Innovation in Digital Marketing - A Case Study of Topshop UK
by
[Tilak Bhattarai]
[5954]
[Faculty Name]
[Department or School Name]
[Month Year]
TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION1
Research Background1
Rationale for Study1
Research Aims and Objective2
Research Questions2
Research Hypotheses3
Company Profile - Topshop retailers3
CHAPTER 2: LITERATURE REVIEW4
Introduction4
Marketing4
Digital Marketing5
Channels of Digital Marketing6
SEM- Search Engine Marketing6
Online PR7
E-mail Marketing Method7
Viral Marketing8
Digital Marketing and Multi-Channel Communications8
The Changing Nature of the Internet9
Social Media Networks9
From Online Communities to Social Networking11
Social Media Marketing13
Conceptual Framework14
CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY15
Research Methodology15
Data Collection Methods15
Sampling Technique15
Literature Search16
Data Collection Technique16
Research Strategy for Case Study16
Limitations17
Analytical Technique17
Ethical Considerations17
Timetable18
REFERENCES19
APPENDIX22
CHAPTER 1: INTRODUCTION
Research Background
During the past few years, Marketing has dramatically changed. Different innovative technologies, starting from social mobility and social media to rich digital media devices and other user interfaces, have been transforming and continuously changing the ways in which business and consumers interact with each other. Hence, the way marketers interact with their customers (Fifield & Gilligan, 2006, 45). Therefore, digital marketing is becoming a major concern for the marketers everywhere around the world. In order to attract consumers, marketers need to become extensively responsive and adaptive. They have realised that success can be achieved through innovative real-time links with the customers, personalised and integrated brand experiences and websites and better customer intelligence (Richard & Moore, 2004, 56).
This research carries a detailed description about digital media marketing and how the innovation of social media networks has impacted the world of marketing. Furthermore, by analysing the case of Topshop - a British retailer, the importance of digital media will be understood.
Rationale for Study
With increasing competition, organisations have been striving to attract more and more customers. They are developing various strategies to build up strong relationships with their customers. Therefore, digital media marketing has been increasingly gaining importance as an effective marketing tool these days. This study is based on devising various effective tools for digital media marketing.
The purpose of this research is to identify how social media marketing is affecting the marketing trends. It will provide assistance for organisations to develop their strategies accordingly. It is expected that the research will help the marketers in understanding the benefits of social media and how they can effectively communicate and attract customers by using social media as a strong marketing tool.
Research Aims and Objective
The aim of this research is going to be based on analysing the changes occurring in digital marketing. The objectives of this research are:
To analyse the impact of digital marketing
To understand how social media can be used as an effective tool by Topshop retailers
To analyse the benefits of social media marketing for Topshop retailers in Fashion Industry
Research Questions
Research questions are formed in the beginning of the research since, the research findings are based on analysing the research questions. Research question for this study are stated below:
What is the impact of digital marketing?
What is the role of social media marketing?
How Social Media Marketing can be used as an effective marketing tool by Topshop?
What are the benefits of social media marketing for Topshop retailers in Fashion Industry?
Research Hypotheses
Digital media has a significant impact on consumers
Social media marketing has a significant impact on CRM
Company Profile - Topshop retailers
Topshop is one of the biggest clothes retailers of United Kingdom, having shops in more than 20 countries and functioning online in some of its markets. It is a part of Arcadia Group, which owns a number of other retail outlets that include Dorothy Perkins, Miss Selfridge and Burton.
Topshop, since its launch in 1964, has become one of the biggest success stories in the world of fashion. Capturing the feel of the season, it brings out an impertinent approach in all of its styles. It has, therefore, been able to grab the attention of industry and fashion conscious people alike.
With almost 300 stores established in United Kingdom and around 100 stores across the globe, Topsop has emerged as one of the top most retailers of UK. Beginning in a basement of Peter Robinson department store, it later turned into a stand-alone retailer.
CHAPTER 2: LITERATURE REVIEW
Introduction
Advances in technologies have brought substantial changes in the marketing landscape. One such change is the declining power of traditional media. Due to disruptive technologies (e.g., TiVo), fragmentation of media consumption, and consumer skepticism toward traditional marketing attempts, traditional media are losing their effectiveness.
Another change is consumers' burgeoning power. With the emergence of Web 2.0, consumers have more communicative power than before. Participatory media provide faster and easier ways for consumers to become involved in creation, consumption, and distribution of various web contents (Bagozzi, 2005, 32). Organisations have to face a number of challenges when it comes to internet marketing. These challenges include the significant changes revolutionizing web, large number of suppliers that offers several tools, platforms and services for online marketing and the ample amount of information that is available on a particular subject. All these things make it very difficult for different businesses to make clear decisions of how to advertise and market their business through the internet.
Marketing
According to Cameron (2005) marketing is used for identifying potential customers, keeping and retaining the existing customers and satisfying their customers. Marketing management develops its activities that focus it customers. This strategy is known as business management, which is one the essential component of marketing. The adoption of various marketing strategies needs the organization to focus mainly the perceived needs and wants of their customers for increasing their profitability.
Kotler & Keller (2008) have explained the concept of marketing as achieving the objectives and goals of a firm by gathering information and assessment about their customers and by providing them satisfactory product or service. The concept of marketing also states that in order to meet the goals of the organisation, the firm needs to assess its customer's needs and wants and satisfy them in a more effective manner than their competitors.
Jones (2001) proposes that marketing proficiency benefits an organisation to generate and sustain a good relationship with its customers and partners. The impression on the influence of marketing according to the existing literature states that, the business performance of an organisation is mainly influenced by the character of the organisation. An organisation with superior market orientation would often outperform smaller market competitors in terms of providing healthier and substantial customer value.
Digital Marketing
Digital marketing is a technique through which companies promote their brands by using all kinds of digital channels of advertising in order to convey their messages to their target customers. Digital Marketing include Radio, Mobile, Television, Internet and Social Media Marketing, which is one of the most popular and emerging form of digital marketing (Salomon, 2009, 114).
Where, digital marketing includes a number of practices and techniques that also fall under the category of Internet Marketing, it expands beyond this. It also includes channels that do not require the usage of internet. Past few years have experienced a rage of innovation, investments and experimentation on the form of digital and interactive advertising. According to industrial analysts, digital media is one of the modes of interactive marketing that is growing at a highest speed.
The term “Digital marketing” is defined encompassed with things search engine optimization, pay-per click and banner advertising. This also includes, RSS, instant messaging, wireless text messages, video streams, blogging, fax broadcast, video broadcast, email and podcasting (Fulk & Power, 2007, 529). Most importantly, digital marketing is mainly focused on interacting through the internet that has proved be a powerful marketing tool as well as a strong communication vehicle. The Internets is used for both push and pull strategy. The push strategy is applied as a message is sent to someone, such as IM, email, voice broadcast and RSS, whereas the pull strategy is applied when content is attracted by banner ad and pay-per click searching terms (Meyrowitz, 2005, 27).
According to Rice (2008), Digital marketing is defined as the practice of promoting services and products by using databases via online distributing mediums to convey marketing messages to the customers.
Channels of Digital Marketing
There are a number of channels used by businesses for digital marketing:
SEM- Search Engine Marketing
In this type of digital marketing, messages are placed on various search engines that encourage and influence users to click through a web site when the user types a particular keyword. Pay-per Click and Search engine optimisation are two key disciplines that boost an organisation's position in natural listings of search engines (Ferguson & Perse, 2000, 155).
Search engine marketing has proved very influential in targeting users as a purposeful moment. It helps in creating an equally levelled field where all companies, whether small or large, are listed together providing drive-response.
Online PR
Online PR helps in maximizing favourable number of mentions of the organisations, brands, products, etc, through various websites that include, blogs, media sites or social networks that are likely to be visited by target audience (Ferguson & Perse, 2000, 155). Online public relation provides businesses a low-cost route for increasing awareness of the brand to businesses. It also helps in attracting visitors and increasing the back-links to websites.
E-mail Marketing Method
The most commonly and widely used method of Digital Marketing is sending messages to customers through e-mail. The main reason why marketing through e-mail is so commonly used is that it is highly inexpensive n comparison to other marketing tools. E-mail marketing helps in sending messages anytime, anywhere, and enables the marketers and firsm to measures the responses easily (Cano, Boles & Bean, 2005, 283).
Companies that use e-mail marketing method, target their potential customers through their e-mail accounts. The firms collect e-mail addresses of customers from different forums and websites, and can also be collected through common friends.
Email marketing targets customers through their email accounts. The email addresses of potential customers can be gathered through various forums, websites can be collected from a common friend. Jackson (2004) addressed email direct marketing as a relatively inexpensive alternative to postal direct mail and a means of overcoming shrinking marketing budgets but cautioned that permission to send email messages to a recipient is critical for effectively reaching prospective customers. Cassidy (2006) reported that 52% of email users who had given marketers permission to send them advertising messages via email held highly favourable attitudes toward permitted email, whereas 53% of overall responders said they were willing to receive advertising messages only if the messages were relevant to their needs and/or interests.
Viral Marketing
The concept of viral marketing can be understood as distribution and communication of digital products to potential customers through electronic mail by existing customers in their social circle and they can also animate these contacts for transmitting the products (Seggie, Cavusgil & Phelan, 2007, 834).
Digital Marketing and Multi-Channel Communications
Whilst, digital marketing is considered to be effective in a single communication type, according to Lievrouw (2000), it is more effective when a number of channels are combined together. For instance, if a company is promoting the launch of its new product, it could send e-mail messages to their target customers or text them individually, which will yield positive outcomes if executed properly. Nevertheless, this marketing can be become more effective if the message is communicated through a number of mediums.
The Changing Nature of the Internet
With globalisation spreading significantly around the world, the internet use is increasing, and the statistics of its growth are astonishing. The philosophy: “Build it and they will come” did not really work when it comes to internet, whilst the message has taken a long time to penetrate through the corporate world, another philosophy has taken birth: “Facebook it and they will come”, which is gaining extensive attention of the marketers (Auer, 2007, 9). This excitement towards social networks is now leading number of businesses to believe that it is a solution of trafficking and customers can easily access by involving interacting through social media. While the internet has come up with numerous opportunities and ways for businesses to market, the businesses now need to act very smart to have positive outcomes and here acting smart means businesses need to be well informed regarding the current trends.
With the new technologies emerging and web changing continuously, it has become possible for non-technical users to interact through social media, which includes support channels, reviews, blogs, business chat, consumers feedback, online videos, etc (Alan, 2005, 108). All these things are not just a form of interaction, but they also increase the level of sharing exponentially and provide a number of platforms through which people can access the information.
Social Media Networks
“Social network” is certainly not a novel term, as we are all in some way or another part of at least one social network (and most likely several simultaneously, both “real” and online). However, with the rise in availability and technical capabilities of the Internet, online social networks have enjoyed a boom in recent years. As of July 2006, myspace.com (an online social network) has surpassed such Internet behemoths as MSN, Google, and Yahoo! in online traffic to become the most often accessed web site in North America (Auer, 2007, 20). This milestone is the culmination of MySpace's traffic increase of 132% over the last twelve months, and a staggering increase of 4,300% over the last two years.
While the reasons for the recent, prodigious increase in popularity are varied, online social networking has been in existence for as long as computers have had networking capabilities. In fact, the formation of the Internet itself has always centred on the idea of a community as the first email discussion list was created in 1975, followed by USENET bulletin board discussions that came into existence in the late 1970's. These developments have since fostered individual bulletin board systems, instant messaging, and most recently, “blogging” and online communities that incorporate a “personal ad” style, like facebook.com and myspace.com (Richard & Moore, 2004, 56).
Although the factors behind the meteoric rise in popularity of online social networks are varied, the changes in communication practices that have resulted can not be denied. In an age where TiVo and pop-up blockers have hit the advertising world hard by allowing would-be audiences an escape route from exposure to advertisements, many companies are now looking to online communities as an innovative, fresh, and “hip” way of targeting particular demographics with perfectly tailored messages (Kotler & Gerald, 2002, 554).
Social networking creates new opportunities for arts organizations because it provides arts audiences with "new forms of collective and personal cultural experiences." The dynamics of spreading cultural content and getting feedback substantially depends on the social interaction of people between each other, as well as with arts organizations and artists. This interaction can be more efficiently achieved through encouraging people to share experiences, information, and emotions based on the cultural content using new media communication tools. In the last decade, social networking sites have become the most powerful new media communication tools. One of the most enthusiastic researchers in the field of social networking, Jones (2001) defines social network sites as "web-based services that allow individuals to (1) construct a public or semi-public profile within a bounded system, (2) articulate a list of other users with whom they share a connection, and (3) view and traverse their list of connections and those made by others within the system." A great deal of theoretical research indicates that social networking sites have become extremely popular among a broad global population: "In the past few years, social network sites have become integrated into the daily practices of millions of users, most visibly those of young people, but usage is rapidly spreading to older people and other groups."
From Online Communities to Social Networking
The beginning of theoretical discourse of online communities harkens back to the mid 90's when the first virtual communities began to appear. Early research characterized virtual communities as groups of people with shared interests or goals that interact through electronic means of communication. While traditionally, the term "community" is likened to a geographic area such as a neighbourhood, the "virtual" aspect of the term indicates that the primary interaction in such communities is enabled by technology (Ferguson & Perse, 2000, 170). As other research points out, communities are able to emerge and sustain themselves virtually through computer-mediated communication means that allows geographically dispersed individuals to locate and to communicate to others with similar interests.
When virtual communities began to appear, many scholars attempted to understand the nature of such electronically mediated communities and questioned their ability to become a social entity. Thus, many works investigated what reasons attract people to such communities, how they express themselves online, what motivates them, and how they govern themselves. This group of community investigation is classified by American scholars Jennifer Preece and Diana Maloney-Krichmar as methodologically driven by ethnography (Castells, 2006, 68).
The essence of virtual communities was further studied from sociological as well as technological perspectives. Some of the findings indicate that the nature of communities is rooted in the socio-technological configuration provided by Internet and that social innovations drive the development of the technologies and not vice versa. In comparing real and virtual communities, virtual communities are perceived as technologically advanced structures that reflect a need for socio-cultural diversity (Borden, 2004, 33). As a group of scholars, from the Research Institute Internet Society points out, the needs of communities to advance their online tools to communicate and interact virtually pushed the development of social software and gave birth to such a phenomenon as social networking.
Social media sites are no longer a fringe activity or media for primarily the under-30 demographic. In March 2010, for the first time, more users visited Facebook than Google, marking a 185% increase for the site as compared to a 9% increase for Google. By the end of 2011, Facebook is expected to have 600 million plus users and in mid-2012, it is anticipated that there will be a billion users (Wellman, 2010, 2031).
Social Media Marketing
One survey reported that 83 million US Internet users created some form of user-generated contents - UGC - and 116 million consumed these in 2008 (Salomon, 2009, 116). Further, it is expected that UGC consumption will continue to grow and will reach 155 million by 2011. Consumer-generated product information, one type of UGC, has emerged as an essential source for consumer product information, due, in part, to its trustworthiness. Indeed, about 89% of US online shoppers read consumer product reviews before purchasing a product. On the Internet, various web platforms, such as review websites (e.g., epinions.com), retailer websites (e.g., amazon.com), and brand websites, allow consumers to share product-related information with a multitude of other consumers. According to Booms & Bitner (2001), social media is exceeding both television and radio advertising in terms of total spending and investments on ads.
A current study shows that the there has been 10 percent increase in the global use of Web since last January till this January. Billions of dollars are spent on marketing through traditional mediums and now the trend has shifted towards digital marketing, which is expected to increase in future.
The most recent statistical research of 2010, conducted by the Wellman (2010), provides some impressive data, indicating a high popularity of different social networking sites among the population. Moreover, 36% of social internet networks users belong to the population older than 45 years old. The report points out, that more than a half of social network users have two or more online profiles.
Conceptual Framework
The diffusion of innovation theory was initially presented in 1960's and is applied for attracting and influencing a huger group of people. This theory examines how new practices, objects and ideas are circulated and spread among a group of people, by using mass communication and interpersonal communication channels. This theory was later on reviewed by Roberto and Kotler in 1989 and its application in digital media marketing (Kotler, 2002, 554). They have stated that there are various types of adopters in all the chosen or targeted audiences that are motivated in different manners for adopting a new behaviour. Rogers (1995) presented these motive and adopters are divided into five segments: (Bagozzi, 2005, 35)
Innovator: new perception, object, practice or idea
Early Adopter: These realise the need and requirement of innovation when they interact with innovators
Early Majority: need of matching up with others with a certain level of deliberation
Late Majority: need of following the current trend when they are satisfied that early majority has justified the change.
Laggard: need of respecting the traditions
In other researches, Roger has given a detailed description about how these segments are differentiated in terms of communication patterns, demographics, etc. This theory explains the how social media is affecting and changes the perception of consumers as an innovative strategy.
CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY
Research Methodology
This research is going to be based on the secondary information and questionnaire survey. The research encompasses the publications, articles and similar studies accessible on the Internet. Keeping in view, the approach taken in earlier studies the research began with a broad analysis of the existing literature. The findings & conclusions are based on the secondary data and questionnaire results (Kumar, 2007, 37).
Data Collection Methods
Sampling Technique
Surveys provide an inexpensive, accurate, efficient and quick means of acquiring information. They are highly flexible and when conducted appropriately, can turn out to be extremely beneficial for the managers. For this research, survey was conducted through questionnaires, which was used with the important informants (Kumar, 2007, 38). In questionnaires survey, the accuracy highly depends on the sample size taken. Thus, for this research the samples selected are 30. The questionnaire was conducted from the managers and employees of Topshop retailer of UK and various other marketing managers and customers in order to understand the impact of digital media marketing.
Literature Search
The criterion that is use for the collection of literature review is relevant to the topic of the study. In order to conduct this study, the researchers has used both public and private libraries, as well as, the libraries that were available online were also accessed for collection of information. The databases that were accessed include Ebsco, Emerald, Pheonix, Questia, etc. By accessing theses databases, more libraries were visited having substantial amount of recent information and current data related to the research topic. In addition to this, the data collected is mostly peer-reviewed, thereby increasing the validity.
Data Collection Technique
Online databases and libraries were accessed in order to collect most recent and relevant literature. Furthermore, questionnaire survey was conducted to collected quantitative data. The actual conclusive information are the results of complete and thorough analysis of the information collected online.
Research Strategy for Case Study
Case research has a qualitative nature of study. It enables the researcher to enhance the unexplored and weak regions of the research problems. The analysis of case study can be performed by conducting questionnaires, semi-structured or structured interviews. To conduct this research, the case-study of Topshop has been selected, which is UK's top most retail shop.
Limitations
A number of limitations of our study must be mentioned. These limitations also provide avenues for further research. It was assumed that the data sources that used within the studies were reliable and having valid data (Kumar, 2007, 44). As in any other dissertation or research project, this dissertation will also carry its own limitation or scope. Lack of comprehensive information may be another limitation.
Analytical Technique
The methodology used for the purpose of this research is based on the secondary data. This research is more or less based on the literature review and the results of questionnaire survey. Therefore, the conclusions are drawn on the basis of actual resources listed in the references and the results of questionnaire. The research technique will be descriptive.
Ethical Considerations
Ethical consideration was followed by the researcher, while conducted the research to attain the objectives of research. All the principles of the University's Good Scientific Practice and Data Protection Act were followed by the researcher to assure the confidentiality of the data. Data and information is collected from the authentic sources such as books, articles, journals and company websites. Ethical guidelines, principles and ethical code of conduct were followed by the researcher to achieve the reliable results of the research. The information and data was analyzed safely and ethically to ignore any ethical issues by anyone.
Timetable
In the table below, the timeframe of research has been explained with the help of a Gantt Chart:
TASKS
WEEKS
1
4
6
8
10
12
14
16
18
20
22
Construct research proposal
Submit proposal
Hand out questionnaires
Analysis and redefine problem(s)
Implement findings
Prepare draft report
Begin full data analysis
Write dissertation
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APPENDIX
Dear (Informed Consent),
My name is _________ and I am an __________ student, attending _____University. I am writing a dissertation titled “How can the Armed Forces enhance the personnel reporting system to ensure the right people are in the correct strategic rank/position?” I am an active duty member myself stationed here at ____________. The reason of conducting research is to identify the importance of social media networks and to identify different social media marketing tools. With the increasing influx of technology everywhere, Internet has been gaining importance very rapidly. You were selected randomly and you will be provided with a questionnaire to fill which ill not take more than fifteen minutes. This questionnaire survey is conducted as it will help us in collecting information about your preferences, your views and opinion about what you have in mind regarding the internet banking service. At this time, the researcher will ask you some questions pertaining to your perceptions regarding the internet banking system and how much it satisfies you to perform your transactions through this service. The results will never be linked to a particular person.
Are you willing to participate in this research study? (Circle one) YES NO
