Digital and Brick and Mortar Marketing: Kogan.com's Strategies

This report provides a comprehensive analysis of Kogan.com's digital marketing strategies, contrasting them with traditional brick and mortar approaches. It begins with a background on the evolution of digital marketing and its advantages over older methods. The report then reviews Kogan.com's website, highlighting its extensive use of social media platforms such as Facebook, Twitter, and LinkedIn to promote its products and services. A key focus is the identification and classification of Kogan.com's customer base into key market segments, including demographic, geographical, media, and price segments, examining how these segments influence customer behavior and preferences. The analysis further explores the effectiveness of Kogan.com's social media usage, the company's platform selection priorities, and the reasons why not all social media platforms are suitable for every market segment. The report concludes by emphasizing the importance of integrating digital and brick and mortar marketing strategies for brand companies, advocating for a balanced approach to mitigate risks and cater effectively to diverse customer segments. The report references several academic sources to support its findings and recommendations.

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DIGITAL MARKETING
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DIGITAL AND BRICK AND MORTAR MARKETING STRATEGIES
Background
In the last few years, technology has advanced with a high note. Many fields have
tried as much as possible to integrate their strategies to fit the dynamic world while some
other companies have emerged with a total different approach and strategies in business. This
is through the channels of production, marketing and also purchase strategies of their
customers. These new strategies that business has taken from the physical marketing to online
business is what has been regarded as the digital marketing (Hult & Sjölund, 2017, p.48). In
contrast, digital marketing has started to outdo the brick and mortar marketing strategies
where organizations had to advertise their products and services on the billboards, magazines,
newspapers and using people to advertise to the society. Digital marketing has shifted this to
online platform where a single person can make a product known to very many people in
every part of the world and the customers can share and review the product after purchasing it
(Tiago & Veríssimo, 2014, p.703).
Review of the Kogan.com marketing Website.
Kogan.com is such a site that has embraced digital marketing. It uses very many
platforms in social media to advertise its marketing products. The online company uses
Facebook, twitter, LinkedIn and many others. Starting as TV selling site for Ruslan Kogan,
the digital market has expended so quickly and it is spreading to many countries. Now, the
company is offering approximately 50,000 products and other services like Kogan travels.
Kogan is situated in Australia where there are other brick and mortar marketing companies. It
is in a position to make profits of more than $112.8 million a month which is a great stake for
an online market. The company has also employed a number of approximately 120
employees who serve the customers online and physically when need be.

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According to Ruslan Kogan, the company is growing at a very higher rate as he
presented the profit increase in June 2017, to be 63%. Kogan has also joined with other types
of industries in manufacturing, processing and assembling sector like mobile phone
manufacturers for the case of Vodafone who has promoted the company by offering
corporate responsibility of supplying Kogan with their products for marketing and sales.
When the product is purchased by Kogan, they take the images for uploading in different
media groups and also to their main site and the customers are able to purchase and pay
online through the online banking system and then the delivery is made as per the terms and
conditions agreed upon by the company and the customer. Therefore, digital marketing
becomes a more convenient market for the customers as they shop still in their houses and at
any time of the day or night. The strategy also becomes convenient to the marketing operators
as they can reach out to very many people and serve them from anywhere.
Identification Description and classification of the customer into the key market
segments.
Customers are different. There are different segments to define them in the market. It
is done on the base of groups or individuals who are similar is a unique way. For instance,
customers of the same age, gender, interest, spending habits, locality and economic
background may tend to have different customer behaviour. In terms of digital verses brick
and mortar marketing, there are the customers who are fond of the digital marketing and has
embraced it so much while others are still under brick and mortar marketing. Some of these
customers have not embraced the digital marketing for their service. They feel as if their cash
would be stolen, however, this is a factor of customer segment. The key market segments,
that is, geographical segment, price segment, media segment and demographic market
segments can well categorize the customers (Aghdaie, Zolfani & Zavadskas, 2013, p.213).

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On demographic market segment, age, gender, education level and gender prevails.
Customers of youthful age are many in digital marketing. In purchase of phones and electric
gadgets, they do it online. There is another segment of people between the age of 23 and 40.
These are the most number of people who are using digital marketing. Many of them are of
medium economic class who have acquired correct skills and education to carry out online
purchase. Those who are above 40 are more rigid to brick and mortar markets.
Geographical segment
On the geographical segment, people who have lived in the same environment and
associated in the same way will tend to have a similar customer behaviour to a specific
market. This means that, Kogan marketing site can be a taste of many Australian of a specific
region who have seen it work unlike those who just see its adverts in the social media from
other regions like in Asia.
Media segment
Media segment is also a factor. Different media will tend to reach different audience.
For instance, there are some social media which are accessed by few people like LinkedIn
and Pinterest and people who have vast knowledge in them (Wu, Wen, Dou, Chen, 2015,
p.262). Some media can be accessed by very many people, like the Facebook and twitter.
Price segment
Price segment also takes side on customer response to different markets. If customer
believe that certain markets have higher price products, they will tend to shift from that
brand. However, people of some social class will like to buy prestigious things of higher
priced market brand (Weinstein & Cahill, 2014, p.16). Kogan.com offers moderate prices for
their customers and affordable delivery fee therefore, a favourite for many customers in and
outside Australia.

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Favourite social media platform for different market segments and how they access
digital platform
Kogan digital market has been using Facebook as their main social network platform.
For the recent past, the company has also adopted twitter, LinkedIn, Pinterest and also emails.
For the demographic segment, the people who are of young stages of life, that is youths and
young adults are fond of almost all these social media sites. Kogan adverts for this segment
can be accessed from Facebook and other social media sites. The educated people will tend to
be in most of these prestigious social media sites like Pinterest, snapchat and will also be able
to access LinkedIn unlike the lowly educated who will mostly use Facebook and twitter
(Bowie, Paraskevas and Mariussen, 2014, p.16).
On the media segment, age will determine how the segment would access the digital
communication platform. For instance, at least all people in the world with basic education
can access twitter and Facebook. When friends are chatting online, the advertising team of
Kogan will shoot advertisements through google, friends will discuss the product reviews in
Facebook and in the official Kogan Facebook page. All this will be on the basis of who can
access these media platforms (Chiu, Pant, Hsieh, Lee, Hsioa & Roan, 2014, p.1225).
The segment defined by price will be subjected to social media like LinkedIn where
the products are reviewed with price. When the segment that considers price first visits the
LinkedIn and the official Kogan website with the price tags, they will certainly get what they
require.
Effectiveness of using the social media and Kogan’s priority in selecting respective
platforms
Kogan uses the media platform for three main purposes. One of them is to enlighten
the public on the new products in the market and advert their products, sell products to the
customers and supply them to their respective place (Bowie, Paraskevas and Mariussen,

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2014, p.09). Through many of these platforms, the company advertise its products. Facebook,
twitter, Instagram, LinkedIn, Pinterest and emails are to advertise the products. After the
products are advertised, there is always a link that directs the interested customers towards
purchasing the product in the main Kogan website.
The Reason Why Not All Social Media Platforms Will Work for All Market Segments
It is imperative for the digital marketers to diversify their usage of social media
platform. This is because not all social media networks will work to all segments. Companies
can choose to invest in a single social media platform but a problem would arise because not
all people will be interested in that media, only the audience of that platform will be involved.
For instance, Facebook twitter and emails accounts are owned by the greatest number of
people. Other social media like the radio and TVs are also capturing a good number of
audience. This is because of ease of accessibility, cheap to open, access and use and not
complicated. Some social media like Pinterest, LinkedIn and other unfamiliar platforms have
not acquired very many users and thus, would not work for many people. They are also
complicated and favours people who have higher education and vast knowledge in
communication and media (Kohli, Suri and Kapoor, 2015, p.35).
Conclusion
Digital and brick and mortar marketing strategies should be used together as a
marketing strategy. It is also imperative for the brand companies to adjust to risks and
uncertainties through balancing the two. A digital company like Kogan should be in a
position to examine its market segments so as to meet all of them and sell their products. For
the digital markets, social media platforms such as Facebook, LinkedIn, Twitter, Instagram
among others, can be a good channel for business marketing.

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References
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Weinstein, A. and Cahill, D.J., 2014. Lifestyle market segmentation. Routledge.
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