Figure 1: Infographic
Part 2: Critical Analysis of Theory
Database marketing is a widely used form of direct marketing strategy. The process helps to maintain data about the customers for better marketing communication. It is a method of collecting and identifying data regarding the customers. The analysis is based on several aspects of database marketing in the digital markets. The marketing process helps to analyze the market strategies by analyzing present data. Here the selected organization is Currys PC World. The organization sales depend on different electronic products. The selected product is Television. The entire study has emphasized the important parts of the database marketing process like advantages, implications, role and many more things.
Database marketing plays a significant role in the digital markets. The procedure helps to create a relationship with customers. The process conveys that through the up to date data an organization can trace its customers. The main product for this analysis is television. Through the television, the organization can grab the digital markets as it is the only product that has used by every people. Database marketing helps to gather important data about the product and product-related markets (Yu and Chengqun, 2016). It helps to analyze the demands of the product in the market. Currys PC World is a famous company in the UK that sales electronic products like refrigerator, ac, television. The database marketing system helps to determine the target according to the product. Based on the demands of the market and customer database market increase the digital markets of the organization. Therefore, it will help to increase the sales force in the market.
Through this marketing process, the organization can calculate the financial flows of the organization. Therefore, the organization can easily determine the future goals that they need to fulfill in the future. Marketing allocation is a vital part because the company needs to understand which place and markets are perfect for the product because different markets have different demands. To enhance the productivity level database marketing has provided some loyalty programs for the organizations therefore it will help to increase the mixed sale in the digital markets (Chiang, 2017). The client’s demand is the most essential thing because to maintain the market position the organization should fulfill the demands of the clients. Database marketing helps to keep the information about the clients also portrays that behavior is the major thing in the case of the marketing procedure. Database marketing always collects the data regarding the trending market and helps to provide valid pieces of information about digital markets. The marketing process provides demographic data about the customers and the market. The organizations should maintain the external information that can affect the market as business-related information should be maintained in the organization. Proper marketing can enhance the interactions within the people, it says every market should maintain individual campaigns for the progress.
Figure 1: Role of Database Marketing
(Source: Chiang, 2017)
Television is the selected product category of Currys PC. Using the Digital marketing strategy the company aims to increase its sales and profit of this product category. Based on the UK’s marketing strategy Currys PC has analyzed that television is a vital product that can attract a large market of the UK. Television is a commonly used product that’s why it can be said that people will be more attracted through digital marketing.
Currys PC World is a UK based organization that sales electronic products. Based on the markets of the UK it can be said that the main target for Television products is the young and middle-aged customers. The young aged people always try to use some digital products because of the easier lifestyle. The children are also attracted to Television. However, a digital marketing strategy such as Database marketing can use only for adults (Ascarza et al. 2018). It is obvious that this marketing strategy may not be suitable for attracting teenage groups. That means, adults and middle-aged customers will be the main target market of Currys PC. Currys PC should try to attract these particular target markets and fulfilling the demands.
In the upcoming years, the UK has decided to improve the television trends. Therefore, they have applied several trends. Like-
Big and cheap TV screens: In 2020 the television market has decided to bring the 65-inch TV screen for the customers. The executive director of research technology has stated that the 55-inch TV screen is not in a trend nowadays. The technology department has decided to bring a 70-inches TV screen in the market within a few years. The business directory of the retail market has stated that they are planning something big and cheap for their customers.
Better and brighter HDR: High dynamic marketing is the main issue in TV markets. Every organization is trying to maintain the HDR quality of the television because it provides proper brightness, video processing quality. In a report, it has found that last, the television market has faced loss due this HDR quality, therefore, and the organizations have decided to bring this quality on the TV (Patrutiu-Baltes, 2016). Through the consumer feedback, the reporter of the UK has stated that the HDR test patterns have provided proper video content and HDR movies and TV shows.
Improving the LCD sets: some of the organizations have developed their LCD screen of the television in the past few years. UK television markets have conveyed that some of the LCD screens have the backlights. The technological head of the UK has stated that each TV has individual pixels and LCD quality based on the structure. In 2020, the UK is focusing on the LCD development of the TV. Another development that is needed on TV is mini LED backlight. It will help to create a dimmed zone.
There are many benefits of database marketing, like-
Personalize the customer segmentation: the main focus of this marketing style is to maintain personalize data about the customer. It helps to get specific data about customer interest.
Increase the Revenue: Currys PC should focus on the brands of the product as the target product is Television therefore they need to sell proper branded products. It will help to increase the revenue of the organization. The database marketing strategies help to find out the target customers for the product (Stephen, 2016).
Customer feedback: Currys PC must focus on the feedback of the customers. For this purpose, the organization should open the online business. Database marketing helps to focus on the customer views over the product. After purchasing the product customers can provide their feedback for this database marketing process.
Establish relevant communications: the database marketing gather information about the customers with the help of demographic data. The marketing strategy helps to provide proper data to the proper person (Kingsnorth, 2019). It can be a waste of time in case the procedure provides information to the wrong person.
Targeting website visitors: the entire marketing procedure is not only based on the phone calls or emails related information. Currys Pc should open their own official website as wel., as social media page. The database marketing strategy conveys that with the help of social media the organization can easily portray the products. They can provide detailed information about the product; therefore, the customers can easily query the product.
Helps to test new ideas:
The database marketing strategy portrays that every organization should try new ideas to generate new products to fulfill customer needs (De Bock, 2016). For this reason, the organization should approach the feedback of the customers it can provide them proper ideas.
Helps to increase the User experience:
Database marketing conveys that the comments of the customers on the organizational website help to evolve the different sources about the digitalization. By following the online activity of the consumers the Currys PC can easily experience the customers.
Build authority and brand affinity: the marketing process conveys that the helpful content or comments of the customers will help to build a brand image in front of the customers.
The database marketing has some barriers also which prevents its smooth functioning among the organizations. The challenges of database marketing are-
Figure 2: challenges of database marketing
(Source: Created by researcher)
Fragmentation of database system–
In the era of modern technologies, data are collected from various sources. There are also various types of data to collect. All these make a fragmented system of database marketing. This creates difficulty for the organization in assorting data properly. Currys PC World has faced issues regarding taking proper decisions based on the collected data for this kind of fragmented system.
Data decay– the recorded data of the database are likely to be decayed over time. Around 2-3% data decays every month and therefore marketers face issues regarding accessing data properly (Mandal, 2017). Currys PC World should clean their database regularly to have an updated list of customers and their requirements. For example, the data regarding the order of television should be noted properly in order to deliver the product efficiently.
Accuracy of data– Inaccuracy of data is the most crucial problem of database marketing. The customers do not provide accurate data every time and this creates a problem for the organization. Data collected from handwritten papers, typing are prone to be inaccurate. The Currys PC World can include checkboxes or drop-down menus to collect data effectively and work upon them accordingly. With the help of the check-boxes, the customers can choose their preferred television from a variety of choices.
Time restrictions- Analysis of collected data is crucial to meet the demands of the customers. Database marketing cannot arrange the information based on the time and this creates difficulty in accessing relevant data timely. However, there are appropriate tools which can manage the data in a time frame and the company should take help of a proper database marketing tool to arrange their data according to their need (Ryan, 2016). For example, with the help of proper marketing tool, the Currys PC World can list the customer’s order based on the date to deliver products accordingly. Otherwise, delivery of products can be dysfunctional if the information is not arranged properly.
Cost of the database– a primary issue of database marketing is its cost. Proper maintenance of a database requires a large amount of money. Also, the price depends on the size of the dataset as the maintenance price increases along with the increment of the size of the collected dataset. The Currys PC World should strategies accordingly to maintain the cost of database marketing based on their financial resources.
The database markets impact the client and the organization like Currys PC world. There are some factors that impact the customer and the organization. The market helps to search the information about trending demands and new entrants in the market. For digital marketing process database marking is necessary because through the online sites the organization can easily increase the productivity level of the organization. Digital marketing provides a new turn to the television because the organizations can easily sell it by using an online site (Bradlow et al. 2017). On the other hand, the organization can also provide detailed information about the product and brand. For database marketing strategies, the delivery of the products has been easier from the past days. The marketing strategies help to measure client satisfaction. Database marketing keeps the record of the orders and the delivery of the products. Digital Marketing has improved the billing system and can easily identify the bad payers of the product.
The portfolio analysis has described different aspects of the chosen market and product. The organization Currys PC World is a famous UK based organization that sells several electronic products. The selected database marketing strategies are too important in the case of the Digital marketing process. The analysis has emphasized the role of database marketing and its advantages in the digital markets. The chosen product is television has a trending market in the UK, therefore, the organizations should focus on the trending markets of Television that will help to grab the market. There are some challenges also that need to be overcome by the organization. The implications of database marketing have many advantages that can provide a proper market to the selected product.
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