Tag: Mark Ritson

Why are all companies going digital? Are traditional marketing methods dead?

Why are all companies trying to employ digital techniques? The answer is quite simple actually, digital marketers think that social media outlets such as Facebook, Instagram and Twitter are the way to market for all businesses due to the apparent high reach and great connection they can make with consumers. However, this is misleading. Mark Ritson a Professor at Melbourne Business School explained at Mumbrella360, that eight of the largest consumer brands in Australia cannot even get their customers to connect with them on these social media outlets.

https://www.bluecorona.com/blog/execute-digital-marketing-strategy-2017

Woolworths currently sits second within the largest group of consumer brands. Statistics highlight that of the existing 14 million customers that only 6% of consumers have ever interacted with the brand on Facebook by liking or commenting on a post. Whilst this statistic is alarming, Instagram and twitter are receiving even lower interaction falling below 1%. 

As of March 19 2019, Woolworths have identified an issue concerning the engagement between the brand and its customers. Woolworths plans to launch a stand-alone media business with the intention of connecting its supplier partners directly with the customer, dubbed Cartology. This new division within the brand targets new and existing customers and aims to commercialise its media operations by giving the suppliers the ability to better engage with shoppers on a media platform. Cartology will focus on delivering more timely offers and content to its consumers. Woolworths CEO Brad Banducci states “Cartology has been established to provide a more streamlined approach for suppliers to better communicate to customers via our in-store, digital and other media assets,”

Whilst Woolworths has taken this initiative, other businesses should review their past strategy similar to Woolworths, and identify what their approach and goals are before they decide on how to tactic to use to interact with customers. Companies should consider the use of traditional media strategies as these pose numerous benefits. Statistics conducted by Nielson, indicate that traditional media, Television and Radio are more trusted by consumers than digital media outlets. Television is still the most used vehicle to watch any type of video in the world so why wouldn’t companies use it. These traditional media outlets are still viable and provide great options for businesses to interact with customers. Businesses need to consider both digital and traditional marketing methods to select the best alternative for their business to reach and interact with their existing and potential clientele.

https://www.nielsen.com/us/en/insights/news/2015/digital-formats-are-among-the-most-trusted-advertising-sources-despite-slow-growth.html