MARKETING IN A DIGITAL WORLD 2022
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, Marketing in a Digital World 2022
Executive summary
Marketing in the digital era has emerged as a source of marketing opportunities in the retail
sector. It has also posed challenges to Marketers. In this study, the marketing challenges in the
digital era faced by Tesco are presented with an emphasis on its marketing practices within the
Asia Pacific region. The organization is a leading UK retailer with its operations in diverse
countries across the globe. Wit emergence of digital marketing, the company is still finding
challenges in deciding the right mix of resource allocations for the traditional marketing and
digital market. Some of the challenges it is facing in the marketing process include competition.
Due to globalization, foreign firms can reach local customers online. The firms are faced with
fast-changing digital marketing platforms and the need to enhance their online customer
interface. The organization has resulted in integrated marketing communication, adopting a mix
of traditional and digital marketing to address these challenges. It has adopted online customer
relationships and big data analytics applications. These applications help the organization assess
customer trends and needs and devise methods of meeting them. The use of social media has also
enhanced the company’s digital communication efforts, enhancing its success in the global retail
market.
Introduction
Tesco is a leading UK based retail company. It operates in diverse countries including the
United Kingdom of Britain and many other parts of Europe as well as in the Asia Pacific
including Hong Kong and India. It has more than 6800 shops across the globe. In its operations,
it generated close to 64 billion pounds in revenues (Tesco 2020b, p.37). Its Hong Kong
subsidiary is U Select (U select 2020, p.1). In the contemporary retail industry, there has been an
increase in the use of digital media in marketing communication (German, Lilien. & Kraus,
, Marketing in a Digital World 2022
2015, p.45). While this approach to communication enables such organizations to reach a high
number of customers across the globe, it also exposes the organization to diverse marketing
challenges. There is a still o whether the digital or traditional marketing communication is the
best or whether both methods of marketing communication should be integrated (Mason, &
Knights, 2019, p.454). A critical assessment of the challenges that are faced by the marketing
unit in the organization in the current digital era is presented. Equally, the transformations that
Tesco has undertaken in response to these technological and social changes in its marketing
environment is presented.
1. Challenges faced by those in marketing in the digital era
There are various challenges that those in the marketing department are facing in Tesco. These
challenges are as summarized below
Competition
The emergence of digital marketing has resulted in the exposure of local organizations to
competition from firms in distant locations. The organizations have to deal with the challenge of
new online products sources on the online platform. Unlike in the past where organizations
dominated particular geographical locations, contemporary retailers do not have to establish a
physical location in the regions they operate. They can reach customers and distribute the
products on the online platform (Miziki, 2020, p.3).
Cultural complexity