Place and Space in Business The advent of sophisticated technologies facilitate various strategies by companies to sell their goods and reach potential customers. Presence is no longer physical, and thereby not limited to a certain geographic location. Through the internet, distance suddenly loses its implications, and transactions are completed within seconds without the need for face to face contact. Some organizations however, serve their purposes best when entirely focused on place marketing, while the others progress in all aspects through space negotiations with buyers, and the rest require the combination.
Andam (2003) maintains that the conduct of business through the World Wide Web entails several principles that include easy-to-use ordering systems, broadened consumer choices, faster and more visible processing, readily available product information, and increased price transparency (p. 19). All these basically seek to grow the business and boost efforts to achieve customer satisfaction. The internet is an expansive marketplace; users from all parts of the globe either intentionally search for ‘what to buy’ or are induced by advertisements they come across with. Yet, results of the survey conducted by Swinyard and Smith (2003) demonstrate that compared with on-line nonshoppers, online shoppers are better educated, more computer literate, and find internet shopping to be more enjoyable.
Further, it was noticed that these consumers belong to mixed consumer groups of particular market segments with distinctive internet-related routines. This suggests that there are market segments not inclined to make purchases via the internet, and space presence is not appropriate in all situations. Staging of information is futile without an audience, and so is e-commerce when the target market does not support online shopping, or simply not proficient in computer.
The Progressive Group of Insurance Companies is a leading provider of insurance solutions—live and online. The company attained market domination by offering the lowest prices and 24/7 customer assistance through their website (Progressive Official Website, 2011). The said strategy, according to Schneider (2011) helped emphasize quality and affordability, and save time for the shoppers. Similarly, key players in the financial industry such as JP Morgan Chase & Co. , Citigroup, and HSBC Holdings allow both personal and internet banking for trouble-free wealth management by customers, local and international.
Customers have the option to switch channels, from transacting online to physical, and vice versa. Amazon. com and Ebay, on the other hand, are two examples of popular shopping sites that provide for customer needs through fully electronic transactions—ordering and payment are completed online. Barista, India’s largest coffee cafe chain offers high value at premium prices through customer experience and excellent physical presence—such attributes that call for physical confirmation (Mukerjee, 2007, p. 8) Conclusion The application of space and place marketing, separate or in combination, are intended to address the specific needs of different market segments.
E-commerce is not just a means to inflate profit, but also to provide clear-cut buying experience and reliable customer service. On the other hand, the quality and appropriateness of physical commodities are confirmed by way of physical evaluation, thus necessitate physical presence. Trends in business are generally influenced by innovations in technology; apparently, physical commerce is starting to lose significance. Nonetheless, certain consumer groups, if not unacquainted with computers, are not satisfied when negotiations are not handled in person.
References Andam, Z. (2003, May). e-Commerce and e-Business. e-ASEAN Task Force. UNDP-APDIP, pp. 1-47. Mukerjee, K. (2007). Customers Relationship Management: A Strategic Approach To Marketing. New Delhi: Prentice-Hall of India Pvt Ltd. Schneider, G. (2011). Electronic Commerce, 9th Edition. Boston, Massachussetts: Cengage Learning.