P1 Role marketing in selected organizations
Internet marketing
Internet marketing can help businesses to acquire new customers, than only keep existing ones. When you are using internet marketing your businesses can build up a relation with your customers. They come to a strategy and can helps the businesses to combine the 7 P’s (product, price, place, promotion, people, processes, physical evidence).
4 P’s
When businesses are selling a product they only use 4 P’s (product, price, place, promotion)
Product
Internet marketing function is looking to the product what is can offer to the market. The internet marketing helps to see if there is demand for the product.
On the internet/magazine/newspapers/etc they can explain their products. This is saving the employees time when they need to explain it in a shop. The internet also helps the customers to modify their products. The internet can also show what previous customers bought as well to attract other customers as well to buy.
Price
The marketing function is looking as well the price which a product is worth. It can help to define the target group and which price is linked to that target group. There are three ‘’pricing strategies’’ which you can use because of the marketing function businesses can use.
Penetration pricing
Destruction pricing
Competitor pricing
Skimming the market
Discrimination pricing
Businesses can see what kind of marketing other businesses did on price and adjust their prices on that figures. A very good example of nowadays is that Jumbo is advertising on television with ‘’ if you find your product somewhere else cheaper you get the difference back by Jumbo”.
Place
The marketing function can define the place for the product/service. How customers can find the product/service can be done by the marketing function. They can attract also new and retaining customers by the medium internet.
The business can use marketing to help the best place to sell their products. If they put on their website where they are located. They have more chance to sell their products. If they then also promote their products by saying where you can buy their products it is even more stimulating the sales.
Promotion
Businesses who use marketing need to consider how they bring their services/products under attention by their potential customers.
They can use internet marketing by promoting their products. They can put ads or links to websites like YouTube, Facebook, twitter to attract random customers. But if your business sells phones you also can put ads on websites where they only sell accessories for phones.
The 3 extra P’s
When businesses are selling services they use three extra P’s (people, processes, physical evidence). You can recognize the service of a business if you cannot touch or feel the activity of the business.
People
If you deliver a service towards customers (people) are they at the centre of your service delivery. The satisfaction of the customers are depending on the service the business delivers. It is also reflecting your company image to the society. If a company delivers a bad service towards you. You make a bad image of the company.
If a newspapers writes an bad article about your business you can use internet marketing to react on the article. You can say why the businesses did it or why it is not true what the newspapers are saying. You are having than a better chance your image is much better towards your customers.
Processes
When businesses deliver services to you they make use of processes. If a bank wants you to fill in forms for special actions. The bank can put these forms all ready on the internet so customers can fill this in at home, which result in it will go faster when they come at the bank.
Physical evidence
If customers want to buy a product they mostly would like to see/touch the product and see if is working this is physical evidence. By internet marketing they make use of this by actions like trials of software of that you can try the product for a week and if you do not like it you can get your money back.
Internet marketing research
By the use of internet marketing businesses can do research for their products. If there is demand to their products in certain areas. Companies can segment and target by 4 different categories
· demographic
· Psychographic
· Economic
· Usage-based
Demographic
If businesses want to develop a new game. They can use the demographic research by looking how many people might be interested in your product. If they see that in the city Utrecht is now playing a kind a similar game it would be interested to introduce the game there.
Psychographic
By psychographic you segment the people on lifestyle and personal characteristics. The questions is more like what are our possible customers. When you use the internet for this you can ask if they can fill in a quick survey in they bought a product on your online website. You can than make profiles of customers who bought the same products. You can maybe see links which interest are the same of the customers.
Economic
If you look at economic prosperity you look at how much money there is in a country or city. This is something which marketing agencies do research on. You can also this information on websites such as CBS.nl or eiu.com. They do research on such questions as well.
Usage-based
It is informing businesses how people are usingthe internet. If you see that a lot of people are flying with Ryanair in Utrecht. You can decide to promote Easyjet over there because a lot of people are using a kind of similar air company.
Internet marketing towards achieving business objectives
In business objectives internet marketing is playing a big role in. This is because internet became more and more important to businesses. Businesses need to know how relevant the factor internet can be of influence for their business.
The web technology can help businesses by
· Market penetration
· Market development
· Product development
Market penetration
Because of the internet marketing they can offer better services which they all ready serve. They can show for example where customers can buy their products. Instead they need to call to a business or ask someone else they can just search the information they needed on the internet.
Market development
Businesses can advertise easily because of internet can reached global. They can reach new markets much more easily because of the internet.
Product development
Because of the internet marketing they can develop new products of the information they can get. These products can also be sold on the internet.
These are all factors which can help businesses to achieve their objectives.
Target & segment by internet marketing
Businesses produce products or deliver services because of the demand of the market. Otherwise the businesses would not exist if there was not any market. They can target their group by doing research which I actually all ready explained in paragraph ‘’internet marketing research’’. Only which is now new are the examples which I outlined below:
Demographic
Easyjet can do demographic research by looking in which country the people fly the most. They can decide on that outcome what they can do with internet marketing for example if they see that in the Netherland people don’t fly a lot advertise more on Dutch websites with Easyjet pop-ups.
Psychographic
Easyjet can ask customers which flew with Easyjet. To ask them if they would like to fill in a survey so they can make profiles of customers. If they see that a lot of business people who flew with Easyjet would like to sit in front. They can choose to send those business people special offers they can have discount if they order now and they always will have access to front seats.
Economic
If they see not a lot of people have a lot of money to spend in Greece. They can offer very cheap offers in Greece to attract them.
Usage-based
If you see that a lot of people are flying with Ryanair in Utrecht. You can decide to promote Easyjet over there because a lot of people are using a kind of similar air company.
Disintermediation
If I need to explain disintermediation I first will need to explain what intermediaries are.
Example:
Example:
If I would like to produce shoes. I need materials to produce these shoes. The parts will come from all over the world and will be transported to a fabric which is called Italy in China. The shoes which will be made there will then transported to Spain where they will pack the shoes. The packed shoes will than go over to a distribution center in the Netherlands. Which than will be sold to shops who will sell the shoes. The steps between the production and the customers are so called intermediaries.
With disintermediation they mean the products you buy will directly ship to your house, which is influencing the logistic steps of your company. For producers it is costing less money if they do not have the whole logistic way. They also have the advantage you bought the product and they sold an item. In comparison when you have your items in shops, they are never sure they sell all their products.
Benefits internet marketing
With internet marketing businesses have the advantage customers are choosing to come on their website and is so a pull medium. Which is also a big advantage businesses can combine the seven P’s on one place.
Online promotion
One of the benefits of internet marketing is online promotion which can be defined in 4 chapters.
· Search engine optimization which is meaning you can register your organization by a search engine
· Banner advertisements which is meaning you advertise your products/services on websites
· Affiliate programmes which is meaning you place links on similar business websites
· e-mail promotion which is meaning you send e-mails to customers. The e-mails are mostly not very successful people see it as a sort of spam. If you only send e-mail to people who accepted this, is very effective.
Individualizing market attention
By using internet marketing you can make use of personalization. An example is the website www.bol.com they show recommendations of other customers, allowed to give reviews, and can modify their own products according to the customers preferences.
Increased information & product impact
Something which businesses cannot really offer by internet marketing is the 7th P (physical evidence) . They cannot really let the customer feel the product through their screen if it was possible they would definitely do this. Which they can show/offer:
· Lists of their existing customers
· Day/week/months trials of software
· Warranties
Wider markets
When you use internet marketing you can reach a much more broader target group. There is no other medium which can do this than internet.
Mix online & offline activities
Because of the internet marketing companies established their image towards customers and sell than also sell more in the physical world.
P2 Benefits internet marketing towards customers
When it comes to internet marketing the customers are also having benefits. The technique is growing fast and customers and getting more and more familiar by using internet. The benefits which customers have are :
· Price transparency
· Product information
· Dynamic pricing
· Responsive transactions
· Customer service
o Complaints
o Chat
Price transparency
By price transparency we mean the customers easily can check the prices between products and services of organizations. If you look at the website of kieskeurig.nl (www.kieskeurig.nl) Customers can choose their product and all kind of organization than pop up with different prices and with the best reviews of customers.
Product information
Internet marketing is providing customers a lot of information about the products and also compare the features of the products. The product details are mostly
· Price
· Description features
· Colours
· Images
· Drawings
· Promotional deals
Customers can make contact by e-mail and chat with staff.
Dynamic pricing
Customers can have advantages and disadvantages of dynamic pricing. When there are many products in stock and the businesses doesn’t sell well, prices will be of influence of that and will go down. When there is much demand to the product and there are not many products in stock the price will go up. When you would like to buy tickets to go for Rome, it could be the tickets are quite cheap but if the Pope dies the next day. All the tickets for Rome will go up because many people than want to go to Rome to be at the funeral.
Responsive transactions
Internet marketing is providing customers the immediate satisfaction feeling they bought a product. When you buy a product on certain websites and they got your e-mail address they mostly send you an email by thank you for doing business with us, other customers were also interested in these products.
Customers service
The internet marketing helps businesses to give better services. They can use the FAQ forms and can see how they can contact the business. If customers have a complaint they also can send an e-mail by special forms, which is handy to the business because than they can category those complaints. When the customers send an e-mail some businesses send an e-mail directly back they will answer the complain in 48 hours. The customer knows than where he/she is up to. Some businesses are also offering chats to customers they can ask their questions to each other but also can talk about the products the business is delivering.
