Digital Marketing Strategy for Google Merchandise Store

6434 words (26 pages) Business Assignment

23rd Oct 2020 Business Assignment Reference this

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DIGITAL MARKETING STRATEGY FOR GOOGLE MERCHANDISE STORE

Electronic transactions like e-commerce are a fresh phenomenon created in contemporary culture in this digital economy age. Due to the fast-technological growth, thanks to the use of smartphones, computers, and the internet, which offers information and data, individuals are given opportunities to pursue distinct operations more effectively and efficiently in their lives. Therefore, internet-based buying necessities are available in the modern era of today. “While customers do not directly satisfy companies when purchasing products in e-commerce transactions, they receive an intangible internet service” (Halim and Djumadi, 2018, p.94). Similar to other nations, Indonesia has had an effect on fast development in the digital economy.

Google Merchandise Store is an affiliate of the holding company, Google and an e-commerce business site that deals with marketing and selling of Google-branded merchandise as well as YouTube brands, Android branded apparel, Google merchandise brands such as stationaries, bags among other products. Google Merchandise Store has grown considerably with its estimated revenue as $2,031,670,000 with an e-commerce conversion rate of 0.15% as of September 2019 (Wickramasuriya and Marchiori, 2019). Increase in revenue in the Google Merchandise store has been a result of high trafficking which includes, organic searches, promotional offers, advertisement use of referrals among others.

Situation Analysis

Macro Environment

Digital marketing includes any marketing approach that entails the use of online and electronic means (Chaffey and Smith, 2017). Most businesses are controlled by digital channels where sellers connect with potential buyers. Digital marketing, therefore, has turned out to be a great business approach for organizations to plan for their businesses (Chaffey and Smith, 2017). To come up with a suitable strategic plan for a business, we may consider using a PESTEL and a SWOT analysis. Google Merchandise Store PESTEL analysis offers insights on the most important external factors present within the business’ macro-environment. The use of PESTEL analysis helps come up with facts on opportunities and threats likely to be experienced within the business and therefore helping the company to come up with the right strategic plan (Felix et al., 2017, pg.,119). For Google Merchandise Store to remain as one of the best online business platforms in the world, it has to address major threats present in its macro-environment.

Below is a PESTEL analysis of the Google Merchandise Store.

  • Political:

Political factors affecting the store have to do with government relations. There has been increased tension that appears to grow between China and the USA as a result of increased trade tension, diplomatic ill will, and theft of intellectual property that has caused a slowdown in businesses. On the other hand, the Asian government supports digital marketing at all cost and offers opportunities for small enterprises to advertise their businesses on the site.

Opportunities:

 

Globalization stands as an opportunity for Google Merchandise Store since it allows global expansion of markets for the site hence attracting more customers. It also leads to increased demand for online shopping.

Threat:

State-promoted online businesses are a major threat to Google Merchandise Store. These companies sponsored by states create competitions for the site leading to reduced traffic in Google Merchandise Store site hence reduced revenue. For example, where the Chinese government controls most big firms within China hence building competitiveness (Johnson et al, 2017).

  • Economic:

In such a time when the world is progressively changing from the traditional era to the digital era, Google Merchandise Store business is dependent on economic changes. External economic factors are likely to interfere with the market opportunities available for Google Merchandise Store business. For example, the US has strong economic growth that offers growth opportunities for e-commerce businesses. The US has the world’s largest economy (Johnson et al, 2017)

Opportunities: 

Economic stability in international markets is a great chance for Google Merchandise Store. Consumers are likely to consume more depending on their circumstances and the confidence they have put on the economic stance of a country (Mintel, 2018a).

Threat:

Political instability leads to poor economic growth. In areas such as the Asian countries where the economy tends to be slowly declining, consumers are less likely to purchase products from Google Merchandise Store.

  • Social:

External social factors affect how consumers respond to Google Merchandise Store products and advertisements. In a developed country such as the US, consumers tend to do their shopping online.

Opportunities:

It’s estimated that by the year 2020, the millennials spending power will have reached $ 1.4 trillion. Search Engine People research done in 2018 on how millennials utilize social media, shows that 80% of millennials’ daily activities revolve around social media. This, therefore, offers a great opportunity for Google Merchandise Store to market their products (Search Engine People 2018).

Threat: 

An increase in the use of social media may threaten e-commerce business in that it strengthens other online businesses such as Amazon and Facebook, who also happen to offer online advertising services. These other online businesses act as competitors for ready markets (Bekoglu, and Onayli, 2016, pg.,267) since they already have seamless integration where one can easily access their services on one platform without necessarily having to leave the site.

  • Technology

External technological factors of the Google Merchandise Store business have a great impact on the business Technological changes. may either be great opportunities or the main cause of a breakdown in a business. Google Merchandise Store is likely to experience significant opportunities from these factors.

 Opportunities:

The increasing internet access in developing countries, for example, in the UK (Mintel, 2018a) allows the developing markets to connect online and this, in turn, increases the advertising revenues for the e-commerce business.

Threat:

An increased on the technological changes requires the e-commerce business to be alert of changing market trends and creative and relevant.

  • Legal

In recent year, internet activities are linked to online transactions between buyers and vendors continue to grow. In addition, a new idea has appeared in our culture that it is becoming more convenient to buy products via the internet. On the other hand, the effect of fast development in technology creates more opportunities for Internet users to use more sophisticated and advanced instruments when committing cyber-crimes.

Opportunities:

  1. 1.Increased regulations on the use of internet and online privacy can allow Google Merchandise Store to exploit opportunities by improving its privacy measures to protect consumers.
  2. Increased regulations and rights placed on intellectual property may help the business to come up with innovative measures to protect intellectual property.

Threat:

  1. New GDPR rules set by the European government requires the business conform with EU rules of privacy.  In that case any business found to be against the rules ended up facing charges of up to 4% of global revenue (`Saura, et al., 2017, pg.,76).
  2. The law requires online users and network operations within china to store all the data in their country. For the foreign business to conform the law it has to incur an extra for the process (Saura, et al., 2017, pg., 76).
  • Environmental

Though Google Merchandise Store operates most of its businesses online, the site may be subjected to ecological factors. Ecological factors influence businesses’ strategic trends. On the other hand, products sold through the Google Merchandise Store are environmentally friendly. Google Merchandise Store partners with the UN environment in changing the environment through recycling (UN Environment, 2018).

Opportunities:

Improving the e-commerce business’s environmental impact creates more interest to the consumers. There are increased customer responses as a result of positive perceptions about the online marketing site.

Recommendations based on Google Merchandise Store PESTLE Analysis

The PESTEL analysis clearly shows that most factors in the e-commerce business provide an opportunity or the business to thrive. The site, therefore, should focus on exploiting the opportunities for the benefit of the business. Google Merchandise Store should focus more on innovation, to cope up with the rising technology and respond effectively to the changing markets. If opportunities identified on the PESTEL analysis are effectively addressed, Google Merchandise Store can be sure of having a stronger competitive ability and a greater influence in the industry.

Micro Analysis

Market Trends

Market trends analysis helps one to understand the previous and the current markets and central patterns of a market and its consumers. The main reason for conducting a trade market analysis for a business is to understand how they market their products, what their consumers prefer most and their external economic environment. Market trends form the basis on which plans on a business, its products, and its consumers are made (Felix et al., 2017, pg.,121) It is important to know when Google Merchandise Store was formed, its progress so far and plans. In Google Merchandise Store, we analyse the following areas:

●       Industrial trends – the store need to be aware of the changing trends in the industry, the lower-cost alternatives. These tend to be more economical and offer supplementary features that can help online businesses to gain an advantage over its competitors and attain higher objectives.

●       Industrial evolution – Google Merchandise Store should try and analyse trends within the marketing industry in terms of innovation, competitions and new services. This helps the business to be always ahead in its marketing strategies.

In China, e-commerce is on the front line as it’s growing faster than other markets in the world. The e-commerce market receives much of its support from the middle class who have abandoned the underdeveloped traditional stores. To fill the huge gap, online retailers such as Google Merchandise Store have highly invested in deliveries and e-payments. Consequently, online retail sales in China rose from 800 billion to 5.2 trillion between 2011 and 2016 (Johnson et al, 2017). Currently, retailers and consumers in China are in the process of breaking up remaining barriers limiting digital marketing and shopping.

Consumer

Consumer Centralistic marketing can be described as “the practice of collecting and implementing customer insights to boost marketing efficiency and better serve those customers who are the best prospects for the product” (Maney et al., 2002, p. 3).

Organizations concentrate on value creation by supplying consumers with the service or product they need (i.e. value perceived by the customer). Throughout CCM, a blend of technology-driven processes and human inputs enables this value creation. These build a transaction environment that allows customers to be the centre of the transaction, help him design the product features or choose the most appropriate level and type of service and remind them of new products important to them. (Paulin et al., 2000, p. 456)

The table (analytics.google.com, 2019) below shows some factors that influence the google merchandise customer:

(analytics.google.com, 2019)

The following assessment of consumers and internet client travels indicates why and how clients reach Google Merchandise Store and how the business can react to models of client behavior.

Examples of Buyer Personas (Google Merchandise Store)

Professional Alyssa Rinsky, 28 years old, single, Lives in New York City, Occupation: Interior designer, Needs: looking for eco-friendly designer products.
Entrepreneur Victoria (24), single, from Manchester, Occupation: Fashion Blogger and Small business owner, Needs: Designer products, stationeries for her small business.
Computer Geeks Anthony Esro, (21), Lives in: Bandung, Occupation: student, Needs: Collect any kind of merchandise as accordance with his hobby.

Online Customer Journey

Scenario Communication Objective Digital Marketing Response
Customer 1 is interested in environemntal-friendly designer products at an economical price. Her wish is to translate her passion for design in everything she comes across. She chooses to use Google Merchandise Store for her purchases by checking their link through chrome. Purchase Direct response

 

Received immediate response through online chat.

Customer 2 is a fashion blogger and a small business owner. She finds pleasure in using designer attires for her fashion posts. Her small business office also needs some environmental-friendly stationaries. Her search began on Facebook and later came to Google Merchandise Store after clicking on an ad. Purchase Direct response

 

Immediate feedback received through online comments.

Customer 3 is a computer geek that fanatic to every attribute and products that related to his hobby. He follow any new products that have been released. He is a returning visitor, and wants to buy new duffel bag that labelled youtube Purchase Direct response

 

Immediate feedback received through online interaction.

Competitors

Understanding the competitive forces and their underlying causes shows the origins of the present profitability of the industry, while offering a structure for anticipating and affecting competition (and profitability) over time.

On the other hand, many individuals comprehend only the structure of the five forces and their use in an unusually shallow manner. At best, this leads to assessment that is incomplete, incorrect and unhelpful. At worst, it can lead to misanalysis, bad decision-making, and catastrophic results from the organization.

Porter’s five forces model that applied is to analyse the external environment that have been surrounding with Google Merchandise Store:

●       Threat of Rivalry: The threat of rivalry is low since Google Merchandise is protect their exclusivity as a results there is no other places that sell google merchandises products other than google merchandise store.

●       Threat of Entry:  New industry are rising such as facebook company. This company also produce merchandises that can be bought through their own website which make it for easier for customer due to a lot of people are using facebook in their daily life.

●       Power of Supplier: The bargaining power of Google Merchandise store is high due to this company is the only supplier that sell Google, Youtube, Waze, products are from company name Brand Addition.

●       Power of buyer: The percentage of new customers and loyal customer are high. The majority of people engaging with this store is new customer in comparison with loyal or returning customers.

●       Threats of Substitute: Other local brand that sell similar products with the same marketing strategy and environmental-friendly campaign while they also offer more stylish design compare with google merchandise.

The large competitors of google merchandise store such as Microsoft Merchandise aim at producing more products than google.

Suppliers

Google Merchandise products are supplied by company name “Brand Addition”. This company Is a worldwide merchandise promotion company that works locally and worldwide with significant brands with a range of value-added services. Brand addition has the ability to supply ethical source promotional goods to assist promote local and global crisis brands. (Brand Addition.com,2019)

SWOT Analysis

SWOT analysis originates its name from the following phrases: strengths (S), weaknesses (W), possibilities (O), and threats (T). S and W are linked to inner variables, and O and T are interactions between the structure and an environment.

Nowadays, SWOT analysis applications are more closely linked to the interaction of the observed scheme and its environment and to the decision-making processes where the worldwide objective is established. SWOT is also used in circumstances where a choice needs to be made in a short time. (Srdjevic, Z., Bajcetic, R. and Srdjevic, B., 2012).

Below is a SWOT analysis of Google Merchandise Store.

 

 

Strengths

●       Google provides a platform for commercial clients such as Google Merchandise Store to advertise their products efficiently and to reach their desired consumers.

●       Google Merchandise Store controls over 90% of the e-commerce market in most EU

●       Google Merchandise Store remain among the top-most digital marketing platform, with Google dominating the search market.

●       Since Google is a big brand name, marketing Google branded products through Google Merchandise Store becomes easy (Wei, 2016, pg.,164). People are willing to associate themselves with Google and carry its name. Currently, it’s ranked as the third most valued brand from Apple and Amazon.

 

 

Opportunities

●       US has the fastest growing economy in the world. The strong economic growth in US offers growth opportunities for e-commerce businesses such as Google Merchandise Store. US strong economy has increased consumers’ confidence and power to purchase products (Johnson et al, 2017).

●       Industries and technology are progressively changing and new innovations are being made. The use of internet is increasing therefore offering an opportunity for digital marketing platforms.

●       Millennials are greatly influenced by technology (Search Engine People, 2018) and this offers a great opportunity for growth of Google Merchandise Store.

 

 

Weaknesses

●       Google Merchandise Store products awareness has not been highly spread in other countries especially in developing countries. It is more widespread in developed countries such as US.

●       Cost of products is quite high since they carry a big brand name. Adjustment of prices has not been fully considered within this site.

●       Countries such as China have failed to fully support the existent of foreign e-commerce in their country to avoid competition against Chinese online shops.

 

 

Threats

●        EU proposed rules are a major threat to e-commerce businesses. For a foreign business to conform with the law, it has to incur high cost investments to conform with the charges. This causes a major threat to e-commerce businesses (Saura, et al., 2017, pg.,76)

●        Increase in technological changes requires the e-commerce business to be vigilant of changing market trends and remain creative and relevant.

●        Misunderstandings arising between China and US cause a major threat to the store.

●        Increase in use of social media may be a threat to e-commerce business in that it strengthens other online businesses offering online advertising services. These other online businesses act as competitors for ready markets (Bekoglu, and Onayli, 2016, pg.,267).

Objectives

These are specific objectives intended to directly contribute to anticipated business goals (Chaffey and Bosomworth, 2012). They form the digital marketing foundation. Goals set should be specific, measurable, attainable, relevant, and time-based.

SMART Objective is a strategic that need to be applied by company to estimates and set a goal for long term (Heinze, A., Fletcher, G., Rashid, T. and Cruz, A. (2017). In order to have a SMART Objective, it required a scheme that have been form from a SWOT Analysis.

Google Merchandise Store should come up with a plan on which marketing tactics to use to achieve desired outcomes. For example, planning to invest in content marketing or social media marketing.

Here are some SMART objectives that the store should focus on to accomplish its short-term and long-term goals. They involve:

Objectives Strategy KPI’s
●       Online revenue contribution – the store should aim at achieving at least 10% revenue contribution within a period of 1-2 years. Increasing sales is the topmost objective of digital marketing (Heinze et al., 2016). ●       Online promotional activities such as campaigns created and running ads should relate to the store’s marketing objectives and at the same time be relevant to the targets (Tarabasz, 2016). For example, it’s easier for customer 2 to click on an add that automatically directs her to the store where she can easily purchase products. The store should aim at creating a more effective strategy that incorporates promotional tactics to achieve its objectives. The percentage of the online revenue contribution has achieved to 10% in 1-2years period of time.
●       Customer acquisition – the store should aim at acquiring at least 40,000 new customers every financial year. ●       Social media is the best tool for creating engagement within a business (Popovic, 2017). Increase promotion through social media by having influencer to introduce and promote the products. At least 40.000 new customer every financial year acquired by google merchandise store.
●       The store can come up with a measurable objective such as: 20% of our customers should be return visitors visiting within a year. ●       Sales and customer retention are crucial in maintaining the store’s long-term objectives. Knowledge on the number of returning visitors will help know how effective the business is on the basis of customer loyalty. Implement the discount coupon for loyal customers. In general, the number of returning visitor increased within a year.
●       Increasing traffic –The store should come up with an objective such as: the store should have at least 10,000 customers every month who have learnt of them through the business website. ●       Conduct PPC in google search engine to increase the traffic on the website, in addition to this, the store should include improving the store’s website rankings as well as creating quality links that direct customers to the website (Chaffey and Smith, 2017). Monthly increasement of traffic.
●       Reduced bounce rates – at least 80% of customers visiting this site should be able to complete their transactions of purchase. ●       Coming up with persons-specific content. Customers personas help inform the content to be created. This involves focusing on the persona’s interests such as technology or environment. Overall, the percentage of customer able to complete their purchasing transaction increased up to 80% as the results the bounced rate reduced.

Having done research in the field, outlining the target audience having meticulous detail is recommended by The Digital Marketing Institute (Feighery, 2012a). Moreover, developing personas will help businesses to identify key differentiators, helping such businesses to attain competitive advantage.

Personas Motivation Brand Perception and Channels
Alyssa Rinsky is an Interior designer and looking for eco-friendly designer products Wants easy access to purchase products Understands the needs and wants of the client.

 

Social media engagement (Facebook, Instagram)

Paid Advertising (Search Advertising).

Victoria is a Fashion Blogger and Small business owner, she requires designer products, stationeries for her small business. Wants easy and smooth way to purchase school supplies Social Media Engagement (Instagram and Facebook)
Anthony Esro is a student who collects any kind of merchandise as accordance with his hobby Want easy access to purchase merchandise Paid advertising

Tactics

The marketing mix is a selection of controllable marketing tools that an organization uses from its different target markets to generate the response it needs. It is all the university can do to control the market for the products it provides (

●       Products: The company should produce products that are different and creative with competitors. To attract customers, the company should deliver value-added products.

●       Price: Purchasing power are varied in every country and particularly the price are competitive among competitors. The reasonable and affordable price should be applied by the company to raise the number of buyers.

●       Place: Manage and promote business online with a purchasing system to assist users in purchasing products

●       Promotion: Several online platforms can be used to promote the company, including social media and Applying PPC in search engine.

●       People: IT to handle the majority of the business.

●       Process: Mainly addressed worldwide through one website having a pathway through the primary website (Google).

●       Physical Evidence: Google Merchandise store is basically an online company, however there is a physical outlet that is located on the head quarter in USA .

There are several objectives that can be implemented to accomplish tactically of Google Merchandise Store:

●       Social Media Marketing: Since the awareness of people about environmentally-friendly is higher nowadays, Google Merchandise Store should campaign in social media such as Instagram about natural and environmental-friendly products that used google merchandise store. As the results this might grab attention from people with the same perspective.

●       Native Advertising: Make use of top influencer to endorse google merchandise products to increase the brand awareness.

●       Paid Advertising: Applying PPC in search engine in order to achieve the target market. On the other hand there will be and additional cost of this advertising.

●       Email Marketing: In order to increase the returning customer, the company should use this marketing tactics by creating email blast to all google merchandise customers by information about new products or discounted products. In addition, implemented discount loyalty to returning customer.

Actions

Tactic Action Skills Owned by
Social Media Marketing Define Social media preference of having a campaign. PR and Marketing PR and Marketing
Define campaign as environmentally friendly. Editorial/PR and Marketing Editorial
Identify tools to promote such campaigns using instagram and Facebook. IT/ Design IT
Native Advertising Identify celebrities for endorsement PR and Marketing PR and Marketing
Define topics and ways to increase brand awareness through these celebrities PR and Design  
Create content through celebrities advertisement IT/Design IT
Paid Advertising Analyse objectives and targets to increase brand awareness and traffic to the website and implementing paid advertising in the correct manner. PPC Management PR and Marketing
Email Marketing Create a specific email for different customer persona Editorial/PR PR and Marketingr
Monitor engagement and open rate, helping to adjust the email tactic. PR and Marketing PR and Marketing

A 12-Weeks Digital Marketing Plan for Google Merchandise Store

A Gantt Chart

Risk Assessment

●       The use of social media allows customers to vote, refer, recommend, and comment on what they feel about the products or services. This can either be positive or negative. The transfer rate for this particular feedback to the rest of social media users is unlimited. Negative feedback has a negative impact on the business.

●       Brands like Google Merchandise Store should be more honest and transparent to their customers. Any attempts to ignore issues raised by customers, for example, products quality risks to the business potential.

●       Language is crucial in marketing. The store personnel should be able to speak the customer’s language and their communication style (Heinze et al., 2016) to avoid frustrations that come along with language use

Due to the risks being present with almost every digital marketing strategy, the identification is a fundamental aspect seen in the SOSTAC* model. The table below shows risks suggestions and a way to moderate them.

Risk Identification Probability (1 [low]–5 [high]] Impact (1 [low]–5 [high]] Assessment Management
Failure of apps to satisfy consumers 2 5 2*5=10 App feedback is essential to ensure the satisfaction of consumers are met.
Direct traffic not meeting target 2 3 2*3=6 Monitor frequently throughout the campaign. This will lead  to tactics being amended appropriately. Increase social media usage to promote brand awareness.
Online promotional campaign and activities get a negative response 3 3 3*3=9 Online promotional campaigns must undergo complete checkings in order to have a clear and positive message. This will decrease the level of negative responses.
Failure in the reduction of the Bounce Back Rate 3 3 3*3=9 Ensure that content’s readibility is adequate, reduce popups, and create a compelling Call-To-Action.

The table above shows the assessment of risk and majority indicates a medium level of risk. This is evident that the strategy is viable, however, the continuous monitoring is essential to remain successful.

References List

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