P4 Unit 12- Describe the challenges facing a selected business when using the internet marketing tool

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Task 4- P4 Unit 12

P4- Describe the challenges facing a selected business when using the internet marketing tool

  1. describe the drawbacks of using the internet marketing in your chosen business

Problem of heightened competition through a global visibility

The following challenges are threats that online business must face

Businesses such as DELL must go through the challenge of facing potential threats online on the internet

Problems of managing channel conflict and disintermediation

The internet offers the chance to use direct channel of supply to clients or customers this process is known as disintermediation in the tendency to cut out the middle man

An organisation such as DELL which established themselves as a business which directly sell through shops and online but this is soon changed as dell went completely online which resolved in a conflict between the middle man the dealer and dell the middle man has a problem as customers weren’t purchasing from them and only purchasing from dell online as dell were cutting down prices of their computers

Problem of overcoming low customer confidence in payment security

Customers are often concerned about purchasing products from the internet customers often here stories of hackers scammers and therefore reluctant to give credit or debit card details online  it is a management policy how payments are taken how to reassure potential customers that it is safe purchasing products online with that business

Organisations such as DELL face a challenge of convincing customers it is perfectly safe to order an online product with dell and also conflict may occur if customers have been hacked by a hacker and all personal information have been stolen this will cause customers to hesitate to purchase from dell

Challenge of delivering to expectations of higher reliability

The internet continuously increases customer expectations importantly customers are starting to expect higher levels of reliability responsiveness convenience  speed and speed in terms of both time taken visiting the site and in delivery times once the order is placed

DELL for example face the challenge of customers expecting reliable and quick delivery and other customers expectations when DELL deliver a item for example a laptop if the number of days the customer will receive the product is stated on the site 2 to 3 working days then delivery must be received  by the customer on the days given

Problem of managing the overload of market feedback

Internet marketing opens up a business to the entire market it hopes to serve its customers and competitors as a result the business will gain massive amounts of data and its employees and systems can quickly be overloaded therefore the business must consider the data which is essential to them

DELL for example have the challenge of gathering all this data but may not know what to do with it and take it to their advantage for example when a person clicks on a item this transmits information to their database and stores it and this means that when the person returns to the site the person will see the recently viewed items

Challenge of keeping pace with market and technological change

As internet businesses gain pace most business in markets are facing up to the challenges of going to online  the change of technology has always been with us without  it there would be no progress for businesses

DELL for example have to rise to the challenge of keeping up the pace with technology as technology keeps changing every year and other businesses produce or purchase new gadgets and dell must keep up to date with the new technology available

Problems of ensuring maximum access and visibility through ISP’s and search engines

ISP (internet service providers) are firms that offer internet connection service to businesses and householders an essential point for business management is to ensure that the ISP is offering a reliable quick service for a reasonable price  also speed of access is crucial as customers online demand speed also businesses often have a dedicated server in which it is one which is serving content from your business

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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 ...

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