Internet Marketing: Strategies, Benefits, and Challenges Report

This report provides a comprehensive analysis of internet marketing within a business context. It begins by defining the role of internet marketing in modern marketing, emphasizing its importance in achieving business objectives and expanding market reach. The report explores the marketing mix, including product, price, promotion, and place, and how businesses like Asda and Amazon utilize these elements. It highlights the benefits to customers, such as price transparency, dynamic pricing, and responsive transactions. Furthermore, the report examines the benefits and opportunities for businesses, focusing on how internet marketing enhances the marketing mix components. It also discusses how internet marketing makes businesses more efficient and successful, along with the challenges of globalization. The report concludes with an evaluation of internet marketing's effectiveness in meeting customer needs, providing a detailed understanding of the strategies and impacts of internet marketing.

INTERNET MARKETING
IN BUSINESS

Table of Contents
INTRODUCTION ...............................................................................................................................3
TASK 1 ................................................................................................................................................3
P 1 Describe the role internet marketing has within a modern marketing context..........................3
P 2 Describe how selected organisations use internet marketing....................................................4
TASK 2 ................................................................................................................................................5
P 3 Explain the benefits to customers of a business using internet marketing................................5
TASK 3 ................................................................................................................................................6
P 4 Describe the benefits and opportunities to the business of using internet marketing within the
marketing mix of a selected business..............................................................................................6
P 5 Explain how internet marketing has made a selected business more efficient, effective and
successful.........................................................................................................................................7
P 6 Explain the challenges of globalisation facing a selected business when using the internet as
a marketing tool...............................................................................................................................8
TASK 4.................................................................................................................................................9
D 1 Evaluate the effectiveness of internet marketing in meeting customer needs for your selected
business............................................................................................................................................9
CONCLUSION .................................................................................................................................10
REFERENCE ....................................................................................................................................11

INTRODUCTION
Internet marketing can help businesses to acquire new customers, than only keep existing
ones. When the company using internet marketing for their businesses can build up a relation with
their customers and suppliers (Peppers, Rogers, 2013).
Internet marketing is beneficial for marketers as it is highly cost efficient and helps
marketers to achieve their marketing objectives by targeting their consumer segment. Internet
marketing, therefore, is about the using the internet in achieving marketing success rather than
being about the technology itself. As customers demand more from digital technologies, the
technologists themselves are integrating functions and making it easier for more customers to take
part (Chaston, and Mangles., 2013).
TASK 1
P 1 Describe the role internet marketing has within a modern marketing context
The role of internet marketing is to make profit for the business and to increase the market
coverage. By using the internet it introduces and aids the products and services to the internet. It
also helps in marketing a product and helps to reshape or alter what businesses can do. Businesses
that aim to make a profit intend to market their products through the internet, such as Asda as its a
very successful and effective way of increasing a businesses income, awareness and the number of
customers they receive (Mirchandani and Motwani., 2011). When using internet marketing it is
important to consider the marketing mix as this will really help to make the marketing strategies
effective.
The marketing mix is made out of 4 P's: Product, Price, Promotion and Place and it helps to
achieve the businesses marketing objectives and aims
The first P in the marketing mix is product which takes into consideration what the
product/service is, who its aimed at, what does the product/service do and what should it do.
The next P is price which looks at what price customers will pay for a specific
product/service, what price will attract specific customers, what price will create the best image for
the product/service and what will attract the change in price. There are different pricing strategies
that can be used to appropriately price a product or service;Penetration pricing is when a product or
service gets set a price to gain market foothold (Chong., 2014.).
Destruction pricing is when a product or service gets a price set to drive other competitors
out of the market, usually by pricing is cheaper.
Competitor pricing is when a product or service is priced based on their competition,
Skimming is when a product or service is set at a high price because it is a unique product or service

(Tornatzky and Klein, 2012).
The third P is place which focuses on the location to buy the product or service. It includes
looking at distribution and merchandising as this is important when locating a product or service.
Businesses that work in between manufacture and retailers are called intermediaries.
Lastly, the final P is promotion which is where businesses try to bring products or services to
the attention of the customers by doing promotional things such as offers, deals etc.
In the modern marketing world and the modern economy, they sell more services. Therefore,
the extended marketing mix was introduced which includes 3 more P's: People, Processes and
Physical evidence (Tornatzky and Fleischer., 2010).
The people side of this mix is at the centre of the service delivery. Processes look at the
activities and processes that customers take part in during a service. For example, banks have
attractive waiting rooms, they would look at how long do customers have to wait and do they have
forms in the waiting rooms (Ahn, Kim, Han, 2013).
As the internet is changing and expanding over time, Asda need to ensure that they keep up
with the changes in order to be different from their competitors and not fall behind. By doing this it
will reach their audience in the most effective way. This can happen in a few different ways:Market
penetration is when a business increases the market share by offering better services.
Market development is when a business enters a new market or increases the market share (Olsen
and Johnson., 2013).
P 2 Describe how selected organisations use internet marketing
Internet marketing Using by Asda's
Asda's use social media to advertise their business, one of the main sites they use is Twitter.
This is because it is extremely popular and people can tweet Asda to praise them or tell them any
problems they have had. A benefit of using Twitter is that if a customer praises them, they can
retweet the tweet and everyone that follows Asda will be able to see that praise on their page
however, if it is a negative tweet it will still be on the responders page however it will not show on
Twitters official page (Peppers, Rogers., 2013).
The Asda IPhone app allows customers to quickly purchase products and services through
their phone which is an effective and efficient way of shopping. Not all supermarkets have this
therefore Asda's stand out from some of their competitors. However, other supermarkets such as
M&S and Sainsbury's have connecting apps which are called 'Sainsbury's SmartShop' 'Cook With
M&S' or 'Sainsbury's Magazine' which are all apps that offer slightly different things to make them
unique and distinctive as the supermarket market is extremely competitive (Chong, 2014). They
also offer an IPad edition which offers a wider variety for people if they do not have an IPhone as

more of the older generation may have an IPad or a family IPad to do the shopping on which means
Asda's will reach a wider audience as they are offering a wider range of choice in which to purchase
their products and services.
Asda's use social media to advertise their business, one of the main sites they use is Twitter.
This is because it is extremely popular and people can tweet Asda to praise them or tell them any
problems they have had. A benefit of using Twitter is that if a customer praises them, they can
retweet the tweet and everyone that follows Asda will be able to see that praise on their page
however, if it is a negative tweet it will still be on the responders page however it will not show on
Twitters official page (Wang, Wang and Yang, 2010).
TASK 2
P 3 Explain the benefits to customers of a business using internet marketing
Amazon is a business which use Internet marketing very excessively and efficiently.
Internet marketing is extremely beneficial to Amazon as it allows them to compare and
select providers which mean Amazon can check their competitors website to compare their products
etc.
Price transparency:- which means both the customer and the business can see every price a
product is on a website because its available for everyone to see. This makes it easy for customers
to compare businesses against each other. Prices in a business are stored in a database and robots are
used to compare the prices. For example, Compare The Market works to find the cheapest car
insurance using its database to find the cheapest. Customers like this because it gives them more
bargaining power and allows them to get the cheapest price in one go without them having to search
hard on their own (Olsen and Johnson., 2013). By having internet market, which may make it not
valid. Also, the customers are able to check specifications and make contact with businesses easily
because of this.
Dynamic pricing:- it is a benefit for customers who shop using internet marketing because
this is when a price of a product or service changes due to e.g. seasonal changes, economic changes
etc. It enables online businesses to adjust prices quickly according to market conditions. For
example, when you book a flight, the seats are cheap at the beginning of a sale but the price
increase nearer to the time of the flight because fewer seats are available. This allows customers to
save money and time. Amazon use dynamic pricing when they offer different prices for clothing
items that are different sizes (Ahn, Kim ., Han., 2013).

Responsive transactions:- It is when customers get quick responses which allows Amazon to have
positive customer feedback. This allows good customer feedback because customers get satisfaction
e.g. knowing they have made a booking and receive evidence of doing this or if they have ordered a
product and they get an email verifying the delivery has been shipped (Peppers and Rogers, 2013).
TASK 3
P 4 Describe the benefits and opportunities to the business of using internet marketing within the
marketing mix of a selected business
Benefits and opportunities of Asda's internet marketing within the marketing mix.
Product
Asda's benefits:-Using internet marketing allows extra and additional product information
online so that customers can make an easier decision.
Asda's opportunities:-Being online allow Asda to display their products easier and
appealing, because in store there is always a risk of not having enough space, being too cluttered,
not having enough stock to fill the store etc (Chong, 2014).
Price
Asda's benefits:- Asda's have complete control over how they price their products, this
illustrates Asda's value as they depend on the products they choose.
Asda's opportunities:- Asda's offer the availability of food to buy immediately which is to
maximise their shelf life (Tornatzky and Fleischer, 2010).
Place
Asda's benefits:-Having internet marketing is essential now a days for businesses if they
want to be successful because mostly everyone is using the internet now which is how things get
spread almost instantly. Social media sites e.g. Twitter, Facebook, instagram are commonly used by
businesses to get people to be aware of their business (Olsen and Johnson., 2013).
Asda's opportunities:- The opportunities arise for Asda's fan base to get wider and reach a
greater field of more people.
Promotion
Asda's benefits:- Operating Asda's website is much cheaper than maintaining the physical
store because you have to pay for the up keeping of the physical store as well as various things such
as electricity, rent etc (Chaston, and Mangles 2013).
Asda's opportunities:-To get more promotion and advertising across their website, they
could use banners across the website to catch peoples attention.

People
Asda's benefits:-Being online means that they need less staff to run it which is saving Asda
money, which results in fewer employees being needed in the physical stores due to the increase in
online shopping because of Asda's website.
Asda's opportunities:-Setting up online chat rooms that are connected to Asda's website
would be super beneficial for Asda along with their customers because this allows customers to give
their feedback, opinion and general information about Asda as well as the company being able to
access this information and can improve their business based on the information received
(Tornatzky, and Fleischer, 2010).
Physical evidence
Asda's benefits:- On Asda's website, they have directions to each physical store they have
which helps people locate which store is nearest to them and makes it easier for people.
Asda's opportunities:- This is beneficial because it will save customers time as they can
just go directly to the location in the store where the product they want (Ahn, Kim, K., Han, 2013).
Processes
Asda's benefits:- Asda have a ordering system online for product stock which allows the
stock level to never go below a certain level.
Asda's opportunities:- New and quicker ways for delivery options and delivering should be
thought off.
P 5 Explain how internet marketing has made a selected business more efficient, effective and
successful
Internet marketing has helped to improve the efficiency and efficacy of Asda major. Asda's
has drastically changed because of internet marketing in many ways. I will be explaining the
various changes that have been made to Asda and whether they were successful or not.
Effective:- Using internet marketing is effective because it allows Asda's to not have to have
anymore stores which saves them a massive amount of money which can be put into the customer
service, quality of products, delivery etc. Being online reaches a wider and new audience because
they will be able to offer delivery for people who may not have been bale to access or travel to one
of the physical stores. Additionally, using internet marketing reduces the cost for staff because they
do not that many staff as the business will be half run online. This means that Asda's are saving
money because it takes a few seconds to communicate through electronic devices which saves time
and money for Asda's (Chaston, and Mangles, 2013).

Success:-As well as Asda using internet marketing to be efficient, its also made Asda
become the successful well-known business we know. This is due to multiple factors which I will be
explaining.
Asda are an extremely successful and well know business, which is due to multiple reasons.
One of the reasons is due to their efficient pricing, as they are consistently offering new deals and
offers on products to constantly entice customers on products that aren't selling so well as they
would like. Asda does this by using web analytic to look at what products most customers purchase
and what products are the most popular and which aren't selling at all (Chong, 2014). They then do
a appealing deal/offer on this product that they feel will entice customers.
Efficient:-Efficiency is the comparison of what is actually produced with what can be
achieved with the same consumption of resources such as; time, money etc. Asda's use their website
to promote their business as well as using our promotional methods like YouTube, banners,
websites, advertisements etc. This allows Asda to reach out to a wide audience in a short amount of
time. Efficiency has increased by using internet marketing because, Asda's can email or post
updates, information, deals etc to their customers which are filtered to pick the appropriate
customers (Tornatzky and Klein, 2012).
P 6 Explain the challenges of globalisation facing a selected business when using the internet as a
marketing tool
Globalisation Challenges by Asda's by using of internet marketing
This is the process of the world becoming interconnected as a result of massively increased
trade which the world is becoming increased the production of goods and services.
Meeting higher customer expectations:-There are various factors that Asda have to think
about though such as; secure payment, communication, quick delivery, competitive pricing etc.
Asda need to keep up with their competitors and keep on top of the other successful supermarkets
otherwise they will lose their customers to their competitors because it is a constantly changing
market (Olsen and Johnson., 2013). Customers are able to compare prices online which means Asda
have to ensure they beat their competitors prices otherwise customers will go elsewhere and get a
bad reputation.
Payment and Security methods:- This could be expensive to imply however, if Asda
wants to keep up with their competitors this is a good way because this will draw in a lot more
customers who are holding back to purchase online because of payment security. Over this, they
could plan security by using authorisation which is when Asda determines who has access to
application and information establishing a policy which is maintained (Ahn., Kim, Han, 2013).
Encryption is when data is changed into a hidden format which makes data unrecognisable unless

the person accessing it has a data key. This is done by using SSL (Secure Sockets Layer) and SET
(Secure Electronic Transactions). Passwords and logins should be applied in order to identify a
customer accusing the website from a hacker.
Market feedback and Managing overload of:- Being online means Asda receive a lot more
customer feedback than other businesses who don't use internet marketing. Feedback includes
things such as opinions, concerns, praises, reviews, questions etc. Asda can manage their feedback
by having a FAQ page on their website, which is frequently asked questions by customers to give
the most asked and most popular questions on one page to save customers from constantly asking
the same questions.One challenge that Asda face from being global, is that their website can have
information fatigue. It may not be 100% accurate and trustful all the time which is misleading to the
customers and Asda can get sued for providing inaccurate information and data (Peppers and
Rogers, 2013).
TASK 4
D 1 Evaluate the effectiveness of internet marketing in meeting customer needs for your selected
business
Comprehensive and Up to-date Product Information:- Comprehensive and up to date
information is details about products that are accurate and detailed. This helps to fully inform
customers about products before they buy. This is beneficial because customers that are fully
informed of the details of a product; may be more likely to purchase it. Here is an example of the
amount of information Asda offer for a smart TV on their website (Wang, Wang and Yang, 2010).
By having information on their website; it is widely accessible to large number of customers
at a time. This benefits Asda because it means customers don’t have to phone up Asda to get
information about products as there is comprehensive information on the website. This makes it
cheaper for Asda as they don’t have to employ as many staff for customer service. Comprehensive
information could also fully update the customer’s knowledge; this could influence buying
behaviour as there maybe information about the products that may catch their eye.
Customer service :-This is the assistance and advice provided by a company to those
people who buy or use its products or services. Asda have their customer service contact details at
the bottom of their website’s page, this means their customers can contact Asda 24/7 to report
issues/complaints as well as find out where their order is and complaints/calculations. Customers
also have the ability to write reviews for products and receive help for issues they have. Below are
some of Asda 's customers' positive reviews on Asda (Tornatzky, and Fleischer, 2010).
One of the benefits for customers is that they can ask questions during and after the time of

purchase and receive answers from Asda. The customer is then able to take time over understanding
key information rather then being pressured by an assistant a store or queues. This makes it more
convenient for customers and also eliminates travelling expenses as it is done over the internet or
over the phone. One of the benefits to customers of Asda because of the internet is they have the
ability to ask anything without embarrassment of asking assistant (fear of being laughed at through
lack of knowledge). This increases customer confidence and will perhaps make them want to
purchase as they are more informed (Olsen and Johnson., 2013).
CONCLUSION
In this report it is concluded that the internet also allows Asda's to update the knowledge of
their customers before they buy; this helps customers make more informed decisions before they
buy. Using social media allows Asda's to improve their credibility which is an advantage to them
because they can get reliable and crucial feedback which could affect their sales if they don't react
to it. Internet marketing helps to Asda's in terms of cost reduction, increasing the sale and customer
retention.

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