unit 12 p1 p2

UNIT 12 P1

Describe the role internet marketing has within a modern marketing context

Dear whom it may concern,

In this letter I will be addressing the impact the internet has on modern marketing within two businesses and how effective it is in getting the products or services the businesses are advertising across. The two businesses I will be using in this letter is Asda and Mr Baker, because these are two successful businesses. Asda's is a British supermarket retailers with stores all over the UK. The company became a subsidiary of the American store Walmart after an £6.7billion takeover. Furthermore, Mr Baker is a kosher bakery in a few different locations within London. They sell a variety of food containing; falafel, pizza, sushi, sandwiches, coffee etc.

The role of internet marketing is to make profit for the business and to increase the market coverage. By using the internet it introduces and aids the products and services to the internet. It also helps in marketing a product and helps to reshape or alter what businesses can do. Businesses that aim to make a profit intend to market their products through the internet, such as Asda as its a very successful and effective way of increasing a businesses income, awareness and the number of customers they receive. When using internet marketing it is important to consider the marketing mix as this will really help to make the marketing strategies effective. The marketing mix is made out of 4 P's: Product, Price, Promotion and Place and it helps to achieve the businesses marketing objectives and aims.


The first P in the marketing mix is product which takes into consideration what the product/service is, who its aimed at, what does the product/service do and what should it do. The next P is price which looks at what price customers will pay for a specific product/service, what price will attract specific customers, what price will create the best image for the product/service and what will attract the change in price. There are different pricing strategies that can be used to appropriately price a product or service;
Penetration pricing is when a product or service gets set a price to gain market foothold.
Destruction pricing is when a product or service gets a price set to drive other competitors out of the market, usually by pricing is cheaper.
Competitor pricing is when a product or service is priced based on their competition,
Skimming is when a product or service is set at a high price because it is a unique product or service.
Discrimination pricing is when a product or service gets set at different prices depending on the customer they are.


The third P is place which focuses on the location to buy the product or service. It includes looking at distribution and merchandising as this is important when locating a product or service. Businesses that work in between manufacture and retailers are called intermediaries. Lastly, the final P is promotion which is where businesses try to bring products or services to the attention of the customers by doing promotional things such as offers, deals etc.


In the modern marketing world and the modern economy, they sell more services. Therefore, the extended marketing mix was introduced which includes 3 more P's: People, Processes and Physical evidence. The people side of this mix is at the centre of the service delivery. Processes look at the activities and processes that customers take part in during a service. For example, banks have attractive waiting rooms, they would look at how long do customers have to wait and do they have forms in the waiting rooms. The physical evidence is where the service will be delivered and having evidence for the customers to judge for themselves. An example of this is Uber, they allow you to give reviews about your Uber journey which is useful for Uber as they can see how customers feel about the drivers and there journeys and what to improve from it etc.



As the internet is changing and expanding over time, Asda and Easyjet need to ensure that they keep up with the changes in order to be different from their competitors and not fall behind. By doing this it will reach their audience in the most effective way. This can happen in a few different ways:
Market penetration is when a business increases the market share by offering better services.
Market development is when a business enters a new market or increases the market share.
Product development is when new products can be digitally delivered through the web.
Some businesses have online objectives, some examples of them are to increase their profit by 20%, achieve the top 10 in market in a particular country, increase customer response times. When making a web objective they have to be SMART in order to be achievable.



Asda's have their own official website in which allows customers to purchase products or services from, as well as having a tool where you can find your nearest store in order to attract customers. On their website they also offer tips on beauty, healthy living and fashion such as 'How To Streamline Your Wardrobe In 30 Minutes Flat'. In 2013 Asda decided to try and lower their prices in order to outshine the "Big Four" competitors however, they are suffering 'uprecedented distress' within the grocery market that they decided to scrap that idea and just focus on. Asda's motto 'Save Money. Live Better' is really emphasises through their website as they offer deals and promotions on food, home, beauty etc. This draws customers in as especially now a days customers just want to buy the cheapest stuff therefore if Asda's is linked with being cheap then customers will gravitate towards Asda's more.




Asda's use social media to advertise their business, one of the main sites they use is Twitter. This is because it is extremely popular and people can tweet Asda to praise them or tell them any problems they have had. A benefit of using Twitter is that if a customer praises them, they can retweet the tweet and everyone that follows Asda will be able to see that praise on their page however, if it is a negative tweet it will still be on the responders page however it will not show on Twitters official page.



Easyjet also have a Twitter page which allows them to update their customers on the latest deals, delays or anything they feel their customers need to know. This is an effective use of internet marketing as it allows a wider audience to see Easyjet tweets and see the way they interact with their customers. For example Easyjet tweeted a photo of a bear who was found on a flight and they suggested everyone retweeted the photo in order to reunite the bear with its owner. Customers may see this and want to use Easyjet because of their relationship with their customers.



The Asda IPhone app allows customers to quickly purchase products and services through their phone which is an effective and efficient way of shopping. Not all supermarkets have this therefore Asda's stand out from some of their competitors. However, other supermarkets such as M&S and Sainsbury's have connecting apps which are called 'Sainsbury's SmartShop' 'Cook With M&S' or 'Sainsbury's Magazine' which are all apps that offer slightly different things to make them unique and distinctive as the supermarket market is extremely competitive. They also offer an IPad edition which offers a wider variety for people if they do not have an IPhone as more of the older generation may have an IPad or a family IPad to do the shopping on which means Asda's will reach a wider audience as they are offering a wider range of choice in which to purchase their products and services.



Easyjet have an app on Google play which allows customers to do a range of different things. From booking a flight, to managing your existing bookings, to checking in, to having mobile boarding passes, having a flight tracker accessible and having a mobile host. All these features are distinctive fro Easyjet and other airlines like Ryanair have their own maps however, they do not have some of the features that Easyjet do which are more up to date and modern, which makes flying a lot easier.



Asda's use social media to advertise their business, one of the main sites they use is Twitter. This is because it is extremely popular and people can tweet Asda to praise them or tell them any problems they have had. A benefit of using Twitter is that if a customer praises them, they can retweet the tweet and everyone that follows Asda will be able to see that praise on their page however, if it is a negative tweet it will still be on the responders page however it will not show on Twitters official page.




Businesses like Asda and Easyjet work hard to build customer relationships to gain customer repetition. They do this by having products or services that are appropriate for their target audience. By using web technology, you can use images and make the customer interaction creative and stand out. One way Asda and Easyjet could improve their marketing online is by having products or services where customers can customise their product or service and use web pages or specific colours to manipulate the original product. Adidas are one business who use this and have a customising tool in which you can customise specific shoes at bit of an extra cost. By using web technology it will allow Asda and Easyjet to record and assess their customer feedback and then respond appropriately targeting specific groups of customers.

Segmentation is when there are different groups within a market so businesses can target products and services to meet their needs. Consumers have all different preferences, budgets and reasons for buying products and services therefore businesses have to market specifically to target their target audiences. There are various internet-enabled segmentation and targeting systems that are used. Examples of these are; demographics, psychographic, economic, usage based. The demographics show where the population live and how many people are online. Psychographic show the lifestyle and personal characteristics based on research. Economic shows the conditions of countries that determines whether their e-commerce will be successful or not. Lastly, usage based is how the internet is being used in different parts of the world.