Internet Marketing involves many challenges and according to recent surveys operated by all businesses.com viewed that the 3 biggest problems of people trying to market their businesses online are:
Coverting Leads in to Sales: In order to convert leads into sales (potential customers into sales) online businesses such as ASOS will need to be able to attract new and potential customers and therefore in order to do this ASOS advertise on other sites as well as having their own online sites and also attract customers by having their own ASOS accounts on networking sites such as Facebook and Bebo. Also in order for ASOS to attract their target market they will need to do research on their target market in order to see what their likes and dislikes and so ASOS provide on their online website blogs where customers are able to give feedback and suggestions on ASOS products this allows ASOS to see what customers like and except from the company. ASOS also aim in offereing new products and services to provide customer convenience. ASOS also offer around 1,500 new lines weekly and offer around 35,000 branded weer to attract customers.
Managing an online marketing system: in order for ASOS to mange their online business they will need to provide a certain roles to certain qualified people who are able to mange their online business such as providing a certain employee on managing their website, the college will have to understand the differences they will need to make by comparing their site to other online businesses and then produce a greater difference that will cause effective results such as producing greater online adverts, providing easier access to their websites, providing promotions etc. ASOS will also have a employee whom sends out e-mails to their customers on current promotions which they feels their customers will buy from their site, this allows ASOS customers to feel as though they are being taken care of and will also want the customer to look at promotions on the ASOS site which could lead to customers buying products this is effective internet marketing. ASOS will also need to make sure that customer information is stored safely, and the fact that they update their website regularly.
The print screen above shows that ASOS need to consistently update their website in order to attract customers.
Prioritizing time, energy and money for best results: Internet marketing involves prioritizing therefore at ASOS the employees will need to prioritize the business to other subjects such as going out as the business is the main concept from which profit is made. Therefore employees will need to prioritize their time, as well as their energy as running an online business involves hard work and commitment as it is internet based, and lastly money, in order for the business to be set up, it needs money which can be loaned from the bank but it also means making money by commitment. ASOS also invest money into advertsing as this is their main source of promotion, therefore other than using the internet, websites and their social networking sites ASOS teame up with diet coke to prote themselves, and now they are working with America's Next Top Model being their main sponsors.
Above is a print screen of ASOS being the proud sponsors of America's Next Top Model, this is very clever as ASOS are able to get across to those people who like to wnat to be celebrity like, and as ASOS promote themselves to have celebrity style clothing but at a budget they are trying to meet their destined target market by sponsoring America's Next Top Model.
However, internet marketing can have disadvantages such as
Technological skills
Due to the rapid growth of technology, employees at ASOS are required to have good I.C.T skills, as ASOS are a online operated business. Therefore ASOS are required to find employees that have good I.C.T and technological skills who can update the website etc, this can be time consuming and people with these skills will be more expensive to have. ASOS will also be required to train their employees to make sure they have the skills needed for the business to operate as for example ICT skills are needed by the employees due to the fact that ASOS are a online operated business and therefore the employees day to day tasks will involve them using the internet and the computer software as for example all transactions of the sales are made via the internet meaning the use of technology. Other employees will also be required to create content on the website by updating it regularly, whereas others may be in charge of gaining feedback and keeping in contact with customers by sending them emails, or dealing with problems. Also, as more business become aware of e-businesses and ASOS are made ware of more competitors they need to be able to compete against them otherwise they will lose existing and potential customers, therefore ASOS need to stay aware of the changing technology and be able to move with the technology, this can be expensive but can also lose a business customers.
Security:
Businesses such as ASOS will need to ensure their customers that they are a safe and secure site, in order to do this they will need to ensure they have terms and conditions section as well as a privacy policy. Some businesses also have third party approvals which state that the website is secure to use. There are two secure web standards that can be used by online businesses for card payments, one of which is SET standards. This allows extra protection for e-businesses by using digital certificates. Therefore by online businesses making sure that they provide security their customers will feel more confident on purchasing online, however, the business could also get into trouble as they will be going against the legislations which are implemented by the government for a reason. This can also have an impact on the reputation of the business, and there could be a reduction in the profit margin if people believe the site is not secure. Businesses such as that of ASOS will also need to also abide by the data protection act which protects the information of the customer which is held by the business in their databases. If a employee is known to have passed on personal information to third parties, the customer is liable to provide a formal complaint to the manger or even takes matters legally. Businesses also need to ensure that they abide by the Data Protection Act which states that all customer information should be kept safely and not misued, if businesses such as ASOS misuse their customers information they will not be trusted and potential as well as existing customers may not want to shop from them, therefore ASOS need to show customers that they are trustworthy, otherwise this could cause them a great loss. ASOS also need to make sure customers feel safe shopping with them due to occurrences of fraud happening, therefore ASOS need to use connections such as Paypal which is known s a secure site as payment methods.
Problems of channel conflict and disintermediation
As ASOS sell their products directly to their customers, if customers are unhappy with the service of ASOS and their products this can contribute to bad customer service. Therefore, ASOS need to be aware of the needs and wants of their customers and try to be able to reach the needs of their customers as best as they can. Therefore if a customer has b paid for next day delivery but they do not receive the product till three days later, then this can contribute poor customer service and customer dissatisfaction and make sure stock is available. Channel conflict can also cause issues for ASOS, as it could mean that ASOS are stocking too much stock which they are unable to sell, which means the business has over budgeted and is unable to generate sales and revenue. Therefore, this could lead ASOS in having to reduce prices of their products in order to sell them and will reduce their budgeted profit.
Challenges of delivering to the higher reliability expectations:
As e-businesses are expanding the wants and needs of customers are also expanding and developing, this could lead challenges to businesses such as that of ASOS and competitors. Therefore, businesses such as that of ASOS will need to move with the changes of the taste of the customer, and in order to do this ASOS, need to research on the new styles and provide customer satisfaction by showing that they care about the needs of the customers.
03/01/2010
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