Internet Marketing

Tesco’s aim to supply high quality item’s of food and drink of all different brands at affordable prices for all types of the public whether its low class or high class and for it to be delivered by their drivers to your door and paid for over the internet to make it a secure and easy service, it is a 24 hour service, this is Tesco’s core service that they offer from there website. Tesco Extended Service

Tesco’s also have an extend service, they sell a wide range of insurance, these include home insurance, car insurance, pet and holiday insurance and many more, they aim to provide this at competitive prices, this service can be easily dealt with 24 hours a day over there website, it can be paid for and the deal is transferred over the website for a secure service. This is taken from Tesco’s home page from www.

tesco. com. EBay’s Core Service EBay provides a online trading centre for others around the world to trade there goods and products, it’s a 24 hour services that is completed entirely over the internet, it is easy to use and secure, it has a great reputation and is known to be a good service, this is eBay’s core service and is also known as the online market of the world EBay’s Extended Service

EBay also provide an extended service, they offer charity’s to sell there products over eBay and eBay advertise this strongly, they provide charity’s the chance to make money over their website by the charity selling the goods that they would normally sell in the shops over eBay, they also let there costumers the chance to donate money to the charity of there choice over the website. The internet supports products in many different ways. Firstly, the internet can help company’s gain a much larger profit if the company use the internet to set up a service were they can sell their products over the internet.

This would secure the business with a much greater income. Another way that the internet can support product within the 7P’s is by making the products well known. This is often done by advertising throughout the internet. A good example of this is Google, Google have pop-ups all over the internet to gain interest of the public to make there product, in this case Google is a service more well known and to sell this to the public. This is how the internet supports product in the 7P’s.

Air France‘s Case You have just been hired by Rob Griffin to help him better understand the effectiveness of Air France’s online sponsored search efforts. He has requested answers to the following questions:

Please calculate the effectiveness of each of Air France’s marketing campaigns across the 7 different publishers categories (3 points).

Based on the data above, we can see that: a. Yahoo-US leads for the most effective marketing campaign among 7 publishers based on the total net revenue per cost, Yahoo-US got the biggest value, 18, it means that every $1 that Air France spent they will receive $18 from their investment. The average of transaction conversion and average of sales per click of Yahoo-US also leads amongst the other publishers. b. Google-US got the biggest of total net revenue from the marketing campaign, almost US$1. million, and also had the biggest total booking number.

But our opinion is, Google US did not do the marketing very effective, the money for the media costs that they spent are the biggest amongst the other publishers, and the total net revenue per cost ratio is only 4. c. Overture-US is the most ineffective in doing Air France marketing campaign, even though the average costs per click of Overture-US is the lowest, but the total clicks is the highest, it ranked the second highest amongst the other publishers, so it makes media cost of Overture-US igh and the total booking from the clicks is not in a good value, so we think that Overture-US have to improve their its campaign of Air France. 2. Should Media Contacts recommend the same exact strategy for Air France across all search engine publishers? Or would it be more effective to tailor each publisher strategy to maximize ROI (Please provide support for your answer) (3 points) . From our analysis with the data provided by DoubleClick. Inc. , publishers have their own strong point to focus on in order to maximize their net revenue and tailor strategy for each publisher will be the best option.

Below, we will explain publisher’s performance in term of the following points:

Campaign All of the publishers earn lot of revenues from their “Air France Branded” campaign with modest click charges on average of $1. 82 and maximum clicks of 106,153 from Google-US, while “Business Class” campaign is not really productive to gain revenue as publishers lose money on this campaign. Click charges for “Business Class” campaign is ranged between $3. 76 (Yahoo-US) and $5. 39 (MSN-US) per click. Geo Targeted local search campaign has potential in using Google-US service.

For example, In New York City, Google-US can get total of 3,167 clicks with 1. 39% transaction conversion rate. Compare with “Paris & France Term” campaign, it only gets 0. 35% transaction conversion rate with 29,039 clicks. In Contrast, Yahoo revenue for its Geo Target campaign is very low and loses money in 10 out of 13 cities in US.

Keyword Keywords that consist of “Air France” word are convincingly gaining more revenues than other keywords across all publishers. Google-US earns from the “Air France brand”, but losing money on bidding European cities keyword like “Lyon”, “Bordeaux”, and“Rome”.

The use of phrase keywords also contributes to number of bookings like the phrase “DC to France Sale” which have the highest conversion rate compare to others. Different with Google, Yahoo has moderately earned more income from the words of city such as Florence, Paris and Rome. This may be resulted from the difference search methods that Yahoo mainly focuses on web contents keywords. Overture more likely to gain revenue in words that relate with cities in eastern part of Europe like Athens, Tunis, Amman. Overture loses money on broad unspecific words.

Thus, Overture should focus on the exact keywords which have connection with flight and travel to eastern part of Europe. MSN-US and MSN-Global costs mainly derived from phrase keywords except “Air France Brand” keywords. For example, phrase keyword of “travel to France” generates moderate number of 346 clicks, but none of the clicks succeed in sales conversion. Another example is “flights to Paris”, other publishers succeed in booking of positive net revenue with the keywords, while MSN-US and MSN-Global lose money. * Broad and focus keyword Broad keyword usually gains many clicks from the campaigns.

By analyzing publishers’ performance data, we concluded that Yahoo-US, Overture-Global, MSN-US and MSN-Global are publishers that have strength in broad campaign keywords. Number of clicks for broad keywords represents minimum 90% of total clicks and generates higher transaction conversion rate than focus keywords. Google-US and Google-Global also have a huge clicks gained from broad keyword campaigns on the average of 74% and gain more revenues than focus keywords, but the transaction conversion rate is lower than that of their campaign have.

Although broad keywords gain many clicks for its ads, it doesn’t guarantee the increase of sales. 3. Based on your analyses, who do you feel are the most appropriate target customers upon whom Air France should focus their acquisition efforts (again, please provide clear justification for your answer) (2 points) Due to several reason related to market modification and AirFrance partnership, we can support that Business customer segment would be the most important target market.

Indeed, because of the development of new low fare companies, the value proposition among the competition changed and gave another offer to the consumers. Ryanair by providing cheap price ticket attracted an important part of the price sensitive customers who use to travel with previous oligopolistic offer with higher price. The business customers are less sensitive to the price, because of less changing (except in case of travelling budget restriction), contracts and promotion with big companies. Ryanair, Irish company, was focused on intern European flight, taking care of 26 different destinations.

According to Exhibit1, AirFrance first market was Europe thenit was followed by the North American Market. The mix of price sensitive loss market and intern European market loss pushed AirFrance to work more on its flight between Europe and other continent (Transcontinental flights). International and Transcontinental travelers are highly interesting target market. Therefore it is also important to specify this segment. Indeed, it should be the higher class, service and security sensitive customers.

AirFrance provides a premium service compared to the competition. Based on our analysis, there is no or few people outside of USA (Google Global: Europe, Asia, Africa) making AirFrance generating net income for European keywords (Greece, Florence, Paris). The American providers, Yahoo-US and Google-US, are the biggest revenue generator compared to Global (Yahoo-Global and Google-Global), by the same time Appendix 1 shows that American customers are not price sensitive and will generate less profits for “cheap“ keywords.

The partnership with L’Avion for business travelers between Paris and Newark (NewYork) was a logical result of the AirFrance marketing situation. Through customer base, AirFrance kept a stable business customer amount and lost a significant part of its price sensitive customers who finally shifted to other low-fareairlines.

Appendix 1

 Based on your answer to Question 3, what B2B acquisition partners would your team recommend that Air France consider? 2 points) Based on our group analysis there are 3 types of B2B acquisition partners that Air France should consider doing partnership with which are Yahoo-US, L’Avion. First partner, Yahoo-US, based on our group analysis from question 1 out result shows that Yahoo-US has the highest return on investment (ROI), the lowest cost per click and the lowest cost per booking. This is a good choice for Air France to engage in partnership in order to get the best ROI while at the same time minimize their costs in ads.

Not only that Air France can get a lot of ROI back but they also have a high possibility in getting more sales from the click of users. Therefore our group recommended Yahoo-US for Air France to consider. Second partner, L’Avion, as of our target customer from question number three our group focus on business travelers. L’Avion only provides business-class service between Paris International Airport and Newark International Airport. This can be link to with Ryanair partnership because as our group mentions before that Ryanair has not yet a flight to USA where Air France is offering this route.

By partnering with each other, both Air France and Ryanair can enjoy their profit from these group of business travelers which Ryanair already have a lot of loyalty customer with them. For example, if the customer from Ryanair wants to fly to United State they can use Air France service where profits can be shared between these two Airlines. Therefore, as our group has mention above, we believed that by partnership with these B2B business would eventually increase benefit and contributes to gain good market growth with good profit toward Air France and its partnership companies.

An effective ‘Marketing Mix’ including all 7 is a way of identifying a business’s achievements of marketing objectives, meeting customer needs, is balanced and consistent, creates a competitive advantage and matches corporate resources. Product ASOS promotes their products very effectively as they use clever visual tools such as 360 degree view of their product, video and picture to enhance the quality of the product itself. They also provide a range of products and service including clothes, accessories, shoes/sandals etc and its provided for men and women.

They include their own brand and designer wear which shows that they have high quality in their product. ASOS have mentioned in their annual report that their 20 biggest brands are now represented by a ‘shop in shop’ providing a rich brand experience for their customers and a unique distribution platform for ASOS brand partners. ASOS also sells a range of products matching famous celebrity’s outfits that customers would want to buy. ASOS, online or in their magazine provides customers the latest fashion info and what not to wear giving them an advantage to promote their products.

Their business attract over 5. 2 million visitors per month Price The price has a lot of impact on the service buyer’s satisfaction level. Often, paying a higher price makes a customer more satisfied. Price is often considered a proxy for quality and vice-versa. What is important to note that services being all the more intangible, the price becomes an important factor for the actual service consumption to happen, after service awareness and service acknowledgement. Thier price for the products vary depending on the product – quality, brand etc.

For the designer items it can be expensive, although ASOS may provide same looking product without the brand name making it affordable. With the price they offer ASOS is making a Profit over ? 10,009,000 figure taken from ASOS annual report as they have increased number of active shoppers over 1. 2 million Promotion The promtion plays a role in the perception the possible target audience may have about your service. There has to be a fit between the promotion and the positioning. Promotion leads to service (brand) recognition and further establishes a proxy to evaluate quality of services based by potential ustomers. ASOS uses their business is purely based upon the internet everything is promoted through the World Wide Web on the website and off. They have promotion on other websites and also ASOS has developed an application to allow customers to track particular products on its sites through their web browser, whatever websites they are looking at. The online retailer has used functionality within the latest version of Microsoft’s Internet Explorer 8 web brower, which Microsoft released on March 19. Place

Place represents the location where a product can be purchased. It is often known as the distribution channel. The place can be situated as a physical store or as virtuals stores on the internet. ASOS. com is rapidly becoming the market leader in the UK online fashion world. All the products are sold ONLINE and not located anywhere else where people can purchase ASOS items. ASOS does have a warehouse where all stocks are kept and together has a office located in hardfordshire. Processes processes are important to deliver a quality service.

Services being intangible, processes become all the more crucial to ensure standards are met with. Process mapping ensures that your service is perceived as being dependable by your target segment. This is the procedures of activities which lead to an exchange of value. The process should include how customers are handled from first and last point of contact. ASOS is determined to be number one in the online market. They have thought through their process and kept it clear and have made it customer satisfactory. ASOS’s strategy consists of aims that has a well-defined process.

ASOS have control of their website, their information/images etc are presented without any doubt intelligibly promotional. Payments are all done through their website online as they are only an online business. Also they have a step-by-step information on how to use and buy off their website, they also have page on delivery information. Here they can track down on where shopping is, know how much is cost to deliver, know when to expect the delievery etc. People People is crucial in service delivery. The best food may not seem equally palatable if the waitress is in a sour mood.

A smile always helps. Intensive training for your human resources on how to handle customers and how to deal with contingencies, is crucial for your success. People Are their employees, customers – their family and friends, and any other people associated with ASOS. com. Employees are important to this strategy of marketing mix as in can be those who deliever the products to customers. So they have to polite, helpful and have the knowledge of the business for them to answer any questions provided by the customer.

It can also be the employees that answer the phone when any customer calls for any quiries. ASOS. com also have employees updating their website and replying to emails and online comments on their feedback page. ASOS employees has the knowledge, training and other aspect helping the business with marketing for their business. ASOS customers are also people that help in the marketing of services as they spread the business information. Physical evidence Pyhsical evidence affects the customer’s satisfaction.

Often, services being intangible, customers depend on other cues to judge the offering. This is where physical evidence plays a part. Would you like eating at a joint where the table is greasy or the waitresses and cooks look untidy and wear a stained apron? Surely you would evaluate the quality of your experience through proxies such as these. As ASOS. com is an online company their customer has difficulty not knowing how for example a dress will feel, look on them. ASOS therefore provides annual reports, articles, etc showing them that ASOS products are worth the value.

ASOS helps customers with their products by giving them full information about the product. They have recieved awards that convince customers to buy online. First award was given to them in 2008 from Company High Street Awards for ‘Best Place To Spend’ and the second was given in 2009 from Drapers Etail Awards for ‘Best Customer Experience Cosmopolitan Online Fashion Awards – Best for Bargains’. ASOS allows to give unwanted products back and their staff are always helpful and polite towards their customer as its one of their business objectives.

Goddess of victory also of the same name; she symbolized victorious encounters, and is believed to have overseen many of histories earliest battles. In 1971 Phil Knight asked Advertising student Caroline Davidson to design a logo, which could go on the side of a shoe. She was paid $35 for her creation of the SWOOSH logo. It is said to represent the wing of the goddess, and personifies her spirit, which “inspired the most courageous warriors at the dawn of civilization”. (Wincher, 1997). The ubiquitous ‘swoosh’ logo and “Just do it” slogan are both registered with the U. S Patent and Trademark Office.

Mike is predominantly involved in the design, development and worldwide marketing of footwear, apparel, equipment and accessory products. (Olsen, 2011). It is said to be one of the world’s foremost provider of athletic shoes and apparel, (Sage, 2008). As well as a principal manufacturer of sporting equipment. As of 2012, Mike had more than 44,000 employees, not including service providers, retailers, shippers and manufacturers. It is reported that by the end of its 2012 fiscal year Mike has amassed profits of over $24. 1 billion, and in 2014 Mike was valued at $billion making it the most valuable sports business brand (Zinnia, 2014).

As examined by Herzog, 2003 Mike has approximately 40% control, in the athletic shoe industry, which is one of the major markets in the U. S today. This is almost double its two closest rivals share put together, Rebook at 12% and Aids at 10%. Mike is the world’s principal shoe company; this is because it’s the world’s most popular brand (McCarthy, 2003). Mission and Vision The mission and principles of Mike, Inc. Operations and retail stores is completely focused on the athletes it serves and the inspiration and innovation Mike products provide to them.

This is clearly evident in their mission statement: ” To bring inspiration and innovation to every athlete* in the world. ” *If you have a body, you Target Group The Mike customer has an average age of 25; most likely they either already have an active lifestyle or wish to embark upon one. Mike shoes are predominantly aimed at 15-35 year old males and females, most particularly the fashionable 18-24 year olds with loads of disposable cash. (Marketwise, 2002). More recently Mike has focused marketing its products towards the wealthy teenage demographic.

Mike understands that potential for growth with this market is vast, 12-24 year old young adults are the states growing market segment since the baby boom of post World War II (Fussiest Media, 2001). As of 2011, there were million 10-24 year olds, this number growing exponentially, and 19. 5% faster than the overall population of the U. S, with approximately $billion disposable income annually (Silvereyes Holdings, 2001). Mike recognizes the opportunities to be gain from this valuable market group, and with more than million teenagers engaged in various sports across the U.

S the intent on utilizing this fact. Although the market for this demographic is unpredictable and confusing, it is shown that teenagers have money; whether its heir own or their parents, and they are more than prepared to spend it. Mike devotes around 1/10th (approximately $1 billion) of its annual profits on marketing to generating demand for its products (Herzog, 2003). Mike tries to encourage customers into purchasing their products using product oriented advertising campaigns created by their many Advertising Agencies most notably Widen+Kennedy.

Throughout the years, traditional promotional tools such as television and magazines/newspapers, have served Mike well but unlike many other companies Mike was slow to fully embrace the e-commerce market and online rumination techniques. When Mike ultimately realized the great potential of the Internet, as it’s a tool which when used effectively can influence and improve the other advertising vehicles for example media advertising, promotions, publicity and sponsorships (Martinets, 1998).

Mike has never invested much in search engines and banner adverts, except for websites of online shopping malls, for example armorial. Com. This as everybody knows that Mike have a website, furthermore nearly all their television adverts have their websites on it. Back in 2000 when Mike wanted to create traffic towards it Bessie they created a combination of an engaging e-commerce-enabled site and a television cliffhanger Jackson, 2001). The first part of the advert was a regular television commercial, but for you to see the finale of the cliffhanger, one would need to log onto the Mike website.

A classic example of Nine’s innovation as this was the first time something like this had ever happened whereby conventional advertising was used to direct viewers to the Internet. Not only did this raise Nine’s previously astronomical brand awareness, it also increased sales and traffic to their website. As discussed by Carton, 2003 the future of online advertising is predominantly about applications rather than adverts. This is due in part to the fact that applications experiences. Over the years Mike has used various sporting celebrities to promote its products, and build on the globalization of the sports culture.

Back in 2012 Mike launched the “My Time Is NOW’ campaign, which had nearly million views online and more recently the 2014 the Mike football: “Winner Stays” which to date has received over million views on Youth, with thousand likes and thousand dislikes. Not to say that Mike campaigns containing non-celebrities are not successful.