Tesco's Marketing Strategies in the Digital Age

This assignment examines Tesco's current marketing strategies with a focus on the effectiveness of their internet and digital marketing efforts. It argues that adopting strategies like e-CRM and PPC marketing could significantly benefit Tesco by attracting more customers, increasing profit margins, and fostering customer loyalty through repeat sales. The analysis also considers the limitations of Tesco's current marketing approach and suggests improvements for future success in the competitive UK market.

Unit 12. Internet Marketing
Student name: Maria Perca

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................................3
P1. ROLE OF INTERNET MARKETING............................................................................................................3
P2. USE OF INTERNET MARKETING BY ORGANIZATION...............................................................................4
P3 BENEFITS TO CUSTOMERS OF BUSINESS USING INTERNET MARKETING................................................4
M1 ANALYSIS OF BENEFITS OF INTERNET MARKETING...............................................................................5
P4. BENEFITS AND OPPORTUNITIES TO THE BUSINESS................................................................................6
P5. INTERNET MARKETING APPLICATION ON BUSINESS SUCCESS...............................................................6
P6 AND M2 ANALYSIS OF MARKETING OPPORTUNITIES AND CHALLENGES................................................7
D1. EFFECTIVENESS OF INTERNET MARKETING IN MEETING CUSTOMER NEEDS........................................8
CONCLUSION...............................................................................................................................................8
REFERENCES..............................................................................................................................................10

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
increasing the business’s profit, sells and also increases the number of their customers.
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.
P3 BENEFITS TO CUSTOMERS OF BUSINESS USING INTERNET
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
inventory of goods that they can automate the inventory management using web-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, with online sales now 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
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.
 Internet marketing is one of the cheapest strategy among all the available techniques and
strategies of marketing products and services. Hence, it is cost effective marketing tool
for the company which supports to reduce burden of marketing expenses.
 It is helps to the firm in order to reach at the broader level and aware people of the
national and international both. For this, social media networks are used which are also
cheapest.

 Internet marketing concept takes very less time as compare to other marketing methods
and strategies.
 Once internet marketing is used then management able to take follow up that
appropriately by which it can know that such marketing is effective or not.
 It is standard measure to analyse about cause as well as effect relationship of the internet
marketing and sales of the firm.
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
given output, including personal time and energy. Efficiency in, business terms, is the
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.
P6 AND M2 ANALYSIS OF MARKETING OPPORTUNITIES AND
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.
Due to globalisation concept there are several companies enter in the retail industry of
UK which create high competition. Moreover, rivals comes into UK with the highly innovative
and updated technologies as well as higher quality. Hence, major challenge facing by the TESCO
company is cut throat competition which lead to reduce profitability. Along with this, when
payment is transacted through internet and online after globalisation of the firm which lead to
create malpractices. Furthermore, problems and issues of disintermediation is also one of the
major challenge which facing the TESCO Plc because of globalisation.

D1. EFFECTIVENESS OF INTERNET MARKETING IN MEETING
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.
TECSO having marketing strategies highly better and attractive but in opposite to that, in
the UK retail industry there is level of competition is very high. Opportunity of the marketing for
TESCO is that it has to make mobile application which provides overall information about the
firm and its goods as well as services. Along with this, TESCO facing some challenges are that
impact of its marketing technique is lower on the local community because Aldi, Lidl and other
rivals provide high quality of products and services at cheapest rate. In addition to this, financial
performance of TESCO is not better and due to which it not able to make more expenses on the
marketing department. Moreover, those marketing methods used by TESCO having lower
impact on the community of UK.
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.

REFERENCES
Journals
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