E-Commerce Marketing - Gamebot Inc - Research Paper Example

? E-Commerce Marketing Plan Executive Summary The staggering growth experienced by the computer and video game industry is reflected in the statistics from 2008-2013 which report an average 7.4% increase in revenue generation for gaming companies. With the expansion of the North American gaming industry expected to continue in coming years, Gamebot Inc. understands that the present conditions are ideal to launch its E-commerce website Gamebot.com in the region. The service essentially acts as an intermediary between buyers and sellers and allows avid gamers to receive a decent price on computer/video games that they no longer use. By using Gamebot’s service, potential customers can maximize value by securing their finances as the company does not charge the customers with any listing fee. In this manner, customers are ensured that they are only liable to share 7% of the final selling price with the company once the transaction is successful with no hidden or additional charges for the using the tool. 2. Market Summary Gamebot Inc.’s main market is the European computer and video game industry which is the second largest gaming market in the world (National Research Council U.S, 2010). Gamebot Inc. has been serving the European gaming market since its inception by predominantly providing the company’s European customers with games that are produced by European, North American and Japanese organizations. Through the execution of an effective and comprehensive marketing strategy the company aims to enter the largest gaming market in the world, which is that of North America (National Research Council U.S, 2010). The existing scale of the global gaming market is immense, with data reporting that the worldwide revenues produced from PC and videogame software surpassed a staggering US$46.5 billion in 2008 alone (Stanoevska-Slabeva, Wozniak, Ristol, 2010). As stated by Michael D. Gallagher, President and CEO of Entertainment Software Association of the United States “no other sector has experienced the same explosive growth as the computer and video game industry” (Entertainment Software Association of U.S, 2013). According to the report presented by the Entertainment Software Association of U.S (2013), 58% of citizens in the United States play video games, with 51% of households in the country having ownership of a gaming console that is used by an average of two gamers per household. Furthermore, Gamebot Inc.’s entry into the North American gaming market presents numerous expansion opportunities for the company through the launch of its E-commerce website because of the augmented development in the Canadian video game industry, which is responsible for increasing the country’s GDP by $2.3 billion (Entertainment Software Association of Canada, 2013). According to the statistics provided by Entertainment Software Association of Canada (2013), 40% of video game organizations in the nation expect more than 25% projected growth in the period of 2014-2015. These characteristics of Gamebot Inc.’s target market are critical to the organization’s decision regarding the exploration of the potential market which primarily comprises of the U.S and Canada. 2.1 Market Segmentation Even though, the European and North American gaming industries are characterized by the presence of certain similar features, the presence of which could enhance the company’s chances of success in the target market, it should be stated that several elements in the two markets are dissimilar in nature. Kotler and Armstrong (1991) understand that market segmentation can work as a successful tool in this scenario because the application of this concept allows companies to segregate large and varied markets into smaller sections in order to ensure that consumers within the market are served in an efficient manner in accordance with their distinctive requirements. Market segmentation can be conducted on the basis of four key segmentation variables: geographic, demographic, psychographic and behavioral (Kotler and Armstrong, 1991). The following discussion focuses on the market segmentation of Gamebot Inc.’s target market. 2.1.1 Geographic The target market of the company with regards to this segmentation variable can be classified on the basis of world region, which is that of North America. 2.1.2 Demographic According to the statistics provided by the Entertainment Software Association of U.S (2013), the mean age of gamers is 30 and the age categories of gamers are defined as less than 18 years, 18-35 years and 36+ years. Even though, general perceptions regarding the gender of gamers are suggestive of the opinion that female gamers comprise of a negligible segment of the market, this assumption is not validated in the case of the North American gaming industry. In fact, the gender distribution of Canadian gamers constitutes of 54% of males and 46% females (Entertainment Software Association of Canada, 2013), while, the division in the U.S gaming industry is 55% males and 45% females (Entertainment Software Association of U.S, 2013). 2.1.3 Psychographic Individuals who choose to live by a ‘gaming’ lifestyle can be described through the usage of several attributes because the key motivation behind gaming is not uniform for each and every individual. However, if the scenario is examined from the perspective of the majority, the target market can be described as extroverted, compulsive, enthusiastic and technology oriented. 2.1.4 Behavioral The behavioral characteristics of a consumer can be assessed in the light of various subcategories such as: rate of usage, loyalty status, attitude towards the product and the stage of readiness. The market that is being targeted by Gamebot Inc. aims to attract consumers who can be identified as medium to heavy users of computer and video games. Moreover, the target consumers also demonstrate a strong loyalty towards the product or a video game series as they are enthusiastic about the game’s release and are therefore, intending to purchase the game as soon as it is available online at an E-commerce website such as Gamebot.com at a discounted rate which provides maximum value. Moreover, dedicated gamers who wish to sell their old games at lower prices in exchange for a game that they have not played before can also be categorized as heavy users of the product. 3. Competition The chief competitors of Gamebot in the United States are Amazon and Ebay. Moreover, the company is also expected to face stiff competition from the same E-commerce websites in Canada in addition with Canadian classifieds website Kijiji. The company’s key competitors abide by a business model that is primarily business-to-consumer, where businesses are provided with an opportunity to access a large clientele through an online medium. On the other hand, Kijiji as a website which allows individuals to post classified advertisements operates in accordance with a business-to-consumer and consumer-to-consumer model and can be identified as major competitive threat to the company in the Canadian market because of its consumer-oriented business approach. The differentiating feature of Gamebot Inc.’s gaming website is that the only fee which is charged by the company for rendering its services is a 7% commission which is calculated as a percentage of the selling price of the computer/videogame. This implicates that unlike, the company’s competitors who charge a listing fee for a certain number of postings by the seller, Gamebot.com provides sellers and buyers with an opportunity to interact and communicate before the transaction is successfully completed. Therefore, unless a contract between the two parties has not been approved the company is not entitled to any share of the selling price or an extra charge. In comparison with the services that are being provided by Gamebot’s competitors, the company’s services are fairly unique. These features include the availability of an exchange service which permits consumers to trade their computer/video games. This characteristic reaffirms the status of this E-commerce tool as the ideal intermediary between the sellers and buyers of videogames through the online medium. Given the dynamics of the North American gaming industry, Gamebot.com can be marketed as an exclusive online portal for avid gamers to assemble the extensive clientele of the region under a single platform. 4. Specific Marketing Strategies This section discusses the specific marketing techniques that can be implemented to achieve the designated objectives of Gamebot Inc. to expand the company’s customer base in a new geographic region that is characterized by the presence of extensive growth and stiff competition. In addition with this observation, these marketing strategies can also be applied to enhance the service experience of existing customers in the region of Europe. 4.1 Online Advertising The launch of a successful online advertising campaign is critical for the achievement of two goals; informing the customers about the website and persuading them to utilize the services of the website as opposed to competing platforms. The online advertising campaign for Gamebot’s launch in North America is based on the concepts of digital marketing, the placement of web banners and the integration of Google Adwords to receive maximum exposure. The web banners must be placed in a range of selected gaming forums which receive maximum traffic and have a majority of users belonging to the United States and Canada. The most popular forums that are used by gamers in Canada include NeoGaf, RedFlagDeals, CanadaComputers and CanadianOnlineGamers. On the other hand, U.S-based websites that could act as ideal platforms for online advertising and placement of web banners include USAGaming.net, PCGamer forums and EA forums. 4.2 Social Networking The proposed social networking strategy for Gamebot is characterized by enhancing the company’s presence on various social networking tools namely Facebook, Twitter and Google +. As of now, the responsibility of managing the company’s Facebook, Twitter and Google+ pages should be assigned to a social media manager. The expertise of an effective social media manager encompasses a comprehensive understanding of utilizing each tool to gain maximum exposure on the internet. In the present scenario, Twitter can be used as a fundamental tool to gain prominence as it can assist a business in gaining direct access to potential consumers which is an unlikely in the case of platforms such as Facebook and Google+. This notion postulates that because of the privacy settings of the aforementioned mediums many users choose to display limited information of their interests and preferences. On the contrary, a social media manager can identify potential customers on Twitter by viewing the followers of specific verified gaming pages (e.g. Electronic Arts, Call of Duty and Assassin’s Creed) and following them to increase chances of exposure and viewership. Moreover, effectively using Twitter hash tags on a gaming related topic can also increase the page exposure and increase followers. 4.3 Blogs The maintenance of a dedicated Gamebot blog must be conducted in order to keep existing customers updated and inform potential customers regarding new offers such as discount codes, vouchers and sale. The link of the blog must be marketed on a regular basis through the company’s Facebook and Twitter pages. Moreover, the blog should not only be viewed as a specific marketing tool by the company but user traffic on the platform can also be increased by updating the blog with gaming-related news such as new releases, upcoming events and exhibitions that are being organized both locally and internationally. This aspect would thus motivate gamers to view the blog as a source of information and updates and the increased user traffic which is prompted by this factor would likely enhance the chances of a discount offer or promotion being viewed by a user who eventually decides to make the purchase. 5. Measuring Success Since, the primary objective which the company aims to advance in the target market is that of gaining exposure and increasing the number of transactions, the success of the market strategy implementation would be assessed on the basis of online transactions that are completed. A successful online transaction between the buyer and the seller only occurs once 1) the final selling price has been agreed upon by both parties 2) the seller has received the prepaid envelope sent by the company and 3) the item has been shipped to the buyer. Furthermore, the effectiveness of the E-commerce marketing plan is dependent upon the total number of sign-ups on the company website; this includes sign-ups for account creation and for receiving the official company newsletter which contains new offers and information for potential customers. 6. Summary With the launch of its services in the United States and Canada, Gamebot.com aims to provide its customers with a premier gaming marketplace which can act as an online platform for interaction between buyers and suppliers. The website has been established with a view of providing maximum value to customers by offering the best deals at the most affordable prices that are unavailable on competing platforms such as Amazon, eBay and Kijiji which are not exclusively gaming oriented E-commerce websites. Thus, Gamebot.com can be identified as an exclusive E-commerce tool that caters to a niche market of gamers who wish to advance and enhance their gaming experience while, gaining maximum customer value without paying extra charges. As stated previously, the specific focus of Gamebot is to serve the gaming community and this notion is also reflected in the company’s marketing strategies in North America. Therefore, each and every marketing technique that has been suggested in the plan is closely related with gaining prominence through gaming-related social media pages and advertising on gaming forums. Top of Form Bottom of Form Bottom of Form References Entertainment Software Association of Canada. (2013). ESSENTIAL FACTS ABOUT COMPUTER AND VIDEO GAME INDUSTRY. Retrieved November 15, 2013, from Entertainment Software Association of Canada: http://theesa.ca/wp-content/uploads/2013/10/Essential-Facts-English.pdf Entertainment Software Association of U.S. (2013). ESSENTIAL FACTS ABOUT THE COMPUTER AND VIDEO GAME INDUSTRY. Retrieved November 15, 2013, from Entertainment Software Association of U.S: http://www.isfe.eu/sites/isfe.eu/files/attachments/esa_ef_2013.pdf Kotler, P., & Armstrong, G. (1991). Principles of marketing. Englewood Cliffs, N.J: Prentice Hall. National Research Council (U.S.). (2010). The rise of games and high-performance computing for modeling and simulation. Washington, D.C: National Academies Press. Stanoevska-Slabeva, K., Wozniak, T., & Ristol, S. (2010). Grid and cloud computing: A business perspective on technology and applications. Heidelberg: Springer. Read More