E-commerce And Marketing - Coursework Example

? Executive Summary The rationale behind this report involves how E-commerce and marketing implicates Business-to-Business (B2B), Consumer to Consumer and Business-to-Consumer (B2C) models of electronic commerce (Chaffey, Dave). The company selling goods and services may prefer internet way of marketing and doing transaction because of its efficient and effectiveness to the consumers or the suppliers. However, this report will examine the impact of electronic commerce and marketing in the commercial activities of the companies and management issues that might t arise from electronic commerce and adopt the crucial ways to address those issues that might be regarded as critical to the company by management. The main objectives and aims of this report is to show the important of e-commerce and marketing and how it has effects towards the product and services towards the consumers or customers. Table of contents Executive summary……………………………………………………………. Introduction……………………………………………………………………. Strategies involved by the company…………………………….. a. Marketing strategies…………………………………………… b. Pricing / quality strategies……………………………………… c. Agency relationship existing between e- commerce and business… Model…………………………………………………………………. Findings……………………………………………………………….. Analysis…………………………………………………………….. Summary……………………………………………………………. Conclusion…………………………………………………………. Recommendation………………………………………………….. References…………………………………………………………. Introduction The companies engage in e-commerce and marketing strategy in order to gather information from the customers regarding the quality of services and goods provided and do any adjustment if recommended in order to satisfy the needs and wants of the consumer (Dholakia, Nikhilesh). The companies selling goods and services may prefer internet services in marketing and doing economic transaction with other businesses or to customers because of its efficient and effectiveness to the consumers or the suppliers. E-commerce and marketing have played an important role in marketing and promoting businesses throughout the world through websites namely Facebook, blogs, YouTube and twitter etc. this social media websites provides opportunity to connect and to communicate with customers all over the world on a more personalized. This report also tries to evaluate how marketing and e-commerce websites for companies provides viewers with fresh and updated information about new products, innovations, offers and programs that the company is undertaking at any moment (Dholakia, Nikhilesh). This provision of current and updated data to viewers encourages clients to visit the Company’s website, which results into increased sales and advice the company of any changes to be made to the product or to the services for their satisfaction. When marketing services or products, a company must ensure that there is production and purchase of products and services at the right time by the consumers. These products must meet and deliver the required quality standards and performance specifications for the customers’ satisfaction that might be done through internet. In this process, companies must ensure it has sufficient stock that meets the demands of the customers. In addition, the products must reach the customers in a timely manner and a perfect condition. However the e-commerce and marketing process will enable the company to interact with customers and improves their satisfaction, as it establishes clear business strategy and process. The company does this by ensuring that it meets the dynamic customer expectations. The plans enhance internal company evolution, while maintaining the set standards of compliance. Marketing agencies have to include media in their plans because the media can affect the demand of the products of a company in either way. Media can raise the demand for a product or service by delivering positive information or propaganda to the target consumer market. The social media have developed into a site that has the power to spread the word of mouth to a wide coverage of consumers within a short time. Companies have established their sites on social media such as Twitter and Face book as a way of marketing themselves, but have not acquired a deep understanding of how to use social media in interacting with its clients and target consumers, in terms of expanding brand recognition, raising the level of sales and profitability, and enhancing consumer loyalty Companies need to realize the nebulous nature of social sites. It has become an evident fact that consumers often go online to discuss brands, products, seek advice on consumption goods and services, and find guidance from other consumers and also from the companies producing that product (Chaffey, Dave). Consumers tend to trust their colleagues on social sites who provide information on consumer goods, their quality, the side effects, and any other information that is available on the social sites. Companies must consider devoting resources to the use of social media, especially in marketing services and products that they offer. Social sites have a wide coverage of consumers. This means that the company will incur minimum transport costs and any other cost incurred in moving from one part to another in the effort of reaching the diverse niches of consumers. Social media are the cheapest way of accessing consumers from a wide range of the geographical area. It is also a strong way of convincing buyers to purchase or consume the products of a company, since people tend to believe items that are on their favorite social sites. Companies must embrace social media in the pursuit of increasing the sales or the purchases by the consumers. In order for the companies to reduce losses it requires it to identify the market targets, a SWOT analysis of the company, formulation of company marketing strategies and tactics, and an examination of the success of the plan. Strategies Involved By the Company a. Marketing strategies The company involving e-commerce and marketing in its operational, it should ply its trade in a number of market segments, both in both the kind of products it deals with or the services. Through e-commerce and marketing strategy of the firm it should promote favorable technique and challenge which is accessible by every customer. The company can invest in research and development and come up with superior models of products and services that will outweigh its competitors in the market that are producing similar goods and services. The increasing number of competitors that provide similar products and services can be overcome by the company by a need to change marketing approaches. The main objective of this should be to understand the wants of the consumer and the market place, and bringing the information to all departments in the organization. The marketing communications department should also consider the objective of innovating and inventing the products that will be easily be distinguished by the consumers. This means that the company has to shift from using outdated advertisement techniques and embrace marketing strategies that can communicate to a large market segment at a low cost b. Pricing / quality strategies Through e-commerce and marketing of the company it’s able to recognize the competitors pricing technique and the quality of its product and either lower or increase the prices and the quality of the company respectively (Dholakia, Nikhilesh). The company also should consider revising its competitive strategy from the current high-price/high quality strategy, to a relatively low price strategy. The company must also be on the records and observe that high price strategy does not survive during harsh economic times therefore it should lower prices since the low purchasing power of consumers during an economic depression or any other shake-up in the economy affects sales of any company that pursues a high-price strategy c. Agency relationship existing between e- commerce and business The growth of the e-commerce and technological development has made innovative business interaction and improved its activity this is due to distinction of strong and weak ties on the business. Also the willingness to share information worldwide has helped the businesses to acquire new and efficient equipment to increase productivity. Furthermore e-commerce has helped the businesses to increase their sales through communicating and gathering information from customer from many parts an act on them as possible (Chaffey, Dave). Social media provider has also helped the business to keep their performance, literature and even business directories. The development of e-commerce by the business will enable the business to create and develop strong associations with their customers and other social media participants and skills and knowledge can be gained on the plans to develop and maintain the brand loyalty to its potential customers. The model This report bases its findings on the two factor model, alternatively called the e-commerce and marketing strategy that the company imposes in order to remain profitable in the market. This is also based how E-commerce and marketing implicates Business-to-Business (B2B), Consumer to Consumer and Business-to-Consumer (B2C) models of electronic commerce. The company selling goods and services may prefer internet way of marketing and doing transaction because of its efficient and effectiveness to the consumers or the suppliers. Findings Business uses E-Commerce and Marketing to dispose their products and services listing their prices and their quality as well. The customers and businesses expresses benefits that they have yields from visiting the companies websites and blogs to get information about their products and services. Development of e-commerce by the business will enable the business to create and develop strong associations with their customers and other social media participants and skills and knowledge can be gained on the plans to develop and maintain the brand loyalty to its potential customers. No. of consumers No. of suppliers Marketing through media 320 430 Non media marketing 30 70 Total 350 500 From the charts above 91% of the consumers get their make orders and get products and services through media. 9% of the consumers get the information from agents and even physical appearance to the firm producing those products and services. The above chart shows that only 86% of the suppliers get into contact with the customers and other suppliers through media or e-commerce and marketing. Analysis From the above findings it can be analyzed that the businesses that uses e-commerce and marketing strategy to campaign for their products are more productive that those who do not use them because they use the modern technologies and sites that most customers and other businesses use to make orders and remarks about certain products. It has become an evident fact that consumers often go online to discuss brands, products, seek advice on consumption goods and services, and find guidance from other consumers and also from the companies producing that product. Consumers tend to trust their colleagues on social sites who provide information on consumer goods, their quality, the side effects, and any other information that is available on the social sites. Moreover through this the company’s performance shows some increment in terms of revenues performance and productivity as general. Summary The company selling goods and services may prefer internet way of marketing and doing transaction because of its efficient and effectiveness to the consumers or the suppliers. Moreover e-commerce has helped the businesses to increase their sales through communicating and gathering information from customer from many parts an act on them as possible(Chaffey, Dave). Social media provider has also helped the business to keep their performance, literature and even business directories. Conclusion In conclusion, E-commerce and marketing have had an important impact in Business-to-Business (B2B), Consumer to Consumer and Business-to-Consumer (B2C) models of electronic commerce. Also the media is one of the key determinants of the purchasing decision of the present consumer. Consumers in the present society will want to look for information about a product or service from any available source that appears to be reliable. For many consumers, the media appears as one of the independent and reliable in situations that can offer information to the public without bias. Unfortunately, some media companies have taken advantage of the trust that consumers have bestowed on them, to manipulate the consumer into purchasing products and services unwillingly. The media companies achieve this by delivering faulty information on the real identity of the products and services to the target market (Dholakia, Nikhilesh). E- Commerce is necessary to a business since it helps in spreading information from one person worldwide. Through this business have greatly marketed themselves and increased profit since the negative and positive responses they get encourages them to develop or maintain the loyalty of the customers. Recommendation The company must redesign the website requirements by considering the preferences of users rather than the company requirements (Chaffey, Dave).Through this business have greatly marketed themselves and increased profit since the negative and positive responses they get encourages them to develop or maintain the loyalty of the customers. The company should also redesign the website and make it user friendly. Users must be able to access information easily all over the world about the quality and prices of the products and services provided by that company. References Chaffey, Dave. E-business en e-commerce : een managementperspectief. S.I: Pearson/Prentice Hal print, 2004. Dholakia, Nikhilesh. Global e-commerce and online marketing : watching the evolution. Westport, Conn: Quorum Books print, 2002. Read More