As discussed in previous article, here I shall be discussing the marketing strategy for electronic business website. My research indicates that it is a vast concept and is usually dependent on what exactly is your website type.
Since, covering all concepts is beyond the scope of this article, will discuss the basics in this article and the exact strategy per type shall be dealt in subsequent articles.
The components we require
Electronic business is a vast concept involving several components. It not only involves electronic buying and selling of goods and services but also needs a robust and excellent Supply Chain Management (SCM), a interactive and efficient Customer Research Management (CRM) and an Enterprise Resource Planning (ERP) integrated with Business Intelligence to manage all this.
How to manage competition
Marketing managers today discuss about Porter’s competition forces. These are: The current competitive scenario, The entry / exit barriers, Substitute related threats, Supplier bargaining Power and Buyer bargaining power.
The current competitive scenario – The electronic business is the most competitive market today. If you wish to develop an electronic business marketing strategy, then you must carefully check the competitive scenario depending on your exact niche.
The entry / exit barriers – In an electronic business, these barriers are simply non existent. Due to this, any one can join and any one can leave anytime. You never know that the webpage owner who just joined has better market potential than you do.
Substitute threat – This is an important part. Substitutes are called indirect competitors. They can steal away the market from you if they are cheap and better. As a manufacturer, please beware!
Bargaining powers of suppliers and buyers – How can you manage your buyers OR the suppliers will define what will be the path of your future. Due to huge competition and ease of access, we are actually increasing the bargaining powers.
So, we need to carefully study all 5 strategic tips mentioned above.
Marketing! Why is it required
Marketing has exactly 1 objective – to optimize brand equity. Some people wrongly assume that marketing is done to optimize revenue and money. To those, I have a genuine question – You do not work in a job just to interact with different people at a time? Do you? That is a byproduct. Similarly, marketing is not just aimed at getting revenues. It is aimed on something vast. It is aimed on Brand Equity.
I propose a formula here for better understanding.
Brand Equity = Profitability x Goodwill
Brand Equity is the simple product of profitability and goodwill.
We need marketing to achieve this stage of business level. But, what exactly is marketing?
Marketing is identifying the hidden needs of the customers. It is about finding what the customer wants, analyzing what the current scenario is trying to bridge the gap between the two. It is different than sales which is just about physical selling of goods as sales is about doing commerce from the seller’s perspective while marketing is about managing business from the buyer’s perspective.
These are the basics we need to proceed further. In subsequent articles, we will try to find marketing strategy for electronic business.
Please tell your opinions & experiences via comments.