ABSTRACT

This document consists the brief idea about the

Internet marketing strategy and Integrated
marketing followed by the case study of Tesco.com

Course
Internet Marketing
ASSIGNMENT OF INTERNET
MARKETING
By- Vishal Sharma
1. Discus the internet marketing Strategy
The internet has radically transformed how we build and promote businesses: We have access to far
more resources and far more potential than ever before. So, why do so many entrepreneurs end up
neglecting these fruitful opportunities by forgoing marketing, or delaying it as an unnecessary
expenditure?

The way I see it, there are a handful of online marketing strategies you need-- as in, your startup wont
be able to thrive without them.

Criteria for need

What do I mean, you need these strategies? After all, isnt marketing optional? Isnt it possible to build
a business even without an online presence? Technically, yes, but youll be missing out on enormous
potential by doing so.

All the strategies I qualify as necessary exhibit the following traits:

Expected. People expect you to have these things in place, and if you dont have them, they may
think less of your company.

Accessible. None of these strategies is particularly hard or complicated; there may be a bit of a
learning curve, but on some level, these are accessible strategies.

Affordable. You wont have to spend much money on any of these strategies, making them easy
to pick up even for tight-budget startups.

Valuable. These strategies all offer high potential returns, meaning that the cost for you, if you
neglect them, will be significant potential.

Time-sensitive. The more time you invest in these strategies, the more powerful they become.
The sooner you get involved, the bigger the payoff you can potentially get.

Its the combination of these factors that makes your work in these areas necessary. These are the
strategies I deem necessary:

1. Personal branding.

Successful businesses can generate a ton of momentum from successful entrepreneurs who lead them
Branding yourself, before your company, gives you the opportunity to leverage a more trustworthy,
personal image to promote your brand.

It also gives you more power to meet and network with others, form more partnerships and lend a face
to your otherwise faceless organization. And it's free to do, from a monetary perspective, though you
will need to invest a significant amount of time.

2. Content marketing.

Content marketing takes a variety of forms, and depending on how you form your strategy, could
accomplish a number of different goals. For example, you could use white papers, ebooks and other
long-form content to attract downloads, signups and conversions, or you could use an on-site blog to
attract more inbound traffic to your site.

You could even use content as a form of help and troubleshooting, or some combination of these
applications. Content marketing is incredibly versatile and useful, and, if it's valuable, your customers
will expect you to have at least some of it in place for them.

3. Search engine optimization (SEO).

SEO is the process of making your site more visible in search engines, so you get more traffic from
people searching for the products or services you offer. Much of your organic search position ranking
comes from the technical structure of your site and your ongoing content development strategy.

So, SEO is not much more of an investment if youre already creating new content regularly -- and its
well worth that extra investment if for no other reason than to make sure your site is properly indexed.

4. Conversion optimization.

Most of these strategies aim to get more people on your site, but what do those people do once theyre
there? Conversion optimization helps you ensure you get more value out of each and every visitor by
maximizing your rate of conversion.

Sometimes, this means including more conversion opportunities, and other times, improving the ones
you already have.

5. Social media marketing.

Social media marketing isnt the get-rich-quick scheme you may have been promised, but there is
significant potential in building and nurturing a social media audience. Again, content will come into play
heavily here, as it will likely be the factor that attracts your audience to begin with. Here, you stand to
gain greater brand visibility, a greater reputation and far more inbound traffic with your syndicated
links.

6. Email marketing.

Email marketing has astounding potential for ROI because it costs almost nothing to execute. Start
collecting subscribers from your existing customer base, your social media followers and other new
opportunities; from there, even a simple content newsletter can help you encourage repeat traffic to
your site, facilitate more engagement with your brand and keep your brand top-of-mind with your
audience.

2. Integrated Internet Marketing Channel/Communication.

Integrated Marketing Communications is a simple concept. It ensures that all forms of communications
and messages are carefully linked together.

At its most basic level, Integrated Marketing Communications, or IMC, as well call it, means integrating
all the promotional tools, so that they work together in harmony.
Promotion is one of the Ps in the marketing mix. Promotions has its own mix of communications tools.

All of these communications tools work better if they work together in harmony rather than in isolation.
Their sum is greater than their parts providing they speak consistently with one voice all the time,
every time.

This is enhanced when integration goes beyond just the basic communications tools. There are other
levels of integration such as Horizontal, Vertical, Internal, External and Data integration. Here is how
they help to strengthen Integrated Communications.

Horizontal Integration occurs across the marketing mix and across business functions for
example, production, finance, distribution and communications should work together and be
conscious that their decisions and actions send messages to customers.

While different departments such as sales, direct mail and advertising can help each other
through Data Integration. This requires a marketing information system which collects and
shares relevant data across different departments.

Vertical Integration means marketing and communications objectives must support the higher
level corporate objectives and corporate missions.

Meanwhile Internal Integration requires internal marketing keeping all staff informed and
motivated about any new developments from new advertisements, to new corporate identities,
new service standards, new strategic partners and so on.

External Integration, on the other hand, requires external partners such as advertising and PR
agencies to work closely together to deliver a single seamless solution a cohesive message
an integrated message.

Benefits of Integrated Marketing Communications

Although Integrated Marketing Communications requires a lot of effort it delivers many

benefits. It can create competitive advantage, boost sales and profits, while saving money, time
and stress.
IMC wraps communications around customers and helps them move through the various stages
of the buying process. The organisation simultaneously consolidates its image, develops a
dialogue and nurtures its relationship with customers.
This Relationship Marketing cements a bond of loyalty with customers which can protect them
from the inevitable onslaught of competition. The ability to keep a customer for life is a
powerful competitive advantage.
IMC also increases profits through increased effectiveness. At its most basic level, a unified
message has more impact than a disjointed myriad of messages. In a busy world, a consistent,
consolidated and crystal clear message has a better chance of cutting through the noise of over
five hundred commercial messages which bombard customers each and every day.
At another level, initial research suggests that images shared in advertising and direct mail boost
both advertising awareness and mail shot responses. So IMC can boost sales by stretching
 messages across several communications tools to create more avenues for customers to
become aware, aroused, and ultimately, to make a purchase
Carefully linked messages also help buyers by giving timely reminders, updated information and
special offers which, when presented in a planned sequence, help them move comfortably
through the stages of their buying process and this reduces their misery of choice in a
complex and busy world.
IMC also makes messages more consistent and therefore more credible. This reduces risk in the
mind of the buyer which, in turn, shortens the search process and helps to dictate the outcome
of brand comparisons.
Un-integrated communications send disjointed messages which dilute the impact of the
message. This may also confuse, frustrate and arouse anxiety in customers. On the other hand,
integrated communications present a reassuring sense of order.
Consistent images and relevant, useful, messages help nurture long term relationships with
customers. Here, customer databases can identify precisely which customers need what
information when and throughout their whole buying life.
Finally, IMC saves money as it eliminates duplication in areas such as graphics and photography
since they can be shared and used in say, advertising, exhibitions and sales literature. Agency
fees are reduced by using a single agency for all communications and even if there are several
agencies, time is saved when meetings bring all the agencies together for briefings, creative
sessions, tactical or strategic planning. This reduces workload and subsequent stress levels one
of the many benefits of IMC.

Barriers to Integrated Marketing Communications

Despite its many benefits, Integrated Marketing Communications, or IMC, has many barriers.
In addition to the usual resistance to change and the special problems of communicating with a
wide variety of target audiences, there are many other obstacles which restrict IMC. These
include: Functional Silos; Stifled Creativity; Time Scale Conflicts and a lack of Management
know-how.
Take functional silos. Rigid organisational structures are infested with managers who protect
both their budgets and their power base.
Sadly, some organisational structures isolate communications, data, and even managers from
each other. For example the PR department often doesnt report to marketing. The sales force
rarely meet the advertising or sales promotion people and so on. Imagine what can happen
when sales reps are not told about a new promotional offer!
And all of this can be aggravated by turf wars or internal power battles where specific managers
resist having some of their decisions (and budgets) determined or even influenced by someone
from another department.
Here are two difficult questions What should a truly integrated marketing department look
like? And how will it affect creativity?
It shouldnt matter whose creative idea it is, but often, it does. An advertising agency may not
be so enthusiastic about developing a creative idea generated by, say, a PR or a direct marketing
consultant.
IMC can restrict creativity. No more wild and wacky sales promotions unless they fit into the
overall marketing communications strategy. The joy of rampant creativity may be stifled, but the
creative challenge may be greater and ultimately more satisfying when operating within a
tighter, integrated, creative brief.
 Add different time scales into a creative brief and youll see Time Horizons provide one more
barrier to IMC. For example, image advertising, designed to nurture the brand over the longer
term, may conflict with shorter term advertising or sales promotions designed to boost
quarterly sales. However the two objectives can be accommodated within an overall IMC if
carefully planned.
But this kind of planning is not common. A survey in 1995, revealed that most managers lack
expertise in IMC. But its not just managers, but also agencies. There is a proliferation of single
discipline agencies. There appear to be very few people who have real experience of all the
marketing communications disciplines. This lack of know how is then compounded by a lack of
commitment.
For now, understanding the barriers is the first step in successfully implementing IMC.

Golden Rules
Despite the many benefits of Integrated Marketing Communications (or IMC); there are also
many barriers. Heres how you can ensure you become integrated and stay integrated 10
Golden Rules of Integration.
(1) Get Senior Management Support for the initiative by ensuring they understand the
benefitsof IMC.
(2) Integrate At Different Levels of management. Put integration on the agenda for various
types of management meetings whether annual reviews or creative sessions. Horizontally
ensure that all managers, not just marketing managers understand the importance of a
consistent message whether on delivery trucks or product quality. Also ensure that
Advertising, PR, Sales Promotions staff are integrating their messages. To do this you must have
carefully planned internal communications, that is, good internal marketing.
(3) Ensure the Design Manual or even a Brand Book is used to maintain common visual
standards for the use of logos, type faces, colours and so on.
(4) Focus on a clear marketing communications strategy. Have crystal clear communications
objectives; clear positioning statements. Link core values into every communication. Ensure all
communications add value to (instead of dilute) the brand or organisation. Exploit areas of
sustainable competitive advantage.
(5) Start with a Zero Budget. Start from scratch. Build a new communications plan. Specify what
you need to do in order to achieve your objectives. In reality, the budget you get is often less
than you ideally need, so you may have to prioritise communications activities accordingly.
(6) Think Customers First. Wrap communications around the customers buying process. Identify
the stages they go through before, during and after a purchase. Select communication tools
which are right for each stage. Develop a sequence of communications activities which help the
customer to move easily through each stage.
(7) Build Relationships and Brand Values. All communications should help to develop stronger
and stronger relationships with customers. Ask how each communication tool helps to do this.
Remember: customer retention is as important as customer acquisition.
(8) Develop a Good Marketing Information System which defines who needs what information
when. A customer database for example, can help the telesales, direct marketing and sales
force. IMC can help to define, collect and share vital information.
(9) Share Artwork and Other Media. Consider how, say, advertising imagery can be used in mail
shots, exhibition stands, Christmas cards, news releases and web sites.
 (10) Be prepared to change it all. Learn from experience. Constantly search for the optimum
communications mix. Test. Test. Test. Improve each year. Kaizen.
Just a few ways to beat the barriers and enjoy the benefits of integrated marketing
communications.

3. Althrough Last Question of Case Study.

Based on the case study and your own research on competitors, summaries the strategic approaches
which have helped Tesco.com achieve success online.

Decision 1: Market and product development strategies

. Tesco has used the Internet to extend its market into new product markets such as financial services,
white goods and DVD rental. While these are promoted through the store, the web provides a wider
choice of products, more detailed information about products and a method of purchase. The Internet
can also support entry intone geographical markets.

Decision 2: Business and revenue model strategies

. New revenue sources are available through extending the product range online as explained above, but
also with new digital revenue streams such as those for music downloads and e-Diets. Tesco also
supports advertising on its site of related product such as financial services.

Decision 3: Target market strategy.

Tesco.com has a broad market of customer types, so it is less relevant for them to use online to
selectively target these with communications. However, the article explains how Tesco has used the
web and e-mail channel to target more closely through targeting different lifecycle groups these are
customers who are grouped according to their level of adoption of online service. Tesco also uses the
web to target specific requirements such as diets and financial services through search engine
marketing.

Decision 4: Positioning and differentiation strategy (including the marketing mix).

Tesco offers some unique online promotions and lower online prices for selected products such as
financial services, which could attract a percentage discount when purchased online. It appears not to
use the service elements of the mix for positioning beyond the slogan You Shop, We Drop. But
attention has been paid to improving the Service.

Decision 5: Multi-channel distribution strategy

Wade-Gery is also director of Tesco Mobile, the joint pay-as-you-go venture with O2 which is mainly
serviced online, although promoted in-store and via direct mail. Tesco also offers broadband and dial-up
ISP services, but believe the market for Internet telephony (provided through Skype and Vonage, for
example) is not sufficiently developed. Tesco.com has concentrated on more traditional services which
have the demand, for example, Tesco Telecom fixed-line services attracted over a million customers in
their first year.

Decision 6: Multi-channel communications strategy

Tesco introduced a music download service and just six months later, Wade-Gery estimates they have
around 10% market share one of the benefits of launching relatively early. Again, there is synergy, this
time with hardware sales. NMA (2005) reported that as MP3 players were unwrapped, sales went up
even on Christmas Day. The growth overseen by Wade-Gery has been achieved through a combination
of initiatives. Product range development is one key area. In early 2005, Tesco.com fulfilled 150,000
grocery orders a week but now also offers more intangible offerings, such as e-diets and music
downloads. Laura has also focused on improving the customer experience online the time it takes for a
new customer to complete their first order has been decreased from over an hour to 35 minutes
through usability work culminating in a major site revision

Decision 7: Online communications mix and budget

The implication is that there was insufficient revenue from ad sales on village and insufficient
opportunities to promote Tesco.com sales. However, village was a useful learning experience in that
there are some parallels with village, such as message boards and community advisers. However, this is
not to say that Tesco.com will not invest in relatively new services. In November 2004, Tesco introduced
a music download service and just six months later, Wade-Gery estimates they have around 10% market
share one of the benefits of launching relatively early. Again, there is synergy, this time with hardware
sales.

Decision 8: Organizational capabilities .

, Tesco.com relies on in-store advertising and marketing to the supermarkets Clubcard loyalty schemes
customer base to persuade customers to shop online. New Media Age (2005) quotes Nigel Dodd,
marketing director at Tesco.com, as saying: These are invaluable sources as we have such a strong
customer base.

4. Key Takeaway of the case Study.

Market and product development strategies

Business and revenue models strategies

Target market strategy

Positioning and differentiation strategy (including the marketing mix)

Multi-channel distribution strategy

Multi-channel communications strategy

Online communications mix and budget

Organizational capabilities (7S)