Internet Marketing: Tesco's Efficiency and Challenges

This report provides a comprehensive overview of internet marketing within the modern business context, exploring its role, strategies, and impact on organizations. It delves into how businesses like Tesco utilize internet marketing tools such as email, search engine optimization (SEO), and social media to achieve marketing objectives. The report examines the benefits for both customers, including dynamic pricing and responsive transactions, and businesses, such as increased customer reach and competitive analysis. It further analyzes the efficiency, effectiveness, and success of Tesco's internet marketing strategies, particularly in terms of pricing and product offerings, while also addressing the challenges of globalization. The report references key concepts like the marketing mix and SMART objectives and provides a detailed explanation of how internet marketing has transformed the business landscape.

INTERNET MARKETING
IN BUSINESS

Table of Contents
INTRODUCTION ...............................................................................................................................3
P1. Describe the role internet marketing has within a modern marketing context..........................3
P2. Describe how selected organisations use internet marketing....................................................4
P3 Explain the benefits to customers of a business using internet marketing.................................4
P4. Describe the benefits and opportunities to the business of using internet marketing within the
marketing mix of a selected business .............................................................................................5
P.5 Explanation of how Internet Marketing has made Tesco more efficient, effective and
successful.........................................................................................................................................6
P.6 Explain the challenges of globalisation facing Tesco when using the internet as a marketing
tool...................................................................................................................................................7
CONCLUSION ...................................................................................................................................8
REFERENCES ....................................................................................................................................9

INTRODUCTION
Internet marketing in present age provides one of the most economical and suitable method
so as to communicate the promotional message of the organization to their intended consumer
segment. Internet marketing includes various tools such as email, search engine marketing and
social media marketing etc. Internet marketing is beneficial for marketers as it is highly cost
efficient and helps marketers to achieve their marketing objectives by targeting their consumer
segment. Internet marketing, therefore, is about the using the internet in achieving marketing
success rather than being about the technology itself. As customers demand more from digital
technologies, the technologists themselves are integrating functions and making it easier for more
customers to take part. This is a trend that marketers can use to their advantage.
P1. Describe the role internet marketing has within a modern marketing context
The Role of Internet Marketing: Internet marketing is a useful tool that advertises
products and services on-line. In the world of today, people can even purchase products and
services on-line, and they will be delivered straight to the recipient's door. This is because it is
quicker than searching for items in a shop, quicker and easier to purchase than buying items in a
shop, and possibly waiting in a queue. Now there are millions of users purchasing items on-line,
businesses are now putting their businesses on-line and advertising their products through the
Internet, because they will gain additional profit depending on the amount of people who enter their
website. It is also the easier way to communicate and connect with their customers. Businesses will
also be more likely be able to advertise their business from a global perspective, at a reduced price.
They can achieve their SMART objects easily (Olsen and Johnson., 2013). SMART objectives are
meant to be SPECIFIC and to specify what they need to do in order to achieve these objectives.
SMART objectives are also known to be TIMELY, REALISTIC and ACHIEVABLE. Businesses use a
method called the 'Marketing Mix' in order to achieve their aims successfully as well.
eBay: This on-line business targets their audience by giving customers information
depending on what they bought previously, and gives them suggestions on latest deals that reflect
what the consumer bought recently (Peppers, Rogers, 2013). eBay can also give customers
additional information, depending on where the customer buys the products from. For example, if a
customer purchases a dress from somewhere from the USA, eBay may sugges additional dresses
from the USA or within the nearest postcode. Psycho-graphically, there are variables that relate to
values, personality, taste of interest, attitudes and lifestyles. These is also known as IAO Variables -
Interests, Activities, Opinions. This can be contrasted with demographic variables as well, such as
behavioural variables, age and gender or usage rate or loyalty. These variables reflect eBay as a

business, because they give their customers suggestions depending on the products they have
recently purchased. eBay also offers fashion outlets for shoppers, as well as other outlets on their
website (Tornatzky, and Klein, 2012).
P2. Describe how selected organisations use internet marketing
The internet marketing as change the landscape of the world in every way things are done in
every way things are done globally. Never before have people been able to interact in such a cost
effective and comfortable way. The business world as seen a better new of doing its daily activity,
business now are done in very short span of time even without the presence of both party at the
same place or time (Wang, Wang, . and Yang, 2010).
Information:- People worldwide are using the internet on a regular basis, with email and
search engines as the most popular services. Information is power. People are able to influence,
direct, convince, educate and manipulate others through one single tool: The distribution of
information. Email and discussion forums allow people to share their thoughts, ideas and
experiences with other people from all corners of the world (Mirchandani, and Motwani, 2011).
Cost Effectiveness:-The internet is by far the most effective communication tool. If you
want to send a letter via conventional or so-called slow mail, it will cost at least around $1 assuming
you restrict yourself to two single sheets of paper. Sending the same amount of information via
email will be up to 100 times cheaper with immediate delivery. In addition to this, email with it's
numbers of advantages over the slow mailing system of delivery of messages, sending and get a
reply on the spot (Olsen and Johnson., 2013).
Online Auction:- In this massive marketplace, eBay rules the auction sites. According to the
Nelison Rating, eBay is among the top ten most trafficked sites on the internet. eBay leads the
online auction industry with a more than 60 percent share of the market, its closest competitors,
Yahoo! Auctions, is only half its size followed by Amazon.com, all these are done with the help of
the internet and makes eBay smile to the bank on daily basis.
Low Cost Operation:-Running business requires tons of capital no matter the size of the
outfit, the business has to pay for rental shops, offices, motor vehicle, staffs, before it can think of
making it's profit which is the primary idea of the business (Chong, 2014).
P3 Explain the benefits to customers of a business using internet marketing
Dynamic pricing:- Customers can have advantages and disadvantages of dynamic pricing.
When there are many products in stock and the businesses doesn’t sell well, prices will be of
influence of that and will go down. When there is much demand to the product and there are not

many products in stock the price will go up. When you would like to buy tickets to go for Rome, it
could be the tickets are quite cheap but if the Pope dies the next day. All the tickets for Rome will
go up because many people than want to go to Rome to be at the funeral (Tornatzky, and Fleischer,
2010).
Responsive transactions:- An additional benefit of customers purchasing product/services
of a company who use internet marketing is that they can get a quick response to their transactions.
This is because the internet is a convenient place which can be used from any location (as long as
you have the correct equipment) and transactions online are usually very quick and relatively easy.
So for example, organization has a service called click and collect¹. This service allows customers
to do their shopping at company online as opposed to going into the store and physically purchasing
goods. This benefits customers because then they can simply search for the products they want and
add them to their online basket. Because instead of having all the products scanned and paying cash
or card to the member of staff at the till, the customer can easily enter their card details and click
buy now to purchase all their products. Once this quick transaction has occurred the customer
simply has to enter the store and collect their already packed shopping (Wang, and Yang, 2010).
Comprehensive Information:- links up and into information which is as up to date as it possibly
could be. The reason why this is seen as a huge benefit is because consumers knows that the
information will be extremely reliable due to the fact that it is so up to date. The website will also
have to be updated on a regular basis to prevent it from being unreliable and invalid (Mirchandani,
and Motwani, 2011).
P4. Describe the benefits and opportunities to the business of using internet marketing within the
marketing mix of a selected business
Benefits are discussed below:-
Knowledge of competition:- Using internet marketing within the marketing mix allows
Tesco to have a greater knowledge of their competitors as they are able to access their websites and
other websites provide information on competitors which they are able to access and read.
Customer reach:-Customer reach will benefit Tesco as they are able to reach a wide target
audience from their website by shipping the product brought around the European Union. Tesco
also have a European website that you can access from their main website and it allows them to
reach a wider reach by allowing customers to change the language of the website (Ahn, Kim, Han,
2013).
Benefit and Opportunity:-Web Analytic:Using internet marketing allows Tesco to be able
to see what their customers habits are when they visit their website. For example they could see

how many visitors have clicked on which link or product, they can also see the demand for each
product and what areas of the website are attracting the most customers. Also using web analytics
Tesco can also see whether their customers come back to the website and how often they come back
to the site and what they buy (Peppers, Rogers, 2013).
Opportunities:-
SEO (Search Engine Optimisation):- By being online Tesco are able to use search engine
optimisation. This provides Tesco with the opportunity of customers getting onto their website
before their competitors. This is because search engine optimisation allows companies to be ranked
online in search engines and companies can pay money to be ranked higher so that their business is
the first to come up in the search. Tesco can also use keywords on their home page and in offers on
their website so that when people search on search engines they can still come up high in the
rankings because of what that person has searched (Ahn, Kim, Han 2013).
 Dynamic pricing:
 Advertising
 Customer access
P.5 Explanation of how Internet Marketing has made Tesco more efficient, effective and successful.
Successfulness:-
Price:- The pricing of Tesco products are successful as customers keep going back to the
website to buy products from all different price ranges. By offering their customer different price
ranged products allows Tesco demand or products to increase as well as their sales revenue.
Because the prices of the products are reasonable and have a wide price range customers are going
to be happy with the prices that they have paid for the products brought (Tornatzky, and Fleischer,
2010).
Product:- Tesco wide product range allows them to hit a wide target market with loads of
different products on offer to them. Because Tesco have a wide product range they are able to get a
better response from their customers on what their services and products.
Effectiveness:-
Physical evidence:-Tesco physical evidence is effective as it allows their customers to
navigate their website easily because of the layout of the website and to find the products they are
looking for. The selection bar makes it easy or the customers to be able to find the department that
the product they are looking for is in.
People:-Have people that monitor the website all the time is very effective because
customers can access the website 24/7 and can order anytime, as well as the customers that order
who live in other countries in Europe so Tesco have to have people monitoring the website 24/7

because of the service they provide to their customers. So it is effective to have less people
compared to if they had retails stores all over Europe (Peppers, Rogers, 2013).
Efficiency:-
Price:- Tesco are able to look at the prices of their products and then change them easily if
there is a high demand for those products. Because Tesco are able to monitor their prices of their
products they are able to give their customers what they want for a good price.
Product:- Tesco are able to have a bigger product range because they are online. This is
because they are able to put pictures of the products on the website rather than if they had a retail
store. This means that many people are able to look at the same product at the same time. Because
Tesco are able to have some many products on offer to their customers they are able to and new
products very quickly and easily (Chong, 2014.).
Place:-Because Tesco are just a pure online company this is better for them as it allows them
to target a whole wide range of customers from babies all the ways to adults. However they can also
target the different types of online personalities.
P.6 Explain the challenges of globalisation facing Tesco when using the internet as a marketing tool.
Promotion:- Tesco will need to make sure that they do not offend any people with their
advertising as some cultures do not like the fact that women show off their body. This will mean
that Tesco will need to make sure that they are doing everything not to offend any of their potential
consumers with their advertising.
Brand recognition:- Tesco biggest challenge is their brand recognition this is because they
will be an unknown brand in the countries that they are going to expand to. This means that they
will need to make sure that they are able to compete at the level of their competition in those
countries. The competition will be hard to compete with as the companies that are already in those
countries will have already established themselves in that country where as Tesco has not.
Cultural differences:-What Tesco also need to make sure that they take into account what
is socially acceptable in those countries as they need to make sure that they are not offending any
people in those countries. This is a challenge for Tesco because each country has different cultures
and different views on what is socially acceptable. For example when Tesco would put up pictures
of their items that they are selling they need to make sure that they are selling the clothes that those
countries would buy.
Intermediaries:-Another challenge for Tesco when trying to globalist their company would
be their delivery services. This is because they will need to contact delivery companies and sign

contracts with them to make sure that they are able to deliver their products to their customers. So
their intermediaries will be more however their overall costs may be lower because they will not
have to pay for the shipping of the products they will come straight from the manufacturer.
CONCLUSION
In this report it is concluded that the internet marketing helps in terms of business growth. It
has been revealed that internet marketing practice adopted in context to the organizations differ
significantly as compared to the traditional marketing practice adopted by the business
organizations. The challenge for Tesco is that they will need to find the manufacturers and suppliers
in order to create the products in the new countries.

REFERENCES
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