The Role and Effectiveness of Internet Marketing in Modern Business

This report delves into the realm of internet marketing within the context of modern business, focusing on the TLC marketing business. It commences by elucidating the pivotal role of internet marketing in contemporary business practices, emphasizing its evolution from traditional marketing. The report then dissects Tesco's utilization of internet marketing tools, including search engine optimization, email marketing, online advertising, and social networking. It proceeds to outline the advantages of internet marketing for both customers and businesses, covering aspects such as updated information, price comparisons, and transparent pricing. The report further explores the benefits and opportunities of internet marketing within the marketing mix elements, encompassing product, price, promotion, place, people, process, and physical evidence. It also examines how internet marketing enhances efficiency, effectiveness, and business success. Finally, the report addresses the potential challenges of globalization in internet marketing, particularly concerning security. The report concludes with an assessment of internet marketing's effectiveness in meeting customer needs.

INTERNET MARKETING IN
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Role of internet marketing has within a modern marketing context.....................................1
P2. How TESCO use internet marketing....................................................................................2
TASK 2............................................................................................................................................3
P3. Explanation of benefits to customers of a business using internet marketing......................3
TASK 3............................................................................................................................................4
P4. Benefits and opportunities to business of using internet marketing within marketing mix..4
P5. Use of internet marketing to make a selected business more efficient, effective and
successful....................................................................................................................................5
P6. Potentials challenges of globalisation facing a business when using the internet marketing
.....................................................................................................................................................5
TASK 4............................................................................................................................................5
D1. Effectiveness of internet marketing in meeting customer needs..........................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
.........................................................................................................................................................7

INTRODUCTION
Marketing is one of the major element of any organisation to attain their goals in a best
manner. Most of the companies are using internet marketing which is providing better benefits to
them in term of sales and revenues (Constangy, Marger and Brompton, 2015). This report is
based on TLC marketing business which will provide informations of those organisations which
are using internet marketing. This report will depict the role of internet marketing in modern
business context, how a company use internet marketing it will describe benefits of use of
internet marketing for consumers. After it will provide information on benefits and opportunities
for company in marketing mix elements. At last it will explain use of internet marketing to
improve it's effectiveness and challenges of globalisation by using internet marketing.
TASK 1
P1. Role of internet marketing has within a modern marketing context
The function of marketing is to operate en generate profit and also attract and keep
customers. Marketing exist wherever goods and services are bought and sold. Nowadays, in the
modern world, marketing is very important. Internet marketing is a continuation of the old
marketing practices. The modern approach to marketing is referred to as the marketing concept.
The essence of the marketing concept is that the customer and not the product is the centre of
entire business activity. It is also referred to as the customer-oriented approach to business. This
concept explains the rationale for a firm’s existence in terms of its ability to satisfy some aspects
of consumer needs and recognizes the purpose of the business as to ‘create a consumer’
(Kennerley and Neely, 2003). Customers want satisfaction in the economic and social
justification of a company’s existence. Consequently all company’s activities in production,
engineering and finance, as well as marketing, must be devoted to, first, determining what the
customers wants are and then, satisfying these wants while making a reasonable profit. Internet
marketing plays an important role in these area of modern marketing concept:
 To find the actual demand of the consumer.
 To adopt the enterprise in such a way so as to deliver the desired satisfaction more
effectively and efficiently than its rivals.
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By using internet, companies which are using internet marketing can easily identify
customers needs which can help to them to make a better product6 and services which can help
to company to make a better customers satisfaction.
P2. How TESCO use internet marketing
TESCO is an idol organisation because they are retaining their market position for a long
time by using internet marketing tools, here is a description is given under these points:
Search Engine Optimization: It is a process which is very important to make attraction
of internet traffic to the website as much as possible. Mainly Search Engine Optimization is more
essential for the success of online business of any company (Kennerley, Neely and Adams,
2003). SEO consist of optimizing the website of the company in such a way that the site of the
respective company would be rank on the first page of the search. In this way subscribers can
visit to the web site of the company whether they are in search of.
E-mail Marketing: It is a marketing strategy consists of the sending information of the
products and services to the potential customers through the e-mail. It is one of the most
effective marketing techniques to build good business relationship among potential customers
and prospective clients. Tesco realized that e-mail marketing is the key to its online business
strategy. From e-mail marketing Tesco gains nearly 60% online revenue and this is quite good as
compared to any other company in the market.
Online Advertising: It is the most effective process of advertising in which
advertisements are placing into the web site of the company. Tesco give focus on online
advertising campaign for the promotion purpose, for example promotion of flower and wine in
Christmas time, chocolates for valentine day etc.
Social Networking: Face book and Twitter have the greater hand to make the closer
relationship with customers and for promotional campaign of Tesco. Presently there are 19 Tesco
themed Twitter feeds (Schepers and Van den Berg, 2007). According to the head of research and
development at Tesco.com, Tesco families were thinking about supporting their social media
activity to promote consciousness of target items. He added social strategy of Tesco would
support to improve personal relationships with its customers and loyalty. Recently Tesco started
a Friday Frenzy promotional campaign on face book for the clothing at Tesco and was able to
made an addressees of over 40 thousand persons per week.
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In short, it can be concluded that Tesco is using internet marketing in the most effective
manner but there is still a lot of scope.
TASK 2
P3. Explanation of benefits to customers of a business using internet marketing
Online marketing provides a lot of profits to consumers and manufacturing & retail
companies as well. Internet has changed customer shopping habits and with rapid technological
developments accessing the internet has become easier than ever. People can access the internet
whenever and wherever they like. Listed below are some of the benefits of the internet for
customer.
Customers Stay Updated: By using this customers can get updates of products and
services easily which can help to them to make a better communication to increase sales. This
will develop a feeling of satisfaction in respect of the products.
Instant Comparisons: One of the greatest advantages for the customer is that they can
compare products or services they wish to purchase from comfort of their own homes (Taipale-
Erävala, Heilmann and Lampela, 2014). Instead of having to visit a number of different retail
outlets, 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 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: 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.
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TASK 3
P4. Benefits and opportunities to business of using internet marketing within marketing mix
Internet marketing has many opportunities that will benefit a business to reach a wider
audience, to reduce overhead cost of the business and to expand the company. Here is marketing
mix elements of Tesco with benefits and opportunities by using internet marketing:
Product: Mass customisation is where a product can be personalised to meet customers
changing needs at good prices in Tesco (Witkowska, 2007). A benefit of internet marketing in it
is that customers will be more satisfied as they will be able to purchase products that they want.
Opportunities is increased providing better products according to customers demands.
Price: It is an element which has a great value for Tesco, it provides a huge benefits like
dynamic pricing, company can provide details in market easily by using online marketing. It
provides opportunities to assess their target market and market their products at right price, in
order to get maximum sales and revenue.
Promotion: Internet marketing provides huge support in marketing of products of Tesco.
Social networking sites are used by Tesco to send out promotions and keep people up-to-date on
upcoming events and products. By businesses using social networks it means that they can gain
customer loyalty and opportunity of brand awareness is the potential to increase sales.
Place: It is a part of business where they can deal to customers so they are having their
stores and they are having their website to sale product via online selling methods. 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. An opportunity of SEO is that it can help a business to reach a wider range of people and
a bigger target audience.
People: Employees which are conducted in sales and promotions are having a their
innovative mind by which they can make changes in their internet marketing (Yagyasen, Darbari
and Ahmed, 2013). By this they can attract more people and enhance their sales.
Process: It is related to sale of products so in it Tesco can easily sale their products and
online marketing and sales makes a faster process of sales. Opportunities of process are that a
business can serve more than one person at a time online.
Physical evidence: Tesco is influencing people when entering an on their website and
they can adjust design features to change this such as colours and fonts. This is a benefit for
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Tesco that they can influence what mood people are in when they are on the website. Brand
awareness is an opportunity that businesses get, from internet marketing.
P5. Use of internet marketing to make a selected business more efficient, effective and successful
By using online marketing Tesco can be more efficient, as a company can have lots of the
same product made, this means that they will get a better price compared to if they were just
buying a few and therefore they can make the most profit possible. Use of online marketing
make them more effective as a business can get all stock that they need at one time and from one
place (Mitsopoulos, 2014). This means that they can have high stock levels so that they won’t
keep their customers waiting for products, which may get them a bad reputation and may cause
consumers to not return to the business.
P6. Potentials challenges of globalisation facing a business when using the internet marketing
Online marketing provides a lot benefits to Tesco but it becomes huge challenge to
company which 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. 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.
TASK 4
D1. Effectiveness of internet marketing in meeting customer needs
Internet Marketing enables Tesco to meet needs and wants of their customers more
effectively as customers are able to access the site. TESCO online store 24/7 which is efficient
and meets needs of a customers (Arasti, Zandi and Bahmani, 2014). Internment marketing also
enables to company to identify their markets and allows to them to do product research as well in
order to attract their potential customers and meet their wants via online business. As they have
blogs on their website which allows customers to write their reviews and suggestions as well as
disadvantages and therefore there are many disadvantages to internet marketing such as regularly
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updating their website to attract customers as well as difficulty that many customers may not
have access to the web or may not know the procedures of using it. This proves that internet
marketing can successfully fills the needs and wants of the customers.
CONCLUSION
On the basis of above mentioned report, it can be concluded that Internet marketing is
one of the fast growing concept of marketing these days. Tesco is using it effectively to increase
their business. Internet provides them a lot of benefits to consumers and as well as to company to
use marketing mix elements in a better way. But it delivers a lot of challenges to organisation as
they are working in globally.
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REFERENCES
Books and Journals
Arasti, Z., Zandi, F. and Bahmani, N., 2014. Business failure factors in Iranian SMEs: Do
successful and unsuccessful entrepreneurs have different viewpoints?. Journal of Global
Entrepreneurship Research. 4(1). p.10.
Constangy, H.W., Marger, E and Brompton, A., 2015. CHANGING BUSINESS
ENVIRONMENT.
Kennerley, M and Neely, A., 2003. Measuring performance in a changing business environment.
International Journal of Operations & Production Management. 23(2). pp.213-229.
Kennerley, M., Neely, A. and Adams, C., 2003. Survival of the fittest: measuring performance in
a changing business environment. Measuring Business Excellence. 7(4). pp.37-43.
Mitsopoulos, M., 2014. Manufacturing, competition and business environment: removal of
obstacles—Opening to international competition. Competitiveness for growth: policy
proposals. Hellenic Bank Association. Athens. pp.161-177.
Schepers, P and Van den Berg, P.T., 2007. Social factors of work-environment creativity.Journal
of business and psychology. 21(3). pp.407-428.
Taipale-Erävala, K., Heilmann, P. and Lampela, H., 2014. Survival competence in Russian SMEs
in a changing business environment. Journal of East-West Business. 20(1). pp.25-43.
Witkowska, J., 2007. Foreign direct investment in the changing business environment of the
European Union’s new member states. Global Economy Journal. 7(4). pp.1-30.
Yagyasen, D., Darbari, M. and Ahmed, H., 2013. Transforming non-living to living: a case on
changing business environment. IERI Procedia. 5. pp.87-94.
Online
What is internet marketing. 2012. What Are Internal & External Environmental Factors That
Affect Business? [Online]. Available Through:
<https://www.searchenginejournal.com/what-is-internet-marketing/56213>. [Accessed
on 18th August 2017].
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