E-business Innovative Marketing Strategy

E- business sector Innovative food market StrategyChapter One Introduction1.1 BackgroundThe term E-business is todays popular do of business by victimisation old business models with the interaction of engine room and gaining the or so out of client value and profits which is the future substance of doing business. In E-business as like bubbles be bursting there is constant threats virtu exclusivelyy security, scarce e-business is increasing to a whole new level, and impart to the highest level likely keep doing so in the near future.In the modish years mesh has proved as a rattling pregnant trade tool. By the use of the net profit the companies view developed relationships with the guests by using diverse systems in promotion and sales. So the inception of internet has had effect on the way the individuals and organizations communicate around the world (Doole and Lowe, 2004). Briefly, in the last years merchandising has gone online taking advantage of the mark et opportunities.The estimates regarding the amount of business conducted electronically vary widely, just it is clear electronic business and electronic commerce have gained tremendous momentum universal over the past decade. Much media attention was given to the dot-com boom, but has since waned fol subalterning the dot-com bust and economic downturn of the early 2000s. condescension the dot-com bust, it is clear numerous successful electronic businesses go out originate and thrive for m both years, e.g., eBay and Ocado.Nonetheless, E-business sector has become an increasingly competitive and high-powered business environment within the past decade. Consumers perceive firms having a sack up situation as more customer-oriented, responsive, informative, high-tech, sophisticated, and likely to stay in business interminable (Griffith et al., 1998). These discerning and demanding consumers have take many innovative organizations to regard for separate market strategy on the internet marketplace with the film of building better business position on the one give-up the ghost value into receipts offerings, takeing and maintaining loyal customer and on the separate hand effectively devising strategic decisions thereby increasing the overall business executeance. The ability to retain and lock-in customers in the face of contestation is a major concern for online businesses, especially those that invest heavily in advertising and customer acquisition st atomic number 18s. However, creation of loyal and a satisfied customer base is an important determinant of selling success. Research makes that loyal customers pervert more of companions intersection channel, they ar cheaper to serve, less sensitive to wrong and brings in more customers by word of mouth (Reichheld, 1996). at that placefore, developing, managing and maintaining loyal merchandise relationship of the internet market place for instance is harmonious to how rise up you ar merchandising. Thus knowing how well you be merchandising as a firm and making innovative selling strategy to perform better in future which is required and inevit able in ofttimes(prenominal) a marketplace as the internet.Obviously, decision making is essential around organization strategy to determine the future direction (Johnson Scholes, 1997). The prime manoeuvre of management is perhaps to make the rightfield strategic decisions. According to Johnson Scholes, (1997) strategic or long-term decisions atomic number 18 concerned with an organizations overall objectives. Such embodied decisions include major capital investments, sources of finance, and reaping and market choices. Practically, the long-term directions are affected by strategic decisions of an organisation and are generally closely attempting to complete near benefit for the family. Therefore, with the range of a caller-outs action are likely to be affected Does (and should) the gild focalise on one area of action, or does it have many? The turn off of range of action is fundamental to strategic performance (Johnson Scholes, 1997).In market strategy pricing is one of the most talked closely but least(prenominal) understood of all the key trade levers (DiCamillo 1996). Price is in like manner the easiest of the merchandise mix variables to manipulate and rear end be done so very quickly (Guiltinan and Paul 1985). The proliferation of e-commerce has al interprety had a signifi tin layaboutt electric shock on how and where consumers shop. It also has the potential to make dramatic changes in the way goods are priced and how purchase decisions are made. In cyberspace shopping the greet (in both time and money) of comparison shopping is drastically decreased and price is a major element in purchase decision. A marketing coach-and-four strategically piles pricing to achieve the companys objective.1.2 RationaleIn e-business innovative marketing strategy change over the life daily round of a firm (Miller and Friesen, 1984) the strategy systems emerge over time, in chemical reaction to changes in strategic goals, the business environment and the size of the firm. However the inquiry of which marketing strategy is required for achieving to a goal or an objective. In this sense what marketing e-strategy required for? Implicitly, related to the gatherd moot by evaluating marketing e-strategy one firm going to make their future decisive decisions to remediate their firms more in online business. Needless to say, marketing strategies depend upon basis for decision making and reflect the customers needs as well as the firms at the same time. Companies and queryes reflects the customers satisfaction and needs by calculating price, feature, amount, steering wheel time, effectiveness, output etc., of the produces, services, and procedure as long as ways to count those things have to be present (Tapinos et al, 2005). What is new and has attr acted little attention to some extent is to evaluate marketing e-strategy using decision- making variables and to see the impact on strategic decisions. This clearly shows those not solo find the let marketing e-strategy but in order to better control, understand, and improve what firms do and essential do.In this look for there are two different cases virtual company one is basically auction parentage eBay and some otherwise grocery store Ocado. The main reason to select different family unit companies because both are doing e-business and finished with(predicate) this enquiry its going to be defining their marketing e-strategies and implementing in the market are approximately same. Thats why this study evaluates two different category virtual stores and compares their marketing e-strategies. Therefore this study goes beyond just required marketing strategy using the internet as a market place but is a bold attempt to evaluate e-strategy using decision making variables a nd to see the impact on strategic decisions.1.3 Significant of the ResearchThe marketing discipline has been showing to different changes and powerful challenges into the business stadium with the introduction and dispersion of the online phenomenon. Constantly since this new multimedia surroundings of exchange appeared, many query have been performed about how it give influence the nature and thought of marketing activities. This research is an attempt to categorize and summarize the literature about online marketing and enlighten the study routes that will contribute to the development of the discipline.In reality, most firms will need to plan marketing strategies for both traditional or place aspects of the business, and the fast developing electronic or length props of the business (Rayport Sviokla, 1994). Both admissiones need to be co-ordinated in a cost effective manner whilst providing the customer with an effective and integrated solution. Some research has reported that the early adopters of e-business show a trend towards cost reductions and administrative efficiencies from e-procurement and self service applications used by customers and employees.By contrast, more rise users focus on strategic advantage and submit this by dint of an evolutionary model of organisational change (Ash and Burn, 2005). Researchers have also recognised the importance of the multiplication of e-commerce use to small and long suit sized businesses in order to make out improvements in qualification and effectiveness (Hauge et. al, 2004)Managers need to contemplate their strategic approach to the electronic business opportunity in terms of both inhering and external considerations at a particular point in time. base on recent research (Perrott, 2002), this paper proposes a tentative modelling that will assist managers to determine their organisations strategic stance in the electronic arena.1.4 Aims ObjectivesAimTo identify what might be appropriate mar keting strategies for this new era e-business.ObjectivesTo retread literature on real developments in online marketing strategies.Identify the e-strategies of the cases eBay and Ocado.Review the strengths weaknesses of e-strategies.Identify immediate competition and implications for the cases eBay and Ocado.How do customers react to the marketing e-strategies?1.5 Purpose and Research QuestionsThe purpose of this dissertation is to define required innovative marketing strategy of virtual stores using decision-making associated variables sternly to evaluate the impact on strategic marketing decisions.There are many issues connected to this research problem, but we will only focus on certain aspects and a complete picture will therefore not be provided. The research questions we intend to answer areRQ1. What are the objectives for online marketing?RQ2. How can the online product offer be draw?RQ3. How can the online pricing strategy be described?RQ4. How is the blade land locate used as a communication, promotion medium, distribution and transaction medium?RQ5. What influential innovative marketing e-strategy evaluation variables or indicators are associated with strategic marketing decisions in the online marketplace?1.6 Scope and LimitationsThis research will show the continuing progress in digitization and net calculates that is manifested in the rapid ranch of the internet, nurture about product attributes, marketing strategy and especially in pricing process which has long been considered a concomitant part of any article placed on the market is now distributed self-supportingly from the product itself.The growth in digitization has significantly increase a companys freedom to both combine and diversify products, thereby modify them to easily produce and offer a wide variety of product versions to their customers. Moreover, progress in networking has substantially increased the speed at which sundry(a) product-related discipline can be distrib uted. At the same time, it has considerably spread out the range over which such information can be beamd.This research identifies the major scope and content of the studies about Internet marketing and displays the reliable stir of the discipline. It also enlightens the main avenues or niche routes for future research by clarifying under investigated or unsettled areas. The framework of this review can serve as a skeleton explaining the accumulated state of knowledge about Internet marketing and can be a useful starting point for studies aiming to expand the views about this area further.The current research has been limited and concentrated on required innovative marketing strategy up to company-level eBay and Ocado. The research is focused on evaluating virtual store marketing strategy for strategic decisions. Consequently, plethora of researchers have measured marketing strategy from diverse perspectives such as the financial perspective, process and suppliers perspective, employees perspective innovation and development perspective.The current study mainly focuses on the customers perspective.The primary focus was on the online marketplace industry where the business model is emerging and fast spreading. advance the focal point will be on business to consumers (B2C). The companies canvass involve UK firms providing service to UK users. The firms studied are eBay and Ocado.The study was limited to customers or users within London, city in UK.1.7 Signposting of the StudyChapter One IntroductionIn order to improve a product or services to satisfy a need of a customer, once have to be able to improve or change it to meet their needs. In order to improve or change it, there is the need to know what the customer confide or fate. In order to know and understand it, once have to be required innovative marketing strategy in online market. This showtime chapter will present the background and rationale behind innovative marketing e-strategy especially in pricing and the impact on strategic decisions in the online marketplace. Further this section will present the issue regarding marketing e-strategy which will lead to the purpose of this study.Chapter Two lit ReviewThis chapter provides relevant existent theories and models of marketing e-strategy specially pricing in the online market place as well as a model modified by the author. The working model builds upon the presented theories and is used as a foundation for the following analysis.Chapter three Research Methodology StrategyIn this chapter, the research methodology strategy is presented. The research approach that has been adopted in order to answer the research questions and to meet the purpose is described and motivated. The research methods used in this work are as well described and discussed.Chapter Four Empirical analytic thinkingIn this chapter the results of both the qualitative and quantitative research are presented. The results will follow the outline of the w orking model. A brief companies overview are also presented.Chapter Five AnalysisIn this chapter the analysis and discussion of the empirical info will be presented. The analysis is assessed through the two major issues in the study along with the working model.Chapter Six ConclusionThis chapter includes the conclusions of the research as well as reflections for recommendations, a discussion of the limitations and suggestions for further studies.Chapter Two Literature Review2.1 Online Marketing ObjectivesOnline marketing can be described as a system for selling products and services to target audiences who use the Internet and commercial online services by utilizing online tools and services in a strategic manner consistent with the companys overall marketing political program (Janal, 1997, p. 39). Before going online, the company needs to have a marketing plan that is consistent with the goals and objectives set by the company. It is necessary to decide what the company wants to accomplish by going online (Janal, 1997). Pitt, Berthon and Watson (1996) point out that the objectives for marketing through vane sites vary depending on the company, but that many organizations do not even have clear and quantified objectives for being present on the entanglement. Companies must(prenominal) divert from the thinking that even a bad tissue site is better than none at all, because without clear objectives it will be challenging to make appropriate marketing strategy through the Web sites effectiveness.The Web site can be characterized as something of a mix between personal selling and advertising and can discover the customer through the six phases of the buying process need recognition, information processing, develop preciseations, search and evaluation, purchase and post-purchase evaluation. By attracting Internet surfers, put up suffer with interested surfers, transform some of the interested surfers into interactive customers and keep these customers in teractive, the Web site is acting as a mean to push the customer through the buying process. Converting surfers into customers can be considered a six-stage conversion process. The efficiency of the Web site in r separatelying the marketing communication objectives set for it, as well as in taking the surfer through the six stages of the conversion process, is shown in Table 2.1. (Pitt, Berthon Watson, 1996)Even though most companies wish their Web site to generate direct solvent orders and thereby set marketing communication objectives, there are many other objectives that can be achieved by marketing online (Mathiesen, 1995)Generate direct response orders.Increase brand awareness or corporate image.Gather information about customer preferences to help guide future product development. ameliorate customer service.Test consumer response to discounts or other special offers. construct a list of prospects for future promotions.Find business partners, dealers, or franchisees for comp anys products.Recruit talent members, employees, subscribers, etc.Table 2.1 A toughie of the Conversion Process on the Web*An overall average Web site efficiency index, which can be thought of as a summary of the entire process.Source Adapted from Pitt, Berthon Watson, 1996, p. 8According to Janal (1997), the Internet is the worlds most efficient marketing tool and helps companies disseminate sales and marketing messages, create one-to-one relationships, educate prospects and support breathing customers on a general scale. The Internet provides the incident to deal with customers worldwide that have pre-selected a specific company. Firms can use the Internet to generate revenues by increasing sales to existing customers and by attracting new customers (Peterson, Balasubramanian Bronnenberg, 1997). The Internet is an important marketing tool because the market prefers the decentralized, open-access environment presented by the WWW for E-commerce (Hoffman Novak, 1996b).The Inte rnet possesses unique features making it appropriate for creating close customer relationships (Honeycutt, Flaherty Benassi, 1998). Janal (1997) proposes that the flexile publishing platforms of the Internet and commercial online services gives the marketer the possibility to establish relationships with the consumers. The relationships are created through online sales, support and service. On the Internet, the customers and the company are interacting with each other and this gives a very intimate selling situation (Janal, 1997).However, no physical intimidation exists between buyer and seller and no pose parties may interrupt the communication process (Samli, Wills Herbig, 1997). Quelch and Klein (1996), as well as Sanden (1998) claim that the Internet is not constrained by either mend or time. For the millions of individuals connected to the Internet, traditional limitations of time and distance no longer apply. The computer in Sweden or Hong Kong is just as close are the of fice next door. Messages can be sent to thousands of potential customers simultaneously with one keystroke (Cronin, 1994). Furthermore, the Web site is completely accessible, since it can be read 24 hours a day, 365 days per year (Samli, Wills Herbig, 1997).The Web site can be used to create customized sales presentations affecting several senses and openhearted to logic and benefits. Consumers can pick the sales presentation and information they want (Janal, 1997). By using a variety of Internet resources, the company can create a customer-oriented environment while obtaining information about customers specific interests, responses to new product offerings and feedback on the companys performance. Additionally, the Internet offers the possibility for online ordering and delivery. Customers logging on to the Internet can continue to receive enhanced support services through the network. (Cronin, 1994)The Internet provides quick feedback on the effectiveness of marketing activitie s, enabling performance-based marketing (Burke, 1997). Marketers can test both new product concepts and advertising copy over the Internet for blink of an eye feedback. In addition, the Internet permits new types of measurement tools, such as online surveys, bulletin boards, e-mail marketing lists, customer identification systems, advertising measurement and Web visitor tracking. (Quelch Klein, 1996)The fact that the Internet is neither time- nor location-bound can have a major impact on costs. Customers do much of the work that would usually be handled by office-clerks or human tellers (Sheth Sisodia, 1999). According to Sandn (1998), the Internet increases the companys efficiency. By publishing information on the WWW, the sales process can be improved and thus, the productivity rises considerably. In addition, the time spent to process orders is lowered dramatically. Less errors and facilitated processing has led to substantial time-savings. The automation of various administr ative tasks is another reason for the increased efficiency and the possibility to serve a vast amount of customers effectively (Sheth Sisodia, 1999). Administration costs related to paper-based processes such as postage, printing, and handling, will be reduced. (ibm.com)The WWW is the least expensive printing press and offers the seller an unlimited amount of space to describe and demonstrate the product range. Add to this the low rent compared to storefront, and it is clear that selling online means low cost of entering (Hoffman Novak, 1996 Janal, 1997). Jger and Winberg (1996) underline the cost-effectiveness of the WWW by claiming that the costs are independent of the number of people exposed to the message, as well as how much information that is to be presented. They compare the WWW to a printed catalogue, where the costs are very much depending on these factors. It is proposed that performing direct marketing through the Internet may be one-fourth less costly than through traditional channels. The great segmentation possibilities and the low cost for creating differentiated messages on the WWW are also mentioned. As a conclusion, Jger and Winberg (1996) point out that the cost-effectiveness for presenting messages on the WWW is depending on whether the target group is on the Web. The success of the campaign in relation to the costs of executing it must also be considered in order to evaluate the cost-effectiveness. By marketing online, the company gains competitive advantages compared to companies who are not online. The Internet also reduces the issues of company size, since consumers only care that they find the product needed at the right price. (Janal, 1997 Sandn, 1998 Sheth Sisodia, 1999)2.2 The Online Product OfferAccording to Brnnback (1997), the focus in marketing automatically changes from physical to informational when uses the Internet. In the traditional marketplace, the idea of the product is physical or tangible and occasionally accomp anied by nonphysical features or services. On the Web site, a picture or rendering of its features will replace the physical product, and thus, the product becomes informational rather than tangible.Not all products are suitable for online marketing. Peterson, Balasubramanian Bronnenberg (1997) categorize products and services along three dimensions that are relevant when discussing the products suitability for online marketing. The dimensions are value proposition, degree of differentiation, and cost and frequency of purchase. Concerning the first dimension, goods can either be low-cost, oft purchased goods, or high-cost, inofttimes purchased goods. The product is more likely to fit internet-based marketing if it is infrequently purchased and expensive. Goods can be classified along the second dimension according to whether they are tangible and physical, or intangible and service related. Online marketing is particularly well suited for certain types of intangible or service r elated goods. The third dimension reflects to what extent the product is differentiable or not. The Internet is an effective segmentation tool when it comes to products or services that can be subject to differentiation. Peterson, Balasubramanian and Bronnenberg (1997) illustrate the product and service classification power grid presented below. (Table 2.2)Table 2.2 Product and Service Classification GridLow outlay, frequentlypurchased goodsValue proposition