Digital Marketing Strategies Essay

Questions:

1.Review any websites and the digital strategy including social media platforms Implemented by the brand.
2.Identify and describe the Customers and divide them into three key Market Segments.
3.Identify the favourite social media platforms for each of the Market Segments .
4.How effectively does the brand utilise each of these Platforms?
5.Explain why not all social media platforms will work for all Market Segments.

Answers:

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 & Sj?lund, 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 & Ver?ssimo, 2014, p.703).

1.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.


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.

2.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).

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.

3.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.

4.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, 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.

5.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.

References

Aghdaie, M.H., Zolfani, S.H. and Zavadskas, E.K., 2013. Market segment evaluation and selection based on application of fuzzy AHP and COPRAS-G methods. Journal of Business Economics and Management, vol.14, no.1, pp.213-233.

Bowie, D., Paraskevas, A. and Mariussen, A., 2014. Technology-driven online marketing performance measurement: lessons from affiliate marketing. International Journal of Online Marketing, vol. 4, no.4, pp.1-16.

Chiu, H.C., Pant, A., Hsieh, Y.C., Lee, M., Hsioa, Y.T. and Roan, J., 2014. Snowball to avalanche: Understanding the different predictors of the intention to propagate online marketing messages. European Journal of Marketing, vol. 48, no.7, pp.1255-1273.

Hult, M. and Sj?lund, J., 2017. Dynamic Marketing Capabilities: Organizational Renewal Towards Social Media Marketing.

Kohli, C., Suri, R. and Kapoor, A., 2015. Will social media kill branding? Business Horizons, vol.58, no.1, pp.35-44.

Tiago, M.T.P.M.B. and Ver?ssimo, J.M.C., 2014. Digital marketing and social media: Why bother?. Business Horizons, vol.57, no. 6, pp.703-708.

Urban, G.L., Gosline, R. and Lee, J., 2017. The Power of Consumer Stories in Digital Marketing. MIT Sloan Management Review, vol.58, no.4, p.102-111.

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

Wu, J., Wen, N., Dou, W. and Chen, J., 2015. Exploring the effectiveness of consumer creativity in online marketing communications. European Journal of Marketing, vol.49, no.1/2, pp.262-276.

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