Internet Marketing Development - Essay Example

Marketing Internet In the business, different industry is in competition. The traditional trading with a physical storefront has been since time in memorial. During this age of digitization and advancement of technology, this innovation now serves as a gateway for merchants, business enterprises and even sole proprietors to join the jargon of e-commerce (electronic commerce). Even before the boom of dot-com, many business ventures already tried to exploit the novelty brought by this technology but just this recent decade it had reached its mass marketing that reached the worldwide web audiences. Taking eBay as an example, it is noticeable to the public that it is the most popular online company which offers online auctions, shopping stores and delivering services to clients online. eBay has gained the reputation for serving the kind of services they offer online for millions of clients worldwide. Millions of collectibles, appliances, computers, furniture, equipment, vehicles, and other miscellaneous items are listed, bought, and sold daily (eBay, Wikipedia). eBay business approach comprises mounting profits by increasing international traffic contained by the eBay structure. eBay is continually trying to reach different countries outside the USA, which includes market deals in Asia Pacific and Europe. The company also does acquisition of related business online companies to integrate in their current systems. This strategic approach enables eBay to expand not online in the previous services and business they handle but enlarging its business scale. Consumers and analyst view eBay as a successful business venture with over $4.55 billion total revenues in 2005. Successful as it may seem, why eBay not explore the venture of becoming a brick and mortar industry This may be an issue or another area where eBay may win in the competition though they are already a winner. In a continuing development, large businesses that existed before the invention of the Web (and were therefore bricks and mortar businesses) are becoming clicks and mortar businesses. Companies like eBay.com and others that have never owned a bricks and mortar storefront are usually known as dotcom companies. Considering the brick and mortar business, with having the physical and online business presence, eBay has a lot of opportunities to explore and take into their serious business plan in the future. Like Target Corporation (www.target.com), has practicing this kind of business enterprise as e-commerce since 1999. The corporation started as a specialty discount store and now boomed and became one of a leading merchant store. In United States, there have 1,447 stores. It now has different subsidiaries and planning to expand abroad to reach greater number of consumers. The first few Target stores included leased supermarkets in addition to general merchandise, which during the time was a common practice by discount retailers as they attempted to offer a one-stop shopping experience to customers. As a result, Target stores tend to attract younger and more educated and affluent customers than its competitors. Currently, the median Target shopper is 41 years old, which is the youngest of all major discount retailers that Target competes directly against (Target Corporation, Wikipedia). eBay may have a behind the scene approach in the e-commerce business and Target Corporation has its own. Ebay started business online while Target Corporation has been on the business since 1960s and just recently moved online to cater consumers who cannot drop by their store outlets across the country. Differentiating their nature may see some advantages and disadvantages of practicing such business. Will one be of gain by practicing the brick and mortar business This engages systematize shipment, access into shops, handling money, signing credit card, selecting/seeing the product, carrying the product and finding the right aisle to get out. Today there are many online stores selling products from books, CD's, flowers, groceries, services, software and more. Online availability of supermarkets means clients can select the products they want and have them delivered to their home. Employing brick and mortar practice means a lower cost of capital. Recognized firms will have a lower cost of capital. Bond issues may be available to existing firms that are not available to dotcoms. The underwriting cost of a dot com IPO is higher than an equivalent brick and click equity offering. Successful firms tend to have one or two core competencies that they can do better than their competitors. It may be anything from new product development to customer service. When a bricks and mortar firm goes online it is able to use this core competency more intensively and extensively. The bricks and clicks strategy has typically been used by traditional retailers who have extensive logistical and supply chains. Part of the reason for its success is that it is far easier for a traditional retailer to establish an online presence than it is for a start-up company to employ a successful pure dotcom strategy, or for an online retailer to establish a traditional presence (including a strong brand). Bricks-and-mortar companies have tremendous competitive advantages in bolstering their brands through establishment of online pricing strategies that support their overarching corporate identities. While it's important that online and offline pricing strategies remain consistent for clicks-and-mortar retailers, this study suggests that online pricing affords additional flexibility and has some unique characteristics. Within either business mode, as the scope of available analytical data expands, so does the potential value of actionable information produced. But so does the cost of obtaining and compiling the data. A framework of some type is required for defining and approaching these issues in an orderly fashion. A typical pure-play e-business enterprise probably entered the digital marketplace earlier than its more conservative bricks-and-mortar competition, and is therefore likely to be farther along in the e-business maturity cycle. Bricks-and-clicks are discovering that what was previously thought to be a disadvantage-the existence of legacy data assets-is in actuality an advantage. A time-tested technical infrastructure is likely to constitute another considerable advantage of established businesses. As seen, eBay and Target Corporation have its advantages and disadvantages in practicing business online and offline. Many retail industries are still practicing the traditional trading and commerce and not seeing the potential of going online commerce. This may involve some adjustment in management and investment. Whether the company is targeting of reaching wider range of consumers, what matter is where they can gain revenues in a way or the other. Works Cited "eBay." EBay - Wikipedia. 02 July 2006. 04 October 2006. . "Internet Marketing Strategy: Why is it Important" About.com. 30 June 2006. 05 October 2006. . "Target Corporation." Wikipedia. 30 June 2006. 05 October 2006. . "Strategic Internet Marketing - Internet Marketing Consulting." Wikipedia. 12 August 2006. 04 October 2006. . "Bricks and mortar business." Wikipedia. 30 September 2006. 05 October 2006. . Read More