Level 3 Business Unit 17 assignment 1 PDF

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Assignment Title: What is Digital Marketing and how is it used? Learning Aim, A: Examine the role of digital marketing within the broader marketing mix. Learning Aim, B: Investigate the effectiveness of existing digital marketing campaigns.Introduction: In this report I will be exploring the role of...

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Bethanie Colwell Assignment Title: What is Digital Marketing and how is it used? Learning Aim, A: Examine the role of digital marketing within the broader marketing mix. Learning Aim, B: Investigate the effectiveness of existing digital marketing campaigns. Introduction: In this report I will be exploring the role of digital marketing. I will also be exploring and analysing the different ways in which digital communications can be delivered to consumers, the devices that are currently being used and the trend towards the use of mobile devices and free digital content. I will also be discussing the advantages and disadvantages for different marketing methods. The two campaigns which I will investigate are Coca Cola’s ‘Open to Better’ and Apples ‘Working-from-home-thing’ campaign. This article is aimed at new customers with very limited prior knowledge of digital marketing. P1. Explain the role of digital marketing as an extension of traditional marketing and the ways the messages can be delivered. Role of Digital Marketing. Digital marketing refers to the promotion of services, brands or products using one or more online platforms and the internet to reach potential customers. It allows the business to gather new traffic, leads and sales for the business by reaching people for the product or service. The most common digital marketing methods used include social media, websites, emails, mobile apps and search engines. Unlike traditional marketing methods, digital marketing methods are able to organiser and track results of the marketing campaign more efficiently. Digital marketing gives the business the power to customise content and generate advertisement to their target market. This in turn allows for a deeper connection to be built between the business and the customers, this helps to build brand loyalty. Digital marketing should be seen as an extension method of marketing rather than to replace traditional marketing. Traditional marketing refers to marketing any type of marketing that isn’t online. This could include outdoor advertising such as billboards, posters and leaflets, newspaper articles etc. It is harder to get an immediate respond through traditional marketing due to the lack of technology. This is one reason why business believe that the best type of marketing is when they use both traditional and digital alongside each other. By doing this the business is able to target a larger market and in turn spread more awareness of the business and generate more customers. Current Trends of Digital Marketing. One clear trend with digital marketing is with the rising popularity to use mobile communications. With the current environment most people have access to a smartphone or currently own one. According to https://www.finder.com/uk/mobileinternet-statistics, in 2020 84% of UK adults (+16) owned a smartphone. This figure is well over half which make it clear to see why digital marketing through smartphones would bring a business many great benefits. it also states that “on

Bethanie Colwell average, Brits spend 2 hours and 34 minutes online on their smartphones everyday”. This allows businesses to take advantage of 84% of the UK population and enables them to directly market their products or services through the use of their own smartphones. By doing this the business is able to have quick and direct contact with potential customers. The table has also been taken from: https://www.finder.com/uk/mobile-internet-statistics. In the table it shows the ages of people in the UK and how has access to the internet via their mobile phones. It is clear to see that people ages between 16-24 have a substantial amount of people who have a phone and have access to the internet. I think this is a clear trend to see, especially with the changes in technology and the environment; the new generations are having more technology in their lives from earlier ages. When looking at the 65+ category, it’s obvious to see that only 47% of those people who have a mobile phone also have access to the internet. This could be done to many reasons, I believe that one key reason is due to the older generation not understanding how to use new technology hence why they do not purchase the new iPhone for example, as they do not know how to use it and therefore wouldn’t consider it necessary to have. Alongside the rising of mobile communications as a method of digital marketing video marketing is also becoming very popular. According to https://www.singlegrain.com/digital-marketing/digital-marketing-trends-2021/ 52% of customers say that they are more confident about making a product purchase after watching product videos and reviews. This clearly shows how it is becoming more and more important for business to take part in video marketing to not only build their brand awareness but also to gain more sales which in turn will further boost the awareness if people are happy with their products which they receive. The use of Digital Marketing in targeting specific market segments. Marketing often draws upon the ideas of segmentation, targeting and positioning (STP) in order to understand and direct marketing activities. However, the classic ‘triple-threat’ is useful, it is important for businesses to remember with digital marketing segmentation is far most the important form of marketing. Marketers are always trying to communicate a message appropriately to the right group of people however, with digital marketing it is more difficult to understand buyers’ behaviours and their journey; consequently, this makes it harder to segment an audience. Market segmentation is the process of driving the businesses database into specific groups based on a single or multiple criteria’s. By businesses using segmentation it allows then to focus on a specific group of people who all have similar characteristics whom to which to market the product at. One way to segment is to separate previous customers from the new or potential customers. This is because the business will engage with them differently based on either the pervious relationship built or to try to build a relationship with the potential customers and in turn gain their loyalty.

Bethanie Colwell Another way to target different segments is via social channels. The business needs to understand how and where people are seeing their marketing content. If the business is able to find this out, then they will be far more successful in keeping loyal customers and gaining new ones. For example, notifications from the business’s app may influence customers and make them engage with the app to see new deals and offers, or this same thing can be done via email. P2. Investigate the ways in which advertisers are targeting mobile device users. M1. Analyse, using example, the effectiveness of different digital delivery methods. Devices used for digital communications. There are many different types of devices that businesses can target to focus their digital communication on. These can include: - Smartphones - Laptops or computers - Tablets - Game consoles One of the more common devices to target customers on currently is through a mobile device or smartphone. As seen previously 84% of the UK’s adult population have a smartphone, this shows how there is such a large number of people business can advertise their product to digitally over a mobile device. Mobile device ID tracking allows for programmatic insight into the phone users digital trial, this therefore makes it easier for marketers to track their potential customers more efficiently. Once the marketers understand the user’s habits, they can then seamlessly place relevant ads that reflect the user’s interest, media preferences and consumer behaviours. According to https://www.thebridgecorp.com/mobile-advertising/ people who have access to a mobile device spend 84% of their time using applications. One-way apps can target the suitable data and advertisements at customers is by the user allowing the app to access their location. This allows making the ads far more relevant and specific to the location. For example, navigations apps such as Waze, give users suggested places to stop along their journey. This helps to make the app look more supportive and personalised to the user. Or another example is depending on your location can change the menu slightly for some restaurants. This makes it clear that it can be important for an app to know the user’s location so it can become more relevant and personal. I believe that by advertisers targeting mobile device users they will be able to help build their brand awareness as there is a huge population of people who use a mobile phone and in turn the product or service which is being promoted will be able to reach many people. With this if the marketers are able to build a relationship with the customers and potential customer, they should be able to gain their trust and loyalty and in succession gain a substantial amount of revenue. Game consoles is a less common however, still a device which is used in digital marketing. Many mobile games enjoy being able to gain rewards during the game, one way a marketer can use this to their advantage is by having the user watch a

Bethanie Colwell video ad for between 5 to 30 seconds, and in turn they will receive their reward. This is a way in which the user is allowed to control the number of ads they receive and when they receive them. In turn this helps to generate a positive experience with ads. Digital Delivery Methods. Pop-up ads: One method of digital delivery or digital marketing methods includes using pop-up advertisement. Pop up ads are a very simple method of marketing, the ad simply ‘pop’s up’ in front of the customer’s screen. This instantly draws the user’s attention to the ad which is being shown as it is in the middle of their screen. they force the users to view them and provide a higher click through rate than regular banners. These types of ads can be done on any kind of device including on smartphones, computers and tablets. And on any form of platform whether this is through an internet website on an application. One advantage of this method of digital marketing is that they are eye catching, the viewer is instantly drawn to the ad and tends to have a look at what it is saying, whether it’s asking for a review, showing off a new product of giving the customer the latest deals. One brand which use pop-ups regally are Shein. This is a clothing store who have online stores only however, the owner of the company originates and lives in China. Whenever customer loads up their online website or application a pop-up ad instantly appears on the screen sharing the latest discount codes. This makes the business look generous and inviting as they are seen to be supporting the customer by giving them a discount. This in turn makes the customer more likely to buy products as they know straight away that they are guaranteed that they will be saving money. Along with this many customers tend to then spend the same amount if not more of their original budget to spend as they feel like they are ‘saving money’ due to the deals. This is a very clever way of marketing and has clearly helped with the success of the brand Shien. This clearly shows how pop-up advertisement is clearly an effective and successful method of digital marketing as customers are instantly drawn to the ad however, the ad does need to be eye catching and something the customer will be happy to see for example a deal or promo code. This is why the design and text of the ad is extremely important feature to think about to make sure the pop-up ads are as effective as they can be for the business. However, a disadvantage could include that they constant pop-up ads could seem ‘spammy’ and annoying. The ads normally take up the screen and require the users to take action to remove the ad from their screen to carry on with what they were doing, this could involve pressing the cross or close button. This could therefore have a negative impact on the customer and can drive these potential customers away. This will consequently result in the business not making a sale which will affect their revenue and profit rates. Banner ads: Another main method of digital advertising includes the use of banner ads. This is one of the oldest and more common types of advertisements. These types of advertisements consist of images and text which can be animated or static; they are

Bethanie Colwell then places along the bottom, top or side of the screen, therefore not taking up the whole of the user’s screen. On key advantage to banner ads is their simplicity which makes them easy to design and implement. It does not cost the business huge amounts of money which in turn helps to reduce the output costs and therefore increase their profits when sales are made. Along with this simplicity, it is also easy for the business to track the engagement of their banner ads. This helps the business to have an understanding if they are helping with their marketing and the areas and the types of people they are reaching. However, a disadvantage is that with the simplicity it also comes along with the fact it can be difficult to attract the attention of their potential customers. As they are only small ads at the bottom of the screen the users are not necessarily drawn to the ad when they are normally more interested in doing whatever they have accessed the internet to do for example. However, when you look at pop-up ads these type of ads clearly catch the attention of the user. This in turn means that by using banner ads, the business may not gain as many customers as they could do with using a different type of digital advertisement. Email Advertising: A less common method of advertisement includes the use of email marketing. Here the business is able to communicate with the customers or potential customers directly which makes it more personal. When purchasing a product, the customer can have an option to receive future emails about their recent deals and promo codes etc, which can seem like a great idea for the customer as they are able to get more deals to save money. However, the business should always offer the option to unsubscribe to their mailing list if the emails become annoying or is the customer simply doesn’t want to receive then anymore. An advantage of email marketing is the direct contact with the customers means that they are more likely to see the advertisement and therefore there’s a higher chance of them making a purchase. This means if there is a higher click rate on the email advertisements it will lead to more customers and sales which will increase the businesses sales rates. This will therefore lead to more revenue and more profit. Email advertisement also helps to keep and gain loyal customers as they are agreeing to receive updates from the business to their personal email address. This makes email advertisement a successful and effective method of marketing as the business is able to directly contact their customers. However, a disadvantage of this is that the business may take advantage of having the customers emails and may overuse the marketing method. Customers may feel as if it’s an invasion of their personal life, seeing as an email address is personal to each individual. This in turn may push the customers away which could lead to a bad reputation for the businesses marketing methods and subsequently lose customers.

Bethanie Colwell Above are some examples of email advertisements. These are example of marketing from the brand My Protein. The email is advertising their new deals and promo codes, in hope to tempt more customers to buy their products. In the second photo is the bottom of the email. It’s important that there is an unsubscribe button which customers can press in case they no longer want to receive emails from the business. D1. Justify the extent to which the digital environment is influencing consumer choices Looking back at the previous research, it is clear to see that digital marketing is become more popular especially with the changes to technology. It’s very important for the business to take part in research into their customers and target market before making a decision on their digital marketing method. With this I believe that the customers do have an influence on the business’s choice of marketing method. Depending on who the businesses target market is will also depend on how they market their products. For example, if the clothing brand Shien was looking to advertise their new range of summer clothes, they wouldn’t choose to market this on a games console as this is not where their target market would necessarily be. However, Shien would look at devices such as smartphones, tablets and computers as here the users have access to apps and the internet, whereas on games consoles the users are more looking to be playing games and have game related adds compared to an advertisement about a new summer clothes collection. By the business researching into their customers behaviours, it gives them a better understanding of how best to market their products. By doing this it means that the business is being influenced by their customers in a positive way. This in turn will lead to more customers as the business will be able to advertise their products better to their desired target market. The method of digital marketing the business chooses to use influences the customers choices. For example, if a business was to use pop-up ads then the advertisement is in the face of the customer, they are instantly draw to it and there’s a higher chance of them looking at and reading the advertisement. However, methods such as banners and display advertising are not so in the face of the customer, and it is easy for them to simply just not look at the ad. This in turn can affect the click rate and therefore the sales made will not be as high. This is why I believe that customers are influenced by the method of advertising. After researching, many customers are more likely to purchase a product is there is a video reviewing the product or showing what it looks like and how it works etc. this gives the potential customer more confidence in the product which makes them more likely to make the purchase. This is why video advertising can also be a simple and easy method to gain more customers. By the business creating short videos about their products explain how they work can also look extremely professional and clean.

Bethanie Colwell P3 Discuss the digital strategies that a selected business uses to meet two different objectives P4 Outline different compensation models used in digital marketing M2 Analyse the different digital strategies and compensations models used to create brand recognition and brand loyalty Digital Strategies: Coca Cola ‘Open to Better Campaign’. The first busines that I have research into and looked at their marketing campaigns is Coca Cola, the world’s largest non-alcoholic beverage company. Coca Cola has been ‘refreshing people everywhere’ for 134 years and have sold to over 200 countries and territories. The marketing campaign that I have researched into is their most recent campaign Open to Better. The campaign has seen the iconic Coca Cola logo removed and has been replaces with a series of resolutions encouraging people to reflect upon the year 2020 and look ahead to the new year. The types of digital marketing strategies which Coca Cola have used for their ‘Open to Better’ campaign are: - Social media marketing - Banners - Video marketing. When looking around for the Open to Better campaign it wasn’t at all hard to find, this shows how well Coca Cola have managed to (https://www.coca-cola.co.uk/) spread awareness of their new campaign. The first and most obvious place the campaign can be seen is one their website; this is the first campaign and pictures that come up as soon as users open the website link. The campaign is in your face and extremely eye catching. This personally makes me want to find out more about what the campaign is about and what Coca Cola is trying to promote. They have a responsive web design which intrigues the customers. With the current environment with Covid 19 the campaign is bringing many people some positive thoughts which creates joy and happi...