Importance of Digital Marketing and Market Segmentation Theory - Research Paper Example

Interactive and Digital Marketing Table of Contents Table of Contents 2 Overview 3 Discussion 3 Importance of Digital marketing and market segmentation theory 3 Differences in the sites having traditional bricks and mortar presence with those that do not have 6 Ways to communicate the personality of the shops? 8 Recommendations for each retailer’s to improve its websites 9 References 12 Overview In this age, marketing is the most essential requirement of any organizational entrepreneur or businessman. This is because it is recognised as the procedure to generate a relationship with the target customers so as to increase its total sales and net income. Along with this, the concept of marketing is offered high preference in order to generate huge range of traffics and to convert them to loyal customers. Only then, the total range of customers might be increased that may improve its position and competitive advantage in the market to a significant extent among many other competitors (Kazmi, 2007, pp. 636-645). Furthermore, in this age, both interactive as well as digital marketing is highly used in order to enhance the bonding within the customers and the organization. It is the bonding or relationship that acts as a catalyst for the organization of today’s age to improve its presence and sustainability in the market. However, in order to retain such type of relationship with the customers, it’s extremely essential to offer all sort of essential information or details regarding the products and services of the organization in an effective way. This report mainly deals with the information available within the web-sites of two retailers named Primark and marks and spender (M&S). It also describes the difference present within the websites of the two mentioned retailers along with the traditional bricks and mortar shops. Discussion Importance of Digital marketing and market segmentation theory According to Kotler (2008), marketing acts as a tool that may be used to identify, anticipate, and gratify the requirements and demands of the customers in an effective way. Moreover, in today’s age, marketing is essential to identify the target customers of the products or services of an organization. However, in this age of digitalisation, it might be possible only if an organization becomes successful in developing an online presence. Online or digital sites helps an organization to present its products or services to a wide range of customers of varying income profiles, age-groups and standards in a very short period of time as stated by market segmentation theory. Along with this, with the help of online or digital websites, an organization may immediately fulfil the queries of its target customers and develop the customised products that might prove effective in increasing its profitability and loyalty in the market among other rival brands (Keegan. 2002, pp. 456-467). Due to these underlining reasons, the level of preference of digital or online websites is quite high as compared to interactive marketing. Similar scenario is viewed within the website of M&S. The websites presents a clear idea about its products lines such as beauty products for the male and female beauty conscious youths of the society, fashionable clothes for the men and women of young-energetic youths as well as the kids. It also presents a wide range of food and wine products for the individual of varying age-groups. This helps the organization to position its product lines to a specific group of customers as stated by the theory of market segmentation. Along with this, the websites of M&S also includes the decorating materials for the residences such as bedsits, bedcover; pillow covers sofa covers and many others. Apart from these products, the website of M&S also presents wide information regarding flowers and various gift items as well. On the other hand, the websites of Primark do not offer clear cut information regarding its product lines. As a result, the customers may get confused at the time of accessing the website of Primark. Moreover, the website of Primark neither presents any specific information regarding the available colour or sizes of the products. Whereas, the website of M&S offers clear idea about the available colours of the fashionable suits and apparels in order to make the spring season, more interesting and attractive (Henry & Harte, 2012, pp. 234-246). Furthermore, the website of M&S is designed in such a way that its extremely easy to navigate and attain the desired information but on the other hand, navigating the online site of Primark may not offer any sort of useful information. Moreover, another interesting thing that is present within the website of M&S is that, the exact delivery time after placing the order. It is extremely essential for a customer desiring to avail any wedding ceremony with a bouquet of flowers from M&S. On the other hand, the website of Primark offers a detail idea about the location of its stores so that the customers residing in diverse locations might easily avail them at any point of time. Apart from this, the website of Primark is also used to attract the young consumers within their brand in order to improve their brand image and popularity in the markets of London. However, an online site may not include such type of options as it reduces the ranking and rating of the site within the minds of the customers. Similarly, the website of M&S does not specify the approximate delivery time required outside Australia, NZ and United States, which is not at expected from a branded retailer. This is because; it hinders the reliability and reputation of the retailer within the minds of the customers thereby declining its trust over the brand (Gallant & Boone, 2011, pp. 324-345). Besides these above mentioned information, the websites of Primark includes online presence but an individual fails to order any products from these sites. As a result, in order to fulfil the desire, the customer tries to purchase the product from e-bay or any other online sites. However, purchase of products from other sites as compared to Primark, includes additional cost that hinders the reputation of the brand. Therefore, the customer become dissatisfied and easily switches over towards the product lines of other rival brands that hinders the profit margin and net income of Primark. On the other hand, the website of M&S is quite good as compared to Primark in terms of ordering of materials. So, the website of M&S is quite popular as compared to Primark for the customers. Differences in the sites having traditional bricks and mortar presence with those that do not have In today’s age, the most essential desire of the entrepreneurs is to increase its global presence. This is because; it might prove effective for the organization to increase its total sale and productivity in the market. However, it might be possible only if the organization or the entrepreneur tries to develop a good relationship with its target customers. A good relationship may be developed only if the entrepreneur becomes successful in positioning the image or features of its products lines in an effective way as stated by the theory of customer-led positioning (Guillén & García-Canal, 2006, pp. 344-356). This might be possible only if the entrepreneur may describe the features, qualities and prices of the product lines among its target customers as compared to other rival brands. Only then, the inner desires of the customers might get fulfilled that may improve the total sale and total demand of the products of the organization. Therefore, in order to fulfil these criteria, an entrepreneur desires to attain a traditional bricks and mortar presence as compared to digital or online presence. Although, with the help of digital presence, the entrepreneurs try to present the similar experience to the customers but it remains incomplete without material contact. This is because; by touching the clothes, the customer may understand the quality and durability of the product that may increase its inner dependability and reliability. Apart from this, brick and mortar shops also offer a feeling of satisfaction and contentment over the products of the brand. This is extremely essential for an entrepreneur to satisfy his target customers in order to retain them for a longer period of time. Moreover, satisfaction might also act as a weapon to enhance the reliability and trust of the customers thereby reducing the rate of switchover costs. As a result, it might prove effective in enhancing the productivity and loyalty of the brand in the market among others. Due to these reasons, it’s extremely essential for a site to comprise of bricks and mortar shop as well as online presence (ESOMAR, 2008, pp.345-356). Furthermore, a site needs to comprise of traditional brick and mortar presence, in order to deliver the products immediately to its customers. This is one of the most important marketing strategies that may be used to increase the sale and demand of the product lines in the market among other rival contenders. Besides these reasons, the customers may easily negotiate with the marketers regarding the prices of the product and then attain them at best price. This strategy of price negotiation is also helps a marketer or entrepreneur to improve the inner trust and position of the brands in the market among other contenders. Therefore, due to these above mentioned reasons, it’s extremely essential for the sites to comprise of both online as well as brick and mortar shops. However, the sites that do not include a traditional brick and mortar presence, that fails to retain its customers for a long time. This is because; maximum extent of the customers tries to fulfil their inner aspirations with the help of physical touch and material contacts. As a result of which, the level of satisfaction of the customers gets enhanced resulting in amplification of their trust and consistency over the brand. Other than this, if the site comprises of a traditional brick and mortar presence, then the customers might get attracted to towards the shop (Drummond & Ensor, 2006, pp. 223-245). By doing so, the customers might get the opportunity to touch and feel the products before purchasing them. Apart from this, the customers might also attain the facility to view the various designs and colours of the products. By doing so, the level of satisfaction of the customer might get enhanced that may increase their dependability and loyalty over the brand. Ways to communicate the personality of the shops? In this age, maximum extent of the retailers desires to communicate the position its products and services with the help of pricing strategies. If the prices of the products or services of the organization are high, then it attracts the premium range of customers of the society. Due to which, the retailer positions itself as a premium brand in the market as compared to other rival players. Similarly, if the products or services of the retailer of M&S and Primark are low then it positions itself as a brand for all segments of the society. Therefore, due to average or low pricing strategy, the retailer might become successful in attracting a wide range of customers of varying income groups and standards that may improve the sale and demand of the products of the organization in the market among others (Mathews, 2002, pp. 256-267). Yes, it might be possible to analyse the personality of the retailer, in spite of any sort of information available on web. This is possible by visiting the traditional brick and mortar store of the retailer. Moreover, by touching and identifying the prices and qualities of the products, the customer might identify the position of the product i.e. premium or prestige product or low-priced products. By following this strategy, the retailer might identify its target customers as well as their income groups. Along with this, after physical interaction with the customers, the retailer might analyse the taste and preferences of its target customers and might prepare the products as per their fondness (Bradley, 2007, pp. 223-234). Only then, the retailer might become successful to satisfy the changing requirements of the customers thereby maintaining the relationship with them for long time. As a result, the level of reliability and brand image of the retailer or the brand might get enhanced that may improve its distinctiveness in the market. Reliability and consistency might prove effective for the retailer or the brand of M&S and Primark to increase its total sales and revenues to a significant extent. Apart from this, with the help of interactive marketing, the retailer might analyse the price preferences of the customers as well. Then the retailers might present the products according the preferred prices so as to retain the position and competitive advantage of the brand in the market. By doing so, the retailer or the entrepreneur might become successful in enhancing its range of customers thereby amplifying its sustainability and dominance in the market. Thus, if the customers become satisfied with the brand then their reliability and dependency might get improved as compared to many other existing contenders. Hence, it might be stated that reliability helps to the retailer or the brand to retain its image and supremacy in the market thereby fading the risks of new entrants or substitute products (Beall, 2010, pp. 123-134). Therefore, it might be clearly revealed that, traditional brick and mortar shop helps a retailer or an entrepreneur to develop an effective relationship or bonding with the customers. This helps to improve the equity and uniqueness of the brand in the market among others. Recommendations for each retailer’s to improve its websites In this age, sustainability and retention is extremely essential. In order to fulfil that desire, most of the retailers might try to develop an online presence. By doing so, the retailer might attract a wide range of customers of varying age-groups and incomes that may amplify its total sale and profitability as compared to many other rival players. However, along with web presence, the retailer might try to develop a brick and mortar shop in the high streets so as to increase the awareness of the customers. Along with this, traditional brick and mortar shops might also improve the brand image and reliability of the products of the brand within the minds of the customers. As a result, the productivity and dominance of the brand might get enhanced that might improve the strengths of the retailer. Moreover, in the brick and mortar store, the retailers of M&S and Primark might try to interact or communicate with the customers so as to know their likings. Only then, the retailer might present the products as per the preferences of the customers and this might prove effective for the retailer to increase its position and supremacy in the market among other existing contenders. With the help of such type of interactions a customer might attain, various essential information that may prove effective for him in long run. After knowing this information the rate of purchase of the retailer might get increased. Moreover, by effective interaction or communication, the retailer might become able to know the trends and fashions of the customers. By doing so, the rate of satisfaction of the customers might get enhanced that may improve its consistency in the market. Other than this, in order to improve the position and supremacy of the brand, the retailer might try to analyse the feedbacks of the customers. This might prove effective for the brand or the retailer to enhance its brand value and market share as compared to many other rival players. Furthermore, the retailer of M&S might try to maintain the prices as per the income standards of the customers so as to improve its portfolio and supremacy in the market. Along with this, if the retailers of M&S and Primark become successful in offering qualitative products at a competitive price then its range of customers might be increased. As a result, the profit margin and total revenue of the organization or the retailer might get enhanced to a significant extent. Moreover, in order to retain the customers for a longer period of time, the retailer of M&S and Primark might try to offer modern or trendy products at an effective price. Only then, the rate of switch over costs of the customers might get reduced that might increase the uniqueness and reputation of the retailer or the brand in the market. Thus, it might be clearly revealed that, interaction is the only process by which, a retailer of M&S or Primark might increase its position and image in the market. Hence, it might be stated that interaction might increase the relationship of the customer with the retailer thereby amplifying its control and brand value. So, it might be stated that, it is the relationship or rapport that helps a retailer to retain its customer for longer period of time as compared to many other rival contenders of the market. Hence, relationship marketing acts as a cornerstone in this competitive age to increase the segmentation or positioning of the brand or retailer within the minds of the customers. References Beall, A, E. 2010. Strategic Market Research: A Guide to Conducting Research to solve problems. Boston: Harvard Business School Press. Bradley, N. 2007. Marketing: Tools & Techniques. New York: McGraw-Hill. Drummond, G. & Ensor, J. 2006. Introduction to Marketing Concepts. New York: Cengage Learning. ESOMAR. 2008. Market Research Handbook. London: Sage. Guillén, M. F. & García-Canal, E, 2006. “Execution as Strategy”. Harvard Business Review Vol. 90(10). Gallant, L. M. & Boone, M. G. 2011. Communicative Informatics: An Active and Creative Audience Framework of online Media. Triple Cognition Communication 9(2), pp. 231-246. Henry, M. & Harte, B. 2012. Practitioners articles, A new model for assessing the value of social media activity. Journal of brand strategy 1(3). pp. 234-239. Keegan. 2002. Global Marketing Management. London: Pearson Education. Kazmi, S, H, H. 2007. Marketing Management. Germany: Springer. Mathews, J. A. 2002. Competitive advantages of the latecomer firm: A resource-based account of industrial catch-up strategies. Asia Pacific Journal of Management. 19 (4), 467-488. Porter, M, E. 2008. Competitive Strategy: Techniques for Analyzing Industries and Competitors. London: Simon and Schuster. Read More