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Unit 12: Internet Marketing in Business
M2: Analyse the marketing opportunities and challenges faced by a selected business when
using Internet marketing
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Firstly, through the use of internet marketing, bots can use purchasing and viewing history to
tailor promotions and offers to what that specific customer wants, so for example, if the
customer has been looking at a specific pair of football boots for a week, this pair will be in
the recently viewed section or may be on the homepage, so therefore the customer will be
more convinced to buy a pair of football boots, as it is constantly being recommended to
them, so therefore, the advertising has to vary from customer to customer, as if this doesn't
happen, then the customer would be advertised certain products which aren’t suitable for
them, and therefore, this may impact the sales, as the customers aren’t being advertised
products which they like, and therefore, the customer is less likely to use the site that often
as the service isn't as convenient as they need to seek out certain products which they are
interested in, rather than them being recommended
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Secondly, by using internet marketing, it means that adidas for example, can promote
special offers much easier and to better effect as a result
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However, if they find the product isn’t selling as well as anticipated, they may have a
clearance sale (promotion), such as 20% off for example, so therefore, adidas will then be
able to shift this stock, for a discounted price, therefore increasing the potential sales as a
result, as people would naturally be interested in a product, if it is cheaper than it was
previously, then it will be able to gain more traction, and therefore the promotion will be
successful
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However, when the stock is sent to
stores, there is more middle management, and as a result less convenience, as the
warehouse has to allocate a certain amount of stock to their stores, and they have to make
deliveries to their stores, as well as replenish the stock whenever that store needs it, and in
my opinion, this isn't the most efficient way that stock can be managed, as if the stock is

purely based online, then it is far more convenient, and therefore the stock is much more
easily accounted for, and the whole service is much more streamlined
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By having an online presence, adidas can also increase their profits and reduce their
overheads and will be able to consider shutting some down as it won’t be worth paying the
operational costs such as wages, land costs, etc
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Adidas are also able to monitor competitor activity using the internet, so they are able to see
what products they are launching for the future, as well as monitoring their customer service
complaints via social media platforms,as this is where the majority for complaints from come
from nowadays
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Challenges
When adidas uses internet marketing, they can effectively manage customer expectations
by using promotion effectively and communicating directly with the customer, in order to
ensure that the customer knows exactly what the product is, the function, specifications, etc
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They may also do a countdown, and use
other promotion methods such as social media in order to remind the customer of the
product, so therefore the customer has more anticipation towards the release of the product,
and therefore the customer is more likely to get excited and as a result, buu the product, as
they have seen it promoted everywhere, so they can build up more of an opinion if they like it
or not, therefore building up expectations of the product as a result
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Through the online store, the main way they get feedback is through
surveys, which would be carried out after the customer has finished their purchase, so they

may be asked what they thought about the website, prices, or their general opinion on how
they feel the adidas website can improve, to cater to their needs
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In terms of volume of information, adidas
may put the issues into categories such as customer service, products , etc
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Adidas has effectively kept pace with the online market and made relevant technological
changes in order to keep up with what other major retailers are doing as a result, in order to
remain competitive
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In terms of technological changes, adidas have
incorporated social media into their overall promotional media, so for example, they are
more involved in social media platforms such as Instagram and Twitter, and also aligning
themselves with athletes and social media stars who have a large following, as this form of
advertising will have a better return, as people will follow these people, so therefore they are
more likely to see the advert ,rather than the advert being on TV, where they may ignore the
advert, so therefore if adidas is associated to someone they look up to, then they are more
likely to follow the message of adidas, if they are aligned with someone they like, so
therefore making changes to promotional media, has helped them to keep their pace in the
online marketing aspect of the business, buy incorporating different technological methods in
marketing
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They have stated that they “use Secure Sockets Layer (SSL) software,
which encrypts information you input
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On their privacy policy on their website, they also give advice to their
customers, such as being careful not to share passwords, and if the customer feels that
there has been an unauthorized use of the account, adidas recommends they contact
customer service, in order to resolve the issue
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Finally, adidas has successfully made changes to their online marketing services to meet
linguistic/cultural changes
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They also have delivery locations all over the
world, as well as different currencies available, all to meet the different social and cultural
changes which would vary from country to country, as they want the website and the wbrand
as a whole to be as accessible as possible, so therefore, adidas has used this option
successfully, in order to ensure that everyone can have access to adidas, and be able to buy
the products and represent the brand
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adidas
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