Opportunities and Challenges of Digital Marketing in the Macro Environment

Opportunities and Challenges of Digital Marketing in the Macro Environment

To its economic environment, the H &M is a multinational clothing brand company that is not alone. A full context influences it. This background is known as the macro environment. It is made up of all the forces that drive incentives, and also present challenges to the firm. The Macro environment is composed of six various elements, which are environment, financial, political, legal, socio-cultural, and technological. The following context discusses these forces based on Hennes & Mauritz clothing brand company

Political

The political factors that influence marketing include foreign trade policies, tax policies, labor laws. With all systems being well strategies by the government to boost and improve marketing, with the adoption of this policy by Hennes &Mauritz will be of significance as will be protected to perform digital marketing of the product and services. Unlike past political factors that could not offer better protection, which could make it hard for the company to involve in marketing, tax policies were harsh to marketing. Not only H&M company require these protections, but many companies in the world impress such factors to see their growth advancing.

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Economic

It estimates that the digital online marketing for goods and services in Europe could add up to 400billions pounds per year, which is a clear signal for Hennes and Mauritz company to adopt digital marketing to boost the revenue income for the organization. The earlier economic factor could not boost marketing to generate such an immense profit for the company. as these economic factors have a positive impact on business growth many companies in the world adopt these factors to boost their income revenue

Technological

The advancement in technology has impact in digital marketing, it influences the behavior of the customers in most instance, in that more of the customers will order or purchase their product and services through available online systems rather than manual methods, it is so crucial for Hennes & Mauritz company to adopt online marketing as most consumers perform their transaction online, thus attract more customers to organize and help to create a good brand for organization generating more income for themselves. Most companies in the world impress these technological factors as they try to boost their digital marketing. The earlier technological advancement was so much sophisticated compared to current technology, thus could make digital marketing a strenuous activity because of tools used.

Environment

Through the adoption of digital marketing by Hennes & Mauritz company, it will change the manner in the company will communicate with the client across the world, which gives rise to new business models. Unlike the earlier environment, which could offer much space of interaction between customers and the company around the globe. These environmental factors do not only focus on H&M company but several companies which impress digital marketing

Social

When Hennes & Mauritz company takes advantage of these social media tools, it will be a great opportunity as statistics show that, there is indeed a massive increase in the number of customers who use social media to find the clothes they require instead of manually looking for them on offline stores, this will boost the organization income as it will attract more customers. Social factors during the earlier growth were not impressed and adopted by the company, which could make digital marketing a tedious activity compared to currently. These issues not only had an impact on H&M Company but many organizations in the world.

Legal

There are also statutory regulations that can impact marketing, depending on how the H & M adopts them. These regulations govern how marketing is done; in most situations, these regulations control what is to be advertised by most organizations such as the H & M (Chaffey & Ellis-Chadwick, 2019). The adoption or selection of the kind of clothes to boost with Hennes & Mauritz company will have impact to brand, in most organization we consider age by ensuring that they are advertising does have moral issue it will give them a better brand and certification enabling them to penetrate freely in digital marketing as their products are to the standards required. The earlier legal factors were so strict to the companies, especially Hennes and Mauritz, which made the growth of brand a tiresome activity as there so many rules imposed on the company.

Strengths

These are things that an organization can do it correctly or distinguishes it from other organization. With the adoption of digital marketing, Hennes & Mauritz company will get a good brand as it will attract many customers online, by changing their marketing strategies to digital.

Weaknesses

The H&M Company has got a gap in the process of trying to implement digital marketing as it is resource costly; this can be a problem for the company.

Opportunities

With the adoption of online marketing, it creates a better chance of attracting more clients to H & M products.

Threats

Some factors can be a threat to the business; although H&M can adopt digital marketing, the shift in market requirement can be a threat to the existence and marketing of the H&M company.

Challenges

All these factors influencing digital marketing can also post a lot of problems to the organization which can be hazards, for instance in the adoption of 5G services to the organization can drain the organization resources as it is costly to adopt and maintain. It requires a lot of capital to see its existence.

The legal regulations, on the other hand, can have a lot of problems if the marketing regulations are not adopted carefully by the organization in that in case of any issues on the morality of the product advertised, the brand of the company can easily be damaged by regulating bodies. The advancement in technology can be a treat to the organization as it can open routes for the stiff competition of the organization products or confidentiality of customer information, who accesses organization resources online if the right measures to safeguard this information have adhered.

References

Chaffey, D., & Ellis-Chadwick, F. (2019). Digital marketing. Pearson UK.

Tiago, M. T. P. M. B., & Veríssimo, J. M. C. (2014). Digital marketing and social media: