P2: Describe how selected organisations use internet marketing
P3: Explain the benefits to customers of a business using internet marketing
Unit Content L1 & L2:
Marketing: increased integration of marketing mix (4 Ps) and extended mix (7 Ps); relationship marketing; importance of identification of new product and market development opportunities; modern information and communications technologies (ICTs); strategies to achieve business objectives; technology-enabled targeting and segmentation eg demographical, psychographic, economic, usage based; business-to-business (b2b), business-to consumer (b2c) and consumer-to-consumer (c2c) such as eBay; disintermediation and direct market communication by producers.
Internet marketing: greater individualization of market attention eg one-to-one relationships, mass customization, increased information and cost-effective information gathering methods; reaching wider and more distant markets; product impact, enhancing traditional products and services, online games and music, mix between on and off line activities; opportunities enhancing marketing effectiveness eg through ‘one-to-one’ communications; understand customers and target more effectively.
Benefits to customers: opportunities to compare and select providers; increased bargaining power; availability of more comprehensive and up-to-date product information; opportunities for lower costs via ‘dynamic pricing’ eg internet auctions; greater supply convenience through availability of responsive transaction facilities eg airline ticketing; immediate online sales and customer service without travel or unsatisfying sales experiences, availability of digital complaints services; opportunities to pool customer experiences collectively via chat rooms ie consumer-to-consumer (c2c), better prices with ‘middle man’ removed, no sales pressure, easier to cancel as no person-to-person...