The study is related to the role of internet marketing in the success of selected company, PRIMARK. In current business environment, there is compulsory to change of market requirement. Digital marketing becomes a required part for business culture which improved the business functions. Tools for the internet marketing helps to study and evaluate the customer’s requirements and aware them of company’s products and services. The selected competitor of PRIMARK is MATALAN. Online public relations are introduced in digital marketing for further process of a company.
Internet marketing used by a selected competitor
Internet marketing affects five elements of a micro environment
The selected competitor of PRIMARK is MATALAN. The use of internet marketing into the business environment of PRIMARK and its competitor affects the five elements of micro environment such as competitors, customers, suppliers, public and marketing intermediaries and internet marketing has direct impact on those elements.
Customers: With beginning of the internet marketing, the customers get full range of selections of the products than before. There is a rise in rivalry which reduces price level as the customer’s demands are clearness in business operations (Chaffey and Ellis-Chadwick 2016). Therefore, there is an increase in bargaining power of the customers.
Suppliers: Due to wide choice of products and services in internet marketing, there is down of the bargaining power of the suppliers as choice of products, buying and other purchasing activities are done through use of internet marketing (Joseph, Cook and Cook 2015).
Public: The internet marketing enabled of quicker introduction of products as well as services among the public. MATALAN has observed introduction of the products in the market to avoid any loss of the market share.
Competitors: The internet marketing is started trend of faster commoditization of the products. The company is required to find ways throughout which it can able to distinguish itself from the competitors (Leung, Xue and Bai 2015). In order to benchmark, MATALAN analyzes the website of their competitors for identifying current trends and future trends.
Marketing intermediaries: For the internet marketing, there are online intermediate websites. The websites effort as platform among the customers in addition to suppliers (Bianchi and Mathews 2016). The online social network is acted as intermediary who facilitates of collaboration among the individuals.
Political factor: The government is required to put control and monitor development as well as usage of internet marketing (Natarajan et al. 2015). The internet is promoted of global collaboration and governmental agencies required to collaborate for make sure about safety of the e-commerce website of MATALAN. The country under which the company operated is inspecting current tax structure to guarantee that the e-commerce activities are not reduced tax collection of the local government as well as agencies.
Economic factor: There is financial prosperity of the country which will control degree of the e-commerce activities. MATALAN is targeting the developed economy of the internet based transaction as a comparison with the developed country. Globalization encouraged development of single international market for the e-commerce (Andreopoulou et al. 2014). There is also promotion of culture of standardization of the prices and intermediaries reduction.
Social factor: Throughout advent of the internet marketing, usage pattern is not equivalent. There is level of internet access as well as usage which is influencing the behaviour level of the customers (Madlenak et al. 2015). Social perception of internet is influencing the usage of internet. The social impact of internet on selected competitor of PRIMARK, MATALAN is not determined. Population with income as well as specific degree of education is used of internet.
Technological factor: The digital technology is disruptive in nature. There is initiation of internet which seen a increase of the online retailers, hamper of the other stores. MATALAN is adopted for in-home fixed internet access, the technology will become mobile connectivity. It is done throughout phone, digital TV, digital radio and others. With obtainability of the digital devices, technology conjunction is on horizon (Bagautdinova, Belikov and Murtazin 2016). Due to concern of security, it prevents from adoption of the facilities related to e-commerce.
Ethical factor: Around use of the internet, there is specific behaviour which is tolerated by society. There are some accepted norms which are taken as ethical standards. MATALAN is followed by moral laws to use of their e-commerce website. Among usage of the internet marketing, the concern is privacy. The internet users have online identified from which they are performed by financial as well as personal transactions (Wang and Liu 2015). The customers are concerned to protect protection of online identity.
Internet marketing is a key to MATALAN’s international expansion. The presence of e-commerce allows the retailed to provide services and tremendous opportunities towards growth into customer base. Following are the benefits of the internet marketing for the business of MATALAN such as:
Internet marketing provides business which benefits the customers that help to provide better customer services. It attracts of more customers towards the online store as it is convenient as well as more accessible (Armstrong et al. 2015). Following are the benefits of internet marketing for the customers such as:
The internet marketing tools such as SEO, SEM, email marketing and social media marketing influenced the objectives of marketing mix such as product, branding, place, price, promotion, people, processes and physical evidence. Social engine optimization (SEO) encompasses traditional PR to social media marketing. Information which is provided on an e-commerce website is optimized on search engine. It helps the customers to collect information related to company (Bagautdinova, Belikov and Murtazin 2016). This search engine is a source to promote company through online channel. Search engine marketing (SEM) is comprised of pay-per-click advertising which started with design and content of e-commerce website. SEM should focus on understanding the customer’s needs and set up relations with them. Email marketing helps to promote the products and services of the company among the customers. Social media marketing influences the marketing mix by improvement of price transparency, impact of various pricing. As this marketing medium improves the price transparency, then it is required to understand price elasticity.
|
Types of internet marketing tools |
Cost and Effectiveness |
|
SEO |
SEO is cost-effective marketing strategy as it targets the users those are looking for the products as well as services online. It helps the business to save money. It leads to generate of 61% cost by the inbound strategy. |
|
SEM |
It is highly cost-effective as it acquires of new customers from the keyword advertisements. It is faster to time to market and targeted advertising medium (Armstrong et al. 2015). |
|
Email marketing |
It is cost effective as it reaches the customers through a work based email account. It has a higher rate of delivery. Email marketing has excellent conversion rate. At click of a button, the receipt can able to forward the email to the colleague and then it is shared on the social media (Wang and Liu 2015). Therefore, important marketing communication is work emails. |
|
Social marketing |
The social media is a vast cost-effective asset for the business organization. Most of the customers are relied on the social media marketing for getting aware of the products and services which are offered by the business (Bagautdinova, Belikov and Murtazin 2016). There is print advertising, the cost for 2 column x 2-inch and is around £ 175 for each month. Creating a profile in the social media does not cost anything. Maintenance of the site cost is nothing. Therefore this internet marketing tool is most popular among the customers as compared to others. |
In order to do successful online business, it is compulsory to have communicating order processing system in business. Following are the elements of interactive order processing of MATALAN’s e-commerce website such as:
Selection of product: The customer should select the product over website and compare them based on features, specifications.
Check for stock availability: After selection of product, the customers checked for if the product is in stock or not.
Placing order: The finalized product is then get ordered after fulfilling of requirements like shipping address, contact number and others.
Authorisation of payment: After filling the necessary information, the customers moved towards payment option where they have to select payment options such as debit card, credit card, cash on delivery, net banking, Paypal. The customer then chooses payment mode to pay for the amount against the purchased product.
Method for inputting of data: There is checking of authenticity of the accounts and funds when the customer inputs the payment data (Wang and Liu 2015).
Order processing: After the order is placed, there is processing of order after confirming the shipping documents and final invoice from the customer.
Online confirmation: Based on availability of the funds as well as authenticity of the detailed order, the placed order is confirmed or cancelled (Bagautdinova, Belikov and Murtazin 2016).
Delivery information: There is mailing of the order details to the customers and the date of delivery to the email ID of the customers which is provided at the time of order placing.
Tracking of order: It provides the customers with s status of their shipped order by tracking the order once it is released from warehouse (Armstrong et al. 2015).
Delivery of order: The order is then delivered to the right person.
Data integrity: The customer signs in the order document to ensure that the order is received.
Security system: For secure the order, the delivery boy sends a confirmation email to the customer that the order is received by the customer (Madlenak et al. 2015). All the information of the customer is kept secured into the database of company so that no third party person can able to access it.
Market research to support customer relationship management for PRIMARK
PRIMARK is UK’s clothing as well as footwear company where its market was worth an estimated of around £46.05bn in the year 2009. From the market research, it is also analyzed that there is accounting for 5.3% of their total customer’s spending. There are nearly half such as 12.7 million of the women in the UK spent on clothes in the same year (Primark 2016). PRIMARK is recorded of 17 percent year-on-year sales increase. New products of PRIMARK belongs to the customer’s market as it reaches to customers and satisfies with their requirements (Bagautdinova, Belikov and Murtazin 2016). The fashion industry follows the market trend and provides of goods based on the latest trend. The secondary data are collected to evaluate effect of implementation of internet marketing by PRIMARK such as:
|
Points |
Before implementation of internet marketing (in 2009) |
After implementation of internet marketing (in 2017) |
|
Sales |
£2314 million |
£7053 million |
|
Market share |
6.9% |
10% |
|
Channel for distribution |
127 stores |
325 stores |
|
Consumer base |
1.37 million |
3.20 million |
|
Profit share |
£796 million |
£1336 million |
From the above statistical figures, it is examined that implementation of internet marketing makes an effective changes in PRIMARK market share and its profit. The changes are being favourable as it is increasing ratio of sales and market share. Due to execution of internet marketing, PRIMARK is able to goal a more significant market share and huge population for making of sales. Larger share of the customers are conscious of the products provided by PRIMARK and reduce the interest by means of purchasing of products (Primark 2016). With the help of internet marketing, there is satisfactory response from market that is resulted into an growth in total number of outlets at various locations to meet with customer’s demands. The company targets age groups of footwear and clothing to attract wide range of customers. When there is an increase of number of stores, customer base then it is resulted to increase in sales which increase profits (Primark 2016). It helps to use of e-commerce website so that desired products are ordered by customers throughout online purchasing.
The questionnaire for research PRIMARK customers’ needs in order to review PRIMARK products and services are:
PRIMARK is used of electronic customer relationship marketing tool such as Salesforce. Salesforce.com CRM software is an on-demand CRM suite that is offering of smaller, medium as well as enterprise business organizations focused on sales as well as support (Kumar and Reinartz 2018). Salesforce solutions manage the sales, marketing in addition to customers of PRIMARK. Following are the features of Salesforce CRM software into the business functions of PRIMARK such as:
|
Strengths |
Weaknesses |
|
· Providing lower price points · Active on the social media · Saving of money due to promotional activities through word of mouth · Adhere towards current customer lifestyle trends |
· Lack of consistency across the online stores · The customers are not able to buy the products online · Not digitally competitive |
|
Opportunities |
Threats |
|
· Development and improvement of e-commerce website · Signing to the mobile messaging application · Providing the customers to order the products online and deliver at home |
· Competitors are offering same products at lower price points · Competing brands are spending on campaigns, TV ads and others · Lower presence into UK street market |
The possible competitors of PRIMARK are MATALAN, H&M, NEW LOOK and others.
Objectives of PRIMAR is to provide of lower price of products and higher customer value. The company is keeping cost down by purchasing from larger quantities of items as well as economies of scale which result in buying into a bulk.
The market segmentation of PRIMARK is based on two groups such as teenagers and young adults.
PRIMARK should use SEM, SEO, email marketing and social marketing for promotion of their products and services among the targeted customers.
|
Activities |
Brief |
|
Promotion of posts |
The management selected the mode to promote the products and services of PRIMARK through social media such as Facebook, You-tube and online advertising. |
|
Analysis of performance |
By use of evaluation tools, Google Analytics, PRIMARK should analyse the promotional activities. It also evaluates usefulness of website. |
Conclusion
In this particular study, the impact of digitalization on the commercial environment of PRIMARK and its competitor is analyzed. There are analysing elements of internet marketing and its tools. The researcher has provided details on the part of search engine marketing, the position of online public relations. From the entire study, it is concluded that internet marketing is helpful for the development of online business. It plays a critically important role in effective marketing and running of the online business.
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