Effect of E-Business on Marketing Strategies - Case Study Example

Amazon.com becomes the first mover in the e-retailing market proposing a wide product range to diverse customer targets. E-business allows the company to connect customer service and good levels, increases customer satisfaction and decreases retention artistries. The main strategy is a virtual bookshop which helps the company to promote and sell its products to customers. Similar to traditional marketing, a virtual bookshop allows customers to review product details and analysis, read about the main characteristics and qualities.

In contrast to traditional marketing, a customer sees only an image of the product. Following Archer et al (2002) "Various information systems can be used to process transactions, collect and analyze data. Technology-based tools have helped marketers perform their marketing strategies more efficiently and effectively in the traditional marketplace" (73). In contrast to traditional marketing, Amazon.com proposes a greater range of titles to choose from. Customers have twenty-four-hour access to book, table of contexts and reviews.

They can order the book from any parts of the world and at comparatively low price. Also, e-business allows Amazon to establish a competitive price through lower transaction costs. Customer service therefore plays a pivotal role in e-business. Getting this role right, and to a standard of expertise that is superior to that of competitors and sustainable in the longer term, requires an in-depth understanding of the nature and nuance of customer service. Knowing customers means closing the loop between the messages sent to them and the messages they send back.

The personalization of the service allows Amazon to create a core of brand supporters and increase its sales. Core information builds and provides access to the books catalogue (Turban et al 2004). The customer database also provides added-value information. Core handling and processing maintains payment services between the company and its customers whether they be readers, publishers, resellers or authors. This function also covers shipping and delivery administration. From this configuration, the process of publishing and book selling became much more dynamic than the linear model that was the traditional industry model.

The Internet has allowed each party in the process to interact with each other with more intensity (www.amazon.com). In contrast to traditional marketers, Amazon has wide possibilities to gather information about target groups and is able to make customer-specific recommendations, analyze their demands and needs. The customer database is used as a marketing tool in targeting existing customers and pursuing potential new ones. Amazon services (web-site and delivery service) are accessible for a large number of households and individuals.

Delivering content gives more detailed information on an offer and goods; enabling transaction leads direct to a sale. Shaping attitudes can help build brand awareness, and solicit response. An advertisement may be intended to identify new leads or as a start for two-way communication (Archer et al 2002). In these cases an interactive advertisement may encourage a use to type in an e-mail address. In contrast to tra