Digital Marketing

Posted byBec HarrisonPosted inUncategorizedTags:, , ,

Todays topic will cover all the basics you need to know about Digital Marketing, including an analysed case study on eBay.

What is Digital Marketing?

Let’s start off with a short video about what Digital Marketing is and how it works!

So, to go into a little bit more depth, Digital Marketing involves the marketing of products and services through the use of digital technologies. It takes into account customer segmentation/ target marketing, positioning and value proposition.

–> A target marketing strategy is the selection of appropriate customer segments and the development of appropriate offers.
–>Positioning is the customers perception of the product and brand relative to its competitors.
–> Lastly, value proposition is the benefits or value a brand offers to customers in its products and services. These aspects all influence a business’s digital marketing strategy.

The interaction and integration of digital channels and traditional marketing channels is essential for an effective digital marketing strategy. This is called multichannel marketing.

To break it down further there are 5 D’s of managing digital marketing interactions: (Chaffey, D & Ellis-Chadwick 2019).

  1. Digital devices- audiences interact with businesses using a combination of smart phones, laptops, Tv’s, tablets and gaming devices.
  2. Digital platforms- through a browser or apps from major platforms and services such as Facebook, Instagram, Google, YouTube, Twitter, LinkedIn, Amazon, Apple and Microsoft.
  3. Digital Media- there are lots of different communication channels available for reaching audiences including advertising, email, messaging, search engines and social networks
  4. Digital data- the understanding and information businesses collect about their audience and their interactions with the business now needs to be protected by law in most countries (safety).
  5. Digital technologies- this is the technology that a business uses to create interactive experiences from websites and mobile apps to in-store kiosks and email campaigns.

The Chartered Institute of Marketing states that “Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably”. Digital Marketing can be used to support these three aims. For example, the internet can be used to identify customers’ needs and wants. Customers make purchases on the internet- so evaluating this demand is key to governing resource allocation to e-marketing. Lastly, making sure the site is easy to use, performs adequately and online customer service availability (Chaffey, D & Ellis-Chadwick 2019).

Case Study: eBay
How has eBay had to evolve its online brand proposition and communicate it to achieve continued growth?

What is Brand Proposition?

Brand proposition should clearly identify the benefits that a consumer derives from the brand. Additionally, the possible benefits that no other brand can provide to the customer which is referred to as a unique selling proposition. It is important that eBay’s brand proposition is consistent (Marketing Amplified, 2019). eBay describes it’s purpose as ‘to pioneer new communities around the world built on commerce, sustained by trust, and inspired by opportunity’ (Chaffey, D & Ellis-Chadwick 2019, p. 39).

eBay’s proposition for their buyers is different to their proposition for their sellers.
For Buyers:
– Trust
– Value
– Selection
– Convenience

For Sellers:
– Access to broad markets
– Cost-effective marketing and distribution
– Access to a larger buyer base
– Good conversion rates

How has eBay evolved its online brand proposition to achieve continued growth?

eBay has adopted and improved on many strategies and methods to ensure continued growth and a consistent brand proposition. Through eBay’s structured data initiative, they monitor supply and demand to ensure continued growth for the business. The need for relevant inventory is important to keep customer interest and engagement in both the long and short term. eBay continues to broaden the coverage of structured data which enables them to stay up to date, modernised, simple and differentiated. One of eBay’s goals is to deliver a personalised shopping experience for all customers and their structured data initiative helps to determine which products are relevant to recommend and highlight to which customers. eBay’s core service is to enable sellers to list items for sale on an auction or fixed price basis, giving buyers the opportunity to bid for and purchase items of interest (Chaffey, D & Ellis-Chadwick 2019).

However, fraud is a significant risk factor for eBay. To combat this eBay has introduced ‘trust and safety programs’ which are particularly important to reassure customers and build trust since online services are often prone to fraud. For example, The eBay feedback forum. This can help establish credentials of sellers and buyers. Every registered user on eBay has a feedback profile that may have compliments, criticisms and any other comments by users who have done business with that user. This significantly helps to evolve eBay’s brand proposition. Furthermore, the top seller status was introduced in 2010 to increase trust. A safe harbour protection method and a standard purchase protection system was also introduced. Additionally, to ensure buyer trust eBay has detailed seller ratings which allows sellers to be reviewed in four areas. 1. Item as described 2. Communication 3. Delivery time 4. Postage and packaging charges. This is in aim to increase the positive shopping experience with more accurate descriptions, better pictures and avoiding excess shipping charges (Chaffey, D & Ellis-Chadwick 2019).

eBay has recognised that consumer habits are rapidly changing and therefore they have increased the use of mobile commerce since 2009 in order to stay up to date. By the end of 2017 eBay related that more than 50% of sales involved at least one mobile touch point.

eBay’s overall goal is to increase the gross merchandise volume and net revenues from the eBay Market place. Their growth strategy is focussed on reinvesting in their customers by improving the buyer experience and seller economics. Through enhancing their products and services, improving trust and safety, customer support and implementing innovative pricing and buyer retention strategies. All these strategies help to evolve their brand proposition and ensure continued growth for the company (Chaffey, D & Ellis-Chadwick 2019).

Hope you all enjoyed today’s post 🙂

References:

Brand Proposition and Brand Statement 2019, Marketing Amplified, Iowa, https://www.amplimark.com/brand-proposition/

Chaffey, D & Ellis-Chadwick, F 2019, Digital Marketing; strategy, implementation and practice, 7th edn, Pearson, United Kingdom

Digital Marketing 2019, The Charted Institute of Marketing, n,p, https://www.cim.co.uk/

 

9 thoughts on “Digital Marketing”

  4. Hi! For me, eBay should taking care of their customer and seller because they are the important point in eBay right? its interesting about you take a note about fraud! Please feel free to visit my blog and drop your comment as well! thank you! 🙂

    Like

    Reply

Leave a reply to journalbyel Cancel reply

Design a site like this with WordPress.com
Get started