Marketing Strategy

Essay by skogCollege, UndergraduateA-, June 2010

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Marketing Strategy 1 Marketing Strategy � PAGE �5�

This paper will assess the three different organizations e-business models marketing strategy. It will also discuss how these organizations business models affect the way they market themselves and describe the marketing tools used on each of these three websites. Last it will evaluate the type of marketing used by each company and the benefits of their site to the organization and to the site's visitors.

Office Depot

Office Depot uses the business-to business (B2B) e-business model, they contract with many companies to supply all of their office supply needs. They offer their services to business as well as to customers. In many ways they use the business-to-consumer (B2C) business model as well as a business-to business (B2B) business model. Office Depot has a brick and mortar business which is centered on its stores which are set up to service both consumers and businesses.

Office Depot's e-business is its website; the service that is offered on their website for companies goes beyond just buying and ordering products online. Although the website can be used by consumers to order products online, the main propose of the sight has evolved to encompass supply chain management. Many large corporations contract to have them track the levels of supplies in the office and automatically replenish items that are running low. Smaller companies often utilize the option to access their site and order supplies when they are low. Office Depot's site is attractive to many companies because it is easy to use, allows buyers to view real-time inventory availability of their products, and because the order is instantly dropped into their system, pulled and shipped within a day.

Office Depot's marketing is focus on the business needs of a company. A business who needs Office Depot e-business services can find them thru their advertising, they advertise on television, radio and in print ads. Their website can easily be found by using a search engine or simply typing: the URL www.officedepot.com. Having a domain name which utilizes their business name makes it even easier for customers to locate them on the web.

The customer service provided at Office Depot.com is excellent; their motto is "Taken Care of Business" and they do a good job. Their return policy is "If you are dissatisfied with your purchase for any reason, you can return it for a refund, exchange, or credit within 30 days of purchase with your original receipt, packing slip or email confirmation to any of our stores; for delivery orders, call 1-800-GO-DEPOT (1-800-463-3768) to arrange a free pick up."

The benefits of this site to Office Depot and to the site's visitors are very good. For Office Depot the site gives a presence and services that would be hard to match using a traditional business-to business model. The benefits for the site's visitors it gives them the ability to take care of all their office supply needs without ever having to leave the office.

Sony

Sony is an example of a company that used to mainly be a business-to business (B2B) company, to buy a Sony product like a television you would have to go to a business that sells Sony televisions. Now with their website and stores they are changing to a business-to-consumer (B2C) model.

Today Sony gets a large portion of their sales online at SonyStyle.com or at SonyStyle stores across the nation. The main focus of its stores is on attracting customers and introducing them to the latest Sony gadgets. Sales from stores are often logged on the website because the stores keep stock to a bare minimum.

The site provides easily accessible product information about the characteristics and features of the products. The creation of category catalogs and search tools also aids in providing extra help for locating the desired product quickly. The customer can click on an item to obtain more detailed information about it.

SonyStyle.com is like most online purchasing sites. Customers can research the product they want to buy, do compare and contrasts between different products and be able to pay for purchases using a credit card number or electronic transfers of funds. Also, prominently featured on the site are product tutorials, showing customers how to use the products they buy or helping them troubleshoot problems if they exist. The sonystyle.com site can easily be found through traditional search engine. It is also advertised on televisions and print ads.

The benefit of having this site for Sony is to gain market share. Sony has a strong name brand but with the added feature of being able to sell on line, customers can easily buy what they want, increasing their market presence. Another advantage of the site is higher profit margins. Selling items directly to customers as opposed of going through distributors cut out the cost of doing business and discounted pricing associated with such transactions.

The customer service provided at SonyStyle.com is good, I'm sure it is in line with other on-line retailers. The one section that I did not care for was "Sony will use its discretion in selecting a reputable carrier and appropriate means of shipment. Risk of loss or damage to Products in transit is yours. In the event of Product damage or loss during transit, it is your responsibility to file a claim with the carrier." So you have to deal with the carrier if you receive a damaged product. There is also the "Please allow up to eight weeks for Sony to credit your account." So if something happens you could have to deal with the carrier and wait up to eight weeks for your money.

The benefits of this site to Sony and to the site's visitors are good. For Sony the site gives them the ability to sell directly to consumers cutting out the middle man.

eBay

eBay consumer-to-consumer (C2C) business model. The key to eBay's success is simple: Its business model not only is perfectly suited to the Internet, it is based on an accurate assessment of the dynamics of the online auction market and how it will evolve. eBay has built an online person-to-person trading community on the Internet, using the World Wide Web. Buyers and sellers are brought together in a manner where sellers are permitted to list items for sale, buyers can bid on items of interest and all eBay users are able to browse through listed items in a fully automated way. The items are arranged by topics, where each type of auction has its own category. eBay success is in consolidating these highly fragmented, inefficient, offline marketplaces into more efficient online marketplaces. eBay uses the power of the Internet to reduce transaction costs, increase the number of participants in the process, and remove geographical barriers prohibiting people from participating in the process. What you and I may consider junk may be invaluable to someone else across the world. A conventional auction cannot attract diverse audiences for obvious reasons. eBay makes it possible for anyone with access to Internet, anywhere in the world, to participate in an auction process effectively and efficiently.

eBay has both streamlined and globalized traditional person-to-person trading, which has traditionally been conducted through such forms as garage sales, collectibles shows, flea markets and more, with their web interface. This facilitates easy exploration for buyers and enables the sellers to immediately list an item for sale within minutes of registering. Browsing and bidding on auctions is free of charge, but sellers are charged a fee for the use of eBay

eBay notifies the buyer and seller via e-mail at the end of the auction if a bid exceeds the seller's minimum price, and the seller and buyer finish the transaction independently of eBay. The binding contract of the auction is between the winning bidder and the seller only.

eBay's marketing is focus on the consumer. A person who needs eBay's services can find them thru their advertising, they advertise on television, radio and in print ads. Their website can easily be found by using a search engine or simply typing: the URL www.ebay.com.

The benefits of this site to eBay and to the site's visitors are immeasurable, without the site there would be no eBay. For eBay the site gives them the ability to conduct its business.

Conclusion

In conclusion, Internet commerce is increasing at a rapid pace. All three site's have a goal of gaining revenue by encouraging consumers to buy their products or use their services. The major difference is the focus on separate target consumers. Whereas Sony and Office Depot site's are focused more so on selling to end consumers, eBay's website is much more focused on providing a services to its users.

References:

Works Cited

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Patton, Susannah. "The ABCs of B2C". CIO Business Research Center. March 06, 2007. Retrieved online. 9 Feb. 2008 http://www.cio.com/article/40298

Levy, Mitchell. "Management Perspective: Dynamic Pricing Reaches Most Industries". ECMgt 4 Oct. 2007. Online. 9 Feb. 2008. http://www.valueframeworkinstitute.org/Nov2000/

Kooser, Amanda A. "Explore Your Auctions". Entrepreneur Online Magazine. Jan 2008. 9 Feb. 2008. http://www.entrepreneur.com/ebusiness/index.html