Table of Contents
The digital age and technological advancements have brought new ways of life, earning, working but more interesting and important is the new way to make money. With the transformation of the world to a global village the ways of doing things have changed with the changing times and business has mostly benefited from the expanded markets. This has ensued extensive competition which in return has brought about new methods of trading so as to make more sales and remain afloat (Chaffey, 2006). E-marketing is a major invention in the world of business since it has brought about efficiency, greater targets, and has made businesses go beyond borders.
The increase in online trading in the world today has necessitated new ways of marketing to attract and retain customers as a way of surviving and positioning in business. With a click of a button then one is assured to trade at home and get a variety of goods (Albee, 2009).
E-marketing utilizes electronic media to carry out marketing activities and achieve the objectives of the company. E-marketing include; internet marketing, mobile marketing, interactive marketing. Giant retails chains have adopted the new marketing style so as to remain competitive and sustainable. Retails shops such as Tesco, Walmart, Sainsbury and Asda have adopted the marketing style which has made them increase their sales tremendously. The social networks have aggravated the sales due to numerous people getting involved in such sites.
Asda is a large commercial retail supermarket operating in the UK where is has approximately 17% of the market share in 2009. This means that it has competed effectively with the market leaders Tesco. Asda has employed an efficient marketing strategy to survive in the changing competitive market of UK. Established in 1949 its operations have remained competitive especially in the most competitive sector of retail chains and seen the light of day in the twenty first century which is characterized by the digital age (www.asda.com). Going hi-tech has been the mode of many business and many people trade online therefore creating a rich and vibrant market for the companies that offer better e-marketing products and services.
According to Stokes (2008) technology has also expanded the horizons for the businesses since they are able to have efficiency and effectiveness in trading since the trading response is instant. In tapping such potential retail giants have increased their market share and have the loyalty of the customers. The store images and positioning for the retail market operators has been enhance since with the more clicks and sales they get they improve their image and attract more goodwill from potential customers.
A business is able to distribute information about itself and the products it trades in; it also uses the internet as a means to relate to the customers and also maintain the relationship as stated by Krishnamurthy (2006). The customers can be tracked and responded to appropriately to ensure they are happy with the service and recommend other clients. The business is also able to ensure that trading can be done online where they establish websites that will aid in the marketing. The trading must also ensure that the funds to be involved in the trading are safeguarded and that it is done effectively and efficiently (Smith et al. 2002). The websites are also designed to attract and retain potential customers who can sign up and become members.
In order to have a successful e-marketing strategy the company needs to have effective auditing, objectives, strategies, tactics, and controls measures. In the audit the marketing plan should be able to expose the strengths and weaknesses, opportunities and threats and be able to capitalize on them to make it effective (Chaffey, & Smith, 2008). The objectives should be smart to ensure maximum business and growth and sustainability of the business. The tactics should be strategic and involve an e-marketing mix for the success of the business. The control should be able to take charge in measuring the performance of the plan and be able to change any negative effectives.
Asda as a case study will help evaluate the extent of e-marketing strategies that have been applied by the large commercial retailers. Benefits from the strategy are worth identifying especially those got from a web audit including pay per click adverts, email marketing, text link adverts, website designs, and online magazines. Asda as a large commercial retailer has continued to withstand competition in the UK market especially from Tesco and Sainsbury. Its e-marketing strategy has been identified as a way to explain the effectiveness and benefits of e-marketing. It helps to analyze the advantages and disadvantages of the systems and other ways to increase sales and consequently profits (Smith et al. 2002). Asda deals in a range of products and services including; household goods, electrical products, entertainment, books, furniture, gifts, groceries, music and games among other. This means that it is an all in one shopping spot for all customers interested with a range of products and services on offer. There is also delivery of orders to their clients that makes the marketing strategy appealing and attractive to many customers (Chaffey, & Smith, 2008).
The industrial and competitor analysis in the retail market is mainly dealt with including the e-marketing mix for instance, the product, price, promotion, and distribution. Geographic’s and company structure, and Geographic’s and psychographics in the market will be identified and the positioning and store image among the existing and potential customers (Krishnamurthy, 2006). The study includes a macroeconomics examination e.g. political, eonomic, social, technological and environmental condition of the strategy of e-marketing.
A website audit is very essential where website usage, and navigation, layout of the home page and the website browsers, easiness of obtaining information search engine optimization identified will be essential in the investigation of the new ways to make money in the digital world.
Project Context and Background of the Study
Marketing has been a very effective strategy in the world today since it has driven the most important part that provides revenue to the business. With effective marketing strategies the business is able to expand its revenue through numerous sales. Marketing is a process where the business is able to research the market, sell the products and services through various plans to augment sales. The need for marketing in any business cannot be compared with other departments since it is vital and revolutionary (Chaffey, & Smith, 2008). Good marketing strategies when be implemented effectively ensure that the business is able to earn a market share and position itself in the market. E-marketing on the other hand is an improved method of the manual marketing strategy which forms the basis of the study. Marketing has been used to generate sales tactics, business development, and business communication. Retail chain shops have been caught up with stiff competition in the markets; the need for a renew strategy that makes them profitable. They have resulted to e-marketing as a remote technique in reaching a massive number of clientele as a way to make sales and also attract more customers. They have aimed to create a store image for themselves and an effective way to reach their customers. In view of the fact that marketing strategies has created a new way of shopping in the digital age and that they have created a way to rejuvenate their sales it creates a background of the study. The study builds on the issue of e-marketing, how it operates, when it is best, and the logistics involved in its implementation, and the fruits that will be reaped from the strategies.
Marketing will involve make out the customer, gratify the customer and most of all retain the customers persuaded. The concept of e-marketing has enable retain chains to achieve their objectives of large volumes of sales, and built on the strategies for success and great profitability. The aim of e-marketing is to target a mass market where they are concentrated and using ways that they easily understand and are convenient to them. The clients nowadays have been concentrated in the internet where social sites and company websites are visited frequently (Smith et al. 2002). Tapping such an extensive market will ensure volumes of sales and such concepts have been applied by online selling companies where products and services have been traded online. In tackling the topic ‘E-Marketing: The New Way to Make Money?’ The study unveils the concept of e-marketing and how businesses can be able to apply it and be successful. It conducts an Investigation Using a Large Commercial Retailer, in this case Asda and the way it has applied the strategy and benefited from a large client base.
Audience for the Evaluation
The study critically evaluates the Asda retail giant on its implementation of the e-marketing strategy in their quest to compete with rival chains such as Tesco and Sainsbury. The previous, current as well as future marketing strategies are evaluated so as to help understand the concept and help in recommending the best way forward for other businesses. E-marketing is also evaluated where the strengths, weaknesses, opportunities and threats are analyzed. The strategy’s advantages and disadvantages are evaluated so as to make sure the strategy applied is clearly known to the implementers and potential users. The processes involved in e-marketing from the identification of the customer to the satisfaction of the customer till the point of sale where customers make the payments are analyzed to ensure that the system is clearly understood. This will help in making any required adjustments to the strategy that will improve the strategy.
Statement of the Problem
For any business satisfying the clients is a major objective so that they are able to attract more and retain the already existing ones. With an efficient and effective marketing strategy this is possible even to the extent of positioning and establishing a store image for the business. This will make the business grow and become sustainable. It will ensure that it has a competitive advantage over the other businesses and be envied for its success and establishment (Stokes, 2009).
Businesses have evolved in terms of their marketing strategies in terms of their orientation and profit drivers over time. At some times the strategy may be on the production where they aim on the production methods to provide the profits to the business. Others focus on the products where they focus on making quality get the profits for the business. Businesses may also focus on selling the products where the methods of sales will determine the sales made by the business. In addition, marketing has been used as an orientation where the businesses focus on the needs, wants, and satisfaction of the customer. Marketing has been applied by many businesses today in a bid to make themselves known and creating a market niche.
Business have realized that in order to be at a competitive advantage they must focus on making the customer satisfied not only through the quality, production process, or selling but also through treating the customer as the king. This makes the customer feel appreciated and important hence attracting him and many more to the system. So as to achievve this, marketing strategies for instance e-marketing are applied by the business. The viability of the strategy of e-marketing is the subject of study in this research; this means that the businesses in question are evaluated especially with the invention of the internet and the numerous developments of online trading. It focuses on the large commercial retailers since they face a lot of rivalry from other companies in their quest to build themselves and establish a niche in the markets and a store image (Stokes, 2008).
The study investigates the relationship marketing, business marketing, social, and branding orientation of the e-marketing strategies and how they are able to operate and become large commercial retailers. The whole operations must be identified and critically evaluated so that businesses intending to pursue this strategy may have the background information on how larger commercial retailers made it in the market.
Asda has been identified since it has become very successful through the e-marketing strategy which once proved to be negative to the management but with more emphasis it grew to make large volume of sales. ASDA has been able to establish an online trading system where customers can shop right at home at their convenience and at the best rates conveniently. The products involved include electrical products, furniture, sports and leisure equipment, jewels and watches, gifts and party stuff among other.
The problem of the study is to identify the best strategies of e-marketing and make them apply to other businesses that would like to implement such strategies. It identifies the Asda’s strategies as a large commercial retailer and some of those applied by their rivals such as Tesco, Sainsbury, Waitrose and Ocado. Through the identified strategies the application in the actual process and the methods of implementation are evaluated; this will involve making purchases through the retailers and talking to customer support to establish the products and modes of trading. Asda’s history will be unveiled and analyzed so as to understand the current position and their numerous campaigns and advertisement efforts to woe customers to their sites. The industrial and competitor analysis will also be done as well as the e-marketing mix i.e. the product, price, promotion, and distribution.
The current target markets data which includes Geographic’s and company structure, and Geographic’s and psychographics in dealing with the markets will be identified. It also identifies the positioning and store image among the existing and potential customers, together with the macroeconomics for instance the political, economic, social, technological and environmental condition of the strategy of e-marketing. In order to have a comprehensive research a website audit is necessary where the website usage, and navigation, layout of the home page and the website browsers will be identified. In addition, the easiness of obtaining information, the costing of the website and search engine optimization and the presence of information that is outdated will be inspected in the sites.
The marketing strategy will involve identifying the objectives, vision, mission and method of segmentation, i.e. positioning and differentiation. In the evaluation of the financial benefits the budget analysis will involve the use of pay per click adverts, email marketing, text link adverts, website designs, and online magazines; this will indicate the contingency plan adopted by the business.
‘The New Way to Make Money’ drives the theme of the research where the development of e-marketing has been identified and is being evaluated if in deed it is an appropriate way to conduct business. The major aim of businesses is to make profits which are generated from sales; the more the sales the higher the revenues in a business. The study tries to build on the advantages of e-marketing such as cost reduction through use of electronic media, quick and fast responses, and high interaction among others as a way to evaluate the strategy of e-marketing (Smith et al. 2002). It takes in to consideration large commercial retailers since they offer numerous products and are easy to identify.
The benefits versa vice the risks involved are evaluated to approve the e-marketing strategy. The use of web audit, e.g. website usage, and navigation, home page layout and the website browsers identification, updating of information, the easiness of obtaining information, the costing of the website and search engine optimization; customer support and budget analysis e.g. pay per click adverts, email marketing, text link adverts, website designs, and online magazines are done to establish the costs and benefits and identify the actual situations.
Asda is used as the case study in the evaluation where it is evaluated against its rivals such as Tesco, Sainsbury and Morrisons. Asda marketing strategy in e-marketing and its adoption from Wal-Mart is identified among other ways it uses to market itself including the social networks in the internet. The Asda website is also visited and analyzed appropriately where even buying is done and the customer care contacted.
The going through the process of buying will be important in having the first hand information on the products and services provided by Asda. Social network identifications of the websites such as the likes on the Asda’s facebook page and the follows on the twitter page will also assist in identifying the spread of the commercial retail giant strategy. If Asda has been successful in establishing 17% market share in a very competitive UK market with the help of e-marketing then the rationale is to evaluate its viability as the new way of making money.