Explain the Challenges of Globalisation Facing a Selected Business
When Using the Internet as a Marketing Tool
Unit 12 - P6
Whilst the internet provides multiple opportunities and benefits, it also generates
possible challenges that a business may have to face when the global market is
constantly increasing. A business has to be prepared for these challenges, face
them and overcome them if they are to be successful in the online world.
The process of disintermediation is the tendency to cut out the middle man. The
internet offers a direct channel of supply to customers wherever they are. This
does create obvious efficiencies and savings; however, there is a danger of
destabilising many older traditional channels that might still be valuable sources
of revenue to the business. Established businesses considering adding an online
distribution channel have to be cautious and consider the impact such a move
could have on existing methods of distribution. If a new online channel causes
problems with an established set of business relationships this would be channel
conflict.
The internet continues to raise customer expectations, and this is a challenge to
all online businesses. The 24/7 availability and convenience of the internet has
been reinforced with increased personalisation and price transparency.
Customers are beginning to expect high levels of reliability, responsiveness,
convenience, speed of the time it takes to visit the website, and speed of delivery
once an order is placed. These are all heavy demands on a business especially
when all put together. Customers increasingly demand the one-to-one attention
available online. The process of engaging the customer is fundamental to good
online marketing. However, this generates a fierce level of expectation. A well-
constructed website that has extremely informative content, competitive prices,
and smooth and easy transaction arrangements means nothing if a customer’s
product or service expectations are not fulfilled. The challenge for marketers is to
anticipate and understand what customer expectations will be whatever the
market context. Marketing should lead to customer expectations being satisfied
profitably; therefore, the moral is don’t make outrageous promises.
Customer Expectations + Service Performance = Customer Satisfaction
Internet marketing opens a business up to the entire global market that it hopes
to serve, as well as its customers and competitors. This results in the business
accumulating a vast amount of data. It’s employees and systems can be
When Using the Internet as a Marketing Tool
Unit 12 - P6
Whilst the internet provides multiple opportunities and benefits, it also generates
possible challenges that a business may have to face when the global market is
constantly increasing. A business has to be prepared for these challenges, face
them and overcome them if they are to be successful in the online world.
The process of disintermediation is the tendency to cut out the middle man. The
internet offers a direct channel of supply to customers wherever they are. This
does create obvious efficiencies and savings; however, there is a danger of
destabilising many older traditional channels that might still be valuable sources
of revenue to the business. Established businesses considering adding an online
distribution channel have to be cautious and consider the impact such a move
could have on existing methods of distribution. If a new online channel causes
problems with an established set of business relationships this would be channel
conflict.
The internet continues to raise customer expectations, and this is a challenge to
all online businesses. The 24/7 availability and convenience of the internet has
been reinforced with increased personalisation and price transparency.
Customers are beginning to expect high levels of reliability, responsiveness,
convenience, speed of the time it takes to visit the website, and speed of delivery
once an order is placed. These are all heavy demands on a business especially
when all put together. Customers increasingly demand the one-to-one attention
available online. The process of engaging the customer is fundamental to good
online marketing. However, this generates a fierce level of expectation. A well-
constructed website that has extremely informative content, competitive prices,
and smooth and easy transaction arrangements means nothing if a customer’s
product or service expectations are not fulfilled. The challenge for marketers is to
anticipate and understand what customer expectations will be whatever the
market context. Marketing should lead to customer expectations being satisfied
profitably; therefore, the moral is don’t make outrageous promises.
Customer Expectations + Service Performance = Customer Satisfaction
Internet marketing opens a business up to the entire global market that it hopes
to serve, as well as its customers and competitors. This results in the business
accumulating a vast amount of data. It’s employees and systems can be
