Online Marketing Elements - Essay Example

Part Consumer Behavior and Internet Marketing Today's market is characterised by highly competitive organisations which are all vying for consumer's loyalty. Firms are faced with the challenge to maintain their own competitive edge to be able to survive and be successful (Lindridge, 2005). Strategies are carefully planned and executed to gain the ultimate goal of al (Berry et. Al., 1998): company growth. However, external factors are not the only elements which influence growth. There are also internal factors, components working within the organisation which shape the direction of the company. Despite the economic and technological conditions that make it possible now to promote products and services in a larger online consumer market, there are other factors that still need to be considered for a business organisation reach out easier to their target market. Looking into the characteristics and thought processes of the people still holds as the most significant factor to be looked into by the individuals in the field of sales and marketing. The large scope of market can pose a hindrance to a successful marketing strategy in terms of over generalised definition of the target or niche market. There are many components which influence consumer behaviour namely: cultural, social, personal and psychological (Kotler & Armstrong, 2001). These characteristics cannot be controlled by the companies; therefore, a need to assess these elements in order to create an effective marketing plan. Cultural factors include culture, subculture and social class which all exert the broadest and deepest influence on buyer behaviour (Bowers et. Al., 1990). Culture is the most basic cause of the wants and behaviours of a consumer because it cultivates how a person chooses its values and learns its standards for achievement and success. Moreover, it varies from country to country and it can also have a shift within its own sphere which may cause a new product entry. On the other hand, subculture refers it the smaller groups of people who share the same value system and it can include nationalities, religions, racial groups and geographic regions. Many of these subcultures compose the important market segments for which products are specifically designed and marketed. Lastly, social classes are the divisions in a society composed of people who share similar values, interests and behaviours (Chow and Holden, 1997). These form the social class structure which exists in almost every society. It is not determined by a single component alone but a combination of different elements such as occupation, income, education, wealth and other variables (Kotler & Armstrong, 2001). These social classes show individual product and brand preferences in areas such as clothing, furniture, cars and leisure activities. Social factors also influence consumer behaviour. It includes the following: small groups, family, social roles and status. Groups are two or more people who interact in order to accomplish mutual goals. Usually, these groups have their own opinion leaders who are the members of a reference group that wields influence on others because of various reasons such as special skills, knowledge and personality. Companies often use the opinion leader as the basis on how to properly execute its marketing strategy. The next social factor is the family which is considered as the most important consumer buying organization in a society (Kotler & Armstrong, 2001). There is a need to be constantly updated of the shifting roles of family members because each - father, mother, child - has a different role and influence on the purchase of goods and services. The last factors are roles and status. These factors refer to the positions held by each person in each of the groups he belongs to but they are completely different in definition. A role is composed of activities which people are expected to do in the group while status is the position which goes along with a role that reflects the general esteem accorded by society. The third set of factors personal factors which are composed of different elements such as age and life cycle stage; occupation; economic situation; lifestyle and personality and self concept. Customer preferences vary according age and the stages of life cycle which accounts for both traditional and non-traditional stages with the latter being increasingly catered to in order to accommodate alternative lifestyles. Occupation can also influence online consumer behaviour because different professions yield different interests in products and services (Crosby et al, 2003). Another personal factor is the economic situation of the buyer because it determines if the online consumer has enough spendable income, savings or buying power for the goods and services offered. Thus, companies need to keep watch on income sensitive products so as to adjust accordingly to any changes in economic indicators (Degrave and Roodhooft, 1999). Lifestyle is also an influence in online buying behaviour because it refers to the pattern of living. Thus, specific products and services are offered specifically to suit a certain lifestyle. Finally, personality and self-concept or self image; influence how consumers choose their products and services (Jacob et al, 1998). These factors have been useful in analysing how to position a brand or product that reflects the general personality of the target consumer. Part 2 E-marketing Mix The marketing mix is the delivery vehicle through which strategy is actualized. Using available information and expertise, managers customize the marketing mix in relation to given target markets by making decisions concerning (1) product, (2) place (channels), (3) promotion (communications), and (4) pricing; a systems perspective is utilized to maximize effectiveness (Fuller, 1999). The marketing mix includes all that the company needs to influence the demand of the product or service (Katsikeas et al, 2002). Product means that the goods-and-services combination the company offers to the public market. The concept of product involves the variety, quality design, features, brand name, packaging and services. Price is the amount of money customers have to pay to obtain the product (Kim et al, 2002). For example, Ford calculates suggested retail prices that its dealer may charge for each car. But Ford dealers rarely charge the full sticker price and negotiate the price with each customer offering discounts, trade-in allowances, and credit terms to adjust to current competitive situation and to bring the price into line with the buyer's perception of the car's value. Place includes company activities that make the product available to target consumers. A large company should maintain a large body of independently owned dealership, for example, that sell the company's array of product models or units by selecting dealers carefully and supporting them strongly. The dealers on the other hand, keep an inventory, make demonstration to potential buyers, negotiate prices, close sales as well provide maintenance services after the sale. These include channels, coverage, assortments, locations, inventory, transportation and logistics. Promotions are the activities that communicate the merits of the product and persuade target customers to buy it. These include all the marketing and advertising efforts of the company in order to profit from the manufactured products or the services that they offer such as personal selling, sales promotion and public relations. An effective marketing program blends all of the marketing mix elements into a coordinated program designed to achieve the company's marketing objectives by delivering value to customers. The marketing mix constitutes the company's tactical tool kit for establishing strong positioning in the target market. Moreover, customers recognize the importance of knowledge in relation to the product being purchased. Several consumer behavior researches testified to this fact. Wong (2000) argued that a customer evaluates a product or a service. Such action is based on the customer's reaction from the using the product or service, which means that the product or service should leave a good perception to the customer's contentment. Frederick and Salter (1995) explained that it can be ensured that a customer is satisfied by taking into importance the value package, which includes: price, product quality, service quality, innovation, and corporate image (Lindenman, 1998). Others also stated the importance of maintaining or establishing a uniqueness of the product, while also understanding customers and what pleases them (Denton 1993). Customers should also understand the product and be allowed to set their own standards in order to be satisfied (Frederick & Salter 1995). Part 3. E-marketing is also known to be the online marketing strategy utilized by different company whose objective is to be the best company in their field. In various countries worldwide, more and more business firms have been using e-marketing strategy in order to be competitive. From books, foods and beverages, automobiles and other products and services, various firms, irregardless of their company sizes, are trying to survive by means of e-marketing strategy. Aside from being a promotional medium, the internet is a tool for marketing communications as well. Due to its interactive nature, the internet is an efficient method used in communicating with the consumers. Hence, several companies are beginning to realize the advantages of using the internet as a tool for communication (Lovelock, 1979). Companies then started to concentrate on designing web-related strategies and employing interactive agencies that will facilitate their development of specific company web sites as part of their integrated marketing communication strategy. There are companies however, that are effectively using the internet by incorporating their web-related strategies with the other areas of their IMC strategies. The approach now becomes integrated and more strategic. On-line marketing is considered to be the most expensive yet seems to be the most comprehensive marketing strategy that every company wants to implement and apply. At present, people, particularly those in the business arena, tend to engage themselves within the trend of rapidly growing technology so as to stay competitive. Upon surfing the internet, various companies have put up their official sites online for customers and potential consumers to view. Online or e-marketing is the latest marketing approach for any firm who wants to effectively market its products and services. In addition, e-marketing enables the company to be known worldwide since more and more people are able to access information derived from the internet. Within the business world, where competition is strict, internet marketing is one essential marketing strategy applied by most industries. 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