An Analysis of Tesco's Internet Marketing Strategies and Impact

This report provides an in-depth analysis of Tesco's internet marketing strategies. It begins with an introduction to internet marketing and its role, followed by an examination of how Tesco utilizes online platforms for its business operations, including online grocery sales and customer service. The report explores the benefits of internet marketing for both customers and the business, such as cost-effectiveness, 24/7 availability, and increased customer satisfaction, along with opportunities within the marketing mix. It then discusses the efficiency, effectiveness, and success that internet marketing has brought to Tesco, including supply chain efficiencies and customer power. Finally, the report addresses the challenges of globalization that Tesco faces in its online marketing efforts. The report is well-structured and provides a comprehensive overview of the subject matter, supported by relevant references.

INTERNET MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Role of Internet marketing ....................................................................................................3
P2 Tesco use internet marketing.................................................................................................4
TASK 2............................................................................................................................................5
P3 Benefits to customers using Internet marketing.....................................................................5
TASK 3............................................................................................................................................5
P4 Benefits and opportunities to business by using online marketing........................................5
P5 Online marketing has Tesco more effective,m efficient and successful ...............................7
TASK 4 ...........................................................................................................................................8
P6 Challenges of globalisation facing Tesco..............................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
.........................................................................................................................................................1

INTRODUCTION
Internet marketing or online marketing, refers to advertising and marketing efforts that
use the web and email to drive direct sales via electronic commerce, in addition to sales leads
from web sites or emails. Tesco PLC is a British multinational grocery and general merchandise
retailer. Originally a UK grocery retailer, it has diversified geographically since the early 1990s
and into areas such as the retailing of books, clothing, electronics, furniture, toys, petrol and
software, financial services,telecoms and internet services (Roberts and Zahay,2012). In this
report, mentioned about the role of internet marketing and how this organisation uses Internet
marketing. There are some benefits of online marketing to customers. By using this online
marketing, there will be some benefits to this company. And this made an organisation more
efficient and effective. Sometimes, company faces some challenges of globalisation while using
online marketing.
TASK 1
P1 Role of Internet marketing
Tesco uses the internet banking and in context of modern marketing there are some roles
of this online banking. Marketing is widely produced and developed online very much
nowadays. 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. Internet is the fastest
growing communications method and it’s currently available to over a million upon millions of
people around the worldwide.
The internet marketing introduces the products and services online. Tesco, 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 (Shih Chen and Chen, 2013). 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.
P2 Tesco use internet marketing
Supermarket giant Tesco is the public retailer of the groceries, consumer goods, financial
services and telecoms. It sells food and drinks in its store and provides the services like clothing,
consumer electronics, telecoms, home, health, car insurance, dental plans, retailing and renting
DVDs, CDs, music downloads, internet services and software (Christiansen, 2011). It is also
known as the world's largest online grocer having an annual turnover of one billion pound online
in the United Kingdom.esco started providing online services to its customers from local stores
using internet service in 1995. It also started its own Internet Service Provider (ISP), tesco.net, as
a source of connecting the online delivery service with internet access facilities. In United
Kingdom this company has more online customers then other supermarket chain. Online system
of this organisation is very simple and more convenient for the customers who are interested to
shop online and get delivery to their own door. It provides approximate time of delivery to its
customers which ensure that someone is home to collect their items within the given time frame.
Customers can pay the purchased amount through online. Most of the customers are kin to buy
online grocery products daily (Fritz, 2013). It has also made more complicated software to
manage the collection point and provide delivery of the items to its customers. Development of
online services has many marketing benefits too. From the information which is recorded
through online sell helps to find out what items are in high demand; what items need particular
types of marketing and promotion; how much time customers invest to interact online and
actually what their demand is. Information which is recorded in the computer database can also
provides feedback to the Tesco on rate of satisfaction and different response of the different
customers. The aim of this organisation is to increase its retailing services range as well as
tesco.com including telecom to one billion pound in profit. To achieve this strategy, it is

planning to make mortgage products or even current accounts, looking the present economic
crisis, it will be the opportunity to break in to the great and global market.
TASK 2
P3 Benefits to customers using Internet marketing
Now a days, the customers use online marketing because it is time consuming and cost
effective. Customers buy and sell the products or services without going to market. So, it is easy
to consumers. Below is a list of advantages of internet marketing for customers.
Cheaper and more flexible than offline advertising: Internet Marketing is cost effective as
businesses will not have to worry about any travel, postage, printing or any other costs which
makes it cheaper compared to traditional marketing (Tsai and Cheng, 2012). The advantage that
this will provide to customers is that the businesses will have more money that they could invest
into providing better customer service.
24/7 presence: Another advantage of internet marketing for customers is that they can
shop anywhere and time of day that they want as long as they have access to the internet.
Therefore, Tesco operating hours will be 24/7 and this is a good method of customer service.
This is because it is easy and simple to do, it also provides customers with convenience as they
can shop whenever they want and they can purchase anything they want to and this is at the
comfort of their home.
Add value and satisfaction: Internet marketing can help businesses to gain customer
satisfaction and loyalty, this is because internet marketing can be measured. At Tesco, they will
be able to identify how much demand there is for the product in the market. This can be done by
the business monitoring how many people are visiting the website (Omar, Bathgate and
Nwankwo, 2011). This organisation try to provide their customers with value and satisfaction by
selling products which have been seen on celebrities at cheaper prices, they also sell products for
both genders.
TASK 3
P4 Benefits and opportunities to business by using online marketing
There are some benefits and opportunities that Tesco use their internet marketing within
the marketing mix. The internet is a place which offers many opportunities for businesses,

however it also offers challenges due to it being an increasingly global marketplace.
Benefits and opportunities of internet marketing within the marketing mix:
Price
Benefits
This company has complete control over how they price their products. It has to set fixed
prices for some products such as; electronics, make-up products etc. This is because these
products are expensive therefore they need to make profit on them still (Bailey, 2011). Using
their website to stand out is another benefit for Tesco, seeing as the supermarket industry is huge
and extremely competitive.
Opportunities
It offers the availability of food to buy immediately which is to maximise their shelf life.
The longer the shelf life, the better quality the product is however, this depends on the type of
products as some products run out quicker than others such as; fruit, meat. If the business didn't
use internet marketing strategies like updating their website frequently to keep it modern, then
competitors will be less interested in buying from this organisation because they will go to the
supermarket which has the most up to date website because they feel they are more appealing.
Product
Benefits
Using internet marketing allows extra and additional product information online so that
customers can make an easier decision. Customers like this because, obviously when buying
online you can't see the product, however if there is additional information on all of products this
will help customers to understand the products more which is more useful for customers and
beneficial for organisation because they will get more sales.
Opportunities
Being online allow Tesco to display their products easier and appealing, because in store
there is always a risk of not having enough space, being too cluttered, not having enough stock to
to fill the store etc. It could use a stock checking device in order to check for different sizes of an
item if people needed (Salehi, et.al., 2012). This is positive for company because it allows
customers to be able to ask staff in store for another size and they will be able to buy it if its
available.
Place

Benefits
Having internet marketing is essential now a days for businesses if they want to be
successful because mostly everyone is using the internet now which is how things get spread
almost instantly. Another benefit for organisation by using social media sites is that customers
can leave reviews, complaints and feedbacks on their page for the business to see and this can
help them to improve their business.
Opportunities
The opportunities arise for Tesco's fan base to get wider and reach a greater field of more
people.esco could seek to create a 24 hour availability of their services and products, which
makes them more easily available (Sweeney, Dorey and MacLellan, 2015). This is a great
opportunity to benefit because their store is not open 24 hours which means people cannot access
certain things they may need to purchase which means they are losing out on sales.
Promotion
Benefits
Operating Tesco's website is much cheaper than maintaining the physical store because
the company has to pay for the up keeping of the physical store as well as various things such as
electricity, rent etc. If their are any promotions they want to offer, it is easier to spot out on their
website because its all in one place because people may miss the offers in store because it has a
big store.
Opportunities
To get more promotion and advertising across their website, they could use banners
across the website to catch peoples attention. It could advertise their products is by using online
websites like YouTube, where they can pay to have their advert play at the beginning of specific
videos which are compulsory to watch, which makes people watch the adverts.
P5 Online marketing has Tesco more effective,m efficient and successful
Internet marketing has offered business more efficiency, effectiveness and successfulness
as with internet marketing supply chain efficiencies have been offered as buying and selling their
products and services.
Internet Marketing has allowed organisation to procure online with this they can purchase
the materials instantly making the process of their production of finished goods quicker which
offers them the efficiency of time saving (Andreopoulou, et.al., 2014). Also internet marketing

has offered customer power as they have a wide range of choice in buying materials which has
made them efficient in cost saving as they can procure form cheaper suppliers and be in contact
with new suppliers which they wouldn’t have reached offline. These efficiencies have made this
company effective as they know produce goods quicker and effectively sell them online for
private customers to buy. Also with internet marketing it is more successful as they gain
immediate cash sales before delivering the product.
Price is another efficiency provided by internet marketing for this company as with
internet marketing this company is able to have more choice in price as the internet will have a
variety of suppliers which it wouldn’t have been able to reach to offline (Chen, 2011). Procuring
online has given Tesco disintermediation which has helped them reduce cost, this gives them
effectiveness in buying as online processes are much faster.
TASK 4
P6 Challenges of globalisation facing Tesco
When focussing on competition through global website visibility, many challenges are
faced by company using internet marketing.
Technological change- 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. 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.
Security of site information and payment systems- 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 (Tse, 2013). Internet is not always trustworthy such as
‘others’ might be able to see or gain access to the site and the payment systems.
Low customer confidence in payment security- This is because some customers are
unable to believe that they are giving their money to the right business etc. Customers are
concerned about purchasing from the internet as they have to give out vital and most importantly
heir personal details that can lead to other problems such as theft (Shaw, et.al., 2012). Online
businesses can only receive payment through customer’s credit or debit card which many people

are reluctant to give. Also some people may have concerns of believing the products are ‘real’,
undamaged and so on which adds to the challenges faced by online businesses today.
CONCLUSION
It is concluded from the above report that internet marketing helpful in buying and
selling of products or services without go anywhere. In this report concluded that Tesco uses
Online marketing to provide the better customer services to its clients. Through internet banking,
this company provide large product at the reasonable price. And it is beneficial for company.

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ONLINE
6 Benefits of Internet Marketing,2017. [Online]. Available through: <https://clicktecs.com/6-
benefits-of-internet-marketing/>. [Accessed on 7th June,2017].

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