an organization are the contents of this factor (Lantz, 2009). Through making
the use of latest technology John Lewis will be able to enhance the quality of production and
also of goods and services.
Legal: This factor has two sides i.e. internal and external. The self prescribed laws and
norms maid down by the governing bodies are the determinants of this factor. For example
Health and safety laws and labour laws has favourable effected the business environment of
John Lewis (Khong, Choy and Binshan, 2013).
Environmental: The components of this factor are effected and determined by the
surrounding. John Lewis has taken a few steps to cope up with these factors such as Ozone-
friendly production process and environment friendly and easily decomposable packages.
SWOT analysis: Identification of Strengths, weakness and planning the strategies and also
the threats and upcoming opportunities is done by the organization. A well established image
of the brand will be taken as weakness for the organization (Holliman and Rowley, 2014).
The upcoming and changing marketing trends can be considered as opportunities if directed
in a positive way and the rivals are the threats for the organization which are required to be
tackled only through strategic planning.
4.2
A method of internet marketing in which the advertiser have to pay according per click on
the ads visited. Some search engines provide permission to the business organizations and the
entities to list their ads in the search results. These lists are shown with the normal search contents
on the web pages. The advertiser have to pay to the publisher for each time the visitor clicks on the
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