Btec level business unit Essay
First of all, modern marketing is the current way of marketing which resolves around customer by satisfying their needs in return for profit due to high sales it will generate. As a result of high competition and changes in technology, businesses tend to find new ways to satisfy customer’s needs. Internet marketing is way businesses deliver alternative and faster services to customer. It resolves around the internet (I. E. Trading on the internet where business can advertise, sell product, research etc. ) Modern marketing also relates to services such as after sale services like free fitting f appliances and return & refund policies. . 1 The main purpose of Aids Aids is known to be one of the famous designers and manufacturers of sports clothing and accessories. They’re a multinational organization that has their branded products sold in different stores such as JDK, Footlocker and Sports direct, however they also operate in stores as well as online. Aids have gained a global awareness as a result of the quality product they sell but they’ve been successful because they have coped with changes such as completion level and other issues that have caused the downfall of some businesses in the I-J
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Aids is a manufacturing business as well as a retailer; they sell their product to other bigger retailers and directly to customer. Internet marketing is a way aids sell their product directly to customers. 2. 1 How asses uses ten Internet to mark et Its prop cuts or services I Nils will rennet on the key point: a) Associated marketing mix b) Relationship marketing c) Identifying new product and marketing development d) Using the internet to achieve business objectives e) Segmentation and targeting These key areas are associated with internet marketing as they all interact to satisfy customer as well as the business.
This is because businesses aim to make more profit and to do so, they have to satisfy their customers in other to achieve that aims. Associated marketing mix First of all, marketing mix is the frame work used by businesses to make customers aware of their product and services. It interrelates with the ups which can be extended to ups for a service provision organization. The ups includes product, price, place and promotion, in addition to the extended As which are process, people (I. E. Staff and physical evidence.
The role of internet marketing resolves around the ups f the marketing mix, for example during internet marketing the price, product, promotion, place, process, people and physical evidence are all processed to satisfy Product:A product is a physical item that customers need to satisfy their needs. In terms of internet marketing, businesses such as Aids, Nikkei ‘s display their product on their site. For example Aids displays different types of products which include detailed information about the product on their site to attract customers to buy.
These product are characterizes in to different sections to help the customer find the product they need easily (I. . User friendly). For example on the Aids site, sections such as Men, women and kids are displayed, this then lead to different product varieties such as shoes, clothing and accessories. Some business also use internet to identify different feature to add to their product, for example Apple communicate with their customer through a chat box. This allows customer to give their opinions on what could be done to improve their product.
Price: a price gives value to a product. Aids use different types of pricing strategy as they sell different varieties of products, however the most common used pricing treated is the skimming strategy , where products are sold at a high price because of they have a unique product. The price of the product is always displayed with the product however the price might change if discount or delivery cost is included. Place is also known as distribution channel. This is where customers can get products from, therefore internet marketing is considered as a distribution channel (I. . Place) because customers can purchase product online as they do in stores. In terms AT Internet marketing, promotion covers a large range AT areas sun as giving discounts and internet base advertisement. These might include, sending emails, creating link on social sites, affiliate (I. E. Advertising on another business site), pop-ups, banners and search engines. These types of online promotion can help to create awareness but in terms of convincing customer to buy product, discount and sales promotion are the most like to tempt customer to purchase.
Under internet marketing , the extended As are related because it is an online services; therefore process, people and physical evidence are all involved. The process can be related to how the business operates online when customers purchase product (e. G. Hen they dispatch and deliver products to customers) or how a customer can purchase product online by following different stages. Every online business has a procedure of delivering product to customers at an agreed time and date. The peoples in the extended As are related to the organization’s staff.
In relation to internet marketing staff are those who help the business to deliver the best services they aim to provide to customers. Staff are responsible for different tasks such as sending emails about new or exist product to customers. The website is considered as physiochemical but their logo is the most recognizable evidence of aids as it is shown on their product, website and any activity which involves aids. Relations marketing Relationship marketing is when a business focus on the long term value of their customers by building good relations with them to gain their loyalty.
Logically, it is easier and less expensive to keep customers than it is to gain customers. This is why businesses tend to deliver the best services to customers but recent high competition level has seen most businesses deliver good services, therefore businesses such as Aids & Nikkei usually reduce the price of their product by vying out discount and voucher to their existing & potential customers. Businesses tend to give discounts and sales to customer that shop online compared to those who shop in store. The main purpose of giving out discounts and sales is to attract more customers and ensure a repeat of business.
The increase of internet marketing businesses have paved ways for customer to get different options to buy the best and cheapest products, therefore the use of discount and other promotional activities helps to gain customer loyalty. Customer tend to repeat business if they’re satisfied, therefore anything business do hat resolves around customers and satisfy their needs is capable of building a good relationship . This can help a business to retain their customers as well as gain more customers (I. E. Through positive word of mouth advertisement).
For example Deco’s use club card to maintain a long term relationship with their potential customer by keeping in touch with them . The club card contains customer’s details such as emails, therefore Deco’s can send emails about updates and new product. Online businesses usually have links with Face book and Twitter to attract more customers and to get to know more about their customer needs and expectation. This can be done by the use of staff forums where customers can communicate directly to the business’s staff. Relationship marketing can also be built by the use on conversion rate (I. E. He rate at which customer visit and purchase product with no intention of buying). Businesses that operate online usually create a login register where customer can Identifying new product and marketing development Internet marketing can also help to perform an online marketing research which helps to make strategic decision, e. G. Aids can perform an online survey where hey can get customers opinions about their products, especially when Aids aim to introduce a new product to the market. However, Apple and Samsung are the main businesses that use internet marketing to identify new products.
They interact with customer for their opinions about features of a product they could add to their new products. Apple also review comment & feedbacks made about their previous product to Improve on ten new one. Marketing development is when a business sells its existing product in a new market. This can increase the market share of the business. Dodo this, the business would deed to perform a marketing research to identify if it would be profitable to operate in a new market (I. E. Only when the business operates in store) .
However, Internet marketing allows long distance purchasing, performable, because Aids is an international organization, customer all around Europe and some parts of Asia can purchase product online. Using the internet to achieve business objectives When a business first decide to operate online, they set specific targets and objectives about what they expect to gain from internet marketing, for example, an objective can be to increase revenue from the internet by 20 %”. Internet marketing can help businesses to achieve their aims and objectives because it gives them the opportunity to operate in a mass market.
For example a business that operates online as well as in store (I. E. Brick and mortar)is more likely to sell more products compared too business that only operate in stores. Businesses such as Aids, Nikkei & Deco’s would be able to meet their sales targets because they’re well known and operates online which makes it easier for customer to get access to product. Internet marketing also allows businesses to set new target, such as to increase racket share and sales by 20%. Operating online helps to reduce cost as the business can cut operation cost such as staff wages.
Segmentation and targeting: logrolling specific target audience based on their interest, lifestyle, age, location and needs. This can also be based on customer’s budget (I. E. Income), preference and reason for buying. Customer buying behavior can also help businesses to segment their target audience as they would specify the exact product to promote to such customers. For example a customer cans buy clothing because he want something reliable to wear whiles someone else might ay an expensive designer clothes because they want people to know they’re successful in their career.
Internet enables segment and targeting Internet marketing enables different types of segmentation to take place, for example businesses that operate online can use a number of different segmentation methods such as Demographic Cryptographic Economy Usage-based Demographic segmentation Is ten process wandered Duskiness’s segment ten market by age, income or religion. In relation to internet marketing, it helps to know how many internet customer there is. For example businesses can track the number of customers that have visited their site and purchased products (I. E. Tit the use of conversion rate). Finding out the number of people that have visited a site can help businesses to set achievable target and predictions of the amount of income they can gain from internet marketing. Some products are design to suite a certain age group of people and also for different ethnicity and religion because they have different needs and wants. Cryptographic segmentation is a method used to classify customer in to groups by their social class, lifestyle and personality. Customer can be divided n to social class which depends on their income and taste.
For example higher income earners will like to bibliography car to show people they’ve been successful in their career whiles a working class person with lower income will like to buy a Ford Gazette. However, in relation to internet marketing, businesses can send recommendation of alternative product to a customer based on the previous purchase. For example if a customer usually purchase Games product on Amazon , the business can send emails about alternative and new Game product to the customer , with the intention of convincing the customer to buy the products .
Usually, business can access the details of their existing customer that have an account registered with them and see what they are buying occasionally or consistently. This then allows them to send accurate recommendation of a product to the right customer. Usage – based is a data based software which allows businesses to know how the internet is being used in different parts of the world. This information helps them to identify different ways of promoting their product as well as selling them. For example if the use of internet on Smart phone increase in the I-J, businesses such as
Aids might set up an App which will allow customer to view new products (I. E. Advertising product with the use of app software. Business interaction is buying and selling between different types of customers and suppliers. Some businesses depend on purchasing products from another business to sell; this is known as business to business interaction (I. E. BIB). For example Deco’s purchase Kellogg products in bulk and sells directly to customer. Another business interaction is between the business and its customer. It is known as business-to – customer interactions (I. E. BBC). This is when businesses directly sell to customers.
The use of internet marketing has allowed businesses such as Aids and Nikkei to sell directly to customers instead on relying only on BIB revenues. For example Aids sale their product to retail outlet such as Top man and Footlocker, however with the use of commerce, Aids can make more revenue as well as profit because they can also sell directly to customer. Disintermediation is the removal of the middlemen in the process of getting product or services to consumer/user. The internet allows business to sell their product trailing to customer ratter tan selling It In Dull to ten meme, winner customer get easy access to product.
In relation to internet marketing, direct marketing is when businesses approach customers directly by phone and email depending on their target audience. Internet marketing is very essential to Aids because it makes it easier and faster to communicate with their customer all around the world. They do this by creating a login [register page on their website, which allows customer to sign in . When customers register an account with Aids, their information such as emails and umber is obtained by the business.
With this information Aids can send customers deals and offers based on their previous purchase. For example when customers purchase a product on the Aids website, they are required to register an account for security reasons, therefore the marketing department of Aids can trace the types of products a specific customers usually purchase and send offers. The information they gain from their customer that have an account with them can be used for different purposes such as segmenting customers based on their age, needs and income.
Economic is related to the wealth of customer (I. E. Level of income). The car industry is segmented based on the level of income of their market. For example Ford usually target the working or middle class customers by offering deal which will take customers at least 5 years to pay for the actually product whiles Toyota and other higher profile companies target the higher income earner . Higher income earner and middle class earner have different taste and behaviors differently, therefore business use different advisement methods to make their customer aware of their offers.
Btec level business unit
The monthly net cash flow is at -E,900 for May and -E,900 for June this is a decrease f -E,OHO and this is decreasing hopefully meaning it will time we will see more positive monthly scans towns. The closing balance for May is at EYE,500 and for June at El 1,600 a decrease of E,900. This is having a bad impact on the business because of the monthly net cash flow and total expenditure are both negative means Stave’s business is not making profit only loss. It could be costly in the long run. I think Steve should lower his salary to EYE since they are not having positive monthly net cash and total expenditure.
July and August The opening balance for July starts off with El 1 ,600 however the opening balance for August is E,700 a decrease of E,900. This is because of the sales revenue for the previous month. The sales revenue for July is E,OHO however; this increases to E,OHO the next month an extra E,OHO profit. Although they had the same amount of raw materials price they sold more. No loan has been taken out for any of the months. The reason why there increase in
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The total expenditure for July and August is the same at Ell,900. This is having a good impact on the business as this will result in a regular cash flow which will then low Steve to easily predict future cash flows and make plans to help advance his business. The monthly net cash flow for July is at a negative at -E,900 however; this is getting better and the money should eventually go to a positive as in August the price lowers to -E,900 and increase of E,OHO. This must be because of the sales in the months before and the sales revenue in these months.
The closing balance is at E,700 for July a decrease from the previous months and this gets worse at it progresses to the next month and the closing balance goes to E,800. This reason for this decrease is the sales revenue précised month. September and October The opening balance starts off with E,800. This is having a bad impact on the business as Steve will not be able to pay the bills or pay for stock and he will then eventually go bank-corrupt. In October there is a slight improvement as the opening balance is E,900.
The sales revenue starts to recover as for September it is El 1,000 a huge improvement from the previous months. For October there is a higher increase EYE,OHO. This is having a good impact on the business. I en raw materials Increases Trot Trot October to December to all of this change the prices of raw material increase significantly to El 2,500. The reason for why the prices of raw material have gone up is the demands for the product has gone up. Therefore Steve has to buy more raw materials for his customers. Regular cash outflow is good for the business because there always has to be money going out of your business.
This makes it easier for the business to prepare them for the money going out of the business. The Monthly net cash flow starts off with a positive for September at OHIO this is a huge improvement from the previous months. The monthly net cash flow goes to – E,900 a huge drop in October from previous months. This is because of the raw trial costs have increased. Septembers closing balance stays at a positive ?¬3,900 and increase of OHIO from the previous months. On the other hand, for October although it stays at a positive the closing balance drops to II,OHO and this is because of the raw materials costs.
November and December The opening balance starts to drop from the previous month to now at II,OHO in November. This is because of the raw material costs from the previous months. This drops even more in December to -EYE,900. This is having a very bad impact on the business as they are not starting off with a positive amount. This will not allow them o operate. This is the only month that has had a negative opening balance and will affect the business. The sales revenue for November is at EYE,OHO which is a strong amount and has had an improvement from the previous months.
This sales revenue has a bigger improvement and goes toted,OHO in December. This is having a good impact on the business. The raw materials cost stays at EYE,500 which will have a bad impact on the business if the total price of expenditure doesn’t go higher than the previous month. New cooking equipment is one of fresh business irregular expenditure. On November EYE,OHO went out of business. This is really bad for the business. Irregular expenditure is bad for the company because you don’t know when it going to happen or how much going to cost.
Although this decreases to EYE,900 in the next month this will still have a bad impact on the business and may cause them to go bank-corrupt. The monthly net cash flow for November is at -EYE,900 and this is having a bad impact on the business. For the last month the monthly net cash flow goes to a positive El , 100. However, this still won’t help the business. The closing balance for November Is at -El a nudge decrease Trot ten positive previous Mont Ana TN losing balance for the last month is at -EYE,800 a decrease from the previous month but will not help the business.
Finally, the total opening balance for this year is at IEEE,400. This figure has been affected by the negative amount at the last month. The total monthly net cash flow for the whole year is at -EYE,800 this is because of the over expenditure and has affected the business earning them a smaller and even negative closing balance. The total closing balance for the year is at IEEE,600 and this has been affected by the negatives. Key words Total expenditure: All of cost added up. The total amount of money that is spent on a product in a given time period Monthly net cash flow: Equals cash receipts minus cash payments.
In simple English it tells you if you’re making a profit or loss. Total income: All of your income added up (income is money you get from your goods and service) Cash outflows: The total money going out from a company in a given period of time. Cash outflows include expenses such as salaries, supplies, and maintenance, and lease Cash inflows. The total money going in to a business or company for sales of goods and services. Cash outflows include income such as sales revenue, loan etc.