Internet Marketing: Benefits, Challenges, and Business Applications

This report delves into the multifaceted realm of internet marketing within the modern business landscape. It begins by defining internet marketing and its significance, exploring its role in driving sales and connecting businesses with customers on a global scale. The report then analyzes the ways in which organizations leverage internet marketing, encompassing advertising, promotion, and customer relationship management. It further examines the benefits of internet marketing for customers, such as enhanced convenience, price comparison, and access to information. The report also highlights the advantages and opportunities for businesses, including cost-effectiveness, personalization, and improved customer relationships. Moreover, it evaluates how internet marketing has boosted business efficiency, effectiveness, and overall success, while also addressing the challenges of globalization, such as disintermediation and payment security. Finally, the report assesses the effectiveness of internet marketing in meeting customer needs, providing a comprehensive overview of its impact on both businesses and consumers.

Internet Marketing in
Business

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1. Describe the role internet marketing has within a modern marketing context .....................3
P2. Describe how selected organisations use internet marketing................................................3
TASK 2 ...........................................................................................................................................5
P3. Explain the benefits to customers of a business using internet marketing............................5
TASK 3 ...........................................................................................................................................6
P4. Describe the benefits and opportunities to the business of using internet marketing within
the marketing mix of a selected business ....................................................................................6
P5. Explain how internet marketing has made a selected business more efficient, effective and
successful ....................................................................................................................................6
P6. Explain the challenges of globalisation facing a selected business when using the internet
as a marketing tool.......................................................................................................................6
TASK 4 ...........................................................................................................................................6
D2. Evaluate the effectiveness of internet marketing in meeting customer needs for your
selected business .........................................................................................................................6
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7
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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. In this report, the role internet marketing has within a modern marketing context, use
internet marketing benefits to customers, benefits and opportunities to the business internet
marketing has made a selected business more efficient, effective and successful, challenges of
globalisation, effectiveness of internet marketing have been discussed.
TASK 1
P1. Describe the role internet marketing has within a modern marketing context
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. 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.
P2. Describe how selected organisations use internet marketing
The three areas that you need to cover should include:
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1. Advertise, promote create a greater awareness (AIDA) and information sharing of their
products to increase sales especially now with the additional help of Instagram,
Facebook, twitter
2. Carry out cost effective research from the 1:1 feedback and relationship building
opportunities that it offers businesses suggesting how the company should expand its
range of goods and services. Companies will provide data which is collected from
software attached to company websites showing retention figures click here to read more.
The most important clicks that companies need to track are explained in this article here.
Studying the online behavior of your internet customers is key to finding out what
they want and need. Click here to read more. Web metrics or data collected and
analysed on line as it is known is key to success. This article shows just some of the data
that every entrepreneur should know. Click here to find out more.
3. Mass customisation and personalisation of key products in their range e.g. Nike ID
The detailed discussion in this report could consider some of the points below:
 Advertise their last minute promotions, prices and deals
 Identify new markets and reach wider distant markets i.e. teenage gamer, uni
students, professionals and those on the higher earning salaries
 Create opportunities to customise their internet products to their new audience e.g. Nike
trainers, Apples I tunes Match service
 Extend their online product range i.e. Love film on demand, Cinema goers Unlimited
 Increase their marketing attention - developing further their one to one relationships,
M&S one day 30% off days
 Increase the product information to their customers including video clips, online training
guides, tutorials, how to manuals etc
 Develop the mix of online and offline activities forcing shop users to go online to claim
deals and online customers to visit the shop to collect vouchers or products.
 Develop cost effective information gathering methods (research) so that they can
understand their customers better and target them more effectively.
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TASK 2
P3. Explain the benefits to customers of a business using internet marketing
When considering the case scenario of Tesco then internet marketing can bring following
advantages:
Customers Stay Updated
The 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. 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. 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.
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
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
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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. Describe the benefits and opportunities to the business of using internet marketing within the
marketing mix of a selected business
Convenience
Internet marketing enables you to be open for business around the clock without worrying about
store opening hours or overtime payments for staff. Offering your products on the Internet is also
convenient for customers. They can browse your online store at any time and place orders when
it is convenient for them.
Reach
By marketing on the Internet, you can overcome barriers of distance. You can sell goods in any
part of the country without setting up local outlets, widening your target market. You can also
build an export business without opening a network of distributors in different countries.
However, if you want to sell internationally, you should use localization services to ensure that
your products are suitable for local markets and comply with local business regulations.
Localization services include translation and product modification to reflect local market
differences.
Cost
Marketing products on the Internet costs less than marketing them through a physical retail
outlet. You do not have the recurring costs of property rental and maintenance. You do not have
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to purchase stock for display in a store. You can order stock in line with demand, keeping your
inventory costs low.
Personalization
Internet marketing enables you to personalize offers to customers by building a profile of their
purchasing history and preferences. By tracking the web pages and product information that
prospects visit, you can make targeted offers that reflect their interests. The information available
from tracking website visits also provides data for planning cross-selling campaigns so that you
can increase the value of sales by customer.
Relationships
The Internet provides an important platform for building relationships with customers and
increasing customer retention levels. When a customer has purchased a product from your online
store, you can begin the relationship by sending a follow-up email to confirm the transaction and
thank the customer. Emailing customers regularly with special, personalized offers helps to
maintain the relationship. You can also invite customers to submit product reviews on your
website, helping to build a sense of community.
P5. Explain how internet marketing has made a selected business more efficient, effective and
successful
Since any organisation can use the internet to monitor their competitors activities any
time it improves their businesses efficiency because they will come to know about any new
products or goods they have available to their customers, and they will also be able to visit their
competitors web page to find out more information such as offers and deals they are offering
their customers. This is a useful method that will improve a businesses efficiency since they will
always be well ahead of the game. ASOS can use the internet easily to keep an eye on what their
competitors such as Next, Dorothy Perkins are offering their customers and what new products
they are in stock. ASOS can then compare what they haven't got and try to get hold of it so that
their existing customers don't leave them for their competitors. Internet marketing is very
beneficial in many different ways for businesses and it can prove to be profitable for them
because it improves their performance levels and their efficiency.
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P6. Explain the challenges of globalisation facing a selected business when using the internet as
a marketing tool
Globalisation
Globalization is a core of economic globalization, including the mutual links between the
countries in various regions of ethnic politics, culture, science and technology, military, security,
ideology, lifestyle, values and other multi-level, multi-field impact, constraints diverse concepts.
Challenges of globalisation
Disintermediation
The internet offers the chance to use a direct channel of supply to clients or customers, wherever
they are. This process, called disintermediation, is the tendency to cut out the middle man, like
the suppliers to factory to distributor and finally sent to the customers. This creates obvious
efficiencies and savings, but at the danger of destabilising many older traditional channels that
might still be valuable sources of revenue to the business.
Payment security
Consumers are often concerned about payment security with transaction via the internet. There
are frequent stories about attacks by hackers, ‘identity theft’ and so on – all of which leave us
feeling vulnerable. Therefore, many people are reluctant to give their credit or debit card
numbers online, which deprives them of access to products and service that cannot be found
elsewhere.
Whether a business sells to private consumers or other businesses, payment transactions are
necessary. It is a matter of management policy how payments are to be taken, and how to
reassure potential customers. Cost considerations, security considerations, customer account. If a
business refuses credit cards, there will always be other businesses that will accept them. It is a
question of keeping up with the competition.
TASK 4
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D2. Evaluate the effectiveness of internet marketing in meeting customer needs for your selected
business
There are many different internet marketing benefits that businesses/organisation can use in
relation to improve their efficiency. For example, the quickness of internet marketing is one
major benefit that can be used in relation to their efficiency. This means customers are always
aware of the latest that is going on in an organisation so they know all about any new stock that
comes into their business because it doest take a long time for an online business to make any
changes on their website because its so simple and easy to do that there wouldn't be any reason
for them not to keep their customers up dated with all the latest happening. ASOS also keep their
customers up to date about anything new that is happening with them and inform all their
customers by either emailing them or by making any changes that will be necessary on their
website. For instance if they get new stock in they will email all their customers letting them
know about it and they will also put it up on their website for other people to see as well, just in
case they might be interested. Another benefit of internet marketing in terms with efficiency is
their 24/7 presence.
CONCLUSION
Through this report, Internet marketing and online advertising efforts are typically used
in conjunction with traditional types of advertising such as radio, television, newspapers and
magazines. In this report, the role internet marketing has within a modern marketing context, use
internet marketing benefits to customers, benefits and opportunities to the business internet
marketing has made a selected business more efficient, effective and successful, challenges of
globalisation, effectiveness of internet marketing has been elaborated.
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