Business Internet marketing

Glen Alger Page 1

Internet Marketing

Tesco Core Services

Tesco’s aim to supply high quality item’s of food and drink of all different brands at affordable prices for all types of the public whether its low class or high class and for it to be delivered by their drivers to your door and paid for over the internet to make it a secure and easy service, it is a 24 hour service, this is Tesco’s core service that they offer from there website.

Tesco Extended Service

Tesco’s also have an extend service, they sell a wide range of insurance, these include home insurance, car insurance, pet and holiday insurance and many more, they aim to provide this at competitive prices, this service can be easily dealt with 24 hours a day over there website, it can be paid for and the deal is transferred over the website for a secure service.

This is taken from Tesco’s home page from .

EBay’s Core Service

EBay provides a online trading centre for others around the world to trade there goods and products, it’s a 24 hour services that is completed entirely over the internet, it is easy to use and secure, it has a great reputation and is known to be a good service, this is eBay’s core service

and is also known as the online market of the world

EBay’s Extended Service

EBay also provide an extended service, they offer charity’s to sell there products over eBay and eBay advertise this strongly, they provide charity’s the chance to make money over their website by the charity selling the goods that they would normally sell in the shops over eBay, they also let there costumers the chance to donate money to the charity of there choice over the website.

Page 2

This is taken from eBay’s home page from .

The 7P’s Of The Modern Marketing Mix and How The Internet Support’s Them

The 7P’s of the modern mix are simply there to help business start and to think about what they want to achieve and how they are going to do this. The 7P’s are simply a guideline for business to follow to become more successful. The Internet helps support the &P’s very successfully and plays a huge part in many businesses success.

Product

Product is the combination of goods and services that are offered to the target consumers. For example Apple offers a range of iPod products along with the iTunes service. The two aspects together make up the product being offered to the consumer.

How The Internet Supports Products Of The 7P’s

The internet supports products in many different ways. Firstly, the internet can help company’s gain a much larger profit if the company use the internet to set up a service were they can sell their products over the internet. This would secure the business with a much greater income. Another way that the internet can support product within the 7P’s is by making the products well known. This is often done by advertising throughout the internet. A good example of this is Google, Google have pop-ups all over the internet to gain interest of the public to make there product, in this case Google is a service more well known and to sell this to the public. This is how the internet supports product in the 7P’s.

Price

Price is the amount of money consumers have to pay to acquire the product. This can vary considerably. For example, the store PC World offers discounts and credit terms which all combine to alter the price individual consumers pay for a laptop.

How The Internet Supports Price Of The 7P’s

The internet supports the price of products in many different ways. Firstly the internet supports the price of products as it can advertise the cost of the product or service very clearly, this makes the product well known for its pricing which can be cheap for the product. This will then increase sales for that product due to the fact that internet supported the price of the product advertising the price successfully. A good example of this would be if XBOX 360 was advertised on the Argos website for its game console for £100, this is how the internet has supported the price in the 7P’s as it is advertising on the internet at its great price to sell the product more successfully.

Page 3

What Is Dynamic Pricing?

Dynamic Pricing refers to a fluid pricing scheme between the buyer and seller, rather than the more traditional fixed pricing. Dynamic pricing is a legacy from the past. Current, and evolving models for dynamic pricing this includes the auction pricing system, group pricing system and reverse pricing system. Typically these systems will better reflect the true market value of the product involved, but also require additional work on the part of the purchaser. These systems will evolve more rapidly when better standards are established and when intelligent agents evolve. Not all markets will be served well with a dynamic pricing model.

Place

Place describes where and how the consumer can obtain the product. Place does not have to be a physical location. Nowadays consumers can buy such products as insurance, holidays and books over the telephone, via the internet or through their TV remote control. Products have to carefully choose the best method to ensure consumers can find their product in an appropriate place when they decide to make a purchase.

How The Internet Supports Place Of The 7P’s

The internet supports place of the products or services very well, in fact without the support of the internet the place of the products would not be successful at all. Without the support of the internet the product would not be sold as high as it could as none of the costumers of the product would now the place were they could buy the product. A good example of this is a business was having some difficulty selling a product and set a special day of fun for the costumers to sell the product more effectively and costumers did not no were to go then it would not work. Were as this the internets support it can help promote the event through websites etc. This is how the website supports the place of the product.

Promotion

Promotion describes the activities undertaken to ensure the consumer knows about the product and its capabilities. It usually combines advertising, sales, promotion, public relations and personal selling.

How The Internet Supports Promotion Of The 7P’s

This is the most important of the 7P’s and the internet supports this extremely well. The internet is the best place to promote a product to its full ability. The internet supports this in many ways. The internet can place the product in many different websites and can promote the product easily and let all of the potential costumers of the product know and aware of the product that is on offer to them. This will promote the product widely and will make it well known. This is how the internet supports the promotion of the product.

People

This is a preview of the whole essay

People

A major factor in how the costumer perceives the service and the degree of satisfaction received by the customer is determined by the person actually providing the service. Often the extent to which a customer is happy with the service is due to the attitude, skills and appearance of the people the customer comes in contact with. In some cases the costumer will purchase a service primarily because of the people they deal with. It is crucial to have the right people delivering a service, because often a service is only delivered once. You cannot ask the customer to call back so a hair stylist can have another go at providing a decent hair cut, its simply to late. Organisation must therefore invest in training such as understanding company polices on delivery, appearance such as uniforms and selling skills such as describing product benefits.

How The Internet Supports People Of The 7P’s

The internet supports people in the mix. The internet does this buy showing what sort of people are right for the product and who it is designed for. This makes the people, (the costumers) aware of the product and to see if the product is right for them. This is done through the internet when the product is on the internet and is described via the internet. This is how the internet supports People as it shows them whether or not the product is right for them.

Page 4

Processes

The system employed by an organisation must be customer friendly. These systems include all the processes which might involve the customer from handling the delivery of a product, ordering an out of stock item, accepting the return of a faulty product, undertaking a repair and dealing with a complaint.

It happened too frequently that customers are required to complete complicated forms if they want to make a complain, wait weeks for an estimate of repair or make numerous phone calls to negotiate compensation when something goes seriously wrong.

How The Internet Supports Processes Of The 7P’s

The process of the product is again supported by the internet as it allows the costumers to see what is in the product, what ever it may be. Were the product has came from, what is needed for the product to be delivered to the costumers door etc. The process is supported by the internet as it makes the costumer feel confident about the product and shows them what is in the product etc. This is how the internet supports the process of the 7P’s.

Physical Evidence

This describes those factors that can help to shape the customers’ perception and image of the services being provided. For example, many hotels provided writing paper, pens, entertainment, and information in their rooms. This is designed to convey an image of caring and quality. Fast food restaurants like to pay attention to the décor and how it is furnished. It is know recognised that all products have a service component and indeed for many physical products the service element can be the most important aspect of customer choice. Because of this, some parts of the service marketing mix are being applied to physical products.

How The Internet Supports Physical Evidence Of The 7P’s

The internet very much supports the physical evidence of any product. The internet gives the product a image that its costumers can see every time they are on the internet. The internet supports the image of the product and it makes the costumers think about the product. Physical evidence plays a huge part on a product being successful and the internet supports them much better and secures the costumers to buy the product.

How Tesco use the modern marketing mix

Tesco’s use the marketing mix in many different ways, and this is why they are so successful today. It has played a huge part in the success of Tesco.

Product

Tesco’s firstly use the Product in modern marketing mix, they provide a vary of foods and drinks in hundreds of stores, they provide insurance on cars, homes, holidays, pets and many more, this is Tesco’s product.

Price

Price is used very well by Tesco’s they aim to offer as cheap as they can to their customers, they are well known for their pricing and use this very effectively in the marketing mix.

Place

Tesco’s use Place in the mix as they have there stores in areas which are needed, they aim for cities and towns where they know there product and service will be needed, they use this to gain greater income and have done this just by putting their stores in the correct places, showing us that they have used Place very well.

Promotion

Promotion is a key piece of the modern marketing mix and Tesco’s have done just that, they have got the message out to their customers by advertising on T.V, radio station, billboards and the internet. Tesco’s have promoted there product and the service they have to offer extremely well, they have their slogan which is known well due to there promotion ‘every little helps’, when the public hear this they associate it with Tesco’s this gives Tesco’s an increase of customers and income due to the way they have promoted the business.

Page 5

People

People play a huge role in the modern marketing mix and a huge role in gaining any profit. Tesco’s use the People as part of this mix well, there staff are at a standard that Tesco’s has set and this is very important as it would damage the company greatly if they did not have the right ‘people’ working for them.

Process

Tesco uses process very well in the mix, the have very well behaved staff who are very capable of doing their job and doing more if necessary this would be dealing with a complaint, ordering an out of stock item and much more and Tesco’s have this as their staff are all up to there standard.

Physical Evidence

Physical evidence of Tesco’s is very high, they are very prepared for the service they produce, they provide trolleys for example for their customers to place the food items into so they can get more food than if they was holding them in there hand.

How eBay use the modern marketing mix

Like Tesco, eBay uses the marketing mix and is again very successful with it even if the company is mainly based online. It has been key to much of EBay’s success.

Product

EBay use Product well ,they have a good service which is online based but still very effective and they have gained a massive profit from supplying a great service, the

online market place.

Price

Price is a very well used by eBay they have provided a great online service for other to trade but still get a good profit, they charge £0.40 for each item that is placed on their website, if they wish to advertise then eBay charge another £0.30 for each picture, eBay have priced this really

well there are millions of people using eBay and at these prices eBay charge the customers do not mind as they will be making money as well.

Place

Place is the most effective part of the marketing mix for eBay they have used this in the best way possible, they are based on the internet that millions can have easy access twenty four hours a day, everything is done by eBay over the internet and is great for them as the costumers will be able to see what they are doing day or night and see if they are making money.

Promotion

Promotion is used by eBay well, eBay promote their service via the radio, T.V, over the website to encourage new costumers to join the online market place ‘the UK online market place’ this is what eBay also promote for the customers to remember this message so they become well known and increase there profit and customers.

People

EBay use this well there is not many staff on the main website of eBay as most of it is done purely by computer, they offer a service which is easy to used and cannot be wrong as it is done all by machinery, however if a customer had a complaint and rang eBay’s help line the staff must have good attitude and manor over the telephone to keep the customer happy.

Process

EBay uses process well they are very customer friendly, they want the customers, they want them to be satisfied with the product, the staff must be very patient and well mannered to the customers and they are there has been no complaints towards the eBay service.

Page 6

Physical Evidence

Physical evidence of eBay is used they offer free membership to join so you can get trading as soon as possible with out any fuss, they offer a computerised website to show that it is safe and secure, there will be no misunderstandings and it is 100% up to you when you want to trade.

Relationship marketing

Relationship marketing is a form of developed from direct response marketing campaigns conducted in the 1970's and 1980's which emphasizes customer retention and satisfaction, rather than a dominant focus on 'point of sale' transactions. Relationship marketing differs from other forms of marketing in that it recognizes the long term value to the firm of keeping customers, as opposed to or "Intrusion" marketing, which focuses upon acquisition of new clients by targeting majority demographics based upon prospective client lists.

How Tesco Uses Relationship Marketing

Tesco uses relationship marketing as they are always trying to keep its prices down low in order to keep its customers and to keep them happy, they value the customers very highly as it is their source of profit. Tesco aims to keep its good reputation, this is how Tesco use relationship marketing. Tesco also uses relationship marketing top find out what it is that costumers are looking for when they are shopping at Tesco. Tesco uses this method to meet the costumer’s needs and to ensure that they are still shopping with them. Tesco also use there internet website for relationship marketing as they need to see what there competitors are doing ion the market so that they can increase their market share and to keep existing costumers and also to ensure new potential costumers. Tesco research over the internet to find what products are needed at certain times of the year etc. A good example of this is costumers want cheap Easter eggs around Easter time, this is when Tesco looks at what they can do by meeting the costumers needs through the internet via internet surveys etc.

How EBay Uses Relationship Marketing

EBay also use relationship marketing, they develop a good relationship with their customers, eBay make there customers feel wanted, they send them regular emails and news letters. Ebay is a great site that is very cheap and affordable to use, this is why the public enjoy the service that eBay have used and are still successful today, this is how eBay use relationship marketing. EBay does this to meet costumers needs and to secure new potential costumers and to keep hold of their existing costumers. This is how EBay use relationship marketing.

How the internet enables the businesses to identify new products and market development

The internet enables a business to identify a new product as it shows the different products out at the moment and what products are doing well at the moment, it gives a company the perfect opportunity to see what products are needed at the time and what products are successful and ones that are not. They need to be aware of things that are going on and be aware of the forces that could affect their own business and performance. It also helps businesses to identify what is happening in on the market as it gives them a clear indication of the problems of the market up to date, business need to be aware of this as it could become a huge threat to them.

How The internet enables Tesco to identify new products and market development

Tesco’s especially needs to be aware of this as there market is extremely competitive with so many shops and outlets like them. Tesco can now gather data about their costumers and what their needs are. Tesco can do this as they have brought out many different cards that gather information about their most regular costumers. One of the cards is called a club card that any Tesco costumer can receive, each product within Tesco that the costumer buys is a point when the costumer builds up a certain number of points they receive special offers. This card hold all the details of the costumers, it allows Tesco to see how often the costumer shops, what store the person shops at and what products have been purchased. This makes it very easy for Tesco to meet with their costumers needs. Tesco can also send out regular emails to their costumers asking them to fill out question airs based on their needs and wants, this could not be done without the internet and is easily done by Tesco. This is how the internet enables Tesco to identify new products and market development.

Page 7

How The internet enables EBay to identify new products and market development

EBay also needs to be on top and see what is happening in the market on the internet, as they also have huge competitors which can be a threat to there business, this is why the internet is so important to the businesses all around the world. EBay is a very recent product that its costumers have come aware about. It has become possible and so successful only because of the internet. Without the internet EBay would never exist. As EBay is a internet based company it is easy to identify new products and market development they can research very easily on finding new products and ways to improve their internet service. EBay is a company were the costumers must be registered and a member, this allows them to access the costumers easily and to find ways to meet the costumers needs and new ways to improve their service. This is how the internet enables EBay to identify new products and market development.

Business Objectives relating online by Tesco

Tesco’s have many objectives which relate to them online. These would involve such things like keeping the website up to date, this is important as customers could be told one thing by the staff, go on the internet and it is old news and completely different. Another object that Tesco’s would have is to be updated with the market, make sure that there competitor are not getting to close to them and that they are still the market leaders, these all have to be operated online.

Business Objectives relating online by EBay

EBay would have many objectives which would be set online, these would involve keeping there site updated with the latest information about the company and the latest deals that would be available to the customer. Another objective that eBay would have online is to make sure that there customers are always happy, they would do this by making sure that the site is being run well and that there is no internet hackers that would harm the customers of eBay, this is extremely important as it would harm the good reputation of eBay.

Prosumer

Prosumer is a person who is very knowledgeable about a subject and likes to purchase high-quality equipment, this is also known as mass customisation. For example, many digital cameras fall into the prosumer category. They offer higher quality and more advanced features than the lower-end consumer variety, but still do not possess all the features of the most professional units on the market.

Market research

Market research is the process that every company must go through, this includes gathering, recording and analyzing data and information about customers, competitors and most important of all the market. Its is very useful for a business it helps to create a business plan, launch a new product or service, fine tune existing products and services, and help the company to expand into new markets. Market research can be used to decide which portion of the population will purchase it’s to be product or service, based on common data such as age, gender, location and income level for example low class or high class. With market research the company should ask themselves a few things, firstly, what is happening in the market? What are the trends? Who are the competitors? These are the basic questions that should be asked when a company is looking to use market research.

Market research is generally either primary or secondary. In secondary research, the company uses information from other sources that appears applicable to a new or existing product. The advantages of secondary research are that it is relatively cheap and easily to get out for the company to decide how, where and when they should promote their product. Disadvantages of secondary research are that it is often not specific to your area of research were you believe your product or service should be placed and the data used can be biased and is difficult to validate. Primary market research involves testing such as focus groups, surveys, field tests, interviews or observation, conducted or tailored specifically to that product; this is a very good way of market research as you get right down into the research hands on.

Market research is used on the internet very often; companies tend to use the internet for market research to look at there competitors accounts over the internet, this happens very often. If a new company is starting out they want to see what sort of income they could be getting, they simply do this by looking at there competitors accounts. Market research can also be taken out over the internet by

Page 8

looking at other company existing products, although the companies can not copyright them they can get a good idea of what product and what market they should be looking for and getting into. Market research is just as important as primary research or secondary research; it can be more successful at times as well.

How Tesco Use Market Research

Tesco used market research in everyway, they are a very high leading brand of super markets, they have over 500 stores across the globe and this is all due to market research. Tesco’s hit the market at a very good time; they become a huge company producing low priced food for all types of people. They aim for the lower class of people providing low priced food. Tesco also have used market research to expand the stores, in every town there is a Tesco’s, they have aimed for the local community and aimed to be everyone’s local supermarket. Tesco’s would not be anywhere as highly rated and popular with out there market research, they discovered what the public wanted and need, they meet with the customers needs through market research. There is great reason to believe why Tesco is the segment of the market; they have been the leading company for years. The recent surveys show that Tesco’s market share increased even further last year by a huge 30.6% this is a great achievement and shows why Tesco is the in the lead in their market. They do still have good compotation though as Asda and Sainsbury’s are still getting a good percent of the market share, Asda increased theirs by 16.6% and Sainsbury’s by 16.3% but as you can see it is no were as good as Tesco’s.

How EBay Use Market Research

EBay also used market research, they are a high leading company in their market, they have over 2 million, customer’s world wide this is due to market research, eBay hit the market at a very good time, there was not many companies like them and more and more people was becoming more familiar with buying items over the internet, this is when eBay became a international brand.

EBay aimed for every person possible in there market research they aimed for the lower class people, and high class, eBay is very affordable and the customer can make money as long as they sell their item over eBay’s service, this is were eBay have used there market research, to know when to release their service and to know what people to aim for in the market. The reason why eBay is the segment of the market is due to there market research, they simply did bring out the service at the best time. EBay’s nearest competitors re Amazon, they are not as successful as eBay as the service came out later. This is why eBay is the leading segment. EBay used research on the internet to discover what it is people needed; they needed to use the internet as it is where their service is used.

Segmentation

The different segments of the market are simply the different products; there are thousands of different market segments. Market segments very much depend on the products, a super market would have a different market segment to a fast food restaurant, and for example, Asda is in a far different market segment to Burger King.

Tesco Segmentation

Tesco uses the internet to gather information about a costumers economic status. Tesco uses there website were they offer the costumers chances to win prizes when they answer questions etc. This gives Tesco information that they need to carry out market research to decide what segmentations are needed what should they be improving etc. Children aim top provide for children as well as adults. They aim to provide for children by selling toys, children’s clothing with their own brand F&F. They are aware that they need to provide for children as they carry out surveys and question airs to their costumers through emails and their website. This gives them a good insight of what they need to improve and what not to do to improve their business. They do this by gathering all of the data received from the emails, question airs, surveys etc. this is how EBay know and are aware of what they need to improve to become a better company.

Page 9

EBay Segmentation

EBay also use segmentation through the same sort of techniques as Tesco. EBay is a online based company, therefore it is extremely important to gather data together and it vital that EBay do this they provide junk email to their costumers to fill out question airs to find out how EBay can improve their services, they are able to send these question airs as they have all of their information as they are members of EBay and have giving EBay their personal information. They then use the information gathered by this to improve their service and to meet with the costumers needs. This is how EBay use the information gathered to improve their services.

Differences between b2b, b2c and c2c

This is simply to do with business and customers. B2b is short for business to business, b2c is again short for business to customer and lastly c2c is customer to customer.

B2B

Business to business is when to company trade between each other, the company use each other to support there own company, for example a cash and carry, burger vans and fast food out lets tend to use this, the to two companies are trading the good between the to companies.

B2C

Business to customer is a day to day activity it is happening everyday, business to customer is when the business is providing a product or service for the customer and the customer takes advantage of this and uses it. An example for this would be Tesco, they provided good quality food at affordable prices and the customer uses Tesco’s service and buys there goods.

C2C

Customer to Customer, this is when two customers use a service that is provided for them by a business but the business is not highly involved. A great example of this is eBay, eBay provide the service for the two customers to use with each other, in this case an online trading service.

The Internet offers greater Individualization

The internet offers much greater individualization for the products and services to the marketplace, the internet can offer much more information in very good simple terms, the information can be retained and looked at over and over again twenty four hours a day, the aim of companies having information on there website if to improve there mass customization it will keep the companies happy and this will improve the companies reputation. EBay uses great use of the internet, there services is based on the internet entirely, it offers information on the internet about the company, it works well as it is 24 hours a day. EBay can be used at anytime and is great for the customers. Tesco also uses the internet for this; they provide a great service to meet the customer’s needs the website has all the information needed for them, it shows that they care about the customers and want to increase the customer information, this is why Tesco’s have a website with all the relevant information.

Tesco Online and Offline Activities

Tesco’s mix there online and offline activities into one, they use there offline activities to provide in a supermarket to the public selling food, drinks and day to day items that would be needed by us, they have over 500 stores around the globe and is worth over £50 million, they are the leading supermarket in there market. They mix there offline activities, selling goods in a supermarket to there online activities very well, they offer a shopping service online on the internet via there website, so the customers can still shop at home but in the comfort of their own home, this is very well linked as it offers a all in one service, it can also used 24 hours a day, with minimum fuss, the website offers an alternative as well, if they can not get your products they will give you a date of when they will arrive, they will always be straight with you no matter what. The online activities offer a news multiscreen to tell their customers the up to date on there local news and sport. They offer a chance for customers to make there own website up as well once they are all set up. These are all the activities for Tesco online, this shows how they mix there online activities into there offline activities, they do this very well and successfully.

Page 10

This is taken from Tesco’s home page from .

EBay Online and Offline Activities

EBay do not tend to mix there offline activities with there online activities, there main activities are based online, this is simply because they activated there service over the internet. However eBay do use there offline activities as a service, but it is the customers who use this through eBay. Once a deal has been successfully completed over the internet, it is then used to the people who have trade to decide how the payment may be made and how much it will cost the person buying the product, this is the only form of offline activity that eBay participate in and this is due to the customers using this service. This is happening as it is there service. It is a good mix between the offline and an online activity though as it is very much to do with eBay.

This is taken from eBay’s home page from .