In the 21st century, the rapid developments of information and communication technologies are of widespread interest and the increase in information of exchange have brought new drives and innovative ideas to the whole society. With the introduction of new achievements in information and communication technologies, trading activities through electronic media have become possible. The internet has altered the world fundamentally.
An example of electronic commerce is the emerging market Alibaba Group; a Chinese electronic commerce company that provides consumer to consumer (C2C), business to consumer (B2C) and business to business (B2B) sales services via web portals. The key person of this large corporation is Jack Ma. Before Jack Ma was among
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The four P’s are Product (or Services), Pricing, Promotion and Distribution (Place). The four Ps of the marketing strategies are among the factors that have contributed to the success of alibaba.com.
1. Product (or Services) is one of the marketing mix that has led to the success of alibaba.com. The services offered are such as online payments, listing the solutions, protection and authentication, instant messaging, member reputation and after sales services such as warranty problem. All these services have accelerated the company’s success.
2. Pricing is another strategy that led to the success of alibaba.com; the company has adopted a number of pricing strategies such as; product line pricing, penetration pricing and discounts. These pricing methods used are fair to the business to business customers and have increased the sales of the company. During its rapid growth, it has incurred challenges and became more exposed to greater
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Promotion is also one of the marketing strategies that led to the success of alibaba.com. The company promotes its services through the use of internet promotion strategy because internet is the best cost effective and fastest promotion tool in the export/import marketplace. The presence of alibaba.com company profile and product/services in major search engines. Another promotion strategy is media advertising, promotes its products and services through mass media.
4. Last but not least is the distribution (place) strategy where by alibaba.com uses the internet as its intermediary whereby it has several websites, it also uses direct distribution channel. www.alibaba.com is the global trade market for exporters and importers thus the websites have many different type of language setting. For instance, Japanese, English, Chinese and may be more in the future.
Other factors that contributed to the success are such as; strong brand, providing customers with outstanding values and superior shopping experience, massive sales volume and realizing economies of scale.
Alibaba’s Tomorrow Opportunities
Increased sales and profits: selling goods and services marketing a company never had before boost sales and increases
It adopts strategy to do better in marketing mix which the operational part of planning process like price, product, promotion and place. To increase the market penetration ALDI needs to employee marketing strategies to increase the sales volume compare to its competitors. Advertising campaign, short term promotion, product improvements can be done in order to gain profit. Product development is the new strategy where companies introducing new product in the existing market. Cost ,time ,quality are the main factors that effect customers needs and wants.
For the business-level, Trader Joe’s adopted a differentiation focus strategy. According to our textbook with this strategy, Trader Joe’s seeks to differentiate in its target market. They rely on providing better service than broad-based competitors. Specifically, they focus on the special needs of the buyer in other segments (Dess, Page 159). Joe’s differentiates its self from other grocers by providing a unique shopping experience fortified with their private label goods and great service from their crew members.
It notes that stiff competition can reduce the potential profit of like companies. Firms must determine the strategy that will be utilized to gain and maintain the upper hand in the industry, as it relates to price, marketing, competition and the introduction of new and innovative products into the market. The more a company senses competition the intensity of its strategy may increase as it does not only respond to other firms, but also to the industry as a whole. It is natural for firms to respond to competitive moves made by its rival as it will have an effect albeit positive or negative on the industry. Firms may be forced to supply the demands for cheaper but more reliable products or to create differentiated products to maintain the competitive
Let us directly look at some computer marketing strategies commonly used: • Search engine optimization- It is commonly referred to as SEO. This strategy aims at fulfilling its functions by making brands visible on search engine platform. Additionally, it introduces websites on search engine platforms and improves the functionality of a website. This is in terms of the loading speed, layout and the arrangement of content & pictures on the internet.
Diversification: Upstream integration with suppliers, Sephora exchanges data collected from their digital channels with their manufacturers for new products development. Role of Sephora digital channels in company’s marketing mix Product: Sephora has more than 250 brands with approximately 13,000 products which include skin care, makeup, bath, fragrance, beauty accessories, hair products as well as other beauty and body care products and each of these categories has various sub-categories (CNBC, 2017). The company's product offering is able to meet the diverse customers' needs. Even though most of the products sold by the company were manufactured by so many other brands, each of these brands have a different product concept which aligned
The business model of Amazon ensures that the product is available for the customer at the best possible price. The fast shipping strategies also ensure customer satisfaction. These aspects offer an excellent value proposition to the customer. Since Amazon is present globally and is successfully into business for a long time period, the strategies of Amazon are sustainable.
D) Marketing Plan (4Ps) Marketing Mix (4Ps) • Product – Divide product into three categories for different market o High-end function, design, and price – to target high-end group. The function will feature the highest potential such as child protection lock, built-in coffee and toaster maker, rotisserie, new technology
4.4 Pricing Strategy For a number of reasons, price is one of the most important aspects of an effective marketing strategy (Gerstein & Friedman, 2015). First, price is the only marketing variable that generates revenue. Second, buyers see price as an attribute of value (Tanner & Raymond, n.d.). Consequently, an organization must carefully assess its internal and external environment to choose the most effective pricing objective, which—in turn—will drive a product’s initial pricing strategy.
6.0 Marketing Strategies There are different marketing strategies which can be applied for each component depending on organizational objectives or goals. Skillshare need to accomplish the precise equilibrium of the marketing mix to achieve its goals. Figure 1: The 4 Ps of Marketing Mix Marketing mix is an arrangement of four choices which should be taken before propelling any new product or service on the market. These variables are otherwise called the 4 P's of marketing. These four variables help the firm in settling on vital choices essential for the smooth running of any product / organization.
Normally, consumers have unique needs that are not similar all the times. Therefore, the company must develop products that can address the unique concerns of the consumers. Evidently, Apple Inc. has been successful in the creating variety of products. However, pricing of the Apple Inc. products tend to limit the ability of buyers to purchase the products. While the company might justify the price of the products, setting the prices too high limits the ability of the willing buyer to purchase the
The pricing strategy or pricing policy is one of the most important managers make for a product as it affects the profitable outcome and competitiveness that a product may make. (Toni, 2017). A business can use a variety of pricing strategies when selling a product or service. The price can be set to maximize profitability for each unit sold or from the market overall. It can also be used to defend an existing market from new entrants, to increase market share within a market or to enter a new market by dropping the price or offering more benefits with the device such as packages.
6.1.2 Price Price is the value or amount that customer pays to buy a product. For instance, for our Star Lab ice cream shop, we need to consider the cost of production of our ice cream, price of our main competitor and our potential customers demographics in order to succeed this competitive market. (C. Breidert, 2007, p.9) 6.1.2.1 Pricing Strategy Pricing strategy that can be used by our company such as penetration pricing, cost-plus pricing, value based pricing and more. But we think that market penetration pricing is the best pricing strategy to be used by our business.
Causes According to Amin & Noor (2013), the E-consumers generally refer to the purchaser of goods and services over electronic systems such as Internet and other computer networks. This new group of consumers is increasing in number over the years as on-line shopping become a trend and manifestation of modern life style. Based from the Paynter & Lim (2001), E-commerce would provide consumers with benefits such as interactive communications, fast delivery, and more customization that would only be available for consumers through online shopping. Product information in the Internet is more compact and it ranges from various sites.
1. Market Penetration requires increasing the existing product sales in the existing market. The main strategic objective is to obtain more market shares or get the position of market leader. As an example: Aldi followed the market penetration strategy by opening thousands of stores across UK offering the same products. 2.
Strategic marketing is a broad and practical subject which included the concept of marketing subjects of previous semesters such as business marketing. The study of this subject has contributed to marketing knowledge in many ways, as well as it has strengthened my skills in application of marketing concepts. My knowledge was increased that I was able to develop a complete strategic marketing plan of not only on the part of marketing analysis or strategy of a product or service, but also the whole corporate plan. My skills and capabilities that were developed and integrated during lectures and tutorials include the analytical skills, coordination skills, presentation skills, organization skills, etc.