Unit 30 Internet marketing



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Table of Contents

Introduction

Internet marketing in present age provides one of the most economical and suitable method so as to communicate the promotional message of the organization to their intended consumer segment. Internet marketing includes various tools such as email, search engine marketing and social media marketing etc. Internet marketing is beneficial for marketers as it is highly cost efficient and helps marketers to achieve their marketing objectives by targeting their consumer segment (Scupola, 2005).
Unit 30 Internet and ebusiness

For the present context example of Nike has been chosen which is into marketing of footwear, equipment, accessories and apparel products etc. Nike is American multinational organization and is one of the biggest suppliers of athletic apparel and shoes. Marketing strategies adopted by Nike can be termed as the major growth factors for the success of Nike in present age wherein suitable usage of internet marketing has been done by Nike so as to enhance their sales and strengthen their brand awareness among consumers.
Present paper would evaluate the four learning outcomes mentioned below so as to know about the internet marketing tactics adopted by Nike for marketing of their products.
LO1. Understand marketing through the internet.
LO2. Be able to use the internet for promotion using digital marketing communications
LO3. Be able to produce market research to support customer relationship management
LO4. Be able to design an internet marketing plan



Task 1 and 2

P1. Understand marketing through the internet

First task of the present paper would examine the elements of internet marketing as used by Nike for promotion of their products. Marketing mix elements used for internet marketing would be explored for the company and comparison would be made with the internet marketing tools. Finally task 1 would evaluate the role of interactive order processing system in overall marketing of products for Nike.

P 1.1 Explain the elements of internet marketing

There are several elements of internet marketing through which marketers deploy internet marketing for promotion of their products such as e-commerce, e-business, macro & micro environmental factor affecting internet marketing, digital marketing and benefits of internet marketing (Thong, 2009). Digital marketing can be defined as the marketing tactic which makes use of the electronic devices such as personal computer, laptop, mobile phones, gaming console, tablets and other handheld devices etc. Digital marketing platform used by Nike include website, email, apps and social networks. E-commerce can be defined as the process of trading products & services of the company by making use of the computer network such as internet. Technology used for e-commerce would include fund transfer through electronic mode, mobile commerce, online transaction processing, electronic supply chain management and electronic data interchange etc. E-business can be defined as the appropriate application for the internet and communication technology in business domain so as to support all business activities. Nike seek numerous benefits through internet marketing such as interactivity with consumers, accurate targeting for their consumer segment, high reach for their marketing plan, extended scope, immediacy and closed loop marketing wherein consumer feedback can be gained so as to enhance useful of the products developed by Nike (Tornatzky and Klein, 2012). Micro environmental factors affecting internet marketing plan of Nike includes their ability to adapt advanced technology, enriched content to involve consumers, well defined target consumer segment and ability to react as per consumer demand. Macro environmental factors affecting internet marketing plan for Nike includes changes in technology, usage of electronic fund transfer & paper money, internet security regulations and consumer privacy protection act etc.

P 1.2 Evaluate the internet marketing mix



P 1.3 Compare internet marketing tools – e-tools

P 1.4 Examine interactive order processing

Nike is one of the major shoe and apparel retailers in the world having major part of their sales through online method. Nike has developed exclusive portal for sales of their products which are offered to the consumers from their online store along with the facility of customization by consulting with the online trainers available at the Nike website for the online users making their order through their website (Jeyaraj et al, 2006). Nike makes use of the five steps in order to accomplish online sales for their products. First step in online sales is find product wherein with the help of toolbar given at the website products are searched by category such as men, women and kids etc. Products are added to the shopping cart in the second step by selecting quantity, third step is checkout wherein users would be logged into their Nike account. Fourth step would be delivery & payment wherein consumer decide on the delivery address and make payment. Payment can be done through several methods such as credit/debit card, iDEAL, paypal, gift card and promo code etc. In the final step, consumers are allowed to review & submit their order so that they are happy with their order.

Figure 3: Showing the online sales system for Nike

P2. Be able to use the internet for promotion using digital marketing communications

Present task would evaluate the usage of various internet marketing tools such as search engine marketing, opt-in email marketing newsletter, online public relations and file sharing sites etc in context to Nike.

P 2.1 Demonstrate the mechanics of search engine marketing



P 2.2 Write the copy for a suitable opt-in email marketing newsletter

Opt in email marketing newsletter are the marketing tactics when someone offer option to receive bulk emails (email sent to many recipients at the same time). A mailing list or newsletter list is developed through which mail is sent to large number of potential consumers of the company so as to provide them specific information regarding products of the company (Mirchandani and Motwani, 2011). There can be two opt in i.e. unconfirmed opt in and confirmed opt in. In unconfirmed opt in list emails are provided to the software and there are no attempt made to ensure that the email relates to the right person. In confirmed opt in list software would first confirm that the email relates to the right person.
One of the possible examples for the suitable opt-in email marketing newsletter for Nike can be given as under:

SPRING IS HERE !!
Browse the collections in the spring 2015 eCatalog
Pick out spring time outfit by flipping through the pages. Browse now>>>

P 2.3 Follow guidelines for best practice in online public relations

P 2.4 Demonstrate how businesses can use new digital media communities, e.g. file-sharing sites
File sharing can be considered as the practice of providing access to digital media such as multimedia content, documents and computer programs so as to develop internet as community for mutual benefits. Some of the common examples of file sharing sites include You Tube, Twitter and Flickr. Customers uploading and using content through such sites would be the owner of such content and file shared by them. Such file sharing services are important for the business organization as they can make use of such services and to protect and maintain company’s data despite of their limited capacity and desire to maintain on site technology (Olsen & Johnson, 2013). Some of the common examples of file sharing services used in the business include Dropbox for business, SugarSync for business and Google Drive etc. Businesses can also use these techniques in order to manage their online reputation wherein they can safeguard their data and showcase capability to maintain user data as well.

TASK 3 and 4

P3. Be able to produce market research to support customer relationship management

Present task would be related with one of the major retail giant named Walmart wherein company is dealing in retail industry across the world. Walmart is involved into extensive market research so as to support customer relationship management strategy of the organization so as to understand consumer needs and offering products & services in accordance to the consumer need. Such market research helps Walmart to enhance customer satisfaction and build a loyal customer base.

P 3.1 Conduct secondary market research

In order to conduct the secondary market research regarding customer relationship management of Walmart several sources such as journals, research papers, online resources and news articles have been referred. It has been revealed through secondary resources that Walmart makes use of the customer need assessment parameter through various customer preference based researches and by understanding consumer behavior at purchase and consumer desire for the value proposition. With the help of secondary research qualitative data has been collected which provides the ways and effectiveness for the CRM strategies deployed by Walmart. Walmart has deployed nationwide loyalty program in UK so that a loyal consumer base can be developed and consumers can be offered benefits for the bulk purchase through Walmart stores. Further in order to deploy the customer relationship management Walmart makes use of the high end technology which provides customer detail and past purchase history so that basis on this consumer’s buying behavior can be identified. Further mobile applications and online customer connection tools would help in order to know feedback of consumers regarding products offered by Walmart (Pan and Jang, 2008). Further secondary research data can be collected through several online tools available such as the blogs, Google insight & trends, research communities and results of online research etc. These online tools are helpful in order to gain access to the qualitative and quantitative data required for the Walmart so that customer satisfaction can be assessed.

P 3.2 Design an online survey

P 3.3 Demonstrate the use of electronic customer relationship marketing

Customer relationship management can be considered as the corporate strategy which emphasize on the development of customer relationship. Electronic CRM is defined as the marketing tools and techniques used over internet such as the email, data collection, website, warehousing and data mining etc. Electronic CRM is developed to build strong relationship so as to enhance overall potential for the consumer. E-CRM strategy deployed by Walmart is a combination of people, process and technology so as to build a better relationship between buyer and seller (Hamid and Kassim, 2004). E-CRM deployed by Walmart is as a result of the advancement in technology and shift of focus from Walmart towards customer centric processes in order to enhance consumer satisfaction towards the products and services offered by Walmart. Looking from the marketing perspective E-CRM used by Walmart comes as the software tool which is used by the organization so as to enhance customer relationship so that a portfolio of loyal consumers can be developed by the organization in order to build competitive advantage through loyal consumer base of the organization. The major benefit of implementing e-CRM is to gain the e-loyalty from the consumers for the organization. Deploying e-CRM for the consumers would help in order to enhance understanding of consumers to the business organization so that organization can have better value offering for the consumers based on their buying behavior and buying preferences. For example, E-CRM managed by Walmart is such that it stores the past purchase behavior of consumers and consumer preference for particular brand of goods so that next time when consumer comes in the Walmart store appropriate suggestions can be offered to the consumers which are matching with the past purchase behavior of consumer. This would help in order to enhance the overall sales for the Walmart as consumers would be able to get product suggestions as per their likeliness. Further consumers would be happy to share the information through e-CRM tool deployed by the organization in place of the physical contact made with the consumers so as to reveal information about their preference of particular products. In addition to this, knowing about consumer preference would also help Walmart to design pricing and promotion strategy in accordance to the consumers. For example, based on the overall past purchase behavior for the particular consumer self service kiosk would provide suggestions for the goods as per particular price and brand so that consumers can adopt these goods to enhance overall wallet share for Walmart (Ahn et al, 2013).
In addition to this, there are security issues attached with the e-CRM deployed by the organization as such open networks sometime lead to data theft from the system of the organization along with important financial details regarding customer. Further Walmart needs to engage into the permission marketing i.e. to gain access to consumer information by their permission and consumer should be given the right to share their personal information with particular organization. Transaction security and information security rules made in UK as per UK data protection act should be adopted by Walmart so that there are no adverse implications for the organization in future.

P4. Be able to design an internet marketing plan

Present section of the paper would address the internet marketing plan deployed by Walmart in order to enhance their sales with increasing market competition in retail industry. Due to large number of players in the retail industry market share and sales for the Walmart is declining and in order to enhance the sales and market share for Walmart internet marketing plan has been deployed by the Walmart.

P 4.1 Produce an outline internet marketing plan

Internet marketing plan outline for Walmart would be developed by first looking into the situational analysis. At present there is stiff competition in the retail industry with several well established players offering strong competition and new entrants are coming into industry with their unique positioning which makes difficult for Walmart to maintain their market share intact.
SWOT analysis of Walmart is as under:
Strength
Weakness
·         Strong brand name in retail industry
·         High end technology
·         Supplier relationship
·         Good perception among consumers
·         Value proposition
·         Strong presence
·         Maintenance of customer data
·         Resistance from community members for anti Walmart campaign
·         Exit from Germany
·         Non maintenance of legal regulations
Opportunities
Threat
·         To expand in developing countries such as India and China
·         To expand the product portfolio of the organization
·         To deploy technology for CRM activities
·         Opt in email campaign
·         Stiff competition from market players in retail industry
·         Legal obligations from health & safety and labor issues

External analysis for Walmart can be done in order to evaluate the PESTEL factors as to deploy the internet marketing plan for Walmart so as to enhance sales by achieving higher degree of customer satisfaction. Technology would be major enabling element so as to provide low cost through e-SCM and e-CRM tool would help in understanding consumer behavior (Al-Qirim, 2006). Economic factors such as low cost would be helpful for Walmart to attract consumers. Legal and social factors would be of immense importance as the internet marketing tools deployed by the organization should be as per consumer permission and should not create privacy threat for the consumers.
Competitor analysis for Walmart contains several retail industry organizations such as K-Mart, Tesco, Publix, Target and ShopKo etc. Further competitors for Walmart would differ from one country to another as in UK the major competitor for Walmart is Tesco (Chaston and Mangles, 2013).
Online marketing plan deployed for Walmart would include the objective setting process wherein first targets for the present campaign would be deployed and objectives for the present campaign is as under:
·         To maintain market share of Walmart intact
·         To enhance consumer satisfaction by knowing consumer purchase behavior
·         To maintain separate brand identity for Walmart so as to differ themselves from the other market competitors in retail industry
Different channels deployed by Walmart need to be understood such as texting and segmentation process adopted by the organization should be as per the channel deployed by Walmart for their consumers. Media use for the online marketing such as pay per click, email marketing or social media marketing should be decided based on the effectiveness for particular method of media and cost incurred for the promotion activities. Consumer feedback methods need to be deployed through online survey or social media methods so that continuous product improvement can be done for Walmart (Chong, 2014).

Conclusion

For the present context examples of two organizations have been taken in order to understand the internet marketing tactics adopted by the two organizations i.e. Nike and Walmart. It has been revealed that internet marketing practice adopted in context to the two organizations differ significantly as compared to the traditional marketing practice adopted by the business organizations.

References

Scupola, A. (2005), “Government intervention in SMEs’ e-commerce adoption”, in Al-Quirim, N. (Ed.), Global Electronic Business Research: Contemporary Issues, Implications and Future Trends, IDEA Group Publishing, Hershey, PA.
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Tornatzky, L.G. and Fleischer, M. (2010), The Processes of Technological Innovation, Lexington Books, Lexington, MA.
Wang, Y.M., Wang, Y.S. and Yang, Y.F. (2010) Understanding the determinants of RFID adoption in the manufacturing industry, "Technological Forecasting and Social Change", Vol. 77, pp. 803-815.
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Ab Hamid, N.R. and Kassim, N. (2004), “Internet technology as a tool in customer relationshipmanagement”, Journal of American Academy of Business, Vol. 4 NO.1/2, pp. 103-108.
Ahn, J.P., Kim, S.K., Han, K.S. (2013), “On the design concept for CRM system”, Industrial Management and Data System, Vol.103 No.5, pp.324-331.
Al-Qirim, N. (2006), “The role of the government and e-commerce adoption in small businesses in New Zealand”, International Journal of Internet and Enterprise Management, Vol. 4 No. 4, pp. 293-313.
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Chong, S. (2014), “Electronic commerce adoption by small- and medium-sized enterprises in Australia: an empirical study of influencing factors”, Proceedings for the European Conference of Information Systems (ECIS). 

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