What exactly is Big Data and how is it changing our world?

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Figure 4 Monnappa 2018

Firstly, what is BIG DATA:

Now, let me introduce the general background of big data. Gartner IT Glossary (n.d.) define Big data as “high-volume, high-velocity and high-variety information assets that demand cost-effective, innovative forms of information processing for enhanced insight and decision making”.

Put simply, big data is a large and complex data set that cannot be captured, managed and processed using a traditional database, hardware and software with an endurable timeframe because the size of it is too large (Chen et al., 2014). In today’s digital age, almost every digital action we take leaves a digital footprint. Our data is generated whenever we go online, such as when we carry our smartphones with GPS, when we shop online with our login user name and password, when we communicate with friends and family via social media platforms as well as when we swipe our Medicare card after we visit the doctors or use a Flybuys card to collect points after shopping in Coles.

A “3Vs” model has been used to define big data and this definition had been widely used by big research departments, such as Microsoft and IBM for ten years since 2001 (Laney, 2001). Big data has one of the following characteristics – high-volume, high-velocity or high-variety.

Chen et al. (2014) refer volume to the size and the scale of big data. The amount of data that is being collected and generated by the latest advances of information technology as well as the rapid growth of cloud computing just keeps growing. By 2020 the amount of digital data that we will need to store will have grown from 5 zettabytes today to 50 zettabytes (Marr, 2018).

Velocity refers to the speed with which the data is generated, analysed and reprocessed. (Chen et al., 2014, p.173). Let’s take WordPress as an example. We publish a post on WordPress and it has to handle numerous photos, images, text and video every day. It has to ingest it all, process it, categorise it, file it and label it to be able to retrieve it.

Gandomi & Haider (2015) refer to variety as “the structural heterogeneity in a dataset”. Put simply, it refers to different data types and data sources. There are three types of data, they are structured, semi-structured and unstructured data. Data from spreadsheets and relational databases are called tabular data and it is structured data. Unstructured data examples are text, images, audio and video. Extensible Markup Language (XML) is an example of semi-structured data.

Value has emerged over the past few years. The 4Vs definition model was introduced by NIST and widely recognised since finding value in big data is a discovery process that add assets to businesses (Chen et al. 2014, p.174).

1Figure 5 Chen et al. 2014

In addition, veracity has been added to define big data (Marr, 2015). It refers to “the messiness or trustworthiness of the data”. How truthful is the data that business collected and how much can you rely on it will determine the data’s value.

Big Data is changing our world completely, an overwhelming amount of data provides evolutionary insight and opportunity to all businesses across every industry. Businesses can accurately predict consumers’ shopping patterns of particular products or services, however, it also raises concerns such as data privacy and security. Should we worry about how organisations take advantage of data?

Reference

Chen, M, Mao, S & Liu, Y 2014, ‘Big data: a survey.’ Mobile Networks and Applications, vol. 19, no. 2, pp. 171-209.

Gandomi, A & Haider, H 2015, ‘Beyond the hype: Big data concepts, methods, and analytics’, International Journal of Information Management, vol. 35, no.2, pp. 137-144.

Laney, D 2001, ‘3-d data management: controlling data volume, velocity and variety’, META Group Research Note, 2001, viewed 19 September 2018, https://blogs.gartner.com/doug-laney/files/2012/01/ad949-3D-Data-Management-Controlling-Data-Volume-Velocity-and-Variety.pdf

Marr, B 2018, ‘What is big data? a super simple explanation for everyone’. Bernard Marr & Co. viewed 19 September 2018, https://www.bernardmarr.com/default.asp?contentID=766

Marr, B 2015, ‘Why only one of the 5 Vs of big data really matters’ IBM Big Data & Analytics Hub, web log post, 19 March, viewed 19 September 2018, https://www.ibmbigdatahub.com/blog/why-only-one-5-vs-big-data-really-matters

Monnappa, A 2018, ‘Data Science vs. Big Data vs. Data Analytics’, image, viewed 19 September 2018, https://www.simplilearn.com/data-science-vs-big-data-vs-data-analytics-article

World Economic Forum, 2016, What is big data? video recording, YouTube, viewed 19 September 2018, https://youtu.be/eVSfJhssXUA

 

 

Social Media Marketing Strategy

This week’s blog post is based on a scenario that I have been given. My friend Mike is about to launch an online store for sporting gear. He wanted some recommendations of some social media marketing tactics that are suitable for his product line. He currently has an official website and a Facebook account for his business. I will start with defining what Social Media Marketing is and why business should use it.

What is Social Media Marketing (SMM)?

Roberts & Zahay (2013) define Social Media Marketing (SMM) as an activity in which businesses and organisations interact with their customers through selected social media platforms in order to communicate and collaborate in ways that lead to achievement of marketing and business goals. We live in a society where we have been connected and influenced by social media. The evolving environment of social media is becoming an increasing part of companies’ marketing communication. Businesses use social media as communication to enhance customer relationships, support sales and build their brands.

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Figure 1 Lindlle 2018

Why businesses are using SMM?

There are some significant benefits that social media brings to businesses, such as cost efficiency, broad visibility, narrow visibility, Pulse of the market, increased trust, self-made community and increased revenue (Miletsky 2010, p81-81).

A successful SMM is not only a carefully planned strategy but also integrated into the firm’s business strategy. There are many opinions on this topic, a framework (Robert & Zahay 2013) will be used to analyse this scenario.

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Figure 2 Robert & Zahay 2013

Step 1: Listening to the target audience

Marketers and business owners must listen to their customers to identify the social habits of their defined target market. Knowing the target audience and how to make connection with them is the key to creating content that they will like, share or comment on. In Mike’s case, both women and men are sports fans these days. The key segment element here is lifestyle and interests, not demographics (Robert & Zahay 2013, p. 230).

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Figure 3 Cain 2017

Step 2: Setting SMART goals that aligns with marketing communication strategies

This step wasn’t in the original frame work, however, we have established in a post (week 3 blog entry) that organisations have no way to measure the social media performance without setting a SMART goal, they are Specific, Measurable, Attainable, Relevant and Time-bound (LePage & Newberry 2018) similarly, York (2018) also believes that goal setting is a crucial and fundamental element of business strategy. Take my friend Mike’s case, one of his goals is: increasing brand awareness by 10% before 20th October 2018 on Instagram.

Step 3: Communicating with your audience in social space

Target audiences are likely to interact with a business if it communicates in ways that meet their needs and expectations. Johnson (2018) states that creating high-quality content is always important. I recommend Mike keeps an eye on how many users are tweeting or hashtaging his competitors’ brand name to understand what’s expected by consumers in his industry and use this way to communicate with them. By doing this, he can also discover some opportunities. For example, maybe one of his competitors is dominant on Instagram, but only put a little effort into Facebook or Twitter. In this case he should try to win fans from the platform where his target audiences are not fully served. He will need to change one of his goals if he decides to change his approach and use different social media channels.

Step 4: Engaging your audience

Communication needs to be engaging to be effective.  As a new business in a saturated market, Mike’s business should pick an extra two (he already has a FB account) platforms and do them well instead of trying to take all social space because social media promotion it is hard to succeed with either too many or only one channel (Robert & Zahay 2013, p.234). I suggested Mike use Instagram, Facebook and YouTube to reinforce the content, particularly, using relationships with external partners who can guide the conversation, such as personal recommendations from influencers or celebrities. They will refer directly to a particular product because fitness is a visual industry, we suggested that he distribute his products to some influencers who are suitable for this brand and ask them to post pictures on their Instagram feed using #brandname.

Step 5: Collaborating with the brand

Businesses need to be responsive, put consistent effort and attention with honesty to lead consumers to collaborate with businesses in a dialog. Fitness is a virtual industry, using Videos and Ephemeral content such as creating Instagram and Facebook stories will provide the best engagement rate to collaborate with consumers. Wade (2018) states that 80% of all online consumer internet traffic will be taken over by video by 2020.

Digital marketing tools and the associated technology platforms change regularly, a great social media strategy needs to evaluate and adjust regularly to be able to optimise for any products and business.

 

References

Cain, A 2017, ‘Strategic Planning: Step 1 – Build SMART Goals’, image viewed 19 September 2018, https://naviant.com/blog/strategic-plan-smart-goals/

Johnson, Z 2018, ‘4 Strategies For Explosive Social Media Growth In 2018’, Forbes, viewed 18 September 2018, https://www.forbes.com/sites/theyec/2018/05/11/4-strategies-for-explosive-social-media-growth-in-2018/#791a1e5e34f4b

Lepage, E & Newberry, C 2018, ‘How to create a social media strategy’, Hootsuite blog, web log post, 15 May, viewed 19 September 2018, https://blog.hootsuite.com/how-to-create-a-social-media-marketing-plan/

Lindle, L 2018, ‘Free webinar: Building Local Communities with Social Media’ image, viewed 19 September 2018, https://www.districtdispatch.org/2018/02/free-webinar-building-local-communities-social-media/

Miletsky, J 2010, Principles of Internet marketing: new tools and methods for web, Cengage Learning, Boston.

Robert, M & Zahay, D 2013, Internet Marketing: integrating online and offline strategy, 3th end, Cengage Learning, Mason

Wade, J 2018, ‘ Social Media Marketing Trends 2018, Smart Insights’, viewed 18 September 2018,https://www.smartinsights.com/social-media-marketing/social-media-marketing-trends-2018/

York, A 2018, ‘7 Steps in Creating a Winning Social Media Marketing Strategy in 2018’ Sprout Social Blog, web log post, 19 February, viewed 19 September 2018, https://sproutsocial.com/insights/social-media-marketing-strategy/

MasterChef Australia and E-CRM activities

This blog is about analysing E-CRM activities of MasterChef Australian.

What is e-CRM?

Electronic customer relationship management (e-CRM) is an information system to help organisations to enhance customer service through innovative technology such as emails, websites, forums and social media channels. It is used to recognise, attract and maintain an organisations’ customers (Chaffey & ellis-Chadwick 2016, p.302). It helps organisations keep connected with their customer by recognising, attracting and maintaining customers’ interactive communication. It is an important concept to help organisations to maintain competitiveness in the marketplace through increasing effectiveness of e-CRM (Navimipour & Soltani, 2016)

MasterChef Australia and e-CRM

MasterChef Australia is a competitive reality cooking show based on the British MasterChef. It screens on Network Ten over the past ten years. There are three main judges: Gary Mehigan, George Calombaris and Matt Preston. There are some talented guest judges that will join the three of these main judges with their ideas and dishes to set tasks for contestants. (About MasterChef Australia, 2018)

MasterChef was on 7:30pm from Sunday to Thursday on Network Ten for about 4 months. During the show time, audiences are emotionally involved to watch a timed cooking show as well as enjoy looking at delicious and well-made dishes.

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The audiences can catch up any missing episodes on their website a day after and they can get easy access to all recipes created by contestants and judges any time to create their own MasterChef dishes. Additionally, there are some tips from the MasterChef team to support audience members who want to recreate a MasterChef dish. The audience have freedom to access all recipes from the last ten seasons as well as applying to get on the show for next season.

Like any reality show, contestant’s personality has a great impact on the show which in turn we always have a favourite contestant or judges on each episode or season, and for this reason, there is a section that provides more information to each contestant which this connection carries on with MasterChef social media platforms include Facebook, Instagram and tweets.

Long term e-CRM

MasterChef final was on in August; however, to keep connecting with the audience, the MasterChef team manage to update news about contestants and recipe regularly through the whole year. There are great seasonal recipes, and some follow up stories about former contestants. Audiences love to know things happening for contestants after the show. Along with this, contestants and celebrity chefs also share their thoughts and ideas from their own social media platform. Contestants still wear MasterChef apron on their Facebook page profile to keep their connection with the audience. There are some contestants that have such an impact on the food industry that audiences will want to follow up. To keep them connected with MasterChef is another way that MasterChef is connecting and interacting with their audience.

Sponsors and cross selling

There are a number of sponsors who promote products during the show including Holden, who launched a new campaign during the show, not only provide vehicles for contestants during the competition but also audiences were invited to “watch and win”. This allowed both Holden and MasterChef to connect with audiences via a committed CRM program.

 

Reference

About MasterChef Australia, Network Ten Pty Limited 2018, viewed 14 September 2018, https://tenplay.com.au/channel-ten/masterchef/about

Diksha, S n.d., E-CRM: Meaning, Evolution and Benefits, business management ideas, viewed 14 September 2018, http://www.businessmanagementideas.com/crm/e-crm/e-crm-meaning-evolution-and-benefits/3688

Facebook 2018, MasterChef Australia 2018 viewed 14 September 2018, https://www.facebook.com/MasterChefAU/

Instagram 2018, MasterChef Australia 2018 viewed 14 September 2018,https://www.instagram.com/masterchefau/

Navimipour, N & Soltani, Z 2016, ‘The impact of cost, technology acceptance and employees’ satisfaction on the effectiveness of the electronic customer relationship management systems’, Computers in Human Behavior, vol.55, pp. 1052-1066.

 

Marketing Mix 4ps? 7ps? 8ps?

This week’s blog is about discussing implications of the internet on each element of the marketing mix.

Jerome McCarthy (1960) proposed the four key variables (4Ps) that are associated with marketing activities. They are Product, Price, Place and Promotion. Booms and Bitner (1981) extended the marketing mix to 7Ps to update and to reflect the needs of modern business environments. The further three components are People, Process and Physical evidence. Digital distribution and technology provide many opportunities for the marketers. Due to the complex technology-driven environments, marketing activities shift to customer-centric to focus on customer perspective to emphasise the marketing mix towards the relationship-building process with consumers. Chaffey and Smith (2012) further extend this, adding the eighth P, Partnership, to the digital marketing mix. This report will only focus on the fundamental 4ps.8PS

Product

Chaffey & Ellis-Chadwick (2016) state that Internet-related product marketing strategy is divided into two categories, these are core product and extended product. The core product refers to the fundamental qualities that meet consumers’ needs whereas the extended product refers to extra services or features that add value to the core product.

There are some main implications of the Internet on the Product element of the marketing mix, including options for varying the core product. For example, e-commerce sellers offering additional information or transaction services to the consumers (Chaffey & Ellis-Chadwick 2016, p. 256), such as, sending the shipping number so consumers so they can track their product. Companies should consider offering transforming products into digital services using the Internet. For example, Amazon now sells a variety of book formats including: Kindle, Audible audiobook, hardcover and audio CD to meet consumer’s needs (Amazon 2018). Sales of Audio books have doubled in the last five years because most consumers found that listening to audio books saved dedicated reading time, you can do other activities while listening to a book, such as, cooking, driving and running (Clark, 2018).

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Example like Adobe Creative Cloud, they provide options for changing the extended product, instead of selling the physical software for a couple of hundred dollars to a consumer who needs to install it on their computer. They changed this business model to selling subscriptions to charge subscribers a monthly fee to use the Adobe suite with additional online storage space. Another example is using a mass customisation approach to meet individual’s needs where companies offer a customised version of their products to consumers. Apple Store sells their laptops with basic specifications however, it’s very easy to add additional memory or space to make the laptop suitable for specific personal use with additional payment.

Price

Chaffey & Ellis-Chadwick (2016) state that Internet has dramatic implications for pricing strategies. Price has become more transparent in the e-commerce environment. Comparison shopping helps consumers find the best deals online. Internet price comparison services are becoming increasingly simple for customers to access such as Google shopping, BizRate and NexTag. Figure 3 demonstrates how NexTag gathers product information that includes suppliers and prices to display collective information to a shopper’s search query (Nextag, 2018). Consumers are able to compare products and services from multiple retailers. Marketers need to use price comparison services sites to see what type of prices are attracting their target market as well as to learn about competitor’s pricing strategies.

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Chaffey & Ellis-Chadwick (2016) state that companies bundle multiple products or components together at a discounted price to encourage consumers to purchase additional products that they may not necessarily need or want. This approach has become a popular marketing strategy that e-commence sellers use to sell more products which, in turn helps them to make more profit. Figure 4 displays that it cost consumers more to buy individual products instead of buying a packaged product in IKEA.

Place

Chaffey & Ellis-Chadwick (2016) define that the place element of the marketing mix refers to the process and activities of moving the product from the producer to consumer in an offline context. With an e-commerce platform, place and promotion are very different to traditional marketing. Today’s market is much more global than it was a few years ago. Products are distributed worldwide through the internet. The main implication of the Internet for the place are place of purchase, new channel structures, channel conflicts and virtual organisations (Chaffey & Ellis-Chadwick, p.277). For example, syndicating your product or services to authoritative sites such as Etsy helps your business to gain huge exposure with large and loyal audiences as well as increasing website traffic. As a result, your business becomes more accessible and visible digitally.

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Promotion

Historically, products have been promoted primarily using TV and printed materials to increase brand awareness and encourage consumers to purchase. In contrary, marketing promotions in e-commence are using email marketing, search marketing, web sponsorship, content marketing, social media and electronic word of mouth. For example: DanielWellington (DW) encourages consumers to post a picture on their feed with its product on their Instagram using #DanielWellington to win a chance to get featured on DW’s official site. Individuals are highly creative communicators, by doing this DW created a huge buzz around the brand.

It is important to consider using the marketing mix as a tool to creating the right marketing strategy that is right for your organisation to distinguish your product from competitors’ product in the marketing place. All the elements of the marketing mix have an interaction with each other.

 

Reference

Amazon 2018, Every Day is Extra, Amazon Kindle ebook, Sydeny, viewed 12 September 2018, https://amzn.to/2x6dnGq

Booms, B & Bitner, M 1981, ‘Marketing strategies and organisation structures for service firms’, in J. Donnelly and W. George (eds), Marketing of Services, American Marketing Association, New York.

Chaffey, D & Ellis-Chadwick, F 2016, Digital Marketing, Pearson.

Clark, A 2018, Easy listening: the rise of the audiobook, The guardian, Sydeny, viewed 12 September, 2018, https://www.theguardian.com/books/2018/jul/09/easy-listening-rise-of-audiobooks-alex-clark

Etsy, Inc 2018, viewed 12 September 2018, https://www.etsy.com/au/

Mottola, I 2016, ‘Daniel Wellington perfect Instagram marketing strategy’, Medium Blog, web log post, 12 September 2018, https://medium.com/@ignaziomottola/daniel-wellington-perfect-instagram-marketing-strategy-ce637c19c68c

Nextag 2018, Nextag, California, viewed 12 September 2018, https://www.nextag.com/

Singh, A, Agrariya, K & Deepali, I 2011, ‘What really defines relationship marketing?

A review of definitions and general and sector specific defining constructs’, Journal of Relationship Marketing, vol. 10, no. 4, pp. 203-237.

Setting long-term strategic objectives for a website is unrealistic??

 

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My answer is NO, here are some reasons:

Setting long-term strategic objectives for a website is realistic, it could certainly be getting great opportunities for better targeting or optimization even though the rate of change in the marketplace is so rapid. This report will discuss the importance for businesses of setting strategic objectives to measure their marketing activities to achieve a measurable return on investment (ROI).

Frantisek & Simberova (2015) state that a strategic plan is an important part of effective measurement in the marketing performance system. It is essential to focus on appropriate aspects and indicators to monitor the performance of the corporate strategic process. Setting strategic objectives is an important part of complex corporate strategy. It is necessary that companies measure performance to discover the accurate strategy. It is important to set appropriate objectives and goals to measure the marketing effectiveness and keep them up to date.

Piskurich (2015) states that strategic objectives should be specific, measurable, attainable, relevant and time-bound (SMART) as well as aligning with the company’s mission and vision to be able to monitor progress toward process and outcomes. These objectives will help business owners accomplish the purpose of the company and attain a specific market position within a defined period of time.

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Chaffey (2016) states that the planning process helps business owners to understand the different factors that may affect the business. By putting together a strategic plan this can provide the insight that serves as a framework for managers to make decisions. Having a clear understanding of the business’ strengths, weakness, opportunities and threats will help business owners to figure out where the business currently stands in the market and how to reach their target market.

Digital platforms have eased the way consumers access products and services related information and an online strategy is an optimal channel to attract consumers. Digital marketing has turned into the ultimate tool to proactively surpass the competition. Chaffey (2018) states that the end objectives of digital marketing are no different from the objectives that traditional marketing have, traditional marketing emphasises the focus of marketing activities to achieve profitability whereas digital marketing focuses on interacting with consumers as well as utilising digital technology to achieve marketing objectives (Chaffey 2018). Even though digital marketing uses different communication channels and techniques. Setting strategic objective is a definitive guide on how to position brands, products and services to help consumers to understand why your product or service is better than, or different from competitors in the same industry.

Businesses can use digital media effectively to engage with their target audiences and get great results of using social media or email marketing without setting strategic objectives, however, without strategic objectives there can be no long-term success. Business cannot measure and evaluate company’s performance, for example, almost every company has a website with analytics, and businesses who don’t review and act on them will miss opportunities to reach potential customers.

Bjerk and Renger (2017) argue that setting long-term objectives can be misleading without justification and further explanation of facts in how and when they should apply in a certain situation. However, by implementing a planning process, this still provides a mechanical approach to evaluation of a company’s marketing activities in today’s online shopping environment.

Businesses don’t have a clear goal for what they want to achieve which in turn means there is no specific measurement that can be used to evaluate companies. To be able to succeed with digital marketing, there is a necessity for incorporation of traditional marketing strategies as part of the marketing approach.

Innovation Strategy at Microsoft

Microsoft is the world’s leading technology company. It is dominated the computer industry for years. A wide range of software products, services and devices are offered to their customers who vary from individuals, organisations (enterprise agreement volume-licensing contracts), OEMs (original equipment manufacturers) and application developers. The main services include: Office (28%), Servers (22%), Xbox(11%), Windows(9%), ads(7%), Surface (5%) and other (18%) (Desjardins, 2017). Microsoft has achieved a number of innovations into practice and this report will provide a preview.

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Microsoft pursue a vision, strategy and goals for innovation, CEO Satya Nadella stated the Microsoft’s strategy is “Cloud Frist, Mobile First” (Microsoft, 2014). Historically, Microsoft has relied on a revenue model from charging licensing fees for the use of the Windows operating system and the Microsoft Office suite. In order to increase market share as well as gain a competitive advantage from their competitors, Microsoft shifted their traditional business model to interact directly with their consumers to meet their expectations (Skillicorn, 2014). The company has just gone from a business model based primarily on selling products, licenses and devices to one selling ongoing service and subscriptions that integrate with its cloud-based solutions (Osterwalder, 2017).

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Since 27 March 2014, Microsoft has been shifting focus to make Windows software more compatible with competitor products, such as iPad. This innovation strategy demonstrates that Microsoft is willing to enable their consumers to access their product in the way they prefer instead of buying their own platform, the Surface tablet (Ross, 2018). As a result, Microsoft is one of the most popular Apps in the Apple store with more than 12 million downloads. The way that Microsoft generates their revenue is changing from charging hundreds of dollars up-front to own the software that lasts for a fix period to charging users a monthly fee for Office 365 subscription, which in turn, iPad owners who use Office will pay subscriptions for Microsoft.

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Sales of Windows PCs are decreasing over the last couple of years because portable devices including tablets and smart phones are becoming more popular. Microsoft gives free access to all versions of Windows including PC, tablet and phone with screens of less than 9 inches (Foley 2015). The concept behind this idea is that the total number of users will be much larger than the number of users who paid the subscription. This new model is all about freemium, as soon as consumers get entry-level free access, Microsoft can shift its acquisition to engagement which in turn, will result in many consumers subscribing to additional services on their platform, including OneDrive (cloud storage), Office 365 and Xbox Live.

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In this case, Microsoft will generate their revenue by encouraging consumers to pay for a subscription for certain features to meet their needs as well as unlocking the premium values on the small devices. Take myself as an example. I currently use Office 365 ProPlus on my PC and MacBook Pro because Office Education offered students who study in university that license Office Education free use of Office 365 ProPlus. I am satisfied with the products and I am willing to purchase a subscription when I graduate from university.

The online customer experience

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Rose et al. (2011) demonstrated a framework for understanding the concepts that stimulate and influence the online consumer’s purchase behaviours. There are a number of concepts that are highlighted in this framework: information process, perceived ease of use, perceived usefulness, perceived benefit, perceived control, skills, trust, risks and enjoyment. This report will discuss each of the elements based on my experience while shopping on Fjallraven website.

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Information processing (IP)

Grant et al. (2007) refer to IP as the psychological process and senses that a consumer uses to evaluate and process the available data and information that will motivate and influence consumers buying behaviours.

Perceived ease of use (PEOU) and perceived usefulness (PU)

PEOU and PU are two factors widely discussed in the consumer behaviour literatures. Technology Acceptance Model (TAM) (Davis, 1989) is one of the foremost theories to explain factors that influence consumers adoption of online shopping. The perception of how easy or difficult a site is to use is extensively linked to a positive or negative online experience. Similarly, Parasuranman and Zinkhan (2002) demonstrate that consumers use perceptions of website features to evaluate their online experiences.

Perceived benefits (BN) and enjoyment (EN)

Consumers find out their online shopping behaviour is associated with positive outcome. I chose to buy a backpack online because shopping online is more convenient for me, more options and it saves time. I enjoy this freedom and efficiency.

Perceived control (PC) & Skill (SK)

Rose et al (2010) state that SK refers to the Internet skills related to online shopping. It states a consumer can gather information together, evaluate products, make a purchase and complete the transaction successfully. Consumers are getting more knowledgeable when purchasing online more frequently. PC refers to consumers feeling confident in which they can function successful in the digital environment. I purchase online regularly, and I become more confident in doing this.

Trust and risk

Perceived risk is the perception of the uncertainty and contrary consequences of a consumer while purchasing. Consumers are more sensitive while shopping online because it is hard for them to evaluate products before they purchase, as well as consumers have to expose their private information to be able to finalise the purchase online. Trust plays an important role in reducing consumer’s perceived risk. Positive memories likely build positive relationships between buyers and sellers, in turn, creating more powerful and proactive customers.

Individuals use their own internal senses to process information from the view of a website. In my case, I wanted to buy a backpack for a 15’ MacBook. I went directly to the Fjallraven website. My first impressions were that the website is well designed with an uncluttered layout, clear organisation, easy navigation and search facility. There is a menu bar with five categories, next to it is a search function.

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I went into the backpack category and I can see the bag I want to buy is already displayed on this page.

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However, there is a filter function with some sub-categories displayed on the left-hand side (not on the Australian site, there are so many fewer products on the Australian website), you can hide it if you just want to view all products or you can easily type in and find specific products.

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Some additional resources display on the bottom of this website, this includes FAQ, shipping & returns, buyer guide, care & repair, warranty.

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I loved the website because I found accurate information I needed within a few minutes.  I clicked the checkout button after I added my backpack into my shopping basket. I also appreciated that I don’t have to register with this brand to become a customer. I just filled in my email address (for receipt) and my shipping address with a phone number. There are a big range of payment methods I can choose from. I finalised my payment and then I got a follow up email which includes all details and an estimated delivery date. I enjoyed this process very much.

 

Reference

Chaffey, D & Ellis-Chadwick, F 2016, Digital Marketing, Pearson.

Davis, F 1989, ‘Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology’, MIS Quarterly, vol. 13, no. 3, pp. 319-340.

Fjallraven 2018, viewed 28th August 2018, https://www.fjallraven.com/.

Fjallraven 2018, Fjallraven Australia, viewed 28th August 2018, https://www.fjallraven.com.au/.

Grant, R, Clarke, R & Kyriazis, E 2007, ‘A review of factors affecting online consumer search behaviour from an information value perspective. Journal of Marketing Management, vol. 23, no. 5, pp. 519-533.

Parasuraman, A & Zinkhan, G 2002, ‘Marketing to and serving customers through the Internet: an overview and research agenda. Journal of the Academy of Marketing Science, vol. 30, no. 4, pp. 286–295.

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, vol. 13, no. 1, pp.24-39.

 

6 I’s of e-Marketing Mix

Chaffey & Ellis-Chadwick (2016) stated that the 6 I’s of e-marketing mix is the most important factor that make digital marketing different to traditional marketing. The 6 I’s included: interactivity, intelligence, individualisation, integration, independence of location and industry restructuring. In this case only 5 I’s will be discussed. Behance website has been selected for this analysis.

The first I is individualisation, it refers to how to present the content of the website to suit an individual’s needs. This can be used to target and personalise communications to customers to achieve relevance in all media. (Chaffey & Ellis-Chadwick 2016; Versaw 2011)1

The second I is Independence of location, it refers to consumers are having the ability to access the website at any location or via any device. (Chaffey & Ellis-Chadwick 2016; Versaw 2011). The image below top is Behance app on a smart phone, the layout is slightly changed to suit the screen size. The image below bottom is Behance website.

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The third I is Interactivity, it allows visitors to engage with the website on a higher level. A visitor has more options to find out more or move to other projects. (Chaffey & Ellis-Chadwick 2016)

I logged in to one of the projects that was recommended for me from this site, I have an option to like it, leave a comment, or appreciate the project to support the artist. I can also easily access this artist’s social media site to interact with him.

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The fourth I is Intelligence, it refers to the data gained through the market research and how the company can use this information. This website collects information of my activities and visiting behaviour from my previous sits, they filter those topics and projects I liked before and they present them on my home page to give me easy access. (Chaffey & Ellis-Chadwick 2016; Versaw 2011)

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The fifth I is Integration, it refers to the merging of different media channels to provide a better marketing approach. The examples are: Behance Instagram, Behance YouTube channel and Behance facebook page. (Chaffey & Ellis-Chadwick 2016; Versaw 2011)

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5.1

Dell’s Business and Revenue Model

Dell

The exceptional performance of Dell Computer in recent years demonstrates their direct sales and build-to-order model gave Dell a substantial competitive advantage. Customising their computer to their customers’ specifications and selling their items directly to their consumers has been successful in minimizing inventory to increase their market share and achieve higher returns on investment.

Timmers (1999) acknowledged that there are 11 types of business model that can generate revenue from the web. Dell fits into a category called e-shop because they do their marketing digitally through their website. Kraemer et al. (2000) stated that most PCs in the computer industry are sold in retail stores preconfigured and pre-assembled. Dell offered its consumers a variety of customisation options in system configuration at a discounted price.

Cutting out the middleman is a cost-efficient way to sell their computers directly to the customers through their website. Dell’s direct sales model includes Dell to end user (B2C) and Dell to corporate customers (B2B). Dell also reorganised its assembly process to increase their employer’s productivity by bringing all employers together with different components of building a customised computer rather than each of them working on and repeatedly performing a single task. By doing this, Dell gained a competitive advantage by providing their consumer with a differentiated product.

Dell’s strategies of direct sales and build-to-order production have proven successful in minimizing inventory and bringing new products to the market quickly as well as enabling it to increase its market share and achieve higher returns on investment.

Dell’s direct sales model has given it a big cost advantage, however, Dell has to take more responsibility and bear the cost on the support side. When the support experience cost increases the discount price won’t win customers.

Dell’s revenue model has mainly been based upon the income from sales of their products and services without a middleman as well as the comprehensive data system they build by doing direct sales to customers. Dell built an IdeaStorm crowdsourcing community where customer’s needs and expectations are voluntarily offered (Bayus, 2013, p.227). In addition, easy access for email marketing enhances customer value and understanding of their key customer segmentation.

Reference: 

Bayus, B 2013, ‘Crowdsourcing New Product Ideas over Time: An Analysis of the Dell IdeaStorm Community’, Management science, vol. 59, no.1, pp. 226-244.

Chaffey, D & Ellis-Chadwick, F 2016, Digital Marketing, Pearson

Kraemer, K, Dedrick, J & Yamashiro, S 2000, ‘Refining and extending the business model with information technology: Dell computer corporation’, The Information society, vol. 1, no. 1, pp. 5-21.

Timmers, P 1999, Electronic Commerce Strategies and Models for Business-to-Business Trading Wiley, Chichester.