Unit 12 Modern marketing
What is Internet Marketing? (P1)
A very simple explanation of what internet marketing is: Advertising by using the internet as its help tool. This is very short so here a wider explanation. Today the day, internet has given us a lot of tools. These tools are all to use of course, but in what way? As a company you want to do branding, you want your name to be recognized and the consumer to be happy about your products. Back in the middle-ages, people did this by communicating mouth-to-mouth. At Easy Jet everything needs to speed up constantly, and by internet news goes quickly. So does advertising too. This is why we as Easy Jet use internet marketing. And It is a lot cheaper for the customer and us too!
How does Internet Marketing integrate with the 4 P’s and / or the 7 P’s? (P1)
Internet marketers make use of several steps to control their shares and effort. These steps are for example making use of the 7p’s or doing a SMART. Through internet, businesses can easily, and quickly check what peoples interests are and what their consumer behavior is. Making use of the internet as a business provides the business of better branding, more customers, better staff, a faster business trade and that for a creative and cheap way. This is thanks to the brilliant programs that businesses use nowadays, which notify each click (choices and interest, marketing research). This internet marketing is integrated especially for consumer behavior. By looking at these P’s for example, the information that you get is very handy. It is information that is major to a successful business and a good and solid combination of the marketing mix. It is all logical; all need attention and are already connected to each other.
Product
Easy Jet makes use of services. While looking at business aims and objectives, they always consider some questions: what is it? Who is it aimed at? What does it do? What should it do? Products, the value and details of it is normally seen within the store. Also the product is only available within the store so you need to go out there and check-out whether it might be in stock. At www.easyjet.com, you can check whether a deal is still available. A big advantage within these services online, is that the consumer can access it by his/herself. This gives much more freedom for use of these software programs, Easy Jet can now increase their spectrum of segments and reach more people.
Price
With a product, a price is set of course. Prices can differ from other businesses, though as Easy Jet, we want to be consumer attractive. So we came up with newsletter subscribing. Here the customer can subscribe and as 1st the special deals right in his/her inbox. In this way, we keep our speed, and for the customer its discount. This is an example of discrimination pricing as differs per customer. Here are some more varieties:
- Penetration pricing
- Destruction pricing
- Competitor pricing
- Skimming (or creaming) the market
- Discrimination pricing
Place
Easy Jet does not work physically as in face to face. Their work ad offers are at www.easyjet.com. Why? Bookings nowadays are always done online. This is cheaper, quicker and easier to access.
Promotion
The use of promotion is a way and opportunity to gain access to potentional customers. Easy Jet does a lot at advertising. As you can see here, they also own a own monthly inflight magazine. This magazine represents hot topics, trends, sports, history, amusement e.g. tourist spots or special sightseeing and business related networking.
People
“Our business is only as good as the people working within it, across all areas, from cabin crew and pilots through to our engineering teams, management and administration teams and ground staff in Spain. Our focus is to attract the right person regardless of level within the business, and to ensure everyone is engaged and works together.” (Easy Jet)The customers that Easy Jet focuses on are travelers. These travelers go all across the world. The task of Easy Jet is to give them this opportunity in a safe environment, in a cheap way with the right knowledge and information, and the possibility to book a plane right from their couch.
| Year ended | Passengers | Net Profit/Loss |
| 30th September 2007 | 37,230,079 | 152.3 |
| 30th September 2006 | 32,953,287 | 94.1 |
| 30th September 2005 | 29,557,640 | 42.6 |
| 30th September 2004 | 24,343,649 | 41.1 |
| 30th September 2003 | 20,332,937 | 32.4 |
| 30th September 2002 | 11,400,400 | 49.0 |
| 30th September 2001 | 7,100,000 | 37.9 |
| 30th September 2000 | 5,600,000 | 22.1 |
Processes
Easy Jet provides the customer with a service above services. This means they give opportunity (service) to acquire a other service (deal). The customer has its own responsibility for a share because they have full access to book a flight or rent a car at Easyjet.com. Forms online need to be filled in and details (fields) are required in order to book. Furthermore the flight self and stay in a house (accommodation) there is also a piece of the process.
Physical evidence
Everything that’s on the flight e.g. comfort as in nice seats, a glass of good wine and a nice appetite. Furthermore your ticket at Easy Jet is a physical evidence of your booking, and allows the customer to use it within a term.
Does Internet Marketing contribute to or highlight the need for effective identification of new product / market development opportunities? (P1)
Internet Marketing can be very widely. Easy Jet invests a lot on internet marketing. This is because their business consists of internet only. Their services are online only and this is very effective for both customer and Easy Jet. So it not only contributes, it s their need of selling. The use of internet in marketing is for example that the service is way better and response quicker for customers. Also the sales can increase because of the branding and comfort of seeing it online. By the use of search engines such as Google, you can monitor your own marketing operations which has to do with consumer behavior e.g.:
- Advertisements (Easy Jet on bus shelters, public transport and their own planes)
- Clicks and interest
- Surveys and quotes
- Media (social and internet media e.g. newspapers/magazines). This can be free marketing e.g. a facebook/twitter profile but absolutely contributes to their online recognition.
- The comfort within this is that the business can make the relationship between business and consumer as close as they want, developing their own style.
How does Internet Marketing help towards the achievement of Business objectives? (P1)
“Easy Jet has based its ticket sales on the Web. At present, over 75 per cent of its sales are sold directly through the website. This is all the more remarkable, given known consumer hesitation about buying anything online.” http://www.aatl.net/publications/easyjetmodel.htm (aatl.net)
Easy Jet also uses a web strategy. This means dare to differ from other airlines; they are the first and only who is a web-only airline. This means their whole business, contact and service is done online. A very dependent decision, though they feel confident about this and want to share this confidence. Consumers hereby also experience this, with the result that 75% of their sales are done directly via their website. Something to be proud of.
Does Internet Marketing enable more effective targeting and segmentation? Can you describe some examples? (P1)
As I mentioned before, a newsletter subscription provides details of a consumer/customer and by the use of a online program, clicks on their website give information relating to consumer behavior and interests. This enables more effective targeting at consumers, being able to come up with more attractive deals and plans to gain more profit as a result.
For example:
- A family wants to have their vacation at Kreta. They are searching for a cheap flight as the family consists of more than 5 people, 2 are blow 16. One of the youngsters saw that a friend ‘liked’ Easy Jets Facebook profile, and he began to research their activity. (Easy Jets gives -16 a discount, so this is attractive for the family. They clicked on some flights that might be interesting, and one comes out as most ideal. The decide to book the flight and see that they do not even have to make a call, but can do all by themselves. First they are a bit scared because of the possibility that it might not be changeable anymore. Then they read it ís possible, and are now confident with Easy Jet, just like the business itself.
- Easy Jet started a internet-only airline as first. This plan reached out so good that 75% of their tickets are sold directly through their own website. Thanks to internet marketing, Easy Jet offers one of the most cheapest airline flights, giving them much more profit and consumers a happy face too. Because after all, we all like professional discounts, but, with the right safety.
- A 24/7 access on their website is far more than owning a shop
- Access your purchase online, and manage it for the secure and safety
What is ‘disintermediation’ and does it help producers? Explain how. (P1)
Disintermediation is the fact of delivering services, without other businesses (wholesalers) between the process. It is a direct way of giving the service to the customer. For Easy Jet this means that these services do not pass any other distribution related spots than consumer only. This is a quick and cheaper way of providing a service or product, but is more dependent on Easy Jet, as they have full responsibility for any consequences during for example the booking of a flight.
What are the benefits of Internet Marketing to an organization? (P1)
- - Faster flow of money
- - Cheaper way of advertising, through social media and their website
- - Faster connection/communication with potentional travelers
- - Quicker data collection e.g. travelers most hot or not places in summertime
- - A better communication and connection between banks and the Easy Jet, and for the banks themselves a plus in their market share.
- - Hiring less staff, saves money and time
Accessibility: (24/7) all day all night long, everywhere in the world. This is ideal for customers, because time and planning can differ a lot per person meaning not everyone books between 9:00 and 00:00. This also saves a lot of time because the consumer has no need to go to a shop. Consumers can also easily check and verify their order. Further more are data, deals, special features and service specification sharply up-to-date and this is very handy while being a online website with a 24/7 access. For example you book a flight to Turkey. The service specification here is that you can check online at Easy Jet what kind of hots and nots there are, and what is recommended within their most ideal process while going to Turkey. In this way, customers can easily see what has been booked before and what secures safety of fun and amusement there.
Convenience: It saves a lot of time and money, registering and booking is a simple process (and by 2d times of ordering client information will be saved) and easily compare prices and deals of Easy Jet (especially while being a subscriber).
Safety: Customers nowadays are day by day more convinced about ordering online. Customers nowadays feel safe to do their finance online, giving banks the opportunity to decrease their costs. (administration and staff). Focus can now be more on service about the service, like a helpdesk for Easy Jet consumers, but then still online!
