H&M ()
- Up-to-date product information: although H&M has a wide range of clothes in their stores, on the website they sell not many pieces, just the main pieces for the current season (for example it is spring now so they have items which are fashionable this season). They just show the items, there is no description about the fabric for example, or where it was made. What they do to facilitate the customer’s decision is to have created a model online with the same measures as the customer; he/she can also choose the face and the hair. After that the customer can dress the model so it is possible to see how he/she would look like. The website is offered to customers who want convenience i.e. they do not need to go out, wait in queues and sometimes end up home with empty hands.
- Dynamic pricing: H&M offers very competitive prices comparing to its competitors. Usually they sell very fashionable items at a very good value. As they are already a very well-know brand, their advertisements are not linked with prices as they are also known as offering good quality clothes for cheaper prices; even on the website emphasis is given to fashion only.
- Responsive transactions: the system used by H&M to sell online is very similar to the ones used by other large companies. It is necessary to register personal details, open an account and then the process of shopping is very quick. Payment can be done quickly after choosing all items the customer wishes to buy; the customer will then receive an e-mail with the confirmation order, the amount to be debited from the card and the date the clothes will be delivered.
- Customer service: there is a link to customer service on the H&M website. There is a FAQ section, gift card section where balance can be checked, product recalls section, size charts and ways of contacting the company. They also offer care advice on the website as well as a style guide.
- Digital complaints: there is not an e-mail available to send complaints; but it is possible to contact the company by sending a letter to the main office address or by telephoning them.
- Newsletter: the website offers subscription to those who wish to receive the latest fashion news as well as exclusive discounts. This is part of marketing promotion as a way of communicating to customers what they are selling each season and to keep customers loyal.
- CONCLUSIONS
Internet marketing has been used by most companies as a way of increasing sales. This channel sale is usually promoted as a convenient way to buy, easy and quick; offering the same prices as in-store and sometimes delivery is offered for free. Asda offers the same value for money, Orange offers the same good customer service or even better as the customer has more time to make decisions; H&M offers the latest fashion items which sometimes can not be found in store with the same easiness.
M1 – Analyse the benefits of internet marketing to customers
Internet marketing, which was once thought to be a fad, provides a valuable service to customers from all over the world. It focuses on the 4 C’s of the marketing mix which are convenience to buy, communication, costs to satify and customer wants & needs). Internet marketing does serve the customer well, therefore many benefits are offered to them as analysed below:
Flexibility to place an order at a time suiting the customer
This is about convenience as customers can buy products/services at any time. Internet offers 24-hour shopping and customers gain not just on the time front, but also on the wait front. There are no queues to buy a product/service as well as annoying automated phone systems, situations that normally happen when buying at physical stores or over the phone. Other hassles that can be avoided using internet marketing are heavy traffic and nasty weather.
All online retailers are accessible to customers 24/7 while just a few physical stores are available 24/7.
Responsive transaction
Usually the process to buy online is very quick, it just needs a few details to set up an account and the whole process can be usually finalised within five minutes. Customers receive an email with the confirmation order, amount spent and date of delivery. Most of the time there is never a problem with credit card transactions unless the card details are wrong or there is no limit on the card; the system is very effective. Problems are not uncommon with the credit card machines at physical stores as well as payment by cash due to a lack of change (mainly for small businesses). This does not happen with internet marketing.
Disintermediation
Customers gain with disintermediation because internet marketing can remove the middle man and allow products to get directly to the consumer. Dell Computers is an example of online retailer who supplies customers directly, rather than through distributors, wholesalers or retailers. Many physical stores would sell Dell computers at a higher price than buying directly on their website.
Possibility of researching before buying a product/service
In traditional marketing customers may research or may not research products/services; however in internet marketing customers do research when planning to purchase products/services. They can compare prices much faster than they could by travelling from store to store. Comparison websites are a precious tool to help consumers who are buying online as they will “research” for the customers and show the best deals in terms of price, quality, extras with the product/service and reviews.
Communication
Internet marketing offers an incentive for the customer to engage in a dialogue. This can be done during the sale process or “search” process through online customer service advisers; online chats and forums are also common on many online retailers where customers can communicate with other customers (this is a facility that is not offered in any physical store).
Communication in case of a complaint can also be speeded through digital services such as emails that can be sent and usually companies reply within 24 hours; customers gain with this kind of communication when making a complaint to big companies e.g. BT; instead of sending a letter which will take a day or so to be received, it needs to be posted, pay for the stamp the customer can send the letter via email with no cost and it reaches the destination straight away.
Customer service is also offered in a different way to physical stores. Usually there is a FAQ section on online websites with the most Frequented Asked Questions where customers can clarify doubts about products and services. Some online retailers also offer advice on care of products for example, balance on gift cards, balance on pay-as-you-go mobile phones that sometimes physical stores do not offer. Recipe suggestions are one example, some supermarkets will have available at physical stores a few leaflets only while on their online store customers can find hundred of recipe suggestions.
Clear product information
The majority of online retailers offer a detailed product/service description which sometimes customers have not got access if they are buying at physical stores; also sales assistants could not have all the knowledge about the product as it is displayed online. Information about products is just not clear but also up-to-date on online retailers and certainly the information provided is unique comparing to physical stores.
Special offers exclusive to the online website
Many online retailers have special offers on their website that are not available at a physical store. Customers have this commodity added to the convenience of online purchase. This is a different way of exploiting the marketing mix (costs to satisfy and convenience).
Dynamic pricing
Dynamic pricing is the facility of the web to adjust prices quickly, according to market conditions. The website and supporting technology respond instantly to market changes; this is where the customer gains as many physical stores would not sometimes offer a prompt response to changes regarding products/services they are selling. Dynamic pricing also covers “internet auctions” where customers can bid for a product and on top of that buy a product at a very good price. E-bay is an example of website that offers this kind of internet marketing.
Affordability
Online retailers face more competition because customers can search for cheaper prices more easily. They do know this when using internet marketing and often get items cheaper than they would in a physical store. Even with shipping charges included buying online is a better deal as customers are not spending money on fuel, parking, public transport etc.
Choice
No matter where customers live they can shop at stores that do not exist nearby. Customers who live in small towns or mid-size cities suddenly have all stores available in front of them. Customers can also shop internationally from their homes, for example customers in the UK can buy products/services from America.
Mass customisation
Mass customisation is the opportunity for the customer to change the online presentation of a product. Customers can tailor their products to suit their individual tastes and their own preferences. This benefit is not always offered by physical stores. And customers gain because it can be really fun doing it online as it is very interactive; again there are 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:
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
- 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 ().
- 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.
- 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.
Benefits: it is cheaper to have an online store than a physical store; less staff is needed. Orange offers different prices for the same product/service if bought online or at a physical store. For example a monthly plan which includes 850 talk minutes and 500 text messages is offered at £35/month online and £40/month at a physical store.
Technology allows repeat visitors to be tracked, easily allowing incentives to be targeted towards them; Orange has an offer of 2 for 1 cinema tickets on Wednesdays which if requested online once it will be sent for free to the customer’s e-mail the next time it is requested again. If it is requested through text message, a fee of a few pences is charged.
Opportunities: higher prices or products/services at the same price it is sold at a physical store. Orange does sell some services cheaper online than in a physical store.
Price comparison websites could be an opportunity if the company is offering products/services at a better price than its competitors.
Place
Online location refers to where links are placed on other websites. It is about increasing the probability of a consumer finding the online store. This could be done by placing a link on google website for example, Yahoo or MSN.
Benefits: a wider audience can be reached through an online location; it is easier to supply customers through an online location providing the postage service used is efficient and reach customers within a reasonable amount of time.
Opportunities: as online location is available 24/7 to any consumer it is possible for a company to check how many people have accessed its website through Search Engine Optimisation or Pay per Click, what they were searching for, giving the company an opportunity to evaluate how the company is doing; it is an unique opportunities that physical stores do not offer. Also a 24/7 location allows customers to buy products/services at any time.
Orange makes use of this marketing mix segment by adding links on several websites and also by using Pay per Click and Search Engine Optimisation techniques.
Promotion
The first element to be considered when it comes to e-promotion is domain name. It is necessary to have a recognisable domain name which is shown on all advertisements. Placing banner promotions on other web pages is a common form of e-promotion; they must be placed where potential customers browse. Web public relations are another approach to promoting online; also news about product or service launches can be placed on the company’s website. E-leaflets are also part of e-promotion strategies which can be sent to thousands of people within a few minutes.
Benefits: e-promotions are fast to implement and can be sent more frequently (e-leaflets) than traditional promotions; banner promotions increase traffic to the website; environmentally friendly when considering the reduction of paper usage; it is again cheaper than traditional promotion methods.
Opportunities: if used effectively promotion can increase sales more than any other traditional method. Having a domain name with the same company’s name (if it is already a well-known brand) is undoubtedly very effective. Any Orange customer or potential customer would link immediately orange to for example. E-promotion can also increase customer loyalty through web public relations for example; Orange places news and information about product or service launches that it is not always possible to do in a physical store.
Product
Internet marketing helps to sell products/services by offering clear facts about the product/service such as unique features, specification and packaging; it provides extra information about products/services to customers.
Benefits: companies have more ability to perform market research, consumer reviews and feedback on the product speeding the first part of product development.
Opportunities: giving free services to turn customers to buy the products. Orange does offer free services such as internet broadband for three months if a new customer buys a pay monthly contract online.
People
In order for any marketing activity to be effective it is necessary to train and motivate the people to do their job. And it works the same way in Internet marketing. People need to add value to an experience and in the “virtual world” of internet this is provided mainly through customer service.
Many products, services and experiences are supported by customer services teams who are online. They provide expertise (e.g. on the selection of financial services), technical support (e.g. offering advice on IT and software) and coordinate the customer interface (e.g. controlling service engineers).
Benefits: people add value by offering customers technical support and expertise and advice. Orange has a customer service team online which offers advice on any of their products/services. People are the key to retain a customer or to improve a company’s reputation.
Opportunities: people even online can build relationship with customers. The disposition and attitude of such people is vitally important to a company; the way in which a complaint is handled for example can make or break the relationship with a customer. Although many online retailers do not have an online customer service team at all times to deal with customers’ enquiries mainly because of costs this could still be an opportunity to strengthen the relationship with customers as it takes time for a customer to receive a response when he/she emails the company with a specific query.
Process
It is the way in which the customer gets hold of the service (e.g. the way a product can be ordered). Process in internet marketing also includes delivery of products to customers. Some retailers with physical stores who also have online stores for example offer customers the service of reserving a product online that can be collected at a chosen physical store within one day after the reserve is made. This is a way of ordering a product; other online stores however deliver products at the customers’ address only. When products are delivered using postal services it is necessary to make sure that customers will have them within a reasonable amount of time, between 2-3 days if the product was ordered on a national online store.
When it comes to the payment process basically all online retailers have a very efficient system where customers set up an account to ensure a faster checkout process.
When a customer buys on Orange online store they will have handsets delivered at the address only, there is no possibility of collecting the handset at an Orange physical store for example. The delivery takes between 1-2 days; payments can be done once an account is set up and all the customers’ details will be registered and they can use a password afterwards to have access to the services such as usage of minutes.
Benefits: usually sales and delivery processes are automated so the website does everything; it can even send a follow up e-mail in a few days to make sure the customer is satisfied. Orange sends text messages to new customers after the delivery of the products/services offering full support and telling customers to log on to manage their accounts. The whole process at Orange is automated apart from credit check which a sales adviser will do and then proceed with the sales process.
Opportunities: more companies could offer the facility of collecting a product reserved online at one of its physical stores such as Argos does. Companies could take more advantage of this process by sending an e-mail to customers to make sure they received the order (as described above) because this is also an opportunity to build a relationship, this step could be the start of customer loyalty and many companies do not exploit it; they usually send a confirmation order e-mail and then disappear. Orange has been taken advantages of its online store, they have been exploiting all available opportunities, maybe they could offer free delivery for customers as it is still charged.
Physical evidence
It is more difficult for the company to present evidence of the product they are selling online. It is necessary to create an element by which the customer will be able to feel, taste and smell the product or experience the service. Reports and articles can be done to excite the customers about the product or service. Orange has links to recommend phones by Orange and to top seller phones. Some clothing online retailers offer ‘mix and match’ where customers are able to view a belt, shoes, clothes and a handbag on a model so the customer can see how it will look like all together as if he/she was in a changing room. Physical evidence can also be given through testimonials, case studies or demonstrations; these apply more to services so that potential customers would have a chance to see what a service would be like.
Benefits: more sales would be generated by convincing customers who were a bit unsure about buying a product/service online because of the lack of physical evidence.
Opportunities: there is a huge possibility to turn browsers into buyers if good physical evidence is provided on an online store. Mass customisation could be a good tool as Dell does; they allow customers to select the various components to build their own PC configuration.
- CONCLUSIONS
Internet is just the medium of marketing and it involves more than just promotions. That is why the marketing mix (7 Ps) needs to be applied when selling online as well. It is the well planned marketing mix strategies that in the end will maximise profits for online retailers.
BIBLIOGRAPHY:
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on 10/04/09
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on 10/04/09
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on 10/04/09
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on 10/04/09
P4 – Describe the challenges facing a selected business when using the internet as a marketing tool
Internet Marketing is a very useful tool for businesses nowadays but there are a number of issues and challenges that businesses could be facing as well. This task will be describing a specific company, Orange online shop, and its issues regarding Internet Marketing.
Effect of online facilities on costs
As Orange has also physical shops prices are different when buying online and when buying in store. For example a monthly plan including 600 minutes & unlimited texts costs £34.26 in store and £24.46 online. This does not mean that it is bad for the business, it is still lucrative but they need to have different price strategies to stimulate customers to buy online and it is what Orange is trying to do. Their intention is to maximise sales online as the business is expanding internationally as well. If they sell more online less physical stores will need to be open which are more costly to maintain. Reducing prices when selling online also means that profit in the end is going to be the same as selling at physical stores because the difference that could be more profit for the business is being taken off from the final price.
Meeting customer expectations on quality and delivery
This could be a difficult aim to achieve as many customers are still suspicious about the delivery or quality of the product/service they are buying. Orange sells handsets that other network providers may be selling as well; Orange needs extra strategies when selling quality on the internet such as reviews about the handsets and recommendations. Top sellers are also mentioned to promote quality as well as store locator. Many potential customers will go to an Orange store, see the phones, touch them and then go back online to buy the product/service.
Orange is accredited by IDIS (Internet Delivery is Safe)
IDIS is the official merchant accreditation scheme for delivery standards and best practice. Orange has improved this line that could be an issue to make customers feel safer.
Linguistic and cultural sensitivity
The Orange online website in the UK is designed to UK users including linguistic and culture. Linguistic is about the language, there is only one language available to navigate on the website and culturally news, lifestyle and other tools are all written accordingly to UK users’ habits and lifestyle.
However Orange is online across twenty countries in Europe and is going online in other continents such as Asia, Australia, USA, South America and South Africa. AD Europe is a partner of Orange and is responsible for advertising campaigns on the internet.
Orange has had to take into consideration all cultural and linguistic issues to launch online shops in the countries described above. Examples of these issues are colour and languages.
Orange has also done a survey about what type of advisement is more effective for each county. In Netherlands for example smaller and less obvious ads such as sponsorship are more effective; whereas Italians love bigger formats and they were found to be more impactful.
The legal complexity
Orange is a trademark which means that nobody can use the same name as a mobile phone and broadband network provider. Other issues regarding legal complexity are use of customers’ personal data and use of cookies. Cookie is a small, unique text file that is saved on the hard disk by a website to track usage patterns. Personal data can be shared with other companies in the group and this has to be stated when a customer is registering online to buy a product/service on Orange website. Orange also offers services such as forums online so they need to worry about obscenity, defamation and privacy. For example users can not use offensive language, and Orange has the right to remove materials from Forums at any time.
Security and payment systems
Orange also has another accreditation which is Internet Shopping is Safe.
The consumer can be sure that the website is monitored and had its business, VAT and data protection checked by IMRG (Interactive Media in Retail Group).
Payment systems are another concern for Orange but this issue is more complicated when it is first introduced online. For the company it is essential to team up with a good bank, pay a monthly fee for the service but in the end the system is beneficial to the business as payments are done by credit or debit cards only. Orange does not accept cheques, cash or BACS.
Search Engines and ISP’s
It is necessary that a company has an effective website design so that can be found by users easily when they are searching for a product/service. For being a large company Orange can be found easily on search engine websites such as Google and Yahoo, it will be the first on the list if someone types “Orange”; however if someone types mobile phone or mobile phone network provider other companies such as O2 and Vodafone will come up and Orange will not come up. This might be because Orange relies on the fact that it is a well-known brand.
Orange is also an Internet Service Provider for home users and mobile phone users. They are on the most comparison websites as they should be mainly because of the competition; however mobile phone network is still their strongest business.
Keeping pace with technological change
If the business is not keeping up to technological changes customers may lose interest and look somewhere else. It is essential that online retailer offers interactive and interesting tools.
Orange website offers many tools that could be considered Web 2.0 tools which could be the possibility for customers to add reviews on the website, links where users can share knowledge and experience (chat rooms, forums), social sites such as Facebook, photo and video sharing; and personalisation.
Although Orange offers many up-to-date tools for users they are very concerned about the users’ safety and offer advice as well as they remind users about risks for example when doing online dating.
Orange website has links to blogs, forums, chat rooms, photo sharing, galleries and Orange Messenger.
Distributors
Orange still has physical stores and sells products/services using retailers such as The Carephone Warehouse and Phones 4u; conflicts have not yet been established between them, it is not as if retailers will disappear and consumers will buy mobile phone products/services and broadband services online only. Undoubtedly internet marketing is a niche that is increasing by the minute and it is clear that Orange is stimulating consumers to buy online but it will take a long time for them to reduce the number of physical stores for example or to eliminate other channels of distribution.
Key benefits of internet marketing
- Orange can build a database of information about the customer’s purchasing habits
- They can provide reviews of new products/services
- The company can analyse sales records to see what products/services customers are buying more
- 24 hour online services
Drawbacks of internet marketing
- Payment Security: some customers will still be reluctant to leave credit/debit card details no matter what security accreditation the company has.
- Cultural issues: it is fundamental to know the market because if the company gets the message wrong then long term online damage can be caused. Orange has a company which does all this work and they are expanding outside Europe.
- Information fatigue: businesses must be aware that ‘information’ is not ‘knowledge; sometimes there is so much data that it becomes meaningless and impossible to use. There is a lot of information on Orange website, if someone is to read everything that is there probably over five hours will be spent.
BIBLIOGRAPHY
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on 20/04/09, 21/04/09
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on 20/04/09
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on 20/04/09
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on 21/04/09
M2 – Analyse the marketing opportunities and challenges faced by a selected business when using internet marketing within the marketing mix of a selected business
The business selected for the analysis of opportunities and challenges faced when using internet marketing is Orange.
The opportunities and challenges will be based on the 4 C’s of the marketing mix which are convenience to buy, communication, costs to satisfy and customer wants & needs).
Opportunities:
Convenience to buy
One of the main opportunities that internet marketing has offered not just to Orange but to all businesses going online is the 24/7 service. Customers can log on at any time and purchase services/sales. They also do not need to rush because the place is going to close soon etc. But for this type of service to work being 24/7 available is not the key. The key factor for the business to increase sales and reach more customers is the way they market their websites online. Use of Search Engine Optimisation and Pay per Click is essential to make the online store known to potential customers mainly if the business is new. Orange makes use of these techniques as well as use of links on other websites.
It has to be pointed out that if a customer is looking for mobile phone network providers for example and types this on Google for example, Orange will not come up first, but other competitors such as O2, Vodafone and Virgin. The same happens to broadband services; Orange will not come up first. Perhaps they rely on the name they have in the market but it is still necessary to exploit internet marketing as much as possible because of the competition. 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 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. Through its online website Orange has access to customers or users’ preferences, shopping history, navigation history, location, personal details if they are registered and all this information enables them to have statistics related to products (for example how many customers clicked on a specific phone) or how many customers searched handsets by brand and which brands were more popular.
Other companies have exploited this market even further by creating price comparison websites such as and by creating services such as dating websites ( for example) to fulfil customer wants & needs.
Challenges:
Convenience to buy
One of the main reasons for internet marketing to be working so well is the convenience to buy offered to customers. It is much easier to buy a product/service from the comfort of your home/office and receive it at the required location. Orange and all online businesses offer this convenience which is very much appreciated nowadays.
However challenges that online retailers have to deal with in order to be able to offer convenience to customers are:
Disintermediation: it means the removal of wholesalers and physical retailers. Orange could have conflicts with The Carephone Warehouse and Phones 4u by selling products/services online because this technique is eliminating possibilities of the above retailers selling the products at their stores. On the other hand Orange could come to Nokia (handsets’ manufacturer) and say that it is not fair to sell mobile phones directly to customers online as Orange could be doing that.
Delivery: logistics operation needs to be perfect to deliver products to customers. Customers expect not to have problems with delivery and sometimes this still could happen leaving the customer unhappy. Sometimes the issue could be the customer’s fault but it does not make his/her experience less unpleasant as for example deliveries that need to be signed and the customer is not the location for three times and then the product goes back to the depot and new delivery needs to be rearranged. It could take up to two weeks for the customers finally receive the delivery.
Packaging: packaging could be responsible for the product failure to work so it has to be well planned and a quick response to the customer needs to be provided if this happens. Orange which sends mobile phones to customers via post need to make sure that the product is well protected and that the delivery company handle the products properly.
Communication
As customers have more access to communication with companies electronically an overload of emails could be difficult to manage at times because businesses are also operating with reduced staff. Orange does operate with less staff online than they would do at offices and physical stores as well as other companies. Overload of emails also demands a very good computerised system so up-to-date equipment is required so that customers are not let down.
For a few days for example customers could not check their accounts online and the only message that appeared was “there is an error, try again later” and this is not uncommon even with banks which offer many services online such as bank transfer and payments.
Businesses also need to be careful how they communicate their products/services taking in account linguistic and culture. Orange for example has a specialist company which builds the whole website and does the campaign projects according to the country Orange is present which includes USA, South America and South Africa. Issues such as colour could damage the company’s image permanently in the country if they fail to provide an adequate website. White for example is symbol of death in some countries, therefore it is not recommended to be used on website designs.
Costs to satisfy
As Orange sells products/services cheaper than they do at physical stores this would not be an issue to customers. This is another reason online store sales are increasing; because of the price. But this also means that although sales online are increasing, prices need to go down because competitors are more aggressive and it also means that big chains can keep up to best deals but small companies could struggle in this market despite the reduction in costs of overheads.
Online retailers also offer cheaper prices because the customer pays for delivery separately and also to “make” the customer forget about other issues such as payment security. This is still a challenge for online retailers as many customers are reluctant to buy online for fear of having bank card details hacked. Orange does fight this challenge by having accreditations such as Internet Shopping is Safe from IMRG (Interactive Media in Retail Group).
Customer wants & needs
To reach the customer wants & needs many challenges need to be overcome. In many ways the business need to find this customer with his/her wants & needs. This has to be done by having an effective website design that can be found easily via search engine websites for example.
Once the website is found it is necessary to have interactive tools to offer customers more opportunities of feeling, touching and seeing the product/service as if they were at a physical store. This can be achieved by offering one month trial if the business sells services such as credit check websites; Orange does not have interactive tools but it does offer good description of products/services and customers can look at mobile phones sorting them by features (Bluetooth, Photo Messaging, MP3 for example). Online retailers such as H&M offer customers the opportunity of building a model as if it was them, and then customers can try on the chosen clothes on the models.
Overall business efficiency
There is no doubt businesses can operate more efficiently through internet marketing otherwise Orange would not be stimulating the use of this type of channel. Orange as well as other online retailers can have costs reduced using internet marketing; costs with staff will be lower for example. Woolworths is an example of physical retailer that has gone online only and it has reduced costs with staff and other overheads such as electricity and telephone charges. Other costs reduced are with advertising as internet is a very effective channel of promotion.
Communication with customers can also be better with internet marketing. Orange offers all information about customers’ accounts online so the registered client has got a history about the service used, email is also a powerful tool to communicate with customers quickly and effectively, and it is also cheaper than having a call centre.
There is more chance of a customer buying an additional product/service using internet marketing than if the customer was at a physical store as well as existing customers buying again and again online. Maybe not as customers can think more carefully and there is nobody trying to persuade them to buy something else but this is a challenge that is not making sales on internet decrease.
Orange as well as other businesses can have access more easily to what the competitors are doing, selling or offering. It is easier for Orange to find out online about Vodafone, O2, Three, Virgin etc and their products and services.
D1 – Evaluate the effectiveness of internet marketing in meeting customer needs for a selected business
I am writing an evaluation about the effectiveness of internet marketing in meeting customer needs and this evaluation is based on Orange online retailer website. Other retailer websites will also be used as examples to help to justify my views.
Generally I do not see any negative points for customers when using internet marketing, what I see is that a few aspects could be improved to show customers that they will really buy a product/service they were expecting.
Undoubtedly internet marketing offers benefits to customers that physical stores could not offer with the same easiness such as convenience to buy. This convenience is offered to customers because they do not need to go out to buy a specific product or service and they can buy at any time from anywhere in the world without the need to fly to other countries or make a telephone call within office hours. But is this a really precious benefit offered to customers that they will not consider going out anymore to acquire something? In my view the answer is yes and no.
It is fantastic for example to be able to do food shopping online at Asda, Sainsbury’s or Tesco and have the shopping delivered at the door at a convenient time for the customer. Never forgetting that this food shopping can be done at any time, 3am, 4am and the customer can take time to fill up the trolley. However for this example convenience to buy could become an inconvenient experience because many supermarkets which have online shops are still far from pleasing the customer properly i.e. many supermarkets will send fresh food with use by expiring on the next day for example when customers who go to a physical supermarket to shop normally choose and look for the fresh product with the longest expire date. An example of this product is milk. Waitrose is one of the few supermarket chains in the UK that state on the online store that they will pick up the products as if the workers were buying for themselves and this includes carefulness with expiry date.
Orange on the other hand benefits customers in more ways because they are selling products/services online that are not subject to changes e.g. there are no expiry dates, shapes do not change as wells as size and weight. Orange sells products/services that are designed by them to the end customer who will then choose a final package more suitable to his/her needs. This involves the mobile phone brand, type of contract (pay monthly/pay as you go) and plans (minutes, text messages and use of internet offered for a specific price). It is very convenient for the customer not just because the deal can be done all electronically at any time but it also benefits the customer in terms of price (products/services are cheaper buying online than at an Orange physical store or at other retailers such as The Carphone Warehouse). Other benefit offered to customers is the possibility of having the service of a sales adviser online who will chat and clarify any doubt the customer might have. This is a very good strategy which benefits customers but it does not replace the fact that the customer can see a handset online, can read all its functions, features, but it can not touch the handset. I believe that the more interactive internet marketing is the better. Some clothing retailers which are also online have built interactive models to help customers to decide and to make them feel as if they were in store and to offer them some fun as well. H&M for example offers this tool to customers which benefit them enormously as customers can build a model which will look like them in terms of height, hair, face, weight, skin tone and then customers can try on outfits on them. When it comes to mobile phone companies or more precisely Orange they could also offer similar benefits to customers; maybe a way for the customer to see handset better, pictures from all angles, showing the screen, possibility of touching the keypad using the mouse to see how menu is set on the phone. So at the end it benefits some customers by half as some might have to go to a physical store to touch the phone, to see it properly before making a decision to buy it online.
Customers may be more benefited when using other types of services such as postal services (DHL, TNT for example). This type of business offer customers online services that would be impossible with simple offices or call centres. It is all up-to-date information; customers can track mails, parcels wherever they are sending them even if they are going to the other side of the world, they can check exactly where the item is. This is a very useful tool offered by internet marketing.
It can not be forgotten that internet marketing benefits not everybody in society, internet is quite a new tool and its benefits do not reach most of customers that come from generations when computers did not exist (61% of internet users in the UK are aged 18-44). And although internet is used globally some countries still do not use internet as a tool to buy products/services, it is not in their culture. This is an opportunity that can be exploited by Orange and it is what they are doing as they are expanding online in South America, Russia, South Africa and in many other continents and countries. Despite challenges such as culture, language and legal system this is a step taken by Orange that benefits are solely due to the use of internet marketing which it will in the end benefit customers who will have access to a good brand, good website which is also a search engine website and good price. The company might have worse challenges to face when going online; payment could be a big issue no matter which strategies Orange is using to stimulate people to buy online; accreditations from a recognised body may help, but it may mean nothing to some potential customers as well and it might stop them from making a purchase online. But then in countries such as Brazil where people do not use internet to make purchases as they do in Europe only time will be able to change people’s minds and it is there that a real opportunity arises for Orange or any other company. It is when the whole package will work to meet customer needs: name, website design, reviews from other customers, price comparison websites, price, customer advice online, chat rooms, forums, efficient delivery system and secure payment system.
Finally, learners may progress to D1 as all these themes are integrated. Learners are
asked to evaluate how the performance of selected businesses may be enhanced
through integration of internet marketing into overall marketing strategies, despite
the challenges encountered. This evaluation will explore the principles, benefits,
opportunities and challenges of internet marketing as learners apply some relative
weight to opposing sets of considerations before reaching a final supported
viewpoint.
http://www.webmarketingplus.co.uk/marketing/
= http://www.slideshare.net/souththamescollege/unit-12-end-task
http://business.blogtells.com/2008/01/08/bringing-e-marketing-mix-together/
