Assessing the Impact of Digital Marketing in Generating High Customer Base of Online Retailers: Case Study of EBAY
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Download PDF FileIntroduction
Digital marketing is defined as the usage of digital media platforms to connect with customers globally. The digital media platforms included are the internet, social media, mobile devices, and various other channels (Baron, 2019). There are five D’s in digital marketing which creates an opportunity for consumers to communicate with brands and at the same time allows businesses to learn their consumer behaviour. The five D’s are; digital device, digital platforms, digital technology, digital data, and digital media (Chaffey, 2018).
Research Problem
Nowadays, the internet is popular amongst the majority of the population and consumers are using the internet for online shopping to fulfil their essential needs (King, 2018). Yet, even though there has been an increase in the use of digital media platforms, the role of digital marketing has not been widely covered by academicians and researchers alike in association with how it increases the consumer base. Researchers such as López-García et al., (2019); Ahmed et al., (2019); Saura, Palos-Sánchez and Cerdá Suárez (2017); Taken Smith (2012) all contemplate the importance or effectiveness of digital marketing either independently or from the perspective of consumer behaviour. Yet, the majority of the most recent available literature does not ponder upon the impact of digital marketing with regards to increasing or providing a high consumer base. Since digital marketing is a constantly evolving phenomenon; literature pertinent to the aforementioned concept needs to be updated regularly. Therefore, the following research study intends to cater for the above-mentioned literature gap.
Research Significance
The significance of the following study will the threefold. Firstly, the results of the present study will be crucial in filling the previously mentioned literature gap thereby aiding future researchers to carry out further research on the variables of this research. Secondly, the current study shall also be of assistance to eBay who can utilise the recommendations that the researcher will put forth in improving their digital marketing strategies to increase their customer base. Finally, organisations similar to eBay can also benefit from the following study to improve their digital marketing strategies in the quest of improving or enhancing their customer base.
Research Aim and Objectives
This research aims to evaluate the impact of digital marketing in generating a high customer base of online retailers: a case study of eBay. Following are the objectives of this paper:
To study the concept of digital marketing from a theoretical perspective
To identify the key factors pertinent to digital marketing that influence and lead to an increase in customer base
To evaluate the impact of digital marketing in generating a high customer base with regards to the case study of eBay
To provide recommendations for eBay that they can use to increase their customer base through improving their digital marketing strategies
Literature Review
By using digital media platforms, digital users can access information anytime anywhere they want allowing them to know not only what the company says about its brand but what other consumers think about it. Digital marketing has an extensive reserve of resources such as the selection of brand, service, product, and strategies that allows it to reach millions of customers globally. For example, L’Oreal uses email marketing to stay connected with its customers which allows them to increase its brand loyalty and its customer base (Yasmin, Tasneem, and Fatema, 2015).
Content Marketing Institute has provided some statistics that show the importance of content marketing as one of the strategies of digital marketing. B2B marketers are making 70% more content from the past year because branded content allows for better purchases among the consumers and 61% of customers agree on having custom content from companies that offer them. 84% of marketers agree on content marketing as their main aim for creating brand awareness among consumers and 42% of them post new content daily or weekly to stabilize their content marketing strategy (Baltes, 2015). Some of the statistics below show why it is important for organizations to have a digital presence enabling them to reach millions of customers globally and increase their customer base;
The chart above shows the primary reason why consumers in the US make digital purchases in which the major reason is the convenience of online shopping. The following graph shows the most effective digital marketing tools employed to increase the customer base of an organization;
The following graph also shows the most used social media platforms and why organizations use them to increase product sales.
Methodology
The following research study will be based on the primary data collection method, whereby the researcher intends to use the qualitative research design. The data collection tool for this research study will be an open-ended interview and the interviews will be carried out online with 5 marketing managers working for eBay. After conducting the interviews, the collected data will be analyzed through thematic analysis.
References
Ahmed, R.R., Streimikiene, D., Berchtold, G., Vveinhardt, J., Channar, Z.A. and Soomro, R.H., 2019. Effectiveness of Online Digital Media Advertising as A Strategic Tool for Building Brand Sustainability: Evidence from FMCGs and Services Sectors of Pakistan. Sustainability, 11(12), p.3436.
Aslam, S., 2019. Digital marketing by the number: Stats, Demographics & fun facts. [Online] onmicoreagency. Available at: https://www.omnicoreagency.com/digital-marketing-statistics/
Baltes, L.P., 2015. Content marketing-the fundamental tool of digital marketing. Bulletin of the Transilvania University of Brasov. Economic Sciences. Series V, 8(2), p.111.
Barone, A., 2019. Digital marketing. [Online] What is digital marketing? [Availabel at: https://www.investopedia.com/terms/d/digital-marketing.asp]
Chaffey, D. (2018). What is Digital Marketing? A visual summary - Smart Insights. [Online] Smart Insights. Available at: https://www.smartinsights.com/digital-marketing-strategy/what-is-digital-marketing/ [Accessed 2 Nov. 2019].
De Pelsmacker, P., van Tilburg, S., and Holthof, C. (2018). Digital marketing strategies, online reviews and hotel performance. International Journal of Hospitality Management, 72, 47–55. doi:10.1016/j.ijhm.2018.01.003
Hair, J.F., Harrison, D. and Risher, J.J., 2018. Marketing Research in the 21st Century: Opportunities and Challenges. Brazilian Journal of Marketing-BJMkt, Revista Brasileira de Marketing–ReMark, Special Issue, 17.
King, J. (2018). Why Shop Online? It's Easy. [online] eMarketer. Available at: https://www.emarketer.com/content/why-shop-online-it-s-easy [Accessed 2 Nov. 2019].
López García, J.J., Lizcano, D., Ramos, C.M. and Matos, N., 2019. Digital Marketing Actions That Achieve a Better Attraction and Loyalty of Users: An Analytical Study. Future Internet, 11(6), p.130.
Saura, J.R., Palos-Sánchez, P. and Cerdá Suárez, L.M., 2017. Understanding the digital marketing environment with KPIs and web analytics. Future Internet, 9(4), p.76.
Stephen, A. T. (2016). The role of digital and social media marketing in consumer behavior. Current Opinion in Psychology, 10, 17–21. doi:10.1016/j.copsyc.2015.10.016
Taken Smith, K., 2012. Longitudinal study of digital marketing strategies targeting Millennials. Journal of Consumer Marketing, 29(2), pp.86-92.
Tiago, M. T. P. M. B., and Veríssimo, J. M. C. (2014). Digital marketing and social media: Why bother? Business Horizons, 57(6), 703–708. doi:10.1016/j.bushor.2014.07.002
Yasmin, A., Tasneem, S. and Fatema, K., 2015. Effectiveness of digital marketing in the challenging age: An empirical study. International Journal of Management Science and Business Administration, 1(5), pp.69-80.
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