Business Strategy to Promote Online Products - Selfie Stick - Case Study Example

Name Tutor Course Date Business Strategy to Promote Online Products Online Market The advance information technology (IT) has resulted into flooding of online market by business around the world. As opposed to domestic non-online market, online market in characterized by a number of forces making it challenging for a business to make success out of it. In most cases, online market is characterized by the consumer behaviors and characteristics, as these are the key determinants of marketing online. Due to the stiff competition existing in the online market, it is imperative that online business practitioners understand the behavioral characteristics of targeted consumers and the influence of the competitors to general online marketing (Constantinides, 111). Therefore, it can be argued that online business entails determination and analysis of buying behavior and using it to make and implement marketing decisions that are aimed at building and promoting trust or confidence of consumer towards the seller. To penetrate online market and thrive, it requires strategies that combine market functionality combination. The online seller has to practice strategic mix of behavioral elements such as emotions of the target market, cues, among other influences. Understanding such will enable seller to approach the buyer using marketing information, persuasive enough and able to win the buyer’s trust and confidence towards the product and the seller as well. However, consumers’ behavior can also be influenced by other factors outside the above mentioned. The availability of substitute products in the market offered by competitors also offers a great influence to how consumer will behave in his/her buying process. Market structure is always determined by the type of product offered by a business firm, and the availability of competition from other firms with related products (Lynn, 3). These have been some of the key price determinants in the market. So, it is also important that online business entrepreneurs understand and put into consideration the type of market structure his/her business operates under. Areas of Demand for Innovative products Selfie Stick is one of the most current innovative online products, with relatively high demand among individual who need an extension holder of their phones whenever they feel to photos of themselves. Areas of demand of these online innovative products depend on the specific problems the product is intended to solve; the gap left in the market by other existing products and the efficiency alongside convenience that the innovative product is intended to bring to the consumer. The innovative product will be demanded where it has the potential of solving consumers’ problems that the existing ones fail to. Figure 1: Selfie Stick. Image by GETTY Images: (Winchester, 2016). Innovative products are fine adjustments of the existing products after the identification of the gap that is still left unfilled. Out of such, the innovative products will be preferred over the existing products. To increase demand for innovative products in online market, critical and comprehensive analysis of the market research, as influenced by the existing products in the market and the activities of the business rivals, are of great significance where demands for innovative products. Market research will help find the specific areas of weakness of the existing products and the gaps left in the market. By these, innovative products will be able to exploit the left gaps and build strength out of the weakness of the existing products and emerge to provide what they cannot provide. These can be price limits, taste, sizes, shapes, quality, and reliability, among others. Critically evaluating consumer’s response about such features and providing innovative products in compliance with the characteristics of the demands existing in the market will increase the quantity of the innovative products demanded. Therefore, to increase demands, I will consider providing products at the demanded sizes, shapes, color, taste, and even lower price with reference to marginal cost of production. Preparation and Start-up Implementation strategy for Online Business of Innovative Products Starting a business online to promote and sell innovative products is quite challenging considering the stiff competition in the market. However, with the following steps of preparing and implementing online business, innovative products can be promoted and sold online. The process includes: i. Identifying a need in the market. Here the existing related products are examined with respect to market conditions. Knowing what role the existing products play in the market, and the gape their leave unfulfilled is of great importance to figuring what the innovative products’ intentions are. This will secure a place in the market for the products. As been mentioned earlier, price, size, color, shape, and quantities, are some of the key areas to consider. With these factors, a product can be innovated to meet the requirement in the market and feel the gaps left by the existing products. Therefore, this is the determinant of business opportunity online. Innovated products are created to supplement or substitute the existing products. In this case, consumers need to extend the area of capture by their phone cameras. ii. Understanding the target market Conducting an extensive and thorough market research and analysis is the next step to starting an online business aiming for success. This will involve knowing target market characteristics such as culture, age, environment, perceptions, and location, among others. According to Holden (10), understanding these market conditions influence the designs of the innovative products, methods of marketing, and methods of delivery to meet the market locations, which in many cases are mobile. In is also imperative to understand the structure of market that exist for such products. This would be critically analyzing the activities of competitors and maximizing benefits out of the information. Selfie Sticks are normally demanded among students and young individuals. iii. Formulating business plan Business plan entail goals and objectives to be achieved by the business. It also addresses the activities that should be carried to ensure efficiency in business. This requires capital for commencing and carrying out business activities, which should also be included in the plan. Online business for innovative products would require have a website host. Website host should be carefully chosen to ensure it is efficient, reliable and trustworthy is such activities. It is also of significance to consider the popularity of the website host as this also influences the popularity capacity of online business. iv. Constructing a website and designing delivery modes To effectively promote innovative online products among targeted consumers, it is of importance, to consider the graphic features of the website and the product adds as well. Studies have related easily accessible websites with appropriate graphics, identifying with the target market’s culture and perception to be relatively influential towards the consumer buying behavior. Consumers tend to buy products presented with features identifying with their culture, age, and perceptions. However, website offering and promoting online innovative products has to contain some elements that will maximize its effectiveness. The website must have a clear message; a message that captures the attention of the intended consumers, addressing the benefits and other features of the products. The website should also contain persuasive information, giving directions to users as to what and how you would meet their expectations. It is also important to promote referral marketing via this website by being persuasive enough to make the users spread the information about the website and the products offered to others. Another aspect that should be considered at the start of an online business is delivery modes. Existing delivery methods in the market currently include downloads for cases of software products. This happens after the approval of payment via the electronic systems. For tangible products offered online, self-operated and third-party logistics and delivery is always used. Starting and managing a self-operated delivery system is relatively involving and requires much investment to establish. So, third-party logistics and delivery is a better choice for making deliveries for online products. This works in terms of payment on delivery (POD). The consumer assesses the product upon delivery, and then pays after approval (Teece, 174). Strategic Partnership in Online Business To effectively start and perform an online business to promote innovative products, strategic partnership is an essential factor to be considered. As mentioned earlier, operating business online requires a well-structured and designed website. However, the online performance of the business and popularity of the products offered majorly depend on the host partner. Through the host, the website can gain more users within a short duration, or can be stagnant at the start without any progress of visit by intended customers. Therefore, it is important to consider the following factors before creating a link with a host company. i. Track records of the host partner Conducting a survey to analyze the track features of the host partner gives vital information of whether the host will enable the success of the online business. Looking at issues such as the past and current clients they are hosting, performance of those partners, and if they do come back for other fresh contracts. ii. Reputation Reputation of the host company would entail such factors like whether the host company is recognized in the industry; whether they publish articles that majorly gain use in the industry, and whether the host company has a record of participation in major media events in the industry. iii. Competencies The host company should possess key competencies such as copywriting ability to create market oriented business content. Making use of social media should be a core characteristic for determining this. The host should also be able to expose the business to international market, creating international web links to enable the business gain popularity in among consumers in a wide market. This will also enable the business to overcome competition issues (Blue Fountain Media, n.p.). Therefore, before getting into partnership, evaluation should be done to ensure that the intended partners is a strategic one and has the potential of promoting the business to international online market. Apart from the host partner, it is also important to consider the above factors of reputation, track records, and competencies to assess and evaluate delivery and/or payment partner. They should be available, reliable, and trustworthy. Their services should also effective. These will allow the business operations to be efficient and overcome international market forces, such as competition, market share, and profit margin. Promoting and Recommending Innovative Online Products Getting innovative products known among potential customers is the key to maximizing sales. Sales and promotion approaches will enable the product acquire the needed publicity which will then allow the potential customers to evaluate its potential advantages over the existing products in the market. The current online market trends are characterized by stiff competition and different culture, taste and preference consumer characteristics that affect their buying behavior. To promote innovative products to gain success in the online market, considering the following will improves the popularity and sales of the products. Press and social media: Publicity is one of the fundamentals of overcoming competition and maximizing sales of an innovative product. Letting the potential consumer (target market) know the features and significance of the products over the existing ones will increases their chances of buying the product. This can be achieved through the press as well as social media, stating the features and advantages of the innovative products. Making good use of Facebook, Tweeter, and YouTube, among others. These areas have quite a good number of young peoples who are the intended consumers of selfie sticks. Blogger out-reach: Reaching out to known bloggers to address about the innovative product such, Selfie sticks, is a potential guarantee of the products’ publicity and subject of evaluation by the potential consumers. Referral marketing: Conducting referral marketing over the internet and physically will promote publicity of the innovative product. Getting individuals to positively talk about the products will maximized their demands and sales. Affiliate programs: Having individuals conduct sales for a commission is another way to promote sales of innovative products. The products will not only gain publicity but also gain demand. Tupperware Brands Company is one of the multinational businesses which started at that level, making use women affiliate programs. Email marketing: Starting automatic email response as a way to conduct marketing of innovative products. Email marketing is considered an effective way of marketing online product in the current trending market (Becherer and Halstead, 27). Recommending innovative product to existing and future consumers involves analysis of buying behaviors of the existing consumers. Getting to know why a specific group, age, and culture of consumers, uses a particular online product is important information to be used while recommending a new innovative online product. This involves understanding the issues solved or roles played by the product for the consumer. Knowing consumers’ characteristics best will be the key aid to identifying areas of interest as far as buying online products is concerned. Therefore, knowing the needs of a consumer and the features of the new product, and how it can meet the interests of the consumer, help design methods of recommending and promoting the product to the consumers. Online affiliate programs, as mentioned earlier, is one of the methods that recommendation measure can be applied. Referral marketing is also another method that can be used to recommend new innovative products for the existing and future consumers. Therefore, recommending innovative online products to existing and prospective consumers involves psychological examination of the interests of existing consumers, and promoting the products using ideas and information that best explain the solution potentials of the products to the consumers’ problems. Consumer Satisfaction Consumer satisfaction is all about meeting their expectations. For consumers to buy a product and feel satisfied, solutions to their issues or problems should be provided by the product and mode of making the product available to them. To maximize consumers’ satisfaction, it is important to conduct a consumer survey and analyze their preference and expectations. With this, a strategy to meet their expectations and solve their issues is possible. Selfie stick solves the problems of having to bother someone take a photo of you. With this innovative product, capturing your own image with the entire background feature you need it, is possible. Figure 2: Consumers taking photos of them using Selfie stick. Image by GETTY Images: (Winchester, 2016). One way of meeting consumers’ expectations is by making aware of the significance or roles of a product to their meeting their needs. Offering free online training and support on a particular online product, demonstrating and explaining why and how it should be used by the consumer is one ways of making them aware of the product. While promoting the products through adds in the media, it is imperative to give support information alongside the benefits associated with the product. Making use of feedbacks and comments from consumers to adjust to their needs is also another ways of maximizing their satisfaction. It is relatively easy to know what consumers expect from a product, and how it is purported to meet their needs. This will also make them feel involve in designing measures to meet their expectations and solve their problems as far as online products are concerned. Consumer satisfaction can also be maximized by justification of the product with social proof. This is achieved by supporting an online product with comments from other users or companies. Buy this, consumers will feel comfortable with the product and see how the product has, to other customers, solved needs issues. Offer consumers with promotions and bonuses. Coming up with promotions while conducting sale, and attaching the product offered with a bonus; mostly as a sample of another new product introduced into the market; motivates the consumers and enhance trust and loyalty between the consumers and the product and/or company. This is also a ways of promoting sales since promotions and bonuses, set buying targets for consumers and promote meeting sales targets for the company. In conclusion, online business and promoting online innovative products require knowledge of the market and intended consumers; strategic implementation, and strategic partners, to enable the business gain success aimed for. Works Cited Becherer, Richard C. and Halstead, Diane. “Characteristics and internet marketing strategies of online auction sellers”. International Journal of Internet Marketing and Advertising, Vol. 1, No. 1. (2004): Print. Blue Fountain Media. “Results-Driven Website Design, Development & Online Marketing”. (2010): Print. Constantinides, Efthymios. “Influencing the online consumer’s behavior: the web experience”. Internet Research, Vol. 14, No. 2. (2004): Print. Holden, Greg. “Starting an Online Business for Dummies”. New Jersey: John & Sons Inc. (2013): Print. Lynn, Michael. “Segmenting and Targeting Your Market: Strategies and Limitations”. The Scholarly Commons. (2011). Teece, David J. “Business Models, Business Strategy and Innovation.” Long Range Planning, (2010): Print. Read More