Describe the key benefits and opportunities presented by internet marketing activity for Viola Drinks Ltd. and again how this help formulate and change the marketing mix for the business. In this assignment I will describe the fundamental benefits and opportunities presented by internet marketing activity for Viola Drinks Ltd. and furthermore how this helps formulate and change the marketing mix for the business.
Internet marketing brings a lot of opportunities and benefits to businesses for instance reach to wider audience therefore raising awareness of the brand and attracting prospective customers, reducing overhead cost of the company as running and online business does not require as much finances as a regular business, and improve availability. Products: Products choices are informed by market research where customers’ needs and requirements are assessed. Feedbacks given by customers to the organisation will benefit Viola Drinks Ltd because they can modify their existing products or develop new product for their customer’s satisfaction.
Internet marketing has divided product into two parts 1) core product and 2) extended product. The core product is the actual “product purchased by the customers to fulfil their needs” and the extended product is “the benefits build around the product”. Price: Price comparison is common online. Viola Drinks Ltd needs to make ensure that their online prices match with their competitor online prices. For instance online price comparison websites such as www. kelkoo. com and www. comparethemarket. com dedicated to comparing prices on products in order to find the best deal for the customer.
Customers can log on to their website, search for a product, compare the prices and get a good deal. This will benefit Viola Drinks Ltd. to compare their prices with their competitors. The reason why online pricing is better than offline pricing is that online prices are very clear and transparent for the customer and the business at large because they can take advantage of the pricing that may change regularly or take advantages of special offers that last for a limited period of time and compare the amount competitors are charging. This is called price transparency it can only be achieved online as customers will be hunting for bargains.
Place: Viola Drinks Ltd has integrated internet marketing within their already existing marketing strategies to create another sales channel. The benefit of Viola Drinks Ltd moving their business online is that they can “minimise cost of inventory, transport and storage while fulfilling demands from customers”. Furthermore, search Engine Optimisation (SEO) The accessibility and visibility of Viola Drinks Ltd is important through Search Engine Optimisation. Search Engine Optimisation benefits Viola Drinks Ltd. to be recognised among leading search engines such as Google, Bing and Yahoo.
For a company to have an online presence they must be on the top list on the search engines. Optimizing your website for search engines is a gathering of techniques that simplifies a search engine’s task of searching, for information posted on your website. Therefore it is crucial to registering with the big search engines including Google, Bing, Yahoo and other search engines while making sure that the website contains the adequate keywords so the site obtains a high raking placement in the relevant searches that people carry out.
This can be achieved by Viola Drinks Ltd. hrough incorporating the adequate keywords that any prospective customers might search for consequently increasing the visibility of page and raising awareness of the brand. Promotion: Promotion is an important aspect in internet marketing. Bringing the products to the customers’ attention will help Viola Drinks Ltd. to generate more sales. Online promotion directly markets to the customers as it regularly pop-up sales ads. “The marketing function concerned with persuasively communication to target audience the components of the marketing program in order to facilitate exchange”.
The opportunity of Viola Drinks Ltd. promoting their products online is that their customers can have real-time up to date what the latest promotional offers. Furthermore customers receiving direct e-mail from Viola Drinks Ltd about products that the prospective might consider purchasing will pull them to visit the website more. Advertising: online promotion has helped Viola Drinks Ltd. to reach their target audience, therefore getting more customers and bringing awareness of the different benefits and features of their existing and new products which is dramatically benefiting the company.
Online advertising has grown over the past years “Online advertising spending in the UK has overtaken television expenditure for the first time, a report has said. Online spending grew 4. 6% to ? 1. 752bn in the first half of 2009, while TV spending shrank 16. 1% to ? 1. 639bn”. This shows how online advertising is increasingly growing in popularity in the UK and the benefit Viola Drinks Ltd. will have from online advertising is that they can get more customers as they are able to reach a greater audience and have new sales channels.
Furthermore online advertising is cheaper and more convenient to reach a wider target audience. Viola Drinks Ltd. website enables their customers to shop and search for information 24/7 from the comfort of their own bed or from any other location. The benefit of online advertising to the customer is that he/she can get the information as far as they have an internet connectivity while offline advertising such as TV, billboards and newspapers ads are not that so popular as they used to be. In a recent article from BBC it is stated that online advertising has over taken the traditional forms of advertising.
Globalisation: Moving on, the benefit of Viola Drinks Ltd. going online is to reach to a wider audience and expand the company to trade in a single global marketplace and the blurring of social and cultural differences between countries. Viola Drinks Ltd hence has make sure that they have a comprehensive understanding of the foreign markets environment and assess the advantages of their own products and service they provided to their customers on a world-wide scale. 24/7 Accessibility: Last but not least 24/7 accessibility is one of the major reasons for a company to go online.
For Viola Drinks Ltd to go online it will mean that more customers can get to their stores at their own time. “Your store is open, 24 hrs. a day, 7 days a week. Further, your customers are worldwide in reach, and can shop anytime that they want to”. This is the benefit that internet marketing provides to Viola Drinks Ltd because their customers can shop online at any given time. With the company’s presence online their customers will not be disappointed as they can always shop at any time of the day without leaving the comfort of their house.
P5 – Explain how internet marketing has made Viola Drinks Ltd. more efficient, effective and successful. In this assignment I will clarify how internet marketing has made Viola Drinks Ltd. more efficient, effective and successful and how the increasing availability of the web gives business a number of effectiveness and efficiency. Dynamic Pricing Online pricing is done successfully thanks to the advent of technology. For instance flights change price according to the time of year; prices for flights go up during the half-term, as they know families will want to go at this time.
Viola Drinks Ltd. website uses dynamic pricing charged prices categorise customers in different groups. “The prices are updated in real time to the type of customers or current market condition”. Viola Drinks Ltd. website has managed to establish this through their website. The efficiency and effectiveness of dynamic pricing can get Viola Drinks Ltd to capture more consumer attention and surplus, consequently meaning more generated profit for the company. Social Media: Social media has helped in a great deal in Viola Drinks Ltd. online advertisement.
Social Media website such as “Facebook” and “Twitter” are the two most popular and used social media networks with over 1 billion visitors between them. The exploitation of social media has facilitated Viola Drinks Ltd to send out promotions and keep people up-to-date on upcoming events and products therefore increasing the opportunity to gain sales and also to profile their customers through psychographic profiling to target, young adults up to the age 24 who spend a great deal of their time online these are. Freedom of Choice has given Viola Drinks Ltd. ustomers the opportunity to pick from a variety of products.
Viola Drinks Ltd is providing their customers with options to choose different products online. Furthermore they have offed their customers all over the world the freedom of choice from a different range of products and the option to choose their own delivery time and location. Track your Purchase online processes can help customers to track their order through the company’s website as they will be paying for their products or services before they receive it.
The efficiency and effectiveness of this is that customer’s feel reassured that they can track their order without worrying if their purchase will make its way safely to their address. Viola Drinks Ltd website allows their customers to track their purchase from order, dispatch to transportation before it with the courier for delivery to their home address. Once more this reassures the customers and makes them feel that they are obtaining a good service online. Visual appeal, Viola Drinks Ltd. uses images on their website to make it easy and interesting for their target audience to have a clear view of their products in.
Doing this it is clear that Viola Drinks Ltd wants to meet their customers’ requirements as they have the option to view the products, label which include the nutritional information of their drinks as consumers undoubtedly would want to know how much sugar the drinks contain if the individual has health concerns. P6 – Explain the challenges of globalization facing Viola Drinks Ltd. when deciding to embark on internet marketing as a promotional tool. In this assignment I will give details about the challenges of globalization facing Viola Drinks Ltd. when deciding to embark on internet marketing as a promotional tool.
One of the challenges of internet marketing facing Viola Drinks Ltd. is the costs. Costs of setting up a website can be quite expensive at first, as you have to consider things such as, the domain name; protection of the website; people looking after the website, keeping it up to date and functional; designing the website; hosting and staff to look after the consumer’s requests and query’s. So this is a big thing that a Viola Drinks has to consider about when starting up an online business or website, as all of these things add up and can result in costing a lot of money.
Another less taxing challenge of internet marketing confronting Viola Drinks Ltd. can be the information they decide to put on the website. When creating a website, Viola Drinks Ltd. has to be careful of the content that they put on the website. A business doesn’t want to overload the customer with information on products, as the customer will lose interest and find another website, which is more to the point and easier to read. Another challenge of internet marketing that Viola Drinks has to deal with is security.
An online business makes their profit through online sales, and therefore needs to make sure that people feel secure and safe doing so. Payment Security is one of the largest challenges that Viola Drinks Ltd. face when operating on the internet. Customers want to ensure that their bank details are kept safe from hackers. Therefore Viola Drinks Ltd. must ensure they have a valid SSL certificate which encrypts sensitive information so nobody else can access it. Furthermore they can do this by making sure their website has regular virus checks and some sort of software to stop it from being hacked.
They also could make sure that they use a very secure system when people are paying for products, such as NatWest have the special password system, so that when you are about to purchase a product, the customer will have to enter the password as well as all the relevant card details. A company could also use companies such as, PayPal and ask customers to pay through there. This will make the customer feel more secure as they know it’s a website they can trust. Viola Drinks Ltd. is also exposed to competition through global website visibility.
The problem with having your website on the internet is that you are exposing yourself wide open to competitors who can view nearly everything about your business model. Viola Drinks Ltd. exposes their pricing, promotional offers, customer support service, layout of your information and how they have categorized certain data. This is beneficial to their competitors such as Coca Cola. Furthermore having manufacturers with online presence automatically causes disintermediation within the supply chain. This is a challenge for Viola Drinks Ltd. who sells their products that they get from a wholesaler, which needs a manufacturer.
Viola Drinks Ltd may run into channel conflict, which is a challenge. This is when a customer can find the product that a business is selling cheaper elsewhere, therefore they are less likely to buy other products from Viola Drinks Ltd and they will lose money. Therefore, a business needs to make sure that it is looking at what its competitors are doing and keep their products and prices up-to-date. Lastly A challenge of internet marketing that Viola Drinks Ltd might face can be culture. When a business is starting up a website in a different country, they will have to take into consideration the country and their views on things.
For example: in China the colour red is seen as lucky, therefore Viola Drinks Ltd may choose to make their website red if they were to start up their business in China, as people may be more likely to buy products from them. When starting up an online business in another country they will also have to take into consideration staying within the law. Additionally Viola Drinks Ltd. will have to consider tax; the description of products; language barriers; and modesty laws. All these could be potential problems and could easily cause Viola Drinks Ltd. to fail if they are not looked into and dealt with.