Introduction to Internet Marketing - Grade: B PDF

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Summary

Introduction to Internet Marketing:

-Fundamental information such as Price, Place Product, Promotion, Process and Physical Evidence
- Relationship marketing
-Business interaction with the help of the internet
-Traditional Marketing VS Internet Marketing
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Salford University Alex ****

Internet Marketing Introduction For this report, I will outline the role of modern marketing and how a selected company use internet marketing. The 7 Marketing P’s Price: Price is an important, part of a business marketing strategy, have the price too high and customers might not buy it, too low and you'll be compromising on potential profit. Price gives the impression to the customer where you are in the market, for example, a higher priced product will be perceived as higher quality, same goes for low-cost items. Price is especially crucial online as customers can easily compare prices and buy from the cheapest supplier. Companies need to be especially wary of this factor when prices their products. For example, a Barbour Ashby Wax Jacket could be £159 on Asos so Outdoor & Country would need to we wary of this when listing the products price. Place: The product or service needs to be available to the customer at the right place at the right time, while keeping a healthy inventory within the business, to create maximum efficiency. Distributing your product is extremely important especially in this day and age where companies offer next and even same day delivery. Asos also have an App to allow users to see and buy products, from anywhere and while on the move. This makes Asos an extremely accessible shop to buy from. Product: The product needs to be fundamentally good, as it's what the company revolves around. It needs to be the right type of product that the customer want, including quality and expectations. It's important that you deliver the customer what they want not what you think they want. For example a big factor as to why people buy Barbour jackets is that they know they are good quality and built to last. Barbour then also list a lot of specific details about the product online to give customers a better insight into the product. Promotion: Promotion is basically the way the company tells its customers what they are offering. Without this, there'd be no way of the customer finding the product or services the companies offering. The promotion can be in many forms from, a newspaper ad to social media marketing. Different types of promotion can also be used to target specific groups. For example, if you advertised at a cinema the main audience there are 14-34-year-olds. People: Every staff member that works for your company is a form of marketing, either positive or negative. Customers also associate the products or services to the staff that serviced them. For example, being helped by a friendly useful apple representative will make you perceive that the product is better and higher quality.

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Process: Process is about the system and the process of buying the product or service. Customers now want to be involved in the experience and the ethos. Things like efficiency and high level of service make the process a better experience for the customer. Physical evidence: Customers want to know what they are purchasing and why they should purchase it. This is to help lower the uncertainty of the customer when considering buying a product. Things like customer feedback will help ease the customer into or away from the product, as a positive review from a fellow customer will increase the likelihood of the sale.

Relationship Marketing Relationship marketing is the marketing activities which a business does that are aimed at developing and growing the long-term relationships with the customers. The development of technology has dramatically impacted relationship marketing, things such as club cards, sales tracking, and personal offers are all made possible because of innervations and the globalization of the internet. It's also made it cheaper and easier to manage these systems and for customers to access and use them. Tesco: Tesco build a relationship with their customer with the use of the club card, this is where they track the purchases and can then given personalized offers tailored to products you buy and might buy. This way you feel like you are being independently tailored for. They also do money off fuel which practically everyone uses. Asos: Asos have multiple relationship marketing strategies, one if which is an offer for Asos Alsit customers where in certain times you get 20% off. After buying so many products you get money back through vouchers for long term customers. Business interaction with the help of the internet Launching a new product(B-C): With a new product launch, it's extremely important to market it, and the internet is a perfect tool to help do this. One way could be through Google Adsense, where you can advertise your product or service, through the google search engine or any other Google service. This can be an effective method especially if you opt for the PPC (Pay Per Click) system when you only pay Google for each ad referral to your website. This way you are only paying for advertising to customers that are genuinely interested. Company charity project(B-B):

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In this day and age customers want to be involved with companies and like to shop responsibly , with companies that don't just look after their accounts. For example, Asos could donate 1 warm winter coat to refugees suffering the cold, for every £100 spent on the website. Asos would want to shout about this and possibly a good way to internet market this is through their website or via youtube video ads showing the dramatic impact and improvements of what they are doing. This would be better described via video than via, words alone. On Youtube, you can also advertise to a selected audience so, for example, advertise to people that are only subscribed to fashion YouTube channels. This would allow other business to see the positive in what they are doing and make them more likely to use their services. Job recruitment: The internet is a very valuable resource in finding the best new employees when roles are specifically specified the internet can broadcast these jobs worldwide. Companies such as Asos can also advertise on websites like w  ww.indeed.co.uk for a monthly cost letting job hunters find jobs, however this is more often used for less skilled jobs. For more highly skilled jobs companies would employ an online recruitment company, who would message people, through social network sites such as LinkedIn. This would be merely impossible without the use of the internet to find the same diverse range of people. Customer based selling (C-C): The internet-based selling is now a common, trend. Platforms such as eBay and Gumtree have allowed this to be more accessible and ease of use. On these services, customers simply sell to each other, and business-like eBay control the digital system, where the customer's bid and communicate with each other. In this system eBay simply takes a cut of the sale price and don't deal with any of the physical logistics. Disintermediation Disintermediation is the process of the supply chain through no intermediaries, ie directly from the supplier to the consumer. The globalisation of the internet has made this possible, for companies such as Nike to sell directly to the customer cutting out the middleman and generating more of a profit for themselves or passing down the savings. Direct mail Direct mail is the process of trying to sell products directly to the public via methods such as telephone, mail order or email. This is rather than going through a middleman or retailer. Direct mail can be done online, however, is not traditionally done so, for example, companies can email customers e-catalogues which would normally be posted through the physical mail system. Direct marketing Direct marketing is a form of marketing that targets specific groups of people, to lead to a sale or raise the profile of a business or organisation.

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Direct marketing can be used online, and allow you to send direct messages to your target audience, without using costly methods such as TV or radio. Social media can be a great form of direct marketing, where you can share new products and services and get instant engagement with love or hate. This method is also free unless the company pays social media sites such as Facebook to be advertised on the site.

Traditional Marketing

Internet Marketing

● Transaction-based

● Cheap marketing method

● Aim to find new customers

● Frequent customer contact

● Focus on one sale

● Convenience for company and customer

● Focus on the product's features ● Less priority on service ● The quality is of high importance to production ● Persuasive communication

● Bigger reach (Global) ● Vast personalisation ● Can lead to a better customer relationship ● Easy incorporation of social media websites

There's a vast difference between internet marketing traditional marketing, mostly because of the era they were first fully introduced. Traditional marketing also uses the push strategy, where

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they push the mass market out to people at once, usually revolving around a short space of time due to the high cost of forms of traditional marketing. Internet marketing is more of a pull medium, because customers can choose to visit these websites or simply ignore the ads, however, traditional marketing tends to force it on you. Another difference is internet marketing is on a one-one basis rather than, something like a TV ad which is to the masses. Internet marketing also have many unique marketing strategies that would never have been possible or hard to replicate, in terms of traditional marketing, things such as affiliate programs, and SEO (Search Engine Optimisation )...