Published 16 Dec 2016
Many companies are now using and/or are shifting to e-Business, and this exaggerated the effectiveness of marketing. Before using the non-e-Business, companies had problems with identifying, segmenting, and targeting the consumers, one of the reasons why a company cannot stabilize. Using the electronic technology nowadays, companies need not spend more time and penny in order to track the behaviors and patterns of the consumers as it was 50 years ago. Using the information gathered from tracking, companies can design products and effectively execute marketing initiatives that covers not just advertising but as well as planning and executing the conception, pricing, and promotion. Marketing also distributes ideas, goods, and services to create exchanges, which looks forward to satisfy inpidual and organizational objectives. The four P’s in marketing, product, pricing, promotion, and placement/distribution, were made simpler and easier with the quick hand of analysis of capabilities through e-technology.
Also, more and more business transactions and processes are aided by technology that can create, improve, or align the product to customers’ needs. Affiliate Marketing Strategy for e-business, for instance, uses one site to lead track to online marketing which is similar to manufacturers that pay commissions to selling agents. Companies like Amazon use affiliate marketing reduce the cost-way to acquire customers. For each client who access on the company’s logo and buy from the company, content site partners called affiliates, will get an income. A 15% commission of the sales is given by the Amazon for every customer/client referred to the company. The needs of the customer/client of Amazon are addressed by the company’s report. The affiliate program is also known as syndicated selling (James, 2007).
Content sponsorship, direct selling, infomediary, and intermediaries are all parts of the e-business model marketing strategy. For intermediaries, there are brokers for an online exchange, agent, and e-tailer. Next, an agent represents the seller, which is the affiliate program. Manufacturer’s agent, metamediary, virtual mail, purchasing agent, shopping agent, reverse auction, and buyer cooperative are additional classifications. An e-tailer is a bit vendor for tangible products.
The Amazon uses multilevel marketing network. The company gets information through the aide of the internet, and finds new customers as well as discovers new opportunities with existing customers and target new markets in effect to a fast-changing business world using that information. Its successful sales and marketing with the aide of the internet are due to five reasons. First, the company sets specific criteria to find competent leads, and develop effective lead-generation processes. Second, with extensive and accurate information in the internet, Amazon is able to project and makes it easy to clients/consumers to mail and provides the lists of sales leads online.
Third, Amazon discovers new opportunities, and grab on the competitive landscape and target for business marketing programs. Fourth, clients get an easy search access of the Amazon. And lastly, the company is aided by powerful and cost-effective online tools. It helps create accurate lists of targeted sales leads. The company and its products and operations are known geographically speaking. For that reason, the lines of business bring the bulk of sales to the company. Furthermore, Amazon has extensive and impressive roster of brand names or customers. Not only that the company can access its competitors, but also the clients.
EBay uses the same strategy as Amazon for its major products that include clothes, collectibles and sports equipments. As an auction company that needs larger market, it employs the internet where thousands of people could be the clients. This tool has also been used by ETRADE that gives answers and information for ebusiness. Important considerations like practicality, affordability and scalability of ebusiness are its concern. Similarly, one of the world’s leading computer manufacturers, Dell, has transformed and persified into wide range of business segments, which remains to be global over the years. Indeed, the strategy of Dell is global. The use of the internet to put the consumer closer to its market enables them to build customer base. Dell also finds the brick and mortar market strategy. As a result, sales offices and manufacturing outlets across North America, Europe, Asia and South America, are established.
This way it has been able to gauge the local customers’ needs as well as services desired. This strategy to gauge on local consumers was before and again is the strategy of Schwab, Gateway, Staples, and Borders. Even the company is global in approach; it cannot miss to think of the local consumers. Staples are effective on distributing promotional items that can help the company achieve a number of goals. In shifting to e-business the company still applies to generate referrals and repeat customers, memorable messages on promotional pens or t-shirts, etc, and give aways (Gallagher, 2007).
There is no problem for the companies who start the business offline to later decide to extend the business online. In summary, ebusiness makes strategies and makes the business successful because of the transformation on how customers find the “go-to place for information”. Second is that customer find the way through the internet where they can expect to browse the products they want, and purchase it, because companies can place a wide range for customer information, thus greatly tracking the consumers who have the highest potential for purchasing products.
Third, the e-business takes prospects right to the sale. After the customer had experience the promotion, he/she can immediately purchase the product. Fourth somehow takes an advantage to ebusiness over the brick-and-mortar. Ebusiness conveys a perception of being a full-service provider because for distributors and retailers, the company is an easy and comprehensive supplier. While brick-and-mortar are often judged by the inventory that is actually on hand and service provide at store.
Fifth, ebusiness provides lower overhead, lower costs and better service like for music, publications, graphic design products because delivery is through digital form. And lastly, ebusiness creates worldwide presence through communication and distribution channel that offers global access on company’s products and services.
- Edeh, C. (2007). Internet marketing Yesterday and Today: a Research Report [Electronic Version], 1-8. Retrieved August 24, 2007
- Gallagher, M. (2007). Put Promotional Goods to Work for Your Business [Electronic Version], 1. Retrieved August 24, 2007 from http://www.staples.com/sbd/content/article/o-r/promoproduct.html
- James. (2007). Affiliate Marketing Strategy for e-Business. [Electronic Version], 1. Retrieved August 24, 2007 from http://resources.alibaba.com/topic/48102/Affiliate_Marketing_Strategy_for_e_Business.htm