We utilize security vendors that protect and ensure the integrity of our platform while keeping your private information safe. Marketing Management, London: Sage, 2007. We document the prevalence of a wide variety of seller strategies, even in the presence of a well-honed strategy used by high-volume sellers on eBay. Electronics has been at the fore front for Ebay. Cookies Policy, This case study on eBay Strategic Marketing was written and submitted by your fellow student. The buyers can choose between negotiating and paying the prices offered by the sellers. 0000008809 00000 n A firm’s marketing mix (or 4Ps) defines the strategies and tactics used for executing a marketing plan, involving decisions regarding product, place, promotion, and price (4P) variables. Following this model, the company started to show description of product and attractive visualisation, which motivated customers to buy product from EBAY site. "eBay Strategic Marketing." Second, eBay has focused on improving its efficiency in order to reduce transaction costs. IvyPanda. Second, the fees for selling various products should be different. This strategy influence marketing and sale of product (Morris et al. eBay collaborates with customers who advise it on the markets to serve and how to improve its services. 296 0 obj << /Linearized 1 /O 299 /H [ 1200 830 ] /L 698795 /E 106169 /N 27 /T 692756 >> endobj xref 296 29 0000000016 00000 n 0000105695 00000 n eBay’s fee structure is not optimal because the insertion fee is higher than the final value fee. Aug 27, 2016 12:58:01 PM "What a great idea" the leader of the weekly marketing meeting said to one of the participants. 0000000931 00000 n eBay is one of the most successful companies in the online retail industry. For instance, the company has adopted mobile phone applications that enable buyers and sellers to access its services through smartphones such as iPhone. �{�)�ַ�)����ʇl5̿F�g��5��J�F�n��%��� �)�o�.��5?l� eBay collaborates with customers who advise it on the markets to serve and how to improve its services. It also used the strategy and its ability of piggybacking on the ceaseless efforts made by its competitors and contemporaries for retaining market recognition. 0000002460 00000 n This makes the value chain of eBay to be quite unique compared to other many e-commerce companies. Third, the company has put in place measures to ensure trust between buyers and sellers. 0000001049 00000 n Attempting to sell a product that has no proven demand is a recipe for disaster. With 128 million users, sellers need to optimize their strategies to get the most out of the giant opportunity. For instance, a product worth $30 will cost $2.8 to sell, whereas selling a product worth $60 will cost $3.42. For full functionality of this site it is necessary to enable JavaScript. The system should enable buyers to reclaim their money if their goods are not delivered. This will facilitate revenue maximization since the auction price is often higher than the listing price. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. First, the company depends on transaction fees as its main source of revenue. 0000009058 00000 n The resulting improvement in customer satisfaction and loyalty enables the company to defend its market share. professional specifically for you? With these top 5 tips in action, sellers can enjoy the benefit of increased sales and profit. (2019) 'eBay Strategic Marketing'. Moreover, the company should expand its market share by providing advertising and shipping services, as well as, joining new markets. Fourth, the company should focus on improving shopping experience on its website. The loyalty tools and online marketing strategies employed by organizations such as eBay, PayPal and Skype Internet Telephony have been evaluated in … In addition, it has invested in technologies that facilitate payment and communication between buyers and sellers at a low cost. d0�������g`�9�-%�bkf�-k�R7}C��~.���)���@%W��A��.�� ��� endstream endobj 324 0 obj 707 endobj 299 0 obj << /Type /Page /Parent 289 0 R /Resources << /ColorSpace << /CS0 306 0 R /CS1 304 0 R >> /ExtGState 300 0 R /Font << /TT0 303 0 R /TT1 302 0 R /TT2 309 0 R /TT3 310 0 R /TT4 313 0 R >> /ProcSet [ /PDF /Text ] >> /Contents 307 0 R /Thumb 216 0 R /MediaBox [ 0 0 595 842 ] /CropBox [ 0 0 595 842 ] /Rotate 0 /LastModified (D:20071204124421+05'30') >> endobj 300 0 obj << /GS0 321 0 R /GS1 322 0 R >> endobj 301 0 obj << /Type /FontDescriptor /Ascent 891 /CapHeight 0 /Descent -216 /Flags 98 /FontBBox [ -498 -307 1120 1023 ] /FontName /FPPPHL+TimesNewRoman,Italic /ItalicAngle -15 /StemV 83.31799 /FontFile2 320 0 R >> endobj 302 0 obj << /Type /Font /Subtype /TrueType /FirstChar 32 /LastChar 117 /Widths [ 250 0 0 0 0 0 0 0 0 0 0 0 250 0 250 0 500 0 500 0 0 500 500 500 0 0 0 0 0 0 0 0 0 0 611 0 0 611 0 0 0 333 444 0 0 0 667 0 0 0 0 0 0 0 611 0 0 0 0 0 0 0 0 0 0 0 0 444 0 444 0 0 0 278 0 0 278 0 500 500 0 0 389 389 278 500 ] /Encoding /WinAnsiEncoding /BaseFont /FPPPHL+TimesNewRoman,Italic /FontDescriptor 301 0 R >> endobj 303 0 obj << /Type /Font /Subtype /TrueType /FirstChar 32 /LastChar 169 /Widths [ 250 0 0 0 0 0 0 0 333 333 0 0 250 333 250 0 500 500 500 500 500 500 500 500 500 500 278 278 0 0 0 444 921 722 667 667 722 611 556 722 722 333 0 0 611 889 722 0 556 0 0 556 611 722 722 944 0 0 0 0 0 0 0 0 0 444 500 444 500 444 333 500 500 278 278 500 278 778 500 500 500 500 333 389 278 500 500 722 500 500 444 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 333 333 0 0 0 500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 760 ] /Encoding /WinAnsiEncoding /BaseFont /FPPPGJ+TimesNewRoman /FontDescriptor 305 0 R >> endobj 304 0 obj /DeviceGray endobj 305 0 obj << /Type /FontDescriptor /Ascent 891 /CapHeight 656 /Descent -216 /Flags 34 /FontBBox [ -568 -307 2000 1007 ] /FontName /FPPPGJ+TimesNewRoman /ItalicAngle 0 /StemV 94 /XHeight 0 /FontFile2 316 0 R >> endobj 306 0 obj /DeviceRGB endobj 307 0 obj << /Filter /FlateDecode /Length 312 0 R >> stream In addition, high competition is likely to reduce revenues, which in turn will reduce the company’s profits. This means that a customer who is selling the item worth $30 will pay 9.33% of the value of his or her product. These markets have a large number of small businesses that are likely to use eBay’s website to sell their products. Third, eBay should introduce new product categories on its website. For instance, it should establish a complaints management system to protect buyers from fraud. This is IvyPanda's free database of academic paper samples. View Samples. trailer << /Size 325 /Info 286 0 R /Root 297 0 R /Prev 692745 /ID[<0ac2052b59885ce2c977b4fc50c62888>] >> startxref 0 %%EOF 297 0 obj << /Type /Catalog /Pages 285 0 R /Metadata 287 0 R /AcroForm 298 0 R /FICL:Enfocus 293 0 R >> endobj 298 0 obj << /Fields [ ] /DR << /Font << /ZaDb 213 0 R /Helv 214 0 R >> /Encoding << /PDFDocEncoding 215 0 R >> >> /DA (/Helv 0 Tf 0 g ) >> endobj 323 0 obj << /S 679 /T 861 /V 930 /Filter /FlateDecode /Length 324 0 R >> stream Every acquisition was for e commerce bringing hoards of opportunities for eBay. IvyPanda. Print. The company provides a platform that enables individuals and businesses to sell and purchase efficiently. 0000004002 00000 n The pricing system improves customer satisfaction by enabling buyers to get the best deal, whereas sellers benefit from high profit margins. During the initial years of the establishment of eBay, not a single dime was spent by the company for the purpose of marketing. � y��X����h�o/&���,�O�૗���0��8H�.,y�r�f���*_A+,#�����7�a Pride, William. Online auction is one of successful business model on e-commerce. Keep yourself safe by staying at your home and let us work on your assignment. From our experience with selling on eBay, the fundamental difference between regular sellers and pro sellers is marketing. The reduction in transaction costs is an incentive to buyers and sellers to continue using eBay’s services. Second, eBay has no control over the products on its site. For example, eBay's trading volume is close to 4.552 billion dollars, and net profit is 1.082 billion dollars in 2005. Advertising services will also be a source of income to the company. Introducing shipping services will improve consumer trust and reduce sellers’ transaction costs. 0000007123 00000 n Moreover, PayPal provides instant and cheap payment solutions that can be used by buyers and sellers in nearly all parts of the world. In addition, technological advancements such as video conferencing, social media, and increased use of smartphones provide growth opportunities to eBay. The company has focused on acquiring established and trusted online retailers such as Shopping.com and StubHub. "eBay Strategic Marketing." �r��~�X ��f�-��!A��,d��g&���,$9R!rἕe)h�Ftr��?u�R|�#�^�u�wZ�C�Ntȱ��ެf��~)r#� LB�g����GI��p�Ȩq8z��@�g���al�o;y��|��䯫\�J��6J�woԈ\Q�k��M#��P�؁���Q5� �U�f��(.ڭl�3Z��$7�s��lH�k�M7��ݜ��D}�� This case study summarizes the strategic approach used by eBay to take advantage of increased consumer adoption of the Internet. Choosing the eBay as the marketplace to sell your products online is a good start. Search for listings, products and sellers that are already selling large volumes and try your best … H��Wٖ�H}�Wģ̱�2���P4L7��ez`��,;�d�hq|�D�"�l����FF޸q#"� �7����Rt� ��n�Nv�*�Q���nش�����j ���,��(�`U ��kK�G~�@r�gA��,�,�!��Z���B?�xFv�����X����3�g��Wf�u M3|��i�D����0�s�1�Ж8ڵ�&�F��IB��ytnY���>8}Gg,��#�sэ>ܔ��y���e�U�eߪJj���trc-Iћ�j��U�>̗�ϗ�������X���;hx@�A:�l#�-k��:F+�xlc�D�p�r����� The key to profiting in the new world of eBay lies in some tried and true marketing techniques and some digital age selling savvy. " In Michael E. Porter’s theory, generic strategies determine competitive advantages in target markets. 0000105557 00000 n How important it is to be the first mover can also be seen by the failed marketing entry of eBay into the Japanese market. eBay should utilize every present opportunity available in the forms of mergers and acquisitions. 0000008154 00000 n This exposes it to the risk of making losses if competition results into a reduction in transaction fees. 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