On 3
Topic 3 - Zoey
There are three key elements to be considered when CompanyOne conducts a digital brand analysis. These elements are:
1. Brand share 2. Brand audience 3. Brand and consumer alignment.
Explain the role that each of these elements plays in CompanyOne’s digital brand analysis.
Brand share is a percentage of a given product category’s sales that is attributed to one brand (Valentine, 2020). Essentially, it also means market share with the amount of dollars spent by consumers on a specific brand compared to other brands. The role that brand share plays in analyzing a brand is making sure that CompanyOne is acting responsibility making good marketing decisions. There is a direct positive correlation between market share and return on investment (ROI) because as market share increases so does profit (Buzzell, Gale, & Sultan, 1975). It is important for CompanyOne to consider brand share in its digital brand. Businesses selling products that are purchase infrequently and by a fragmented customer group, will have a greater advantage of large market share (Buzell, Gale, & Sultan, 1975). Ultimately, analyzing brand share can help to determine if CompanyOne is on track to hit their marketing goals relative to their competitors.
Brand audience would be the CompanyOne’s target audience. Digital brand analysis includes brand audience to ensure that CompanyOne has the right market To develop a target audience, CompanyOne can gather data to determine consumer demographics. These consumer demographics can include age, marital status, estimated salary, location, and ethnicity (UMGC Working with Data, 2022). By analyzing CompanyOne’s audience, it can be determined if CompanyOne has a good marketing strategy. Firstly, by gathering audience insights as varied sets of information as possible, CompanyOne can get a full picture of its audience (UMGC Working with Data, 2022). By getting a full picture of a target audience, CompanyOne can then segment its audience. By segmenting an audience, specific groups of users can be analyzed (Data Analytics: Goals, Tools, Benefits, and Challenges, 2022). Data segmentation can help CompanyOne with its marketing strategy to target consumers that will spend more on their online merchandise business.
Brand and consumer alignment is described as a branding strategy that matches the needs & wants of the target market. Brand and consumer alignment is important in digital brand analysis because of its value. Data analytics can help to analyze CompanyOne’s digital marketing strategy. By looking at trends and changes of a period of time, CompanyOne can see if its strategy currently aligns with is consumers (UMGC Working with Data, 2022). Brand alignment is valuable because its means consumers will spend more and create brand awareness. When consumers are aligned with a brand they are willing to spend twice as much share of wallet as those who may not be aligned with a brand (Fleming, Witters, & Adkins, 2014). CompanyOne must build trust and gain significant wallet share of consumers.
Most social platforms provide huge amounts of data; however, in the aggregate, which is not very useful. Accordingly, it is not advised that CompanyOne analyze its traffic in aggregate. Web analytics guru Avinash Kaushik argued that “data in the aggregate is useless;” companies should segment or die! (Hemann & Burbary, 2018, p. 13).
Explain six of the segmenting strategies that CompanyOne may pursue when using Google Analytics (GA), and the pros and cons of each of them.
The Six Segmentation Strategies are 1) Demographic 2) Geographic 3) Psychographic 4) Behavioral 5) Needs-Based 6) Transactional. The pros of demographics is that it separates consumers based on who they are in terms of age, gender, occupation, income, and family status (Perceptive, 2018). Another pro of this type of segmentation strategy is that it can eliminate irrelevant audience segments quickly and easily. According to Harvard Business Review, market segmentation based on demographics does not provide a clear direction for marketing strategy because of its traditional methods it cannot keep up with competition (Yankelovich, 1964). For example, if CompanyOne is looking for high-income consumers that they can focus their resources on a target audience that has high-incomes. One con is that demographic segmentation could turn up unprofitable target audiences. Geographic segmentation can be based on various locations like countries, states, provinces, or cities (UMGC Segmentation in Web Analysis, 2022). One pro is that it may be easier to have a defined group such as the whole city of Washington DC. A second pro is that a customer’s location influences their purchase decisions. One con may be figuring out how to optimize the customer experience for the different groups of people in different locations.
Psychographic segmentation can be based on personality and segments customers based on interests, attitudes, values, and lifestyles (Perceptive, 2018). One pro is that the marketing can be more personalized and may influence consumers on a deeper level. One con is that there are many different types of psychographics that could be used and each person could be influenced differently. Behavioral segmentation assesses purchase history and patterns and brand awareness. A pro is that this type of segmentation can lead to a more tailored marketing experience that will promote the best of the online merchandise for CompanyOne. A con is that it doesn’t look at who the consumers are as people so, it is more focused on which products/services to market based on purchase patterns. Needs-based segmentation focuses on ways that business can solve needs of consumers whether they are emotional or functional (Perceptive, 2018). A pro is that there is many benefits to the consumers as their needs would be well-defined and easier for the business to meet (Account Learning, 2022). One con is that it could be expensive to keep up with consumer needs and there is no guarantee that all needs can be met. Transactional segmentation looks at the frequency, monetary, and recency of spending habits (Perceptive, 2018). One pro is that it will identify who the most valuable consumers are that are spending the most. One con is that this segmentation would not create promotions catering to potential new consumers, only the existing ones. Ultimately, using several different types of market segmentation in google analytics can help CompanyOne to find the most profitable segments.