Internet Marketing's Role in Modern Marketing: Tesco and TUI Report

This report examines the role and impact of internet marketing in a modern context, using Tesco and TUI as case studies. It analyzes how these companies utilize internet marketing for promotion, customer interaction, and tracking activities. The report explores the benefits of internet marketing for both businesses and customers, including increased reach, product variety, and 24/7 accessibility. It also discusses the opportunities available to businesses through internet marketing, such as enriched marketing mixes and reduced costs. Furthermore, the report evaluates the impact of internet marketing on Tesco's efficiency, effectiveness, and success, while also addressing the challenges of globalization faced by the company, such as security and dynamic pricing. The report highlights the importance of adapting to the changing marketing landscape and leveraging internet marketing to gain a competitive advantage.

Internet Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 The role of internet marketing has within a modern marketing context:...............................1
P2 Tesco and TUI using Internet marketing:..............................................................................2
TASK 2............................................................................................................................................2
P3 Companies using internet marketing and its benefits to customers:......................................2
Task 3...............................................................................................................................................3
P4 The benefits and opportunities available for business using internet marketing:..................3
P5 Internet marketing and its impact on Tesco efficiency, effectiveness and success:..............4
Task 4...............................................................................................................................................5
P6 The challenges of globalisation faced by Tesco:...................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Today the marketing concept is changing at very fast pace. It is able top add more value
to the whole environment. With time and technological advancements it is able to serve the
market in a much better way. Internet is one of the newly developed market place which has
changed the whole scenario. Today it is becoming a very big and an alternative to offline buying,
selling and marketing process (Chen, 2011). With upcoming changes it will be able to add more
value to the business and customers. With the help of internet marketing the organisations are
able to reach the customers who are living on the other side of the planet. In this report it is
analysed how internet marketing has impacted the whole scenario. It will also cover its benefits
for the fledgling business while pointing out the cons of this new marketing concept.
TASK 1
P1 The role of internet marketing has within a modern marketing context:
Today the companies are able to reach customers who are living in different countries
and this has become possible due to the internet marketing. There are billions of people who use
internet for social media and online shopping. That is why big companies as well as small firms
have started targeting the internet and its various platforms as to reach huge population in the
most efficient manner. The chosen organisations are Tesco and TUI. These two firms are one of
the largest retailers. The only difference between them is that Tesco have offline stores via which
they are offering retail services while TUI is a travel agency which have well established online
sources as well as offline market.
Internet has helped the these companies in opening a uncharted territory for earning more
profits. This new market has enabled the companies in establishing a much better customer
relationships and research (Christiansen, 2011). The organisations are able to serve the customer
in a way better way than they were able to do in past. There are many ways in which Tesco and
TUI have incorporated internet marketing in their various activities as to attract more customers.
Tesco incorporation of internet marketing: The company adapted to the market trend in the
early has and it was able to establish itself in the online world. Today it is offering different types
of services to the customers via internet. It have its own shopping website which have different
sections. They are offering home delivery, take away services via their online site. Also they
have increased their social media interactions as to resolve customer quesries in faster way.
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TUI incorporation of Internet marketing: The company was the first one to launch its online
travel and tourism website. It was very hard to attract the customer via offline marketing but
internet has changed it. Today they are able to show customer what it is like to travel with TUI.
Their interaction with customer has also improved as they are able to interact with them on
different social media platforms and understand issues and new trends.
P2 Tesco and TUI using Internet marketing:
There are many ways in which these companies are able to use the internet marketing.
The organisations are able to establish a much better market approach in the present scenario.
Today it has become a tool which can not be overlooked or misused (Ducournau and et. al.,
2011). It has to be used in a strategic manner so that company can gain additional competitive
advantage over the market and its factors. Tesco and TUI both are from different sectors but
internet has enabled them to perform some similar things. These companies are using internet in
the following ways:
 Promotion of products to larger population: Today because of internet these two
organisations are able to promote their products and services to much larger population.
 Interaction with customers directly: The companies are able to interact with customers
directly as there are multiple sources like social media where they are able to answer to
the queries of the customers.
 Easy tracking of activities: They are able to track the activities of all market forces.
Also they can record each and every transaction which is taking place inside the
company.
 Communication: Companies are able to develop internal and external communication
channels. Internet has helped them in reducing the cost of communication (Fritz, 2013).
Tesco and TUI both release their annual budgets and reports via live telecast on their
social profiles.
TASK 2
P3 Companies using internet marketing and its benefits to customers:
Benefits of Internet marketing to customers of companies who use internet marketing
There are many benefits for customers when companies are using internet marketing as to reach
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them and offer products and services. The main reason behind the expansion of companies in
the field of internet marketing is its cost and effectiveness to reach the large population without
any hassle. There are various benefits of internet marketing for customers who buy products of
organisation who use internet marketing while the companies who not use it are disadvantage:
 Customer stay updated: The consumers are updated because of the internet marketing
as they are able to check out the recent changes via the social media or other online
shopping sites. The companies which do not use internet marketing loose out in keeping
their customers updated.
 Instant comparisons: Today customers are able to compare different products in the
most easiest way. There are many sites which provide comparison between products and
services of different companies.
 Transparency: There is 100% transparency in the whole buying process. Customer
knows exactly what he is buying. He is assured by the different online insurance scheme
given by the companies. Also the product is delivered on door and customer can track it
live.
 Reduction in personal carbon footprint: The internet marketing has been able to
reduce the carbon foot print as the customer can order the products and services he
wants while sitting at home. This means that he will not use the car and other fuel
consuming vehicles to go out and buy.
 24/7 Shopping hours: The customer are able to shop whenever they want. As the online
shopping sites of the companies is always available except at the time of updatation. The
customer only needs access to internet and he can directly buy the products without any
hassle. There is no time barrier like we have in offline shopping.
The companies knows that its is very important to establish themselves in the online world as to
reach the masses in the most effective and efficient way.
Task 3
P4 The benefits and opportunities available for business using internet marketing:
Today if the business is not registered online then it will lose in long run. It is very
important for the business to establish themselves on internet as to enhance their market visibility
and recognition (Leung, Xue and Bai, 2015). Tesco is using the internet marketing as a tool to
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attract the masses to buy its products and services. The company knows the value and
importance of online marketing that is why it is investing heavily as to secure a online
dominance.
The internet marketing has become a very important tool for the company as they are
able to reach the customers who are living far away and they were unreachable before. There are
many benefits and opportunities which are available for Tesco as it expands its internet
marketing (Michaelidou, Siamagka and Christodoulides, 2011). The company is able to enrich
its marketing mix by using internet marketing. It is using the online market approach as a tool to
develop better market for itself. The marketing mix and benefits of internet marketing is
described below:
 Product: Tesco is able to serve and sell more variety of products with the help on internet.
◦ Opportunity: To provide better products and more varieties at efficient level.
 Price: The price is also reduced as the company now ships the ordered product directly
from distribution centres or if it is the case of same day shipping then the stores ships the
product directly to the customers.
◦ Opportunity: reduced expenditure as the shipping and shelf cost is reduced.
 Place: Before internet revolution the companies were not able to reach the customers who
lived far away from their stores.
◦ Opportunity: Exploiting the uncharted territory with no additional expenditure. Its all
global now
 Promotion: The internet has changed the whole marketing concept. Today with the help
of viral advertising the companies are able to target the customers in much easier way.
◦ Opportunity: development and promotion is easy with the help of promotional tools
available on social media and internet.
P5 Internet marketing and its impact on Tesco efficiency, effectiveness and success:
Tesco is the third largest retailer in the world in terms of profits and ninth largest when it
comes to its revenue generation. It is one of the most efficient, effective and successful retailer of
the world (Tsai and Cheng, 2012). The company is able to change itself with the changes in
market environment. Today it has established itself in the field of internet marketing. It is able to
reach the customers who were not reachable before the internet revolution. The internet has
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changed the Tesco and its functioning. Today it has enabled the company to utilise the resources
in much efficient manner while increasing the effectiveness.
The company have many opportunities which are required to be exploited. The internet
has presented a new market which needs to be explored (Sin Tan, Chong and Lin, 2013). There
are several opportunity available for Tesco which are m,mentioned below:
 Product variety: Tesco can easily improve the product variety as it will not require
additional shelfs. In internet marketing and selling, the seller only have to display the
products and ship them when they are ordered.
 Reduced expenditure and 24/7 accessibility - Place: The expenditure is reduced as the
company do not require any intermediary also the cost of shelf and transportation is
reduced. Tesco is also able to put up a efficient performance due the improvement of
back logs.
 Global market: The company is able to reach the global market as the internet is a service
is used by the customers all around the world (Roberts and Zahay, 2012). Tesco has been
able to reach the population which lives in another countries via internet.
 Competition and Branding and Promotional Tools: There are many websites which offers
the best tools to promote the company and its products. For example google ads,
Facebook ads. These organisation allow firms like Tesco to display or advertise. Google
has enabled a click for ads while Facebook displays ads in video and on the sides of
webpages.
Task 4
P6 The challenges of globalisation faced by Tesco:
The company has been facing the heat of globalisation since early 1990's. It has adapted
to most of the changes but globalisation is presenting its
 Security – Process, Physical evidence: The security of the core values and the facilities
are now a major challenge as they are spread around the globe..
 Competition – Dynamic Pricing: Each region have different type of customers which
makes the pricing a very dynamic issue.
 24/7 Accessibility – Place: Accessibility can be very difficult to manage/control this
continuous accessibility if you don’t have a strategy that defends your personal time.
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 Globalisation – Place: The global market have different needs and wants as it is divided
into various regions.
 Mass customisation – Product, Process: Today customer wants products as per his
requirement which promotes mass customisation (Salehi and et. al., 2012). It is a
challenge for Tesco as it is not possible for them to mass customise the products.
CONCLUSION
Today the internet is a very important tool for the companies to expand their market reach to
much larger population. The rise in online shopping and its impact on customer preference has
been tremendous. The companies all around the globe are trying to exploit the new market place
which have people who are willing to buy the products which can fulfil their desires and wants.
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REFERENCES
Books and Journal
Chen, K.C., 2011. Text mining e-complaints data from e-auction store with implications for
internet marketing research. Journal of Business & Economics Research (JBER),
7(5).Sharma, A., 2011. Take-off of online marketing: casting the next generation
strategies. Business Strategy Series. 12(4). pp.202-208.
Christiansen, L., 2011. Personal privacy and Internet marketing: An impossible conflict or a
marriage made in heaven?. Business horizons. 54(6). pp.509-514.
Ducournau, P. and et. al., 2011. Direct-to-consumer genetic testing through Internet: marketing,
ethical and social issues. Medecine sciences: M/S. 27(1). pp.95-102.
Fritz, W., 2013. Internet-Marketing und Electronic Commerce: Grundlagen—
Rahmenbedingungen—Instrumente. Springer-Verlag.
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.
Michaelidou, N., Siamagka, N.T. and Christodoulides, G., 2011. Usage, barriers and
measurement of social media marketing: An exploratory investigation of small and
medium B2B brands. Industrial marketing management. 40(7). pp.1153-1159.
Roberts, M.L. and Zahay, D., 2012. Internet marketing: Integrating online and offline strategies.
Cengage Learning.
Salehi, M. and et. al., 2012. Dissimilarity of E-marketing VS traditional marketing. International
journal of academic research in business and social sciences. 2(1). p.510.
Sin Tan, K., Chong, S.C. and Lin, B., 2013. Intention to use internet marketing: A comparative
study between Malaysians and South Koreans. Kybernetes. 42(6). pp.888-905.
Tsai, Y.C. and Cheng, Y.T., 2012. Analyzing key performance indicators (KPIs) for E-
commerce and Internet marketing of elderly products: A review. Archives of
gerontology and geriatrics. 55(1). pp.126-132.
Online
What is Internet Marketing?. 2012. [Online]. Available through:
<https://www.searchenginejournal.com/what-is-internet-marketing/56213/>. [Accessed
on 5th June 2017].
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