The Foundation of Electronic Marketing - Essay Example

Macy’s Department Store Macy’s department store Macy’s department is an online store in the context of a traditional business model. Macy’s was started in 1858 by Rowland Hussey Macy around Herald Square in the city of New York. It holds a world’s shopping history as a dried-goods store, supplying goods and services to the American people, hence often many people consider it as part of the New York culture. Macy’s department online store, with a large red star logo, started a lively progress in 1862 where it emerged to be the first online store offering in-store Santa services at Christmas time.

In 1866, Mr. Macy made some traditional decorations on the store’s windows, attracting many customers who discovered the store’s top-quality items. In 1902, the store expanded so first that Mr. Macy had to establish a larger building around the Herald Square. After completion of the building, Macy’s department became the largest store in the world (Macy’s Department Store, 2012). Currently, Macy’s department sits on a Broadway of 34th and 35th street where the entire city block is a must see New York City attraction.

In addition, it has about 800 department stores and furniture porches in 45 states (Lewis, 2011). Macy’s department offers the largest selection of merchandise in the world. It has 11 floors of diverse and unique merchandise selections for almost all visitors. The New York City Macy’s department consists of everything a store could offer: mattresses, furniture, table linens and a variety of cosmetics. It also offers a vast selection of fine women’s and men’s clothing of numerous high quality brands which includes epic threads, style and co, and American Rag.

It also provides a wide collection of boutiques that are the world’s top designers. DKNY, Calvin Klein, Donna Karan, Hugo Boss, and Giorgio Armani are some of high quality labels one can find at Macy’s department. Customers, therefore, make their online purchases through macys.com and Bloomingdales.com. Macy’s department stores, in relation to e-commerce, is characterized in the way Macy’s company conduct their product display, ordering procedures, payment and delivery procedures (Smith, 2009).

Product display is where lists of offered goods are available to the costumers accessing the website. Macy’s website provides the location of its stores, different products in each floor and sections ascertaining the customers on the availability of the product. The website also proved a catalogue on each item giving more information about the item. For example, the catalogue contains item’s price and status whereby the item might be out of stock, sold or on offer. Macy’s item ordering procedures involve identifying a product, creating an account and finally purchasing the product.

In the opening of an account, the customer submits his email address, personal details and bank details. The company also allows payments using the wire transfer, internet or credit cards. Upon shipment, the company also provides delivery services to the customer at an addition fee. There are a number of ways online transactions add value to Macy’s department store companies. The first one is an increase in company’s net profit. In 2011, the company had made sales 26 billion dollars which was about 14% of the whole online market sale in America.

This year on 21st of February, the company reported its first quarter net profit to have increased by 11.7% compared to the previous year (Lakshmi, 2010). The second benefit of going online is expansion of the market. Macy’s company currently ship goods to over 100 countries worldwide unlike before when the only market it had was USA populace. Lastly, online transactions offer more improved and accurate data keeping on the methods. The new online stores automatically update the status of every item which could be either sold, ordered, returned or out of stock.

These enable the company management take the rightful action as well as a reduction in the losses from poor record keeping. These records can also be used later to recommend a new product to customers as per his or her taste. Electronic selling of goods and services in Macy’s company has enhanced its traditional channels in a number of ways. The first is in promotion of products where the company and the customers directly interact in exchange of information. The second one is an addition to sales channels.

Macy’s company can utilize the internet services at the same time utilizing the counter and open market sales channels. The third one is a reduction on the cost incurred in delivering information to customers with non-electronic delivery (Smith, 2009). The Internet provides a cheaper and effective means in delivering the same services. The fourth one is the enhancement of customer services where the customer can access detailed information over the internet. Macy’s online department also uses automated machines to answer customer’s question within a second.

The fifth one is the establishment of corporate image. It is easier and quick to establish a corporate image via the internet on the company’s website. The sixth one is that the internet makes receiving and requesting of orders quick and time saving. The seventh is that the company can access a pool of cheap and ready labor. The eighth one is that e-commerce enhance product improvement in the production cycle where Macy’s can take designs from consumers and pass then to designers. Finally, it enhances the tradition finance accounting systems.

Electronic cash transactions are more effective and involve legal procedures hence exceedingly rare cases of fraud (Lakshmi, 2010). In conclusion, this paper gives a clear description of Macy’s company on the point of view of e-commerce. It also states how internet transitions have added the company value and how it enhances traditional marketing channels. From these, it is true to say e-commerce compliments traditional channels. References Lakshmi, L. (2010). Impacts of E-Commerce on Business.

Retrieved from http://www.articlesbase.com/ecommerce-articles/impacts-of-ecommerce-on-business-1882952.html Lewis, R. (2011). Macy’s: The Biggest and Last Department Store Standing? Or an Emerging New Model? Retrieved from http://therobinreport.com/macys-the-biggest-and-last-department-store-standing-or-an-emerging-new-model/ Macy’s Department Store. (2012). Retrieved from http://www.aviewoncities.com/nyc/macys.htm Smith, H. (2009). Macy's chief addresses power of e-commerce. Retrieved from http://www.lvrj.com/business/macys-chief-addresses-power-of-e-commerce-60601962.html