European digital marketing management trends

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European digital marketing management trends

I. A. Zlatova

The article describes the trends of e-commerce of the Europe, built on the results of monitoring of websites of following countries: Germany, France, Italy, Spain, Sweden, Belgium, Finland, Denmark, Hungary, Switzerland, Bulgaria, Poland, Great Britain, Austria, Czech Republic, Portugal, Greece, Netherlands. It contains the results of monitoring of the most popular internet shops, accumulating the most often used methods of payment and delivery, competitive advantages, that are used in Europe. According to the most spread competitive advantages the map of consumer sensitivity was built. The article can be useful for Ukrainian enterprises, entering the European market in the form of internet shop or using instruments of digital marketing management.

Keywords: digital marketing, e-commerce of Europe, payment methods, delivery methods, marketing management.

У статті розглянуті тенденції розвитку електронної комерції в Європі за результатами моніторингу сайтів наступних країн: Німеччини, Франції, Італії, Іспанії, Швеції, Бельгії, Фінляндії, Данії, Угорщини, Швейцарії, Болгарії, Польщі, Великобританії, Австрії, Чехії, Португалії, Греції, Нідерландів. Стаття міститьрезультатимоніторингунайбільшпопулярнихінтернет-магазинів, аналізу популярних методів оплати і доставки, конкурентних переваг, які використовуються в Європі. Відповідно до найбільш поширених конкурентних переваг булла побудована карта чутливості споживача. Статтяможе бути корисна для українських підприємств, що розглядають розширення бізнесу за рахунок європейського ринку у вигляді інтернет-магазину або за допомогою інструментів цифрового маркетингу.

Ключові слова: цифровий маркетинг, електронна комерція Європи, способи оплати, способи доставки, маркетинговий менеджмент.

Setting the problem

Often digital marketing is associated with digital promotion tools, without considering all other elements of marketing mix: product, price and place. But the conversion rate of the project depends on the digital product, it's benefits, usability and competitiveness. Understanding of product in digital marketing includes not only physical items, but digital platform, that attract consumers and collect traffic.

The analysis of recent research and publications

Development of digital marketing included several stages:

1. Display advertising;

2. Search engine optimization;

3. Paid search;

4. Web Analytics and cookie;

5. Sharing and social media;

6. Mobile marketing;

7. E-mail marketing. [1]

These stages are digital marketing instruments at the same time. Different companies used only some of them, but big companies use them in complex. The most actual problem is choosing from wide range of digital marketing instruments and combining them into holistic effective complex of digital marketing. So modern stage of digital marketing development may be called the stage of digital marketing management or project management.

Europe - one of the largest e-commerce markets in the world. It became the platform of global e-commerce development. A lot of researches are focused on discovering which channels marketers rated as delivering the greatest ROI, this being the most critical metric for most marketing departments, and key to justifying further spend. Email marketing performed the best, with 76% saying it delivered medium to high cost effectiveness. Similar to last years survey, email was followed by SEO as the next most cost effective technique (72%). Interestingly, whilst AdWords came third in our survey last year, it has slipped to being the fourth most effective channel, as organic social media has risen to be perceived as moderately to highly effective by 68% of marketers. [5] E-commerce is about 2.2% of total European GDP, which provides 645,000 retail sites through the implementation of 3.7 billion transactions each year, creating about 2 million new jobs for Europeans. [2]

For marketers in Ukraine main difficulty in dealing with the European market is the legal framework. The complexity in terms of learning the e-commerce legislation, but at the same time the reason why the Ukrainian marketers are so popular in the West. Loyal tax environment in Ukraine and the low salaries of highly skilled marketers increase the interest from the side of some of European companies, which see benefits in the Ukrainian outsourcing.

Many sources claim that the European market is in a state of stagnation that all the market niches are occupied. Therefore, the growth of the company's performance in the European market often is possible using highly performance competitive advantages and the growth is possible because of competitors' recession.

Setting the objective

Managing digital budgets, marketers must consider the efficiency of any of them. The efficiency of digital promotion depends on the level of development of the project, it's competitive benefits, that determine the conversion rate of each of the digital channels. European e-commerce is one of the most developed areas of digital marketing, so it became the objective of these research to predict the factors of growth and development of e-commerce in Ukraine.

The main material of research

Europe has an annual turnover of 363.1 billion euros at the amount of population 816 million inhabitants. Of these, 565 million people use the Internet and 32% of the population are considered to be active online consumers who spend an average of € 1,376 per year for online shopping. Britain, France and Germany are leading European e-commerce. In 2015, they accounted for over 60% of all the transactions online in Eurasia. With a turnover of 157.1 billion euros, the UK leads on indicators on e-commerce B2C market, but in terms of the number of online shoppers, leading Germany - 51.6 million customers in the Internet, compared with 43.4 million customers in the UK. [3]

Let's consider the difficulties, that could face each company entering the European market.

High level of competition. A large number of online stores and free trade between countries of the European Union have led to strengthening the position of e-shops in terms of price and non-price competitiveness. Consider the most popular competitive advantage in Europe:

1. Low price. Depending on the average level of income in the country varies the sensitivity of Internet users to the price. (Image 1)

Image 1. The percentage of users who prefer the lowest price levels [3]

2. Delivery speed. The speed of delivery for Europe varies depending on the product, the availability of warehouse space at the company, the country's specific of geographical location. Europeans are willing to wait ordered goods, contrary to stereotypes, from 1-2 days to 1-2 weeks. (Image 2)

monitoring online store competitive

Image 2. The percentage of users who prefer websites with a faster delivery [3]

3. Secure payment and item return policy. For the Europeans is very important guarantee of security. Therefore, they always pay attention to the conditions of return of the goods if he does not like them or will not meet the expectations. The minimum term of return of goods is 14 days. Sometimes companies offer free goods return option within 30 days or more as a competitive advantage. Also popular service Safe order. This service is provided to users for a fee (3-6 euros) and makes it possible to return the product and get your money within 90-200 days. (Image 3)

Image 3. The percentage of people who are guided by conditions of return and exchange of goods during purchase [3]

The security of payment and shopping as a whole is considered one of the most important features to make a decision of a purchase. So that the main part of online shops prefer to get an independent certificates of secure shopping.

According to the sensitivity of the user to the price, terms of delivery and return of goods policy a map of users' sensitivity to the benefits of an online store was built.

Image 4. Map of consumer sensitivity

It indirectly indicates the level of competition in the field of e-commerce.

The most demanding in terms of Internet shopping are buyers from Italy and Poland, the least demanding - the inhabitants of Norway, Sweden and Denmark.

The next specific character of European e-commerce is a variety of payment and delivery methods. Online shops of European countries were checked to determine the most spread methods of payment and delivery. Sufficient difficulty in the course of development of markets is a variety of payment methods and shipping.

Table 1 lists the most popular payment methods in European countries.

Table 1.

Payment methods that support online shopping in Europe

Conclusions and further research

Digital marketing management is strongly connected with project management. Knowledge of project, understanding the digital product, wide range of shipment and payment methods are key factors of growing conversion rates. Further research of consumer demand must be connected with the research of independent certification of online shops and the influence of trusted icons on the conversion rate.

Literature

1. Avantika Monnappa, The history and evolution of Digital Marketing, [Online], available at: https://www.simplilearn.com/history-and-evolution-of-digital-marketing-article (Accessed 8 Jan 2017).

2. Chris Leone, HowMuchShouldYouBudgetForMarketingIn 2017? [Online], available at: http://www.webstrategiesinc.com/blog/how-much-budget-for-online-marketing-in-2014 (Accessed 8 Jan 2017).

3. Ecommerce Europe Infographics, [Online], available at: http://www.ecommerce-europe.eu/research/infographics/ (Accessed 8 Jan 2017).

4. E-commerce in Europe 2015, [Online], available at: http://www.postnord.com/globalassets/global/english/document/publications/2015/en_e-commerce_in_europe_20150902.pdf (Accessed 8 Jan 2017).

5. ManagingDigitalMarketing 2016, [Online], available at: http://bahardigital.ir/wp-content/uploads/2016/05/managing-digital-marketing-smart-insights.pdf(Accessed 8 Jan 2017).

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