3146141747
Melissa Miller
Webster Marketing
Tuesday, April 15, 2008
Question one
The most important basic characteristics of e-marketing to eBay is a combination of
its addressability, interactivity, memory, control, accessibility, and digitalization. Each
characteristic is a prerequisite for the other, thereby encompassing the traditional
marketing mix, customer, distribution, price, promotion, and product.
Once a need has been identified, customers can search eBay for the product needed.
eBay’s database can be searched either for products for sell or like products already
sold. Reviewing past auctions can allow eBay users, both buyers and sellers, to
understand the market value of various products. Thus, the memory characteristic
allows marketing efforts to be customized to a specific type of customer.
Furthermore, eBay’s website allows it’s users to identify their customers makes it
addressability. When customers are bidding on items, sellers may check their ratings
and see what other products they have sold or purchased. In addition, during the
bidding phase it is normal for customers to interact with sellers about the product being
sold, asking questions that may not be addressed in the description.
eBay allows customers full control of the information they view, while they have
total accessibility and control to the information posted on the companies’ website and
can walk leave the website. In addition, the other characteristics depend on the digital
images and information describing the product being sold. Therefore, all six
characteristics are account for eBay’s success.
Question two
eBay’s marketing mix is similar to the traditional marketing mix but deviates
somewhat in that it does not include all of the marketing forces present in the traditional
mix. Although it encompasses customers, promotion, pricing, products, and outsides
forces such as technological, legal and regulatory, economic, and competitive forces, the
socio-cultural and political forces are not active as with a “brick-and-mortar” discount
store.
As with a traditional discount store, customers must recognize a problem and
solution to engage in an eBay transaction. Therefore, although it’s generally a customer to
customer transaction, both small businesses and corporations have found eBay’s reach help
add revenue to their bottom line by promoting, pricing, and distributing products from
online sales.
eBay’s system incorporates the price, promotion, product, and distribution mix of
marketing since products are promoted, priced, and distributed on eBay’s auction forum.
Like all products, price is determined by what the customers are willing to give up for a
product and consumers have the option on some items to purchase immediately for a
certain price or try to win the product by bidding. In addition, customers can place a
maximum bid to increase chances of winning. Once a product is bought or won, it is
distributed by the seller to the customer via the means disclosed upfront by the customer.
In addition to the tradition marketing mix some, but not all of the environmental
forces are also present. Items listed on eBay are subject to competitive and environmental
forces, like items are sold and customers can view these items simultaneously before
bidding or purchasing a particular product. Customers can compare exact brands or similar
brands of a product before purchasing or bidding. Furthermore, eBay, like traditional
stores are subject to business cycles. Consumers are affected equally by economic cycles
of prosperity, recessions, depressions, and recovery which may keep revenue steady.
However, since a brick –and-mortar store depends on the local market, eBay’s sellers reach
a broader audience. Technology allows buyers and sellers to complete transactions, buyers
by listing and consumers by bidding or purchasing. State and federal laws, as well as, the
company’s self regulation standards provide eBay and its buyers and sellers a forum for
credibility and ethical practices. Perhaps, the only two environmental forces not present in
the traditional sense for eBay is both the political and socio-cultural.
Question three
Although, online fraud has been a factor in some consumers’ reluctance to use
auction sites by eBay (and perhaps in the rise in intermediary companies) eBay has worked
diligently to prevent deceit on its site because they have taken numerous steps to avoid
fraud. Many companies battle fraud on a daily basis, but eBay has modified its user
agreements to permits barring users from the auction site. They continue to schedule focus
groups to listen to their consumers. They have established feedback system to allow buyers
and sellers to rate each other and their experiences. They also offer payment processing
and credit card protection through various companies to reduce fraud. They also
established a self –regulatory department, Trust & Safety Department to seek suspicious
activities and assist law enforcement against fraud. Consumers are always at risk of fraud
and unlawful practices, eBay as a company cannot totally eliminate fraud. Therefore, I
believe the company needs to continue to monitor online listen to consumer complaints and
modify its user agreements and help prosecute illegal actions to try to protect its consumers
and improve its services.