Just Do It

Activewear. What can I say? We millennials love yoga pants. Why? Because, they’re amazing. They are comfortable, stretchy and they hide your gut after eating too many smashed avo’s. What more could you want? But just how much do we love active wear? A study conducted by Roy Morgan (2014), reports that 1.6 million millennial Aussies buy men’s and/or women’s activewear within a month period. That’s a lot of lululemon. The internet has changed the activewear industry in BIG WAYS. Social media was largely responsible for the boom in fashionable athleisure worldwide, with big brands like Tommy Hilfiger and even Gucci releasing their own style variations to meet growing demand from trendy consumers.

Opening an online sports retailing store requires the use of effective marketing tactics in order to maintain a competitive advantage in a hugely saturated market (Yee & Sidek, 2009).

I will be discussing three marketing tips that I believe will generate success in an online sports retailing store.

  1. Work out who your target audience is!
  2. Use the right channels to reach that audience!
  3. Use CRM

I will be breaking down each of these tactics as a set of questions for you guys (my subscriber friends). If you are thinking about opening your own online sports retail business one day, stay tuned.

“Who is my target audience and how can I reach them?”

It is important for any business to work out who their main consumers will be (Chaffey & Ellis-Chadwick, 2019). Millennials make up the majority of activewear sales both online and retail (Roy Morgan, 2014). It is important to note that this age group are also heavy social media users (York, 2017). The number of brands using social media in their marketing strategy is staggering. How will you stand out? There are a few ways that brands can capture the attention of their target audience. The most obvious is through content marketing. Strong content gets the attention of customers as well as strengthens search engine rankings (Ramzan & Syed, 2018).  It is important to track current trends, as well as produce content that your target audience can relate too. Content should be informational as well as interactive, ultimately providing a platform for customer engagement (DeMers, 2019).

“What channels should I use to promote my business?”

It is helpful to check out what your competitors are doing, when starting a business (Ogweng, 2018). When choosing a channel to promote your business, you should look at the channels your competitors generate the most success from. It is also important to make sure the platform you chose is one that is most used by your target audience. For example, you wouldn’t be using LinkedIn to try and sell activewear to millennials (duh). New statistics show that 30% of millennials interact with brands at least once a month on social media, and that a majority of these interactions occur through Instagram and Facebook (York, 2017). Based on social media usage statistics in Australia, it is safe to assume that using social media platforms like Facebook, would have significant reach in an Australian market as figures estimate 91% of Australians interact on the public forum (Yellow social media report, 2018). Successful business will ultimately use the platforms that will generate the most reach.

“How am I going to track my success?”


It is incredibly important for businesses to understand their audience. New CRM software initiatives such as Salesforce, will provide you with the ability to track customer participation and interaction with your brand, as well as direct you to areas that need improvement. CRM software has shown to drastically improve customer loyalty as well as increasing company revenue and sales.

Thanks for tuning in today! I wish you all the best on your future business ventures!

References

Chaffey, D. & Ellis-Chadwick, F. (2019). Digital Marketing: Strategy, Implementation and Practice. United Kingdom: Pearson.

DeMers, J. (2019). 6 Social Media Marketing Tactics That Give the Best Bang for Your Buck. [online] Entrepreneur. Retrieved from: https://www.entrepreneur.com/article/274522 [Accessed 9 Septemner 2019].

Ogweng, S. (2018, December 27). The Ultimate Guide To Choosing The Best Social Media Channels For Your Business [Web log post]. Retrieved from Sked Social: https://skedsocial.com/blog/social-media-channels-for-your-business/

Ramzan, U., & Syed, A. R. (2018). ROLE OF CONTENT BASED SOCIAL MEDIA MARKETING IN BUILDING CUSTOMER LOYALTY AND MOTIVATING CONSUMERS TO FORWARD CONTENT. Journal of Internet Banking and Commerce, 23(3), 1-20. Retrieved from https://search-proquest-com.dbgw.lis.curtin.edu.au/docview/2216873543?accountid=10382

Roy Morgan Research (2014), “More aussie women getting sporty”,Retrieved from: http://www.roymorgan.com/ findings/5876-more-aussie-women-getting-sporty-201410212154 [Accessed 8 September 2019].

Watts, L., & Chi, T. (2018). Key factors influencing the purchase intention of activewear: an empirical study of US consumers. International Journal Of Fashion Design, Technology And Education12(1), 46-55. doi: 10.1080/17543266.2018.1477995

Yee, W. F. & Sidek, Y. (2009). “Influence of brand loyalty on consumer sportswear”. International Journal of Economics and Management, 2, pp. 221-236.

Yellow social media report 2018: Part 1 – consumers. Canberra: Yellow; 2018.

York A. (2018). 7 Steps in Creating a Winning Social Media Marketing Strategy in 2018. SproutSocial. Retrieved from: https://sproutsocial.com/insights/social-media-marketing-strategy/ [Accessed 10 September 2019].

The Internet Killed the Radio Star

The music industry has changed tremendously as a result of digital technologies and the internet. Music has evolved throughout the ages, from Tchaikovsky to legends like Frank Sinatra, Elvis Presley as well as Queen and Pink Floyd having paved the way for current and future artists to come (Sorry Travis Scott, Sicko Mode is not the Bohemian Rhapsody of our generation). It is hard to believe that once upon a time people used to listen to music on a vinyl record player. Thinking about my time growing up and listening to Sk8r Girl and So Fresh CD’s on my CD player, it’s hard to believe how much the music industry has changed. CD’s were replaced by MP3 players and then the iPod which have all been made obsolete by smartphones and tablets. In this whirlwind of technological innovation, we have seen the rise of streaming sites like Spotify and Apple Music replacing store purchasing sites like iTunes (and illegal downloading).

Today we will be discussing how the internet and digital technologies have changed the different elements of the music industries marketing mix.

To those of you who are marketing NOOBS (#runescape), a traditional marketing mix is comprised of 4 elements, we marketers refer to these as the 4P’s (Chaffey & Ellis-Chadwick, 2019).

  1. Product
  2. Price
  3. Place and
  4. Promotion

After a while, we decided that people play a pretty big role in business, so we decided to chuck in a few more P’s (Chaffey & Ellis-Chadwick, 2019):

  1. People
  2. Process and,
  3. Physical Evidence

In modern business, we tend to use the 7P’s when breaking down the different elements of our marketing mix. However, today I will focus on the main four points.

Image 1: The 7P’s Applied to the Internet (Chaffey & Ellis-Chadwick, 2019)

Product

To understand product, we need to delve into what a core product and augmented product is (Chaffey & Ellis- Chadwick, 2019). Put simply, the core product is what you are actually buying, and the augmented product is the additional features that accompany it. The core product in the music industry has always been the music itself. However, the augmented product has evolved with the internet and digital technologies impacting the way in which music is acquired, delivered and consumed.

In the past, the music industry employed a mass production orientation, that didn’t quite fulfil the needs of its consumers (Kotler & Armstrong, 2004). Today however, streaming services such as Apple music and Spotify provide listeners with customised playlists as well as a much wider product offering to select from. Streaming platforms have made the product widely available, offering special features that allow consumers to download music and listen offline.

Streaming platforms have transformed the marketing mix, changing the industries offering from product focussed towards service focussed. In an increasingly saturated market, it is important for brands to maintain a competitive advantage and ensure their customers have a unique and pleasant experience when interacting with the product. Mobile music streaming represents the biggest room for growth in the industry, and successful brands will continue to exploit the key features of mobile devices; being that they are always carried, always connected and are highly personal (Gandhi et al., 2009).

Price

Pricing within the music industry has been hugely influenced by the internet. In the past, the music industry maintained absolute power over the pricing of products. When CD’s were released, the music industry raised their prices to reflect the improved quality in audio as well as to cover the higher manufacturing costs (Gamal, 2012). However, when manufacturing became streamlined and less expensive, CD pricing the same (Gamal, 2012).  

Technological changes within the industry have resulted in power shifting to the consumer (Curien, Nicolas & Moreau, 2009). With the music streaming industry becoming increasingly competitive, there has been a growing downward pressure on pricing. To compete with new entrants, music streaming services have undertaken a competitive pricing strategy, which has significantly lowered the costs to the consumer.

Place

Like most millennials, I listen to music all the time, especially when trying to avoid social interaction.  The best thing about living in this digital age, is that we can listen to music anywhere anytime (unless you’re like me and forget to charge your digital devices). In the past, consumers had to go purchase music from physical locations such as record stores, or online through channels such as iTunes.  

Music streaming services provide listeners with the option to stream music through digital devices, both online and offline. This is radically different to the pre-digital era, when radio was the main channel of distribution for new music.

Technological developments in e-commerce have resulted in new intermediaries entering the digital landscape (Sarkar et al., 2006). The internet has the potential to hugely change the way in which music is distributed, with music streaming services having the power to enable disintermediation. What this basically means is, artists can cut out the middle men who were traditionally responsible for their recording and promotion etc, and instead use a platform such as Spotify to do it all themselves (Galuszka, 2015). This has caused serious channel conflicts, especially with major record labels (Dahl, 2009).

Promotion

Traditionally, the music industry focused on transactional marketing, utilising sales orientatied promotional strategies as opposed to developing and maintaining “long-term, profitable customer relationships’ (Gamal, 2012). Promotional strategies often used traditional media outlets like television, radio as well as expensive advertising campaigns (Christman, 2004).  However, developments in technology and internet, provide new and more affordable promotional strategies, that allow artists to distribute music to a much wider audience and increase their fan base (Gamal, 2012).

Taylor Swift promoting her new CD on the Ellen Show

The paradigm has greatly shifted in the promotion of music, with social media and the internet providing artists with the tools to self-promote their work. With most income made from live shows, many artists are opting to release their music for free through channels such as Apple Music and Spotify, in the hope the large network of subscribers will increase ticket sales for concerts and live events (did someone say U2) (Schultz, 2009).

Ultimately, the music industry has been greatly impacted by the digital-era. As a consumer, I feel as though we have greatly benefited from the developments in streaming platforms. I am interested to see how the music industry evolves as the market becomes more and more consumer oriented.

References

Chaffey, D. & Ellis-Chadwick, F. (2019). Digital Marketing: Strategy, Implementation and Practice. United Kingdom: Pearson.

Christman, E. (2004). Retail sales sizzle from Grammy heat. Billboard, 21, 1.

Curien, Nicolas, and Moreau. (2009). “The Music Industry in the Digital Era: Toward New Contracts.” Journal of Media Economics 22, no. 2: 102-13

Dahl, K. (2009). A Change is Gonna Come: The Future of Copyright and the Artist/Record Label Relationship in the Music Industry.

Galuszka, P. (2015). Music Aggregators and Intermediation of the Digital Music Market. International Journal Of Communication9, 254-273.

Gandhi, S et al., (2009). The Future Of Music On Cell Phones. Forrester.com, Retrieved from: http://www.forrester.com/Research/Document/Excerpt/0,7211,54409,00.

Kotler, P., & Armstrong, G. (2004). Principles of marketing (10th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall.

Sarkar, M. B., Butler, B., & Steinfield, C. (2006). Intermediaries and Cybermediaries: A Continuing Role for Mediating Players in the Electronic Marketplace. Journal of Computer-Mediated Communication, 1(3). doi:10.1111/j.1083-6101.1995.tb00167.x

Schultz, M., (2009). “Live Performance, Copyright and the Future of the Music Business.” University of Richmond Law Review 43, no. 2: 685- 764. http://ssrn.com/abstract=1337914

Netflix’s Business and Revenue Model

Netflix is an industry leader in online streaming services. Digital streaming has transformed the way in which we consume media. Online streaming services are slowly replacing expensive television and cable companies such as Foxtel, that require installation and equipment. Incorporating a Business-to-Consumer (B2C) model, Netflix supply content to their customers using an affordable monthly subscription rate. Netflix offer their customers the option to choose from three different subscription packages; basic, standard and premium (Donnelly, 2018).

Netflix’s value proposition lies greatly in the affordability of its subscription prices, their basic package priced at a low $9.99 a month in Australia makes the service viable to low income owners who traditionally were unable to pay the high prices demanded by companies like Foxtel (Donnelly, 2018). In addition to their low prices, Netflix offers their customers an extensive range of both original and licensed content, accessible on multiple devices simultaneously, meaning there is something to watch for everyone (Hayden, 2016). Netflix has 93 million subscribers in more than 90 countries, their target market “anyone who can afford an internet connection” (Lotz, 2017).

Netflix is easily accessible, customers gaining access content through the company’s Netflix.com website and Android and Apple Apps (Hayden, 2016). Using an algorithm, Netflix customers are provided with customised content recommendations centred around previously watched films and tv shows, this feature greatly improves the customer experience of its users. Innovation in their mobile and tablet App adds value to the product with subscribers being able to download and watch content offline which has greatly contributed to the company’s continues success.

Netflix customer relationship strategy has proven to be successful. Giving their subscribers a “voice”, they are able to interact with their content through ratings, providing them with a sense of freedom and control over content (Smith, 2017).  A 24-hour customer service and technical support line also provides streamers with all necessary support and creates a virtual community (Haydon, 2016). Netflix’s revenue source depends solely off monthly subscription’s (Netflix Business Revenue Model, n.d.). Massive investment of revenue into creating original content is risky, however, it differentiates the company from competitors which can potentially grow Netflix’s market share (Radak, 2016).

References

Donnelly, T. (2018). How much does Netflix cost in Australia?. Retrieved from https://www.whistleout.com.au/PayTV/Guides/how-much-does-netflix-cost-in-australia

Hayden, J. (2016). Netflix’s Business Model Canvas. Retrieved from https://www.slideshare.net/JacintaHayden/netflixs-business-model-canvas

Lotz, A. (2017). The unique strategy Netflix deployed to reach 90 million worldwide subscribers. Retrieved from https://theconversation.com/the-unique-strategy-netflix-deployed-to-reach-90-million-worldwide-subscribers-74885

NETFLIX BUSINESS REVENUE MODEL | HOW IT WORKS. Retrieved from https://futureworktechnologies.com/netflix-business-revenue-model-works/

Radak, D. (2016). Breaking Down the Netflix Business Model. Retrieved from https://www.business2community.com/business-innovation/breaking-netflix-business-model-history-future-vod-giant-01582436

Smith, A. (2017). How To Create A Customer-Obsessed Company Like Netflix. Retrieved from https://www.forbes.com/sites/anthonysmith/2017/12/12/how-to-create-a-customer-obsessed-company-like-netflix/#322121a36d22

Innovation in Salesforce.com

Salesforce is a cloud-based stakeholder engagement platform that provides users with a truly contemporary interactive experience in many business areas including marketing, sales, service, commerce, analytics and more.

Salesforce.com was founded in 1999, by Chairman and co-CEO Marc Benioff, gaining an early-mover advantage, the company was the first to provide on-demand software solutions for Customer Relationship Management (CRM) through cloud computing technology (Sraders, 2019). Innovation within the business model, is most notable in the company’s unique product offering. The very first to offer enterprise “software as a service” (SaaS), Salesforce.com offers affordable business solutions to customers, employees and other stakeholders (Desisto, 2017).  The platform is focused on customer acquisition and retention, as well as improving employee productivity and efficiency. Continuously integrating market trends into business strategy, Salesforce.com holds a competitive advantage in the market (DaSilva et al., 2013). A recent example of this is the integration of analytics, machine learning and Artificial Intelligence offerings in the core platform (Henschen, 2017).

Market share for Salesforce.com is currently at 19.5%, more than doubling its main competitors SAP (8.3%) and Oracle (5.5%) (Cuofano, 2019). Deploying a mass marketing strategy, Salesforce.com provides businesses of all shapes and sizes the necessary tools to succeed in today’s digital age of business.

Salesforce continues to develop new business model’s through brand acquisition and partnerships, most notably its recent 2018 acquisition of MuleSoft, which allows Salesforce customers to “connect any application, data and device” through innovative products enabling continued market success (Salesforce Completes Acquisition of MuleSoft, 2018). Adding to its value proposition Salesforce’s partnership with Google, allows customers to increase their marketing effectiveness through the amalgamation of industry leading solutions. Salesforce’s decision to partner with Google, means “customers can now purchase Google Marketing Platform products” such as Google Analytics 360, directly from Salesforce, providing them with a singular integrated platform for online marketing activities (‘The Salesforce and Google Partnership Keeps Getting Better’, 2019).

Video discussing the benefits of Salesforce.com’s partnership with Google

Salesforce.com employs two revenue models. Its subscription-based licencing model drives 93% of the company’s revenue, whilst the remaining 7% coming from Professional Services fees (Cuofano, 2019).

Salesforce’s most increasingly show of innovation is in the evergreen technology platform, transitioning their offering into a predominantly automated process platform “driven by intelligent software” (Angell, 2015).  

References

Angell, B. (2015). Why Evergreen IT Must Be Part Of Your Long-Term IT Strategy. Retrieved 5 September 2019, from https://blog.juriba.com/evergreen-it-concept-or-reality

Cuofano, G. (2019). Salesforce: The Multi-Billion Dollar Subscription Based CRM – FourWeekMBA. Retrieved 4 September 2019, from https://fourweekmba.com/salesforce-business-model/

DaSilva, C., Trkman, P., Desouza, K., & Lindič, J. (2013). Disruptive technologies: a business model perspective on cloud computing. Technology Analysis & Strategic Management25(10), 1161-1173. doi: 10.1080/09537325.2013.843661

Desisto, R. (2017). Why Have Thousands of Companies Selected Salesforce? It’s the Value. Retrieved 5 September 2019, from https://www.salesforce.com/blog/2016/10/why-companies-select-salesforce.html

Henschen, D. (2017). Inside Salesforce Einstein Artificial Intelligence. Retrieved 7 September 2019, from https://www.salesforce.com/content/dam/web/en_us/www/documents/reports/inside-einstein.pdf

Konrad, A. (2014). Salesforce Innovation Secrets: How Marc Benioff’s Team Stays On Top. Retrieved 3 September 2019, from https://www.forbes.com/sites/alexkonrad/2014/08/20/marc-benioffs-innovation-secret/#7de7d3583349

Sraders, A. (2019). What is Salesforce and What Does It Do in 2018?. Retrieved 5 September 2019, from https://www.thestreet.com/technology/what-is-salesforce-14796378

Salesforce Completes Acquisition of MuleSoft. (2018) MuleSoft. Retrieved 7 September 2019, from https://www.mulesoft.com/press-center/salesforce-acquisition-completed

The Salesforce and Google Partnership Keeps Getting Better. (2019). Salesforce.com. Retrieved 4 September 2019, from https://www.salesforce.com/blog/2018/09/salesforce-google-partnership-keeps-getting-better.html

Is banking getting social?

Gone are the days of standing in line at your nearest financial banking branch to cash a cheque or deposit some money.  Innovation in technology has improved the way in which consumers handle their finances. In this current social media age, financial service institutions that embrace social media have a competitive advantage, being able to spot online customer complaints and respond before their reputation is damaged (Kumar & Devi, 2014).

Following on from my previous blog we are going to use the SMFF to discuss how the financial services industry is incorporating social media into their marketing strategy. To quickly review, the SMFF frame work consists of four dimensions:

  1. Scope
  2. Culture
  3. Structure and,
  4. Governance

Scope

Financial service industries were previously defenders when it came to use of social media, operating their platforms’ as a way to inform their viewers through one-way dialogue. However, we now know that social media is a “collective rather than a monologue” (Kumar & Devi, 2014).  When customers have a bad experience with a company they often turn to social media to vent. Many financial service institutions have altered their use of social media in response to this trend, using two-way communication and interacting with customers on a variety of social media channels in order to reduce negative commentary on public platforms (Eldridge, 2017). Small banks are gaining prominence in the industry, responding to consumer behavioural changes and the growing attachment to smartphones in their social media approach, which is largely a result of fintech and branchless brands (Rooney, 2019).

Culture

The social media culture in the financial services industry is still very traditional. However, to handle the ever-changing social environment, many services are incorporating social media elements in order to respond to the rise in online presence amongst customers. For example, many banks have partnered with Apple Pay, allowing quick and easy payments for products on a variety of websites.

Image from https://www.macrumors.com/2019/01/22/australia-commonwealth-bank-apple-pay/

Structure

It is evident that the financial services industry incorporates a network structure, using aspects of social media across all areas, from credit ratings to feedback and referral (Eldridge, 2017).

Attached is an interesting article discussing 5 ways banks use social media in 2019.

https://everfi.com/insights/blog/social-media-marketing-for-banks/

Governance

The financial services industries use an autocratic governance system, enforcing guidelines for both advertising and personal interaction on social media. It is important to maintain a level of professionalism when dealing with customers, and to ensure that all social media activity is in line with the company’s image and values.

Although this topic was rather dry, it is interesting to see the way in which social media has influenced something almost all of us use in our day to day lives, and the progress in change the industry has undergone with initiatives like Apple Pay and PayId making transactions easier than ever.

References

Kumar, K., & Devi, V. (2014). Social Media in Financial Services – A Theoretical Perspective. Procedia Economics And Finance11, 306-313. doi: 10.1016/s2212-5671(14)00198-1

Rooney, K. (2019). Small banks you’ve never heard of are quietly enabling the tech takeover of the financial industry. CNBC [online]. Available at: https://www.cnbc.com/2019/02/15/small-banks-youve-never-heard-of-quietly-power-the-booming-fintech-industry–.html

Eldridge, R. (2016). How Social Media Is Shaping Financial Services. Huffpost [Online]. Available at: https://www.huffpost.com/entry/how-social-media-is-shapi_b_9043918?guccounter=1

Keeping up with King Kylie

NEW YORK, NEW YORK – MAY 06: (EXCLUSIVE COVERAGE) Kylie Jenner attends The 2019 Met Gala Celebrating Camp: Notes on Fashion at Metropolitan Museum of Art on May 06, 2019 in New York City. (Photo by Kevin Tachman/MG19/Getty Images for The Met Museum/Vogue)

Kylie Jenner is one of the most renowned household names of the 21st century. The youngest of the Kar-Jenner Klan, Kylie’s rise to fame is largely a result of her social media use. If you’re an OG Kylie fan, you will remember her from “Vine” (If you don’t know what Vine is, LOOK IT UP). If you’re only recently jumping on the Kylie bandwagon and have lived under a rock for the last decade, Kylie Jenner is a social media sensation with 22 million followers on Facebook, 28 million on Twitter and whopping 144 million on Instagram she’s the real deal when we think of the term “Influencer”. Let us not forget the Kylie Jenner lip challenge, RIP to all the girls who had to explain to their parents why their lips were blue with bruises.

Kylie is also a successful business woman, launching her first business in 2015 “Kylie Cosmetics” and later “Kylie Skin” in May 2019. Kylies monumental success as a businesswoman is evident, recently being declared as the world’s youngest “self-made billionaires” (Meija & Huddleston, 2019).

SHE MAKING SHMONEYYY!

To understand Kylie’s use of social media in her business strategy I will be using the Social Media Marketing Framework (SMMF).

The SMMF proposes four dimensions to social media marketing:

  • Scope
  • Culture
  • Structure and;
  • Governance

What is scope?

Scope refers to how we use social media platforms in marketing. Within this scope, there are defenders and explorers (Felix et al., 2016, p. 120). Defenders use social media to communicate and inform their viewers using one-way communication, where as, explorers focus their social media on integrating, interacting and collaborating with viewers through a two-way communication channel (Felix et al., 2016, p. 120).

Kylie uses her social media presence to interact and engage with her viewers, building a “community” around her brand “Kylie Cosmetics” (Hillier, 2019). Not only does Kylie use her personal social media accounts to showcase her products, she encourages customers to engage with the brand by posting photo’s of themselves wearing her products using the hashtag #KylieCosmetics. Tagging “Kylie Cosmetics” in their photos, Kylie’s customers are given the chance to be reposted on the Kylie Cosmetics Instagram. Through doing this, customers feel involved in the brand and likely to post more about the brand, further generating hype.

What is culture?

Culture refers to the differences in how social media is used (Chaffey & Ellis-Chadwick, 2019). Social media marketing culture can be divided into two categories, a modernist approach characterised by its permeability and acceptance of social media platforms and a conservative approach which uses social media as a mass-marketing channel (Felix et al., 2016; Chaffey & Ellis-Chadwick, 2019).

Kylie’s use of social media is very modern, incorporating social media into all aspects of her life, she often gives her viewers insight on her day to day activities (Fahner, 2018).

Kylie showing her fans her skincare routine on Instagram
https://www.google.com/search?q=kylie+washing+face+snap&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiujZnJg6rkAhUg73MBHT0rA9wQ_AUIESgB&biw=858&bih=758#imgdii=r8Zd103Riic05M:&imgrc=xtaEKN3u6fl36M:

What is structure?

Structure refers to how social media is organised and implemented. To understand this dimension, we need to talk about hierarchies and networks.

A hierarchy structure means a company has 100% control, leaving control of social media marketing in the hands of a clearly defined assignee (Chaffey & Ellis-Chadwick, 2019). In a network structure, however, the responsibility of social media marketing is decentralised and shared amongst all employees (Chaffey & Ellis-Chadwick, 2019).

Kylie Cosmetics has a massive online presence leading me to believe she has a social media team working as a network to ensure the brand is constantly interacting and engaging with customers.

What is governance?

The final dimension of the SMMF, governance relates to how a company controls social media marketing responsibilities and a company’s rules about what can and cannot be said (Felix et al., 2016; Chaffey & Ellis-Chadwick, 2019). To break this down, we have anarchy and autocracy (Felix et al., 2016).

Autocracy is an extreme position that provides precise guideline’s regulating the use of social media platforms by its employees. In comparison, anarchy means there are no rules or guidelines monitoring the use of social media by employees.

In my opinion, it is important to find a middle ground when governing the use of social media. Kylie Cosmetics utilises a multidimensional approach for governance, I believe there would be guidelines regarding employee conduct expectations. However, the role would require freethinking to handle the unpredictable nature of social media and therefore could not be strictly regulated.

Kylie Jenner is a social media marketing GOD, her status as an influencer is irrefutable whether people like her or not. Let me know if you have succumbed and purchased any of Kylie’s products in the comment section below!

Screenshot from Kylie Cosmetics Instagram story

Stay tuned!

References

Chaffey, D. & Ellis-Chadwick, F. (2019). Digital Marketing: Strategy, Implementation and Practice. United Kingdom: Pearson.

Fahner, J. (2018). What You Can Learn About PR Strategy from Kylie Jenner. [online] Spin Sucks. Available at: https://spinsucks.com/social-media/kylie-jenner-pr-strategy/.

Felix, R., Rauschnabel, P. A. & Hinsch, C. (2016). Elements of strategic social media marketing: A holistic framework. Journal of Business Research, 70(1), 118-126.

Hillier, L. (2019). Behind Kylie Jenner’s success in a saturated cosmetics industry – Econsultancy. Econsultancy. Available at: https://econsultancy.com/behind-kylie-jenner-s-success-in-a-saturated-cosmetics-industry/.

Mejia, Z. & Huddleston, T. (2019). How Kylie Jenner became the world’s youngest self-made billionaire at 21. [online] CNBC. Available at: https://www.cnbc.com/2019/03/05/forbes-kylie-jenner-is-the-worlds-youngest-self-made-billionaire.html

Online Customer Experience: The Iconic

Online shopping is undoubtedly one of the best technological innovations since the invention of the mobile phone. It is also one of the reasons I will never be able to buy a home, screw avocado toast. Online shopping is like the adult version of going to an ice-cream shop, except your choice of ice-cream is practically endless. However, consumers tend to have preferences when it comes to choosing the stores they shop at. Why is this you ask? Great question! Rose and Hair (2011), have developed an Online Customer Experience (OCE) framework that provides insight on how consumer experiences impact businesses and their products, from the beginning of the consumer behaviour process to the end. As a consumer, we choose to buy from stores that we feel provide us the most value both mentally and emotionally.

To break down the different stages of the OCE framework, I will be using one of my all-time favourite online retailers “The Iconic”.

Stage 1: Antecedents

When consumers make the decision to purchase a product, they inspect a products features, such as perceived quality, overall enjoyability as well as the risks and benefits associated with making the purchase. These features are gathered through concepts referred to as antecedents that influence our purchasing behaviour. Concepts that influence our purchasing behaviour include information processing (IP), perceived ease-of-use, perceived usefulness, perceived benefits, perceived control, skill, trust propensity, perceived risk and enjoyment (Chaffey & Ellis-Chadwick, 2019; Rose, Hair & Clarke, 2011).

Information processing (IP) refers to how we as consumers interpret the information provided to us throughout the purchase decision-making process (Chaffey & Ellis-Chadwick, 2019; Rose, Hair & Clarke, 2011). The Iconic’s logo in itself acts to influence purchasing behaviour, its classic evenly spaced black and white text presenting a feeling of class and organisation, translating directly to the luxury of the brand. IP refers to a consumer’s interpretation of stimuli.  

Perceived ease-of-use refers to how easily consumer can navigate the web/ mobile site. (Chaffey & Ellis-Chadwick, 2019; Rose, Hair & Clarke, 2011). The Iconic’s, website is easy to navigate, offering product categories on its home page, a search bar, order info (including returns and tracking) as well as a direct link to contact information.

https://www.theiconic.com.au/

In addition to their website The Iconic offer a mobile app for both Apple and Android users that allow for shopping on the go, or for when you have a really bad day and need some material happiness *please tell me that I’m not the only one*

Perceived usefulness refers to how the digital offer will fit into the day to day life of the consumer (Chaffey & Ellis-Chadwick, 2019). For me having access to The Iconic on my phone, means that I can buy on the go. There have been countless times, I have had last minute events pop up (or forgotten about) and needed to buy an outfit ASAP, The Iconic lets me shop from wherever I am, the only two requirements for making a purchase being an internet connection and money in the bank (I’m seriously never buying a house).

Consumers who feel as though they are being rewarded through their engagement with a digital offer, are more likely to support an online brand. Perceived benefits relate to the positive consequences arising from interacting with a digital offer. The Iconic, offer customers discounts through promotional codes allowing them to nab their favourite products at a cheaper price! Customers are also notified when items in their Wishlist go on sale. As a Uni student, The Iconic also offer special discounts for people studying through partnering with UniDays Australia.

Perceived control refers to the feeling of confidence in the environment resulting from the ease of using the web/mobile site. As someone who is constantly on their phone *sorry mum* I am a QUEEN at finding hidden fashion treasures in the deep dark web.

The more you visit a site, the greater your exposure and in turn the easier it is to engage with the content. This is referred to in the OCE framework as “Skill”. When I am shopping at The Iconic, I often utilise their filter option, which allow me to narrow down my search to products more suited to what I am looking for. For instance, I DESPISE cropped shirts, mostly because fashion retailers these days seem to have forgotten that the majority of the human race DO have a torso that continues below their belly button, and that maybe just maybe I don’t want half my stomach on display (especially during a Canberra winter).

Trust and risk play a significant role in determining how a customer behaves online. Customers should feel as though they are not being exposed to risk when reaching their purchasing goals. The Iconic, offers free shipping and returns on products, which allows customers to minimise the risks associated with online shopping *cough cough* unpredictable sizing. Although you cannot always guarantee safety against hackers (Princess Polly I’m looking at you!) secured payment methods are provided to ensure there is a very minimal risk of personal information being stolen.

Lastly, the outcome of a positive online experience or ENJOYMENT. I can confirm I am a huge fan of The Iconic and cannot wait for them to start trialling their drone delivery service in Canberra (insider goss *stay tuned*).

Stage 2: Experience

Shopping experiences are both cognitive and affective, this has been scientifically proven in almost all 90’s and 2000’s films. *Get in loser, we’re going shopping*. Our cognitive state is about how we think about our experiences where as our affective state is how we feel.

When shopping on The Iconic my experience was positive as I was able confident in the brands stocked by the store, I was able to navigate the website easily and find what I was looking for and I was able to use AFTERPAY (the holy grail company for broke millennials) just because your credit rating sucks doesn’t mean your wardrobe should.

https://www.theiconic.com.au/

Stage 3: Consequence

Following antecedents and experience is consequence. There are two consequences in the OCE framework, customer satisfaction and repurchase intention (Chaffey & Ellis-Chadwick, 2019). Customer satisfaction relates to the positive thoughts and feelings you get from engaging with a digital offer, which influences your intent to repurchase from the same online retailer.

PSA: If you haven’t shopped at The Iconic, you should

References

Chaffey, D. & Ellis-Chadwick, F. (2019). Digital Marketing: Strategy, Implementation and Practice. United Kingdom: Pearson.

Rose, S., Hair, N. & Clark, M. (2011). Online Customer Experience: A Review of the Business-to-Consumer Online Purchase Context. International Journal of Management Reviews, 13(1), 24-39.

Case Study: eBay

Discuss how eBay has had to evolve its online brand proposition and communicate it to achieve continued growth.

eBay is an online retail marketplace that utilises a Consumer-to-Consumer (C2C) business model. Digital Marketing strategies play a monumental role in ensuring companies like eBay maintain a competitive advantage in the market. eBay’s brand proposition has greatly evolved through their customer service initiatives, security measures as well as attractive features.

eBays proposition for buyers incorporates “trust, value, selection and convenience”. For sellers eBay provides access to “broad global markets, efficient marketing and distribution and the opportunity to increase sales” (Chaffey & Chadwick, 2019).

eBay’s core service offering allows sellers to list items for sale on auction or at a fixed price. eBay has revolutionised their brand proposition through the utilisation of software technology to automate the selling process and make transactions easier for both buyer and seller. eBay uses Search Engine Optimisation (SEO) for product listings and items can often be found at the top of webpages as well as in sponsored ads. This efficient use of SEO, encourages customers to both sell and buy through eBay through communicating the opportunity for sellers to increase potential sales and buyers to easily navigate through eBay’s extensive product listings.

Security risks are a prevalent issue in online business. eBay has incorporated security measures to tackle the issue of scamming and fraud in their online marketplace. The introduction of the ‘Money Back Guarantee’ program played a huge role in intensifying eBay’s brand proposition, which reduces the risks associated with buying from unknown sellers.

eBay’s also offers appealing features such as their review system, that allows buyers to read the experiences of other customers as well as provide feedback on their transactional experience. This feature also offers sellers to provide feedback on buyers which creates accountability on both sides of the transaction.  

Genuine feedback on eBay sellers page (Go read the rest)
Screenshot from https://feedback.ebay.com/ws/eBayISAPI.dll?ViewFeedback2&ftab=FeedbackLeftForOthers&userid=tryork5ifp&fromPage=-1&iid=-1&de=off&items=25&page=3

Bibliography

Chaffey, D., & Ellis-Chadwick, F. (2019). Digital Marketing. Pearson Education, Australia

What is Digital Marketing?

Digital Marketing concepts were first introduced in the 1990’s when answering your landline meant sacrificing your internet connection. During this time, digital marketing was mainly focused about advertising to customers (Ghotbifar, 2017). In 1999, the world was introduced to WiFi (*Hallelujah*), with it the birth of the social media era swiftly ensued, and the days of PC4PC enamoured the lives of teenagers globally. This new age of internet saw to digital marketing being transformed from an advertising-oriented strategy into a concept that creates consumer experience and encourages active engagement across platforms (Brosnan, 2012).

Digital marketing in short can be defined as “achieving marketing objectives through applying digital technologies and media” (Chaffey & Ellis-Chadwick 2016). Ultimately digital marketing involves the management of different forms of online company presence through the optimisation of communication techniques to achieve the marketing objectives of a firm.

The significantly increasing use of technology in business has resulted in digital marketing becoming an essential tool for businesses to maintain a competitive position in the market.

The 5 S’s of Internet Marketing

There are five elements of digital marketing that firms should focus on to ensure they are reaching their marketing objectives. These are sell, serve, speak, save and sizzle. A fundamental part of marketing is to increase a firm’s sales, companies can increase their sales by opting to sell online, this includes “direct online sales and sales generated offline through influence from online channels (Chaffey & Smith 2012)”. To put simply you do not want to be investing funds into digital marketing activities without making a return on that investment.

Secondly, we have serve. Customer services on digital platforms must be efficient and effective, providing additional benefits for customers as well as inform customers through online dialogue and feedback on new products and product developments. You want your customers to feel as though your products add that extra bit of sparkle that competitors lack.

Next, we have speak. It is important to get close to your consumer, this can be achieved through keeping an open dialogue and engaging with customers as well as conducting surveys and market research to gather deeper knowledge about your audience. Find out what your customers want and give it to them, if they have concerns make sure you’re the first point of contact to resolve the issue!

Traditional advertising costs can be minimised through applying digital marketing strategies, this is where “save” comes in to play. Costs resulting from labour, printing and postage can be minimised through “online email communications, sales and service transactions”.

Sizzle refers to how the brand can extend itself through its online presence. This can be done through creating memorable experiences, providing new and original content as well as new propositions for customers. Positive experiences will help create a loyal brand community and increase your sizzle.

So there you have it! The basics of digital marketing, stay tuned for my next blog post discussing eBay.

Bibliography

Brosnan, F. (2012). Business intelligence: What works where in B2B digital marketing. Journal of Direct, Data and Digital Marketing Practice , 14 (2), 154-159.

Chaffey, D., & Ellis-Chadwick, F. (2016). Digital Marketing. p.11.Harlow: Pearson.

Chaffey, D & Smith, PR. (2012) Emarketing Excellence, Planning and optimising your digital marketing, 4th edn, Taylor & Francis

Ghotbifar, F. (2017). Identifying and assessing the factors affecting skill gap in digital marketing in communication industry companies. Independent Journal of Management & Production , 8 (1), 001-014.

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