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

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Introduction

Task 4- P4 Unit 12 P4- Describe the challenges facing a selected business when using the internet marketing tool a) 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 ...read more.

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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 ...read more.

Conclusion

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 cut its prices 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 Internet and through the telephone network, and to move its customer-care division to India and El Salvador. 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 North Park Centre in Dallas, Texas. 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 ...read more.

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