- March 24, 2013
- Posted by: essay
- Category: Term paper writing
Today, the importance of e-marketing can hardly be underestimated because, in spite of the early skepticism of conventional retailers, e-marketing is currently booming and, in the nearest future, e-marketing is likely to keep growing even more. In this regard, consistent technological and social changes contribute to the fast development of e-marketing. On the other hand, the development of e-marketing may challenge the traditional approaches to marketing and business development, although basic principles of marketing remained unchanged but e-marketing has its own specificities that distinguish e-marketing from conventional marketing consistently.
At this point, it is worth mentioning the fact that key concepts of conventional marketing are still relevant in e-marketing. To put it more precisely, companies operating online and developing their e-business still have to pay a lot of attention to such concepts as brand recognition, firm reputation and store location, which are still keys for the marketing success even after the shift toward e-marketing.
At the same time, e-marketing has its specificities, such as frequent changeability of prices, which is feasible and desirable for e-marketing. To put it more precisely, many companies operating online tend to change the price of their products depending on the consumer and competitors’ behavior. As companies change the price, they can attract or, in contrast, distract customers. Customers have the wider access to information concerning products and their prices. Therefore, they use internet to compare products and their prices. Moreover, they conduct search on the ground of the product not the store. As a result, changes in the price of products may be crucial for the business success of e-companies.
In this regard, companies operating online should take into consideration the fact that the optimal markup depends on the price sensitivity of customers and price elasticity of demand. Companies can determine customer sensitivity and markup through changing prices of their products. At the same time, companies should be aware of the fact that, today, consumers are more sensitive to prices because they have wider information concerning prices. In such a situation, changes of prices may be essential to maintain the competitive position in the market.
At the same time, today, it is possible to trace, the dependence between the price and life cycle of the product is high. In fact, the life cycle of many products has shorten and customers have to buy products more frequently. Therefore, companies have to update or improve their products as well as change their prices more frequently too.
In addition, the increase of competitors affects pricing policies of companies. They have to change their prices as the number of competitors grows. As a rule, companies decrease their prices to maintain their competitive position in the market. At this point, brand and location of companies may be still important. However, the price flexibility becomes the key to the overall business success for companies operating online.
Thus, on analyzing the chapter, it is important to place emphasis on the fact that the contribution of the chapter to better understanding of e-marketing can hardly be underestimated. In fact, the chapter helps to understand the shift from conventional marketing to e-marketing and specificities of e-marketing compared to conventional marketing. At the same time, the chapter proves that marketing still preserves its fundamental concepts and principles.