Internet Marketing Strategies: A Case Study of Tesco's Approach

This report provides a comprehensive analysis of Tesco's internet marketing strategies, examining the role of internet marketing in a modern context and describing how Tesco, as a leading retail organization, utilizes various online marketing tools such as websites, social media, and email marketing. The report explores the benefits of internet marketing for both customers and the business, including increased convenience, wider product selection, and improved customer engagement. It also delves into the opportunities presented by the 7Ps of the marketing mix, such as product, price, place, and promotion, in the context of internet marketing. Furthermore, the report assesses how internet marketing has enhanced Tesco's efficiency, effectiveness, and overall success by streamlining supply chains, expanding market reach, and improving customer interactions. Finally, it addresses the challenges Tesco faces in global internet marketing, such as competition and cultural differences, offering a thorough overview of the company's approach to online marketing and its impact on the business.

INTERNET MARKETING

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ..........................................................................................................................................1
P1 Describe the role internet marketing has within a modern marketing context......................1
P2 Describe how selected organisations use internet marketing................................................2
TASK 2 ...........................................................................................................................................3
P3 Explain the benefits to customers of a business using internet marketing............................3
TASK 3 ...........................................................................................................................................4
P4 Benefits and opportunities in 7P's by using the internet marketing.......................................4
P5 How internet marketing has made Tesco more efficient, effective and successful...............5
P6 Explain the challenges of globalisation faced by Tesco in using the internet marketing......5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7
.........................................................................................................................................................8

INTRODUCTION
Internet marketing is one of the form of the advertisement by which company can
promote its product and services through the internet channel such as web sites, emails, social
networking sites etc. this form of marketing promotion is widely increasing in today's
scenario(Mohammed al., 2003). Every different companies are using this advertisement mix
method. The reason behind this the uses of internet is increases day by day. The company can
reach to the large audience at a time and also it is less expensive then the other marketing mix.
The company which is taken for this report is Tesco it a largest retail store in UK proving
large number of product and services. The company is having its world wide business. Tesco is
into grocery, clothing, books, furniture etc.
In this report the importance of the internet marketing has been discuss and how company
is using the tools of internet marketing to promote its products and services.

TASK 1
P1 Describe the role internet marketing has within a modern marketing context
Now a days there is many people who use the internet for different uses. It play a
important role in the modern marketing. Companies are using the internet marketing to promote
its product to reach the large customers and to reduce the cost. Companies use web sites, social
networking sites, emails to advertise their products and bring the awareness of the product
among the customers. Internet marketing also help the company to understand the customer
behaviour(Omar, Bathgate and Nwankwo., 2011). Customers buy the product online and gives
the feedback and reviews for the product and services this help the company to improve their
performance and brings new feature.
By internet marketing organisation can increase their sales and revenues. Internet
marketing play important role to build strong relation between customer and organisation. Which
increase the customer retention. Company can communicate with customer by sending emails
about the new product arrivals and discount offers by the enterprise. Internet marketing have the
advantage of growing social media. It is shown that the companies who advertise their product
on social media their sales are increases. Company can do promotion by the campaigns on social
media and also gives adds on the google.
Internet marketing also gives the information about the customers taste and preferences
by tracking the webs, google, product visits by customers etc. internet marketing also helps to
reduce the cost by not having the physical sources and also do not need human resources for
internet marketing to promote the product(Baloglu and Pekcan., 2006). Company can reduce the
cost by not maintain the stock level they can make the contract with the other retailers and by
that company can provide the delivery to its customers. So it reduce the maintaining cost of
stock. Internet marketing bring the new concept and innovation in the marketing field which
changes the scenario of promoting activities.
P2 Describe how selected organisations use internet marketing
The company which is considered in this report is Tesco which the largest retail store in
UK. Tesco is promoting its product on the internet marketing it helps to expand their business
and also helps to retain the customers. Tesco is having its own internet services provider which
help connect with online services through internet facility. Tesco doing the marketing activities

by his own web sites and the websites is design in a way that the customers can easily access of
that and buy the goods and services online. It provides the delivery at the customer door and also
ensure the delivery time on which customers available to receive the product. Tesco
communicate its customers by social networking sites or by emails. Tesco keep its online selling
records which help the company to know the demand of the particular product. Tesco use the
customers rating on the product for improving their performance.
Tesco design its website in a manner so that it looks attractive, simple, well formatting so
it create the good impression on the customers. Tesco have its campaigns on the social
networking site in which customer participate and companies understand the needs and wants of
the consumers. Internet marketing helps the company to gain the competence advantage from its
competitor. Company can look after the other competitor web site and reviews that customers
gives on that by this they can make improvement in their websites in terms of design, prices,
range of the products, level of simplicity etc. all these factors impact on the sustainability of the
company and future growth of the enterprise.
Tesco is offering the club card to its customers so that they can understand the customer
in more better way and analyse what customer buy and which range of product they purchase.
This club card can help to provide the personalised services to its customers and it is name as
'love loyal'.
TASK 2
P3 Explain the benefits to customers of a business using internet marketing
Customers gets lot of benefits by the internet marketing. It make more convenience to the
customer to do shopping online. They need not to visit the store to purchase the the product they
can simply order the product from their electronic devices and get the product at their home.
Customers gets the large variety and range of the products through online. Following are the
benefits customers gets through the internet marketing. Comparing and select the providers: customer can compare the different company sites
in terms of prices, quality, availability, methods of payment and range of the products.
the customer can also choose the particular provider from which they can buy the
product(Chaffey and Ellis-Chadwick., 2012). In context to the Tesco company gives the

facility to buy the online it also gives the provider those who have the stock of the
products and prices which different providers offers. Gives the Bargaining power: customer also get the bargaining power of the product they
can search the product and bargain the product and services in terms of colour, size,
prices and gets the related product from different products. In context to the Tesco
provide the different range of the products in different ranges and also offer the particular
size which customers needs . Tesco launch the club card which provides the personalised
services to the customers. Gets the product information: customers gets the information about the product their
updated news from the internet marketing. In context to the company Tesco provides the
information to its customer about the uses of product, warranty and guarantee comes
with the product. Customer also get the emails from the company about the new arrival
and discount available on the products.
 Compare the prices:customers can compare the prices of one particular product on
different sites. And buy the product in less cost. In this way customers gets the multiple
options in the prices from different sites(Tiago and Veríssimo., 2014).
From the above question we can analyse that customers gets lot of benefits from the online
marketing. It also tends to reduce the exploitation of the consumers. Customers are able to
compare the products in terms of prices, quality, quantity etc. and gets best services by their
chosen website.
TASK 3
P4 Benefits and opportunities in 7P's by using the internet marketing
Internet marketing brings the opportunity for the business by which the enterprise reach
to its audience in less cost. It also benefits to 7P'S of marketing mix such as product, prices,
place, promotions, people, physical evidence, process. Product: internet marketing helps the company product to reach to its customers for the
final consumption. By the internet marketing enterprise can advertise its product world
wide and the demand also increase and product can reach to another customer outside the
country boundaries(Roberts and Zahay., 2012). Company is offering the personalised
product to its customers by internet marketing can increase the retention of the customer

and also help to increase the brand value. Tesco product are reaching to the foreign
customers also because of internet marketing. And customer can buy the Tesco from nay
part of the country. Prices: prices are also done by using internet marketing. Pricing strategy can be adopt by
comparing the prices to the competitor prices. Internet marketing gives this facility to
company to over look the prices of the competitor and then fix its own product prices.
Internet marketing also help to analyse the demand of the product by the tracking system
and according to that also company can fix the prices. Place: internet marketing gives the platform to the online product. In online marketing
there is no physical place where customer can visit. It place where company can show its
product on the shopping portal and by this customers can buy the product. So internet
marketing give the new places to the product(Roberts and Zahay., 2012). There is no
need to open many store by spending lots of money . Enterprise can expand its business
by the online brand store.
 Promotion: Internet marketing brings the new concept in promotion. By internet
marketing promotions can be done world wide and can reach to the large audience in low
cost. Company can do the promotion on social networking sites, web sites and through
email.
P5 How internet marketing has made Tesco more efficient, effective and successful
Internet marketing help the organisation growth and improve there performance. It help
the organisation to make use of company resources effectively , maintain the quality effectively
and satisfy the customer to the the successful organisation(Hollensen., 2015). As the internet
marketing make the Tesco supply chain efficient which make easy for the customers to buy the
products from online.
Internet marketing give the price, place, promotion, product efficiency. As Tesco customers has
more prices choice they help to fix the prices according to the competitor and also Tesco search
the suppliers in way that they can reduce the cost of the product and earn profits this increase the
effectiveness of the company as they chose their suppliers in a proper way. This lead to
successful because of easy flow of the supply chain and smother operation.
In terms of the place internet marketing efficiency increase as they reach the large
audience in lesser time. More customers are interacted through the internet marketing as Tesco

providing its products and services in many countries. The lead to the effectiveness by reducing
the cost of physical store, human resources appointed to that store and resources incurred on
stores(Strauss 2016). They just need to make available their products through online shopping
portals. And it brings the successful as they are making profit margin by reducing these cost.
In terms of promotion strategies make its operation efficiency as the Tesco is using the
social media to promote its product and they are millions of followers on these sites. They can
communicate with the large number of audience and it make the effective promotion as company
can track the customer visit the web and know the demand of the product. Its lead to the
successful to the organisation because the enterprise know the preferences and taste of the
customers and they can design the product accordingly.
P6 Explain the challenges of globalisation faced by Tesco in using the internet marketing
There are many challenges which company has to face in doing the internet marketing.
Organisation as to come over to solve the problems faced in internet marketing. Following are
some of the challenges faced by Tesco. Security and payment issues: Tesco make available its product on the online prtal and
websites. To order the Tesco products customer has to download the app in which
customer create the account and and then it provides the payment options like creadit
card, debit card and pay pal. These are security mode of payment by which company can
secure the customers money. Other customer feedback:when a customer is purchasing the product from online. The
rating and reviews has been given for the particular product that reviews can be positive
and negative(Chen, Fay and Wang., 2011). The negative reviews can affect the other
customers behaviour they can change their buying decision after reading the comments.
 Continuous change in technology: continuous change in technology tends to brings
regular changes in the company websites according to the update in technology changes.
CONCLUSION
In this report the importance of the internet marketing has been discuss. The role of
internet marketing in marketing context and also who the Tesco use internet marketing to
expand its business and earn the profits. The benefits of the internet marketing to customer is
mention in this report(Eastman, Ferguson and Klein., 2012). The 7p's get affected by the internet

marketing and how internet marketing help the organisation to run in efficiency and effective
manner and get the success in business operation. At last the challenges faced by the Tesco by
doing the internet marketing has been discuss in the report.
REFERENCES
Books and journals
Mohammed andet. al., 2003. Internet marketing: Building advantage in a networked economy.
McGraw-Hill, Inc..
Omar, M., Bathgate, I. and Nwankwo, S., 2011. Internet marketing and customer satisfaction in
emerging markets: the case of Chinese online shoppers. Competitiveness Review: An
International Business Journal. 21(2). pp.224-237.
Baloglu, S. and Pekcan, Y.A., 2006. The website design and Internet site marketing practices of
upscale and luxury hotels in Turkey. Tourism Management. 27(1). pp.171-176.
Chaffey, D. and Ellis-Chadwick, F., 2012. Digital marketing. Pearson Higher Ed.
Roberts, M.L. and Zahay, D., 2012. Internet marketing: Integrating online and offline strategies.
Cengage Learning.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Chen, Y., Fay, S. and Wang, Q., 2011. The role of marketing in social media: How online
consumer reviews evolve. Journal of Interactive Marketing. 25(2). pp.85-94.
Eastman, S.T., Ferguson, D.A. and Klein, R. eds., 2012. Media Promotion & Marketing for
Broadcasting, Cable & the Internet. CRC Press.
Strauss, J., 2016. E-marketing. Routledge.

Tiago, M.T.P.M.B. and Veríssimo, J.M.C., 2014. Digital marketing and social media: Why
bother?. Business Horizons. 57(6). pp.703-708.
Online
Internet Marketing. 2017. [online]. Available
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[Accessed on 4th may 2017].
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Through:<https://www.ukessays.com/.../marketing/the-e-marketing-strategy-of-tesco-
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