The Practicalities Of Going Online
Section One: Introduction
The internet offers the potential to achieve a global market success for any business. Businesses that go online increase their opportunities to reach their target market and is cost effective when compared with other forms of marketing. It creates opportunities, benefits and challenges for a business but in the long run is worth it for the added publicity and hopefully profits. Going online has benefited many organisations including Tesco PLC. I will be using Tesco as my example of the benefits, opportunities and challenges for a business by using the internet. Tesco has operated on the Internet since 1994 and started an online shopping service named 'Tesco Direct' in 1997 which gave their customers the availability to shop online and have the items/groceries delivered straight to their house. It is also possible to order groceries online to be delivered to the customer’s door. Section Two: Task One (P4)
To determine and describe the benefits, opportunities and challenges for Tesco; I will use the 7P’s of marketing: Price
Tesco have finest, regular and value products within their range offering choice of value and quality. This creates an ease and simplicity for their customers to choose the right price for their budget using dynamic pricing. Although this doesn’t affect Tesco’s decision it can benefit them as many of the customers may find a cheaper version of the product they want and buy more because of this. This easy access to many price ranges gives Tesco the opportunity to provide to all their customers and reach more people with their ranges to suit. 
One important benefit for Tesco is by establishing and creating their business online and using search engine optimisation will reduce cost; it will be less time consuming and create simple access for online customers by the use of search engines and social media. This is highly important as it gives Tesco the opportunity to communicate with their customers quickly by email or their information pages online. Tesco is both a brick and click business. They can provide to their customers in-store or the convenience for customers at home online.
Promotion and advertising is an important stage in the role of internet marketing as it can bring the product to the customer’s awareness and the use of promotional offers such as ‘BOGOF’ (buy one, get one free) or other discounted prices; this influence will draw many customers and benefit Tesco with the extra profits that will be made from more purchases by the customers.
Going online has given Tesco the opportunity to reach out to more customers than if they had not gone online. This is because some people may be unable to go in-store and so have their purchases delivered to them or the availability of store products may be limited as it is a small store and therefore they need to go online for greater product selection. This will also benefit them as in the long-run they will gain more sales, profits and customers.
Physical evidence is not relevant in this case as there is no physical evidence for the customers as they are at home on the internet not in-store. Physical evidence is relevant for the in-store customers as they can see and examine the products to determine if they want it, it is also an opportunity for the customers to see other items that they may have heard of and seeing them can entice them to make the spontaneous purchase.
The online process that Tesco’s customers will need to go through is easy and stress-free. It simplifies the whole shopping experience and bring it into the convenience of their own home. This is the opportunity for Tesco to reach out to more of their customers as well as increasing the amount of products they would buy. In-store only allows you to buy or be inspired by what you see, if they are at home they remember something they need or see an offer such...
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