In starting an E-commerce business the most appropriate marketing strategy would be the segmentation marketing strategy that involves choosing a specific target market. This would be suitable since a person can channel most of his resources in an identified group.
A segmentation market strategy is also advantageous as the marker can bank on the competitive advantage he processes against a competitor. Through segmentation, a business can realize maximum profit from its services and identification of particular segments a segmentation marketing strategy also gives the marketer a chance to adapt and incorporate different customers’ needs and requirements into the services they offer.
This will enable production of quality services at an attractive price since the marketer shall have identified the highest source of income / value to fetch in a particular segment. The issue of cost obviously comes into play when dealing with both marketing and social networking strategies. The cost of the type of marketing strategy chosen is directly proportional to the cost of networking used. The capital available directly dictates the success rate of the strategies chosen. (Restrepo 1)
The following need is essential in launching the E-commerce business. They include establishment of a website that will describe all the essential features of your business, what kind of services the business offers, its major objectives and the target group. Prior research and knowledge of you competitors business is also very important.
The product must be well illustrated using diagrams for better consumer understanding. Coming up with a detailed and efficient business plan regarding the operations of the business is also very important. Software that will prevent hacking and seeking information through illegal means should be acquired to prevent piracy and web theft. Understanding the language used in e-commerce is very important. These languages and words are referred to as e-commerce glossary (Pablo 3)
In establishing a first step mover advantage in a foreign country of a person’s choice, the following steps need to be followed. The first step is segment identification. Knowledge of the segment variable is very important in segment identification.
The segment variables comprises of three important features which are personal characteristics, benefits sought and behavioral measures, personal characteristics involves knowledge of the customers distribution in terms of Geography, their personal lifestyle, their population and personal attributes.
This will enable a marketer to know the consumers need enabling him to adapt to various marketing styles. Benefits sought by the customer or consumer will be very important in determination of quality and style.
This will also enable a newcomer in a business to have added advantage in a foreign country. The third segment variable is behavior measures. All matters relating to attitudes of a consumer, buying patterns, loyalty to a particular product or service, shall be useful for a newcomer in a country to have first advantage (Restrepo 1)
The second stage is the kind of technique that will be used. The segmentation technique that will be used will be very important in the foreign country as it will affect how the customers receive the services or products you offer. Poor technique will fail as it may not be common or appropriate in the foreign country (Restrepo 1).
The third stage of that can be used developing of a specific mechanism to satisfy the needs of consumers and being at par with the market conditions. This involves knowledge of fellow competitors and the current standards of the service or product in the market. Satisfaction of needs will also include developing counter measures to sensor competitors moves or to rival a competitor’s performance in service or product. This will also give a newcomer added advantage in a new country.
Pablo, Jeblo. E-Commerce White Paper: Launching Your e-Commerce Business, 2011.1-2. Electronic
Restrepo, Jorge. Segmentation – Targeting – Positioning, eurekafacts. 2008. 2. Electronic.