Unit 12 – M2 Kojar Ahmed
In this report, I will analyse the marketing opportunities and challenges faced by a selected business
when using internet marketing. The business I will use for this report is Tesco. Firstly, I will talk about
disintermediation and channel conflict, disintermediation is when a retailer or manufacturer opts to
use a direct supply channel for their clients or customers in an attempt to cut out the middle man.
This is done in an effort to minimise costs and increase efficiency. A channel conflict can be caused
when a store has more than one method of distribution, such as home delivery and online shopping,
as this can affect stock levels etc. this is where the conflict occurs. This may affect Tesco both
positively and negatively. For example, cutting out the middle man may shorten the time it takes for
stock to arrive, as well as making it cheaper. However, Tesco does offer a home delivery service,
meaning the possibility of channel conflict is high as it is more important that they keep items in
stock.
Whenever a retailer sets up an online shop on their website, they are relied on by their consumers to
ensure payment security is of the utmost priority. Every now and then stores may be attacked with
viruses or trojans which put the confidential information of the customers at risk, hence why it is
important to always update your internet security and check for any risks which may be present. If
any confidential information is accessed this can lead to identity theft or even a lawsuit that requires
a large pay-out for any damages caused. Although online shopping is largely beneficial for Tesco,
payment security is still a real issue, therefore they are inclined like all retailers to secure any
confidential information about their consumers such as credit card details or addresses.
The level of convenience provided by stores and online shopping has never been higher. Retailers
such as Amazon and Tesco have made it easier than ever to buy products from the comfort of your
own home. Partly due to this, customers now expect retailers to be at the top of their game when it
comes to processing orders and delivering products online. This could negatively affect the retailer
because they have to work harder in order to prove that they are still worth something and can
compete in the market. Businesses that fail to meet these expectations may fail entirely or could
suffer from negative brand recognition. As well as the delivery of goods, retailers are now also
obliged to provide their customers with next level customer service, failure to do this can also lead to
negative brand perception. This is a challenge Tesco will have to overcome as all of their competitors
have implemented some kind of convenient delivery service, and they are therefore expected to
keep up.
When conducting market research, Tesco will be dependent on their consumers to provide accurate
feedback which can help them with the development of products and services. This can be done
through internet surveys or questionnaires. However, because these services are on the internet, it
means a large portion of the population has access to them, making it possible to receive too much
customer feedback which may be inaccurate or outdated. In order to remedy this, Tesco can opt to
only give surveys to those who have ordered goods on their website, rather than all those who visit
it. Too much market feedback can make it difficult to identify what facts or feedback are actually true
and require attention. Acting on false feedback and can detrimental effects on how a business
performs and how it is perceived by the public, false feedback can persuade retailers to discontinue a
product or service which may have been popular, therefore leading to lower sales.
An ISP or Internet Service Provider is a company that provides businesses and individuals with access
to the internet, this is done via a monthly plan based on the speed and performance of the internet
you are paying for. Most ISPs provide a business package that allow all the computers in a workplace
In this report, I will analyse the marketing opportunities and challenges faced by a selected business
when using internet marketing. The business I will use for this report is Tesco. Firstly, I will talk about
disintermediation and channel conflict, disintermediation is when a retailer or manufacturer opts to
use a direct supply channel for their clients or customers in an attempt to cut out the middle man.
This is done in an effort to minimise costs and increase efficiency. A channel conflict can be caused
when a store has more than one method of distribution, such as home delivery and online shopping,
as this can affect stock levels etc. this is where the conflict occurs. This may affect Tesco both
positively and negatively. For example, cutting out the middle man may shorten the time it takes for
stock to arrive, as well as making it cheaper. However, Tesco does offer a home delivery service,
meaning the possibility of channel conflict is high as it is more important that they keep items in
stock.
Whenever a retailer sets up an online shop on their website, they are relied on by their consumers to
ensure payment security is of the utmost priority. Every now and then stores may be attacked with
viruses or trojans which put the confidential information of the customers at risk, hence why it is
important to always update your internet security and check for any risks which may be present. If
any confidential information is accessed this can lead to identity theft or even a lawsuit that requires
a large pay-out for any damages caused. Although online shopping is largely beneficial for Tesco,
payment security is still a real issue, therefore they are inclined like all retailers to secure any
confidential information about their consumers such as credit card details or addresses.
The level of convenience provided by stores and online shopping has never been higher. Retailers
such as Amazon and Tesco have made it easier than ever to buy products from the comfort of your
own home. Partly due to this, customers now expect retailers to be at the top of their game when it
comes to processing orders and delivering products online. This could negatively affect the retailer
because they have to work harder in order to prove that they are still worth something and can
compete in the market. Businesses that fail to meet these expectations may fail entirely or could
suffer from negative brand recognition. As well as the delivery of goods, retailers are now also
obliged to provide their customers with next level customer service, failure to do this can also lead to
negative brand perception. This is a challenge Tesco will have to overcome as all of their competitors
have implemented some kind of convenient delivery service, and they are therefore expected to
keep up.
When conducting market research, Tesco will be dependent on their consumers to provide accurate
feedback which can help them with the development of products and services. This can be done
through internet surveys or questionnaires. However, because these services are on the internet, it
means a large portion of the population has access to them, making it possible to receive too much
customer feedback which may be inaccurate or outdated. In order to remedy this, Tesco can opt to
only give surveys to those who have ordered goods on their website, rather than all those who visit
it. Too much market feedback can make it difficult to identify what facts or feedback are actually true
and require attention. Acting on false feedback and can detrimental effects on how a business
performs and how it is perceived by the public, false feedback can persuade retailers to discontinue a
product or service which may have been popular, therefore leading to lower sales.
An ISP or Internet Service Provider is a company that provides businesses and individuals with access
to the internet, this is done via a monthly plan based on the speed and performance of the internet
you are paying for. Most ISPs provide a business package that allow all the computers in a workplace
