Assessment Solutions of Customer Acquisition Cost- MC5055

Assessment Solutions of Customer Acquisition Cost- MC5055

Running Head: DIGITAL MARKETING.
Digita l marketing.
Name of the student:
Name of the university:
Author Note:
1 …

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Running Head: DIGITAL MARKETING.
Digita l marketing.
Name of the student:
Name of the university:
Author Note:
1 DIGITAL MARKETING.
Table of Contents
Introd uc tio n ………………………….. ………………………….. ………………………….. ………………………….. 2
Disc ussio n ………………………….. ………………………….. ………………………….. ………………………….. .. 2
Orga nisatio n back gro und ………………………….. ………………………….. ………………………….. ……. 2
Digita l a ud it ………………………….. ………………………….. ………………………….. ………………………. 3
Objectives ………………………….. ………………………….. ………………………….. …………………………. 4
SMART ob jectives ………………………….. ………………………….. ………………………….. …………. 4
5S’s fra mewo rk ………………………….. ………………………….. ………………………….. ……………… 5
Strate gy ………………………….. ………………………….. ………………………….. ………………………….. .. 5
Tactics ………………………….. ………………………….. ………………………….. ………………………….. …. 6
Actio ns ………………………….. ………………………….. ………………………….. ………………………….. … 7
Cont ro l ………………………….. ………………………….. ………………………….. ………………………….. … 8
Le ga l ………………………….. ………………………….. ………………………….. ………………………….. ……. 8
Conc lusio n ………………………….. ………………………….. ………………………….. ………………………….. . 9
2 DIGITAL MARKETING.
Introductio n
In this report on Digita l Marketing, the aim is to assess and analyse the online mar ke t
space as well as affected influe nce of the dynamic digita l environme nt on the marke tin g
activities as well as for consumers along with developing a conceptual and analytica l approac h
within the planning of digita l marketing programme to the organisatio n and market. For this
purpose of report H&M has been taken where investiga tio n of the present opportunities thro ugh
the use of digital approach to market their offerings will be conducted. It will even invo lve
complia nce with the present digita l marketing audit for H&M by covering the theme of
acquiring newer customer segment and lead generatio n as well as user experience to the
customers (Chaffey and Smith 2017 ).
Discussion
Organisation background
H&M Hennes & Mauritz AB is a multina tio na l clothing organisatio n with headquarte r
in Sweden, Stockholm which emphasises on fast fashion clothing for women, men, child re n
and teenagers. They operate over 74 countries with over 5,000 stores under the company’s
brand. H&M has an active social media presence over the major channels which includ e s
Twitter, Facebook, Instagram and LinkedIn where the various profiles are dedicated for vario us
geographica l location and outlets and even their social media campaign are engaging such as
‘Rewear It’ campaign has connection with the World Recycle Week where customers are
encourages to recycle. They even have their own offic ia l website by the domain name ,
www.hm.co m and sell their products through other thir d-party websites in diffe re nt
geographica l locations (Hanlon 2021 ).
3 DIGITAL MARKETING.
Digital audit
As per the d igita l PESTLE analysis findings, the legal and technologica l factors high ly
impact the digita l presence of the company such as they have made consistent investm e nt fo r
improving the customer satisfactio n and experience for them to have a quick, smooth and hassle
free process, for this they have launched their mobile applicatio n with reward system. Anothe r
factor which impacts their digita l presence are the Data Protection and Freedom of Informa t io n
regulatio ns as following these will present them as a trustable brand online for the custome rs
(Piñeiro -Otero and Martínez -Ro lá n 2016 ).
H&M is further influe nced by digita l micro -enviro nme nt factors such as competito rs,
suppliers, customers and market intermed iaries . The present digita l customer base of the
company are motivated by the fast fashio n where their customer insight consist of two
categories namely practical and f ashionab le as well as trendy consumers where the motiva t io n
is to receive offers and deals on the latest f ashion clothes and accessories, which they do not
receive by purchasing from the physical stores (Alghizzawi 2019 ).
As per the competitor analysis, i t is seen that on the digita l platform Zara, Gap, Foreve r
21, Uniqlo, ASOS, Macy’s, American Eagle Outfitters and Abercrombie and Fitch. Out of
these Zara is one of the biggest digital competi tor where they have conducted several successfu l
integrated camp aign which has gained employee engageme nt and have launched their own
sustainab le clothing line that has gained appreciation from customer on digita l platforms (Ba la
and Verma 2018 ).
Through the use of RACE framework, H&M performs digita l audit by keeping metric s
such as audience volume, quality, cost and value for Reach , for Act the metrics they opt for are
lead conversion rate, time on site, subscribe, likes and shares, for Convert the metrics they have
set are sales, revenue, profit, conversion and orde r value and lastly, for Engage, the metric s
4 DIGITAL MARKETING.
they have adopted are repeated purchase, satisfactio n and loyalty and advocacy. The place and
promotion strategies within marketing mix, they have opted for selling through their offic ia l
website along with other third -party websites and conducts promotio n through social med ia
channels, where they have addressed the 5I’s framework where they have set their strategie s
on the basis of intellige nce, interve ntio n, imple me nta tio n, involve me nt and impact (Cha ffe y
and El lis-Chadwick 2019 ).
The online value proposition of H&M is that the consumers will be boiled down to the
aspects of on -trend clothes at an affordable price range where the retailers offers an entire
clothing range staples in an addition of other options such as footwear, swimwear, outerwe a r
and accessories.
Obje ctive s
The objectives for this digital planning for H&M as per the key findings of the aud it
analysis conducted will be addressing the theme of acquiring new customer segment and lea d
generatio n as well as user experience .
SM ART obje ctive s
ï‚· Spe cific : To acquire younger customer segment who utilises the social media platfo rms
and are up to date to the fashion trends.
ï‚· M e asurable : To achieve 30% increase in the consumer from the age group of 18 to 25
years old for lead generation.
ï‚· Achie vable : To achieve lead generatio n and gain user experience, enhance the offic ia l
website and increase promotion on social media channels.
ï‚· Re le vant : To achieve the same through social media advertise me nt and developin g the
technologica l team for the development of officia l website.
5 DIGITAL MARKETING.
ï‚· Time -bound : To achieve 20% increase in lead generatio n and 30% increase in sale s
within the next 3 months.
5S’s frame work
ï‚· Se ll : To increase sales of through online channels by 30% for the age group of 18 to 25
years old consumers.
ï‚· Se rve : To increase value by providing additiona l benefits such as discounts and offe rs
through online purchases.
ï‚· Spe ak : To increase social media advert iseme nts on Instagram, Facebook and Twitter.
Strate gy
The t arget market of H&M on the digita l space will be majorly the consumer group
belonging from the age group of 18 to 25 years old , male and female, who regularly utilise s
social media platform to communica te and prefer up to date fashion and are from medium to
high income range family structure. They will be pos itioning themselve s on the digita l platfo rm
as an affordable and high -qua lity clothing and accessories brand which are trendy and will be
availab le through various online platform. They can adopt online value proposition fo r
positioning of the company online as product positioning which will include developing bene fit
for the consumer by aligni ng the features of with the specific needs of the target audie nc e
(Järvine n and Karjaluoto 2015) .
The tactical tools or channels which H&M can adopt is advertiseme nt and sale s
promotion which has been utilised as a communic atio n tool for marketing campaig n which are
above the line media campaign that can be conducted on the digita l platform and social med ia
channels such as Instagram, Twitter, Facebook, LinkedIn and YouTube. Through social med ia
channels, it will enable the brand the audience to engage wit h their target audience while
providing data and informatio n on their latest launches, products, services and values. The y
6 DIGITAL MARKETING.
can utilise social media channels, they can rapidly reach the consumers which has been
considered as a target market by the company. The tactics which H&M can adopt the purpose
of acquiring a new customer segment, lead generation and generate user experience . Simila r ly,
the consumer’s engageme nt level can be measured through Net Promoter Score, Custome r
Acquisitio n Cost, Customer Satisf actio n Score, Users’ Action and Page Visit Freque nc y
(Veleva and Tsvetanova 2020) .
Tactics
ï‚· Pay pe r click : Pay per click strategy is a form of digita l marketing tactic where the
advertiser pays a certain fees every time a user clicks on the advertiseme nt which is a
method of purchasing from the website or attempting to earn informatio n in an orga nic
manner. It enables the advertiser to bid for the advertise me nt placement within the
search engine’s sponsored link when a user searches the keyword which are r elated to
the business offerings (Taimine n and Karjaluoto 2015) .
ï‚· Se arch Engine Optimisation : It is a form of digita l marketing tactic which is meant to
the process of enhanceme nt of the website in order to increase the visibility whe n
consumers search for a certain product or offering which are related to the business in
Google, Yahoo and Bing as well as other search engines, for the better visib ility of the
page to gain attention and attract the existing and poten tial customers (Faruk, Rahma n
and Hasan 20 21) .
ï‚· Email marke ting : Email marketing can be conducted by the brand which is a form of
market which can enable the customers to register themselve s in the offic ia l email list
of the company through which they can be aware of the new offerings and launches as
well as the ongoing sales, discounts, offers and other services can be utilised fo r
educating the audience through the brand’s value and keeping them engaged betwee n
the two purchases (Mincule te and Olar 2018) .
7 DIGITAL MARKETING.
ï‚· Social me dia: Social media marketing is a useful method for the business to reach the ir
existing and potential customers. Through such a marketing, the customers can be
reached through platforms such as Facebook, Instagram, LinkedIn and Twitter where
benefits such as brand profile optimisa tio n, posting, engaging, advertising and
measuring can be conducted (Soedarsono et al. 2020) .
ï‚· Conte nt marke ting : Such a form of marketing can be utilised for attracting, enga gin g
and retaining the audience by the creation and sharing of the related articles, po dcasts,
images, videos and other forms of media in order to establish an expertise, promote s
the brand and conduct brand awareness by keeping the offering at the top of consume r’s
minds (Kannan 2017) .
Actions
Particulars Actions Budge t Time scale Re spon sibility
Pay pe r click Google and
Bing
$1,000 3 months Marketing
department
Se arch Engine
Optimisation
Google and
Bing
$1,000 3 months Marketing
department
Email
marke t ing
G-mail and
Yahoo mail.
$500 3 months Marketing
department
Social me dia
marke ting
Facebook,
Twitter,
Instagram,
LinkedIn.
$3,000 3 months Marketing
department
Conte nt
marke ting
Videos,
pictures,
$1,500 3 months Marketing
department
8 DIGITAL MARKETING.
articles and
podcasts.
Control
The consumers’ engageme nt level can be measured through the metrics such as;
ï‚· Ne t Promote r Score : This metric is used for the measureme nt of the trust within
customers on the company’s offering and the willingness for recommend ing the same
to other customers. This will enable them to check the customer loyalty and
alternative ly the amount of efforts within the customer service is measures (Siha re
2017) .
ï‚· Custome r Acquisition Cost : This metric is used for the measureme nt of cumula t i ve
index of the customers’ satisfactio n and is valuable for sales and marketing where the
company and investors are the two major parties and the cost is undertaken for trad ing
cost, advertise me nt cost, innovatio n cost, and technica l cost (Visser, Sikkenga and
Berry 2019) .
ï‚· Custome r e ffort score : It is such a metric whi ch will measure the customer experie nc e
which can be measured through survey on the effort exhibited by the customer when it
comes to interacting with the company through digita l means.
Le gal
The legal requireme nt before launching the digita l marketing plan for H&M which the y
need to consider are related to privacy and data which are the legal priorities where the priva c y
aspect of the customer needs to be considered where data regulatio ns as well as guidelines are
to be considered of the customers. The second aspect to be considered is intellec tua l property
issues where internet laws are need to follow for the protection of customer online where the
9 DIGITAL MARKETING.
business’s trade secret cannot be revealed. Lastly, cloud storage needs to be considered in order
to avoid copyright infringe me nt (Teixeira et al. 2017) .
Conclusion
Therefore, in order to conclude this report of digita l marketing on H&M, it can be stated
that the company has a strong digita l presence through their offic ia l website as well as socia l
media platforms, although, in order to achieve a new customer segment, conduct lea d
generatio n as well as p rovide user experience, it is crucial for them to adopt certain digita l
marketing measures to further enhance their digita l presence.
10 DIGITAL MARKETING.
Re fe re nce s
Alghiz zawi, M., 2019. The role of digita l marketing in consumer behavior: A survey. Int. J.
Inf. Technol. Lang. Stud, 3(1), pp.24 -31.
Bala, M. and Verma, D., 2018. A critical review of digita l marketing. M. Bala, D. Verma
(2018). A Critical Review of Digita l Marketing. Internatio na l Journal of Management, IT &
Enginee ring, 8(10), pp.321 -339.
Chaffey, D. and Ellis -Chadwick, F., 2019. Digita l marketing: strategy, imple me nta tio n &
practice. Pearson uk.
Chaffey, D. and Smith, P.R., 2017. Digita l marketing excellence : planning, optimizing and
integrating online marketing. Routledge.
Faruk, M., Rahman, M. an d Hasan, S., 2021. How digita l marketing evolved over time: A
biblio metric analysis on scopus database. Heliyon, p.e08603.
Hanlon, A., 2021. Digita l marketing: strategic planning & integratio n. Sage.
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Kannan, P.K., 2017. Digita l marketing: A framework, review and researc h
agenda. Internatio na l Journal of Research in Marketing, 34(1), pp.22 -45.
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11 DIGITAL MARKETING.
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