It is also more cost effective as it is relatively cheaper to advertise online than it is to print an ad. Internet marketing is a business imperative because the Internet is an irrevocable and unstoppable trend. Even if you have a traditional "brick-and-mortar" business, you'll lose valuable customers without an online presence. People routinely search for goods and services with their computers in lieu of the yellow pages. If your business isn't on the Web, customers will likely choose another company with whom to do business.
By utilizing internet surveys this allows Red Lobster to reach a much larger respondent base with the click of a button. This also allows the company to respond quickly to the customer’s needs and market shifts. Furthermore, it makes it much easier for the company to organize their data compared to traditional surveys. This dramatically reduces the man power and cost necessary to perform marketing research. Instead of spending the time and money to perform traditional focus groups, online focus groups and web communities can allow a mediator to get real time information without having to leave the office or inconvenience any customers or potential customers.
It also benefits the consumer by allowing them to cut back on gas and other expenses by shopping online. The bigger the company, the bigger the chance that they offer e-commerce as well as a brick and mortar based business. More retailers have begun to view the internet as an opportunity rather than a threat. A consumer can find just about anything online, from groceries to real estate. One of the benefits of e-commerce is that it is quicker, easier and less expensive to start up and begin trade.
On the other hand you also increase your competitors’ online traffic. Same reason as using exclusive content it’s easy to search for the quality content online so if The Times couldn’t provide quality content for everyone its online traffic would definitely drop. For example, SelectTimes experienced the same situation when the online advertising was growing so The Times ended the SelectTimes model. The current paywall can avoid dramatically traffic dropping by offering 20 free articles and the articles shared on social media. Therefore, The Times can avoid online advertising revenue dropping.
The rules of marketing may have changed but it definitely does not mean that IM is the only answer for marketers. For a company like HubSpot, whose products appeal to a certain type of customer, specifically people who are familiar with 2.0 and know what product they are looking for, IM is effective because potential customers are already familiar with the platform and are shopping around. IM is also good because it is cheaper and provides very informative details on the company’s products. However, if a business only offers products which appeal to older or specific customers who are not familiar with web 2.0, IM will not work. One example of a business where IM will not work is a business that that sells electric wheelchair.
Conversely, an organisation (of internal customers) without external customers will cease to exist in any real sense. 2. Explain why increasing the lifetime value of a customer is an inexpensive way to secure the future of an enterprise and the four ways to do this. If an organisation already has a repeat customer and that customer’s lifetime customer value is estimated to be worth ‘X’, increasing the lifetime value of that customer can only be greater than ‘X’. Gaining a new customer can, however, be costly.
• Threat of new entry- Exhibit a high technology and a lot of know-how. Internet search engine industry has a low barrier to entry. Since the barrier is low, new entries should be able to provide faster search results then other competitors. • Threat of substitute products-Can customers switch easily to substitutes? As a search engine, yahoo can be a suitable substitute that can replace Google, whereas for advertisers I think Facebook is a powerful substitute that can replace Google.
Nowadays, people like to compare the goods between stores and online, they will buy the products on amazon for the low price. * Convenience: Bezos said that they do not make money from selling; they help people make better purchasing decision to make money. Amazon dedicated many resources to know what the customer wanted by offering customer review and feedback forms on all of its products (refer case study). Bezos invested a lot of money to establish operation center, even the operation scale is far beyond Amazon’s actual customer demand in that period. This enhances the customer experience greatly.
Looking at the practicality of questionnaires it is possible at first glance to see many pros in their favour. Firstly, they are flexible in so far that they are able to be conducted face to face, by post, phone or via the internet. Similarly, they are a cheap way of collecting large amounts of data from large numbers of people, and with the people who conduct the research not needing any specific training they therefore also save money. However, this can come as a problem too. Having no power of the success of the questionnaire when sent out to the public means that there are often thousands of questionnaires wasted, proving to be a limitation rather than strength.
While the customer value proposition of the business model was relatively successful for a short period, there were some errors made in judgment with respect to long-term strategy, and little or no effort was made to adjust to major changes in the market. This is especially true when considering that Video Concepts achieved such rapid grow by consistently reinvesting profits into purchases of additional videotapes and other expansion efforts. This growth came at the expense of paying down debt, which inevitably was unsustainable. In other words, Chad Rowan should have known that Video Concepts was at least somewhat over-leveraged. Despite misjudgments in market scope and need for flexibility, Mr. Rowan was definitely a successful entrepreneur in this case as exhibited by the way he identified market potential, developed a business plan, entered a relatively new and rapidly growing market, competed successfully against other businesses, and earned considerable profits.