M2 - Unit 12, 4, 7 PDF

Preview

Summary

Unit 12, 4, 7 ...

Description

M2 – Analyse the marketing opportunities and challenges faced by a selected business when using internet marketing Introduction In this task, I will be analysing the marketing opportunities and challenges faced by Quick Bite when using internet marketing. Moreover, as they have started using online services they face many opportunities and challenges. Opportunities The internet gives many opportunities to Quick Bite like 24 – hour online service. One of the advantages of using 24- hour service include order taking, order processing and other customer service. Moreover, the customer will be able to access their website 24 hours a day. This leads to customers not visiting to the physical store and ordering the products and services through website. This can benefit the customer as they can save time and it is inexpensive as they don’t want to physically travel to the store. This will lead to increase in sales and profit. Moreover, Quick Bite need to make sure that they update their website regularly. If they don’t update their website then customers will be unsatisfied which will lead low sales and income. Another benefit of using 24- hour service online is that it reduces the cost of the business as they don’t have to spend money on electricity, heat and light etc. and also reduce the cost of stores. However, the disadvantages of using 24/7 service online for Quick Bite is that the call centres can be cost effective method when filtering calls and taking messages outside the working hours. Moreover, it is difficult for hiring staff as the staff need to work nights and weekends which can affect the employee physically and psychologically as they have to adapt night shifts. Therefore, Quick Bite has to be honest with their staff while recruiting by informing them all irregular working 1. This can impact the business as the shift schedule will lead to health and safety aspects of the nights and weekends. As Quick bite has started using online services they can research on their competitors and how they manage to succeed in this 24- hour service online.

1 https://www.theguardian.com/small-business-network/2013/mar/28/24-hours-businesschallenges

In addition to, 24- hour service online can provide customer with email services, where they can email Quick bite about the issue with the product and services. However, this is sometimes challenging for the business as due to the overflow of customer inquiries, they will not be able to respond to every customer. This will lead to low expectation and affect the profit of the business as customers don’t prefer Quick Bite anymore. Therefore, including as much information about the product can decrease the amount of customer inquiries.

Immediate sales of the products The internet gives many opportunities to Quick Bite like immediate sales of the products. One of the advantages in using online services is that customers can access the website immediately. Moreover, Quick Bite can receive quicker transactions in a matter of minutes as customers can place the order from anywhere, depending on where the company operates. In addition to, Quick Bite can compete with large businesses through online as many people from worldwide can bring sales for the business. Immediate sales can benefit the customer as it is not time consuming. They can easily order the product when they are at home, which avoids travelling to the store and standing queue. This will lead to satisfaction and thus increase the sales and profit. Quick bite can also encourage customer to buy the product like for example, while searching for a product, customers can see other similar products available in form of images and videos. This can impact Quick bite positively as they will be able to gain more sales and profit. However, one of the limitations is that after placing an order if the stock run out then Quick bite has to force customers to cancel the product this can unsatisfy the customers. Moreover, this might lead to Quick bite giving an opportunity to customers to buy the product from competitors as they run out of the stock.

Product development opportunities The internet provides many opportunities to Quick Bite like product development, where it allows Quick Bite to achieve goals by selling more to the existing customers. This will lead to increase in sales and profit. Moreover, product development allows Quick Bite to improve product by responding to the customer needs and wants by looking at their

feedbacks. However, it will be cost effective as Quick Bite has to develop a new product. Another benefit of product development will help Quick Bite to gain a reputation as they invent new products which is unique and superior according to the customer preferences can lead to profit growth. However, the limitation of the product development is that as when Quick Bite improve their products, the amount of time and resource invested in the product innovation can be expenses. Therefore, to cover the cost Quick Bite can increase the price of the product. However, this can affect the business as the customer will be unsatisfied due to the increase in the price of product. This can impact the business negatively as their profit decreases. Therefore, Quick Bite has to make sure that there is high customer demand for the developed product and has to make sure whether the product have a clear competitive advantage. Moreover, by the time Quick Bite develop their product the customer desire can change, which is another limitation of product development. Therefore, Quick bite has to monitor the market demands and what their competitors offer.

Challenges Payment security The internet marketing has created challenges to customer through payment security as they are aware of the hackers in which the customers reject o provide credit/ debit card details. Moreover, details are not safe as the businesses can sell the personal information of the customer to any third party. Therefore, customers are concerned while paying online. This can affect the Quick bite as well, because of the new technologies it has created an opportunity for fraudulent through online. As physical card isn’t required the customer’s identity can be masked in which the chance of fraud and data theft is higher. This will lead to chargebacks which is cost effective for Quick Bite as it can damage the

reputation of the business. However, Quick Bite can overcome this challenges by protecting the customer’s personal information or by minimising the charge backs.

Meeting customer expectations Quick bite has to make sure that there is no gap between the service levels and customer expectations. Therefore, Quick bite has to make sure that they meet the customer expectation through effective strategies. If they fail to meet the customer expectation then it can risk their market share and profitability. Moreover, it can be challenging for customer as they expect more from Quick Bite, but they will have some limitations in providing high level of customer services. This will turn make customer unhappy. Quick bite has to make sure that the products have a reasonable pricing. Moreover, customers prefer quick delivery once they place the order. This can be challenging for Quick bite as it will be difficult for them to deliver the product on time. If they are not able to deliver the product on time as given then it can affect the sales of the business as customers will be unsatisfied. Quick Bite can overcome this challenge by delivering the product on time by providing customer their product through quick services.

Keeping pace with technological change In online marketing Quick Bite need to make sure that they keep up with the technological change. If they are not updated with the technology, then customers will prefer to buy the products from someone who is technologically advanced. This is challenging for business as they need to be updated with every technological factor. Moreover, as new technologies are complex it can be challenging for customers as well, especially in using their websites. Therefore, Quick Bite has to make sure that their website is not so complicated for customers. This will help to increase the sales and profit. One of the way in which Quick Bite can overcome this challenge by launching a Facebook messenger bot, where it allows the customers to order and pay for the sandwiches and salads through social media. This can help Quick bite to increase their profit and sales.

Conclusion Overall, internet marketing can provide many opportunities for the Quick Bite which can help them in increasing the sales and profit. However, there are many challenges, in which Quick Bite has to overcome. Moreover, opportunity that internet marketing provides to the Quick Bite can outperform the challenges that business face. Through payment security, meeting customer expectation and keeping pace with the technological changes. This can help Quick Bite to increase their sales and profit as it has long term benefits and short term drawbacks. Payment security can provide Quick Bite with a long term benefits as customer will trust the business with their personal information. However, if Quick Bite fail to secure the customer details then it can affect their business in a short term until customer trust with their payment details or when the Quick Bite install any new secure system. Moreover, meeting the customer expectation can also provide Quick bite with long term benefits like ahead in competition and develops their reputation by providing customer with great services and rewards. However, the short term limitations are that Quick Bite will not be able to provide high levels of customer services as they are a small business. Therefore, this can affect them in sales and profit. In addition to, keeping pace with technological changes can benefit the Quick Bite in long term as customer will be satisfied which can increase profit and sales. However, the short term limitation would be, if the Quick Bite website is complex for customers then they refuse to buy through online. Therefore, keep the website simple and easy to use can benefit them....