Unfavorable Economics Of Measuring Returns Essay

Question:

Discuss About The Unfavorable Economics Of Measuring Returns.

Answer:

Introduction

Kogan.Com effectively utilizes the digital marketing platforms and analyses such platforms based on the suitability of the market segments (Aksu et al. 2018). The objective of the paper is to analyze the digital marketing strategy of Kogan.Com through analyzing its website along with its different target consumer segment. Moreover, the paper will also consider the ways in which for each of its consumer segment, all the digital communication platforms such as LinkedIn, Twitter, Facebook, Snap chat, Pinterest and Email marketing can be used. The selection of the company’s digital marketing strategy will be based on the preferences and consumer segment’s visibility of these marketing platforms.

Review of the website and its digital strategy

Kogan.Com has developed an online digital marketing strategy based on the nature of its target consumer segments. The company makes increased use of newer online technologies such as blogging or video of its entire new product offering. This serves as one of the effective digital marketing strategy that makes it highly effective in differentiating itself from its consumers through increasing its profitability and visibility (Code 2015). The Company has attained increased awareness of all its products among its target consumers by means of employing highly effective digital marketing strategies. Social media channels such as Twitter, Interest and Email marketing is greatly used by Kogan.Com in attaining increased profitability and consumer attention (Lewis and Rao 2015). The company has developed its website in a manner that it includes editorial along with consumer reviews and manufacturing product information. The web pages of the company are also tailored with individual preferences that have notifications and 1-click technology. Moreover, in the Facebook fan page of Kogan. Com it has ensured increased interaction among the consumers based on their product (Grewal, Bart Spann and Zubcsek 2016). The company’s community of online retailers also generates feature-rich content that includes product reviews, wish lists, online recommendation lists, buying guides along with wedding and baby registries. Kogan.Com directs a huge consumer base to its websites through employing effective digital marketing approaches that includes its Associates Program, sponsored search, portal advertising, and email marketing campaign along with other approaches (Harms, Bijmolt and Hoekstra 2017).

Segmentation of Consumers

Consumer Segment Buying Electronic Products

A consumer segment considers purchasing electronic products from Kogan.Com. These target consumers of the company are generally psychology driven and focuses on purchasing company’s products based on its price leadership strategy. The company’s electronic products buying consumers belong to the groups that have great inclination in the direction of e-commerce portals. Moreover, they also indicate highly comfortable nature towards online shopping. Most of the professions and businessmen consumer segment do prefer purchasing electronic products for their convenience as they are busy with their jobs. They find it convenient to purchase anything through online medium than visiting the physical stores for saving time and money (Keller 2017).

Fitness Consumer Segment Buying Fitness Product

Fitness focused consumer segment of Kogan.Com are the consumers those are focused on improving look of their physique. They are also self-motivated and increasingly discliplined people when it comes to fitness and health. This target consumer market segment is the consumers those search for good deals. For this reason, the website of the company is observed to advertise specific days on which they provide massive discounts to its buyers. The geographic segmentation of the company considers segmenting consumers based on marketplace, star hub and classified (Kerr et al. 2015).

Parents Consumer Segment those Purchase Baby Products

Another consumer segment of Kogan.Com is the parents consumer segment and these factors include degree of loyalty, based on attaining benefits, personality and user status. This target consumer market segment includes consumers those that prefer purchasing baby and child specific goods from the company. The personality of this target consumer segment is observed to be health conscious towards their children and focus on quality of baby products (Lewis and Rao 2015). The user status of the target consumer segment will consider consumers those are regular users and potential users. Based on the demands of the consumers Kogan.Com launched Bubbli that offers baby and toddler products. This consumer segment looks for playpens, changing tables, high chairs along with bottle sterilizers.

Social media platforms for the market segments

Suitable social media platforms for Consumer Segment Buying Electronic Products

To attract the attention of electronic products preferring consumer segment, Kogan.Com has its traffic metrics supported by increasing engaged community of mobile application users, website visitors along with providing offer of email subscribing. To enhance its consumer electronics brand Kogan.Com develops more Google search queries through its effective website. The professional target consumer market segment belonging to upper and middle income group follows the social media platform such as email in attaining any information regarding products sold through online medium (Rodgers and Thorson 2018). They are highly active for checking emails on regular basis for attaining regarding any advertisements or offers provided by Kogan.Com.

Suitable social media platform for Fitness Consumer Segment Buying Fitness Product

The fitness conscious target consumer market those are the regular users of Kogan.Com’s offerings and have the tendency of assessing a wide range of products and services in a time saving and convenient manner are considered to use digital communication platform such as Twitter. This consumer segment is highly active target audiences in Twitter as being loyal consumers they are active in sharing their opinions through online medium (Rodgers and Thorson 2018). They are also influenced by positive word-of-mouth and chat rums formed in Twitter regarding products of Kogan.Com. Based on the opinions attained from this social media platform they are convinced to acquire the products of the e-commerce business. Through this social media platform the company expands its private level product offering through developing its brands of fitness and sport. Twitter has a fan page of Kogan.Com where this consumer segment shares their views among themselves and with the company regarding exercise machines, fitness equipment, compression wear along with gym accessories.

Suitable social media platform for Parents Consumer Segment those Purchase Baby Products

In order to attract attention of this parents consumer segment of baby products certain effective social media platforms are employed by Kogan.Com. This consumer segment is observed to be follow advertisements and deals from online parents’ site. Considering the same, the company employs effective social media tools for marketing its baby product segments through DailyDealsForMoms.Com through positing online videos and offer based coupons.

Utilization of these platforms by these brands

Based on the social media platform use by target consumers, Kogan.Com considers developing its digital marketing strategy that can facilitate the company in increasing its brand awareness and visibility among consumers. Along with e-mail marketing, Kogan.Com also implements Google Text ads along with banner ads from all its brands (Lewis and Rao 2015). These platforms could be integrated with the brick and mortar marketing strategy having various aspects and they are demonstrated briefly as follows:

E-mail Marketing- E-mail marketing strategy is used by Kogan.Com for attracting attention of its target consumer segment focused on buying electronic product. In implementing this digital marketing strategy, the company sends personalized e-mail to its consumers with dynamic content. Moreover, it also helps its consumers to get aware regarding the recently launched electronic products and brings its website contents within the inboxes of consumers’ e-mail though maintaining consistency within its template and design. Content of the company is highly evolving aspect as it helps in consumer interactions and the familiarity of the templates and layouts maintain content relevant to the brand (Rodgers and Thorson 2018). This strategy could be associated with the physical, online and neighborhood aspects. The physical aspect could be linked in the sense that the various contents published on the website are sent in the form mails to the target customers, which is a secondary signage utilized for daily specials or advertising sales. There is association with the neighborhood aspect, since Kogan.com mails information regarding special offers to its targeted customers.

Twitter- Com considers regular integration of its Twitter e-commerce through launching variants of its features. For instance wish list of Kogan.Com helps the fitness focused consumer segments to drop the products they found from Twitter within their shopping carts. Moreover, this process helps in making visibility of all its products seamless for its target consumer marketing segment. This social media platform is used by the company to be a micro-blogging service which helps users of posting tweets of 140 characters or less than that on fitness advices and gadgets (Tham, Rodgers and Thorson 2017). Twitter Grader is used by Kogan.Com in grading their online profile along with searching the top tweeters within the locality.

Facebook- Facebook conversation advertisements are developed Kogan.Com through employing My Seller Pal advertisements that helps in optimize their conversations with the consumer segment purchasing baby products. Facebook helps the company in employing the objective “conversations” regarding the benefits and quality of baby products to parents. This can further help the company in providing ads to its consumers through which they are likely to attain discount codes for Kogan.Com offerings (Thorson, Rodgers and Tham 2017).

The above two strategies could be related with the social media aspect mentioned in brick and mortar marketing strategy. With the help of social media, the business owners could encourage their customers in liking their Facebook and Twitter pages by providing special offers, engaging contests or interesting content. Hence, by utilizing the two above-stated platforms, Kogan.com could find an avenue of involving and informing potential customer service issues along with conducting surveys. As a result, it ensures more positive word-of-mouth marketing.

Non-suitability of social media platforms on brands

Consumer opinions and preferences are different based on their demographic, psychological and behavioral classes. This is the reason for which all the social media platforms are not deemed to be highly suitable for the consumer segments. Communities of interest are globally being fostered through social network platforms and a consumer target market is deemed to have highly active in Google+ circles and LinkedIn Groups rather than following Facebook pages (Kogancorporate.com. 2018). These consumers are more interested in getting aware of any deals or offers provided by Kogan.Com through email marketing. Facebook fan page, Printerest and Twitter market will not be a great interest for these target consumers. In developing digital marketing strategy and for selecting most suitable digital advertising strategy segmentation of consumers based on their personas is necessary. Sales prospect profiling gets easier for selecting suitable advertising channels, as based on the preference of social media channels by consumers the digital marketing strategy can be developed by Kogan.Com (Kuzma et al. 2017).

Recommendations

Based on the segmentation and digital marketing strategy employed by Kogan.Com certain effective recommendations are offered to the company:

  • Com is recommended to provide welcome e-mail to its consumer segment of electronic products. This can facilitate them in attaining access to personalization along with attaining easy links in the personalized email to the recently searched products by them.
  • The company is recommended to design its advertisements in Twitter in a manner that it is highly engaging. This can be ensured by Kogan.Com through creating hash tags for all the contests and premium services that will persuade its followers to develop user-generated content for fitness advices and products.
  • Com is recommended to develop its website and introduce a new segment for consumer segment purchasing bay products. This can be done through developing a wide variety of image and video content on baby products over its website.

Conclusion

The objective of the paper was to analyze the digital marketing strategy of Kogan.Com through analyzing its website along with its different target consumer segment. The target consumer market segment is the consumers those search for good deals. For this reason, the website of the company is observed to advertise specific days on which they provide massive discounts to its buyers. The report revealed that the company’s community of online retailers also generates feature-rich content that includes product reviews, wish lists, online recommendation lists, and buying guides along with fitness and baby registries. It was gathered from the paper that the company’s consumers belong to the upper and middle class consumer groups that have great inclination in the direction of e-commerce portals. Moreover, they also indicate highly comfortable nature towards online shopping. Based on the same, Kogan.Com must consider developing its digital marketing strategy that can increase its profitability and visibility. It is also recommended to increase interaction among the consumers based on their product.

References

Aksu, H., Babun, L., Conti, M., Tolomei, G. and Uluagac, A.S., 2018. Advertising in the IoT Era: Vision and Challenges. IEEE Communications Magazine.

Code, S., 2015. A Winning Super Bowl Digital Advertising Strategy.

Grewal, D., Bart, Y., Spann, M. and Zubcsek, P.P., 2016. Mobile advertising: a framework and research agenda. Journal of Interactive Marketing, 34, pp.3-14.

Harms, B., Bijmolt, T.H. and Hoekstra, J.C., 2017. Digital native advertising: practitioner perspectives and a research agenda. Journal of Interactive Advertising, pp.1-12.

Keller, T., 2017. Effects of Advertising Methods on Fruit Consumption in Sixth-Grade Population.

Kerr, G., Schultz, D.E., Kitchen, P.J., Mulhern, F.J. and Beede, P., 2015. Does Traditional Advertising Theory Apply to the Digital World?: A Replication Analysis Questions the Relevance Of the Elaboration Likelihood Model. Journal of Advertising Research, 55(4), pp.390-400.

Kogancorporate.com., 2018. [online] Available at: [Accessed 6 May 2018].

Kuzma, A., Vrabete, B., Addicam, S., Malik, S., Ranjan, A., Phadnis, S., Tian, F. and Chiranjeevi, K., Intel Corp, 2017. Digital Advertising System. U.S. Patent Application 15/268,152.

Lewis, R.A. and Rao, J.M., 2015. The unfavorable economics of measuring the returns to advertising. The Quarterly Journal of Economics, 130(4), pp.1941-1973.

Rodgers, S. and Thorson, E., 2018. Special Issue Introduction: Digital Engagement with Advertising.

Tham, S.M., Rodgers, S. and Thorson, E., 2017. Trends and Opportunities for Digital Advertising Research. Digital Advertising: Theory and Research, p.31.

Thorson, E., Rodgers, S. and Tham, S.M., 2017. Trends and Opportunities for Digital Advertising Research: A Content Analysis of Advertising Age, 2000–2015. In Digital Advertising(pp. 61-74). Routledge.

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