Unit 17 – Digital
Marketing –
What is Digital
Marketing and
how is it used?
By William
Axelby
,P1 – Explain the role of Digital Marketing as an extension of traditional
marketing and the ways messages can be delivered.
The main role of digital marketing is to generate more sales through online marketing
by reaching more potential customers with wider advertisement from the brand.
Traditional marketing is mainly advertising through billboards, posters, radio,
newspapers etc however this type of marketing is only reaching people who are
paying for this type of products such as newspapers. During the current climate,
things such as newspapers have seen a huge decline in purchases with print sales
for the UKs biggest newspaper falling by 39% in April of 2020 ( UK national newspaper
print sales plunge amid coronavirus lockdown | National newspapers | The Guardian [Online] by
Mark Sweeny 21/05/20) This could therefore have a very detrimental effect on
businesses who are choosing to advertise this way as it is reaching even less people
than it has before and therefore would not be generating new customers for the
business. Further to this, many of these advertisements are featured within another
form of a product or service that the buyer may be purchasing the item for and
therefore it is hard to analyse the effectiveness of the advertisement as there is no
data to provide the business with how many people have seen the advertisement as
people may just pass by the advertisement without even realising as they have
purchased the product that it is featured in for another reason.
The role of digital marketing is to focus on increasing the awareness of businesses
through the extension of traditional marketing methods. One of the main ways in
which digital marketing can expand on traditional marketing methods is by making
purchases accessible for consumers through their digital marketing campaigns. By
having this available for customers it allows the business to see how many
purchases have been made through the digital marketing methods and makes it
easier for businesses to analyse how effective there digital marketing methods are
and can allow for businesses to see which types of campaigns work for the business
and which ones do not.
One of the main successful features that both traditional and digital marketing
methods focus on are using the 7 ps within their marketing methods to create an
effective marketing strategy and be more efficient within their marketing. One of the
main focuses for traditional marketing is the pricing. Many businesses that use
traditional marketing for prices use things such as cost-plus pricing the most basic
form of pricing strategy which is where a business will add the profit margin cost to
the cost of the production of the product or service to allow for the business to make
a profit, or price skimming where the business will begin by pricing their product or
service at a higher price as there is a large demand for the product with little
competition and when competition begins to enter the market and demand for the
product lowers they will begin to lower their prices below their competition slightly to
give them a competitive edge. Although these pricing strategies are successful, there
is a point within the market especially with price skimming where a business is
unable to reduce the price and therefore are making the lowest profit possible while
still having different competition entre the market who may be able to charge less for
, products. Digital marketing means that businesses can send out online vouchers that
may be specific to customers shopping trends by giving them a code to entre at the
checkout which may lead to repeat purchases as the customer feels included and
valued by the business. Businesses who use pricing strategies with digital marketing
can do things that are targeted at one specific customer as they have the data of
previous purchases and how the customers view the website on a database and are
therefore able to make more specific discounts to gain the attention of customers.
They are also able to give on online discounts and promotion codes to specific
demographics such as students through sites such as Unidays or student beans
which leads to gaining the attention from new customers which can lead to new
customer purchases from the website or in some cases in store. One of the
businesses which I have chosen to research is Spotify who use this strategy well by
offering discounts to students through signing up with your student email address to
verify this as well as offering family discounts which allows multiple users on an
account for a lower price than purchasing accounts separate this attracts large
demographics as the family Spotify discount can be used by 6 different people who
are at the same address this allows for six new customers under one subscription.
Digital marketing is also more able to support showing new customers the best deals
for them as they can use comparisons of prices and the services that you get which
can attract more customers as it can be easier for new customers to choose the right
plan easily and customers know they are getting the best deal for what they are
going to use the product or service for.
Digital marketing also allows for customers to see reviews from customers online
who do things such as unboxing reviews on social media or streaming platforms
which allows for the customer to see honest reviews from customers on specific
items in which they can see many different reviews in one place which can help new
customers when deciding whether the product or service offered to them is suitable.
One example of this was when Greggs brought out the vegan sausage rolls many
people had preconceptions of the product which they thought would not taste
anything like a real sausage roll and would have been a bad product by Greggs.
However, many people decided to do online videos reviewing the product where the
tried the vegan sausage roll for the first time and recorded their reaction and
reviewed the product this was done over many different social media platforms in
which it got an incredibly positive response from many people with large social
media followings. This allowed for an increase in the amount of people who were
willing to buy the product and it has become of Greggs more recognised products in
which Greggs decided to keep the item rather than just keeping it for a limited time
which was their initial idea for the product.
A further focus from the 7 ps for traditional marketing is the place of the product.
This can affect how the product is distributed within the store as people would have
to go into the store to see products on offer from a business and therefore where a
product is placed is a key part to how successful the product will be. Many
businesses that have stores will use different types of shop floor layouts such as grid
store layouts or forced path layouts etc in which they will place specific products in
areas and around other products for it to be visually pleasing for the customer and
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