Name of student | Roland Visser |
Class | IBS |
Cohort | 2009 - 2012 |
Unit no | 12 |
Unit name | Investigating Internet Marketing |
Assignment no | 1 (of 1) |
Assignment name | Internet a digital revolution! |
Criteria covered | |
Issue date | |
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Name of assessor | |
Student’s signature | |
P1.
· The collection of marketing research information can easily be undertaken through internet surveys.
· New methods of promotion are available, like having links from other sites and banner advertising.
· Organisation can become marketing orientated through being more responsive and flexible. The use of e-mail allows better access to key managers for customers to express views and pass on comments.
Explanation of the marketing mix (7 Ps) and how internet marketing integrates in the different tactics.
The seven Ps of the marketing mix are used by businesses to create a tactical mix designed to achieve the business’ goals and objectives. The classic marketing mix consist of only four Ps, while the extended, modern one included seven. The seven Ps are:
· Product
· Price
· Place
· Promotion
· People
· Processes
· Physical evidence
The ‘product’ aspect of the marketing mix is, not surprisingly, about the product itself. In modern marketing this function considers the features of a product offered to a market. What is the product? What can/should it do? These are questions considered in this marketing function. Internet marketing integrates in this aspect with the advantages that internet has. More dynamic pictures or 3D models of the product makes that people can ‘touch’ the product more than in a TV commercial for example. The disadvantage is that customer in some cases choose to rather go to a shop to buy or see the product. An example can be when purchasing clothes or a car.
Normal price strategies are e.g. penetration pricing, destruction pricing and discrimination pricing. The use of internet introduces a whole new tactic: dynamic pricing (or fluid pricing). This means that customers can gain cost savings by making use of the internet’s ability to alter pricing in real time to reflect the market conditions. You see the use of dynamic pricing a lot in the airline industry (like Easy Jet). Another example is online auctions like eBay.
The place where the product is sold has always been a very difficult decision. The product, price and even the promotion of it can be superb, if the selling place is not right, people won’t buy the product. Internet has several advantages in this area because the internet is accessible everywhere nowadays. Websites like Amazon.co.uk don’t need to think about the selling place, they only need a proper distribution centre since people can order all products online.
The promotion of a product is the way of bringing the product to the attention of potential customers. Most common ways are/were mass media like the newspaper and television. This kind of promotion is a so called ‘push’ method. All communications push mass marketing messages out from a business, in one direction, the internet is a pull medium. The potential customers choose whether to visit the website or not. Next to that is the internet and its messages always delivered on a one-to-one basis. The internet integrates in the promotion aspect of marketing as well with the following methods:
- Search engine optimisation: use of the big search engines like Google and use the right keywords.
- Banner advertisement: advertisement that appear at the head of a webpage.
Affiliate programmes: placing linked advertisements for products or services on another business’ site.
E-mail promotion.
People are a key factor in selling a product. Some shops have nicer personnel than others, and it often plays a role in your decision to buy your product (there) or not. The messages on the inter are always ‘personal’, they come in a one-on-one way of communicating. Further on, websites offer reviews and opinions from other consumers and they often have a page with frequently asked question (FAQ’s). This all contributes to the services that internet stores provide online.
Processes are quite important too. You have to ‘invite’ or ‘encourage’ your customers to buy the product by making it easy for them to do so. The internet has a big advantage with that already, because people can buy products from home instead of having the need to go to a store. However, since there are lots of providers of the same products, businesses have to be attracting for consumers. By not charging sending fees and by making the ordering process quick and efficient, people will choose to buy their stuff on the web.
It is all about the presentation. If you walk into a restaurant or hotel and it doesn’t look organised or messy, you won’t eat there. As a company you must attract people with atmosphere and the logo on articles, just like in hotel. See often see the name of it on the towels. I think the internet marketing integrates in this in the way of website designing, Businesses have to design their website so in shows who they are and what they stand for. The website of a consultancy company has to look professional while the one from a toyshop must be colourful and attracting to kids.
Another great opportunity that internet offers is customisation. This is the opportunity for business for customers to let them create tailor made products to suit their individual tastes. An example is the product that Nike offers. Customers can create their own shoe online and then let it produce by Nike.
Does Internet Marketing contribute to or highlight the need for effective identification of new product / market development opportunities? I can be short about this one: yes it does. In the case of Easy Jet this is especially the case. Mostly because their services/products are sold through the internet of course. If they accomplish to do some proper marketing research they should discover the best way of reaching their target group. If you take a look at their website you notice that they have highlighted the current trends and the best deals.
Customers are also offered the possibility to register on the website in order to get the latest news about the changes in flight schedules, discount offers and news.
Internet marketing extends the possibilities businesses have to communicate their vision and ideas to the customers. The internet provides more information than a store does. The web allows businesses to extend products with added information and impact. Businesses extend their products by e.g. cross-selling, warranties and extensive product endorsement from previous customers. I think that all these extra features and abilities of the internet definitely increase the chance of achieving the aims and objectives of a company. People will feel more attracted to certain products and will experience all extra features, like the ones just mentioned, as pleasant. Next to that, with the internet businesses are able to reach a wider network of potential customers.
I think internet marketing does enable more effective targeting and segmentation. If we look at demographic segmentation, than I can just conclude that internet gives businesses global reach. They only need to know a lot about internet access and availability in different countries in order to reach the right target group. The internet has numerous different sources, and by doing online surveys and questionnaires I think businesses are now better able to target more effectively.
If you would draw the supply chain of a business-to-customer company in the easiest form, you would first have the manufacturer, followed by e.g. a distribution centre and at last the consumer. The businesses that work between the company that actually manufactures the product and the customer are called intermediaries.
With the internet, there is often no need for such companies since a lot of products can be shipped directly to the customer’s home. This is called disintermediation. This kind of helps the producer because they now have to pay less since there is not an extra party in between who needs to make a profit. They now only have to make a deal with a shipment company and transport in bulk if possible. In the case of Easy Jet there is no really use of intermediaries between them and the customers since all tickets are bought online, but in the past this was not the case of course. So if we compare the way of sending and delivering the tickets then and now I can definitely say it is more efficient and better now with the use of internet.
Like I already explained in an earlier section, internet marketing has lots of advantages and benefits for airline company Easy Jet. Concluded, Easy Jet can now reach a wider market, targeting and segmentation has been improved and they often have no need of using intermediaries, which saves money. The internet extends all possibilities of promoting because it is digital and always up to date. Internet marketing is nowadays a medium that cannot be missed.
Buying airline tickets online is very handy in my opinion. You can compare and buy tickets within minutes and you receive them straight away in your e-mail box. The marketing has improved and extended with the use of internet and that can definitely be called a big advantage!
P2.
Not only does internet marketing have benefits for the companies, customers have advantages as well. Like already mentioned, customers can now first quickly compare prices online before they buy a product (or flight ticket). This will especially come in hand in the airline industry because airline companies are a frequent user of dynamic pricing. Customers are also provided with the latest updates about their product. In the upper section is explained that customers can register at the Easy Jet website so they will be kept up to date.
Further on, maybe one of the biggest advantages for customers is the online customer service. The internet offers multiple ways of online services. For example, almost every website has a page with frequently asked question on it. Customers are now able the place a comment or complaint on the website or send it to the online help desk. Moreover, the internet is available 24 hours a day.
