Affiliate Marketing, Search Engine Marketing, and Viral Marketing - Assignment Example

DIGITAL MARKETING Question Affiliate marketing, SEM and Viral marketing Introduction Emerging trends in the world of business are increasingly being shaped by the influences of technology and IT. The world of marketing is therefore having much influence from IT and e-marketing or better known as digital marketing strategies, which are slowly gaining appreciation across the globe (Duffy, 2004, p. 356). Digital marketing however has various forms, which include affiliate marketing, search engine marketing as well as viral marketing. In this section, this paper provides an analysis of these different forms of digital marketing in order to provide a qualitative guidance to the UK based agency on digital marketing. 1. Affiliate marketing This is a ‘performance-based’ marketing strategy, which is gaining significance among marketers where organizations esteem their affiliates and encourage them to carry out personal efforts to gather customers for the organization. The strategy works by providing incentives in form of financial rewards to the affiliates for every new customer who comes after the efforts of an affiliate’s marketing strategies (Libai, Biyalogorsky & Gerstner, 2003, p. 303-311). The connection of the affiliate marketing to digital marketing is by the fact that the marketing strategies adopted by the ‘affiliates’ often times are use of internet to market. Affiliates use such mechanisms as search engine marketing and optimization, content marketing, display marketing as well as e-mail marketing. Besides, many affiliates adopt lesser orthodox mechanisms in advertising and they use published reviews on services and products by their partners. Though the marketing form is still low perceived in retailing, e-retailers increasingly appreciate the form in marketing strategies. Though the ideology is relatively new, its application in marketing for adult, retail, file sharing as well as gambling sectors have raised its relative importance in the market. It is therefore easily gaining prominence across of other sectors such as mobile phones, travel, finance as well as the real estate sectors in the economies. It is shown to have highly benefitted from the e-commerce websites although the website received relatively lower appreciation in retail industry at the inception time (Duffy, 2005, p. 161-163). The development of web 2.0 has brought about great success in online interactions as against the case with previous versions of websites. Interactive online platforms have enabled bloggers and marketers to reach to a relatively higher market segments as against other means of marketing. Communication is a prerequisite to any marketing strategy as it explains the capacity of information to be passed on to the potential or target customers while feedback is relayed back to the retailer. It is this understanding that explains the efficiency that marketers in modern day commerce are deriving from increased interactions through web platforms by use of web 2.0 technologies. Affiliate marketing for the real estate agency would therefore exploit great gains through adoption of social media platforms, which use the interactive web 2.0 platforms for ease of exchange of information concerning products and services (Castronovo, & Huang, 2012, p 117). Advantage: Contextual blog posts and well developed web pages with customized marketing adverts would serve well for the agency and the ease of interactions and communications forms the main basis of this strength. Disadvantage: The method is relatively slow as it depends wholly on an affiliate’s networks hence the slowness in reaching beyond circles of friends. The most effective system of compensation to be adopted would be compensation per click as the capacity for an affiliate marketer to attract more visits on an ad has the capacity to lure more people to purchasing the service and or product. 2. Search engine marketing The system is a common tool used in digital marketing with financial gains being the main motivation to marketers. Pay-per-click system of rewarding the web host is the main system that has been adopted for use in the systems. History shows that the Google, Bing as well as Baidu to have been leading search engines and hence the most used for marketing across the globe. The system recognizes management of search campaigns by vendors for advertising by use of ‘SEM’ provider tool. Search engine websites optimize visibility of advertisers’ webs through a number of tools, which include ‘key word analysis and search’, ‘saturation as well as population of website’, ‘Back end tools’ as well as through ‘Whois tools’. Besides, paid inclusion is another most effective mechanism where at a fee, a retailer’s website would appear together with results from a search engine and this becomes quite an effective tool for online marketing (Murphy, & Kielgast, 2008, p. 90-97; Grehan, & Pettijohn, 2009, p. 100-113). PPS programs as well as Google Adwords are among other programs that have been used in the past to ensure high levels of traffic in advertising and this ensure effectiveness. Customer satisfaction and loyalty is therefore the main target through digital marketing and search engine increases the effectiveness in realizing such by individual marketers. It is however worth noting that the SEM has many controversies especially in ethical matters where complains are rised on how paid searches would lead a consumer to a different cite. It is therefore the responsibility of individual marketers investing in search engine marketing to evaluate on the most effective and efficient service provider to work with as many such service providers are readily available online. Its main advantage however is in the capacity for such search engines to reach to wider market segments of potential customers across the globe relatively easily and cheaply. The Google search engine for instance has increasingly been used for such marketing as explained by the heavy traffic the search engine serves at any time. Cost implications however play a vital role in influencing the choice of the service provider to use in marketing through search engine. Advantage: Large population coverage presents the main advantage in use of search engines for marketing as most of the engines serve global clientele. Disadvantage: The ethical complaints as well as relatively high costs involved serve as shortcomings to this system especially within the real estate industry. It is from these considerations that this report would recommend the use of search engine marketing services by the real estate agency in UK in order to reach out to higher markets within the region and across. 3. Viral marketing Also known as, viral advertising refers to mechanisms of advertising and marketing by use of already existing social media networks where predetermined replications or the viral processes occur towards all ascribed persons in the social media network (Sohn, Gardner, & Weaver, 2013, p. 21-30). It is very effective in creation of brand awareness as well as other marketing objectives and can be enhanced through word of mouth as well as through such social networks. The most common tactics used in viral marketing are the use of interactive video clips, digital games, eBooks, branded software, images, e-mails and text messages as well as through specialized web pages (Salcu & Acatrinei, 2013, p. 767-770). Creativity is however, the main tool adopted for increased effectiveness in using the viral form of marketing (Fitzgerald, 2013, p. 15). Marketers target such persons with large numbers of networking partners or those with high SNP (Social networking potential) and hence increasing the potential of spreading the viral messages across a great number of persons within just a short time of interaction on the social interphase (Daniasa, et al, 2010, p. 278). Besides, higher creativity enables the use of mobile platforms for such transmissions hence the effectiveness in advertising and realization of such other objectives of marketing (Gardner, et al 2013, p. 25). The historical background of the concept of viral marketing stemed from the understanding that ideas would flow as easily as viruses spread. However, just as communication relies on effective relying of ‘message’ form the sender to the recipient through a medium, the e-marketing technique relies on the ability of a marketer to pass right information to the ‘right messengers’ who in turn rely on the right environment to pass over. Salespersons and social media platforms are often used viewed as the main messengers in viral marketing while increased campaign and necessary changes in social platforms form the environment. Memorable and interesting messages work absolutely well through the marketing strategy and they realize increased success through the mode of marketing. The method therefore presents an equal great opportunity for such an agency as the UK real estate agency being focused in this study. For instance, if the agency would target the over a billion face-book subscribers through the viral marketing, this would result to great success in marketing the brand and the products on offer. Advantage: It is worth noting that the use of internet in the viral marketing presents the most outspoken advantage because through the internet, brand awareness would be created globally overnight (Kwiatkowska, 2009, p. 1047-1050; Grifoni, DAndrea, & Ferri, 2013, p. 22-25). Besides, social networking platforms are increasingly shaping the world hence the timeliness and capacity to be effective in reaching many people. Disadvantage: The agency may find it hard to reach target populations whenever people have installed firewalls to filter and block unwanted files as the viral segments would be understood in software. Question 2: Proposed tool Search engine marketing As a chain agency dealing with real estate in UK, the firm has great potential that could be exploited through adopting the modern tools of marketing in order to reach out to the various market segments it focuses on within the region (Chen, 1999, p. 96-97). The main problem being investigated here is the capacity for the agency to attract higher online presence of potential customers in order to be effective in trading within the industry. Market strategies and segmentations are basic features that the agency needs to analyze before embracing any mode of digital marketing for effectiveness and efficiency (Katherine, 2012, p. 86; Pulendran, Speed & Widing, 2003, p. 476-479; Tapp, 2003, p. 279). Segmentation of market in this respect alludes to classification of market segments on lines of commonality, kinship as well as similarity among other attributes of target populations. Segmentation is effective in that people sharing one segment have much shared attributes as a fact. This assists the marketing agents in concentrating efforts for effectiveness in reaching out to the target populations. A marketing agency gains competitive advantage against rivals through effective concentration of marketing and awareness creation across one segment. The marketing of new products by an organization that deals with such particular products and services as real estate is more effective while efforts are concentrated within a specified segment of people. Segmentation enables the organizations identify the common attributes of all persons within the segment and designs on the most appropriate tools to employ in targeting the segment for competitive advantage. There are different types of segmentation, and they include geographic segmentation, distribution segmentation, media segmentation, lifestyle segmentation, demographic segmentation as well as time segmentation (Hammond, Ehrenberg & Goodhardt, 1996,p. 39-44; Schaffer & Green, 1998, p.155). Marketers in the modern day respond to the customers’ behaviors through various mechanisms or ways and they adopt various tools that are meant to win customers to buy products or services. These ways are however dependent on customers’ behavioral response to the urge to have their needs and wants met. Among the major ways that have in the recent past characterized marketers’ responses to these behaviors is the market segmentation (Simpson, 2005, p. 137-138). This refers to the specialization of marketing approaches to focus to various market groups. This is by taking the consideration that the entire market frame is composed of different categories of people who could be potential customers. However, depending on certain group characteristic, the different groupings require different approaches in marketing in order to be effective in targeting them. For instance, marketing strategies adopted in target of the poor segments in a society may not be appropriate in targeting the rich. Besides, marketing in target to the elderly may not be effective through the digital advertisement and promotions but the technique would be most appropriate for the Middle Ages and young generation segments (Wilson & Pettijohn, 2006, 122-125). Marketers are continuously acknowledging the differences within the market groups that are stipulated on age differences. Certain marketing procedures will be more appealing to the young generation than they are to the elderly and vice versa. This therefore has necessitated the marketing groups to adopt the mechanisms that are seen to be most effective in targeting the distribution in age and social economic demographics of persons. Understanding the behavioral characteristics of consumers at the different age segments is critical in adoption of favorable target strategies as well as in segmenting strategies. Through the natural segmentation by age, the marketers are therefore able to address the various segments effectively and accurately through adopting the most relevant tools such as advertising through various channels while targeting the different age groupings (Jiang et al, 2011, p. 619-625). This paper adopts and proposes that the real estate agency in UK uses the search engine marketing tools as part of the digital marketing strategies that are currently pursued. This is because with the company having an already functional website, only little improvement in design and linking with efficient search engine marketing service providers like Google and Yahoo Inc to reach out towards the target segments of potential customers is needed. There are main features that would be dominant in designing the business website and these are together with the capacity to have as much information as possible, higher capacity for interactions, ease of access by other people as well as high level of confidentiality especially on customer information. This would be effective in overcoming strategic challenges that are posed by advancement of technology including increased security risks, high compromise of individual information as well as lowered probability of customers and or the agency to lose sensitive information to unauthorized person. Digital marketing through search engines provides the widest coverage towards potential customers because internet use has become the ‘in thing’ in the modern day. Besides, the agency would be targeting mainly the middle ages and the youths who have been shown to be most active in use of internet for research, social media and general exploration. With major competitors in the real estate industry investing greatly in the digital marketing, the agency is strategically placed to exploit the great opportunities and benefits that online marketing would present (Rowley, 2002, p. 3652). This study therefore presents the proposal of adoption of the search engine tool of marketing as the most effective owing to the nature of industry under analysis. The real estate industry in UK is at an advanced stage with many agencies specializing in offering the management and property development in the United Kingdom. The main target populations and customers for this marketing plan for the agency are the businesspersons, the companies as well as the retired and retiring public servants. The products that the company intends to specialize on are such as residential quarters especially for family use, office suits and villas (Holmes & Hudson, 2002, p. 66), clubs and recreational facilities like gyms, conference facilities, health clubs and entertainment facilities among others. Parking lots and shades are equally in great demand owing to the influence of modernization where merely all families own at least a vehicle. The marketing strategy earlier alluded to in the discussion will involve a number of features among which are creation of awareness among the target populations and having effective means of targeting the potential customers for the products. The use of the e-marketing and in particular adopting SEM as a form of digital marketing strategy is the main tool to be used (Agarwal, & Shukla, 2013, p. 130-136). The tool as advocated for would be effective in not only reaching many people but also clearly portraying the clarity of the agency’s vision and target. The agency would adopt such slogans as ‘working in solitude but communicating to multitudes’, ‘mixing pleasure as well as business professionally’ as well as oriental real estate creativity and modernity’ which would all insinuate to the strategic alignment of the agency with modernity. Three D animations as well as property images would be useful in painting ‘clarity and reality’ to the focus customers whenever they visit the search engines and this would affect the feeling and vision of the target customers thus influencing them positively towards buying the products. Through the strategic use of digital marketing method, the agency would effectively reach out such potential customers who are often literate and capable of using the search engines intentionally or otherwise and in the process coming across the ads. The choice of search engines for ads provides the most efficient and effective tools that would be used ‘spread the word’ effectively through effectively targeting the market through the internet as well as having wide coverage and increased publicity. Uniqueness and high creativity is a virtue that would drive the marketing strategy by use of digital systems as modern trends are increasingly adopting across the globe. Public relations are another aspect that is quite vital for the success of the marketing strategy under analysis here. This plan therefore proposes the adoption of a department of public relations, which will serve as a contact centre for addressing the main issue raised by customers. Creating such a communication platform would create a link of communication between the customers and the real estate agency in UK across all the chain branches. Through such effective communication, good image is created, managed as well as maintained across the platform in the industry. Besides, the media center would be used to organize awareness campaigns of the agency and conduct such marketing events like launch of products. Nevertheless, the effectiveness and success of such departments will be wholly dependent on the success of the SEM. The SEM would also provide effective tools to conduct pre-event promotions as well as the after event follow-ups, which would also be instrumental towards the success of the real estate agency in the course of one year as is covered by the marketing plan. In conclusion, therefore, the use of search engine for marketing has proved effective in the past on providing commendable avenue for reaching target customers for the retailers through use of internet (Wilson & McDonald 2001, p. 815-820; Zhao & Tse, 2011, p. 123). It is thus dependent on internet and the emergence of web 2.0 for office and mobile technologies has been attributed to the great success in using the interactive websites (Gillian S. M. , 2002, p. 9-15). 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