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Unit 12 P6 (Pass) International Business Studies Btec
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Learning outcome 4: understand the challenges faced by businessesusing internet marketing.
Unit 12: Internet Marketing in Business
P6: Report (Resub)
Tutor: W. Canto Garcia
Student: Arno Vollebregt
Class: IBS 2 B
Date: 09-06-2017
1
, Problems of channel conflict and disintermediation
My chosen company for this report will be Albert Heijn. Disintermediation is not a good
thing for AH, because this term means that you cut out the middle man; the middle man
is AH. With disintermediation the manufacturer directly sells its products to the
consumers. AH is buying their products at their suppliers and then they sell it to the
customers. If those suppliers do not need AH to sell their products this will be a lot more
beneficial for the customers. This is harming the relationship between customers and
AH; a supermarket is always trying to make sales as personal as possible. When a
wholesaler sells its products, it is not as personal as AH would sell their products.
Customers would have less contact with the supermarket.
A channel conflict is when a party interferes with another party in the same sector; so if
another company is trespassing the rules and it affects AH. This channel conflict has
nothing to do with competition; that is a different thing. Smart things to do as AH is to
make policies, these policies contain the rules of AH, it is also saying when another
company is bypassing their rules and it affects AH.
Low customer confidence in payment security
AH has an online web shop where customers can buy their products online and let it be
delivered to their house. When ordering online this means you have to pay online; you
have to fill in your personal details, bank account numbers, address etc. People do not
always trust online purchases; they are concerned about the payment security. There
are a lot of stories about hackers and identity theft these days. Payment transactions are
needed, when the Albert Heijn orders their product at their suppliers they have to pay
the amount by internet because the amount will be too big to pay by cash. When you
purchase something online you have several ways to pay for it; you can pay by a
selected bank, by credit card or by PayPal.
Challenge of delivering to higher reliability expectations raised
When customers shop online and order their products they have certain expectations.
They might expect that the website is accessible 24/7, same day delivery, free delivery,
on social media response within a couple of hours. All of these points have an impact on
the company, if a company covers all these expectations it will have a positive impact on
the company. Albert Heijn does almost cover all of these points; their website is
accessible 24/7, this gives a good impression of Albert Heijn because people can do
their groceries whenever they want. They can’t order it whenever they want but they can
add their products to their basket and order it the next day.
2
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