unit 12 p1 p2 RESUB

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 Office, 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, Office is a south african show company which sell a variety of different shoes such as trainers, boots, heels, sandals etc. They sell different brand within their store which are located over the country. They are very successful, however there is a lot of competition in the shoe market. By using Asda and Offices website, it will allow us to get accurate and reliable information.

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 Mr Bakery 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

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. Previously, customers had to go into a physical store and purchase their products and services which could have been difficult or inconvenient for some people.  By having their own website this means Asda can now use different promotional tools within their website like banners to engage customers instead of being advertised in one place only e.g. newspaper. 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 'unprecedented 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.

Social media is another way Asda advertise's their business. Previously Asda had to promote their products through a newspaper or magazines which didn't really reach a large audience therefore by using social media it is more efficient. One of the main sites they use is Twitter, because it is extremely popular site 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. Asda use social media to keep up with their customers and competitors in order to try to be the most up to date and up to trend supermarket. By using social media it allows Asda to do this because they can reply to customers tweets which increase customer service meaning customers will feel special and like Asda care about their customers. It is also easy for Asda customers to communicate with Asda because it is direct and public so everyone can see the tweets and posts. Another benefit of using Twitter is that Asda have the ability to improve their customer service by responding to direct tweets e.g. offering a voucher for £10 off their next shop because there was an issue with one of the products they brought due to manufacturing.

Asda's IPhone app allows customers to quickly purchase products and services through their phone which is an effective and efficient way of shopping. Instead of everyone having to use Asda's website, there is now a IPhone app in which people can also purchase products from. 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.

Asda's use social media to advertise their business, one of the main sites they use to do this is Twitter. This is because it is an extremely popular site and people can directly tweet Asda to praise them or tell them any problems they have had to dow with Asda. 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. Another benefit of using Twitter is that Asda have the ability to improve their customer service by responding to direct tweets e.g. offering a voucher for £10 off their next shop because there was an issue with one of the products they brought due to manufacturing.

OFFICE

Office also use social media to promote their products. They have sites on Twitter like Asda, as well as Facebook and Instagram. Instead o having to advertise in newspaper or on billboards, they can now reach a wider audience by using the internet. They can keep up with the latest trends and ensure their social medias sites are up to date to keep customers informed about the latest products and news etc. This attracts more customers because they feel Office is more engaged with their customers and they have more time for them so, therefore they want to give their money to a business who care about their customers.

Office's website is open 24/7 which means it doesn't have any opening or closing times. This is beneficial for customers because they are able to shop at any time they want whenever is easier for them. Before, customers would of had specific opening and closing times to determine when they were able to access the physical stores and purchase from them. It now makes it a lot more convenient for people and appeals to more people increasing Office's sales. It means customers can shop for items in the comfort of their own home, in the car etc. Customers can compare prices and use online exclusive codes on Office's website if they have access to any.

Like Asda, Office also includes FAQ pages within their website, in order for customers to post their questions and receive answers for them in one place for everyone to see. Customers no longer have to go into one of Office's physical stores or call up about a complaint or a praise. It is easy to just write a direct question or response to something on the FAQ page. This creates a good relationship between the customers and Office because Office can directly respond to the questions which makes the customers feel special and it makes them think Office care about their customers. Any complaints anyone has, Office can respond to using a incentive such as; giving that customer £10 off their next order for having a problem with their shoe. This will create repeat purchases from customers because they know Office care about their customers and give incentives if anything is wrong. Instant chats are another thing Office have introduced into their website, which allows anyone to talk directly to Office which means that they can build good customer relationships.

Businesses like Asda and Office 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 Office 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 Office 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.

UNIT 12 P2

Describe how selected organisations use internet marketing

Within this assignment I will be describing the way in which three businesses use the internet in a range of ways to market their products and services. The businesses I will be mentioning are Tesco, Cancer Research and Daniel's Bakery.

Tesco is a british multinational supermarket, which stocks multiple different products and offers different services. It offers stores in 12 countries across Europe and Asia. Tesco leads the role of the grocery market leader in the UK. Furthermore, Cancer Research is a registered charity who work to help the lives of anyone who unfortunately has cancer. They come together to create different events such as charity runs, walks, life events, cake bakes, cultural events etc. They are all fund raisers to raise money to find ways to help people who are suffering with cancer or people who have lost a loved one to cancer. Lastly, Daniel's Bakery is a kosher bakery located in Temple Fortune, who offers catering for a variety of different events, big or small. They are under supervision by the London Beth Din Kashrut Division.

Tesco
Tesco offer information about their products on their website for every individual product or service to give the customer a bit of detail about the product or service. Tesco offer product reviews, warranties on appliances, expert advice, money back guarantees on certain products etc. This allows Tesco to reach a wider target audience by using social media and internet marketing to product the ways in which they can cater for customers. Tesco use online and offline services which promote their products and services and an example of one of these services is 'click and collect'. Click and collect is where customers are able to purchase through Tesco's website and get it delivered to one of their stores for them to pick it up from a physical store. Click and collect was only introduced recently due to the technology not being as advanced as now. Previously, Tesco didn't offer home delivery, or collection from store, customers had to buy products there and then from the store.

Customers are able to shop online at any time that is convenient. It is open 24/7 because it has no opening or closing times which means it is appealing for customers. Before this was introduced, customers were only able to purchase products from Tesco on a scheduled basis when they were open. This makes it easy for customers to be able to compare Tesco's prices with their competitors and decide what product is the most appropriate one for them. Tesco also have exclusive deals and offers online which encourages online purchase because people will want to receive the offers which means they have to use their website to receive them. This has a positive impact on Tesco because it means their reputation and sales have increased majorly due to a lot of new customers shopping online who before were not able to access the physical stores.

Tesco have an IPhone app in which customers can use to purchase products from, same as their website however it offers flexibility and allows customers to use different ways of shopping.

Cancer Research
Social media is a way Cancer Research uses internet marketing. Before, Cancer Research would use the TV, newspaper and magazine to advertise, whereas now they can use social medias sites to advertise and stay up to date with the modern market trends. Cancer Research is an old charity therefore, when it first started up none used social media which made it acceptable and it wasn't like they were not keeping up to date. By using social media, it has had a huge impact on Cancer Research because it has drawn people into their social media sites to follow to stay up to date with the latest news they post and latest information. They are still trying to keep up their competitive with the smaller charities and similar charities because the want to appeal to as many people as possible, still keeping their charity morals in mind.

They have FAQ pages on their website which are available for any questions or enquiries anyone has. All the frequently asked questions that people ask are put into one place for the public to see at any time without having to email and the business answering multiple times. People are able to look up any concerns they have and are able to access this effectively and efficiently. This saves people and the business time and effort which is a positive for both parties. Previously, customers would have to call Cancer Research about a complaint or an enquiry which is inconvenient for some people because Cancer Research have opening and closing times and sometimes they are too busy to answer the phones. This reduces customer queries which has a positive impact on Cancer Research because people will be happier to get quicker answers and will be happy with Cancer Research's customer service.

Daniel's Bakery
Daniel's website is very minimal and only has a few things on it. It includes a home page which explains what Daniel's bakery has to offer and what they cater for. It also has a menu page with all their prices next to the food to give customers a clear accurate idea of how much the food they produce costs. This is helpful for customers because they are able to get an idea of how much it will cost them before they order from Daniel's bakery. Previously, customers would have had to go into their physical store and find out the price of everything and if the prices were too high, then they would have gone into the store for no reason. Having the menu on their website it helpful and saves customers a lot of time and effort because they can have a look at it at any time at the comfort of their own home. On their website it also comprises of their contact details for customers to call about any enquiries they have or any complaints/praises. This is good because Daniel's customers would've used to have to go into store to talk to someone from the business which could be difficult and unsuitable for some people.

You cannot purchase any products from Daniel's website as this feature is not available yet. Daniel's internet marketing is different to Tesco because you can purchase products from their website and either pick it up from the store or get it delivered to your home where as you cannot use Daniel's website to shop for products. Daniel's use internet marketing to create brand awareness of their business especially because its a small business, by having a website it makes customer feel like they are up to date and one of the more modern bakeries compared to their competitors. They use their website to give customers brief information which is extremely useful for customers lifestyles. This has had a favourable impact on Daniel's bakery because its allowed more customers to call up and order food because they have looked through the website. This means Daniel's are increasing their sales which is a positive thing for them because its allowing repeat purchases from loyal customers.

Daniel's could use social media to increase the brand awareness more such as using Instagram to take photos of their food and publicise it for their followers to see. This would encourage people to go onto their website and maybe call Daniel's up about an enquiry or an order. By using social media, they would be up to date with the modern market trends and this is something that is so important now a days because their are so many competitors in the bakery industry. In the past, Daniel's advertised their business in the jewish newspapers, jewish magazines and local billboards which were not as effective as using internet marketing. Therefore, Daniel's should use social media accounts on e.g. Facebook, Twitter, Instagram to generate more consciousness of the business.

Overall, it is obvious that the use of internet marketing has a positive impact on the three businesses that I have used within my assignment. For the businesses to carry on being successful, they should try keep up with the market trends and the latest technology in order to compete with their competitors. By doing this, they will be able to generate more sales and increase the brand recognition.