P1: Describe the role internet marketing has in a modern marketing context
In this report, I will be describing the role internet marketing has in a modern marketing context. I will also choose two businesses and write their internet objectives, definition of marketing, and I will write how modern marketing is different to traditional marketing. I will also write how does internet marketing play a role in meeting customer’s needs, relationship marketing, and I will also include the seven P’s.
The first business I have chosen is Tesco plc (public limited company). This is an international company, which has branches in several different countries, such as: china, japan, Malaysia, Thailand, Mexico and many more (see image to find out which other countries Tesco operates in). Some of the branches are located in the UK in different areas, for instance: Thornton Rd- Bradford, The Strand- London, and Princess St- Manchester. Tesco was founded by “Jack Cohen in 1919”. Mr. Cohen started selling surplus grocery from a stall in east London. He made a profit of “£1 from a sale of £4 on his first day”.
Also, Tesco has more than “3,700 stores in the UK” and sells a wide range of products, such as: clothing, food, mobile phones, CD’s, books, makeup and many more products. This organisation also provides banking, insurance and tele-communications services. They provide their products and services in a building-stores and online. Their customers are: families, single people, local community, workers, and managers.
There are many different types of internet objectives, which a business can set for upcoming time. However, it’s important that their objectives are smart. For example: in 2017, Tesco’s online grocery sales had risen by “5%”, which means that their online objective for 2018 is to rise grocery sales by 7%. This is an example of smart objective because it is specific, as Tesco knows clearly what they want to achieve. It is measurable because Tesco uses its database to check the sales it makes on daily basis. It is achievable because Tesco’s employees provide good customer service and Tesco provides offers, which will help to achieve the objective. It is realistic because Tesco has been providing products and services to customers for so many years and realistically Tesco has many customers shopping online from many countries, which will help Tesco to achieve its objective. It is also time-related because Tesco has got one-year time to increase the sales by 7%.
Another example is to increase customer retention by 15%, Tesco already does this by giving Clubcard’s to their loyal customers, however, Tesco can retain more customers by giving special offers on most of their online products, which customers would buy and therefore come back to shop online again. Also, Tesco’s revenue for 2018 is “£57.5 billion”. However, the objective could be to increase the revenue to £57.7billion by 11% from internet marketing by the end of 2019.
The second business I have chosen is Oxfam. This is an international charity organisation, founded in “1942”, but formed in “1995” to help people in need and to finish poverty. It has seventeen organisations, which work together with the local communities throughout ninety countries. Also, Oxfam helps people to campaign with others to: end unfair trade, demand better health and education services for all.
The internet objective of Oxfam is to retain customers, this could be by 13%. For example: Oxfam has online shop where it sells products, however, it should continue to provide new products, which will keep the customers interested and they’ll shop more frequently and the benefit is that the money is used for a good cause- helping poor people. Another internet objective is to increase the sales of products by 10% to 20 to 35-year olds. Also, their objectives are smart as well. For instance: Oxfam uses internet to: “raise £42 a month for a year, which could provide clean safe water for 3 villages” (Oxfam website, link in bibliography). This objective is specific because Oxfam knows the accurate amount of donations it wants to receive from people. It is measurable because Oxfam will use the surveys and questionnaires to measure the total donations it has been receiving from past years and then compare the results at the end of the year, to see if it has increased the figures of donations. It is achievable, as it has been clearly planned. It is realistic because Oxfam has set clear objectives and knows the ways and activities it will take on to meet the objectives. It is time related, as Oxfam has set itself one-year time to receive the donations.
Firstly, marketing is when businesses market their products and services to their customers. In order to provide the right products and services, the management process has a huge responsibility of identifying, anticipating, and satisfying customer needs profitably.
Internet marketing is when businesses market their products and services online using technology. It is also about promoting, advertising, and making sales. There are many organisations that use internet marketing to make more profit and it also saves them time. Businesses can use internet marketing to provide their products and services to their customers by using a wide range of online services. Such as: social media (Facebook/twitter, Instagram, and Pinterest) and websites. Internet marketing is one of the easiest and quickest way for businesses to interact with their customers. For example: by using online chat system or emails.
The difference between traditional and online marketing:
Modern marketing is different to traditional marketing because modern marketing is more affordable and it saves time. Modern marketing methods are: social media, websites, pops and emails. Whereas, traditional marketing involves a long process to advertise products and services. However, it has many methods to advertise, some of them are: radio, posters, TV, newspapers and billboards.
Also, modern marketing provides services to customers 24/7, whereas, if you use leaflet to advertise then this could take a few days to be made and then post to people’s house and the cost of making and posting will be a lot. Therefore, modern marketing is much cheaper to advertise and to make more profit compare to traditional marketing. Moreover, traditional marketing is also known as ‘push marketing’. It can be interruptive at times for some people, for example: if you’re watching your favourite show on Television and suddenly an advertisement comes and some people may not like it. Whereas, internet marketing is completely different and it is known as ‘pull medium’, when using internet marketing customers make the decision to visit the website of the company, when they want, therefore, internet marketing is more effectively.
The role of internet marketing in meeting customer needs:
Internet marketing does play a role in meeting customer’s needs, for example: Tesco uses a website to provide products to customers. The customers don’t have to go in Tesco’s store to buy products, as everything is available online Some people may not have time to visit the stores, however, Tesco allows this type of people to shop online at any time they like. Also, having websites allows customers to have a better information about the products and services. They can take as much time as they want, before deciding whether to purchase or not. Tesco’s online marketing has increased the speed of service, for example: customers don’t have to wait in the queues to pay for the products, simply click on the product and order it within a few minutes.
Similarly, Oxfam uses internet to market their products and to meet customer’s needs by continuously providing brand new and second-hand products. Through internet marketing, Oxfam provides products with descriptions, which means that customer has a better information about the products and services. Internet marketing has also increased the speed of service, as people can order products and if they want to know more information about the product or service, then they can simply call the organisation (customer service helpline) and find out more information, instead of visiting the shop, which would take a lot of time and if Oxfam’s shop is busy, then customer may have to wait for a lot of time. Therefore, online service is quick and easy way to do the shopping.
Tesco and Oxfam provide personal services to their customer, for example: when customer purchase their products, then they call customers to get the feedback and to find out about the experience and whether the customers are happy with the product and service they received. Both organisations contact their customers by sending emails or making phone calls.
P1: Describe the role internet marketing has in a modern marketing context