Apa style dissertation e marketing the new way to make money-an investigation using a large commercial retailer (asda)

E-Marketing

E-MARKETING: THE NEW WAY TO MAKE MONEY? AN INVESTIGATION USING A

LARGE COMMERCIAL RETAILER (ASDA)

Name:

Grade Course:

Tutor’s Name:

(06 February 2011)

E-Marketing 2

Table of Content

1.0 Introduction..............................................................................................................................5
1.1 Project Context and Background of the Study.......................................................................8
1.2 Audience for the Evaluation..................................................................................................9
1.3 Statement of the Problem.....................................................................................................10
1.4 Rationale..............................................................................................................................12
1.5 Research Questions..............................................................................................................13
1.6 Research Aims and Objectives............................................................................................14
1.6.1 Aims..............................................................................................................................14
1.6.2 Objectives.........................................................................................................................14
1.7 Scope and Definition............................................................................................................15
2.0 Literature review ..................................................................................................................16
According to the statistics that have been done by the New York time that show the level of
the accessibility of e-marketing among those company that are using this method shows
that very many customers are able to access these. The number of customer visiting these
sites is proportion to the number of people who buy online making such companies to earn
a lot of money. Considering four companies in United States including Wal-Mart which
control Asda Store Limited in England, the New York times found that e-marketing makes
at least two thousand five hundred data collection per user per month. This shows how
successful e-marketing is in terms of advertisement and response to the customers.
Therefore, this increases the turn over of the company to almost four times the previous
one.................................................................................................................................................16
E-marketing is of various systems and this will ensure that the company concerned is able
to choose on the relevant method to use for their business enterprise in the pursuit of
making money. The following are some of the examples that are currently in use and the
Asda store limited can adopt as they expand their e-marketing and in pursuit of capturing
5% of 1.9 billion market sterling pound by 2012......................................................................17
B2B (Business to Business) E-marketing...................................................................................17
B2C (Business to Customer) E-marketing................................................................................17
The Asda as the company that provides such system of commerce will have to provide
websites with visual storefronts and electronic catalogs showing all the prices and the color
of their goods and the services they offer. This sis to ensure that their customer is able to
get the real picture of the product they offer before they place orders. They should also

E-Marketing 3

ensure that they have interactive order processing to ensure that they connect their
potential customer with their services when required. They will have finally to ensure that
their electronic payment systems are secure and they are capable of supporting online
customers incase of any issue that may occur during the transaction. By this, they are able
to ensure that they create interaction with customers increasing their sales and making
more money for the company.....................................................................................................18
B2E (Business to Employees) E-marketing...............................................................................18
C2C (Customers to Customers) E-marketing...........................................................................19
This system allows the customer to sell and buy from each other. As the case of the Asda
Store Limited, they are capable of buying and selling to retailers of the same capacity as
they are by using this system. The system will bring to them unknown and un-trusted
parties together to sell goods and services to another. The method that has been used in this
is the EBay. ..................................................................................................................................19
Through this method, the customers are able to rate each other making prospective buyers
to know a certain person who has sold certain goods to many people, thus, know the most
preferred goods in the market. Asda will be able to evaluate themselves from their current
position in the market, as other customers will rate them according to the goods that they
have bought from them. This will make them to put appropriate strategies to arrive at their
objective by bulk sale. This will in turn make them get high sales turn over increasing their
business.........................................................................................................................................19
E-marketing method....................................................................................................................19
Advantages of E-marketing.......................................................................................................21
Accessibility...............................................................................................................................21
Provision of timely information.................................................................................................21
Customers confidence increase..................................................................................................22
Transaction medium...................................................................................................................22
Low establishment cost..............................................................................................................23
3.0 Methodology...........................................................................................................................26
3.1 Research design...................................................................................................................26
3.2 Population and sampling procedure.....................................................................................27
3.3 Data collection methods.......................................................................................................28
3.3.1 Primary sources...........................................................................................................28
3.3.2 Secondary source.........................................................................................................30
3.4 Data analysis and presentation.............................................................................................30

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3.5 Scope and limitation............................................................................................................31
3.6 Ethical consideration............................................................................................................33
4.0 Results and Analysis..............................................................................................................35
5.0 Discussion...............................................................................................................................38
6.0 Conclusion..............................................................................................................................46
7.0 References...............................................................................................................................49

E-Marketing 5

E-Marketing: The New Way to Make Money? An Investigation Using a Large Commercial
Retailer (ASDA)
1.0 Introduction

The digital age and technological advancements have brought new ways of life, earning,

working but more interesting and important is the new way to make money. With the

transformation of the world to a global village the ways of doing things have changed with the

changing times and business has mostly benefited from the expanded markets. This has ensued

extensive competition which in return has brought about new methods of trading so as to make

more sales and remain afloat (Chaffey, 2006). E-marketing is a major invention in the world of

business since it has brought about efficiency, greater targets, and has made businesses go

beyond borders.

The increase in online trading in the world today has necessitated new ways of marketing

to attract and retain customers as a way of surviving and positioning in business. With a click of

a button then one is assured to trade at home and get a variety of goods (Albee, 2009).

E-marketing utilizes electronic media to carry out marketing activities and achieve the

objectives of the company. E-marketing include; internet marketing, mobile marketing,

interactive marketing. Giant retails chains have adopted the new marketing style so as to remain

competitive and sustainable. Retails shops such as Tesco, Walmart, Sainsbury and Asda have

adopted the marketing style which has made them increase their sales tremendously. The social

networks have aggravated the sales due to numerous people getting involved in such sites.

Asda is a large commercial retail supermarket operating in the UK where is has

approximately 17% of the market share in 2009. This means that it has competed effectively with

the market leaders Tesco. Asda has employed an efficient marketing strategy to survive in the

changing competitive market of UK. Established in 1949 its operations have remained

E-Marketing 6

competitive especially in the most competitive sector of retail chains and seen the light of day in

the twenty first century which is characterized by the digital age (www.asda.com). Going hi-tech

has been the mode of many business and many people trade online therefore creating a rich and

vibrant market for the companies that offer better e-marketing products and services.

According to Stokes (2008) technology has also expanded the horizons for the businesses

since they are able to have efficiency and effectiveness in trading since the trading response is

instant. In tapping such potential retail giants have increased their market share and have the

loyalty of the customers. The store images and positioning for the retail market operators has

been enhance since with the more clicks and sales they get they improve their image and attract

more goodwill from potential customers.

A business is able to distribute information about itself and the products it trades in; it

also uses the internet as a means to relate to the customers and also maintain the relationship as

stated by Krishnamurthy (2006). The customers can be tracked and responded to appropriately to

ensure they are happy with the service and recommend other clients. The business is also able to

ensure that trading can be done online where they establish websites that will aid in the

marketing. The trading must also ensure that the funds to be involved in the trading are

safeguarded and that it is done effectively and efficiently (Smith et al. 2002). The websites are

also designed to attract and retain potential customers who can sign up and become members.

In order to have a successful e-marketing strategy the company needs to have effective

auditing, objectives, strategies, tactics, and controls measures. In the audit the marketing plan

should be able to expose the strengths and weaknesses, opportunities and threats and be able to

capitalize on them to make it effective (Chaffey, & Smith, 2008). The objectives should be smart

to ensure maximum business and growth and sustainability of the business. The tactics should be

E-Marketing 7

strategic and involve an e-marketing mix for the success of the business. The control should be

able to take charge in measuring the performance of the plan and be able to change any negative

effectives.

Asda as a case study will help evaluate the extent of e-marketing strategies that have been

applied by the large commercial retailers. Benefits from the strategy are worth identifying

especially those got from a web audit including pay per click adverts, email marketing, text link

adverts, website designs, and online magazines. Asda as a large commercial retailer has

continued to withstand competition in the UK market especially from Tesco and Sainsbury. Its e-

marketing strategy has been identified as a way to explain the effectiveness and benefits of e-

marketing. It helps to analyze the advantages and disadvantages of the systems and other ways

to increase sales and consequently profits (Smith et al. 2002). Asda deals in a range of products

and services including; household goods, electrical products, entertainment, books, furniture,

gifts, groceries, music and games among other. This means that it is an all in one shopping spot

for all customers interested with a range of products and services on offer. There is also delivery

of orders to their clients that makes the marketing strategy appealing and attractive to many

customers (Chaffey, & Smith, 2008).

The industrial and competitor analysis in the retail market is mainly dealt with including

the e-marketing mix for instance, the product, price, promotion, and distribution. Geographic’s

and company structure, and Geographic’s and psychographics in the market will be identified

and the positioning and store image among the existing and potential customers (Krishnamurthy,

2006). The study includes a macroeconomics examination e.g. political, economic, social,

technological and environmental condition of the strategy of e-marketing.

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A website audit is very essential where website usage, and navigation, layout of the home

page and the website browsers, easiness of obtaining information search engine optimization

identified will be essential in the investigation of the new ways to make money in the digital

world.

1.1 Project Context and Background of the Study

Marketing has been a very effective strategy in the world today since it has driven the

most important part that provides revenue to the business. With effective marketing strategies the

business is able to expand its revenue through numerous sales. Marketing is a process where the

business is able to research the market, sell the products and services through various plans to

augment sales. The need for marketing in any business cannot be compared with other

departments since it is vital and revolutionary (Chaffey, & Smith, 2008). Good marketing

strategies when be implemented effectively ensure that the business is able to earn a market

share and position itself in the market. E-marketing on the other hand is an improved method of

the manual marketing strategy which forms the basis of the study. Marketing has been used to

generate sales tactics, business development, and business communication. Retail chain shops

have been caught up with stiff competition in the markets; the need for a renew strategy that

makes them profitable. They have resulted to e-marketing as a remote technique in reaching a

massive number of clientele as a way to make sales and also attract more customers. They have

aimed to create a store image for themselves and an effective way to reach their customers. In

view of the fact that marketing strategies has created a new way of shopping in the digital age

and that they have created a way to rejuvenate their sales it creates a background of the study.

The study builds on the issue of e-marketing, how it operates, when it is best, and the logistics

involved in its implementation, and the fruits that will be reaped from the strategies.

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Marketing will involve make out the customer, gratify the customer and most of all retain

the customers persuaded. The concept of e-marketing has enable retain chains to achieve their

objectives of large volumes of sales, and built on the strategies for success and great profitability.

The aim of e-marketing is to target a mass market where they are concentrated and using ways

that they easily understand and are convenient to them. The clients nowadays have been

concentrated in the internet where social sites and company websites are visited frequently

(Smith et al. 2002). Tapping such an extensive market will ensure volumes of sales and such

concepts have been applied by online selling companies where products and services have been

traded online. In tackling the topic ‘E-Marketing: The New Way to Make Money?’ The study

unveils the concept of e-marketing and how businesses can be able to apply it and be successful.

It conducts an Investigation Using a Large Commercial Retailer, in this case Asda and the way it

has applied the strategy and benefited from a large client base.

1.2 Audience for the Evaluation

The study critically evaluates the Asda retail giant on its implementation of the e-

marketing strategy in their quest to compete with rival chains such as Tesco and Sainsbury. The

previous, current as well as future marketing strategies are evaluated so as to help understand the

concept and help in recommending the best way forward for other businesses. E-marketing is

also evaluated where the strengths, weaknesses, opportunities and threats are analyzed. The

strategy’s advantages and disadvantages are evaluated so as to make sure the strategy applied is

clearly known to the implementers and potential users. The processes involved in e-marketing

from the identification of the customer to the satisfaction of the customer till the point of sale

where customers make the payments are analyzed to ensure that the system is clearly understood.

This will help in making any required adjustments to the strategy that will improve the strategy.

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1.3 Statement of the Problem

For any business satisfying the clients is a major objective so that they are able to attract

more and retain the already existing ones. With an efficient and effective marketing strategy this

is possible even to the extent of positioning and establishing a store image for the business. This

will make the business grow and become sustainable. It will ensure that it has a competitive

advantage over the other businesses and be envied for its success and establishment (Stokes,

2009).

Businesses have evolved in terms of their marketing strategies in terms of their

orientation and profit drivers over time. At some times the strategy may be on the production

where they aim on the production methods to provide the profits to the business. Others focus on

the products where they focus on making quality get the profits for the business. Businesses may

also focus on selling the products where the methods of sales will determine the sales made by

the business. In addition, marketing has been used as an orientation where the businesses focus

on the needs, wants, and satisfaction of the customer. Marketing has been applied by many

businesses today in a bid to make themselves known and creating a market niche.

Business have realized that in order to be at a competitive advantage they must focus on

making the customer satisfied not only through the quality, production process, or selling but

also through treating the customer as the king. This makes the customer feel appreciated and

important hence attracting him and many more to the system. So as to achieve this, marketing

strategies for instance e-marketing are applied by the business. The viability of the strategy of e-

marketing is the subject of study in this research; this means that the businesses in question are

evaluated especially with the invention of the internet and the numerous developments of online

trading. It focuses on the large commercial retailers since they face a lot of rivalry from other

E-Marketing 11

companies in their quest to build themselves and establish a niche in the markets and a store

image (Stokes, 2008).

The study investigates the relationship marketing, business marketing, social, and

branding orientation of the e-marketing strategies and how they are able to operate and become

large commercial retailers. The whole operations must be identified and critically evaluated so

that businesses intending to pursue this strategy may have the background information on how

larger commercial retailers made it in the market.

Asda has been identified since it has become very successful through the e-marketing

strategy which once proved to be negative to the management but with more emphasis it grew to

make large volume of sales. ASDA has been able to establish an online trading system where

customers can shop right at home at their convenience and at the best rates conveniently. The

products involved include electrical products, furniture, sports and leisure equipment, jewels and

watches, gifts and party stuff among other.

The problem of the study is to identify the best strategies of e-marketing and make them

apply to other businesses that would like to implement such strategies. It identifies the Asda’s

strategies as a large commercial retailer and some of those applied by their rivals such as Tesco,

Sainsbury, Waitrose and Ocado. Through the identified strategies the application in the actual

process and the methods of implementation are evaluated; this will involve making purchases

through the retailers and talking to customer support to establish the products and modes of

trading. Asda’s history will be unveiled and analyzed so as to understand the current position and

their numerous campaigns and advertisement efforts to woe customers to their sites. The

industrial and competitor analysis will also be done as well as the e-marketing mix i.e. the

product, price, promotion, and distribution.

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The current target markets data which includes Geographic’s and company structure, and

Geographic’s and psychographics in dealing with the markets will be identified. It also identifies

the positioning and store image among the existing and potential customers, together with the

macroeconomics for instance the political, economic, social, technological and environmental

condition of the strategy of e-marketing. In order to have a comprehensive research a website

audit is necessary where the website usage, and navigation, layout of the home page and the

website browsers will be identified. In addition, the easiness of obtaining information, the

costing of the website and search engine optimization and the presence of information that is

outdated will be inspected in the sites.

The marketing strategy will involve identifying the objectives, vision, mission and

method of segmentation, i.e. positioning and differentiation. In the evaluation of the financial

benefits the budget analysis will involve the use of pay per click adverts, email marketing, text

link adverts, website designs, and online magazines; this will indicate the contingency plan

adopted by the business.

1.4 Rationale

‘The New Way to Make Money’ drives the theme of the research where the development

of e-marketing has been identified and is being evaluated if in deed it is an appropriate way to

conduct business. The major aim of businesses is to make profits which are generated from sales;

the more the sales the higher the revenues in a business. The study tries to build on the

advantages of e-marketing such as cost reduction through use of electronic media, quick and fast

responses, and high interaction among others as a way to evaluate the strategy of e-marketing

(Smith et al. 2002). It takes in to consideration large commercial retailers since they offer

numerous products and are easy to identify.

E-Marketing 13

The benefits versa vice the risks involved are evaluated to approve the e-marketing

strategy. The use of web audit, e.g. website usage, and navigation, home page layout and the

website browsers identification, updating of information, the easiness of obtaining information,

the costing of the website and search engine optimization; customer support and budget analysis

e.g. pay per click adverts, email marketing, text link adverts, website designs, and online

magazines are done to establish the costs and benefits and identify the actual situations.

Asda is used as the case study in the evaluation where it is evaluated against its rivals

such as Tesco, Sainsbury and Morrisons. Asda marketing strategy in e-marketing and its

adoption from Wal-Mart is identified among other ways it uses to market itself including the

social networks in the internet. The Asda website is also visited and analyzed appropriately

where even buying is done and the customer care contacted.

The going through the process of buying will be important in having the first hand

information on the products and services provided by Asda. Social network identifications of the

websites such as the likes on the Asda’s facebook page and the follows on the twitter page will

also assist in identifying the spread of the commercial retail giant strategy. If Asda has been

successful in establishing 17% market share in a very competitive UK market with the help of e-

marketing then the rationale is to evaluate its viability as the new way of making money.

1.5 Research Questions

To investigate the extent to which e-marketing has been applied in the large commercial retailers

To investigate the effects of e-marketing on customer behavior and how it enhances the

knowledge of the product

To investigate e-marketing strategies applied by ASDA e.g. online advertisements, e-mails, web-

casting and online social networks and communities.

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To investigate the impact and contribution of e-marketing to ASDA

To conduct a web audit on the ASDA website

To investigate the efficiency and effectiveness of e-marketing as applied by large commercial

retailers

To conduct a website budget analysis on ASDA and the strategies applied for e-marketing

To find out if e-marketing has contributed to ASDA’s market share, positioning and store image

1.6 Research Aims and Objectives

1.6.1 Aims

The study aims to analyze the e-commerce strategy in order to establish its viability as a new

way to make money for businesses.

It aims to establish the e-marketing strategy of ASDA and how it has helped the large

commercial retailer achieve increased sales.

It aims to establish the costs and benefits involved in the establishment of a website that is

effective and efficient.

It also aims to evaluate the e-marketing strategy and recommend it to businesses especially

retailers for implementation.

1.6.2 Objectives

To investigate the growth of online marketing services in the commercial retail sector.

To find-out the e-marketing strategy i.e. B2B (Business to Business), B2C (Business to

Customer), B2E (Business to Employees), and C2C (Customers to Customers) applied in the

retail markets.

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To investigate the use of the e-marketing strategy and the adoption of the strategy by the

customers

To investigate the impacts of e-marketing strategy on the consumer purchasing behavior and the

way it improves the knowledge of the product.

1.7 Scope and Definition

The study encompasses the issue of e-marketing and focuses on the large commercial

retailers. A case study of ADSA is analyzed to help identify the operation and management of

the strategy and how it helps in making money. Online trading is incorporated as an example to

explain the market performance, effectiveness and efficiency. The advantages and disadvantages

of e-marketing are identified which helps the business to evaluate whether to adopt or postpone

its implementation.

E-marketing is the achieving marketing objective and functions through the use of

electronic communication technology or the internet. The development of information

technology and the internet and its adoption in businesses such as Wal-Mart and Tesco is

identified as a major factor towards their success. The contribution of e-marketing to the growth

and development of a business is emphasized in the study. Electronic marketing is a modern way

of transacting i.e. buying, selling, tendering for goods, services, information and ideas through

the internet. The study investigates the use of E-business, E- Commerce, E-marketplace, Mobile

marketing and Electronic platforms in the retail markets.

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2.0 Literature review

E-marketing can also be referred to use internet marketing, digital marketing, and web

marketing, or online marketing (Godin, 1995). This is a form of marketing of goods and services

over the internet in pursuit of covering a wide range of market in order to make more money for

the business.

It is a wide scope of market as it involves all the marketing procedure that involves email,

electronic customer relation management (ECRM) systems and wireless media. These are all

classified as E-marketing. E-marketing is done through technical integration of internet concepts,

development of the designs of sales as well as advertising and selling process. It also involves

placing of media in different sites in conjunction with customer engagement cycle to ensure that

they are in direct contact with them. This is made possible by search engine marketing (SEM),

search engine optimization (SEO) specific websites among many strategic sites to ensure that

customers are able to access such sites (Chaffey & Smith, 2008).

According to the statistics that have been done by the New York time that show the level

of the accessibility of e-marketing among those company that are using this method shows that

very many customers are able to access these. The number of customer visiting these sites is

proportion to the number of people who buy online making such companies to earn a lot of

money. Considering four companies in United States including Wal-Mart which control Asda

Store Limited in England, the New York times found that e-marketing makes at least two

thousand five hundred data collection per user per month. This shows how successful e-

marketing is in terms of advertisement and response to the customers. Therefore, this increases

the turn over of the company to almost four times the previous one.

E-Marketing 17

E-marketing is of various systems and this will ensure that the company concerned is able

to choose on the relevant method to use for their business enterprise in the pursuit of making

money. The following are some of the examples that are currently in use and the Asda store

limited can adopt as they expand their e-marketing and in pursuit of capturing 5% of 1.9 billion

market sterling pound by 2012.

B2B (Business to Business) E-marketing

This involves supply chain technology that involves using of the internet technology in

buying and selling of goods and services from one business sector to the other. In this form of E-

marketing, there is involvement of the electronic business market place as well as direct links

between the businesses that are transacting together. Through this method of commerce, Asda

Company has the ability to secure internet and intranet of their customers and their suppliers to

ensure that they transact their business with ease.

They are also supposed to offer electronic data interchange with their business partners

and suppliers through the internet or intranet to support computer-to-computer document

exchange. In this system, Asda stores limited is able to implement its business to its established

trusted working relationship between each other. By using this method of E-marketing system,

they are able to increase their sales turnover increasing the profit (Godin, 1995).

B2C (Business to Customer) E-marketing

This system helps the customers to buy the goods and services through the wed from the

retailers as Asda store limited through the adverts posted in the web. The transaction usually

happens to an unknown people who the business cannot have a capacity to trust them very much.

Therefore, more effort should be put in place to ensure that the company is able to capture more

comprehensive and relevant information from the buyer before any transaction is made. The data

E-Marketing 18

of the customer who is buying online is taken and verified before orders are fulfilled to avoid any

discrepancies. This makes this method to be a little tedious to deal with as compared to B2B

system.

The Asda as the company that provides such system of commerce will have to provide

websites with visual storefronts and electronic catalogs showing all the prices and the color of

their goods and the services they offer. This sis to ensure that their customer is able to get the real

picture of the product they offer before they place orders. They should also ensure that they have

interactive order processing to ensure that they connect their potential customer with their

services when required. They will have finally to ensure that their electronic payment systems

are secure and they are capable of supporting online customers incase of any issue that may

occur during the transaction. By this, they are able to ensure that they create interaction with

customers increasing their sales and making more money for the company.

B2E (Business to Employees) E-marketing

This is a system where by the employee are able to do requisition of supply with the

company online within the capacity of his/her job. The employees are able to requisite what they

require in their place of work without involving so much human resource. The order they place

can be checked electronically and the supervisors are able to control the requisition especially in

the time that they exceed the normal ones online.

The system help the employees to access their counterpart records and update them

appropriately. According to Smith, et al 2005, the system is used internally by the employees in

the company, has little to do with the commerce but help in fast executing of business idea, and

ensures that certain delivery is made faster than it could have been done in a normal case. This

control the amount of resources used in the company and hasten the logistic issues shortening the

E-Marketing 19

length of communication in the company and transportation of the required materials hence

shortening lead time required for the product to be delivered. This process will ensure that the

Asda Store Limited will decrease their expenses making their low price product slogan to

continue and still earn lots of money in their business.

C2C (Customers to Customers) E-marketing

This system allows the customer to sell and buy from each other. As the case of the Asda

Store Limited, they are capable of buying and selling to retailers of the same capacity as they are

by using this system. The system will bring to them unknown and un-trusted parties together to

sell goods and services to another. The method that has been used in this is the EBay.

Through this method, the customers are able to rate each other making prospective buyers

to know a certain person who has sold certain goods to many people, thus, know the most

preferred goods in the market. Asda will be able to evaluate themselves from their current

position in the market, as other customers will rate them according to the goods that they have

bought from them. This will make them to put appropriate strategies to arrive at their objective

by bulk sale. This will in turn make them get high sales turn over increasing their business

E-marketing method

According to Albee 2009, use of E-marketing will improve on how marketing of goods

and services were initially done by the Asda. According to the research done, E-marketing is

relatively cheap and the channels used are user friendly. Therefore, company will benefit on

inexpensive distribution of information to different virtual locations at the same time,

Information will be accessible by most people online unlike if the advert was placed in the print

media, video or radio. This makes the company’s product to be relatively cheap and thus

affordable by wide scope of customers increasing sales.

E-Marketing 20

They also increase the accessibility of the information of the Asda products to its

customers in relation to the traditional mode of advertisements, which is one time method.

Therefore, tradition methods created a chance of some not accessing it, as it may sometime not

be timely making some people to miss it.

However, by use of E-marketing marketing, the advertisement will always be online as

long as it is updated. E marketing is not limited to geographical region. The E-marketing can be

also be personalized and Asda Stores Limited can as well send their quotation to individuals who

would have prescribed for news update over the website or even forward to email addresses of

the customers who they would be having their contacts (Chaffey, 2006).

Such personalized messages are very effective as the customers feel attached to the

company or business, which keeps on updating them on the offers or new products that they

have. Therefore, by Asda Stores Limited embracing E- marketing, they will enable the customers

to feel that they are stakeholders in their company, thus winning their confidence. Use of E-

marketing will enable the company to keep a lot of information concerning the marketing

campaigns (Stokes, 2009).

This is because they will be able to offer customers opportunities to provide their

feedback online. The feedback collected is essential in guiding them on areas where they should

improve and get to understand the views and opinions of the customers. In return, they will be

able to have intensive plan in delivery of their goods and services and they can be able to

improve their design to meet customers taste and preferences especially in this era of

globalization. By doing all this, they will have created a channel where they are able to dispose

their goods and in turn get appropriate return.

E-Marketing 21

Advantages of E-marketing

Accessibility

According to Stokes 2008, use of E-marketing in advertisements and listing of goods

being sold on the website will enable customers to access Asda goods and services with ease.

They will be able to use online query utilities, which will guide the customers to have fast

contact with the company. When searching, customer will be allowed to narrow the criteria to

select only the goods or service they need.

They will be able to specify on the type of many goods that they will require, when they

require it, the location of their place and the amount of the goods and service they require. With

such ease searching features, Asda company will saves on time and will be able to tackle

customer issues with ease due to receiving comprehensive information from their client. When

the customer gets appropriate service from them, they will always ask for more due to the

efficiency attached therein. This will in turn make the business to grow and expand meeting their

postulated market share by 2012.

Provision of timely information

E-marketing will enable Asda Stores Limited Company to take advantage of the utility in

the website to search, disseminate and organize information, which they have received from their

clients with ease. Information management is very vital to the company, as the management will

use such information to make marketing decisions to meet their plans. The system has high

capabilities of interactivity and the company will be able to provide information promptly on

demand. Marketing, dairy operations of the business and its strategic directions will be enhanced

through the marketing information available from the field through the online means.

E-Marketing 22

The E-marketing method will enable the company to have correct information regarding

the market and are able to change on it with ease as updates can be done promptly (Hart &

Daoust 2006). This will ensure that the customers will always get first hand information from the

company making them budget their purchase appropriately. By this, the company will get

customers boost making money through boom sale of their products.

Customers confidence increase

Online marketing will help the company provide perceptual experience to the customers.

The experience provided is much better and superior to the print media one. The online

marketing will enable them to post such comprehensive adverts as videos and power point

presentation making the customers have a real touch with their services and goods. The quality

of the pictures that can be posted on the internet is higher and less expensive compared to the

printed ones.

Especially with the emergence of technology on daily basis for example High Definition

presentation of graphics, the customers are capable of experiencing the real business of the

company and this will make them be more confident with Asda services and goods.

Consequently, the company will experience a great improvement in their market share increasing

their sales turn over.

Transaction medium

The system embedded on the website not only does it serves as a marketing tool but also

a medium which the customers and the company are able to transact using it. The customers will

be able to log in the Asda website and submit their order requests. The company will be able to

process these orders in conjunction to customers’ request and act on them immediately providing

information to their clients on when the services and goods will be provided. By transacting

E-Marketing 23

online, it save the company administration costs of hiring more staff to attend to queries of the

customers or even key in the details of the orders being requested manually when each

transaction is made.

Once the orders are requested online, the details of the orders are already captured in the

database of the company and it prompts the employees who are in charge so that they would be

able to prepare the orders and deliver them in time. According to Krishnamurthy 2006, this

increases the efficiency of the company in terms of service delivery and in transaction process.

By this, the company is able to attend a wide range of the customers where more cash is gotten.

Therefore, by e-marketing method, the company is able to increase its turnover.

Low establishment cost

Establishment of E-marketing service is much lower as the company will need to setup an

online application of a website, which will be connected, with the back office application.

Development of an interactive website is much user friendly and easier for the company to

incorporate it in its advertisement operations. Cost of running marketing process will also be

subsidized, as very few people will be needed by the organization to run all the advertisement

operations of the company. Much of the operations are left to be done by the system. This

become more effective and reduces the expenses of the Company outsourcing many marketing

personnel as most of the work is delegated to the computers.

E marketing will help the company to automate almost all its processes in the transactions

sector. This will help reduce human intervention increasing the effectiveness of the company in

the way they handle company issues and their services and goods delivery. They will ensure that

their systems multitask, as they will serve as a marketing tool and a medium of transactions. This

will reduce the cost of manual handling consequently reducing systems operations cost

E-Marketing 24

(Krishnamurthy 2006). Hence, it is economical, as it will make the company to spend less in its

operational cost. This will in turn increases the revenue collected and profit that the company

gets at the end of the financial year.

Disadvantages of e-marketing

This method of marketing ids not free and come with price attached. The company must

incur the cost of soft, hardware, deigning of web site, maintaining of the site as well as

distribution cost. The time to carry out all this process must be factored in, in the production

process. This will make the company to ensure that they make their overhead cost calculations

appropriately to ensure that they are operating at a profit. The e-marketing requires well-trained

personnel to ensure that right commands are executed to keep customers in touch with the right

information and avoid miscommunication and information alteration (Hart & Daoust 2006).

The numbers of the house hold shops that are connected online are very few. Thus, the

company is only connected to very little business reducing the business to business e-marketing

method. This if not well planned may make the company to invest more in this only to realize

that the return on investment is very low.

Generally, many people mostly regard internet as a source of information and not a

transaction site though this is changing with time. Therefore, information that may be gotten on

the number of the people visiting the company’s site as being proportion to potential customers

may be misleading. Potential customers in most cases will be motivated by buying in person

from the stores. Therefore, for small business where there is few or one business, it will deter the

customers from buying the goods. A lot of supervision is required in the advertisement that has

been placed on line. This is to ensure that there do not become outdated. Therefore, timely

update of the goods and services offered on line should be regularly checked.

E-Marketing 25

According to Stokes 2008, the online marketing lack the old customer care service that

customers used to enjoy. Most of the marketers using this method of marketing; has limited or no

service inquiry response programs. Therefore, customer visiting the company’s site will have

painted the picture of lack of good customer care service long before they visit the premise. The

other problem that the web market has is lack of enough navigation making it very hard for the

customer to access easily the information of the goods and service they are looking for. This is

because, the web sites that are created are marketing oriented and fails to integrate customer in

the end.

Competition is another critical issue in E-marketing (Chaffey, 2006). Therefore, so many

suites in the web are posing unnecessary competition to one another. Customer will have opened

very many sites before getting to the company’s site and therefore decreasing the chances of

them seeing the advert unless posted at a strategic point. By looking for such sites, more money

is required therefore increasing production cost.

Many of the visitors of the site require having something for free to attract them to the

site. This makes the company to feel the pressure to create other thing apart from marketed

goods that require more resources. Therefore, in using of E-marketing, Asda Store Limited has to

consider all the advantages and disadvantages when choosing this method as marketing strategy.

The best thing with the above disadvantages is that they can all be overcomed. The only thing

required is for the company to do their research well and integrate the customers with their

business through this method marketing. In this, they will increase their sales making good

money.

E-Marketing 26

3.0 Methodology

This chapter describes in details the research methodology, the manner with which the

study was carried out. In addition the issue of qualitative and quantitative methods employed in

the study is brought out clearly, the entire mechanisms used to indentify the sample, mechanisms

of data collection, analysis and finally interpretation of the results. The study sought to explain e-

marketing being the new way to make money. An investigation using a large commercial retailer

(ASDA)

Additionally, the e-marketing advantages and disadvantages were of interest to the

researchers. The research will also bring forth the advantages as well as disadvantages associated

with e-marketing. The study will put forward recommendations that will help organizations that

are in need of how to successfully integrate e-marketing in their business to utilize technological

innovation to cut them an edge in this competitive business world. Secondary sources of data

will be used to collect the required data; the data will be from literature such as Academic Books,

Journals, E-databases, short articles, theses and dissertations, and conference papers. Both

qualitative research methodology and quantitative methodology will be used in carrying out this

research (Creswell, 2003). A case study i.e. ASDA, will also be used to solicit for relevant

information. This provided me with an opportunity to come up with suitable information that I

can bring forth relevant recommendation. Data will be analyzed and presentation done using

graphs charts and tables where appropriate

3.1 Research design

The research employed a mixed methodology. Theoretical research approach in which

the goal is to prove/disprove a hypothesized truth or proposed future research plans that may be

carried out in the future but not at the current moment. The choice of this method was as a result

E-Marketing 27

of its cheapness. It is important to note that theoretical study calls for deeper digging of various

literatures ranging from journals, publications, books, other forms of literature and from the

internet. What this implies is that most of the data required will be collected by perusing through

secondary sources of data as compared to primary sources (Beiske, 2002).

Qualitative research is also employed in the study; the approach seeks to contextualize

the research by immersing the researcher into the study scenario as well as with the study

subjects. Hypotheses are developed and data is collected and the results tend to be subjective. A

case study as a sub type of qualitative research is used to ensure that the study is flexible enough

to give the researcher room to investigate issues that were not previously thought of and could be

worth being brought to light. It is worth noting that case study stimulate additional research or

identification of new phenomena. Additionally, it offers the chance to substantiate, challenge or

contradict some existing facts, opinions or ideas. However, according to Creswell, 2003 case

study does have a number of limitations. These include biasness since the researcher is involved

in the study due top his own feelings or value of systems. In cases where information relied is

not documented but in human memory, the finding might not be authentic.

3.2 Population and sampling procedure

The population of interest is the ASDA retail in United Kingdom in which desire sample

will be selected from. This is because they were in a better position to provide the necessary and

relevant information as regards e-marketing as being a new way of making money or not. Due to

the fact that the study cannot fully incorporate all of them, selecting a sample which will

represent the whole population is always deemed necessary in such a study. The sample will

however be selected randomly as this will give each and every targeted source of information an

equal chance to be in the pool of those interviewed or given a questionnaires.

E-Marketing 28

Similarly, careful-biased sampling will be used; this ensures that specific individuals

especially head of units (production, marketing, accounts) and other top officials (branch

manager, IT manager) are selected to provide the necessary information. Studies identified for

the study will deal with learners and institutions which will be used to represent the

characteristics of the population. Stratified random sampling will be used to subdivide

(distinguish) between employees who have worked in the organization for over five years and

less than five years.

3.3 Data collection methods

The data required to fully address all the objectives and research questions will be

obtained through perusal of secondary as well as primary data sources. It is worth mentioning

that before I embarked on collecting the required and necessary data I first sought permission

from the relevant authorities from the institutions and the retail.

3.3.1 Primary sources

The primary sources of data collection to be used depending on where they were most

applicable will include: interviews, observation and questionnaires. Questionnaires will also be

used to collect relevant information; I will distribute them to respondent situated in the targeted

institution of higher learning and would be collected later at an agreed date. According to Beiske,

(2002) questionnaire covers a large population at a time as they would be distributed to different

participants at a time and be collected later or at the same day depending on the willingness of

the responded in addressing the questions, due to it being standardized they are more objective,

data collected from questionnaire are easy to analyze, due to familiarity with the tool, responded

will not be apprehensive, it is also very cost effective as compared to face to face interviews, the

tool also reduces bias (Yu & Cooper, 1983).

E-Marketing 29

According to Creswell, 2003 the major problem with questionnaires as a tool of data

collection is that there is tendency of respondent to forget vital information, they may answers

the questions superficially when it is a long one, to counter this I will developed a short but very

inclusive questionnaire, due to standardization, there is no room for explanation incase

respondents misinterpret or do not understand the questions.

Observation were also used, this seemed to provide more accurate information. However,

this tool had some challenges. One with this kind of data collection analyzing data obtained form

it prove in most cases to be a serious challenge. To counter this I opted to have qualified

personnel that were capable of interpreting e-marketing.

To supplement the two tools, interviews were also used. This was chosen because when

the research will be done, as a researcher I will be able to have directs contacts with the

interviewee and obtain first hand information. Both the interviewer and the interviewee would be

able to clarify on issues of the research done hence, being able to obtain information which is

well elaborated and authentic (Wiersma, 1995). It is also a flexible data collection tool as when

questions when not well grasped by the interviewee I will be in a position to rephrase and

elaborate them. Interview will allow me to learn about things and facts that cannot be observed

directly and finally it adds internal viewpoints to outward behaviors.

Despite the advantage mentioned, according to Creswell, 2003 it’s a slow method

because the process calls for interview of one person at a time, cannot fully trace events and

trends that occurred in the past concerning e-marketing. Additionally, interview is an expensive

tool to use; it is also subject to respondent and interviewer bias which might jeopardize the

conclusions arrived at if care is not taken at an early stage.

E-Marketing 30

3.3.2 Secondary source

Materials from the library, internet and related research reports will be used to provide

the required data and information concerning blended, traditional and e-learning. Internal sources

to be sort after as the study is being carried include information compiled by the retail. External

data sources included information from the government sources, previous research studies and

academic institution (colleges and universities material related e-marketing as the new way to

make money or not.). The secondary sources will be essential to support what has been collected

in the primary data session i.e. from the observations, interviews, and questionnaires.

More emphasis will be on journals that include past research on e-marketing and other

related studies with relevant data to the topic. The secondary sources sought after will be a basis

of the research to be developed and litmus to whatever outcome that the primary data will

present. Books will also be emphasized in view of the fact that the authors have publication

authority to publish educational material that is correct and true. They will give information

related to the topic and clear on areas that need to be clarified. When collecting the information I

avoided at all costs since it will lead to distorted outcomes; bias will be much avoided if all the

collected data are supported by literature from the internet or past research where they will be

backed by evidence (Yu & Cooper, 1983).

3.4 Data analysis and presentation

Data will be analyzed using non parametric statistics. The collected information will be

filtered to clean it, modeling and transformation will be done in a way that will expose useful

information in drawing of conclusion and recommendation, then codification follows.

Descriptive statistics will also be employed in analyzing the data; this will help in describing the

E-Marketing 31

sample studied. T-test will also be used to test hypothesis and research questions for significance

differences.

As suggested by Pallant, 2007 to find out what are the significant issues (ranking the

issues from the most significant to those not significant) concerning e-marketing and making

money, a principle component analysis will be carried out. Logical regression and correlation

analysis will also be done to see the relationship between e-marketing and making money in the

case of ASDA retail in United Kingdom a subsidiary of Wal-Mart. The reason for applying

these analyses is to provide more accurate representation of the relationships between variables.

Additionally, reliability analysis was to be carried out to establish whether there was internal

consistency between what was said about e-marketing and their contribution for it being a new

way to making money (Tabachnick & Fidell, 2000). This method helped to examine the

relationship between the dependent and the independent variables.

In order to clearly show the relationship between the independent variables (application

of e-marketing) and the dependent variables, this study made use of cross-tabulation method of

data analysis. Cross-tabulation is a multivariate statistical method of data analysis used most

often in marketing research. It will be easy to interpret. To establish whether there are

significance differences on the reason that make e-marketing being the new way to make money,

ANOVA analysis is used. The presentation of the results will be done by using tables, graphs and

charts (Pallant, 2007).

3.5 Scope and limitation

The research has a global scope highlighting the characteristics of e-marketing being the

new way to making money. A number of limitations/constraints were anticipated in this study

and are discussed herein.

E-Marketing 32

1) Time constraints: I had to work under pressure especially where the sources of information

gave me close deadlines, like in cases where interviews were used, and some respondents

had just a particular time in which they were free. Also some respondents delayed with

questionnaires

2) Non cooperative respondents: Some respondents were suspicious and dared not to

corporate in availing required business information /documentations. I had to employ a lot

of tact to counter this in order to get information from them and dispel fears that were

developed.

3) Legal restrictions: I was unable to access some information due to legal restrictions and

jurisdiction limits of businesses that only allow certain sensitive information to be accessed

by specific people. In order to get a clear picture of this trend, I was needed to access even

the company’s inventory accounts, capital accounts and other relevant ones that could give

a projection of the changes that have occurred as stipulated by the research objectives. I

had to convince certain premise that I had no intentions of making any legal implications

with the information I collected from them before I could win their policies.

4) Financial constraints: The research is an extensive one and involved use of funds in huge

amounts Due to the fact that I was not funded, I faced a lot of financial constraints which I

countered by choice of economically affordable involvements.

5) Hostility: Some information sources and retail officials appeared hostile and did not readily

give out the information I needed .In fact I had to employ all tact of oratory prowess to

dilute this hostility.

6) Ignorance: Some people and business units heads and employees seemed to be uninformed

and could not therefore give me the required information as pertains to e-marketing as

E-Marketing 33

being the new way to make money. I had to give extensive elaborations and intended

meanings of the questions directed to them, in order to face out their ignorance like in

certain cases of interview, I had to use historical business events to remind them of periodic

trends.

3.6 Ethical consideration

Since the research involves human subjects, so there is need of high level of ethical

consideration must be maintained. Some of the ethical consideration includes the following; the

targeted sample populations that will be involved in the study to provide relevant information are

to be informed about the same in advance. The reasons for carrying out the survey as well as

how they stand to gain from the study will also be brought out clearly.

Additionally, research ethics demands that the information be sought after by the

researcher will be provided in good faith, and voluntarily without any influence be it monetary or

otherwise for instance giving of incentives, rewards, and gifts. It is important to note here that

the rights and welfare of the participants involved in the study is protected and guaranteed. To do

this, their identities will be kept confidential. Additionally, the information collected while

soliciting for data is to be kept confidential and opt not to be used in any other purpose apart

from what was initially intended for. It is expected that the interviewees/respondents will be

ethical and provide accurate information to the best of their knowledge. This means that they

should not knowingly give false full information.

More importantly, I opt to be ethical in providing the participant especially the

respondent’s guidelines and necessary information that are correct. Similarly, I should not be

judgmental on the information am provided with during the course of interview and should be as

neutral as possible during the entire process. Lastly, there is need to omit any kind of personal

E-Marketing 34

bias that might arise; this will be done at the end of the study. This is with the knowledge that

such bias can negatively impact on the statistical analysis.

E-Marketing 35

4.0 Results and Analysis

In the literature review various data was collected which involved e-marketing and the

application and benefits. According to El-Gohary (2006) article ‘E-Marketing - A literature

Review from a Small Businesses perspective’ in the International journal of business and social

science, there are 99% of small and medium enterprises in Europe. The SME’s need to develop

and become large and competitively advantageous as the large companies; this means when they

apply strategies such as e-marketing they will grow immensely (Chaffey, 2006). They will

change the shape, magnitude and nature of the small medium enterprises since they will apply

the internet and electronic marketing ideas such as intranets, mobile phones, and extranets in

their operations.

In the year 2002 there was a total of 544 million people accessed the internet which

means the internet has great potential. When such potential is tapped the business stands to

benefit a lot in that they will be at a better competitive advantage. The internet will give a

platform to market and distribute products and services. The internet is cost effective and very

convenient; this makes it easier for businesses to have a broad customer base, locate potential

and target customers, be able to identify and solve their needs.

In the UK the retail market share is dominated by Tesco with a 27.1% stake of the total

market share, ASDA controls 10.1% of the share, Sainsbury controls 6.9% and Waitrose/Ocado

has a 4.2%. The issue of e-marketing is brought in to light since the market share controlled by

the online selling is larger at 10.1% while marketing without online trading at 9.5% in 2008.

According to TNS Worldpanel report (2009) “the Great Britain Consumer Spend” in

2009, the market share had gone up to 30.4% for Tesco, 17.5% for Asda, 16.1% for Sainsbury

and 11.8% for Morrisons. The percentage is an increase 4.3%, 8.5%, 5.7%, and 7.2% for Tesco,

E-Marketing 36

Asda, Sainsbury and Morrisons respectively. The consumer spending was at 6,453,370,

3,411,938, 3,239,500, and 2,327,583.

As explained in the book “e-marketing excellence: the heart of e-business” by Smith et

al. (2002) in 1999 ASDA had information administration problems of undependable distribution

of data and documents in its 230 stores. The managers kept on complaining of ineffectiveness

and inefficiency in the transmition of data which was manual with some of the data was lost and

arrives late in the management system. In that year an intranet was created to ensure the

problems were solved. The intranet developed to ensure the staff to access the merchandise

briefs, daily weather updates, press release, policies such as human resources, customer service

information, reports, store performance, discussions, and self assessments.

ASDA has many subsidiaries and alliance that require to be monitored to ensure success,

and effective e-marketing and online strategy will guarantee all the subsidiaries remain efficient

in their operations. The subsidiaries and alliances include; Asda Employee Share Schemes

Trustee Limited, Asda Quest Trustees Limited, Asda Storage Limited, Asda Stores Limited,

Corinth Services Limited, Gazeley Holdings Limited, McLagan Investments Limited, George

Davies Holdings Limited, APS (Estate Agencies) Limited, Asda (Number 1) Limited, Asda

Financial Services Limited, Burwood House Developments Limited, Company Chemists

Association Limited, The Burwood House Group Limited,The George Davies Partnership

Limited, and Wal-Mart (UK) Limited.

In ensuring the customers and suppliers get what they want faster in the website the

management has designed the website very effectively.

There has been different product categories which include; Electricals, Furniture, Home,

Toys, Baby, DIY & Motor, Sports & Leisure, Jewellery & Watches, Gifts & Parties, George,

E-Marketing 37

Entertainment, Flowers, Optical, Pharmacy, Photo, and Travel. In doing this the customers are

able to experience a shopping that is enjoyable and worth an experience to talk about and

recommend to friends, family, associates and all those close to them. The commercial retailer

also launched very efficient delivery methods where the customers are able to get whatever they

have bought online within the shortest time possible. This is one of the methods of enhancing e-

marketing for the company since the customer is well catered for.

E-Marketing 38

5.0 Discussion

In establishing an e-marketing strategy the firms have to be strategic; the firm is bound to

establishing a working strategy. The strategy starts with a messaging i.e. an internal and external

e-mails which makes them communicate easily with suppliers and customers. The second step is

the marketing and stocks and availability checks; this makes the customers and suppliers get

information and access to the business dealings. The third steps are the online ordering where

suppliers and customers have the opportunity to buy and sell whatever the business is offering

(Smith et al. 2002). The fourth step is the online payment is made effective and efficient in a way

that buyers and sellers can trust the system. The fourth step is to monitor the ordering process

and progress to make the process smooth and effective (Smith et al. 2002). The last step is

making the business an e-business through the incorporation of all the aspects of online and

internet technology. The e-business strategy in addition require deep consideration , research,

testing, planning, and implementation whether it is an introduction of a new brand, mixed mode

clicks on website selling.

The four major ways of participating in online trading are the transactional e-commerce

sites, for example asda.com, and tesco.com; services oriented relationship building websites,

brand building sites and portal sites. The brand building sites are designed to support the offline

brand to develop through the online trade. They include low value, high volume, and fast moving

consumer goods. Portal sites are information site which are frequently visited by online visitors,

they include search engines e.g. Google and yahoo (Smith et al. 2002).

Security is a major factor in e-marketing and the management must ensure that there is

ultimate security in the website. This will make the existing and potential customers be assured

that it is safe and that they will not loose anything while trading. Such assurances will make even

E-Marketing 39

a small and medium enterprise on the net boost its sales and even achieve to be a large

enterprise. Threats that must be avoided and guarded against on the business include credit card

fraud, distributed denial of service, cyber graffiti, alien computer control, chat room

undesirables, intellectual property theft, and competitive information.

Credit card fraud is a serious threat since customers income is affected while there is

fraud. Any cases of fraud detected may make the existing and potential customers flee since they

will fear to be swindled off their money. Having their credit cards used by other persons without

their assent is betraying the trust. The cases of swindling are almost half in the internet to those

which are genuine transfers or trades. Despite this risk ASDA has made their site safe making it

trusted by customers for all their retail purchases.

Distributed Denial of Service (DDOS) is ensuring the site is kept of hackers. The site

should have ways of detecting hackers and denying them the access to conduct any illegal

activities in the site. The DDOS ensure they detect the hackers’ network routers from their sites

and shut down the sites (Smith et al. 2002).

Cyber graffiti involves hackers altering the business website and inserting false

information and defaming images and testimonials. They can even direct the visitors of the

website to other sites that may cause harm to them. When hackers detect large commercial

business website they may want to make the maximum out of it. They may put up sites to

confuse the users and even end up confusing and stealing from them; this dents the image of the

website. For example changing the website slightly making it similar to the business’s; for

instance looking at asda.com and asdas.com hasty users may not detect the graffiti (Smith et al.

2002).

E-Marketing 40

Alien computer control; when the business has internet connection the users can access

the information from other computers. This makes the website be vulnerable to hackers with

malicious. They can access the network especially when it is poorly secured; though network

scanning equipment they can detect the poorly secured systems which will make them control it

for selfish gains.

Without authority the hackers may invade the chat room; these are chat room

undesirables. They act as cyber graffiti and they may even post defamation messages, images

and arguments on the business websites for malicious reasons. They may send certain messages

to phones, accounts and e-mails of the users that may make the customers rethink their

participation in the trading with the business. Copyrights have been a subject of controversy over

the years; where persons have been identified to have stolen intellectual property rights of

business, music or information (Smith et al. 2002). Pirates continue to use stolen rights for their

own benefits especially in the internet. To avoid this, businesses needs to keep watch at every

time, for instance searching for the use of the property rights in search engines. Competitive

information can be experience when the property rights are stolen; this include information from

the company that may assist the competitors have a competitive advantage (Smith et al. 2002).

For example the information of customers may be stolen and then approached to join other

businesses. This is unfair competition and fraud which is also a threat to e-marketing.

E-Marketing 41

Figure 1: showing the contribution of online trading to the business. (Source: Smith et al. 2002)

The figure above shows the average expected increase in the proportion of consumers

when the strategy of e-marketing is applied. The figure shows the gradual increase in the online

revenue, online promotion contribution, influence information access and buying and online

sales. The period given is ten years which gives a great increase in proportion of the customers.

The increase is not meant to be immediately after the introduction of the e-marketing strategy

rather it takes time to sell the website and for it to be known. On the other hand, the strategy

shows a sustained increase owing to the trust and confidence build by the customers.

The above argument can be explained by the Wal-Mart report (2004)

(http://media.corporate-ir.net/media_files/irol/11/112761/reports/wmt_040704.pdf) where the

retail chain continues to enjoy sustained growth and development. In the net sales the figure

stood at $256,329, $229,616, $204,011, $180,787, $156,249, $130,522, $112,005, and $99,627

in the year 2004, 2003, 2002, 2001, 2000, 1999, 1998, and 1997 respectively. The net sales

percentage increase was 12%, 13%, 13%, 16%, 20%, 17%, 12%, and 12% in the year 2004,

E-Marketing 42

2003, 2002, 2001, 2000, 1999, 1998, and 1997 respectively. The year experienced the highest

percentage increase which was the year ASDA was incorporated into Wal-Mart.

The net income also increased to 9054, 7955, 6592, 6,235, 5,324, 4,397, 3,504 and 3,042

in the year 2004, 2003, 2002, 2001, 2000, 1999, 1998, and 1997 respectively. The Per share of

common stock: Income from continuing operations, diluted also increased by 2.03, 1.76, 1.44,

1.36, 1.21, 0.95, 0.76 and 0.65 in the year 2004, 2003, 2002, 2001, 2000, 1999, 1998, and 1997

respectively. The Dividends increased by 0.36, 0.30, 0.28, 0.24, 0.20, 0.16, 0.14, and 0.11 in the

year 2004, 2003, 2002, 2001, 2000, 1999, 1998, and 1997 respectively.

The Shareholders’ equity also increased by 43,623 in 2004, 39,461 in 2003, 35,192 in

2002, 31,407 in 2001, 25,878 in 2000 21,141 in 1999. While the Return on Shareholders’ equity

stood at 21% in 2004, 21% in 2003, 19% in 2002, 21% in 2001, 23% in 2000, and 21% in 1999.

Consequently, the Return on assets stood at 9%, 9%, 8%, 9%, 10%, 10% and 9% in the year

2004, 2003, 2002, 2001, 2000, 1999, 1998, and 1997 respectively.

The security of the website as sited earlier is of great importance; the technological,

physical and procedural controls for the business website. They include; contracts, trend and

exception monitoring, public key technology and cryptography, intrusion detection routines,

virus scanners, audit trails, and back-ups.

Contracts are clauses that describe the process to be applied in securing the website. They

are entered into with the companies that are protecting the websites. Trend and exceptions

monitoring involves the customers of the business that must be monitored. Their trends in selling

and buying in the website should be predetermined to avoid strange and hacking messages that

may cause the system to collapse. Public key technology and cryptography involves web servers

and browsers being set up so as to encrypt and seal the contact by using standard techniques for

E-Marketing 43

example SSL and SET. Public key encryption verifies the identity of the users making the

customers trust the website. The encryption is carried out by trusted companies; the make the

identification of genuine transactions easy. They also identify the source of the transactions for

subsequent authorization; these include e-mails and messages to phones so that any alterations or

distortions are prevented.

Intrusion detection routines are involved in the scanning for any possible attacks and

intrusions to the website. The system needs to be checked for denial or access to the website to

keep away intruders that may try to cause harm to the system. Virus scanners will be used to

prevent unwanted programs; this should be done regularly and the system should be updated

with the latest versions of anti-viruses (Smith et al. 2002). Audit trails good audit trails keep

trails of events and occurrences in the website. When the website has a clean and reputable

record then it will attract numerous customers. Audits will be very important in tracking the

information and track all the transactions which will be handy in solving any disputes. Back up is

a very essential prerequisite for any business there must be very effective and efficient back up

systems when the website crushes since it will ensure it is restored fast. When such security

measures are in place the website remains secure for the visits and transactions to the customers.

This build confidence and trust in the site which will also make the customers also recommend

the website to other potential customers (Smith et al. 2002).

In creating a website there is need for a situation analysis to evaluate the website and its

effectiveness. In reviewing the business will take account of the customer base, online customer

care, website, integrated database, opt in e-mails campaigns, web links, banners advertisements,

mobile marketing and interactive television.

E-Marketing 44

Figure 2: showing the contribution of the marketing strategy to the business (Source: Smith et al.

2002)

ASDA has done more to improve the shopping for the customers; they are able to sort out

their shopping basket. The basket is well organized in that when the shopping page is in the

entertainment section then one is able to go to the homepage and still shop easily without the

shopping basket disappearing. The screen size is also very friendly and fits the screen. An e-mail

option to help the customers be able to track the transactions they undertake. With the e-mail

option they are to follow the systems and accounts and have a better control of the transactions.

The system also has a registration system that makes the customers confirm their registration

details and confirm the details.

In the system they should always offer reassurance of security and genuine security

measures. With building a trustworthy relationship between the customer and the business

through the website is a very essential part of the e-marketing strategy since it accomplishes the

customer care part of the marketing process. Free and efficient deliveries have also been a basic

requirement for ASDA where all the customers’ deliveries are handled by qualified and

experienced staff.

E-Marketing 45

Having a loyalty card has made the customers be attached more to the business making

the business maintain the loyal customers. The loyalty places ASDA at a competitive advantage

over its competitors in the fight for a market share.

E-Marketing 46

6.0 Conclusion

The question E-Marketing: The New Way to Make Money? can be answered by the

above explained facts. Small and medium enterprise can grow from being small to large through

the appropriate strategy. The e-marketing strategy is one that can be move drive the agenda for

the business if implemented appropriately and effectively. To be able to achieve the objectives of

a business the e-marketing strategy must be critically evaluated to ensure that all the factors are

right before establishing it.

The business stands to achieve numerous benefits such as reduction in costs, faster

response from users and the business, increase capacity and methods to measure and collect

information, personalizing the market, and more interactions between the customer and business.

If a good relationship is established then the business stands to gain in view of the fact that it will

develop loyal customers who will also attract others. This will lead to increased net sales and net

profits like in the case of ASDA which means the business will develop immensely.

The example of a large commercial retailer such as ASDA is a indication that market

share can be won and retained by any business if only the business is able to apply a marketing

strategy that attracts and retains customers. The e-marketing strategy makes the trading effective,

efficient and convenient for the both the shopper and the business and this make it attractive.

The business should establish the website with the correct objectives which should aim to

sell, serve, speak, save and sizzle. These precise objectives will help in increasing sales through

having a wide network of customers, serve the customers and add value through online and

direct contact with the customers. The business will be able to speak to the customers and follow

them easily and get the feedback through online questions, interviews, dialogues and chating.

Thus the customers will feel catered for since all the views that they give will be attended to

E-Marketing 47

appropriately. The business also will save on the costs such as those of service, administration,

and data collection, printing and posting. Reduced costs will result to high productivity and

efficiency and consequently higher profits. The business will also be able to have goodwill from

the customers thus creating a store image and position itself in the market. E-marketing therefore

contributes to making more money for the business if implemented well.

The digital era characterized by digital technological advancements is to be utilized by

the business in the best way possible to ensure it makes money. The business needs to use

comparative sites in the internet to search for an opening that will make it more marketable and

have a competitive advantage over its competitors. Before the website of the business becomes

known and dominant to the customers it may take time, but this is not a setback to establish a

website. However, the business should aim at establishing a niche in the market and defend it at

all costs from competitors through efficient and effective services.

The best marketing strategy is one that is targeted at satisfying the customer; such a

strategy will make the customers attached to the business and retain the loyalty. The business

should find ways of retaining the customers who will be instrumental in attracting other potential

customers. The website should be a platform to sell the best qualities of the business and since

many people visit the internet daily the business will tap those who want to trade.

Making money the digital way is the goal of e-marketing; this method has worked for

retails giants particularly in the US and in UK. Tesco, ASDA, Morrisons, and Sainsbury are

working examples of the strategy which should be replicated in businesses all over the world.

Making money is all about a strategy and applying it at the right time in the right way; this

means that the e-marketing strategy can help the business grow and be sustained. The business

should be able to use highly visited sites especially social sites such as twitter and facebook to

E-Marketing 48

advertise their website and products so that they become known. Once the business website

becomes operational and the business is able to deliver quality and efficient products and

services in addition to security they will earn the trust of the users thus reap maximally from the

investment.

E-Marketing 49

7.0 References

Albee, A. 2009, E-Marketing Strategies for the Complex Sale. New York: McGraw Hill

Professional

Beiske, B. 2002, Research Methods: Uses and Limitations of Questionnaires, Interviews, and

Case Studies. Manchester: University of Manchester

Chaffey, D. & Smith, P. 2008, eMarketing eXcellence: Planning And Optimizing Your Digital

Marketing. New York: Butterworth-Heinemann

Chaffey, D. 2006, Total E-Mail Marketing: Maximizing Your Results From Integrated E-

Marketing. New York: Butterworth-Heinemann

Creswell, J. 2003, Research design: qualitative, quantitative and mixed method approaches.

Thousand Oaks: Sage publication

Financial report, 2004, http://media.corporate-

ir.net/media_files/irol/11/112761/reports/wmt_040704.pdf

Godin, S. 1995, eMarketing. London: Berkley Pub. Group

Hart, J. & Daoust, B. 2006. Blueprints for Success-E-marketing. Washington DC: Penmarin

Books

http://www.asda.com/index_5.html

Krishnamurthy, S. 2006, Contemporary Research In E-Marketing: Volume 2. London: Idea

Group Inc (IGI)

Pallant, J. 2007, SPSS Survival Manual: A Step-by-step Guide to Data Analysis Using SPSS, 3nd

Edition. Crows Nest, NSW: Allen & Unwin

Patton, M. 2002, Qualitative Research and Evaluation Methods, 3rd edition. Thousand

Oaks,CA: Sage

E-Marketing 50

Smith, P. R., Smith, P.R., & Chaffey, D. 2002, E-marketing excellence: the heart of e-business.

London: Elsevier Press

Stokes, R. 2008, Emarketing: The Essential Guide To Online Marketing. New York: Quirk

eMarketing

Stokes, R. 2009, EMarketing: The Essential Guide to Online Marketing. Florida: University

Press of Florida

Tabachnick, B. & Fidell, L. 2000, Using Multivariate Statistics. New York: Allyn and Bacon

Inc

TNS World panel report 2009,

http://www.tnsglobal.com/_assets/files/TNS_Global_Market_Research_Supermarket_Sh

are_0309.pdf

Yu, J., & Cooper, H. 1983, “A quantitative review of research design effects on response rates to

questionnaires”. Journal of Marketing Research 20: 36-44

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