Essay
Explain how and why groups of customers are targeted for selected products.
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why groups of customers are targeted for selected products.
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Name: AimanUnit 12: internet marketing Task 1- P1. P1 describe the role internet marketing has within a
modern marketing context. P2 describe how selected organisations use internet marketing.
Relation marking- Relationship marketing is a face of customer relationship management (CRM) that
focuses on customer loyalty and long-term customer engagement rather than shorter-term goals
like customer acquisition and individual sales. For example, say you run a car dealership, and
someone buys a car. You could send a campaign to your new client that would touch that person
several times throughout the year. Thank you, email, birthday email, holiday email and a couple of
promotional emails. You become top of mind with your client and the goto person for referrals and
future business.
ICT’s - ICT refers to technologies that provide access to information through telecommunications. It
is like Information Technology (IT) but focuses primarily on communication technologies. This
includes the Internet, wireless networks, cell phones, and other communication mediums.
Demographical- Demographic segmentation divides the market into smaller categories based on
demographic factors, such as age, gender and income. Instead of reaching an entire market, a brand
uses this method to focus resources into a defined group within that market. For example,
Demographic information examples include age, race, ethnicity, gender, marital status, income,
education, and employment. You can easily and effectively collect these types of information with
online survey questions
Psychographic- Psychographic segmentation is dividing your market based upon consumer
personality traits, values, attitudes, interests, and lifestyles. Segmentation will allow you to better
develop and market your products because there will be a more precise match between the product
and each segment's needs and wants. For example, amazon uses Psychographic information which is
buyer's habits, hobbies, spending habits and values. To make they product more appearing to
customer they show them what each person likes are interested in. Demographics explain “who”
your buyer is, while psychographics explain “why” they buy.
Economic- on a global basis the economic prosperity and conditions within different countries
determine the extent to which e-commerce (buying and selling on the internet) is likely to succeed in
them. A business considering an online strategy that depends on an increasing volume of sales in,
say, Eastern Europe, would do well to acquaint itself with economic data about the area. Example of
Economics is the most basic concepts of free-market economics that help in determining the right
price for a good or service. E.g. a start-up company wants to introduce a fresh product into the
market and wants to find the right price for its product. Let’s say the product costs $100 to the
company and the production capacity is 5000 units. So the company surveyed to measure the
demand for the product at different prices
Usage-based- this kind of data informs business leaders about how the internet is being used in
different parts of the world. The service provided by Click Z offers detailed insight into traffic
patterns on the web. For example, EE give pay-as-you-go cell phone plans which are frequently
charge on usage, such as minutes of phone time used, or number of texts sent.
Disintermediation- Disintermediation is a process that provides a user or end consumer with direct
access to a product, service or information that would otherwise require a mediator or a middleman
such as a wholesaler, lawyer or salesperson. The World Wide Web has often eliminated the need for
a mediator also known as a middleman. End consumers merely must research the product, service
or information for themselves, thus changing the relationship they have with the manufacturer or
service provider. Examples of disintermediation Dell and Apple, which sell many of their systems
direct to the consumer by their online website that customers go to a purchase the product they
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