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MARKETING IN A DIGITAL WORLD 2022

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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, 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

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Marketing in a Digital World 2022




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

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