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P4-Describe
the benefits and opportunities to the business of using Internet Marketing
within the marketing mix of a selected business.
Benefits
of internet marketing for the business
The internet presents businesses with great opportunities
to improve their marketing effort and gain competitive advantage.
Opportunities to access customers and marketers
Trading online gives businesses in both B2C and B2B, the
change to access new customers, in new marketers on a global scale. Web technology allows a business to present
products and services in detail, together with substantial supporting
information. Once this is done the business can use a well-planed website to
capture data about customers, such as their name, addresses telephone numbers
and email addresses. The business is
able to build up a database of customers, see what they previously purchase and
get back to them with offers and new released products. A website it itself a
promotional tool. Online businesses seek to create a look and feel the appeals
to the self-image of their target market.
Manu customers are shopping online these days, business
operating online have many benefits from doing so. Every time a customer
transacts with the company online the transaction is captured and it is used in
a number of ways. An organisation like Adidas is using the data in a number of
ways. First they analyse the information to find out most popular products sold
and secondly the data can be used to assist in segmenting their customers,
profiling them and sending customers promotions based on past buying.
The internet allows a great deal for price transparency
for consumers. This means they can compare prices easily between many potential
suppliers.
The most important benefits of internet marketing for a
business are access, availability and business efficiency.
Access - Cover more
frequent individualised communications to build relationships; use of
communications to promote special offers, product launches; new services; use
of purchase history to tailor offers to individuals, easier and cheaper to
alter adverts, quicker response times to changing market needs, better
information to guide stock holding
Availability -
increased range of customised buyer resulting in more accurate responses to
customer needs and wants. Use of
internet information to identify product development, opportunities for
immediate sales of products.
Business Efficiency -
use of internet to manage supply chain use
of electronic communications to reduce staff costs; opportunities for increased
sales from existing customers; opportunities to monitor competitor activity;
internet business opportunities e.g. use of paid-for promotion on websites,
through search engines
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Opportunities
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Benefits
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Globalisation -the business can expand on larger territories and gives opportunities
in increasing profits, improve efficiencies and reduce costs.
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Benefits of
globalisation are opportunity costs, trade terms,
balance trades, comparative advantages, changes in consumption and
production, and how much cheaper it is to purchase than to produce.
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Disintermediation-Instead of going through traditional
distribution channels, which had some type of intermediate (such as a
distributor, wholesaler, broker, or agent) Adidas is dealing with every customer
directly, for example via the Internet.
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Benefits of
disintermediation are that the company is saving money by cutting the middle
man.
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Personalisation-when customers log into their accounts can make their experience
unique. Adidas is offering special offers to that particular customer,
offering add on to their recent purchase or by allowing the customer to
personalise their own product.
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Adidas benefit from
personalisation is that personalisation allows the firm to create a better
communication and relationships with the customers and make them come back
regularly.
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Mass
Customisation- can customize products quickly for individual mass customizers can
Build-to-Order both customized products and standard products without
forecasts, inventory, or purchasing delays
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Mass customisation
allows the ordinary man or women in the street to acquire a product that has
been produced to meet their own particular needs yet at a competitive price
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Advertising- the most important tool in the marketing, opportunities that business
gain from advertising is that increase the sales for the company as they gain
more customers and it helps the company providing information regarding the
newly product launched.
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The advertising
benefit is that it informs the customer about new products, improves the sale
of a product and it is a direct communication with the customer.
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SEO-Adidas is paying for search engine optimisation so that their business
shows up on the first page when a customer is searching for tem.
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The benefit of
search engine optimisation is that it sows the rank of the business this
means that more people are finding the website.
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CRM- CRM systems are capable of
storing detailed information about each customer, such as their history of
orders, correspondence, survey responses, and marketing emails. Having such
information easily accessible can significantly improve the speed and quality
of customer service. This in turn gives employees more time to focus on
sales, marketing, and other priorities. Customer benefits are that the
organization knows what thereafter and they often receive emails with the
latest stock and promotion.
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The benefit of CRM
is that it improves the customer experience, it provides the business with a
complete picture of the sale, and it can can identify and target individuals with the greatest potential for
future sales
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Competitor Analysis
-the internet allows the business to analyse their
competitor’s online strategy, they can keep an eye on the new products
released, react to price changes.
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The benefit is it
tat the company can react quickly to a change into their competitors
strategy, and try to provide a service that allows to match or beat their
competitors.
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P5-Explain
how internet marketing has made a selected business more efficient, effective
and successful.
Opportunities
for business efficiency
The increasing availability of the web gives Adidas all
kinds of opportunities to speed up their interaction with both suppliers and
customers. Tis can lead to a number of efficiencies
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Supply
chain efficiencies
A business will always be both a buyer
and a seller, buying products from other businesses , buying product from
others and selling to others or private consumers. A company like Adidas has to
buy the materials it used before it can sell finished products. For business working with supply chain
creates smother faster ways of dealing with the firms they regularly buy
from. Many people across Adidas are
engaged in supply-chain activates, this involves delivering sales or services
to consumers, sipping product, negotiating wit suppliers, trade partners, managing
inventory tracking orders and any other tasks. The internet offers to Adidas a
chance to manage the supply chain, speed up suppliers and integrate businesses
along the chain
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Opportunities
to increase sales from existing customers
Businesses that adopt internet marketing
strategy do so because they can see the opportunities either to improve sales
with in the marketers they already serve or to enter complete new markets. As
internet penetration increases and more business uses online strategy the web
will become the accepted method for marketers.
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Opportunities
to monitor competitor activity
Adidas must constantly monitor their
competitors so that they can follow the
strategy and objectives that will enable them to stay competitive. In an increasingly global business
competitors come from anywhere. Adidas main competitor is Nike.
P6-Explain
the challenges of globalisation facing a selected business when using the
internet as marketing tool.
Wile the internet offers marketing benefits and
opportunities it also throws up many challenges generated by an increasingly
global marketplace. These challenges have to be prepared for.Businesses such as Adidas must go through the challenge
of facing potential threats online on the internet
The first challenge Adidas is facing is that they can`t
communicate with the customer directly. Most of communication will be done
through internet.
Payment Security
The internet offers the
chance to use direct channel of supply to clients or customers this process is
known as disintermediation in the tendency to cut out the middle man
Customers are often
concerned about purchasing products from the internet customers often here
stories of hackers scammers and therefore reluctant to give credit or debit
card details online it is a management policy how payments are taken how to
reassure potential customers that it is safe purchasing products online with
that business
Meeting
Customer expectation
The internet continues to raise customer expectations and
this is a challenge to all online business. The 24/7 availability and
convenience of the internet has been reinforced wit increased personalisation
and price transparency. More importantly
customers are starting to expect higher levels of reliability, responsiveness,
convenience and speed-speed in terms of time taken in visiting the website and
in delivery of items once the order has been placed.
Merchandise is becoming available in mass customisation
as it enables customers to enter personal measurements online before ordering
or to configure their machine such as a computer when their order it. The
challenge for online marketers is to anticipate and understand what customers’
expectation will be whatever the market context.
24-hours service online
A website is available 24 hours a day, seven days a week.
For service business this offer high advantages as clients with internet access
can use the service any time, anywhere. Adidas customer service is available
24/7 the challenge is that the website can crash. If the business website is
constantly crashing then the customers will not be able to find information
about the products and the business can miss potential sales. Another
disadvantage of having a website is bad publicity, If a customer is unhappy wit
the previously products purchased they may feel the need to write their
frustration online and refer the company website. Most of the businesses are
now on the World Wide Web and this might be difficult to reach the target
audience with your website.
Challenge of delivering
The internet
continuously increases customer expectations importantly customers are starting
to expect higher levels of reliability responsiveness convenience speed and
speed in terms of both time taken visiting the site and in delivery times once
the order is placed Adidas for example face the challenge of customers
expecting reliable and quick delivery and other customers expectations when
Adidas deliver a item for example a pair
of shoes if the number of days the customer will receive the product is stated
on the site 2 to 3 working days then delivery must be received by the customer
on the days given
“Problems
of channel conflict and disintermediation, low customer confidence in payment
security, challenge of delivering higher reliability and raised expectations,
managing overload of marketing feedback, volume of customer profiles (and
related complex analysis), keeping pace with market and technology changes,
challenge of constantly changing marketing goals in line with customer
expectations, ensuring maximum access via ISPs and search engines, site
security, payment method security, linguistic / cultural sensitivity,
additional legal complexity!”
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