DELL for example may have problems with their certain ISP as the amount taken to view there site to customers online DELL must ensure there site available to customers at all times, as business sites who sell products online are not able to view their site or neither are customers able to access the site this will mean lost revenue as many customers may want to order online but cant access the site
Search engines
Search engines are essential for promotion of a business website 80 per cent of web users are mainly to use search engines if a business has not registered with a search engine it is very unlikely to be found unless the business is extremely well known
For example DELL may be a online shop now but the problem is that they may not be assigned with every search engine and only just one this can be reassured if DELL are assigned with every search engine that will ensure all potential customers around the world will be known to them
Challenge of maintain security of site information and payment securities
The internet has become a global because it is an open network but also this network is insecure despite this many online business sites are still selling to customers via online confidential sensitive and potentially damaging business data can be easily accessible over the internet all this data are prone to viruses hackers and others are constant danger individuals or firms can also attack a business they can make fraudent claims or just simply attempt to steal it
For example DELL has a challenge to keep all customer transactions and customer information safe and also plan of security there are ways dell can do this one way is to determine who accessible to this type of information can they trust the member of staff and also have a policy where data in continuously monitored
Challenge of possible linguistic and cultural sensitivities
As the use of the internet grows continuously and more and more users are expected to be non-English speakers it is essential that businesses who want to expand to consider having translations on their site
For example DELL the challenge is having different translations on information of product as more user around the world will find it difficult to understand English and therefore dell must ensure they have different translations on all products for example when a customer views a product next to it may be change language to Japanese or Guajarati or German
Challenge of legal complexity
When a business from the UK sends a product abroad for example USA and it is shipped to the customer but the customer is not satisfied with the product which legal system applies UK or USA what taxation if any applies to the purchase businesses must consider this
DELL for example have a challenge to consider when shipping across Europe what system applies to the country they are in or the country they are shipping the product to DELL must view the legal regulations in order to know which system applies to them
M2- Analyse the marketing opportunities and challenges faced by a selected business when using internet marketing within its marketing mix
B) Analyse ways in which internet marketing has created new business opportunities and presented new challenges of contrasting businesses
Introduction
In this section I will be going to analyse and preserve the opportunities for dells internet online business the opportunities I consider to be the most difficult challenges for dell
For dell I think that the opportunities for the dell online business is that they have a great market pressure as anyone around the world can access their website at anytime another opportunity is that dell gives consumer a chance to build their own computer or laptop and place the features the consumers prefers the opportunity is that they are online and all customers everywhere can purchase their products
Another opportunity for dell is that consumers can access and compare products and prefer another opportunity is that dell can have is a search bot this digitally stores any search queries done by customers as when customers re enter the site the database will already store previous stores in which they can easily access another opportunity for dell is to instead of just setting a particular price for a product instead they can place a auction type of setting where certain products can be bought when the highest bid by a customer within the time given such as a laptop which is left for a 2 days for bidding and after the 2 days the highest bidder will receive the product another opportunity is that del could produce a online chat where customers can constantly receive customer service from dell employees another opportunity for dell is to create a comment box where customers can rate and comment on a certain product which was purchased for example this will guide customers in which products are highly rated by other customers and who share the same views as customers will mainly purchase from dell if products are preferred by other customers and if ratings are high fro that certain product
Challenge of maintain security of site information and payment securities
The ways DELL can overcome this is by placing a firewall which protects data or also hire a trusted and responsible member of staff to monitor data flowing in to the computer and also another way DELL can overcome this is by placing an anti virus which blocks attacks from hackers and also deletes any viruses which may steal data
Problem of overcoming low customer confidence in payment security
The ways DELL can overcome this challenge is by placing a hotline for customers who may want queries of paying online or has a lack of confidence of purchasing products online the advisor can persuade and give facts to customers of how many times customers have received their products successfully
Problems of managing channel conflict and disintermediation
The ways DELL can overcome this is by may be turning back to selling products in shops by opening new stores of DELL laptop and computers this way DELL are receiving profit and so is the middle man in this case there is no conflict DELL can also up their prices the same prices as the middle man so this will not affect customers not purchasing from the middle man
Challenge of delivering to expectations of higher reliability
The way DELL can overcome this is by either delivering the product with a quick delivery service such as royal mail or fedex also another way is to have a tracker on the product in which customers can know if the product is dispatched so the customer is ensured they will receive the product in the number of days the business has given
Challenge of possible linguistic and cultural sensitivities
The way DELL can overcome this is by creating a new language bar as users can simply click on the language given and this automatically translates in to the person’s language another way is to have a translator for each product instead of reading the product customers can simply click on audio translator and select language and this automatically describes the product in the chosen language
D1 Evaluate the effectiveness of internet marketing in meeting customer
Needs for a selected business.
- Evaluate how the performance of selected businesses may be enhanced
Through integration of internet marketing into overall marketing strategies,
Despite the challenges encountered.
In D1 I will be evaluating the effectiveness of internet marketing and traditional marketing used in a selected business (DELL) using the marketing mix (the 4P’s)
Product
Dell Inc. provides a wide variety of both business class and home/consumer class products and services. The company markets specific brand names to different market segments. Some examples of Dell products typically sold to corporate clients are Dell PowerEdge servers, Power Vault, Dell EMC storage systems, and PowerConnect switches. A few examples of products for individual and professional customers are Dell precision workstations, OptiPlex desktops, Dimension desktops, and Inspiron and Latitude notebooks. In addition to these Dell also offers printers, projectors, and LCD televisions, to name a few. . Dell has always been associated with the ability to customize their products and services in order to satisfy a wide range of customers, including individual consumers, corporate businesses, and retailing businesses.
Price
A marketing function also considers the price a product should be pitched at what sort of customers will purchase at a particular price, what price would encourage customers to purchase more and what will be the best price to attract a particular kind of customers what might be the effect of a change in price
Dell who have gone on to adapt as a click business in which involves transactions online, Dell mainly price products online and price products at a cheaper rates compared
to the retailers in which they supply
DELL
PC world
←
→
For example this screenshot which was taken from the PC world (a number of businesses which DELL supply) website which shows the prices for the DELL studio 17 green laptop (Blue-ray laptop) the price shows £749.97 but however on the official dell online website the price is £699 which is relatively cheap compared to PC world with purchasing from DELL customers will save £80 PC world will have a greater price fix than DELL as PC world will have more costs involved
The ability of price to affect consumer decision and its flexibility makes pricing strategies important in meeting Dell’s objectives in a competitive environment. The main objective of Dell is to produce the low price and profitable notebook for the customer.
For Dell Company, all the prices that they sell are posed to the internet and they usually based on the e-commerce market The main reason for successful pricing strategy is having a reasonably accurate idea of supply and demand.
Too high a price and demand fall as less buyers purchase the product Too low a price can increase volume of sales but reduce margins profit So, Dell has aimed for the e-commerce which is the multiple markets operates at different times of day and may interact or affect each others.
Dell Company had set different types of price based on the home user, small business user and medium or large business user The pricing structure changes as the products move through their life cycle The company also always changing costs to make sure that they are still able to survive in the competitive environment From there we can see that Dell company success to do that especially they can provide any prices and products that the consumers’ wants although promote and sell their product through the Internet
Dell used to rely heavily on mail-in rebates as an incentive for people to purchase their products; however, in 2006 Dell drastically reduced the use of mail-in rebates. Instead Dell reduced the selling prices of its products and services so customers received the lower prices immediately instead of having to wait on a mail-in rebate. This was done in response to reductions in selling prices by many of Dell’s competitors. In addition, Dell is a direct supplier, meaning the consumers can order their computers directly from Dell instead of going through a retailer.
Place
Place is about where the customers are located and how to deliver products to customers Place includes channels, coverage, assortments, locations, inventory, and transport, DELL only recently were only available to be ordered by their website or by telephone, there was not a actual physical place where customer can actually go and purchase products as well as this gave DELL’s customers ability to customize their product for example a laptop in which customers can add their own preferred specs or features it also kept customers it also kept some people from buying computers from Dell if they wanted to see and touch the computer before buying it, or if they weren’t willing to wait the extra time for Dell to build the computer and ship it to them in response to this DELL distributed to physical stores such as PC world, dell also still do traditional marketing online and through telephone, as internet sales make up over 50% of DELL’s turnover
Promotion
Dell uses several different methods to advertise its products Advertisements can be found in newspapers, computer magazines, and on the internet and television. In addition to commercials on television Dell uses two main avenues to get its advertisements to potential customer’s direct mail and online direct mail includes and promotional material sent through the post office for example DELL publishes a variety of 24-page monthly catalogues describing their available products different catalogues are geared towards different market segments – one for small businesses and one for domestic customers the catalogues are then mailed to current and prospective customers on Dell’s mailing list. Online advertising includes any promotional material posted on the web the internet offers many advantages to advertising because the product can be shown and described in detail. The customer can usually get much more information about the product through the internet than they could get in a printed or television advertisement
My opinion of Dell Prices is somewhat negative and somewhat positive, as the prices in which DELL provide are relatively cheap and this will obviously attract the eye of customers as most of their products on their website show slashed prices but the negative point i think is that the computers and laptops in which DELL distribute to other retailers such as PC world, PC world would fix a price on the product which would be much more than DELL have on their website for example on the screenshot provided above, also i think the products which DELL offer are at a cheap alternative price as most retailers they distribute to the retailers slap on a big price tag compared to DELL and also when purchasing DELL products customers can edit it and add features which they prefer
Conclusion
Internet marketing has been a successful for DELL as DELL have received large amounts of profits due to this type of marketing as DELL have received $61.133 Billion which is £44.228 Billion in, the types of advertisements which DELL were through Dell including , the , , and . Some of Dell Inc's marketing strategies include lowering prices at all times of the year, offering free bonus products (such as Dell printers), and offering free shipping in order to encourage more sales and to stave off competitors. In 2006, Dell in an effort to maintain its 19.2% market share. However, this also cut profit-margins by more than half, from 8.7 to 4.3 percent. To maintain its low prices, Dell continues to accept most purchases of its products via the and through the telephone network, and to move its customer-care division to and . But one aspect of DELLs marketing was slightly wrong, but did not affect any of their sales or profits DELL claimed in marketing advertisement that they have "world's most secure laptops", DELL did not have enough evidence to back this up so DELL were to discontinue this claim , i personally think DELL have gained invaluable profit and sales through internet marketing as more and more people around the world are noticing DELL the more sales and profit DELL would generate as DELL for example In 2006 Dell Inc. opened one full store, 3,000-square-foot (280 m2) in area, at in . It operates the 3,000-square-foot (280 m2) retail outlet seven days a week to display about 36 models, including PCs and televisions. As at the kiosks, customers can only see demonstration-computers and place orders through agents. Dell then delivers purchased items just as if the customer had placed the order by phone or over the Internet.
Dell Inc planned to use the Dallas store to house about three times as many products as it displayed in more than 160 kiosks in malls and airports. In addition to showcasing products, the stores also support on-site warranties and non-warranty service ("Dell on Call"). Services offered include repairing computer video-cards and removing spyware from hard drives
