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Investigating Internet Marketing

Extracts from this document...

Introduction

P1 - Describe the role internet marketing has in a modern marketing context using selected organisations as examples Internet marketing has played an important role as a means of advertising. All types of businesses have benefited from internet marketing when it comes to cost, relationship building and sales. Instantly millions of people can have access to a company, its products or services, and this can be done at any time anywhere in the world. Usually communication is done via e-mail reducing costs in telephone calls as well. And this benefits not only businesses which do not need to spend large sums of money on traditional ways of advertising but also benefits consumers who do not need to make telephone calls to know more about a company and its products or services; it is possible to find out everything with a few clicks. Internet marketing is also used to close deals which make the process easier and cheaper for the business and the customer. Even a mobile phone contract deal can be done via internet nowadays. Internet marketing also helps targeting overseas clients as products or services easily reach customers anywhere in the world through internet marketing. Relationship building is also one of the reasons why businesses use internet marketing; this can be done through e-mails received to update customers with latest products, services or news; another way to build good relationship with customers is by offering them services that can be done online without the hassle of going out to resolve an issue. One example is online banking where banks offer customers the facility of cancelling direct debits, make payments or transfers within minutes. Following are some examples of companies that sell goods or services along with the ways internet help them to support sales: Orange (internet link www.orange.co.uk) Orange is a mobile phone network provider and if the customer wants a pay monthly contract he/she can do the whole process online, from choosing the handset to keep the same mobile phone number with the new provider (Orange). ...read more.

Middle

no external hassles such as weather conditions or heavy traffic and customers will have a product/service that was chosen according to their preferences and tastes with no time pressure on them; they can take as long as they like to have the product/service finished. An example of mass customisation is Dell Computers which allow customers to select the various components to build their own PC configuration. BIBLIOGRAPHY: o www.findarticles.com on 11/04/09 o www.thedatabahn.com on 11/04/09 P3 - Describe the benefits and opportunities to the business of using internet marketing within the marketing mix of a selected business FOR: The Client REF: 2 FROM: Business Consultant Date: 20 April 2009 REPORT ON E-MARKETING 1.0 TERMS OF REFERENCE This report will describe the opportunities and benefits of internet marketing to a business which in this case is the mobile phone network provider Orange (www.orange.co.uk). 2.0 PROCEDURE Learning resources available on citybit2 were consulted in order to write this report. Explanation about the subject was also given by our lecturer Derek Summers and research on Orange website was made as well as on other business websites. 3.0 FINDINGS Companies need to consider the marketing mix when using internet marketing as consumers now use the internet to research products/services online; however online strategies need to be slightly different from the traditional strategies using the marketing mix to sell products/services in physical stores. Following are the 7 Ps of the marketing mix with the benefits and opportunities Orange could have or has when applying them in internet marketing: Price Traditional pricing was about finding about costs, discovering how much customers were willing to pay, taking in account competition pricing then setting the final price. With internet marketing price has become very competitive; however many costs such as store costs, staff cost have disappeared with online stores putting pressure on traditional retailers. Internet gives consumers the power to shop around for the best deal at a click of a button and as access to information is easier it helps to maintain prices within the online world. ...read more.

Conclusion

O2 for example exploits internet marketing very well, they are the first to come up no matter the words typed by potential customers (mobile phones, mobile phone network provider etc). Communication Communication has been used by Orange to promote the business; they do special offers, clearance phones, top sellers and coming soon phones. Orange website is very complete as it also works as a search engine website with links to forums, chats, photos, video, and news; there is a link to Orange shop where customers will find information about products, services and will have access to their accounts. Orange does not tailor offers to individuals i.e. if a customer has clicked on a phone, they will not suggest other phones with similar features. John Lewis website for example suggests products to match with the clicked ones; it shows alternative colours and other websites suggest "you also might like..." Costs to satisfy Orange sells products/services online cheaper than they do in the physical stores. Price comparison websites such as www.ciao.co.uk could be an opportunity to businesses such as Orange because they are rated on these websites and reviews can be added by customers. Customers could be much happier buying online than at a physical store because the difference could be up to �10.00 (cheaper). Other businesses such as insurance companies, airlines, hotels also offer products/services cheaper online than at a physical retailer. The only issue with cheaper prices is that sometimes it will be easier to get rid of services/products online very quickly but actually profit will not be made with sales. Easyjet is one example of online website that offers very cheap seats just to get rid of seats on a flight and it will happen very quickly, but sometimes with no profit margin or just 1%, 2% profit margin. Customer wants & needs Businesses have more opportunities to find out what customers want and need through internet marketing. This includes product development and launch of new products. Information gathered on internet from customers can help to identify new opportunities for example. ...read more.

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