question 8

E-MARKETING

Steven

Columbia Southern University

E-MARKETING OBJECTIVES

E-marketing basically refers to marketing efforts utilized by business organization to get the attention of the online community (Carter, Brooks, & Smith, 2007). This is a strategy that is based on the internet and its major objective is to target internet users who are potential customers for a business. E-marketing objectives include the following:

· Increasing market share

· Increasing sales revenue

· Reduction of costs

· Achievement of customer relationship management

· Improvement of the supply chain management

THE OFFER: PRODUCT STRATEGIES

Business can sell their products online using various strategies. It should be noted that the internet is the basic platform that products will be sold, therefore, it is necessary for businesses to consider product strategies that are in line with what the internet demands. One of the e-business models for product strategies include the online auction. This a strategy basically utilized by businesses which are interested on raising additional revenue so that they can finance their operations and improve their competence and competitiveness in the market. Another product strategy is when a company creates a new product and sells it. This is an effective strategy because it is usually utilized after analysis that reveals opportunities in the market. For survival in e-business, it is necessary for businesses to take advantage of information technology to improve their offers so as to be effective in the product strategies.

THE VALUE: PRICING STRATEGIES

Most businesses that run their operations online also have their products being sold offline; it is necessary for considerations to be made in terms of how these two compare. The greatest aspect to be considered is the fact that different costs are involved in marketing such products, therefore, their pricing must be different as well. With respect to online pricing, there are two major trends:

i. Dynamic pricing

This is a pricing strategy in which different prices are set on the same products depending on the consumers or situation (Ryan & Jones, 2009). For instance, the business will offer products at discounted prices to its first time customers for the interest of motivating them to buy more. Such a pricing strategy is focused on attracting and retaining new customers.

ii. Online bidding

The major purpose of this strategy is to optimize the management of inventory. For instance, in situation where demand is low, businesses allow customers to bid for different products. The business does not set a specific price for the product but it usually has the minimum that such a product can be sold for. Potential consumers are allowed to bid for the products and the highest takes it home. In such a case, the pricing strategy makes the consumers feel important because the businesses listens to them. Such a consumer is likely to be loyal to the business.

DISTRIBUTION STRATEGIES

The internet is used by various business to distribute their products and improve efficiencies; this is done through various strategies.

i. Direct marketing

In direct marketing, businesses usually sell their products directly to their consumers; they do not need intermediaries. Through the internet, businesses do not find it necessary to involve middlemen as consumers can directly be reached. This strategy is cheaper and faster.

ii. Agent e-business models

In this strategy, an agent brings together buyers and sellers so that they can transact business. The agent earns a fee for creating a platform in which buyers and sellers meet and conduct business.

MARKETING COMMUNICATION STRATEGIES

The internet is now widely used by many people around the world and is an ideal channel through which businesses can communicate with their customers. It offers a direct link between the two in the sense that there is improved efficiency and effectiveness. One of the most common strategies used by businesses to communication is social media (Carter, Brooks, & Smith, 2007). Businesses have created pages on which they post their products and services and customers get the information. It is an effective marketing communication strategy because it enables businesses to provide a lot of information. It is also interactive.

References

Carter, B., Brooks, G., & Smith, B. (2007). Digital Marketing. New York: John Wiley & Sons.

Ryan, D. & Jones, C. (2009). Understanding Digital Marketing: Marketing Strategies for Engaging the Digital Generation. London: Kogan Page.