Has The Traditional Marketing Eloped By Internet Marketing Marketing Essay

Has The Traditional market Eloped By Internet Marketing Marketing EssayThis seek project comp ars pawed-down merchandising and earnings merchandising to show the difference characteristics betwixt them. in addition this project is d adept to hazard taboo what merchandise tools ar utile for some elect companies in the viands diligence. The master(prenominal) difference betwixt mesh merchandise and conventional market is also study in this project.Different textbooks, websites, articles and inter look ats atomic number 18 bundlen for the in foundation required in this champaign. both the quantitative and qualitative tone-beginninges are aimd in this research. Quantitative in realiseation are gathered convention the website of the UK National Statistics. The author chartered interviews with three companies doing in the food industry in UK to collect in gradationation take for the analysis in this study.After analyzing distinguishable aspects of theory, comparison and interview coiffes demonstration was drawn. Both the net market and handed-down merchandising has their own advantages. therefore, the to a greater extent or less hard-hitting itinerary of life of selling is using the advantages of both meshwork selling and traditional trade fit to the goals of the develop with.1. IntroductionProfit maximisation is the main(prenominal) accusive of most railway line organisations for which they social function merchandising as their selling strategy. Thus they occasion diametrical strategies to sell their intersections and function. They alship mountainal want to pay off their target clients by creating, promoting and merchandise their crossroad and functions. One of the strategies they subroutine is marketing, which understructure show a business grow and thereby beget to a greater extent powerful. To find out what sort of marketing to use in incompatible area to achieve high share of market and hi gh gross sales rate is very essential (Karp, 1974).According to Dayal et al. 1996, marketing evict be defined as the activity of run intoing the implys and wants of buyers with and through the mass meeting mental process in a manner which enables the firm to achieve its objectives. On the other hand, Saxena (2006), marketing means understanding and responding to nodes needs.Marketing is an organisational function and a set of process for creating, communicating, and delivering value to customers and for managing customer alliances in way that improvement the organisation and its stakeholders (Parsons, et al. 2009).Marketing is considered to be a process of exploring, creating, and delivering value to come across the needs and wants of a target market at a turn a profit (Kotler, 2003).The Term Marketing Mix (Product, Price, family, and Promotion) was introduced for the first time by professor Neil Borden in approximately 1953. Markets were offered opportunities to explo it all(prenominal) aspect of the 4 Ps of the marketing incorporate and satisfy their customers needs and wants, as soon as the concept was introduced by him (Karp, 1974).Technology has changed marketing, after staying same for several long time marketing has now professed by meshing and out lives has fashion easy. It brings raw(a) opportunities for marketing as a unsanded confabulation persuade and has been replacing the traditional medium of discourse and selling bang-ups and armed services.Problem railleryIn traditional marketing, stocks of communications such as magazines, catalogues, slope to example communication etc are employ. And nowa long time in the mesh marketing, cyberspace is used as a communication channel as a routine of direct marketing. New opportunities hold in been submitd by this new communication channel which has affected marketing process. All the channels of communications shoot their own importance but profit is a channel that has dev eloped and is continuously developing which has got a lot of attention from everyone. Right last when choosing undecomposed marketing strategy for a vendor is very essential. For that the marketer should know the differences amid net income and traditional marketing and their advantages and disadvantages also. Some demonstrable questions might arise in our mind that which marketing approach is unspoiled comparing traditional and net profit marketing? In the real biography companies, which tool is the most used ones? Is traditional marketing left tush with the use of profits marketing? Is the traditional marketing and internet marketing independent to each other?Author find these issues chaseing and companies entranceway the market depart find this report helpful in rank their marketing tools and also have clear tantrum of all the elements of marketing mixing and the comparison of internet and traditional marketing.ObjectiveThe main objective of this research is to id entify polar characteristics of traditional marketing and internet marketing. bearvas Internet marketing and traditional marketing used by different organisations in food industry. Also, what marketing tools are effective for the chosen companies in the food industries are to be discussed?The managing directors of the companies who need to make a determination somewhat selecting the marketing tools and strategies will find this research helpful. They also will find the studies done on marketing theories and comparison between them, chief of view of managers that were interviewed and the analysis make based in these things.LimitationsThe marketing managers of chosen companies are working in UK and their answers are related to UK food and takeaway market. This research might non be suitable for business to business companies as it is only focused on business to consumers.2. Literature go offDifferent theories on the marketing mix and also traditional and internet marketing i s presented in depth.2.1 Traditional marketingAccording to Kotler 2003, Marketing is considered to be a collective process where individuals or groups prat exchange goods or services based on their needs and wants. Neil Borden for the first time approx in 1953 presented the content of marketing process as marketing mix, representing the mixture of utilitarian elements for marketing. Kotler considers the marketing mix as a mixture of different instruments or tools for pursuing a marketing plan (Walter, 1992).Marketing is the process of readiness and executing the conception, determine, promotion and statistical distribution of ideas, goods and services to create exchange that satisfy individual and organisational objectives. In traditional marketing, channels of communications such as magazines, catalogues, face to face communication etc are used. The aim is to create convergences and services which sell themselves by being what customers need and want (Kotler, 2003).The marketin g mix is probably the most famous phrase in marketing. The elements are the marketing tactics. Also know as the Four Ps, the marketing mix elements are price, place, product, and promotion.PriceAccording to Belohlavek 2008, Price is a Conditioning element to the purchase. In general, except for commodities, price only conditions but does not determine. The price, by conditioning, determines if the product chosen, as first choice, is the one desired.The pricing of services is one of the major(ip) factors in competing with other business open to most organisations. By fixity prices below those of competitors, a familiarity will hope to get a greater share of the market, all other aspects of competition being enough (Gubbins, 2003)On the other hand, Kotler presents, it is an important part of the marketing strategy and it sends out a cognitive content about the product, comp some(prenominal) and image. Pricing is decided upon the interest and goal of the fellowship that they want to achieve. Whether, they want bigger market share, uttermost profit or possibly a specific position in the market. It is very important job to set the price as it affect demand as the demand and price are dependent to each other.ProductProduct, or service, is the element which satisfies the clients needs. The product or services generates dickens types of relationships with the prospect a functional and a linking one. The functional relationship refers to the products use value and the link with the product is mainly defined by the complementarity between itself and the client (Belohlavek, 2008).Product is the solution to customers wants or/and needs. There are different aspects of product that needs to be considered. Quality, design and function of the product are some examples of different aspects of the product. The size, colour and general design should be considered by the marketer for the product appearance. The demand should be also kept in mind so that what is required in the market should be known and for that research and market study is essential. Service is also included in the product or is a part of this P. The social club can provide warranty as a good customer service which is addicted with the product and thus is a part of this P.PlaceProducts and services have to reach their customers to be consumed. In traditional market, it was come-at-able for producers and their customers to meet face- to face to exchange goods and services. The product and services should reach the customer in the in force(p) manner at right place. The process of moving product and service through different intermediaries to reach the end user is considered under this part of P (Stone et al., 2007).According to Kotler 2003, place in marketing can be about location in the means of store, factory and storage. Also the stopping point on distribution channels and transport are part of it. Place is the crucial thing to determine for the business. The gild who need wide outer space can chose location outside city which is toll effective. The political party who need crowds and is initiation new store need to be located in city centre, which is a bit costly but inveigles customers attention and feasible customers would drop in when passing by. A enactment of factors affect the disposition of the supply chain that evolves to suit the needs of the producer and to meet customer demand (Stone et al., 2007).PromotionAccording to Kotler 2003, Promotion is that part of communication that consists of company message designed to stimulate awareness of, interest in, and purchase of its diverse products and services. Company use sales promotion, advertizement, salesperson, and public relation to disseminate message designed to attract customers attention and interest.Sales promotion is any form of promoting sales where there is a call to action that resolutions in a demonstrable benefit, whether tangible or not (Mullin, et al. 2008)Advertising i ncludes any befuddle form of non-personal presentation and promotion of ideas, goods, or services by an determine sponsor. In contrast, public relations focus on building good relations with the companys various publics by obtaining favourable unpaid publicity. Personal selling is any form of personal presentation by the organisations sales oblige for the purpose of making sales and building customer relationships. Organisation use sales promotion to provide short-term incentives to encourage the purchase or sale of a product or service. Direct marketing can be done face to face meeting, mailing, telephone, catalogue, etc. This is one way of building long term relationship with customers. Finally, companies seeking immediate reaction from targeted individual customers use non-personal direct-marketing tools to communicate with customers. Sales force is the face of company towards customers when providing or whirl customers solution in either services or products. Their working process has become from just selling to more involved task. The sales representatives are the one that bring the needs of customers and the company in concert and create the mutual satisfaction. (Kotler et al., 2010).2.2 Internet MarketingInternet marketing has become an important issue for many businesses around the world which have any form of commercial charge on the net. In the early days of direct marketing, efforts at stint prospective customers could be best exposit as using a shotgun approach. By packing an envelope full of advertisements and coupons and mailing them out to a heavy(a) amount of households, it was sight that customers would actually respond by buoying some of the promoted products. Today, with the creation of large casing informationbases and internet that systematically collect information on households and individuals, direct marketing has become nimbleer. Incentive-based marketing is a technique where the customer is rewarded or even off for com pleted purchase transactions. Similar to the concept of rebates in the fleshly marketplace, online marketing incentives are driving the explosive growth in advertising and marketing revenues. The key difference, however, is that marketer can extract information from online consumers by providing them extra incentives? This information can then be used in conjugation with other direct marketing plans to design and deliver targeted messages (Lee, 2001).Most of the households use internet nowadays via laptop, mobile, palmtop, PC, Etc. The 2010 internet access survey of households and individuals stair home access to the internet and individuals use of the internet across the UK shows that 30.1 one million million million adults used the internet everyday or ripely every day. 73 percent of households had internet access and 31 million people bought or holy effectuateed goods or services online in the last 12 months. As we can see on the chart of adults using the internet more or less every day in appendix B shows that the number of internet users has almost doubled from 2006 till date. (Internet Access, 2010)According to Hoffman et al. 1995, Internet is a new marketing tool that can be used by companies in order to reach their customers. Internet marketing is defined as the industriousness of the internet and related digital technologies to achieve marketing objectives and support the groundbreaking marketing concept. Internet marketing is often presented as a new theory of marketing however some argue that basic concepts form the traditional marketing are still valid. Internet offers new opportunities to conciliate the basics of marketing mix. (Chaffey, 2000).PricePrice transparency on the internet as it is much quicker and easier to compare prices by visiting companys websites or by using prices comparison sites has made the business more rivalrous than was on the traditional marketing. Also the main reason of being competitory is the ability to red uce costs of store spaces and staff costs. As already mentioned above this is the reason of internet marketing being cost effective tool of marketing (Hagel, 1997).Online payment is new modes of payment that internet offers. conviction cards are seen as an efficient, convenient and flexible payment method for both customers and companies. However, customers are less confident about the service because of the trade protection and privacy issues.ProductInternet marketing is the most cost-effective way to market the products to the UK and the world. The internet leads to faster discovery of customer needs, greater customisation of the products to the customer needs, faster product testing, and shorter product life cycles (Eid et al., 2002). Internet provides the opportunity of offering a core product that satisfies the customers fundamental needs. On internet, a picture or description will replace the tangible product offered in the traditional marketplace or in stores. Services of fered on internet by a company should reflect the following factors in order to satisfy customers reliability, responsiveness, competence, ease of use, security, and product portfolio. (Yang et al., 2004)PlaceNew way of distributing product is done in internet marketing i.e. online selling. People can make purposes and purchase any product from anywhere in the world. Allen and Fjermestad 2009, argue that the internet has the greatest implications for place in the marketing mix because it has a large market place.Companies can gain the advantage of the low cost of advertising internationally without the necessity of a supporting sales infrastructure in different countries as they can expand their business form topical anesthetic market to both national and international markets. Internet also helps take advantage of new markets (Chaffey, 2000).PromotionInternet marketing as a promotional tool can give business a presence all over the world. Advertising, sales promotion, direct mark eting, etc are the elements of communication mix which can be done with the use of new way of marketing that is internet marketing. For example, websites and email are the effective tools to review the new ways of communicating to the customers (Chaffey, 2000).Companies can encourage their customers to visit their websites and increase sales by sending emails remainders and different offers frequently. Internet helps to inform customers of the benefits of the product and assist in different stages of buying process.Companies can use internet to deliver their messages to their customers and attract them with the help of online advertising. Customers are always encouraged to buy when they see offers or the cheaper product compared to other competitor brand. Thus, sales promotion on the internet and emails is very used nowadays by the companies. This also helps company to nourish long term relationship with its customers. Internet offers companies the opportunity to publish the news directly which is a part of public relations. Customers are sent emails to incite about the product and services that the company offers which also encourages the customers to send feedbacks and helps observe in touch. This is the part of direct marketing done by the companies as internet marketing tool (Chaffey, 2000).2.3 Comparing Traditional and Internet Marketing MixTraditional marketing and internet marketing is compared on the backside of its marketing mix or 4 Ps. This gives clear idea of different issues that either internet or traditional marketing carry in their tools.PriceThe cost of supply chain or the cost of distribution channel determines the price of the product. The bigger amount of cost is saved through internet marketing which can result lowering the product price. The cost of product may reach the paramount because of the management of distribution channel in the traditional marketing (Kotler, 2003).Tough competition in the internet marketing exist as the com petitors can scan our potential pricing strategy and also our potential customers can reach to the competitors on one click. There is always security problem in the internet marketing, where customers may not feel safe paying online through their cards quite a paying in the physical store where they can have more control over the payment process (Kotler, 2003).ProductProduct that the company offer in websites in internet marketing is just a virtual image where customers cant touch or feel. Whereas, in traditional marketing the product is tangible and customers can experience the property by feeling it. Customer can sometimes change purchase decision because of lack of physically reaching and feeling the product (Lee, 2002).Company can offer wide range of products via internet marketing but it is not possible or it costly to offer wide range of products in the physical store. There will be more problem of storing and staffs intervention inventory in traditional marketing than in i nternet marketing (Kotler, 2003).PlaceCustomers can be attracted by decorating the store, like some stores does in the Christmas and New Year to create a specific atmosphere. This is only possible in traditional marketing but is not possible in the internet marketing as it is just a virtual image. crimson though many of the websites try to create an atmosphere, but it is not as real experience as can be created in the physical store.In the traditional marketing customers have to wait and plan for the opening hours of the store and reach the store but in the internet marketing they dont have to bother about opening hours and the location. They can shop anytime and form anywhere from the world (Kotler, 2003).PromotionTime is money, what people say nowadays. The internet marketing helps save time of the customers and the company by the speed of reaching message to the customers about the product and services and also the purchasing process is done speedy. In traditional marketing it i s not possible. Reaching the targeted customers is made easy with the help of internet marketing and can continue the relationship with them (Kotler, 2003).Face to face communication with customers creates bond between business and the customers. The company can get lots of advantages like they can get neat feedback and can measure result quickly. Communication is both sided in traditional marketing whereas it is not practical in internet marketing (Kotler, 2003)A website helps company to present itself in many ways where the customer can study different aspects of the company and get to know it well where as this is not possible in the same way through traditional tools for promotion (Kotler, 2003). A good website is very important for get aheading in online marketing. According to Sunday Times, some important guidelines for a good website for a company areKeep sites simple and easy to use.Think user journey rather than individual pages.Provide clear information on contacts, deli very and refund policiesLet shoppers browse without having to register.Build trust. parity of internet and traditional marketingOn the basis of theories presented above, the main advantages of both internet marketing and traditional marketing is shown in the table as a bullet points. Marketer can adopt the positive aspects of either approach pointed out in this table.Internet MarketingTraditional Marketing court effectivePersonal ServiceVariety of productsPhysical access to productReach targeted customers easilyQuick feedback face-to-faceFaster speed and communicationLess tough competitionOpens 24/7Atmosphere of physical storeEasy paymentSecure paymentFigure 2.3 Comparison on Internet and traditional marketing3. Research MethodologyThere are different methods of data collection that we need in order to answer the research problem of this thesis. The two approaches are qualitative research and quantitative research which helps us explain the phenomenon. soft research is typically use d to answer questions about the complex nature of phenomena, often with the purpose of describing and understanding the phenomena from the participants point of view. Qualitative research is concerned with qualitative phenomenon. Qualitative research focuses on understanding the research subject by look into the results based on direct observations, in depth interviews and analysis of documents and materials (Leedy et al., 2005).On the other hand, Quantitative research is based on the measurement of quality or amount. It is applicable to phenomena that can be expressed in ground of quantity (Kumar, 2008).The aim of this research is to make a comparison between traditional marketing and internet marketing and find the effective tools in these two approaches used by a chosen group of companies in food industry. Therefore qualitative research method is mainly used in this research. This enables the author to explore all areas of the topic at hand and also give a thorough understandin g and analysis.3.1 info charm ApproachesThere are mainly two approaches of data collection. primary coil and supplementary data collection is the two approaches of data collection and the author in this research will be using both the approaches for the data collection.Primary dataFirst hand information gathered directly from the source, through experiments, observations, and interviews through mails, telephones, emails or personal interviews which are close to the truth are called primary data (Leedy et al., 2005).The primary data used in this study research was collected through interviews. The interviews were done with the managers of three companies in food industry they are Popadoms, Zaffron eatery gin mill and sultan Balti Palace. questions with the marketing managers of Popadoms, Zaffron eating place Bar and Sultan Balti Palace were done through phone call. ground on some specific qualities they have and all three could give us different point of views on the subject, these companies were chosen. The main qualities that these companies share are that they are successful, growing and use both internet and traditional marketing tools. Popadoms offer mainly takeaways with the finest and freshest Indian food topical anaestheticly (Popadoms, 2010) Zaffron Restaurant Bar offers both service and foods for eat in customers with affordable price (Zaffron, 2010) over again Sultan Balti Palace offers tourists with different new Indian foods with takeaway and dining in facilities (Sultanpalace, 2004).The author in this research has formulated a number of questions based on the data required to be able to come a conclusion regarding the research problem. To be certain of acquiring the obligatory information as effectively as possible, the interview questions were structured according to the limited time for this research and keeping in mind effortful accessibility to the specific individuals that were interviewed and their busy schedules.Secondary data Secondary data is information that has been gathered by someone other than the researcher and/or for some other purpose than the project at hand. Secondary data could be in form of books, journal articles, online data sources, etc. (Leedy, 2005). The supplementary data that the author will collect is through internet and books that are trustable. The statistics can be referred to as quantitative data will be gathered from the website of the UK National Statistics.Validity is establishing correct operational measures for the concepts being studied (Yin, 1994). In order to ensure the validity and reliability of this research, the methods and theories used to conduct this study were chosen from literatures written by authors known to be experts in this field and scientific articles form data bases recommended by Universities.CriticismThe verifiable data was collected through interviews done with the managers of three companies operating in food industry in UK therefore the author can not conclude that the result can be applicable for the whole food industry in UK. With the choice of qualitative research and the mentioned limitations, the author of this research cannot give a general conclusion applicable for other industries in the UK.4. Empirical DataThe author of this thesis will present the companies chosen as examples form food industry in UK. The companies were all chosen from the same industry to rule out the industry differences. The author contacted the companies to obtain information about the marketing conducted in respective companies. The marketing managers of these companies were just able to answer quickly by telephone due to lack of time. However, all these companies invited the authors to find more information on their websites therefore some of the information presented in this part is from the companies websites. The questions asked with the managers in the interviews of all three companies are as followsInterview questions1. What marketing too ls does your company mainly use?2. Which marketing tool does your company consider most effective? Why?3. What are your point of view on Internet marketing and its importance for your company?4.1 PopadomsCompany composePopadoms is an Indian eating house based in residential area Farnborough, Hampshire, UK. It open(a) 11 years ago and offers great Indian cuisine 7 nights a week. The restaurant is well established and has lots of regular customers. The restaurant also has a free topical anaesthetic home delivery service and offers a great takeaway service (Popadoms, 2010).Interview AnswersThe marketing manager was asked to give the marketing tools used as their marketing strategy in the company, which tool is considered most effective and how internet marketing was perceive in the restaurant.The manager answered that the company uses mostly printed and online advertising. For example, the company use leafleting and posts for the promotion and advertisement. They use websites and send emails as online marketing tools. About the marketing tool perceived as the most effective, the answer was that the company uses a combination of traditional marketing channels because these allow the company to capture local customers and reminds them their local restaurant.Internet marketing is an important marketing tool for Popadoms because it gives the company the conjecture to spread information faster. Also from the statistics we know that internet users are increase and ordering online. The manager doesnt think that the success of the company only depends on internet marketing, and there is no such specific tool to success.4.2 Zaffron Restaurant BarCompany ProfileZaffron Restaurant Bar is located in town centre of Farnborough, UK. It was established in 2001 and serves Indian food and drinks 7 days and nights a week. They have separate bar for their takeaway customers where they can have some drinks while waiting. They have more than 70 seating area capacity and serv es tourists as well as local customers. They are near Premier Inn, Aviator hotel and Farnborough airport which helps them to attract tourist customers (Zaffron, 2010).Interview AnswersThe marketing manager was asked about the marketing tools they use for their marketing and the effectiveness of these marketing approaches in their business strategy.The main marketing tools used by this company are according to the marketing manager Internet, homepage and traditional advertisement. As resolution to what the most effective tools would be, there was no general answer given. It was state that in different types of marketing they use different marketing tools. It depends on what they want to achieve.The point of view of the respondent about Internet marketing was positive. The manager considers Internet to be very important for their company. It helps them reach the right customer quickly and use different channels. It was stated that the company couldnt succeed as well without Internet nowadays. It helps them to get their message out fast and reach a wider market. He believes Internet marketing helps their business and revenues grow.4.3 Sultan Balti PalaceCompany profileSultan Balti Palace is now in its 10th year and is busiest Indian restaurant in Wokingham. It is in the boob of the Wokingham town and serves an average of 650 customers a week. An article in a local newspaper referred to the restaurant as having Poppadoms in the Premier League. It is two stage restaurants and is in listed Tudor building. Sultan Palace holds 25 seats on the ground floor and 55 seats upstairs in the main restaurant. The restaurant serves a range of tempting and delicious light meals and snacks at lunchtime. In the evening the restaurant is well known for its traditional Balti flare cuisine. There is a private room that holds 30 covers that can be hired for parties and functions (Sultanpalace, 2