Internet Marketing in Business: Tesco Case Study and Analysis

This report delves into the realm of internet marketing, examining its pivotal role in contemporary business strategies. It explores the core concepts of modern marketing, highlighting the significance of online mediums like email and social media. The report uses TLC Marketing UK LTD and Marketing Week as reference points. The report investigates the advantages of internet marketing for both businesses and consumers, including improved customer service, dynamic pricing, and efficient transactions. It also assesses the opportunities presented by internet marketing within the marketing mix, such as product development, promotion, and customer engagement. A case study on Tesco illustrates the practical application of internet marketing, detailing its use of SEO, email marketing, and online advertising. The report also addresses the potential challenges of globalization and security. The conclusion summarizes the key findings and underscores the effectiveness of internet marketing in meeting customer needs and driving business success.

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............................................................................................................................................3
P4. Benefits and opportunities to business of using internet marketing within marketing mix..3
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
REFERECES...................................................................................................................................7

INTRODUCTION
Marketing an significant subject for organisation which are working in competitive
environment. Internet marketing is latest trend in which marketing activities are done by internet
mediums like: E mail and Social Media (Jobber and Ellis-Chadwick, 2012). Most of the
organisations are using modern marketing concept in which companies are providing a better
products and services to customers according to their needs. This report is based on TLC
Marketing UK LTD. (Marketing agency) and Marketing Week (Magazine Publisher) to give
better explanation on internet marketing. This report is having focus on role of internet
marketing for modern marketing concept, use of internet marketing for company, it's benefits
and opportunities of internet marketing. It is having details on use of internet marketing to
develop a business, barriers of internationalisation of internet marketing and effectiveness of
internet marketing for to meet consumer needs.
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. Modern Marketing is a holistic, adaptive methodology that connects brands
with real customers and drives business results by blending strategy, creative, technology and
analysis. Internet marketing is not a singular approach to raising interest and awareness in a
product. Because of vast number of platforms Internet creates, field encompasses several
disciplines. It involves everything from email, to Search Engine Optimization (SEO), to website
design and much more to reach an ever-evolving, ever-growing audience.
Internet marketing plays a huge role in modern marketing concept because it is based on
customers so it is essential for companies to make a proper communication with their consumers
to identify their needs an make changes accordingly (Hung and et. al., 2012). Here is role of
internet marketing in modern marketing concept;
Product developer: Nowadays is organisations are able to create an attractive page for each
product, add information and videos/photos, they can take review of their products from their
t6argeted customers to make more better products.
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Business Promoter: Promotion will differ a little bit through internet marketing. Because with a
lot of shops organisations will make promotion by means of nice flyers and offers. For people
who buy their products online, they need to be attracted via other methods. For example, a
company can put a banner on a website.
Communicator: By this organisation can make communication with their targeted customers to
know what are their needs (Huang and Tsang, 2010). Most of consumers are using internet and
social media and by this an organisation can easily communicate with them.
P2. How TESCO use internet marketing
The company is using online marketing to increase their sales and market share, in below
mentioned ways company is using this:
Search Engine Optimization: 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. For the
non-food range of cited organisation, Tesco.com is joining with Bigmouth media for its search
engine optimization campaign. Tesco.com has a strong vision of becoming the world's best
multichannel retailer, making on its leading position as the largest and most profitable online
grocer globally.
E-mail Marketing: 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.
Online Advertising: 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. 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 (Heller, 2010). They added social strategy of the company 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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TASK 2
P3. Explanation of benefits to customers of a business using internet marketing
Internet marketing provides different benefits to consumers, Customer Service Good
customer service is a benefit from a customer shopping with a business who uses internet
marketing. This is because the online services will be quick and easy and therefore satisfactory
towards customers (Gautam, 2012). Dynamic Pricing A benefit of a customer shopping with a
business who uses internet marketing is that hey can experience dynamic pricing. dynamic
pricing is when a price of a product or service changes due to certain actors such as changes in
the economy, seasonal changes etc. This means customers who shop online can save money on
these circumstances. 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, Tesco has a service called click and collect¹. This
service allows customers to do their shopping at Tesco 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. This means they will not have to
go to the shop itself and physically walk around with a basket trying to look for products. This
would especially benefit customers who don't have time to shop in the store (Gangeshwer, 2013).
As well as that, the transaction of paying for their shopping will be very quick. 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.
TASK 3
P4. Benefits and opportunities to business of using internet marketing within marketing mix
Profits and opportunities are given under these points of online marketing within
marketing mix:
Product: Tesco can make query from it's customers regarding to products to make more better
according to their targeted market. By this they manage interest of customers in their products
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and it help to TESCO retain the customer. From this the opportunity that TESCO shall receive
from customer retention because consumers would not need to scroll through products which are
in their interests (Fawzy and Dworski, 2010). This can help them increase their sales and profits
this will ultimately lead to the business increasing by size and scale.
Place: TESCO have a great presence on search engines such as Google and Bing you just have
to type in on Google or Bing TESCO and the official website comes up on top the search engine
benefit that they can reach a wider audience and also this will make it easier for customers to
find their website online faster. The opportunity from this is that they can have a slighter edge
than their competitors.
Price: TESCO differentiate their prices by placing a tool bar where customers can select their
price range such as higher to lower or lower to higher. This helps the business retain the
customer as they do not want to be scrolling through hundreds of products which are not in their
price range. One of the key opportunities for cited company that they are having all types of
products for different people.
Promotions: In addition to this the organisation also promotes through its own website using a
few features. One being a static rolling image presentation at the top of the website, various
images is used for promotion; one is even used to promote their Facebook page (Fagerstrøm and
Ghinea, 2010). The opportunity for TESCO from promoting online is that their costs shall go
low this will result in the profits for the business increasing due to less costs.
People: TESCO provides details such as their phone number and email customer assistance, this
allows customer to receive best customer service which will result in the customer becoming
loyal to the company. The opportunity from this is that the customer would become a frequent
customer this will result in cited company increasing their customer retention.
Process: TESCO have personalised buying process online for customer by providing them with
interactive shopping baskets and details on delivery this will keep the customer happy (Hung and
et. al., 2012.). The opportunity for cited organisation having a fast process of purchasing shall
lead to the business increasing its sales.
Physical Evidence: TESCO allows user to have their own account, this is personalised
rewarding customer. This improves one to one relationship between business and customer in
addition to maintaining a positive user experience online. The opportunity that TESCO shall
have from this is that the customer would be retained within the business.
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P5. Use of internet marketing to make a selected business more efficient, effective and successful
Online marketing is making TESCO's business 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 are
just buying a few and therefore they can make the most profit possible (Corley, Jourdan and
Ingram, 2013). Their pricing is effective as they offer a wide range of products at different
prices, so that people with different budgets can find something on their website, which also
means that they can reach a wider audience. Derby house is efficient when it comes to
promotion, as they always offer promotions of products, which encourages people to buy
products. TESCO also is efficient with promotion, as they send out promotional e-mails offering
you products, that they think you will like based on your previous purchases. So in above
mentioned ways cited organisation is increasing their business.
P6. Potentials challenges of globalisation facing a business when using the internet marketing
A challenge of internet marketing is security. An online business like TESCO 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. The 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 (Christiansen, 2011). Another challenge of internet marketing
can be the information a business puts on the website. When creating a website, a business has to
be careful of the content that they put on the website. One of the challenges of internet marketing
is the costs. Costs of setting up a website can be quite expensive, as you have to consider things
such as, the domain name; protection of the website; people looking after the website; designing
the website; hosting and staff to look after the consumer’s requests and query’s.
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 site and TESCO online store 24/7 which is efficient
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and meets the needs and wants of customers. Internment marketing also enables TESCO to
identify their markets and allows cited company to do product research. As well in order to
attract their potential customers and meet their wants and needs via the online business as they
have their website which allows customers to write their reviews and suggestions as well as
disadvantages (Jobber and Ellis-Chadwick, 2012). Therefore there are many disadvantages to
internet marketing such as regularly updating their website to attract customers as well as the
difficulty that many customers may not have access to the web or may not know the procedures
of using it.
Businesses worldwide want to create a close bond with their customers which provides
customer satisfaction and a business to customer relationship which provides loyalty, trust and
profit as well as a competitive advantage. If a business such as TESCO offer good customer
service and customers are pleased with their service as well as delivery, products etc. then they
may always shop with TESCO due to their convenience and good customer service. Internet
Marketing allows business to evaluate demand and see whether the strategies they use are of
good customer satisfaction.
CONCLUSION
Above presented report has been concluded role of internet marketing in a business to
improve their products effectiveness for their targeted customers. Internet provides a better
communication in between company and consumers so by this a company can make more better
products and services accordingly.
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REFERECES
Books and Journals
Christiansen, L., 2011. Personal privacy and Internet marketing: An impossible conflict or a
marriage made in heaven?. Business horizons. 54(6). pp.509-514.
Corley, J.K., Jourdan, Z. and Ingram, W.R., 2013. Internet marketing: a content analysis of the
research. Electronic Markets. 23(3). pp.177-204.
Fagerstrøm, A. and Ghinea, G., 2010. Web 2.0’s marketing impact on low-involvement
consumers. Journal of Interactive Advertising. 10(2). pp.67-71.
Fawzy, L. and Dworski, L., 2010. Emerging Business Online: Global Markets and the Power of
B2B Internet Marketing. FT Press.
Gangeshwer, D.K., 2013. E-commerce or internet marketing: A business review from Indian
context. International Journal of u-and e-Service, Science and Technology. 6(6).
pp.187-194.
Gautam, R.K., 2012. Internet marketing usage by small Indian entrepreneurs: an exploratory
study of Punjab. International Review of Management and Marketing. 2(1). p.43.
Heller, R., 2010. Internet Marketing Method. U.S. Patent Application 12/505,252.
Huang, M. and Tsang, A.S., 2010. Development and current issues related to Internet marketing
communications in China. Journal of interactive advertising. 11(1). pp.1-10.
Hung, Y.H., and et. al., 2012. Online reputation management for improving marketing by using
a hybrid MCDM model. Knowledge-Based Systems. 35. pp.87-93.
Jobber, D. and Ellis-Chadwick, F., 2012. Principles and practice of marketing (No. 7th).
McGraw-Hill Higher Education.
Online
4 Key Elements Of A Successful Internet Marketing Plan. 2015. [Online.] Available Through:
<http://www.bluleadz.com/blog/bid/81754/4-key-elements-of-a-successful-internet-
marketing-plan>. [Accessed on 13 July 2017].
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