Internet Marketing - Part 4 - Marketing Essay Example
BENEFITS AND OPPORTUNITIES OF INTERNET MARKETING & ITS EFFICIENCY AND EFFECTIVENESS IN BUSINESS Official Blog
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I will be giving to a description of the benefits and opportunities to the business of using internet marketing within the marketing mix. I will also explain how internet marketing has made the business more efficient, effective and successful for a selected business organisation.
For this particular blog I have a chosen Boohoo.com as my selected business organisation. Boohoo.com is one of the UK’s leading online fashion retailers, offering trend-led clothing at affordable prices. It is aimed at fashion forward females as their target market. Since the launch in 2006 it has quickly become one of the most successful online fashion retailers. As the business has grown since their launch online, so have their customer base and now the company ships worldwide.
They have achieved their success during their short history by receiving several prestigious accolades and maintaining strong professional links within the fashion industry, and most important through extensive marketing research and great knowledge about their customer base.
“WE’RE 24/7 FASHION AT ITS BEST”
Boohoo.com has completely benefited by internet marketing as the organisation runs its business strictly online. By being strictly online the business have had benefits and opportunities from internet marketing and it has also impacted the business with efficiency and effectiveness in the way the organisation carries on the business activities. Below will be a detailed explanation on the benefits and opportunities and its efficiency and effectiveness in Boohoo.com.
Cheaper Market research:
“The three most important things in the commercial real estate business are location, location and location. The three most important things in the world of marketing are listen, listen and listen. We need to keep our attention firmly on the people who keep us in business, the people who turn their money into our money.” World Wide Web Marketing Second Edition – Jim Sterne
Page n. 177
For businesses to do market research it would be cheaper for them to use internet marketing and as it is cost effective the business will be able to invest more money. Market research is very important for businesses to use. Market research is when a business gathers information from their customers.
The business will find out facts like what people buy, what they want, what they think and how they can improve and develop the service they are providing. At Boohoo.com to gain this information they have online surveys and they also email customers to ask them about their opinions, this is much cheaper and easier to complete in comparison to traditional market research.
They also have blogs and forums where customers are able to give their feedback and suggestions; this therefore means that Boohoo.com can get a wider range of opinions and find methods of improvements.
Two way communicative marketing:
Internet marketing can enable businesses and customers to communicate with each other. By doing this it helps the business to gain customer satisfaction and loyalty and develop a relationship between them and the customers. By developing a relationship the business will be able to take feedback from the customers which could help them to improve the service that they are providing. The business will also be able to provide a quick response to any problems which is a good method of customer service.
At Boohoo.com they have a blog where customers are able to add their comments and opinions into an open conversation. On the blog customers are able to talk about the products and offers that are being provided at Boohoo.com, they are also other discussions about celebrities and the latest fashion trends.
The blog is a method of communication which enables the business to have conversations with their customers as well as the customers having conversations with other customers; this will therefore create a good relationship and will help gain customer satisfaction. Blogs are widely used, so many customers will be used to this sort of system and this therefore means that the business will be able to attract a wide range of customers.
By creating a blog it will have many advantages for Boohoo.com as they will be able to find out feedback and suggestions from the customers, this will help them to develop the business. Also blog’s are easier to create and maintain, and there is unlimited space so customers can continuously place their comments on the website.
Boohoo.com also advertises on social networking websites as well like Face book and Twitter. On these websites, Boohoo.com have created an account which customers are able to join and by doing this they will be regularly updated about new products and fashion trends.
“Information is made available, and people will fetch it as long as it has value. Depending on the product, the results can be surprising.” World Wide Web Marketing Second Edition – Jim Sterne
Page n. 52
By using internet marketing businesses will be able to expand their target audience this is because it can help to attract new customers as well as existing customers. Customers will be able to use the websites to find out information like what the business is about, what they have achieved in the past and what their plans are for the future. Businesses can use their website to provide information to customers about shares that can be purchased. If customers purchase shares, it will provide the business with more money that they can use to invest into projects. For example they can invest money into new fashion lines and brands, training their employees, improve their website, better delivery facilities.
Boohoo.com is a public limited company which means that members of the public are able to purchase business shares on the London stock exchange market. The Boohoo.com shares are sold on the alternative investment market, this market allows small businesses to trade.
There are several reasons for Boohoo.com joined the AIM; firstly it helps raise the amount of capital that the business receives. The business can use this money to develop the business. It is easier and cheaper for the business to join the AIM listing. Therefore using internet marketing the customers will be able to find out this information and invest into the business if they want to.
From research I have found out that on 22nd April 2010 the value of the shares was 637.00p and this has increased by 37.00p (6.17%). I have also found out some market data which is that the market that they are in London, symbol is ASC, the number of shares (mil) is 73.35 and the Market cap (GBP mil) is 440.08.
Promotion is the way that a business promotes itself to make the customers aware about what products and services they are providing. There are many ways that internet marketing can be used to promote businesses these include the following:
Customers are also able to access websites using a search engine like ‘Google’. In these search engines you can get the search results from pages either from the UK only or everywhere.
In the search engine I typed in Boohoo.com and from the search I obtained 3,880,000 results in 0.15 seconds. Search engines can be used as a method of promotion this is because customers’ type in clothes in the search box the result Boohoo.com will come up and therefore they may enter this website.
Also search engines can gather a wide range of domain names and put them together for the customers to find the right one this therefore attract customers that Boohoo.com may have not targeted before. Also because Boohoo.com will receive the most hits it will ensure that Boohoo.com remains on top of the search. Also when I type online clothes shopping out of 36,400,000 results in 0.24 seconds Boohoo.com was the top result.
Banners, Spotlights, Pop-up’s and Sponsored links:
There are many ways that a business can promote themselves on their website or other websites. For example pop ups that appear on the screen is usually an advertisement which can be clicked on and then the customer will either be taken to another website or a different section of the website that they are already on.
Boohoo.com have a banner which is located at the top of the website, this banner is constantly changing every few minutes, and it includes advertisements for other business which the customers can click on and will be taken to another website. It also has a link for the customers to check
how many product they have in their basket and other information like help and contact.
The banners are a method of promotion as they are making customers aware of the offers and promotions that the business is providing. This is because the banner is a multimedia resource which makes the website more appealing, easy, and convenient. It is also eye catching which means that it could draw the visitors attention to other sections of the website that they are interested in, this could lead to Boohoo.com having an increase in sales.
Some websites also have referrals this is when a website may include a logo of another business and if the customer clicks on the logo they will be taken to that website
Internet Marketing will enable the business with more effective targeting and segmentations this is because it will help the business to identify how much demand there is for the product in the market and it can also allow a business to see if the strategies that they are using is working and giving the results that they want.
Also Internet Marketing can be easily measured, the business will be able to identify how much demand there is for the product in the market. This can be done by the business monitoring how many people are visiting the website and the customers details can be collected easily.
“Online, interactive communication with your customers and prospects allows more direct feedback than ever. Each phase of product development, positioning, and promotion can include the most intelligent, experienced, and expert resource on earth – your customers. They become part your team” World Wide Web Marketing Second Edition – Jim Sterne
Page n. 53
Internet Marketing will enable Boohoo.com with more effective ways of meeting the customer’s needs and satisfaction this is because all the sales will be made on the website and it will help the business to identify how much demand there is for the product in the market and it can also allow a business to see if the strategies that they are using is working and giving the results that they want.
However there are many disadvantages of using Internet Marketing which could make it difficult for Boohoo.com to attract customers for example making sure that the website is regularly updated.
Boohoo.com want to gain customer satisfaction as it will ensure that the customers will return for repeat business and it will also help to improve the businesses reputation. Also it is very important for businesses to gain customer satisfaction as the customers are the main source of income for the business and the reason for the business to provide service to the customers.
If Boohoo.com is able to gain customer satisfaction it will help develop a better relationship between the customers and the business hence gaining customer loyalty. There are many ways that businesses can gain customer satisfaction for example businesses have to ensure that they meet the customer needs and demands.
They also have to ensure that they provide good customer service by doing this it will provide them with a competitive advantage as the customers will not shop elsewhere. Boohoo.com will also have to ensure that they are always developing and expanding the business by investing into new products, services and market sectors. By doing this it will provide the customers with more choice therefore gaining customer satisfaction.
Cheaper and more flexible than offline advertising:
“Market communications considers all of the online and offline methods that the firm uses to reach its customers. Branding captures all of the firm level choices that affect the meaning of the brand. Marketing communications and branding answer the question “How do I attract and retain customers?”” E-Commerce – Jeffrey F. Rayport/ Bernard J. Jaworski
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Internet Marketing is cost effective as businesses will not have to worry about any travel, postage, printing or any other costs which makes it cheaper compared to traditional marketing.
The advantage that this will provide to customers is that the businesses will have more money that they could invest into providing better customer service, for example entering new market sectors. At Booboo.com they could invest money into training their employees this will therefore improve the service that they are providing and hence they will have a competitive advantage.
They could also invest the money into new fashion lines and by doing this it will attract a wider range of customers. The investments that Boohoo.com have already made is that they sell children’s clothes and beauty products by doing this it provides customers with convenience as they can purchase a wide range of products from one place.
Also internet marketing is quick and easy. Therefore at Boohoo.com any advertisement that they use can be set up quickly and can be placed on the internet within hours, also if any changes need to be made it can be done immediately. The advantage that this has for customers is that they can access the advertisements for a longer period of time and this can attract a wide range of customers.
It also keeps the customers informed about any changes that have been made and this is a good method of customer service. At Boohoo.com they place advertisements about new promotions and products that have been introduced.
For Boohoo.com advertisements play a big part on the way that the business promotes themselves and the way that they provide customers with information.
They place many advertisements on their website and also magazines. This is an advantage for customers because they will receive more information on what the business is providing and if the business has advertisements they will be seen as an reliable business which will gain the customers satisfaction and loyalty. The advertisements also help the business to monitor and keep a track of what the business is providing and it can also be used as an method of market research.
http://answers.yahoo.com/question/index?qid=20100905061322AAONfTq http://www.learnmarketing.net/Benefits%20of%20internet%20marketing%20for%20the%20business.htm http://www.allthingsweb.co.uk/online-marketing-benefits.html http://www.colmmcgill.com/online-marketing-benefits-for-small-business-an-online-presence http://www.marketingdonut.co.uk/marketing/internet-marketing/social-media-and-online-networking/social-media-making-it-work-for-you-and-your-business BTEC BUSINESS LVL 3 BOOK 1
World Wide Web Marketing Second Edition – Jim Sterne
E-Commerce – Jeffrey F. Rayport/ Bernard J. Jaworski