Learning outcomes
On completion of this unit a learner should:
1 Know what role internet marketing has within a modern marketing context
2 Understand the benefits of internet marketing to customers
3 Understand the opportunities offered to businesses by internet marketing
4 Be able to investigate the challenges faced by businesses using internet
marketing.
1 Know what role internet marketing has within a modern marketing context
Modern marketing: increased integration of marketing mix (4 Ps) and extended
mix (7 Ps); relationship marketing; importance of identification of new product
development 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 individualisation of market attention, eg one-to-one
relationships, mass customisation, 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
2 Understand the benefits of internet marketing to customers
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)
3 Understand the opportunities offered to businesses by internet marketing
Communications: more frequent individualised communications to build
relationships; use of communications to promote, eg special offers, product
launches; new services; use of purchase history to tailor offers to individuals
Product development: increased range of customised buyer menus resulting in
more accurate responses to customer needs and wants; use of internet
information to identify product development opportunities; opportunities for
immediate sales of products, eg banking, insurance policies; possibilities of
substitute online forms of products, eg music, films, radio and TV programmes;
podcasts; market development — ability to expand markets more cost-effectively;
lower entry costs for small businesses; opportunities to offer services ‘virtually’,
eg virtual tours by estate agents; operating 24/7, eg internet banking; ability to
link traditional methods with online marketing (‘bricks and clicks’); market
diversification opportunities, eg tesco.com
Business efficiency: use of internet to manage supply chain; use of electronic
communications to reduce staff costs; opportunities for increased sales from
existing customers; opportunities to monitor competitor activity; internet
business opportunities, eg use of paid-for promotion on websites, through search
engines, portals and links
4 Be able to investigate the challenges faced by businesses using internet
marketing
Competition through global website visibility: problems of channel conflict and‘disintermediation’; low customer confidence in payment security; challenge of
delivering to the higher reliability expectations raised; problems of managing
overload of market feedback — volume of individual/group customer profiles;
challenge of more complex analysis; keeping pace with market and technological
change; challenge of revising marketing goals commensurate with the
organisation’s capacity to process feedback; problems of ensuring maximum
access via ISPs and search engines; security of site information and payment
systems; challenge of linguistic/cultural sensitivity, eg Kelloggs’ European
promotions and in publishing, eg EuroDisney versus US Disney; challenge of
additional legal complexity
Scheme of Work |
Session: 2007-2008 |
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School: Business & Computing |
Course title and year: |
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Btec Natonal Diploma 2007/8 |
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Lecturer: Philip M Russell |
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Module/subject/unit: |
Unit 12 Investigating Internet Marketing |
Duration of Each Session: 1.5hrs |
| Week Number | 1st Session | 2nd Session | 3rd Session |
| 1 | Intro Pricing | 4 P's Ex 2 | Ex 3 |
| 2 | The Marketing Mix | 7 P's | Questions on Marketing Mix |
| 3 | communications technologies (ICTs) strategies | ||
| 4 | Dynamic Pricing | Work on Assignment | |
| 5 | Case study Easyjet | ||
| 6 | Basic Web Structure Go through Assignment |
Assignment 3 out | |
| 7 | Online product info Advertising | Advertising on the web | |
| 8 | |||
| 9 | |||
| 10 | |||
| 11 | |||
| 12 |
| Week | |||
| 1 | Find the cost of items of the web using a search engine and comparision sites to find the best value. | Using a search engine. Using a comparison website | Finding best value. Not all bargains are listed on comparison websites. Ass 1 |
| 2 | The Marketing Mix The 4 P's and the 7 P's + e P's. Importance of identification of new product development and market development opportunities; Identify the types of marketing | 4 + 7 P's comprehension. Virtual Modelling | Continue with Assignment 1 Initial Hand in + formative feesback |
| 3 | The importance of identification of new product development and market development opportunities. Modern information and communications technologies (ICTs) strategies to achieve business objectives; |
Assignment 1 Hand in Assignment 2 out |
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| 4 | Dynamic Pricing | Group discussion Dynamic Pricing | Assignment 1 feedback |
| 5 | Easyjet Case study | Case study research skills, comprehension | Assignment 2 in |
| 6 | Go through how to create the assignment structure Web site Structure | Creating a simple web page Creating a simple web site 4 pages | Assignment 2 feedback |
| 7 | Case study online product information | Creating a banner ad. | |
| 8 | Assignment 3 in | ||
| 9 | Assignment 4 out |
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| 10 | Assignment 3 feedback | ||
| 11 | Assignment 4 in | ||
| 12 | Assignment 4 feedback |
Resources
Learners need to understand the basics of online business and the marketing process
before they can be expected to grasp the distinctive features of internet marketing.
Learners should be aware of the role that marketing plays in major organisations,
including key elements such as segmentation, research/analysis and mass/niche
marketing from Unit 3: Introduction to Marketing. This unit considers the ways in
which internet operation develops that process. It is therefore about how the
internet and related digital technologies are used to improve marketing
performance.
Learners should be able to provide cases in which consumer power has been
significantly strengthened as a direct result of internet access. Examples include chat
rooms that enable comment upon quality of product service and which challenges
market power, eg Chase Manhattan Bank. Learners should be able to make
appropriate judgements supported by the evidence they have produced.
Participation in appropriate user chat rooms may also illustrate the potential for
consumer power but this clearly raises questions of internet-use supervision,
especially in large learner groups. The selection of industries featuring firms which
have a significant internet presence, compared to those which do not, offers
opportunities to contrast the relative degrees of flexibility available to suppliers and
consumers alike. Learners can contrast the web presence of different businesses and
reach judgements concerning which business is most responsive to shifting consumer
preferences.
Learners should be aware of the range of new types of business that consumers can
participate in. The growth of businesses such as eBay, Amazon and Google are
examples that exist because of the internet. But attention should also be drawn to
the increased use, in recent years, by traditional businesses — a good example of this
is Tesco.
Learners should be able to evaluate the circumstances under which internet
marketing may prove worthwhile. Examples include those businesses for whom mass
customisation may prove more realistic, eg low-volume individualised products or
individualised service industries, eg directline.com. Learners should be able to
consider the value of these strategies in conventional business (cost-benefit or
investment-return) terms.
Case studies of problems experienced in the field of internet marketing will allow
learners to evaluate this business innovation, presenting both strengths and
weaknesses of the new technology available. Examples such as the low-cost airlines
show that online facilities mean costs can be pared down to the minimum. Learners
might be invited to assess the impact of this on the mainstream carriers to illustrate
how businesses respond to these changes. The exposure to keener competition and
problems of channel conflict, alongside questions of low consumer confidence, will
all threaten the success of a venture.
Unit 12 Investigating Internet Marketing National Syllabus
Suggested Reading
Textbooks
Cave S — Consumer Behaviour in a Week (Hodder Arnold, 2002) ISBN 0340849711
Chaffey D — E-Business and E-Commerce Management (FT Prentice Hall, 2003)
ISBN 0273683780
Chaffey D, Mayer R, Johnston K and Ellis-Chadwick F — Internet Marketing: Strategy,
Implementation and Practice (Prentice Hall, 2002) ISBN 0273658832
Dibb S, Simkin L, Pride W M and Ferrell O C — Marketing: Concepts and Strategies
(Houghton Mifflin, 2005) ISBN 061853203X
Needham D and Dransfield R — Marketing: Everybody’s Business — Covering European
and International Marketing (Heinemann, 1994) ISBN 0435450255
Websites
www.amazon.com Amazon — online shopping
www.bbc.co.uk The British Broadcasting Corporation
www.bized.ac.uk Business education website including learning
materials and quizzes
www.cim.com The Chartered Institute of Marketing
www.ebay.com eBay — online auctions
www.easyjet.com Easyjet main website
www.marketingteacher.com Free marketing resources for learners, teachers and
professionals
www.tesco.com Tesco
www.the-dma.org The Direct Marketing Association
Canned Spam Act, Patriot Act