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Unit 12 P1 P2
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This assignment contains task that covered p1 and p2 for unit 12
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In this assignment I will be using EBay and Tesco as my two contrastingbusinesses that will help me to define and illustrate Internet marketing. I will
also give the introduction of each business, following the 7p’s. Further more I’ll
discuss what technique/strategy does each business use to promote relationship
marketing and how does each business divide their market and target them. I
will also use examples for each so that my point is understood.
EBay is an American multinational corporation company which operates online
and provides Consumer to Consumer and Business to Consumer sales services
through the internet. It is originated in California, United States in 1995 and was
found by Pierre Omidyar. EBay has become a notable success as it is a Multi-
Billion dollar business with operations localized in over thirty countries. The
company operates online only and has their distributors in every area providing
services to customers. People here can also sell their own products whether by
fixing its price or by letting people bid on your minimum price.
Tesco is an UK international grocery and general merchandise retail chain,
which is the largest British retailer by global sales and domestic market share,
with, profits more than 3 Billion. Currently it’s ranked third as the largest retailer
based on revenue. Tesco was found in 1919 by Jack Cohen when he began to sell
surplus groceries form a stall in the East End of London. The first ever Tesco
brand appeared in 1924 when the name came about after the founder Jack
Cohen bought a shipment of tea from. He made new labels using the first three
letters of the suppliers name (TES) and the first two letters of his surname (CO) ,
forming the word TESCO. The first ever shop was opened in 1929 in burnt oak.
Originally Tesco specialised in food and drink, it has various areas such as
clothing, consumer electronics, telecoms and health etc.
EBay Tesco
Price The price ranges are Tesco pricing strategy is
different for products based on its marketing
depending on their message which is “ Every
quality, existence and little helps “. The
brand image. Prices are company aims to reduce
set in two ways for EBay, the cost of purchase and
one is through bidding, operation cost through
which is a really slow economies of scale and a
process which involves a set of other measures in
bid between the buyers order to pass the cost
in order to win the advantage to customer as
auction, so the highest the main brand value.
bidder gets to win and They also give vouchers,
can have the item. The clubcard points that the
other is simple and customer can use in
quicker method in which many ways.
the company sets fixed
prices on the product
and it states “but it now”
which means buyers can
1
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