What is 'disintermediation' and does it help producers?

Disintermediation is when the intermediates are removed from the distribution channel; a few examples of intermediates are agents, wholesales and retailers. Therefore in that distribution channel there are no intermediates and the products are provided from the manufacturer straight to the consumers, therefore businesses will be required to deal with each customer directly. An example would be is a farm as a manufacturer this is because the goods will be produced there and the customers will be able to visit the farm and collect the products from there or have it delivered to their house.

Disintermediation can help producers in several ways. Firstly it provides the consumer with convenience this is because they will have easy, simple and direct access to the goods and services that are provided by the business. It could also mean that the businesses reputation and profitability will increase this is because they are able to widen their target audience and they can find ways of attracting new customers as well as retaining existing customers hence an increase in sales. It can help create a better reputation because they will be able to develop a good relationship with their customers and gain customer satisfaction and loyalty. It could also imply lower prices this is because the number of processes and transaction that take place in the distribution chain is reduced and the amount of money that has to be provided could be decreased.

Does Internet Marketing enable more effective targeting and segmentation?

Internet Marketing will enable the business with more effective targeting and segmentations this is because it will help the business to identify how much demand there is for the product in the market and it can also allow a business to see if the strategies that they are using is working and giving the results that they want.

Also Internet Marketing can be easily measured, the business will be able to identify how much demand there is for the product in the market. This can be done by the business monitoring how many people are visiting the website and the customers details can be collected easily.

Online shopping when consumers are able to purchase products using the internet. This is also a very successful method as it is used all over the world and most retailers sell their products using this method. The reason for its success is because it is easy and simple to do, it also provides customers with convenience as they can shop whenever they want and they can purchase anything they want to and this is at the comfort of their home. Online advertising has overtaken television expenditure this is because of the advantages that it has and online spending has increased 4.6% to £1.752bn in the first half of 2009, while TV spending has decreased 16.1% to £1.639bn.

Also Internet is a very important part of daily life, an approximate of 70% of 16-24 year old internet users use social networking websites and 37% of 18 -24 years olds have also either expressed their opinion on blogs and websites or become a member.

ASOS.com is the UK’s leading online fashion and beauty store. ASOS.com is a very popular company with an estimate of 4.5 million visitors a month and has 1.88 million registered users. The sales for the year ended in 31 March 2008 was £81 million and they have an approximate average of 220,000 daily visitors, 3.3million shoppers each month and have 1.8million registered users.

At ASOS there are several ways that they use Internet Marketing to help them target and identify new market sectors that they could enter. For example at ASOS they have a blog where customers are able to add their comments and opinions into an open conversation. On the blog customers are able to talk about the products and offers that are being provided at ASOS, they are also other discussions about celebrities and the latest fashion trends. The business will also be able to take suggestions from customers about the new products that they should invest into. They could also take feedback from the customers about the service and product that they are providing and find ways of improving and developing the business.

ASOS also advertise on social networking websites as well like Face book and Twitter. On these websites, ASOS have created an account which customers are able to join and by doing this they will be regularly updated about new products and fashion trends. By joining a social network it will help ASOS to retain existing customers as well as attracting new ones. The customers will also be able to add comments, join in discussions and will be able to send links to other people which can help widen their target audience.

Segmentation:
This allows businesses to develop products and services which will meet the demands of the customers more effectively, this will therefore increase the demand that the customers for the products. The business will have to identify the customer’s needs and wants and look at if they have already met them or what they can do to meet them. There are many types of segmentation these are geographic, demographic and lifestyle.

Geographic segmentation:
This is when the needs of customers in different area’s differ, for example ASOS also have international deliveries as well as delivering to the customers in the UK. Therefore these customers will have different needs in terms of how the package is delivered and how much they will be charged for the service. ASOS will have to ensure that they meet the needs of all these customers so that there will be more demand for their products and services, this will therefore increase their reputation and profitability.

Demographic segmentation:
This is when the needs of customers differ because of demographic factors this includes things like gender, family, age, sex and many other things, for businesses to gain knowledge about this they will look at the family life cycle which shows that sort of things that different families will purchase and be interested in. ASOS will have to take this knowledge into account, and make sure that they target a wide range of customers and make sure that they price their products so that it meets their needs and demands.

Lifestyle segmentation:
This is when the needs of customers differ because of their opinions, values, interest and many other things, to gain this information a business may look at lifestyle segmentation table this will provide them with information about the customer’s choice of products and services, and gives them an indication of what they demand and need. At ASOS they can fulfil the needs and wants of their customers by looking at the customer’s choice, if they are able to fulfil their needs it will help them to increase their sales and will help them to be profitable, and will also give them a competitive advantage.

How does Internet Marketing help towards the achievement of business objectives?

There are many ways that Internet Marketing helps towards the achievement of business objectives. Firstly it allows a business to identify the needs and wants of customers which will then allow them to design their products that will fulfil the customer’s needs. By doing this it will allow the business to develop and improve the service that they are providing and this is good customer service which could allow the business to retain existing customers as well as attracting new customers. By doing this it will help generate an increase in sales and revenue which could be one of the businesses objectives. Also as the business has more money they will be able to invest it into the business and find ways of achieving their other objectives.

Another way that Internet Marketing helps towards the achievement of business objectives is that the business will be able to identify their strengths and weaknesses and therefore find methods of improvement and see if they are on target or not. Another way that it can help towards the achievement of objectives is that the business will be able to identify the competitive advantages as they can see who their competitors are and what they are doing. By doing this the business will be able to develop new precise objectives and aims.

Objectives are things that the business has to do in order to achieve their aims, a business would have many objectives and they will be more precise and specific targets.

ASOS's objectives are:

To provide uncompromising presentation

ASOS are a click business which means that they will provide their goods and services through the internet only and there will be no stores for the customers to visit. Therefore for ASOS the website will be the method of communication that they will use to provide thier products and they will have to ensure that the website has lots of information and has good presentation. They will also have to ensure that the website is regularly updated and is easy and simple for the customers to use.

The presentation of the ASOS will help them to achieve thier objective in several ways this is because it is the only place that the customers can visit and the business will have to make sure that the presentation is good so that customers can return for repeat business and it could also help attract new customers. Also the layout and design of the website represents the business and their interest in customers. If the presentation is good the customers will know that the business has concern for them and they are doing as much as possible to gain customer satisfaction, it could also provide them with an competitive advantage.

At ASOS there is several way that they use internet marketing to help improve the presentation of their website. For example on the ASOS website customers are able to view many images of the products that they sell, however they are also able to rotate the images which means that the product can viewed in different angles. The images can be zoomed which will give the customers a close view of the product and there are also images of the products on the models. The products can also be viewed as videos on the website. They have videos of the model on a cat walk with the product, by doing this it provides the customers with a better view of the product and it will provide customers to a similar shopping experience to what they would get if they were shopping down a high street.

They also have a banner which is located at the top of the website, this banner is constantly changing every few minutes, and it includes advertisements for other business which the customers can click on and will be taken to another website. It also has a link for the customers to check how many product they have in their basket and other information like help and contact. The banners are a method of promotion as they are making customers aware of the offers and promotions that the business is providing. This is because the banner is a multimedia resource which makes the website more appealing, easy, and convenient.

Incredible choice

At ASOS they have an approximate average of 220,000 daily visitors, 3.3million shoppers each month and have 1.8million registered users. Therefore for ASOS to always ensure that they retain these customers as well as attracting new customers they must ensure that they provide their customers with a wide range of products. By providing the customers with more choice it will provide them with an competitive advantage and help them to maintain a good reputation. At ASOS they try to provide their customers with 30,000 options for the Autumn/ Winter season and this includes their own label and branded products.

At ASOS they have a wide range of brands for both men and women. For women some of the brands include Barry M, Coast, Roxy, Vila and many others. For men some of the brands include Ben Sherman, Calvin Klein, Levis and several others.

At ASOS they also have a wide range of products that are provided for example they sell clothes, footwera, cosmetics and several other things. They also provide customers with a choice of delivery options like saturday and nominate yourday delivery, by doing this it will provide the customers with good customer service and convenience.

By providng products from a wide range of brands it can help attract a wide range of customers who have different financial situation, it can also help to gain customer satisfaction as it meets their needs and wants. It can also provide ASOS with an competitive advantage as they will be able to provide more products which can meet the needs of a range of customers as they have more choice and therefore will be more willing to shop there. This means that it will attract more customers to their business rather than the competition like Brand Alley and any high street retailers.

Delivering impeccable service

As ASOS are a click business and sell all their products online they will have to provide the customers with goods by delivering it to the customers address. Therefore this objective focuses on the delivery options that they are providing customers. They want to ensure that the customers have a wide choice and are able to meet the customers needs.

At ASOS there is a wide range of delivery options that they providing, by doing this it will help to meet their objective as it is a good method of customer service which will allow them to gain customer satisfaction. It will also provide the customers with an easy and simple shopping experience and this could be a method of promotion as they will return for repeat business and may reccomend the business to other people. It could also help them to attract a wide range of customers including those whom are not in their target group by doing this it will allow the business to expand and provide them with an competitive advantage.

The delivery options and services that are provided by ASOS. For example next day delivery and there is an cut off time of 6pm, this means that if the customers don't recieve the products by 6pm they will recieve it in the following days. The other delivery options include Saturday delivery, standard deliveries is aimed to reach the customers in 2 to 3 days, weekend orders are delivered on Monday and the customers are also able to nominate the day of delivery.The customers will also recieve emails and texts to inform them about their deliveries and 85% of the orders can be tracked. The customers are also able to contact the customer care department which is available 24/7.

Unquestionable value

ASOS stands for as seen on screen and this is what attracts most of their customers. As the customers are able to wear products similar to what celebrities have worn but at affordable prices. By selling clothes at low prices it will help the business to attract a wide range of customers as it can meet the needs of their financial income.

At ASOS they have a reasonable pricing strategy, however some of their products are expensive. The price depends on what sort of product that the customer is purchasing. Most of the products are sold are similar to what celebrities have worn but sold at cheaper, affordable prices.

Internet Marketing helps ASOS to achieve their objective in many ways. Firstly if there are sales and promotions this information is placed on their website and emails are sent out to those customers who are registered with them. ASOS have also developed an retailing concept which is ASOS outlet.This website includes end of line and previous season products at discounts up to 75% off.

What are the benefits of Internet Marketing to an organisation?

There are several benefits that Internet Marketing has on a business.

1. Firstly it allows a business to identify the needs and wants of customers which will then allow them to design their products that will fulfil the customers needs. Therefore it will have an impact on the businesses reputation and profitability.
   


2. Internetmarketing is cost effective as businesses will not have to worry about any travel, postage, printing or any other costs and it is cheaper compared to traditional marketing.



3. Internet Marketing can be easily measured. The business will be able to identify how much demand there is for the product in the market. This can be done by the business monitoring how many people are visiting the website.



4. Internet marketing is quick and easy, the advertisement can be set up quickly and can be placed on the internet within hours, also if any changes need to be made it can be done immediately .



5. Internet Marketingcan include more graphics and a wide range of multimedia which would make the advertisements more appealing and attract more customers.



6. Internet marketing can reach more people this means that the business can retain their existing customers as well attracting new ones.



7. Internet marketing can also help identify the businesses competitive advantage as they can see who their competitors are, and what they are offering to the customers and it can also help a business to see if the strategies that they are using is working and giving the results that they want.

Does Internet Marketing contribute to or highlight the need for effective indentification of new product/market development opportunties?

Internet Marketing is when a business uses market research to help identify the needs and wants of their customers, which will gain the customers satisfaction and loyalty and this will therefore increase the business and profitability. It also ensures that the service or product provided suits the market.

Internet Marketing will also allow the business to see how much demand there is for the products that they are selling and by looking at this factor it can help them identify any new product market they should enter. A business will also be able to see their strengthes and weaknesses and therefore find method of improvements which could help develop the service that the business is providing.

At ASOS they use Internet Marketing in several ways which can help them to identify new markets that they could enter and they can also find ways of attracting more customers. For example at ASOS they have a blog where customers are able to add their comments and opinions into an open conversation. On the blog customers are able to talk about the products and offers that are being provided at ASOS, they are also other discussions about celebrities and the latest fashion trends. The blog is a method of communication which enables the business to have conversations with their customers as well as the customers having conversations with other customers; this will therefore create a good relationship and will help gain customer satisfaction. The business will also be able to take suggestions from customers about the new products that they should invest into. They could also take feedback from the customers about the service and product that they are providing and find ways of improving and developing the business.

What are the 7 p's and how does ASOS use the 7 p's?

Marketing mix is different factors that a business uses to help meet its marketing objective which will therefore allow the business to provide their product or service to the market. There are seven main factors which are known as the 7 P’s, these are product, price, place, promotion, people, process and physical evidence.

Product:Products are the goods or service that the business is providing to attract their customers. Businesses will have to ensure that they can provide a wide choice to there customers. There are also other factors that the business will have to think about like branding, packaging, quality and many other things.

At ASOS they sell a wide range of branded products which are similar to what has been seen on celebrities. They sell clothes for men and women and this includes items like footwear, coats, shirts and several others. They have also recently introduced a new line of children clothes which is known as little ASOS and also sell branded beauty products like Bourjois. Although ASOS as operating from online they sell similar products to what can be found in high street stores however they still sell high quality products at low affordable prices.

Price:Price is the amount of money that a customer will have to pay to the business for the service and products they have received. Businesses will have to ensure that the price they charge their customers is a reasonable prices so both the customers and the businesses are happy.

At ASOS they have a reasonable pricing strategy, however some of their products are expensive. The price depends on what sort of product that the customer is purchasing. Most of the products are sold are products which are similar to what celebrities have worn but sold at cheaper, affordable prices. The main difference between the high street stores and ASOS is that there is a delivery charge. Currently 7% of the users make a purchase with an average basket size of £39.32 to £48.80. At ASOS they have regular sales when the products are reduced by 50% or more and these products are sold in the ASOS outlet section of the website.

Place: Place is where & how the customers can use the service that is provided by the business. The business will have to ensure that they are in the right location & will have to consider things like distribution channels, they will have to ensure that a wide range of customers have easy access to the business, market coverage & many other things.

ASOS are a click this means that they provide the goods through the internet only. This means that there will be no stores for the customers to visit and they will have to log onto the website to look at the products and to purchase them. The business will have a warehouse or some other facilities where the products will be kept and the products will be sent from here. ASOS.com delivers their products to customers all over the UK and there is a delivery charge for this, however in some occasions the delivery charge is not applied.
They have a head office which is located:
Greater London House
Hampstead Road
London
NW1 7FB
UK

Promotion:Promotion is the way that a business promotes itself to make the customers aware about what products and services they are providing. There are many methods of promotion these include, advertising, promotion, public relations, personal selling and many more.

ASOS.com attract customers by always having a range of promotions like discount codes. They also advertise by promoting the business may sending registered customers with emails regularly with information about new products and sales. Also once a customer has purchased from the website they recieve leaflets and booklets in the post and ASOS also advertise in magazine. The main method of promotion is their website. It includes information and images of the products. There are fashion blogs which include information about the latest fashion trends and news about celebrities, and cat walk model videos of products that are being sold on the website. ASOS also advertise on social networking websites as well like Face book and Twitter. On these websites, ASOS have created an account which customers are able to join and by doing this they will be regularly updated about new products and fashion trends.

People:People are the employees that work for the business, without the employees the business will find it difficult to operate as they complete the day to day running tasks. The employees represent the business and must ensure that they provide good customer service as it will help to promote and the sell the product or service. Therefore the employees will have to ensure that they are knowledgeable, friendly and are dressed appropriately.

At ASOS the way that the employees provide customer service is different to what is provided in stores. This is because it is not face to face it will either be through the phone or email. These employees will have different skills and they will be required to deal with any problems that the customers has and may also be required to work in the warehouse and make sure that the right goods are sent out. ASOS will also have employees that have good web designing and marketing skills they will be in charge of monitoring and controlling the website. At first they started they only had 47 employees and now they are employing 250 people. This also shows that the business is growing and therefore more employees are needed. The employees are needed for the human and physical resources department as ASOS have had a 90% sale increase over a 12 month period.

Process:Process is the procedure that takes place from when the customer is interested in a product or service to when the customer completes a transaction. A business must consider the following things in their process: procedures, controls, accessibility, information flows, payments, booking, speed and time of delivery.

At ASOS the shopping process is different in comparison to shopping at an high street store. This is because the customers are not able to feel or try on the product, they are only able to view the images that have been placed on the website. The products that they wish to purchase will be kept in an basket and then the customer will have to pay by using credit card and this will go through secure technology like gateways. Then the customer will have to wait to recieve their goods via post.The customers will not recieve face to face customer service and if they need help they can leave feedback or look at the FAQ section of the website, this is therefore a different process to what would take place in stores.

Physical evidence:Physical evidence is the image of the service and product provided to the customers. When customers purchase a product or service they must have physical evidence that the transaction has taken place for example receipts. The physical evidence will also include things that represent the business like facilities e.g. building and layout.

ASOS are a click business which means that the operate from the internet and there is no store for the customers to visit, therefore there is no physical evidence. The physical evidence that the customers will have is the reciept that they recieve with the products that they ordered. At ASOS there main concern will be the apperance of the website, they will want to ensure that it is easy and convenient to use and it is regularly updated.

How does ASOS use Internet Marketing?

ASOS use several methods of internet marketing to help promote the business and to attract a wide range of customers. Firstly at ASOS they have a banner which is located at the top of the website, this banner is constantly changing every few minutes, and it includes advertisements for other business which the customers can click on and will be taken to another website. It also has a link for the customers to check how many product they have in their basket and other information like help and contact. The banners are a method of promotion as they are making customers aware of the offers and promotions that the business is providing. This is because the banner is a multimedia resource which makes the website more appealing, easy, and convenient. It is also eye catching which means that it could draw the visitors attention to other sections of the website that they are interested in, this could lead to ASOS having an increase in sales.

At ASOS they have a blog where customers are able to add their comments and opinions into an open conversation. On the blog customers are able to talk about the products and offers that are being provided at ASOS, they are also other discussions about celebrities and the latest fashion trends. The blog is a method of communication which enables the business to have conversations with their customers as well as the customers having conversations with other customers; this will therefore create a good relationship and will help gain customer satisfaction. Blogs are widely used, so many customers will be used to this sort of system and this therefore means that the business will be able to attract a wide range of customers. By creating a blog it will have many advantages for ASOS as they will be able to find out feedback and suggestions from the customers, this will help them to develop the business. Also blog’s are easier to create and maintain, and there is unlimited space so customers can continuously place their comments on the website.

ASOS also advertise on social networking websites as well like Face book and Twitter. On these websites, ASOS have created an account which customers are able to join and by doing this they will be regularly updated about new products and fashion trends. The customers will also be able to find out information about new sale events or promotions. The customers will also be able to view the products this is because images and videos can be placed on the web page. By joining a social network it will help ASOS to retain existing customers as well as attracting new ones. The customers will also be able to add comments, join in discussions and will be able to send links to other people.

On the ASOS website customers are able to view many images of the products that they sell, however they are also able to rotate the images which means that the product can viewed in different angles. The images can be zoomed which will give the customers a close view of the product and there are also images of the products on the models. The products can also be viewed as videos on the website. They have videos of the model on a cat walk with the product, by doing this it provides the customers with a better view of the product and it will provide customers to a similar shopping experience to what they would get if they were shopping down a high street, therefore they are provided with a competitive advantage.

Another way that ASOS use Internet Marketing is that the customers are able to view the ASOS catalogue online.They have a PDF magazine which is over 200 pages and includes images of the products which are on sale; it also includes information about different offers and promotions. The catalogue is separated into sections for example men and women. The customers are able to email the catalogue to friends and family, and are able to request a copy of the catalogue to their home.