Grewal And Ebay: Definition Of The Marketing Strategy?

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1.1 Definition of the marketing strategy Grewal and Levy (2010: p32) state that ‘a marketing strategy identifies, (1) a company’s target market(s), (2) a related marketing mix - their four P’s and (3) the bases upon which the firm plans to build a sustainable competitive advantage’. Kotler and Keller (2012: p 274) further explain that the marketing strategy is built on segmentation, targeting, and positioning (STP). And that a company determines diverse needs and groups in the marketplace, targets those it can fulfil greatly, and then positions its offerings and so the target market recognizes the company’s unique offerings and images. By exercising the marketing strategies described above eBay’ has become the most popular marketplace for…show more content…
Conversely, the benefits of online shopping is that due to the nature of the business, expenses and expenses are normally lesser than returns on investment. eBay too, at all times has sales promotions and trade promotions as well as offers to fascinate customers which are featured on the daily deals page. Place in the marketing mix of eBay Bhasin (2015) reported that one of the advantages of online portals is on the cost because they do not have to spend on retail setup or real brick and mortar setup. eBay is virtually present on any computer which has an internet connection. Consumers can use the site to compare products, terms, price and appearance of the product. Consequently, consumers get everything that can be found in a physical retail store. Another portion of distribution where online retailers are really competing in the market is delivery time (Bhasin, 2015). eBay has distribution centres located strategically and it can distribute within 2-3 working days anywhere. In metros, eBay even offers single day delivery at an extra cost. They even offer replacement guarantees so that the customer is happy at all time. Thus, the distribution is a strong point for eBay marketing…show more content…
The four macro strategies which are identified by Grewel & Levy (2010) are described in detail below: 1. Customer excellence - Initially eBay invested greatly into Information Technology (IT) and customer relationship management (CRM), knowledge and skills as methods to satisfy its customers. Since then, eBay has managed to use these investments to service over 100 million users and became the most popular online shopping site. 2. Operational excellence - eBay uses PayPal, a unique payment method to process almost all of the payments going from eBay’s website and with a closer control over buyer’s shopping experience. PayPal provides a user friendly online payment

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