This report discusses the role of internet marketing in business success, focusing on the benefits to customers and opportunities for the business. It also analyzes the effectiveness of internet marketing in meeting customer needs. The case study of Tesco PLC is used to illustrate these concepts.
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TABLE OF CONTENTS INTRODUCTION.....................................................................................................................................1 P1. ROLE OF INTERNET MARKETING.............................................................................................1 P2. USE OF INTERNET MARKETING BY ORGANIZATION.........................................................2 P3 BENEFITS TO CUSTOMERS OF BUSINESS USING INTERNET MARKETING....................2 M1 ANALYSIS OF BENEFITS OF INTERNET MARKETING.........................................................3 P4. BENEFITS AND OPPORTUNITIES TO THE BUSINESS............................................................3 P5. INTERNET MARKETING APPLICATION ON BUSINESS SUCCESS......................................4 P6 AND M2 ANALYSIS OF MARKETING OPPORTUNITIES AND CHALLENGES...................4 D1. EFFECTIVENESS OF INTERNET MARKETING IN MEETING CUSTOMER NEEDS........5 CONCLUSION..........................................................................................................................................5 REFERENCES..........................................................................................................................................6 INTRODUCTION Internet marketing is way of advertising and putting marketing effort through proper use of web, email to have direct increase in sale. It can also be said that it is marketing effort that put to have increase in sale via electronic commerce. It diversified in web marketing, email and social media marketing. In addition to this, report is all about understanding how the companies are using internet and its techniques for the promotion of their products. It will also discuss how company can make this medium more effective using various other techniques and elements. Tesco Plc is being considered as a organisation in order to have better understanding about the subject. P1. ROLE OF INTERNET MARKETING The internet marketing introduces the products and services online. Businesses that aim for profit intend to market their products through the internet because it’s a helpful way of increasingthebusiness’sprofit,sellsandalsoincreasesthenumberoftheircustomers. Marketing in the business world is about finding out what customers want and expect from the business, therefore it is important to provide the best and easiest way to operate the business.
Internet is a quick way for the business to connect with its customers(Bandyopadhyay, 2011). Businesses tend to go online because they can easily promote their business into the global level, which is an inexpensive way. Internet marketing can also help the business achieve its smart objectives, for example increase online sales by 15% by the end of 2010 or increase customer maintenances by 20%. The SMART objectives are specific as it gives full information on what the business needs to do in order to achieve its objectives. It is also measurable to see whether the business is achieving the objective successfully or not. Smart objectives can also be timely, realistic and achievable. Many things nowadays are used to be done in the physical world are now done online nowadays. For example, taking a loan from bank, searching property, shopping online, and even nowadays people are finding their life partner online via dating app orwebsite. Which allows people to work at their own home and they don’t need to go out, which gives more facilities to customers, Marketing is widely produced and developed online very much nowadays(Edward, 2010). The reason of this is because so many people are using internet now that it would be a hugely missed opportunities if people didn’t uses the internet or marketing (Emerald, 2003). Internet is the fastest growing communications method and it’s currently available to over a million upon millions of people around the worldwide. The internet is used with many ways example, advertising banners, videos advertising, and even the pop ups are the common advertising methods is being done through internet marketing. And the companies are using better ways to advertise e.g. using most popular websites to advertise their service or product. P2. USE OF INTERNET MARKETING BY ORGANIZATION Tesco PLC is a multinational grocery and general merchandise retailer headquartered in Cheshunt, Hertfordshire, England, United Kingdom. ¡t is the third largest retailer in the world measured by profits and second-largest retailer in the world measured by revenues. It has stores in 12 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), the Republic of Ireland, Malaysia, and Thailand. Internet marketing provides a wider customer base as new customers can come across the website threw internet ads and much more. 24/7 shopping online allows Tesco to generate constant cash threw out the whole day. There are many reasons why 24/7 shopping online is very useful(Halal, 2003). One reason is that it allows
customers who don’t want to leave the house for reasons such as disability or simply not wanting to go out there house. Another reasons why 24/7 shopping is promoted is that it allows better value to customer interaction. P3BENEFITSTOCUSTOMERSOFBUSINESSUSINGINTERNET MARKETING Convenience & Easiness For many people in the world, e-Commerce becomes one of the preferred ways of shopping as they enjoy their online because of its easiness and convenience. They are allowed to buy products or services from their home at any time of day or night. Offer Product Data sheets Consumers can also get description and details from an online product catalog. For your customers, it is very much important to get information about the product no matter whether the time of day and day of the week. Through information, your customers and prospects are making decision to purchase your products or not(Lowley, 2000). Comprise Warranty Information No matter whether you are looking to choose including warranty information with product descriptions and data sheets or providing it from within an e commerce shopping cart, you need to make sure that customers must be aware of important terms and conditions that are associated with their purchase. Decreasing cost of inventory Management With e-commerce business, the suppliers can decrease the cost of managing their inventoryofgoodsthattheycanautomatetheinventorymanagementusingweb-based management system. Indirectly, they can save their operational costs. M1 ANALYSIS OF BENEFITS OF INTERNET MARKETING Online retailing is growing at an astonishing rate, withonline salesnow accounting for around one quarter of the total retail market. Retailers who ignore e-commerce may see their trade lessening as customers continue to shift to ordering products online. However you need to think carefully and weigh all the advantages. The best thing about it is buying options that are quick, convenient and user-friendly with the ability to transfer funds online. Because of its convenience, consumers can save their lots of time as well as money by searching their products
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easily and making purchasing online(MacLeod, 2000).For effective business transactions, e- commerce is an efficient and competence method. Setting-up cost is extremely low as compare to expanding your business with more brick and mortar locations. Very few licenses and permits are required to start-up an online business than physical store. You can save your lots of money by using fewer employees to perform operations like billing customers, managing inventory and more. P4. BENEFITS AND OPPORTUNITIES TO THE BUSINESS Mass Customization is the process of delivering wide-market goods and services that are modified to satisfy a specific customer’s need. Mass customization is a method that enables flexibility and personalization for customers. An advantage of Tesco Mass Customization is that customers will be more satisfied as they will be able to purchase the products that they want, tailored to them. For example there are more products online that there will be offline (retail or store). Therefore, customers are more likely to go to the Tesco website then the Tesco store can gain more customer retention. Mass production can give a business opportunity, such as increasing customers. As if products are being tailored to them and there is more choice, they are likely to return to the business to purchase other products. This will therefore increase sales and revenue. Secondly another factor is that an important benefit to internet marketing is advertising. Tesco is gaining many opportunities advertising because as we all know advertisement if done well automatically increases the sales for the company. This leads to the company producing more of the product because they know its selling well. With Tesco they’ve been around so long, advertising doesn’t have to be dramatic. The advantage of Tesco doing advertising is that it informs the customer about new products, improves the sale of a product and it is a direct communication with the customer. P5. INTERNET MARKETING APPLICATION ON BUSINESS SUCCESS A level of performance that describes a process that uses the lowest amount of inputs to create the greatest amount of outputs. Efficiency relates to the use of all inputs in producing any givenoutput,includingpersonaltimeandenergy.Efficiencyin,businessterms,isthe comparison of what is actually produced with what can be achieved with the same consumption of resources such as money, time, etc. The company Tesco create new business opportunities through the use of promotions on websites, search engines and links. This helps the business
reach out to millions of people in a short period of time and the results are instantly measurable. It also captures stores and integrates its consumers’ data easily. Tesco has increased efficiency because there able to reach out to customers about opportunities for sales of existing customers. As they give new information and updates to the customers via email or Post to increase opportunities for sales from existing customers as they give customers new information or their new update to the existing consumers via email or post. This has increased opportunities for sales as they are being informed well and quickly (Rowley, 2002). This organisation has increased efficiency by using electronic communications to reduce staff costs as it requires only few seconds to communicate through electronic media because it supports quick transmission and it saves time and money In addition, electronic media allows the business managers to easily control operation across the globe. P6ANDM2ANALYSISOFMARKETINGOPPORTUNITIESAND CHALLENGES For a business to convert leads into sales they need to attract customers and make sure that they buy something from them. Tesco can measure how many people have visited their website but cannot find out how many people have actually purchased from them. It is important that a business knows what target audience they are aiming their products at. Once they know this they need to decide what content they should have on their website to keep their target audience attracted. It is important that they provide products which are different from their competitors so they keep ahead of their competition. D1.EFFECTIVENESSOFINTERNETMARKETINGINMEETING CUSTOMER NEEDS When meeting the customer’s needs online Tesco has been able to purchase a variety of products and services through the online business. Customers can pay online by putting in their bank number and then purchasing the products. With PayPal this makes sure the business is a safer and secure way for customers to give Tesco the money that they have purchased. In addition to this, the benefits of using PayPal for online customers is that it detects crime and it guarantees that the customers have confidence to transfer the money to the business. So therefore, this proves that PayPal has 100% protection from illegal payments and for customers who have purchased the items online on the Tesco Outlet website (Rowley, 2002). Also because
of internet marketing, customers don’t have to wait in line or borrow the money from the bank. Experts believe that the PayPal payment method is a better way to transfer the payment money to the organisation. Therefore it can save each customer’s valuable time. Since Tesco is a globalized business they also collect debit card payments from customers around the world. So the main benefit of the payment security for Tesco is that PayPal guarantees safety and uses a quicker method to pay the expenses for each customer’s delivery service. CONCLUSION On the basis of the research report, it can be concluded that Internet marketing and use of social and digital media marketing tools are beneficial for the Tesco in terms of increasing customer’s base and profit margin. By using e-CRM and PPC marketing plan, company can draw more customers towards brands and implement their sales promotion activities in a proper way. By using these techniques, firm can maintain history of future or repeated sales so that better services would be offered to its customer at right time at right price.
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