How Online Marketing Differs from General Marketing Essay Example

internationally. This positioning statement captures the essence of eBay's identity.

The company provides an online platform where millions of items can be traded, fulfilling the vision of Midair's wife who wanted to trade Peg dispensers with other collectors over the Internet.Midair had considered entering the Internet auction business before discovering Peg mania.His goal was to create a fair marketplace where everyone had equal access to information and could compete on equal terms.After developing the website, Midair launched eBay from his home in mid-1995. The online marketplace quickly gained popularity and received thousands of hits daily by year-end. Interestingly, eBay was profitable right from the start. The company aimed to foster a fun, open, and trusting work environment while staying focused on important goals and priorities.

eBay became a publicly traded company in September 1998, with shares priced at $18. By March 1999, the stock price had surged to $282 per share, surpassing Amazon.com and becoming the leading Internet retailer worldwide.

Marketing refers to the planning and implementation of activities related to developing, pricing, promoting, and distributing ideas, goods, and services. Its goal is to satisfy the needs and desires of individuals and organizations by creating valuable products and services that are exchanged with others. This requires reaching the right audience at the appropriate time, place,

price point through effective communication strategies.

Marketing involves various institutions and processes that aim to create communicate deliver exchange offerings value for customers clients partners society as whole.The American Marketing Association periodically reviews its definition every five years with input from committee representing different segments within industry order stay current changes dynamic field.Marketing encompasses the planning and execution of ideas for goods and services to

meet individual and organizational needs, wants, and objectives. It functions as both activities carried out by organizations and a social process. Micro-marketing involves anticipating customer needs and directing the delivery of satisfying goods and services from producer to customer in order to achieve organizational goals. Sergei Cayman defines marketing as aiming to sell more products or services at a higher price to a larger audience for greater profits. It involves planning, pricing, promoting, and distributing goods and services. The Marketing Mix consists of four elements: Product, Price, Promotion, and Place (also known as "the ups"). These elements can be adjusted to create a desired marketing strategy. The planning process translates marketing objectives into strategies and tactics. Marketing management involves making decisions about target markets, budgets, distribution channels, promotion methods, media usage, and sales areas. Market segmentation is crucial for identifying a target market by dividing the overall market based on demographics, geographics.

The use of psychographics goes hand in hand with demographic segmentation because it helps marketers understand consumers' personalities so they can tailor their messages accordingly.A product that focuses on meeting the specific needs of a particular market differs greatly from one that uses mass marketing techniques aimed at reaching a broad range of consumersThe process of market segmentation involves identifying segment characteristics within the target market and dividing them accordingly. The organization then assesses if any of these segments are large enough to support its product. Once a target market is chosen, marketing strategies can be developed specifically for this market.

A product refers to the goods and services offered by the company to the target market, including elements such as product mix, features, designs,

packaging sizes, services warranties, and return policies. It can fulfill a want or need. On the other hand, a service is an intangible activity or action where ownership is not acquired when engaged in by one party.

Packaging plays a crucial role in enhancing the value of a product's overall offering and brand managers use it for this purpose. It also greatly influences consumers' perceptions about the quality of the product. For instance, McDonald's implemented a global package design modification in 2008 across various countries and languages to strengthen its brand.

In addition to packaging, determining the purpose of a product or service is vital. This involves evaluating its true worth, usage significance, distinguishing factors,
rationality, and function for both consumers and users.

Price encompasses several aspects related to pricing that impact consumers' willingness to pay.The text discusses various elements of marketing strategies, such as retail price, wholesale discounts, trade-in allowances, quantity discounts, credit terms, sales and payment periods. These factors are crucial for achieving product success.

In addition to these elements, promotion is also essential in influencing consumers' purchasing decisions. This is done through personal selling, advertising, publicity and sales promotion. Both print and electronic media play a significant role in providing information about the availability, characteristics and uses of the product.

Digital marketing has gained importance in recent years with the rise of online and mobile platforms. One form of digital marketing that remains relevant today is email marketing. It falls under the broader term "digital marketing" which encompasses various forms conducted through electronic devices.

Database marketing plays a role in email marketing by segmenting customer data and delivering personalized targeted messages at the right time. Popular brands like Amazon

and Tests have embraced personalized email marketing based on customers' buying patterns.

To succeed in email marketing, certain skills are required including database analysis,Customer Relationship Management (CRM), message crafting, HTML email design,and result analysisThe art of increasing a website's visibility in search engines, known as Search Engine Optimization (SEO), involves techniques such as improving keyword rankings and increasing keyword volume. These techniques include technical analysis, content creation, outreach, blogging, and link-building. They require technical capabilities, an analytical approach, and creativity.

Paid Search (PC) refers to managing paid advertisements in search results. These ads are usually placed above or to the right of organic results. The cost of these ads can vary depending on keyword competitiveness. Managing PC (pay-per-click) involves optimizing your budget to achieve the highest possible return on investment. This optimization is crucial for expensive terms like 'car insurance'.

Social media management plays a vital role in managing a brand's image across various social channels such as Twitter, Facebook, Pinterest, and LinkedIn. It combines proactive business development for lead generation with customer support for potential customers. Over time, the field of social media management has evolved with improved reporting tools and a wider selection of social networks. Skills necessary for this field include brand awareness, customer service, creativity, and understanding the impact of social media metrics on other marketing metrics.

On the other hand, online advertising involves placing ads on other websites while utilizing different strategies and approaches to attract target audiences.Purchasing banner space on specific websites and paying based on impressions or clicks received is a way to engage in online advertising. This form of advertising requires skills in design, creativity, negotiation, and data analysis to ensure

effective ad placement. Affiliate marketing operates similarly but compensates the hosting website only when a sale is made. Payment is provided for more prominently displayed advertisements. In addition to banner advertising, affiliate marketing also includes earning money through links, email marketing, and developing commerce shops with affiliate products. Brands negotiate with affiliates to achieve effective promotion while managing costs.

Mobile marketing has seen significant growth thanks to increased smartphone usage and relies on smartphones for timely information dissemination.

Text messaging can serve as an efficient push strategy if used correctly; however, some may view it as spam.

Blogging combines SEO (search engine optimization), PR (public relations), social media tactics, and web design strategies to attract organic and social traffic.

Viral marketing, also known as "content marketing," involves using various channels such as videos, blogs, email marketing, and traditional mediums to distribute content. The objective is to capture the target market's attention and encourage organic spread through online communities.In the Commerce sector of India, there are three main categories: Business-to-consumer (BBC), Consumer-to-consumer (ICC), and Business-to-Business (BIB). BBC generates the majority of revenue in consumer-facing e-commerce, with online retail projected to grow rapidly. Despite only accounting for less than 1% of India's total retail market, the e-commerce industry has experienced impressive growth in recent years. From 2009 to 2013, it grew at an approximate rate of 35% annually. Online travel is the dominant sector, capturing around 70% of the market share. While ICC currently has a small presence, it is expected to expand as new players attract investment and gain significant traffic on their online portals. BIB is commonly used by micro, small, and medium enterprises (MSMEs) who lack financial resources

for traditional media marketing methods like newspapers, banners, and television. Utilizing online BIB portals in trade helps businesses increase visibility in the marketplace and overcome barriers related to time, communication, and geography. The emergence of e-commerce as a relatively new way for businesses to connect with customers has been facilitated by internet and mobile phone penetration that have revolutionized communication and business practices. Although countries like the US and China have experienced significant growth in e-commerce sales, India's industry is still at an early stage.

Both online retail and marketplaces have experienced substantial growth, with their share increasing from 10% in 2009 to approximately 18% in 2013. Industry benchmarks indicate that e-commerce portals had over 100 million check-outs in the same year. If current strong growth continues, it is projected that the e-retail industry will reach a size of $10-20 billion USD by2020. This expansion will be primarily driven by increased consumer purchases in durable goods, electronics, apparel, accessories, as well as traditional products like books and audio-visuals.

E-commerce has not only boomed in India but also worldwide. Leading countries include China, India,and Indonesia. Specifically in India,e-commerce has grown rapidly and was estimated to be worth INR3,930 crorein2013 with a CAGR (Compound Annual Growth Rate)of43.8%. On June30th ,2012,data from internationalist.com ranked India third globally for internet users after China andthe US.Within the Indian e-commerce industry,the travel segment dominates with over70%, while e-retail holds approximately12.5% of transactions.Due to low internet penetration caused by inadequate infrastructure, the e-commerce industry in India still has a long way to go compared to developed and developing countries.

In terms of business models within the Indian e-commerce industry,BIB holds a market share of 90%,

whereas BBC holds a market share of 10%.India and China use a "Marketplace Model" for e-commerce, while the US uses an inventory-based/independent model. In the "Marketplace Model," manufacturers and traders, including Mimes, can advertise their products and manage related functions on a platform. The entity earns commission from sellers. In contrast, in the inventory-based model, merchants own the goods. Currently, FED is restricted in India's inventory-based model.

The e-retailing market in India is estimated to be worth RSI 5,513 core IFFY with a CARR of 30.5%. However, e-retailing only represents a small percentage of the total retail market in India (0%) and organized retail (2.3%). There are few large players experiencing growth in the fragmented Indian e-retailing industry. Consolidation has also occurred within the industry with Flippant acquiring Mantra.

This trend of consolidation is expected to continue due to factors like Amazon entering the market, start-ups facing difficulties raising follow-up capital, and potentially opening FED in India's inventory-based model.

The online retail market in India saw a significant increase in unique visitors from July 2011 to July 2012 due to low penetration of e-retailing. This growth is driven by factors such as time constraints faced by middle-class urban and semi-urban population who value convenience and prefer using plastic money for online purchases.In addition, India's e-retailing potential is boosted by its advantageous demographic profile. A significant portion (75%) of internet users in India are between the ages of 5 and 34. This young population, coupled with limited access to physical stores, increasing internet penetration, smartphone usage, and reduced data charges contribute to the high potential for e-commerce in the country.

However, there are challenges that exist within the Indian e-retailing

industry. One primary challenge is establishing direct connections with consumers. Other obstacles include low internet penetration rates, limited debit/credit card usage (compensated by cash on delivery), linguistic diversity among users, and logistics issues.

Nevertheless, industry players are actively working on overcoming these hurdles by leveraging technological advancements to effectively bridge this gap. Current efforts focus on improving supply chain management systems, customer relationship management solutions, and security measures to enhance e-retailing operations in India.

Foreign capital inflow is seen as the next crucial step towards developing the necessary infrastructure for further growth in the commerce sector in India. According to a report by BBC, foreign investment in India's commerce industry has reached approximately $1.3 billion from 2010 to June 2013 due to recognizing India's high potential for growth.E-commerce has played a crucial role in driving investments by offering benefits such as reduced search and transaction costs, faster time to market, improved customer service, enhanced shopping experience, increased information transparency, knowledge generation, and the introduction of new products and services. According to CHOOMS' rankings , Flippant, eBay India , Seasonal Amazon India , Mantra , Domino's Overcharge , and Gabon Trades are among the top 10 e-commerce companies in India. eBay places great emphasis on trust within their community members and believes in the inherent goodness of people who can contribute something valuable. The company strives to create an environment that fosters honesty and openness while bringing out the best in individuals. These values promote open communication within their community and cultivate long-term profitable relationships as well as e-loyalty. eBay operates on the fundamental principle that virtually anything can be bought or sold through their online platform. They

have successfully implemented e-commerce concepts for global trading on the internet. The convenience and ease of use of online shopping have made it increasingly popular, which eBay has capitalized on by offering a wide range of products for bidding including office equipment, real estate, and cars. Despite facing competition, eBay has thrived by focusing on their long-term goal of becoming the largest consumer-to-consumer online auction house.eBay has adopted adaptive strategies influenced by experts like Porter in order to ensure success. One of their main objectives is to create a trustworthy environment for individuals to transact with confidence, free from concerns about fraud or deception. The text mentions three notable approaches implemented by eBay: forming relationships with over 60 websites, such as America Online, to establish a larger customer base and prevent competition; introducing features like dealer-to-person trading and the business exchange to cater specifically to the rapidly growing small cuisines market.

In order to expand its business and establish itself as a powerful brand, eBay implemented several strategies. Firstly, they created local sites in 53 U.S markets, allowing users to shop locally for items that are difficult to ship. At the same time, eBay expanded globally and attracted users from over 150 nations. Initially, eBay relied on viral marketing and competitors' extensive marketing efforts to build their brand. However, as new professionals joined the company, their approach shifted.

In their fourth year of operation, eBay focused on expanding their trading platform. By 1999, established companies like Yahoo and Amazon had entered the online auction market with large user bases and internet presence. To counter this competition, eBay decided to broaden its core business by introducing higher-priced

product categories with minimal infrastructure costs.eBay expanded its services by acquiring new companies such as Butterflies and Butterflies auction house, which allowed users to participate in real-time bidding for fine antiques and collectibles. This acquisition transformed the offline auction house experience. eBay also focuses on maintaining a strong community affinity by fostering direct interaction between buyers and sellers who share common interests. Building and nurturing this user community has been an integral part of eBay's practices since its inception. To improve the buying and selling experience, eBay continuously enhances its platform's features and functionality. Sellers can easily create attractive descriptions, add suitable photos, and choose the duration of their auctions. Additionally, eBay acquired Ballpoint to enhance the payment process for credit card transactions through an online bill payment service. Trust, value, selection, and convenience are key offerings that eBay provides to buyers. In 2007, eBay introduced Neighborhoods where users can engage in discussions about specific brands and products within dedicated forums. By using eBay's platform, sellers gain access to global markets and opportunities for increased sales.
PayPal is an important player in facilitating online transactions, offering internet-based payments and financial transfers as an alternative to traditional offline methods like checks or money orders. Additionally, eBay serves as a diverse marketplace with millions of items available for trading worldwide. It not only provides various goods and services but also offers online payment options and communication channels for individuals and businesses alike. Sellers regularly list their items on eBay's platform, which range from collectibles to appliances, computers to vehicles.

eBay has different subsidiaries that cater to different needs. One such service is Bill Me Later, which provides a secure

payment method for online or phone purchases. Rent.Com operates on a pay-for-performance model where property managers share revenue when leases are completed through the site. Shopping.Com offers price comparison services across multiple countries while Stubby serves as an online marketplace specifically for buying and selling tickets to various events.

Keep is a communication tool that allows free video calling, chat, instant messaging, and low-rate calls to landlines. Lastly, Half.Com enables sellers to offer fixed-priced items such as textbooks, music, movies, video games, and consoles within its platform.eBay has recently made changes to its pricing policies for listing fees, affecting both frequent and occasional sellers. The upfront listing fees for auctions (excluding Buy It Now) have been eliminated. Instead, eBay now charges a 9% fee on the final sale price, with a maximum charge of $50. In addition to this, eBay also employs a quality click pricing model similar to Disease. This model allows affiliates to be rewarded based on the number of clicks they generate.