E-commerce Marketing Strategies - Literature review Example

E-Commerce Marketing Strategies Name Institution Date E-commerce Marketing Strategies Background According to Evans & Knight (2014), E-commerce marketing strategies have played a big role for businesses in growing their business. This has been achieved by the use of e-commerce to increase customer base. E-commerce involves the establishment of an area whereby a business defines and designs a site in the internet for the purpose of reaching a targeted audience that has a common interest. E-commerce has enabled businesses tailor their products and services according to customer’s interests as well as preferences (Grzywaczewski, Iqbal, Shah & James, 2010). For businesses to venture successfully in e-commerce it is important to define their company’s niche markets so as to penetrate with offerings that are specialized online. It is important to note that, a winning e-commerce makes use of content that is crowd sourced so as to make the sites interesting and sticky for potential customers. Therefore, it is important for businesses to adopt a strategy that will enable potential customers find them through Google. According to Liu & Lu (2011), to ensure that customers are fully attracted, businesses should employ the use of appropriate brands to design their sites together with navigation which is well structured in e-commerce. Providing a browsing experience which is enticing across different platforms online will enable businesses achieve their goals on increased customer base as increased sales. Despite the many advantages that business gain from online marketing, e-commerce also raises problems that need to be addressed to ensure that it works for the advantage of business. It is evident that, innovative technologies such as the Web has changed the business environment and dramatically impacted on the future of e-commerce. Power has been shifted towards the consumer and this has led to major changes in the way businesses are relating to customers while competing with one another. The articles that are presented in this assignment are related e-commerce marketing strategies and how businesses can employ these strategies to achieve an increased customer base online. Wen, Chen & Hwang (2001) describes how businesses have benefited from adopting the Web as a means of promoting commercial dealings. The researchers in this article argue that, businesses have been able to use innovative methods of carrying out business. This has helped companies market themselves effectively on the Web and thereby achieving distinct advantages. Furrer &Sudharshan (2001) evaluates how the use of internet has contributed in making a brilliant future for researchers in marketing. Mukhopadhyay & Mishra (2011) argued that, e-commerce is a technology which is emerging and its impact is being experienced in business with results that are tangible. The article focuses majorly on various e-commerce issues such as integration, security, paradigms as well as infrastructure. Shin (2001) demonstrates how businesses are yet to recognize profits as a result of using e-commerce. The researcher argues that, since many companies who are doing business online are still investing and building their brands, they have not yet realized profits from the use of e-commerce. Businesses are recommended to change their focus from consumer base building to increases in growth of revenue as well as profitability. Constantinides (2002) criticized the tool for traditional marketing management which is mostly used, the 4Ps of the marketing mix framework. The researcher uses the objections to this framework as the basis for physical marketing. This article journal recommends the use of the 4S Web marketing mix model by businesses to market their products online. Research Issue(s) and Identified problems In their article journal, Wen, Chen & Hwang (2001), the researchers describe two strategies of e-commerce Web site design that managers can use in promoting their businesses online. The article journal also discussed twelve models of commerce that businesses can use to gain a distinct advantage in the market. In the article journal of Furrer &Sudharshan (2001), the researchers describe eight designs that marketers can use to carry out internet marketing using a typology of internet marketing surveys. This study also discussed various problems such as sampling problems that marketers can experience when using the typology of internet marketing surveys as a tool for developing research through the internet. This article journal argues that, identifying the problems entails a seven step procedure that should be followed during the sampling process. The article journal written by Mukhopadhyay & Mishra (2011) elaborates in depth, the e-commerce paradigms which include Business to Business as well as Business to Consumer as strategies from marketing businesses online. The researchers in this article journal also raised security concerns and described the importance of integrating infrastructure with legacy system. The article written by Shin (2001) says that, re-evaluation of business strategies is vital as well as developing other strategies that guide businesses in achieving profitability. To help in identifying internet marketing strategies for e-companies, this article journal used the four marketing mix model of McCarthy and the five competitive forces model of Porter. The researcher stated that, by responding to the five competitive forces, businesses are able to achieve a competitive advantage. The researcher was highly interested in developing and implementing strategies for e-business that contributes to increased profits of the company As described in the article journal of Constantinides (2002), the application of the traditional approach of 4Ps paradigm in virtual marketing is a poor choice. The article presents two disadvantages that the framework posses to online environments including; the role of the 4Ps is reduced drastically and that the model does not have any elements of strategy. The researcher noted that, to achieve success in e-commerce, there is need to fully integrate the virtual activities within the physical strategy of the business, in the marketing plan as well as the processes of the organization. The paper demonstrates that, the framework of Web Marketing Mix is a source of a conceptual basis which is sound and functional and can be used to design, develop as well as commercialise Business-to-Consumer projects online. Marketing Theory/Theories Wen, Chen & Hwang (2001) describes two strategies of e-commerce Web site designs that managers can use in promoting their businesses online. These designs are the informational or communication strategies and the online or transactional strategy. The informational strategy of Web design focuses on supporting without replacing the main activities of a business. Other than marketing themselves on the Web, companies also use other traditional methods of advertising as well as marketing to enable them achieve their business as well as marketing objectives. The online strategy of Web design focuses on providing an electronic catalogue that businesses can use to sale their products. Customers visit the Web and browses throughout the catalogue after which they order their products online. Furrer &Sudharshan (2001) developed a typology of internet marketing survey designs that were based on a combination of different objectives, sampling unit and method of data collection of the survey to come up with eight designs that marketers can use to carry out internet marketing. Mukhopadhyay & Mishra (2011) elaborates in depth the e-commerce paradigms which include Business to Business as well as Business to Consumer. The business to business paradigms involves online buying and selling of companies through the automation and streamlining of the buying and selling process of products. The researchers argued that, Business to Business e-commerce strategy enables companies to update their business data and makes the availability of product information globally. The business to customer paradigm involves companies selling their products to customers over the internet for their personal use. Companies need to learn from customers, price the business within the internet market and learn how to asses risk. The article written by Shin (2001) says that, re-evaluation of business strategies is vital as well as developing other strategies that guide businesses in achieving profitability. To help in identifying internet marketing strategies for e-companies, this article journal used the four marketing mix model of McCarthy and the five competitive forces model of Porter. By responding to the five competitive forces, businesses are able to achieve a competitive advantage. The McCarthy's Four Marketing Mix Model stipulates that, in developing its marketing strategies, a business needs to identify the target market for its products and services after which a marketing mix is developed by combining product, price, promotion as well as place functions (Goi, 2009). The Porter's Five Competitive Forces Model demonstrate that, companies develop business strategies by responding to the five primary forces of including; the threat of new entrants, rivalry among existing firms within an industry, the threat of substitute products and services, the bargaining power of suppliers, and the bargaining power of buyers. The article journal of Constantinides (2002) used the application of the traditional approach of 4Ps paradigm in virtual marketing as a poor choice of e-commerce marketing strategy. This article journal presents two disadvantages that the framework posses to online environments including; the role of the 4Ps is reduced drastically and that the model does not have any elements of strategy. The 4P marketing mix model is not applicable in e-commerce. A better model known as the 4S Web marketing mix model was developed to replace the 4Ps since it is applicable in e-commerce. Major findings In the article journal written by Wen, Chen & Hwang (2001), i found that, there are twelve models of commerce that businesses can use to gain a distinct advantage in the market including; the brand awareness and image building model, cost saving model, promotion model, info-mediary model, brokerage model, mall model, advertising model, subscription model, community model, customization model and the manufacturer model. I established that, the article journal presented by Furrer &Sudharshan (2001) demonstrates eight designs of internet marketing including; drawing a sample of Web pages after the content of the selected pages have been observed by the researchers, drawing a sample of Web pages using a two stages of sampling procedure, drawing a sample of Web sites for the purpose of studying the internet as a tool for observation marketing at higher level than that of Web page, drawing a two samples of designs, one for customers and one for Web sites or pages for the purpose of obtaining the address of the firms after which a questionnaire is sent to the firms. A sample of internet users can also be drawn for the purpose of sending them a questionnaire through the mail or through an internet address where the questionnaire is located, a sample of web sites and another one for internet users can be drawn whereby internet users are requested to pay a visit to the web sites that are selected from which they can fill a questionnaire on their experience with the selected websites and lastly drawing an experimental design for carrying out an internet marketing survey. In my review, a seven step method of identifying the problems of sampling by using a typology of internet marketing survey designs was developed. In my view, since internet is ever changing, marketing managers may experience the problems when coming up with the samples. I also found out that, search engines can be used to obtain evidence of problems that can be found in the sampling units. In the article journal written by Mukhopadhyay & Mishra (2011), i found that, to achieve the best, Business to Business e-commerce strategy must employ tactics such as; proper marketing, great products, strategic partners, channel management and solid technology (Barkley, Markley & Lamie, 2007). I also established that, there are several challenges that companies experience when using the Business to Customer strategy of e-commerce such as; getting the browsers to buy the products, building customer loyalty as well as fulfillment. In the journal article presented by Shin (2001), in my view, the internet has an impact on the marketing mix and the competitive forces because it lowers the entry barriers for new competitors dramatically. The internet also alters the firm’s offerings of products and cost structure that leads to changing in the basis of competition. I found that, there are various e-business strategies that marketers can use to achieve competitive advantage for a company. The product strategy enables consumers to gain information about products and services fast using the internet without the need of moving from one shop to the other to compare prices and inspect products. The price strategy aims at enabling customers to make comparisons of products, prices as well as services from different suppliers over the internet. The promotion strategy aims at enabling businesses carry out a mass marketing of different brands of products through the internet. The place strategy is usually aimed at reducing the transaction as well as distribution costs of businesses by using the internet to deliver their products and services. In the article journal by Constantinides (2002), i found that, there is incompatibility between the traditional marketing mix paradigm and e-commerce. The reason is that, the four elements of the mix are highly related in the virtual market place whereby the customer experiences all intentions and purposes at the same time. The best e-commerce marketing strategy suggested was the 4S Web marketing mix model. It identifies the critical elements of online marketing and focuses on addressing the main e-commerce issues based on these factors. Implications for Marketing Managers The article journal written by Wen, Chen & Hwang (2001) provide marketing managers with different strategies and models of e-commerce that can be used to promote their businesses through the internet. This will enable companies to save of costs, increase their revenues and incorporate customer relationships in commercial Web site designs. According to Furrer &Sudharshan (2001), the use of a typology of internet marketing survey designs provides marketing managers with eight designs of internet marketing. However, they are required to use the seven procedure method to identify problems in the sampling unit. Therefore, marketing managers must be very careful when using this tool. In the article journal written by Mukhopadhyay & Mishra (2011), the use of Business to Business e-commerce strategy enables marketing managers to access information concerning products, customers, suppliers, product process, transportation, inventory, supply chain alliance, competitors, sales and marketing as well as supply chain process and performance. To achieve success using the e-commerce strategy of Business to Customer, marketing managers need to apply six key steps including; assessing customer needs, creating a usable, targeted and sticky web site, integration, innovate with Web applications and real-time transactions, partnerships and continuous learning. The article journal presented by Shin (2001) has implications on how marketing managers should choose e-business strategies. When choosing e-business strategies for a company, marketing managers should not consider one business strategy since the competitive advantage sources are different considering that there are different markets and industries. Marketing managers should use a combination of strategies of product, promotion, price and place that are appropriate so as to achieve competitive advantage for the company. The study carried out by Constantinides (2002) has implications in marketing since it requires marketing managers to integrate the four elements of the Web marketing mix model. Businesses should understand that, the web marketing mix model is a proper model for basing the Web strategic and marketing planning. Recommendations Wen, Chen & Hwang (2001) recommended that, the use of e-commerce by businesses should not only be based on only doing business through the internet. It should also include changing the methods that companies use to perform their business. Companies should embark on creating new business models and transforming the traditional models. Furrer &Sudharshan (2001) recommend that the typology of internet marketing survey designs should be used with cautious. The researchers recommended the use of search engines by marketing managers to help in establishing problems that can be found in the sampling units. Mukhopadhyay & Mishra (2011) recommends that, in order to get the best return on investment using Business to Business e-commerce strategy, businesses are recommended to add on time delivery of products and flavor using various strategies such as direct marketing, relationship marketing, internet marketing, channel management, technology, partners and products. The researchers also recommended that, in order to boost the Business to Customer conversion rate, marketing managers need to improve on navigation, simplify the check out process by using a one step check out and passwords that are easily replaceable. Sending out emails that have special offers will also help marketers boost the conversion rate of Business to Customer e-commerce strategy. To build customer loyalty, marketing managers can focus on personalization using a wide range of software packages that are available. This will help in building e-commerce sites that are unique to target particular customers. They can also create a service application which can be easily used by customers like the use of live chat and phone number. Businesses should also focus on making their sites easy to use by customers. Shin (2001) recommended that, unique strategies should be used for different companies and a further research to be undertaken for the purpose of addressing the problems that traditional firms face when competing against e-business companies. After going online, traditional firms face the problem of speedy decision-making, flexibility, price competition, customer cannibalization of online and offline businesses as well as creativity. Constantinides (2002) recommended that, to establish internet presence, companies that decide on using the Web marketing mix model should focus on addressing the strategic, operational, organizational as well as technical issues of the business to achieve competitive advantage in the market. Conclusions The use of e-commerce strategies among businesses is common for the purpose of promoting products and brands online. There are many models that can be used by a business to achieve competitive advantage. The use of these models of e-commerce should be used cautiously and must be combined to achieve the intended e-commerce objectives of the business. It is important to understand that, the internet is a tool that market researchers can use to promote business brands. It has both opportunities and threats. This requires competence in identifying business requirements, technology requirements as well as the success criteria. Corporate and marketing managers in a business are advised to efficiently utilise the online market potential as well as the internet technology to achieve competitive advantage. References Barkley, D., Markley, D & Lamie, R, (2007) E-Commerce as a Business Strategy: Lessons Learned from Case Studies of Rural and Small Town Businesses, UCED Working Paper, pp.2-4. Constantinides, E, (2002) The 4S Web-Marketing Mix model, Electronic Commerce Research and Applications, Vol, 1, pp.57–76. Evans, M & Knight, J (2014) 12 E-Commerce Strategies to Grow Your Business This Year, Retrieved from http://www.forbes.com/sites/allbusiness/2014/01/16/12-e-commerce-strategies-to-grow-your-business-this-year/ Accessed [7-10-2014]. Furrer, O &Sudharshan, D, (2001) Internet Marketing Research: Opportunities and Problems, Qualitative Market Research: An International Journal, Vol.4, Iss.3, pp. 123-129. Goi, C, (2009) A Review of Marketing Mix: 4Ps or More? International Journal of Marketing Studies, Vol. 1, Iss.1, pp. 1-4. Grzywaczewski, A., Iqbal, R., Shah, N & James, A, (2010) E-Marketing Strategy for Businesses, IEEE International Conference on E-Business Engineering, Vol.61, pp.428-434. Liu, Z & Lu, X, (2011) E-Marketing Strategy of SMBs. School of Economics and Management, NUST. pp.1-4. Mukhopadhyay, D & Mishra, S, (2011) Strategic Issues For A Successful E-Commerce, Web Intelligence & Distributed Computing Research Lab, pp. 1-13. Shin, N, (2001) Strategies for Competitive Advantage in Electronic Commerce. Journal of Electronic Commerce Research, Vol. 2, Iss. 4, pp. 164-169. Wen, H., Chen, H & Hwang, H, (2001) E-commerce Web site design: strategies and models, Computer Security, Vol.9, Iss. 1, pp.5-12. Appendix Table Comparison of the Findings from Different Articles Author (s) DV=Dependent Variable IV=Independent Variable Relationship with DV Measurement used Country Population size Survey method Unit of Analysis Wen, Chen & Hwang (2001) DV: Competitive advantage IV: E-commerce models and designs The achievement of competitive advantage depends on the effective application of E-commerce models and designs in business Web design site strategies UK N/A Achievement of competitive advantage Furrer &Sudharshan (2001) DV: Competitive advantage IV: Internet Market Designs Proper application of Internet marketing designs Typology of internet marketing survey designs USA, UK Observation, Questionnaire Experiment Successful Sample selection for successful e-commerce promotion Mukhopadhyay & Mishra (2011) DV: Competitive advantage IV: Internet marketing surveys Proper application of internet marketing surveys enables a business to achieve competitive advantage Business to Business Business to Customer India Mmultifunctional team approach Successful e-commerce Shin (2001) DV: Competitive advantage IV: e-business strategies Proper application of e-business strategies leads to the achievement of competitive advantage impact on the marketing mix as well as the competitive forces USA McCarthy’s four marketing mix model and Porter’s five competitive forces Increased profits in business Constantinides (2002) DV : Address of e-commerce issues IV: Elements of online marketing e-commerce is achieved through the use of online marketing strategies Interrelationships of the 4 marketing mix Netherlands four elements of the mix Achievement of the best e-commerce strategy Read More