Exam (elaborations)
Exam (elaborations) Unit 17 - Digital Marketing
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Exam of 5 pages for the course Unit 17 - Digital Marketing at PEARSON (Unit 17)
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BTEC BUSINESS UNIT 17 Jack CollinsP5 Benefits and concerns of online advertising
D2 Evaluate the effectiveness of digital marketing
campaigns from different businesses, and suggest ways to
overcome concerns raised about digital marketing.
• Benefits
1. Cost – From a marketer’s point of view, the benefits of online advertising for Air B ‘n’ b is
that the cost required would be compensated by the fact that a great amount of viewers and
customers would be reached, instead of marketing costs being spent on the individual
persuasion of customers. In addition, online advertising is usually much cheaper than other
forms of advertising such as television marketing, or billboard marketing. On the other hand,
from a customer’s point of view, consumers spend significantly more time on the internet
and browsing online, than on any other media device – so advertisements directed through
an online outlet would be extremely effective.
2. Measurability – From a marketer’s perspective, it is very easy to monitor and track the
amount of views that consumers are producing, whilst observing videos, advertisements,
photos, or online posts. As a result changes can easily be implemented to generate higher
yielding results – for example, if an advertisement is generating 20 thousand views, but you
are not satisfied with this, you can change it and check the amount of views you receive
thereafter. At the opposite end of the spectrum, customers also enjoy checking how many
views videos for example have received, as this is a great indication to them whether it will
be enjoyable and interesting; it isn’t possible for consumers to view every single video, so it
is beneficial for them in separating uninteresting content from the most popular material.
This is beneficial for Air BNB because if the company post a popular video/advertisement of
a popular touristy area with popular accommodations at reasonable prices. Through this the
videos that air BNB can offer can generate high views if they offer interesting content
making it enjoyable for viewers to watching, creating word of mouth. Helping Air BNB to
attract many customers through their video advertisements.
3. Formatting – Formatting is when a website uses specific content to its readers through
attractive formatting e.g. being able to access the website though the laptop and mobile
phone. The advantages of using this from a customer’s perspective, is that the users
experience is improved, this is because a responsive website leads to quality time for the
user to spend on certain types of websites. This is important to the marketer because if they
don’t have a website that was formatted properly then this will lead to the users to leave the
website quite quickly as it doesn’t satisfy the customer’s needs. For example, if consumers
are content with the format of the website it’ll lead to word of mouth referrals and new
customers for the business. This is very beneficial towards Air BNB because if the company
has a website that was formatted properly, with attractive features then it’ll lead to improve
customer experience. This will give the knock-on effect of having satisfied customers on Air
, BTEC BUSINESS UNIT 17 Jack Collins
BNB as they will be spending quality time on their website. Meaning customers will spend
more time browsing through different types of accommodations, helping the company to
increase their revenue.
4. Targeting – Targeting in digital marketing is a formalized method that identifies and
create specific content to specific target group, using various platforms towards a specific
demographic and geographic audience in order to meet their concerns/needs. The benefits
of targeting from a marketers perspective is that specific businesses such as Air BNB will be
able to build customer loyalty and customer retention. This is because if businesses use the
marketing strategy of targeting correctly it’ll lead to customer loyalty through making special
offers to loyal customers, allowing the business to be able to retain customers, making them
being repeat customers. This is important for businesses to consider as existing customers
are proven to be more valuable then newer customers. For example, statistics 80% of future
profits come from just 20% of existing customers and repeat customers spend 33 % more
than existing customers as they are comfortable with the brand they are with. Showing if Air
BNB can keep a high percentage of customer retention, then the probability of the business
maximizing their profits will increase. This is beneficial towards the company because if the
company targets the correct segment of their market, then the company will have on going
revenue streams continuously.
5. Coverage – Coverage in digital marketing is the expected figures of customers/prospects
of a product/brand that will be reached for a product/brand that will be reached from a
certain form of advertisement. These figures will be decided by the different choices of
media, print media and online advertisement. The benefit of this from a marketers/ Air BNB
perspective, is that the marketer will be able to know which form of online advertisement is
the most effective form of online advertisement to use- whether it’s social media, display
advertising, search engine marketing etc. For example, if the expected figures for social
media marketing are 2,000 views and the expected figures for display advertising is 1,500 for
a certain product, and then the marketer will know that social media marketing is more
effective. Meaning that the marketer will use that form of advertising. This is beneficial for
Air BNB because the company will be able to know which form of digital advertising will be
effective. Meaning the company will use this form of advertisement to achieve their goal,
which is to maximize their profits.
6. Speed – Speed in digital marketing is being able to reach consumers with new products,
services or offers before the competition against certain businesses. This is beneficial from a
marketer’s perspective as it will give other businesses the opportunity to dominate certain
markets. This is simply because they got there first, meaning other businesses will be
followers instead of industry leaders. For example, Air BNB sends out their summertime
promotions during the winter season before other companies that offers accomondationsto
different consumers so that way the company will have guaranteed sales during the summer
time and it gives consumers a few months to pay instalments, allowing for their holiday to
be feasible. This is beneficial towards Air BNB for doing this as the company will be able to
reach their goal, which is to maximize their profits.
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