Blog 4a – Week 5

Discuss the extent to which the nine key strategy decisions are important to a new online retail business.

The management of business planning processes is important for organisations operating in a competitive business environment. 

Business decision making occurs throughout the lifecycle of a business, from the planning and development stages through to the implementation and evaluation stages of strategy.

  1. Market and product development strategies

Product development and launch is faster in the digital economy, accelerated by technology.

For new businesses, there are many considerations in determining market and product development strategies.

Feedback gathered throughout the organisation can inform and evolve development over time and product strategies should be informed by market research and testing.

Mass customisation is a way of creating personalisation for many customers and extending products with additional features to consumers creates a diversified offering for bundling (Chaffey, 2019).

Pricing, how much can consumers pay for the product, their ability to pay and estimation of the value of the brand to the competition and congruence are all factors that affect market strategies. 

The degree of competition and price as a barrier to entry, demand versus supply and market pervasiveness, all determine price (Percy and Elliot. 2016). Resource evaluation also informs decision making.

  1. Business and revenue models strategies

A new business should innovate and use a reshaped business model that will allow them to defend market share from competitors.

The business model should support research and development for strategic agility. Common models include commission, transactional e-commerce models, retail and media (Chaffey, 2019).

  1. Target markets strategy

The two key issues relate to target markets strategy, segmentation and differentiation strategy, focusing on the customers the business can serve best.

A new business should understand the competitor market share, unmet needs, competitor offers, current market size and future value, cost effectiveness and likelihood of increased engagement to create brand loyal customers and convert non-users (Chaffey, 2019). 

Data driven approaches are appropriate for benchmarking, to inform further decision making.

(Smart Insights, 2020). 

  1. Positioning and differentiation strategy

Positioning, identifying and defining the market in which the business competes, informs the overall marketing strategy and determines choice of target market segments and competitive advantage. 

Positioning the brand in marketing communication links the brand to the category need. 

This is really important and informs the overall marketing plan, which is revised based on changing market conditions and goal attainment.

  1. Customer engagement and social media strategy

Lifetime brand engagement goals, measured through lifetime value, loyalty and customer interactions require both online channels to support offline brand activities. Technology is a variable in the long-term.

A fully activated social media strategy can help to acquire new customers, enhance and inform feedback loops for anytime, anywhere customer service and integrated channel distribution.

  1. Multichannel distribution strategy

Social commerce models emphasise the use of different channels to communicate user and brand information.

Managers should consider the choice of distribution channel, for example, the internet and potential channel conflicts online and offline. 

This is a geographic consideration based on physical distribution channels that are already in existence. 

New businesses should focus on developing distribution channel infrastructure.

Quality models for e-businesses focus on:

  • efficiency 
  • fulfilment
  • reliability
  • privacy
  • responsiveness
  • compensation
  • contact.

Based on E-SERVQUAL (Chaffey, 2019).

  1. Multichannel communications strategy

New businesses should focus on integration and digital brand development to create a digital identity that is consistent across traditional and online mediums. 

A multichannel strategy means that brands are accessible to different audiences through different platforms when they want them (on demand brands).

The personalization of inbound and outbound customer service communication can improve service delivery by stepping through customer’s contact with the organisation for sales related enquires, for information or purchasing.

Influences on channel choice include:

  • Knowledge
  • Experience
  • Preference
  • Actions

Types of channels include:

  • Physical
  • Virtual 
  • Mobile

Accessibility, the cost of switching and convenience are also factors.

  1. Online communications mix and budget

The positioning strategy informs the marketing mix and this involves the control of variables and tactics to achieve the overall objectives.

There are questions for managers around the promotion element of marketing plans, whether to invest in site promotion, offline promotion and online promotion techniques. 

Using new approaches, creating a user experience based on the buying process, and using CRM for customer acquisition and retention are all issues that should be considered.

  1. Organisational capabilities (7S framework)

Organisations need proper governance in order to facilitate digital transformation agendas. 

The McKinsey 7S framework can be used to implement a proposed strategy and to align business functions with the existing business strategy and structure.

McKinsey 7S Model. (McKinsey, 2020).


Adjei, M., Noble, S., & Noble, C. (2009). The influence of C2C communications in online brand communities on customer purchase behavior. Journal of the Academy of Marketing Science, 38(5), 634–653. 

Amarjeev Kaul. (2019). Culture vs strategy: which to precede, which to align? Journal of Strategy and Management, 12(1), 116–136.

Barker. et al. (2017) Social Media Marketing: A Strategic Approach, 2nd Edition.

Chaffey. and Ellis-Chadwick. (2019) Digital Marketing: Strategy, Implementation and Practice. Seventh edition. Harlow, England; Pearson. Print.

Corporate Finance Institute. (2020). McKinsey 7S Model.

McKinsey. (2020) Agile marketing: a step-by-step guide.,tests%20quickly%2C%20evaluating%20the%20results%2C%20and%20rapidly%20iterating.

Percy, L., & Elliott, R. (2016). Strategic advertising management (Fifth edition.). Oxford University Press.

Roberts, M., & Zahay, D. (2013). Internet marketing : integrating online and offline strategies (3rd ed.). South-Western, Cengage Learning.

Smart Insights. (2020). The segmentation targeting and positioning model. 

Tuten and Solomon. (2012). Social Media Marketing. Pearson Education, Upper Saddle River, NJ USA.


Blog 4b – Week 5

Your friend is about to launch an online fashion store. Your friend is seeking your advice regarding social media marketing tactics.

Outline some possible social media marketing tactics suitable for a thrift store.

  • What is social media marketing?
  • Become an influencer 
  • Social Customer Relationship Management 
  • Content strategy 
  • Key social media metrics

The internet is useful for promotion and distribution and two-way communication models make brands interactive, with potential to interrupt and disrupt already established sectors with new technologies and services.

For the new thrift store e-business, there are opportunities to build on the new brand and to use social media for sales. Think about some of the successes like ASOS, The Iconic and Net-a-Porter.

For an online e-business the benefits relate to the motivation to purchase in this already established category.

  • Convenience
  • Remote delivery 
  • Sustainability
  • Efficiency in distribution
  • Trends and responsiveness.

Source: The Closet (2020) Instagram. 

Key messages link category need and benefit, including quality, online convenience, thrift prices, free returns.

Social marketing, behaviour change, encouraging more people to buy ethically, and a marketplace for thrift shopping online on consignment are facilitated through the use of e-commerce websites.

Overall the digital marketing objectives for a new business are to:

  • establish and build brand awareness, recognition and recall for all audiences
  • elevate share of voice over competitors
  • encourage more favourable brand attitude
  • increase sales
  • drive traffic to the e-commerce website
  • reinforce relationships with past customers and create brand loyalty. 

What is social media marketing?

Social media marketing is the use of social media technologies to create, communicate, deliver and exchange offerings that have value for customers. 

Social media describes internet and mobile based channels and tools that allow user interaction to share content and opinions, using networks to build communities for participation and engagement (Chaffey, 2019).

Social commerce is a subset of e-commerce, the practice of buying and selling on the internet. 

Using social media to enable shoppers to interact and collaborate during their online experience, stepping buyers through decision purchase, using social shopping, social marketplaces and tools to increase sales are part of a strategic social media approach to social commerce (Tuten and Solomon. 2018).

Social commerce uses social media channels and platforms to share user and brand information.

Useful tactics for retailing and e-commerce

Positive consumer ratings are the best way to encourage a purchase decision.

Become an influencer

Social media amplification is the way that brand awareness is increased through organic and paid social media updates and posts through social media networks and advertising.

Online fashion retailers are good at creating influence with models and fashion editorial. 

There are core social media user activities in a social community that relate to functionality and usability: converse, share, post, tag, upload content, comment.

Use social media to:

  • Gain recommendations from grassroots influencers
  • Work with influencers and experts to create thought leadership
  • Drive viral marketing 
  • Invite endorsement.

A new e-business should focus on brand.

Online brands can create trial and purchase using social media promotions.

Brand advocacy generates favourable brand perceptions and develops online brand personality through assets and tone of voice and prevents cognitive dissonance through consistency.

Online brand values are the core characteristics that build brand equity and help maintain and grow market share in that category. A new brand is built around core product offering. 

The frequency and depth of interactions with a brand can be enhanced through the internet, by creating an online C2C brand community (Chaffey, 2019). Listening and monitoring can result in increased audience understanding.

A multichannel strategy means that brands are accessible to different audiences through different platforms when they want them rather than the brand trying to reach out to them via traditional advertising on TV, magazines, radio. They are available on demand.

There are various uses for social media to develop and create customers through

  • customer and market communities
  • user-generated content (UGC)
  • consumer-to-consumer interactions (C2C).

Social Customer Relationship Management (CRM)

Use social selling to understand where prospects are and determine the best way to get in on conversations to generate leads, eg sales.

Email marketing for CRM can engage loyal audiences. Updates on fashion trends and promotions can be featured included fashion editorial with links to a fashion blog within the new website.

These tactics enhance customer experience (CX) to create brand loyalty and encourage following.

Content strategy

Tactically you can use high quality content to develop an audience, with hero content to engage target audiences. 

Create content to establish and maintain reputation as an expert and thought leader in the industry (Tuten and Solomon. 2018).

Consider governance, moderation policies and administration of social media.

Establish success metrics

Create a measurement framework using metrics and KPIs (Barker, 2017, p316).


  1. Share of voice
  2. Audience engagement
  3. Conversion reach

Promoting advocacy metrics

  1. Advocacy Impact (AIM)
  2. Advocate influence (AIN)
  3. Active advocates (AA)

Generating new product ideas

  1. Topic trend
  2. Idea impact.

Key social media activities

  1. Listen and manage reputation
  2. Transform the brand through social media
  3. Acquire new customers
  4. Increase sales to existing customers
  5. Deliver customer service.


Barker. et al. (2017) Social Media Marketing: A Strategic Approach, 2nd Edition.

Chaffey. and Ellis-Chadwick. (2019) Digital Marketing: Strategy, Implementation and Practice. Seventh edition. Harlow, England; Pearson. Print.

Percy, L., & Elliott, R. (2016). Strategic advertising management (Fifth edition.). Oxford University Press.

Roberts, M., & Zahay, D. (2013). Internet marketing: integrating online and offline strategies (3rd ed.). South-Western, Cengage Learning.

The Closet. (2020). Instagram.

Tuten and Solomon. (2012). Social Media Marketing. Pearson Education, Upper Saddle River, NJ USA.

Blog 2a – Week 3

2a: Examine the importance of the marketing environment to

a) digital marketing success and b) digital marketing failure.

  • The marketing environment
  • Environmental change
  • Successful digital marketing
  • Digital marketing failure
  • Incorporating current issues into strategy

The marketing environment

The marketing environment is the overall economic environment. Understanding the macroeconomic conditions can help businesses develop better strategies to be responsive to the stakeholders and to business conditions. Knowledge of the economy and stakeholders gives organisations a strategic advantage in developing an approach.

Strategy is everything really.

The changing nature of the political, social and economic environment affects every business, but in the digital economy e-commerce businesses are reliant on competition to position strategically for business growth. Ensuring that businesses thrive and succeed means that other businesses are also more likely to succeed and benefit in the long-term, because they are viable. Positioning is by definition manoeuvring based on the perception of your competitors (Chaffey, 2019). Business, economic and social issues will affect strategy. Competition leads to the reallocation of resources to ensure efficiency and productivity are maintained.

Environmental change

Changes in social culture are fast and technological advances are a part of a short-term culture, which leads to increased consumer demand. There are also supply side changes to resourcing as a result of societal change.

Technological changes that can affect digital businesses include:

  • emerging technology
  • platforms 
  • devices

Digital marketing is supporting marketing goals with technology and the macro environment as primary concerns using data. This is the marketing environment. Strategic agility (Chaffey, 2019) means gaining a competitive advantage through innovation by keeping up with changes in the marketplace. An evaluative approach can help to determine options and tactics. Businesses who are undergoing digital transformation should focus their strategies around evaluations of the existing business activities, baselining their approach to data to inform future digital marketing strategies.

a) Successful digital marketing

Businesses such as Amazon, ASOS, Apple and Netflix have identified areas where consumers have changing tastes and preferences such as the use of voice assistants, internet streaming services and data management, capitalising on their competitive advantage in understanding technology by grabbing new segments and building new audiences for new platforms.

Shifting consumer demand has resulted in low growth in digital media demand, as tastes and preferences shift, from TV and radio to internet streaming services (Deloitte, 2019). This is important for content marketers who choose mediums and vehicles based on audience segmentation.

Social media is useful for consumer-to-consumer (C2C) marketing and many social media platforms are still trying to make this model of trade successful, and focus more on drawing in digital advertising whilst websites such as GumTree build brand loyalty for marketplace transactions. Tactically online word of mouth is crucial to product success (Marchand, 2017), through microblogs (Twitter) and reviews.

A whole market perspective is better to understand emerging trends in the marketing environment. Everyone-to-everyone (E2E) involves cloud computing for universal access to services, data driven customer insights that inform digital marketing approaches, and e-commerce driven by martech in a digital ecosystem (Chaffey, 2019). Emerging digitalised services include financial intermediation services, UBER transport, wholesale e-Commerce, outsourcing and digitalised international trade (ABS, 2020).

b) Digital marketing failure

Businesses that fail are likely to leave the market or become less competitive for sale to other business. Bauer Media in Australia is a good example of business with a failing digital strategy, but not a failed business.

Many years ago, social media websites like MySpace struggled because they did not have functionality that met the needs of their target audiences and became less popular (Lee, 2011). Successful digital businesses focus on customer experience (CX) and user experience (UX) to create websites and applications that are user friendly and accessible.

International world wide web consortium (WC3) has standardised code and developed improved accessibility standards that help developers make more functional websites and technologies. 

Web standardisation reflects the maturity of the tech industry and the internet in developing new technologies and applications through research and development, for example Netscape standardised Javascript as a programming language. Research and development is crucial to digital marketing success. 

Incorporating current issues into strategy

A relevant model for strategy development is the SOSTAC framework (Chaffey 2019).

  • Opportunity – situation analysis using PESTLE and SWOT and objective setting (Political, Economic, Sociological, Technological, Legal, Environmental)
  • Strategy – tactics and resourcing to achieve objectives through activities
  • Action – managing implementation through actions and controlling the environment with effective systems.

The 5 D’s of digital marketing 

A PESTLE analysis for a digital marketing strategy is informed by the 5 D’s of marketing.

  • Digital devices 
  • digital platforms
  • digital media
  • digital data and 
  • digital technology.

Source: Chaffey (2012)


Barker. et al. (2016) Social Media Marketing: A Strategic Approach, 2nd Edition.

Chaffey. and Ellis-Chadwick. (2019) Digital Marketing: Strategy, Implementation and Practice. Seventh edition. Harlow, England; Pearson, Print.

Chaffey. (2012) SOSTAC® marketing plans [infographic].

Deloitte. (2019) Media Consumer Survey.

Elliott, G. (2017) Marketing, 4th Edition, Wiley. ProQuest Ebook Central,

KPMG. (2020) Traditional business models won’t be enough in the digital commerce era.

Lee. (2011) Myspace. How the social network fell apart. The Huffington Post.

Marchand, Hennig-Thurau, Wiertz. Not all digital word of mouth is created equal: Understanding the respective impact of consumer reviews and microblogs on new product success. International Journal of Research in Marketing, Volume 34, Issue 2, June 2017, Pages 336-354,

Roberts and Zahay. (2013) Internet Marketing: Integrating Online and Offline Strategies. 3rd ed. Mason, OH: South-Western, Cengage Learning. Print.

Tuten. and Solomon. (2018) Social Media Marketing. Pearson Education, Upper Saddle River, NJ USA. Print.

Zhao. (2020) ABS Chief Economist. Measuring digital activities in the Australian Economy. Economic Research Hub.,to%20economies%20around%20the%20world

Blog 1a -Week 2

1a. Explain the concept of digital marketing and critically evaluate the digital business model of an online retail business.

Let me explain how digital marketing works.

Digital marketing is the use of digital media to support marketing activities. Communications facilitated through content and interactive products and services are delivered by digital technologies such as the internet, web, mobile, phone, TV and digital displays and signage (Chaffey, 2019, p9).

Marketing itself is the management process of identifying, anticipating, and satisfying customer needs to earn a profit (Chaffey, 2019), and achieving marketing objectives through the application of digital media, data and technology is the aim of digital marketing.

The integration of digital and traditional communications throughout the customer lifecycle creates seamless and efficient marketing executions. Social marketing involves the monitoring and facilitating of customer-to-customer (C2C) interactions to create positive engagement with a business and its brands.

Understand the strategic value of digital technologies

Digital marketing tactics can be used strategically to develop and expand markets, products and services, to diversify existing product bases and capture new audiences in new geographical markets to sell more goods and services, building customer relationships to create brand switching. The effects relate to demand side economics, that is, they relate to the consumer competition.

A combination of good strategy and positioning using both traditional and digital marketing with a comprehensive understanding of the competition can give businesses an advantage.

A great example is Amazon, a multinational technology company, e-commerce business, focusing on cloud computing, artificial intelligence, and digital streaming.  In 2019 Amazon Australia reported $562 million in revenue and its focus is on building physical operations that complement their online presence, through Amazon Flex, and cloud based web infrastructure (SMH, 2020). Internationally, Amazon have focused on the development of new digital technologies to integrate their retail experience, creating seamless tap-and-go environments for grocery shopping (CNBC, 2020) and investing in automation in the supply chain through robotics, research and development.

Globally Amazon has achieved economies of scale which means that they can reduce supply costs for delivery as consumers embrace convenience. This is a responsive move, and on-demand delivery options for customers who are willing to pay remain popular. Achieving returns by reducing production costs means that Amazon will continue to dominate in a globally competitive market.


Barker. et al. Social Media Marketing: A Strategic Approach, 2nd Edition.

Chaffey, Dave, and Fiona Ellis-Chadwick. Digital Marketing: Strategy, Implementation and Practice. Seventh edition. Harlow, England; Pearson, 2019. Print.

CNBC. Tech. 30 July 2020.

CNBC. Tech. 14 July 2020.

CNBC. Tech. 21 January 2018.

Roberts and Zahay. Internet Marketing: Integrating Online and Offline Strategies. 3rd ed. Mason, OH: South-Western, Cengage Learning, 2013. Print.

Tuten. and Solomon. Social Media Marketing. Pearson Education, Upper Saddle River, NJ USA, 2018. Print.



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