unit 12 p3 m1

UNIT 12 P3



Explain the benefits to customers of a business using internet marketing

Within this assignment I will be explaining the benefits of internet marketing to customers. The two businesses I will be comparing and contrasting are Lister Chemist and Amazon.

Lister Chemist is a business which does not use Internet marketing as they do not advertise online because they do not have a website. On the other hand, Amazon is a business which use Internet marketing very excessively and efficiently.

Internet marketing is extremely beneficial to Amazon as it allows them to compare and select providers which mean Amazon can check their competitors website to compare their products etc. Price transparency, which means both the customer and the business can see every price a product is on a website because its available for everyone to see. This makes it easy for customers to compare businesses against each other. Prices in a business are stored in a database and robots are used to compare the prices. For example, Compare The Market works to find the cheapest car insurance using its database to find the cheapest. Customers like this because it gives them more bargaining power and allows them to get the cheapest price in one go without them having to search hard on their own. By having internet market, it enables customers the capability to set their own prices such as Ebay. Also, business to business and business to consumer markets the internet which provides comprehensive and up-to-date product information. Their are drawbacks of being online though, which are that the internet can be bypassed because the information is available to anyone which may make it not valid. Also, the customers are able to check specifications and make contact with businesses easily because of this.

It is cheaper if customers shop online because they save the cost of having to travel to the store and it will save time. If you go into a shop, you have to look for the product you want or are looking for however, online you just search for the product you want and it comes up straight away. Internet marketing is extremely straightforward and an easy shopping option. As we can see on Amazons website it has a catchy and colourful theme which is eye-catching to the customers. Amazon have an option for when you can get your delivery delivered to you which makes it easier for the consumer and makes them more cooperative.

Another benefit of using internet marketing is that the information and data on businesses can be updated and changed instantly which means customers can notice if their are any minor or major changes quickly. This information may include stuff like e.g. prices for flights, sale prices etc. Amazon adjust their data and information on their website when necessary and customers will notice these changes as soon as they access the website. For example, the first lot of flights that are released are going to be very cheap and released early however, they change and the price differs the nearer the flight gets which means customers can instantly get if the prices have changed by looking online. This is beneficial because customers don't have to constantly go into store or call up, they can simply check on their website or use an app if they have. This will also benefit them because they can decide if they still want to pay the increased price rather than travelling to a store to be surprised and find out the price for something has increased and you may not want to purchase it.

Dynamic pricing is a benefit for customers who shop using internet marketing because this is when a price of a product or service changes due to e.g. seasonal changes, economic changes etc. It enables online businesses to adjust prices quickly according to market conditions. For example, when you book a flight, the seats are cheap at the beginning of a sale but the price increase nearer to the time of the flight because fewer seats are available. This allows customers to save money and time. Amazon use dynamic pricing when they offer different prices for clothing items that are different sizes e.g. cheaper prices for smaller sizes. Amazon have sales where products are on offer and some of these savings will be valid online online which would entice customers and make them use the website to purchase their products as well as gaining brand awareness because people will tell their friends. This is especially useful around sale times like the holidays when stores can be busy therefore you don't need to worry about the hassle of going into a store when you can simply order it online. Lister Chemist don't use internet marketing which is a disadvantage as they can not use dynamic pricing which would increase their sales because they could price their products differently which would entice customers.

Responsive transactions are when customers get quick responses which allows Amazon to have positive customer feedback. This allows good customer feedback because customers get satisfaction e.g. knowing they have made a booking and receive evidence of doing this or if they have ordered a product and they get an email verifying the delivery has been shipped. This is good because the internet is a convenient place where it can be accessed from any location or area e.g. abroad. An example of this is; Tesco, they have 'click and collect' in which you can do your shopping online. This benefits customers because they do not need to go into a physical store and walk around doing the shopping themselves with a heavy basket or trolley. Instead they can simply search or items online and click one button and this can be done anywhere and at any time. This also benefits customers who cannot physically go into the store or may live far from a physical store. It has many benefits although the biggest benefit is saving time scanning all the products in at the till as oppose to online you click all the products you want and it automatically goes into your basket and is paid for. Amazon have many payment methods also to make it more convenient for shoppers whereas Lister Chemist just have card and cash payment. If customers wanted a response from Lister Chemist they would have to go through the trouble of finding out their opening hours in order to phone them or going into the store in which your query may not be answered there and then or it may take a few days for them to get back to you.

Having good customer service is very important to internet services in order to stay competitive amongst their competitors. This is because, if a store online is clear and easy to understand then this will increase repeat purchases because customers will want to go back onto the website. An example of this is Amazon, where they have welcome signs showing when you first click on the website to make customers feel special. Another way customer service is used within Amazon is by having a review section where customers who have previously purchased a product or service can comment their feedback. Also, Amazon has FAQ which stands for 'Frequently Asked Questions' in which there are the most asked questions that customers have asked Amazon before and put them onto the website for customers to look at. Customers like this because they feel like they are getting noticed and that Amazon take their feedback into consideration. It will also help with potential customers who are willing to purchase a product or service if they look at the reviews because they can see what other customers thought about it and if its worth buying. Having internet marketing means it is available 24/7, there is no time limit as Amazon websites don't close and no need to worry about it being shut on bank holidays or open certain times a day. The customers won't be disappointed because they will be able to visit Amazons website at any point.

Lister Chemist have opening and closing hours which mean they are shut certain times of the day and they are also shut on bank holidays and various other holy days which make it inconvenient for some people. Lister Chemist are also only located in one area, which make it hard for people to travel to and it may cost them too much to travel that they don't think its worth travelling for which makes Lister Chemist lose out on sales. Whereas, if they used internet marketing people could order what they wanted online and it would get delivered to them and they wouldn't need to worry about travelling or when the store is open.

Customers are able to log their complaints on websites which gives customers a chance to voice their opinions and give their thoughts on the products or services. As well as complaints, they can also log their reviews and provide a collective voice. A fee is paid to a complaints company which contact the business and explains the customers concerns in order for the business to improve their business. The internet enables customers to participate in one to one chats or group chats with other people which enables customers to voice their opinion and get immediate response to questions they may have about products, services, overall business etc.

UNIT 12 M1

Analyse the benefits of internet marketing to customers



Dear Maya,

In this letter I will be explaining and analysing how the internet can enhance the marketing mix of a business. Also, I will be analysing how internet marketing activities build on conventional offline marketing principles and offer customers greater freedom of choice. As you have a degree in Business Studies, which was achieved around 25 years ago, it is obvious you have a wide range of knowledge about marketing however, not so much about the modern internet marketing which is why I will be explaining the benefits of using internet marketing.The two businesses I will be focusing on are Lister Chemist and Amazon.

There are multiple benefits for using the internet to enhance the marketing mix of a business to customers.

Using internet marketing is a lot cheaper than print marketing or marketing via TV, Radio etc. This is because when businesses advertise using print marketing they have to pay for the production of the materials and equipment. If you advertise using the TV or Radio, this is expensive especially to get onto a good channel or radio station which will actually be beneficial. Like Amazon has its own website, it is free to advertise on their own website because you don't have to pay for anything. Also, the internet is a huge place whereas print marketing may not be effective because it will only be advertised in a limited area whereas the internet reaches a wide audience where everyone has access to it, which gives customers a greater freedom of choice. This is an example of the average cost of a 30 second advert which as you can see is extremely expensive. Also, a TV advert is 30 seconds long and is shown only a few times however, internet marketing is pro-lasting until it gets removed although it doesn't get taken down every day and put back up, it stays thee so anyone will be able to see it and won't miss the advertisement. This is also beneficial to customers because Amazon will have saved money on advertisement which can be spent on improving their business like e.g. better customer service, quicker delivery. This can be done by using their money to properly train their staff as well as getting more vans to deliver the products.






















Internet marketing allows businesses to have a 24/7 present which means the website can be accessed at any time without shutting which is extremely beneficial to customers because it means they do not have to worry about ordering at a specific time or day because the website is always accessible. This is also beneficial because it allows customers to spend more time looking at the products/ services on the website which means they will not miss anything or any deals as oppose to scrolling through the website quickly or just searching for the product they want. Shops like Lister Chemists opening hours are the same hours people work for which means people may not be able to get to a store in time, although this problem is solved when using internet marketing. Amazon have different delivery times which are beneficial to customers because some times may be inconvenient for them therefore they can choose their suitable time for their product/service to be delivered. Amazon have a tracker system which customers can track their order and see what stage it is at. Below are the opening times for Lister Chemist which aren't flexible as they are set timings they have to abide by.

Amazon have a page on their website where customers can leave feedback at any time, whether it be compliments or complaints it doesn't matter because Amazon use this to improve their business and to find out what customers feel about the business. This is beneficial for customers because it allows them to feel special and like they have a voice. By having this feature on their website, it increases their customer service and relationship with customers because they will be able to express their feelings and interact with staff within Amazon. They can also message other sellers which is good because they can instantly ask them questions and will get a quick reply without moving. If a customer from Lister Chemist has a complaint or need to ask a question about the business or a product, they will have to travel to the store and physically enter the store because they do not have a service online to ask questions or send a complaint.

Internet marketing benefits customers massively and another way this is proven is by Amazon having search engines, where they can simply type in the product or a key word they want to look for and all the products that relate to that word will come up. This makes shopping a lot easier and finding a product easy. Examples of key words that you could type in are; socks, men, smoothie maker etc. If a customer was just looking for dresses for example they could just search in the search engine 'dresses' and a whole range of dresses would come up with their prices which the customer can scroll through. This is beneficial because the physical store may have run out of a certain product or only have limited stock which means a product may not be available which is annoying and customers may have travelled a while to go there. Additionally, if you know the code for a product, you can simply type that in too and the product would come straight up. This is an advantage because most customers keep the product code for repeat purchase or to make it easier to find the product online again.



Amazon have a Facebook and Twitter page which will allow them to update customers on news and updates about Amazon. Using social media is a massive bonus to customers because they can follow Amazon on Twitter or add them as a friend on Facebook which will allows them to see Amazons tweets and posts. It also allows them to add their own comments and opinions on the things they post as well as any general comments they have. By having a Facebook and Twitter this means Amazon will reach a wider audience because their are two different target audiences who use both social media sites. Using social media allows Amazon to improve their credibility which is an advantage to them because they can get reliable and crucial feedback which could affect their sales if they don't react to it.