A Comprehensive Report on Internet Marketing Strategies for Tesco PLC

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Internet Marketing
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TABLE OF CONTENTS
INTRODUCTION.....................................................................................................................................3
P1. ROLE OF INTERNET MARKETING.............................................................................................3
P2. USE OF INTERNET MARKETING BY ORGANIZATION.........................................................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
P5. EXPLAIN HOW INTERNET MARKETING HAS MADE A SELECTED BUSINESS MORE
EFFICIENT, EFFECTIVE AND SUCCESSFUL...................................................................................7
P6) EXPLAIN THE CHALLENGES OF GLOBALIZATION FACING A SELECTED BUSINESS
WHEN USING THE INTERNET AS A MARKETING TOOL............................................................7
CONCLUSION..........................................................................................................................................8
REFERENCES..........................................................................................................................................9
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INTRODUCTION
Internet marketing is way of advertising and putting marketing effort through proper use
of web, email to have direct increase in sale. It can also be said that it is marketing effort that put
to have increase in sale via electronic commerce. It diversified in web marketing, email and
social media marketing. In addition to this, report is all about understanding how the companies
are using internet and its techniques for the promotion of their products. It will also discuss how
company can make this medium more effective using various other techniques and elements.
Tesco Plc is being considered as a organisation in order to have better understanding about the
subject.
P1. ROLE OF INTERNET MARKETING
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 (Bandyopadhyay, 2011).
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.
Many things nowadays are used to be done in the physical world are now done online
nowadays. For example, taking a loan from bank, searching property, shopping online, and even
nowadays people are finding their life partner online via dating app orwebsite. Which allows
people to work at their own home and they don’t need to go out, which gives more facilities to
customers, Marketing is widely produced and developed online very much nowadays (Edward,
2010). The reason of this is because so many people are using internet now that it would be a
hugely missed opportunities if people didn’t uses the internet or marketing (Emerald, 2003).
Internet is the fastest growing communications method and it’s currently available to over a
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million upon millions of people around the worldwide. The internet is used with many ways
example, advertising banners, videos advertising, and even the pop ups are the common
advertising methods is being done through internet marketing. And the companies are using
better ways to advertise e.g. using most popular websites to advertise their service or product.
P2. USE OF INTERNET MARKETING BY ORGANIZATION
Tesco PLC is a multinational grocery and general merchandise retailer headquartered in
Cheshunt, Hertfordshire, England, United Kingdom. ¡t is the third largest retailer in the world
measured by profits and second-largest retailer in the world measured by revenues. It has stores
in 12 countries across Asia, Europe and North America and is the grocery market leader in the
UK (where it has a market share of around 30%), the Republic of Ireland, Malaysia, and
Thailand.
Internet marketing provides a wider customer base as new customers can come across the
website threw internet ads and much more.
24/7 shopping online allows Tesco to generate constant cash threw out the whole day. There are
many reasons why 24/7 shopping online is very useful (Halal, 2003). One reason is that it allows
customers who don’t want to leave the house for reasons such as disability or simply not wanting
to go out there house. Another reasons why 24/7 shopping is promoted is that it allows better
value to customer interaction.
P3. EXPLAIN THE BENEFITS TO CUSTOMERS OF A BUSINESS USING
INTERNET MARKETING.
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.
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
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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 (Lowley, 2000). Many retailing websites offer the facility
where different products they sell can now be easily compared. There is also price comparison websites
that customers can use to get the best possible price for their products.
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 they are
obtaining a good service online (MacLeod, 2000). Some sellers also allow the consumer to choose the
delivery address for each purchase and select their own delivery date and time.
P4. DESCRIBE THE BENEFITS AND OPPORTUNITIES TO THE
BUSINESS OF USING INTERNET MARKETING WITHIN THE
MARKETING MIX OF A SELECTED BUSINESS.
Internet marketing is important because it aligns with the way Tesco consumers make
purchasing decisions. Studies by analysts such as Gartner indicate that increasing numbers of
consumers use social media and research on mobile Internet to carry out preliminary product and
price research before making final decisions. Internet marketing enables you to build relations
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with customers and prospects through regular, low-cost personalized communication, reflecting
the move away from mass marketing.
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 Tesco 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.
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.
Social
Internet marketing enables you to take advantage of the growing importance of social
media. An article on the Harvard Business School Executive Education website highlighted the
link between social networking and online revenue growth. According to the article, a group of
consumers that responded most strongly to the influence of social networks generated increased
sales of around 5 percent. You can take advantage of this type of influence by incorporating
social networking tools in your Internet marketing campaigns.
Here are some great features and opportunities of using internet marketing.
Around-the-clock access.
What time does your retail location close? 5, 7, 8 p.m.? The internet is open 24 hours a day, 7
days a week. Shoppers can browse your site at any hour of the day, and as a marketer, you can
digitally 'touch' consumers at all hours through email, online and social media marketing.
Greater exposure.
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When you market online, you are literally introducing your business to thousands of people who
may never have heard of your brand due to geography or accessibility. With internet marketing,
you could be based in Ohio, and reach consumers on the other side of the world with your
brand's message and buying access to whatever you offer.
Low cost.
Doing business and marketing-related tasks Tesco online are a relatively low-cost, high-reward
way to promote your business, products or services. Ads such as sponsored posts on social media
or Pay-Per-Click ads inside of search engine results can be had for pennies on the dollars. They
can also be targeted more specifically including by gender, location or age, compared to more
expensive, broad reaching, traditional marketing efforts.
P5. EXPLAIN HOW INTERNET MARKETING HAS MADE A SELECTED
BUSINESS MORE EFFICIENT, EFFECTIVE AND SUCCESSFUL.
Internet marketing is very beneficial to all customers as it is successful in meeting their needs.
Internet marketing has many kinds of benefits that prove to be advantageous to customers because it
makes everything so easy for them, and allows them to fulfil their needs without leaving the house
(Winzar, 2003).
There are many benefits of Tesco internet marketing to customers that fulfil their needs.
One major way their needs are fulfil is 24 hour presence which allows customers to spend more
time shopping not worrying about closing times or them been turned away as its closing time.
Tesco are available to customers 24/7 which means customers can visit their website at any time
of the day, because there's no time limit. This has a big hand in meeting the needs of a customers
because normally a person will have to shop according to the closing and opening times of a
shop. But now thanks to internet marketing customers are allowed to do most of their purchasing
through the internet, and that to when they are free with time to spend shopping and relaxing at
the same time. Internet marketing allows customers to shop according to the time most suitable
for them. There is no time limit or any other restrictions, so customers can do what ever they
want, when ever they want, without worrying about closing times.
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P6) EXPLAIN THE CHALLENGES OF GLOBALIZATION FACING A
SELECTED BUSINESS WHEN USING THE INTERNET AS A
MARKETING TOOL
While the internet offers benefits and opportunities in regards to marketing, it also throws
up many challenges generated by an increasingly global marketplace. These challenges,
businesses, have to be prepared for. Businesses such as Tesco must go through the challenge of
facing potential threats online on the internet. The first challenge that Tesco and any other
similar organisation will have is facing is that they can’t communicate with the customer
directly. Most of communication will be done through internet.
Technology is always changing or updating to work better or maybe to look better, to attract more
people etc. Nowadays technology is used nearly everywhere and has become very popular. Computers are
one technology that is used for many, many reasons by millions of people throughout the world. The
internet is very important and many functions within the internet are used and updated/added to the
internet to make ‘life easier’. Businesses that are based online such as Tesco has a great advantage of
using these functions but ASOS also are faced with the changes being made (Rowley, 2002). Customers
like to see things that are modern and ‘in with the trend’. Home pages for example are the first page
people will see and it has to be importantly eye catching and highlighted in the right way. If the
technology used behind computers is changed the employees will have to keep to the challenge and get
trained to KNOW the changes and use it within the website.
This issue is a big one, as security online is important. There are many unreliable sites
that contain many viruses, hacker access etc. Online businesses are faced with this concern all
the time as it involves customer’s personal details and also the businesses itself. Internet is not
always trustworthy such as ‘others’ might be able to see or gain access to the site and the
payment systems.
CONCLUSION
On the basis of the research report, it can be concluded that Internet marketing and use of
social and digital media marketing tools are beneficial for the Tesco in terms of increasing
customer’s base and profit margin. By using e-CRM and PPC marketing plan, company can
draw more customers towards brands and implement their sales promotion activities in a proper
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way. By using these techniques, firm can maintain history of future or repeated sales so that
better services would be offered to its customer at right time at right price.
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REFERENCES
Journals
Bandyopadhyay, S., 2011. Competitive Strategies for Internet Marketers in Emerging Markets.
Competitiveness Review: An International Business Journal. 11(2). pp.16 – 24.
Edward, L., 2010. Marketing on the Internet. International Journal of Manpower. 21(2). pp.141
– 147.
Emerald., 2003. Will Web surfers pay to point and click. Interlending & Document Supply.
31(1).
Gerjets, P., 2012. How Search Engine Users Evaluate and Select Web Search Results. Emerald
Group Publishing Limited. 10(4). pp.251 – 279.
Halal, W., 2003. Ecommerce forecasts: a return of the dot.com boom. On the Horizon. 11(1).
pp.23 – 25.
Lowley, S., 2000. The evaluation of WWW search engines. Journal of Documentation. 56(2).
pp.190 – 211.
MacLeod, R., 2000. Internet Today! Email, Searching & the World Wide Web. Library Review.
49(5). pp.252 – 260.
Martinez, P., 2013. Overlapping factors in search engine optimization and web accessibility.
Online Information Review. 37(4). pp.564 – 580.
Rowley, J., 2002. Information marketing in a digital world. Library Hi Tech. 20(3). pp.352 –
358.
Rowley, J., 2002. Synergy and strategy in ebusiness. Marketing Intelligence & Planning. 20(4).
pp.215 – 222.
Winzar, N., 2003. Strategic Internet Marketing. European Journal of Marketing. 37(¾). pp.614 –
616.
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