Report- Leon’s Restaurant

Impact of digital marketing on different stakeholders

Today, our society is driven by digital technology. The impact is such that there are places in the
world where the residents may not have clean water, but they own smartphones. Another incredible
influence on people’s lives, nowadays, is digital marketing. It affects people’s interactions, work,
purchases, and habits. Digital marketing plays an essential role in business transactions and politics
in UK. Entrepreneurs have utilized innovative technologies to reach and expand their market
segments. Digital marketing has enabled businesses to market and compete against other brands.
This is achieved by monitoring their competitions, engaging with their customers and suppliers,
developing their brands and saving time and other resources. The use of interactive media has
enabled multinational companies like LEON’S UK to connect with more customers to increase
their market size and profits. Comparably, digital marketing has enhanced UK democracy by
directly connecting the politicians with the people to update them about policies, development
programs, candidates and government's general performance. The use of interactive tools has
significantly assisted in predicting different election polls in UK, for instance, it helped determine
the party which won the majority of seats in the general election. This article aims to show how
digital marketing has enhanced the interaction of businesses and politicians with the UK people.
Many businesses don’t consider a digital change as a valuable movement for their business. They
are either scared of the up-and-coming challenges and costs that digital brings to the table or
convinced they don’t need any digital activity. Mostly because they are “generating enough
revenue”. First and foremost, there is never enough revenue. In most cases, the second reason is
the consequence of the first. Sean Taylor, an American Football player, said that nobody should
be scared of death. When that time comes, it comes. The similar situation is with digital
transformation, but the time has come with the Web 2.o in 2006. If your company doesn’t have
any digital activity now, you are behind several years. Although you are making money on a daily
basis, you are missing numerous opportunities outside your zone of comfort. Now is the time to
be responsible towards your employees, customers, and other stakeholder and take action. Choose
wisely with whom you are partnering – marketing is no longer about the stuff you make, but about
the stories, you tell (Seth Godin). If digital advertising is the pudding, then content creation is the
living proof of your company to your desired audience. In other words, if you don’t consider
various types of content, it isn’t possible to know which audience reacts the best to particular
content format. In this situation, we use the advantage of 1st and 3rd party data to differentiate the
possibilities of certain digital channels for the company, define which stakeholder group will
benefit the most from a particular digital channel, distinguish what type of content will persuade
the most each specific group in the chain, and adapt the advertising budget according to current
company’s strategic goals (i.e. generate leads, increase users’ engagement, strengthen retention
rate, extend the company’s partnership network, increase the distribution volume of the company’s
products).

Impact of Reputational Management on different stakeholders

Reputation Management. Reputation management should form an important part of any business.
After all, it would allow them to perceive the way clients sees them or thinks about the business.
It can be stated that reputation management is important for businesses that obtain and manage
their online reviews. The online world has expanded to become a powerful platform for consumers
to share and express their opinions. Taking this into consideration, consumers and users have now
a much bigger impact as they can influence the public perception of a business. Subsequently,
companies need to take an active approach in managing their reviews and reputation. The
reputation of a business is essential to its survival. The trust and confidence of the consumer can
have a direct and profound effect on a company's bottom line. In the past, businesses relied on
word of mouth by their stakeholders in order to establish, build and maintain their reputations.

The Impact of Reviews

In a digital era, people are overwhelmingly using the internet to search and research online. On a
daily basis, buying decisions are being made, while pre-purchase research is being done mostly
online. Reports and studies show that 9 out of 10 consumers conducted online research via search
engines before making a purchase.

More importantly, a large portion of that research comes from browsing reviews. Negative reviews
have become quite powerful in undermining a business’ reputation, leading to consequences:

Lowered search engine ranking: The star rating on major review websites has an immediate
impact on consumer perception. As a result, search engines will also rank your business based off
of review ratings.
Reputational risk: Negative reviews cause potential customers to trust a business less.

Hard to fix: Having an abundance of negative reviews makes it difficult to regain trust and
rebrand.

On the other hand, positive reviews provide a business with a positive reinforcement loop:

Improve reputation: Consumers will trust your company over lower rated competitors. Positive
feedback from past customers increases the likelihood of a prospect to choose your company.

Higher ranking: Google, for example, wants to offer its users the best solution to their needs.
Positive reviews will signal to Google that your company is best suited for a particular user query.

Easy to maintain: It’s cheaper to manage and maintain a positive online reputation than it is to
repair a negative one or go through a rebranding process.

Overall negative reviews can have a significant impact on a business. Online reputation
management is becoming essential in every company’s management toolbox.

In a world governed by the internet, online reviews are bound to drive customers towards or away
from a brand. Placing customer satisfaction at the top of the priority list for your business can only
help your company’s sales and profitability.

Online reviews are a natural way for consumers to relay their experience with your brand. It’s vital
to your business that you monitor and manage positive and negative reviews. It’s the best way to
leverage their effectiveness and ensure your brand is accurately represented.
Reference:

Gianfranco Walsh, Keith Dinnie, Klaus‐Peter Wiedmann, (2006) "How do corporate reputation
and customer satisfaction impact customer defection? A study of private energy customers in
Germany", Journal of Services Marketing, Vol. 20 Issue: 6, pp.412-420,

Morgan P Miles, Jeffrey G Covin (2000), Journal of Business Ethics; 23, 3; ABI/INFORM Global
pg. 29

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