E-Commerce Marketing
...ce Implementation Issues Financial Performance monitoring 5. Conclusion Based on current knowledge state General environment To gain a clearer understanding of the implication of E-Commerce in the formulation of marketing strategy, it is important to have a clear understanding of the environment and it's relevant effects. The next crucial element is to gain an understanding of E-commerce itself, as well as the current and possible future developments. In understanding E-commerce's impact on strategic foundations, an organisation's strategies can be more clearly focused. Once the organisation and E-commerce's respective environments are clear it is then possible to understand E-commerce's implications in fundamental marketing strategies. By focusing on tools such as the competitive strategy framework we can gain a better understanding of strategy formulation. Tehnology For example, an organisation thinking of developing a Web site must be strongly aware of technological issues that must be considered in starting something like this. The decision to develop a web-site internally or externally would be a key issue for any organisation. Internal web-site development would require a vast understanding of technology and require this environmental factor to be constantly reviewed and analysed. In any case, awareness of technology is vital in planning marketing and business strategies, and should be closely followed. Externally the company will make use of the existing tehnology in the industry, which is competitive, but the price of it may not be advantageous, so thie is another problem the company has to study. Market environment The growth of E-commerce has transformed the way in which consumers purchase products as well as how organisations operate. The Internet provides the necessary tools; easy operation and exchange of information; and therefore effects all diverse industries and organisations. The Internet has become a useful tool for selling, buying and distributing goods and services globally in a rapidly growing supply chain. The potential market that the Internet provides has little or no restrictions by either geography or time. Opportunities in E-commerce are enormous, as present growth and development have proved. The Internet provides a virtual marketplace, providing huge opportunities in the marketing strategies that an organisation my wish to develop. The world wide E-commerce revenues were of over $350 Billion in the year 2000. Marketing strategy Micro Environment is by far the most relevant in measuring the impact of E-commerce on the marketing strategy formula. While the upper levels in the hierarchy shapes the direction in which various marketing strategies are planned; this level develops the functional elements of this strategy. Retailing in E-commerce A major shift in the evolution of E-commerce is it's impact on the traditional retailing system, in particular the shift of intermediaries from the distribution channel. In theory, the Internet allows manufacturers to sell directly to the consumer, cutting out the traditional ideals of a middleman or intermediary. Costs As with almost any strategic plan, there are associated costs that derive, and this is reflected also in E-commerce. Such cost could be identified as follows: Connecting to the Internet (The Internet Service Provider) Hardware and software Web site and advertising designers Staff to maintain the Web sites and manage e-mail with stakeholders. Performance monitoring As with any strategic formulation, E-commerce requires appropriate performance monitoring to ensure that it is sincronised with the companys objectives and strategy. This includes ensuring that any adaptation to E-commerce is monitored, including staff training and awareness. The use of E-commerce in an organisation must be carefully monitored to ensure that it remains productive, and that they generate some sort of gain. As well as these functional aspects, it is necesary that the actual strategies that are formulated to be constantly reviewed, and future developments to be adapted into such strategies. Conclusion E-commerce is revolutionising the way in which an organisation thinks, and in particular how an organisation bases it's future goals and objective. An understanding of the critical make up of organisations, and how they develop their strategies, helps to close the gap between E-commerce and strategic marketing. An organisations strategic planning helps providing a basis for evalu...