The report discusses the advantages of using e-commerce websites for product purchases, highlighting the benefits of convenience, time-saving, and effort reduction. It also touches on the importance of website design being user-friendly and suitable for various target markets.
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Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1 1.........................................................................................................................................1 P1 Role of internet marketing:....................................................................................................1 P2 Use of internet marketing.......................................................................................................2 TASK 2............................................................................................................................................4 P3 Benefits to customers.............................................................................................................4 TASK 3............................................................................................................................................5 P4 Benefits to business................................................................................................................5 P5 Efficiency by using marketing...............................................................................................6 TASK 4............................................................................................................................................7 P6 Challenges of globalisation....................................................................................................7 CONCLUSION................................................................................................................................8 REFERENCE................................................................................................................................10
INTRODUCTION Internet marketing, or online marketing, refers to advertising and marketing efforts that use the Web and email to drive direct sales via electronic commerce, in addition to sales leads from Web sites or emails. Internet marketing and online advertising efforts are typically used in conjunction with traditional types of advertising such as radio, television, newspapers and magazines. Internet marketing can also be broken down into more specialized areas such as Web marketing, email marketing and social media marketing. This report is based on the topic of Internet marketing in business and is on the case study of Mark & Spencer in which roles internet will be discussed for the growth of company. TASK 1 P1 Role of internet marketing: An innovative idea can go a long way toward creating a successful small business. But ultimately, a company can't be profitable unless it can convince consumers to try its products. The Internet is a channel that businesses can use to advertise, connect with customers and make sales (Roberts and Zahay, 2012). The right Internet strategy can play a significant part in the successful marketing and sales of products. With the help of internet marketing, company can leads to gain the competitive advantage over the others who do not follow this. Web Advertising Marketing is one of the vehicles businesses use to attract customers. The Internet provides a platform to place advertisements with the potential to reach millions of consumers around the world. Several advertising options are available on the Web. You can place banner and text ads on popular websites that are relevant to your particular business. For example, if you sell your own brand of hot sauce, you might consider buying ads on food-oriented websites such as Allrecipes.com, focusing on pages that feature recipes that use hot sauce. You can also place ads on social networks such as Twitter and Facebook. The Web as a Sales Channel The Internet also gives retailers an additional channel to sell products. Thirty years ago, a retail store without a physical storefront was all but unheard of (Shukla, 2010). Today, you can buy almost anything you want on the Internet by visiting a company's website. This lets you sell more products without the cost of having to rent out and stock additional retail floor space. The 1
abilitytosellgoodswithoutthecostofaphysicalstorefrontisespeciallyhelpfulfor entrepreneurs who want to keep start-up costs low. If you don't have storage space yourself, you can use a third-party drop shipper to store and distribute your products. Market Research Gathering information about the preferences and habits of consumers is an essential part of marketing. If you don't know what your customers want, how much they are willing to pay for products, and who your competitors are, it is difficult to offer the right product to the marketplace (Chaffey, 2010). The Internet can be used to gather consumer data through Web- based surveys, email surveys and online tools that let you track user activities and preferences. Communication and Customer Service Building a base of loyal customers that come back and buy products repeatedly is essential to creating a successful small business. The Internet can help companies improve customer service by giving customers an additional channel of communication that is available at all hours of the day. In addition, the Web lets businesses distribute important consumer information such as product manuals, guides and answers to frequently asked questions. This can help customers make informed decisions about their purchases. P2 Use of internet marketing Attempting to decide the most ideal approach to showcase your business online can be overpowering. It appears there are incalculable changed approaches to draw in people groups' consideration, yet unless you know how to execute any of them legitimately then emerging on the web can be for all intents and purposes unthinkable. In this blog I'll demonstrate you seven ways you can separate your Internet showcasing so you can attempt and decide all the more obviously which roads may suit you the best. Affiliate Marketing:Affiliate promoting is a kind of execution based advertising in which a business rewards at least one members for every guest or client brought by the offshoots possess showcasing endeavours (Armstrong and et.al., 2015). In the event that you have your own items yet aren't extraordinary at deals, partner advertising is an awesome approach to get other individuals to do your offering for you without utilizing a solitary individual. Investigate destinations, for example, Click Bank, Commission Junction and Epic Advertising to perceive what other individuals are offering as member items, and get a feeling of if there is a decent market for your product(Andreopoulou, and et. al., 2014). 2
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This works the other much as well – so in case you're urgent to get offering on the web yet don't have anything to offer you can join as an offshoot for different brands and get a commission for all that you offer. Pay Per Click:(PPC), is a web publicizing model used to guide activity to sites, in which promoters pay when the advertisement is clicked. PPC is an incredible approach to get your advert seen by individuals, and on the grounds that you pay for the individuals who really click your connection it implies that you can be sensibly certain that you are paying for individuals who are keen on what you have. Instruments, for example, Google Adwords enable you to inquire about pertinent catchphrases to ensure that you are picking terms that individuals are looking. A decent general guideline is that more extended catchphrase phrases permit better focusing on and subsequently less expensive snaps. SEO:Search engine optimization (SEO) is the Deliberate Organization of your site so it appears in the web crawler comes about. There are a considerable measure of so –called SEO specialists around who will guarantee to get your business to the highest point of the inquiry engines(Sozinova, and Fokina, 2015). While SEO makes this conceivable, there is generally significantly more to it and in the event that you need your business to rank for a very focused term it's improbable that you will end up in the main position overnight. Web indexes utilize a portion of the most astute PC researchers on the planet and they would prefer not to be deceived! Hence it's obviously better to adopt a quality strategy to SEO. Make content that is important to catchphrases and expressions that your clients utilize, once more, you can check Google AdWords to perceive what number of individuals utilize certain expressions to ensure they'll profit you. It's likewise essential to get different destinations to connection to you to demonstrate that individuals value your substance and need to share it. Great SEO is a continuous employment however will make its mark over the long haul when amazing guests begin to discover your site. Video Marketing:Video is one of the quickest developing regions of web based promoting. In addition to the fact that it is prominent with individuals who incline toward watching to understanding, it enables you gigantic adaptability to introduce your business in a way that simply isn't conceivable through words alone(Williams, and et. al., 2010). 3
YouTube is the second most prevalent web search tool after Google, and it's allowed to have your recordings there and in addition numerous other video locales. Facebook now additionally urges recordings to be transferred specifically to your course of events there with the goal that they play consequently in your devotees' news sustains. TASK 2 P3Benefits to customers Theinternethaschangedcustomershoppinghabitsandwithrapidtechnological developments accessing the internet has become easier than ever. People can access the internet whenever and wherever they like. Why do people like using the internet? Listed below are some of the benefits of the internet for the customer. Customers Stay Updated Theinternethaschangedcustomershoppinghabitsandwithrapidtechnological developments accessing the internet has become easier than ever. People can access the internet whenever and wherever they like. Why do people like using the internet? Listed below are some of the benefits of the internet for the customer. Instant Comparisons - Customers Can Compare Prices and Features One of the greatest advantages for the customer is that they can compare products or services they wish to purchase from the comfort of their own homes (Andreopoulou and et.al., 2014). Instead of having to visit a number of different retail outlets, the user simply has to open different internet window tabs to compare prices or features of the product/service they wish to purchase. Many retailing websites offer the facility where different products they sell can now be easily compared. There is also price comparison websites that customers can use to get the best possible price for their products. Clear Product Information For The Customer Websites offer clear and consistent product information to all internet users. There is little chance of misinterpretation or mishearing what the sales person said as in a retail store. The internet has comprehensive product information whereas in a shop the customer is reliant in the knowledge of their sales advisor. Transparent Pricing Available 24/7 4
The price of products can be easy for the consumer to find out ; customers can access pricing information from a range of sellers with a few internet clicks. Customers can take advantages of pricing that may change regularly or take advantages of special offers that last for a limited period as they can access pricing information 24 hours a day/7 days a week. Whereas prices for products offered for sale in retail premises can only be accessed whilst the store (or when store telephone lines are) open. Track Your Purchase and Choose Delivery Dates Many websites allow consumers to track their purchase from when it is ordered through to when they are dispatched and delivered to them. This reassures the consumer and makes them feel that they are obtaining a good service online. Some sellers also allow the consumer to choose the delivery address for each purchase and select their own delivery date and time. Reduction in Personal Carbon Footprint Looking after the environment and the world we live in is important for many customers. When consumers shop online they use their cars less and their personal carbon footprint is reduced. Retailers can support carbon reduction by sorting deliveries so that purchases by customers living close to each other can be delivered on the same day. TASK 3 P4 Benefits to business Internet marketing has many opportunities that will benefit a business for example it can help businesses to reach a wider audience, to reduce overhead cost of the business and to expand the company. Target Market and Broadband user Personalities What is the target market? The target market is basically the audience and the business that will do anything to attract their target market to the business. In the target market there are different types of customer that prefer different types of products for example: Demographic segmentation 5
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Age, Gender, Price, Lifestyle and cultures Tesco s main target market is the youth for example teenagers and early adults, this target market is spread all around the world, being satisfied with tesco’s products (Sozinova and Fokina, 2015). tesco’s Target Market are both gender male and female and also they target to different cultured, sporty people and lifestyles people live around the world. Psycho graphic Customers use tesco one of the 5 broadband personalities which for example fast tracker; this means that customer will typically use the internet to research tesco’s products so that they can buy from them. This is beneficial for as this will create more customers to visit their online website leading to more sales and profit P5Efficiency by using marketing Product: One benefit for a business that internet marketing has on product is mass customisation. Mass customisation is where a product can be personalised to meet customers changing needs at good prices because it’s produced in mass. This means that customers can have exactly what they want. Benefits: A benefit of mass customisation is that customers will be more satisfied as they will be able to purchase the products that they want, tailored to them, that they otherwise wouldn’t be able to offline. Therefore, customers are more likely to return to the business and business can gain customer retention. Price: An advantage of price when it comes to internet marketing for a business is dynamic pricing. Dynamic pricing is when a good or service at a price changes, due to the level of demand; the type of customer; or the weather. For example: Flights change price according to the time of year; prices for flights go up during the half-term, as they know family’s will want to go at this time. Benefits: A benefit of dynamic pricing is that if a business constantly updates their prices according to factors listed above, then they are likely to maximise their potential profits. It can 6
also mean that a business targets new market segments, such as customers that are looking for low prices and that are price sensitive. If prices are reduced then people that may not normally be able to afford the products/service at the full-price, may be enticed into buying the products if they are discounted, therefore the business may gain new customers from a different market segment. Place: One benefit for a business that internet marketing has on place is SEO. Search engine optimisation is when a business designs their website so that when people type in keywords or phrases the business has chosen it will come up high in search engine results. Benefits: A benefit of search engine optimisation is that there is an increased chance of them getting higher profits from more sales being made, due to their website being high in the search results of a search engine. If someone types into the home page of ‘Google’ a keyword, then the website will list all the websites with the relevant information and if your website is one of the first on the list, then more people are likely to visit it. Process: One process that benefits the business is disintermediation. Disintermediation is when the middleman is taken out of the process, for example: businesses don’t have to sell through retailers; they can sell straight to the consumers, through the use of internet. Benefits: One benefit of disintermediation is that it makes everything a lot faster, as the business doesn’t have to find retailers that will stock their products and they don’t have to go through the process of sending the products to the retailers, which all takes time. TASK 4 P6Challenges of globalisation One of the challenges of internet marketing is the costs. Costs of setting up a website can be quite expensive, as you have to consider things such as, the domain name; protection of the website; people looking after the website; designing the website; hosting and staff to look after 7
the consumer’s requests and query’s. So this is a big thing that a business has to think about when starting up an online business or website, as all of these things add up and can end up costing a lot of money. Another challenge of internet marketing can be the information a business puts on the website. When creating a website, a business has to be careful of the content that they put on the website (Williams and et.al., 2010). A business doesn’t want to overload the customer with information on products, as the customer will get bored and find another website, which is more to the point and easier to read. A challenge of internet marketing is security. An online business makes their profit through online sales, and therefore needs to make sure that people feel secure and safe doing so. They can do this by making sure their website has regular virus checks and some sort of software to stop it from being hacked (Leung, Xue and Bai, 2015). They also could make sure that they use a very secure system when people are paying for products, such as NatWest have the special password system, so that when you are about to purchase a product, the customer will have to enter the password as well as all the relevant card details. A company could also use companies such as, PayPal and ask customers to pay through there. This will make the customer feel more secure as they know it’s a website they can trust. A business when starting up a website has to make sure that it is user friendly. This can be a challenge, as a business will need to take into consideration their target market to decide how to design the website so that it is suitable and so that they find it easy to use (Berisha- Namani, 2013). For example: Derby house have made their website simple to use, so that people that don have much knowledge of how to use the internet can find their way around, but they have also made it suitable for people that are more technology minded, as there are features such as animations and access to social networking sites. CONCLUSION From the above report it can be concluded that consumer who use e-commerce websites to purchase products receive amazing benefits that they couldn't if they didn't use the internet and went to the store. The major benefit is that it is extremely time-consuming and there is a lot less effort required because they only have to click a few buttons and enter some details in order to 8
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purchase their new products whilst the process could take long amount of time if they went to the store. 9
REFERENCE Books and journals Roberts, M.L. and Zahay, D., 2012.Internet marketing: Integrating online and offline strategies. Cengage Learning. Shukla, T., 2010. Factors affecting'Internet marketing'campaigns with reference to viral and permission marketing.IUP Journal of Management Research.9(1). p.26. Armstrong, G., and et.al., 2015.Marketing: an introduction. Pearson Education. Andreopoulou, Z., and et.al., 2014. Internet marketing for sustainable development and rural tourism.International Journal of Business Information Systems.16(4). pp.446-461. Sozinova, A.A. and Fokina, O.V., 2015. Special aspects of studying the internet as a marketing communication channel of the service industry.Mediterranean Journal of Social Sciences.6(4). p.139. Williams,M.J.,andet.al.,2010.Internetmarketingchanneloptimization.U.S.Patent Application 12/707,111. Berisha-Namani,M.,2013.Informationtechnology,internet,andmarketing.International Journal of Electronic Commerce Studies.4(1). p.103. Leung, X.Y., Xue, L. and Bai, B., 2015. Internet marketing research in hospitality and tourism: a review and journal preferences.International Journal of Contemporary Hospitality Management.27(7). pp.1556-1572. Chaffey, D., 2010. Applying organisational capability models to assess the maturity of digital- marketing governance.Journal of Marketing Management.26(3-4). pp.187-196. Fawzy, L. and Dworski, L., 2010.Emerging business online: global markets and the power of B2B internet marketing. FT Press. Online Internetmarketing.2017.[Online].Available through:<http://www.webopedia.com/TERM/I/internet_marketing.html>. [Accessed on 20thJuly 2017]. 10