Internet Marketing: A Report on Tesco's Strategies and Impacts

This report provides an in-depth analysis of internet marketing within a business context, using Tesco as a case study. It explores the role of internet marketing in modern marketing, detailing how Tesco utilizes strategies such as Search Engine Optimization (SEO), e-mail marketing, online advertising, and social networking to enhance its market position. The report highlights the benefits of internet marketing for both customers and businesses, including increased customer reach, improved product information, and 24/7 accessibility. It examines how internet marketing integrates with the marketing mix (product, price, promotion, place, people, process, and physical evidence) and its impact on business efficiency, effectiveness, and success. Furthermore, the report addresses the challenges of globalization, particularly security concerns, in the context of online marketing. Overall, the report offers insights into the effectiveness of internet marketing in meeting customer needs and driving business growth.

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............................................................................................................................................4
P4. Benefits and opportunities to business of using internet marketing within marketing mix..4
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
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing a soul element for any organisation to attain their organisational goals in a best
manner. Most of the organisations are using internet marketing which is providing better benefits
to them in term of sales and revenues (Constangy, Marger and Brompton, 2015). This report is
based on TLC marketing business which will provide informations of those organisations which
are using internet marketing. This report will describe role of internet marketing in modern
business context, how a company use internet marketing it will describe benefits of use of
internet marketing for consumers. After it will provide information on benefits and opportunities
for company in marketing mix elements. At last it will explain use of internet marketing to
improve it's effectiveness and challenges of globalisation by using internet marketing.
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. The modern approach to marketing is referred to as the marketing concept.
The essence of the marketing concept is that the customer and not the product is the centre of
entire business activity. It is also referred to as the customer-oriented approach to business. This
concept explains the rationale for a firm’s existence in terms of its ability to satisfy some aspects
of consumer needs and recognizes the purpose of the business as to ‘create a consumer’
(Kennerley and Neely, 2003). Customers want satisfaction in the economic and social
justification of a company’s existence. Consequently all company’s activities in production,
engineering and finance, as well as marketing, must be devoted to, first, determining what the
customers wants are and then, satisfying these wants while making a reasonable profit. Internet
marketing plays an important role in these area of modern marketing concept:
 To determine the actual needs, wants and preferences of customers.
 To adopt the enterprise in such a way so as to deliver the desired satisfaction more
effectively and efficiently than its rivals.
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By using internet, companies which are using internet marketing can easily identify
customers needs which can help to them to make a better product6 and services which can help
to company to make a better customers satisfaction.
P2. How TESCO use internet marketing
TESCO is an idol organisation because they are retaining their market position for a long
time by using internet marketing tools, here is a description is given under these points:
Search Engine Optimization: It is a process which is very important to make attraction of
internet traffic to the website as much as possible. Mainly Search Engine Optimization is more
essential for the success of online business of any company (Kennerley, Neely and Adams,
2003). 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.
E-mail Marketing: It is a marketing strategy consists of the sending information of the products
and services to the potential customers through the e-mail. 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: It is the most effective process of advertising in which advertisements are
placing into the web site of the company. Tesco give focus on online advertising campaign for
the promotion purpose, for example promotion of flower and wine in Christmas time, chocolates
for valentine day etc.
Social Networking: 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 (Schepers and Van den Berg, 2007). 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. He added social strategy of Tesco 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
Online marketing provides a lot of profits to consumers and manufacturing & retail
companies as well. 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. Listed below are some of the benefits of the internet for
customer.
Customers Stay Updated: By using this customers can get updates of products and serv8ices
easily which can help to them to make a better communication to increase sales.
Instant Comparisons: One of the greatest advantages for the customer is that they can compare
products or services they wish to purchase from comfort of their own homes (Taipale-Erävala,
Heilmann and Lampela, 2014). Instead of having to visit a number of different retail outlets, user
simply has to open different internet window tabs to compare prices or features of the
product/service they wish to purchase. 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
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.
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TASK 3
P4. Benefits and opportunities to business of using internet marketing within marketing mix
Internet marketing has many opportunities that will benefit a business to reach a wider
audience, to reduce overhead cost of the business and to expand the company. Here is marketing
mix elements of Tesco with benefits and opportunities by using internet marketing:
Product: Mass customisation is where a product can be personalised to meet customers
changing needs at good prices in Tesco (Witkowska, 2007). A benefit of internet marketing in it
is that customers will be more satisfied as they will be able to purchase products that they want.
Opportunities is increased providing better products according to customers demands.
Price: It is an element which has a great value for Tesco, it provides a huge benefits like
dynamic pricing, company can provide details in market easily by using online marketing. It
provides opportunities to assess their target market and market their products at right price, in
order to get maximum sales and revenue.
Promotion: Internet marketing provides huge support in marketing of products of Tesco. Social
networking sites are used by Tesco to send out promotions and keep people up-to-date on
upcoming events and products. By businesses using social networks it means that they can gain
customer loyalty and opportunity of brand awareness is the potential to increase sales.
Place: It is a part of business where they can deal to customers so they are having their stores
and they are having their website to sale product via online selling methods. A benefit of search
engine optimisation is that there is an increased chance of them getting higher profits from more
sales being made, due to their website being high in the search results of a search engine. An
opportunity of SEO is that it can help a business to reach a wider range of people and a bigger
target audience.
People: Employees which are conducted in sales and promotions are having a their innovative
mind by which they can make changes in their internet marketing (Yagyasen, Darbari and
Ahmed, 2013). By this they can attract more people and enhance their sales.
Process: It is related to sale of products so in it Tesco can easily sale their products and online
marketing and sales makes a faster process of sales. Opportunities of process are that a business
can serve more than one person at a time online.
Physical evidence: Tesco is influencing people when entering an on their website and they can
adjust design features to change this such as colours and fonts. This is a benefit for Tesco that
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they can influence what mood people are in when they are on the website. Brand awareness is an
opportunity that businesses get, from internet marketing.
P5. Use of internet marketing to make a selected business more efficient, effective and successful
By using online marketing Tesco can be 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 were just
buying a few and therefore they can make the most profit possible. Use of online marketing
make them more effective as a business can get all stock that they need at one time and from one
place (Mitsopoulos, 2014). This means that they can have high stock levels so that they won’t
keep their customers waiting for products, which may get them a bad reputation and may cause
consumers to not return to the business.
P6. Potentials challenges of globalisation facing a business when using the internet marketing
Online marketing provides a lot benefits to Tesco but it becomes huge challenge to
company which is security. An online business 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. A 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.
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 the site. TESCO online store 24/7 which is efficient
and meets needs of a customers (Arasti, Zandi and Bahmani, 2014). Internment marketing also
enables to company to identify their markets and allows to them to do product research as well in
order to attract their potential customers and meet their wants via online business. As they have
blogs on their website which allows customers to write their reviews and suggestions as well as
disadvantages and therefore there are many disadvantages to internet marketing such as regularly
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updating their website to attract customers as well as difficulty that many customers may not
have access to the web or may not know the procedures of using it.
CONCLUSION
The above concluded report provides details up on online marketing of Tesco which is
using it effectively to increase their business. Internet provides them a lot of benefits to
consumers and as well as to company to use marketing mix elements in a better way. But it
delivers a lot of challenges to organisation as they are working in globally.
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REFERENCES
Books and Journals
Arasti, Z., Zandi, F. and Bahmani, N., 2014. Business failure factors in Iranian SMEs: Do
successful and unsuccessful entrepreneurs have different viewpoints?. Journal of Global
Entrepreneurship Research. 4(1). p.10.
Constangy, H.W., Marger, E and Brompton, A., 2015. CHANGING BUSINESS
ENVIRONMENT.
Kennerley, M and Neely, A., 2003. Measuring performance in a changing business environment.
International Journal of Operations & Production Management. 23(2). pp.213-229.
Kennerley, M., Neely, A. and Adams, C., 2003. Survival of the fittest: measuring performance in
a changing business environment. Measuring Business Excellence. 7(4). pp.37-43.
Mitsopoulos, M., 2014. Manufacturing, competition and business environment: removal of
obstacles—Opening to international competition. Competitiveness for growth: policy
proposals. Hellenic Bank Association. Athens. pp.161-177.
Schepers, P and Van den Berg, P.T., 2007. Social factors of work-environment creativity.Journal
of business and psychology. 21(3). pp.407-428.
Taipale-Erävala, K., Heilmann, P. and Lampela, H., 2014. Survival competence in Russian SMEs
in a changing business environment. Journal of East-West Business. 20(1). pp.25-43.
Witkowska, J., 2007. Foreign direct investment in the changing business environment of the
European Union’s new member states. Global Economy Journal. 7(4). pp.1-30.
Yagyasen, D., Darbari, M. and Ahmed, H., 2013. Transforming non-living to living: a case on
changing business environment. IERI Procedia. 5. pp.87-94.
Online
Neil Kokemulle, 2017. What Are Internal & External Environmental Factors That Affect
Business? [Online]. Available Through: <http://smallbusiness.chron.com/internal-
external-environmental-factors-affect-business-69474.html>. [Accessed on 20th July
2017].
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