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Today's advancing world of business has brought many opportunities for producers to cater to consumers. It has encouraged the growth of Internet technology to use in the means of business, to bring it to greater heights. The advancement of technology opened opportunities for organizations to expand beyond their reach with the beginning of E-commerce.
According to www.businesstown.com,” Electronic commerce is the paperless exchange of business information using electronic data interchange (EDI), e-mail, electronic bulletin boards, fax transmissions, and electronic funds transfer. It refers to Internet shopping, online stock and bond transactions, the downloading and selling of “soft merchandise” (software, documents, graphics, music, etc.), and business-to-business transactions.”
E-commerce basically comes down to one thing – employing the Internet to do business more effectively and efficiently. It is about giving customers control over purchasing behavior and letting consumers serve themselves better while giving producers the chance to committing an online effort to increase their market share. As a result of this, many marketing communication strategies have been implemented. Marketing communications not only concern with product and services promotions but also impacts the promotion of a company's corporate image. Marketing communication, according to Kimmel (2005) in his book 'Marketing Communication',” or the so-called promotional mix… represents a critical mediating process that links a company's offering to its intended consumers.”
Amazon.com is an online retailer selling products and services such as books, appliances, DVD's and B2B services and many more. Amazon.com is a global brand and a pioneer in the e-commerce industry. Amazon aims to focus on customer experience through offering a wide array of products at low prices at the most convenient possible way. The company aims to provide the world's biggest selection of merchandise while maintaining an organization that is operated from its customers' point of view.
Although the company makes billions of dollars a year, to achieve their aim of expanding, Amazon.com needs to restructure its marketing communications strategies. The Internet has come to an age where every user today is no longer captivating and audiences are used to tactics employed online when producers market their products and services. While Amazon.com works to gain repeat purchasers for their products through their web-site, a larger market out there can be targeted through other forms of media in the marketing communications mix.
Amazon needs to think outside the box…instead of focusing all their efforts at advertising online, they could implement other marketing tools through conducting most of their branding efforts offline such as sending out brochures, catalogs and place ads in magazines. Other forms of media can be implemented as well, such as through television and radio. Thus, although the Internet offers electrifying prospects for marketing communication, it can rarely stand alone as a brand-building tool. Instead, it must be carefully integrated into the broader marketing communications mix.
According to the excerpt “The Internet, Interactivity, and All Those Nets and Dot-Coms : Disintegrated Marketing Communications?”, “The Web's ineffectiveness as a major brand building tool is one of today's hottest marketing issues”. (Kotler, P. Armstrong, G. & Cunningham, P. (2001). Advertising and focusing marketing strategies online alone is barely notable to the user, as shown in the excerpt – an advertisement on the television or a jingle from a radio ad is more likely to stick in the minds of the consumer rather than an online advertisement. Top B2B e-commerce organizations such as Cisco Systems market themselves through full-page ads in the Wall Street Journal relatively to Web banners.
There are many limitations of the internet in the form of marketing. Although considered to be the best media to promote a product, it still comes down to mainstream media to effectively market a product. The major limitation of the Internet is the coverage. While there are a growing number of households with internet, many consumers still prefer traditional media compared to buying their products online. The competition online for Web-surfers is also a limitation to the Internet. The increasing number of web-pages makes it progressively more complicated to capture consumers' attention. [Cateora P., Graham J. (2008)]
Web ads still do not have the impact producers and marketers want for their products. Consumer are still attracted and intrigued by ads that are seen, heard, smelt, taste and touch rather than the occasional pop-up ad online that annoys them which immediately makes them close it. In a recent survey noted in an excerpt, “In the digital world, consumers control ad exposure. Many consumers who've grown up with the Internet are sceptical of ads in general and resentful of Web ads in particular. Internet advertisers face an uphill battle in getting such consumers to click onto their ads. In fact, a recent survey found that 21 percent of Internet users polled said they never clicked on Internet ads and another 51 percent said they clicked only rarely.” (Kotler, P. Armstrong, G. & Cunningham, P. (2001).
Consumers have become so used to pop-ups online, that they automatically close the ads before even glancing at it. Even advertisement banners across the top part, side and bottom of the web page do not necessarily encourage any sales boost. Consumers tend to remember commercial jingles and slogans for yesteryears rather than an online ad today. But as noted in the article, it has to be a balance of both worlds – e-commerce and traditional commerce. (Kotler, P. Armstrong, G. & Cunningham, P. (2001).
A large organization such as Coca Cola even has a website (www.cocacola.com) to cater to merchandise and collectibles enthusiasts. Though their main products which are the famous carbonated drinks fondly known as “Coke”, it is not sold online. Their products are for consumption and are marketed throughout without actually having the need to maintain a website.
Amazon should create an image for itself that showcases what it really does. Most consumers know Amazon.com to be a site that sells books. What the company really is all about is to encourage, introduce and expand other businesses online through it main web portal. Amazon should strategize ads targeted towards businesses that would like to enter e-commerce. Amazon needs to expand globally through other Medias with the appropriate marketing campaigns. Amazon today is a highly successful e-commerce website in the US, Canada and Europe. Though known throughout most developed countries, not many consumers actually purchase products online. Online purchasing is still relatively new in the Asian market, but Amazon can encourage this behaviour if implemented the right tools. For Amazon to prosper even further and gain global market share, they need to focus on other areas.
Focus on the availability of the markets advertising media.Amazon should review on the potential markets in other countries such as Asian countries. Many countries use as many as 40 to 50 different Medias as national coverage. [Cateora P., Graham J. (2008)]
Focus on improving information of coverage. Expand coverage throughout localities by expanding locally and regionally. Partnering with local e-commerce sites such as www.Lelong.com.my and www.mudah.com.my could gain help Amazon gain market share in Malaysia. Ebay has a Malaysian portal known as simply, eBay Malaysia at www.ebay.com.my to cater to the local market.
Focus on improving market data. Amazon needs to research and analyse potential markets to improve market data on consumer behaviour. Amazon needs to be kept up-to-date in order to move in with the fast-changing pace of consumer's tastes and preferences. [Hawkins, D Mothersbaugh, D & Best, R (2007)]
Marketing campaigns have to be targeted and remain focused on the aims and goals of the company. The aims of these marketing communications strategies are to communicate a company's message and appeal in an organized, identifiable and persuasive approach.
As Kimmel (2005) pointed out in his book, marketing communications has developed into a complex far-reaching medium for most organizations today. Marketers today are entrusted with the latest technologies through the evolving ranges of possible types of marketing communication tools. Though the internet is one of the most effective tools in the marketing communications strategy, other forms of media can be taken into consideration to stimulate the desired responses from target market. Consumers' behaviour is constantly changing, hence the need for marketers to constantly evolve and remain positive. According to the author, “competition is so strong in the contemporary marketing environment that marketers a re obliged to keep experimenting with different ways and means to direct their messages to increasingly jaded consumer audiences.” [Kimmel A. (2005)]
Traditional media selection is still the staple in any major media marketing campaign. That is why Amazon.com needs to reconsider other marketing communication tools to implement their strategies. Many producers in other countries still maintain newspapers as their overall market coverage due to the many alternatives in newspapers. The appropriate messages through this media are vital. Amazon's books could be advertised in newspapers to consumers routing them towards the website. Segments in newspapers could showcase different genre books, business section could advertise business management books or the entertainment section would mean advertising a new CD from a pop artist.
Another form of marketing communications tool is magazines. Advertising in overseas edition of reputable magazines such as Readers Digest International could introduce Amazon to many potential customers. Overseas edition of the magazine is available in more than 20 different languages, and Amazon can advertise its services in the local languages. Magazines provide critical brand awareness. It has a clear and specific demographic selectivity as well as geographic flexibility across many urban markets.
Radio and television today are major communications media in most nations. In countries like Japan, television is a national obsession and an advertisers dream. Television allows demonstration; it is in good reach and has proven impact upon consumers. Amazon should introduce advertisements on TV that would induce viral marketing. Honda's 'The Cog' advertisement made viral marketing headlines when the advertisement was downloaded all over the world from internet sources. When the advertisement was first shown, it generated so much interest; viral marketing began for the Honda Accord from word-of-mouth to word-of-mouse. As shown here, products and services that are not sold online do obtained a market share through online methods as well as its traditional advertising methods.
Another marketing communications tool, satellite and cable TV are a great way to reach audiences. According to the book, 'International Marketing', “Star TV, a new pan-Asian satellite television network, has a potential audience of 2.7 billion people living in 38 countries from Egypt through India to Japan, and from Russia to Indonesia.” [Cateora P., Graham J. (2008)] Amazon could advertise in TV stations such as these to widen their audience and consumer horizon. Amazon could advertise during prime time programs such as 'How I Met Your Mother' with advertisements promoting DVD purchase of the popular series while offering recommendations of other series of the same genre.
Direct mail is also an effective way to reach greater volumes of audiences in most parts of the world such as countries in Southeast Asia. In Japan, companies such as Nestle' Japan promote their Buitoni fresh-chilled pasta using a 12-page colour direct mail booklet which included Japanese-style versions of Italian favourites. [Cateora P., Graham J. (2008)]
Street-level posters, billboards, and interior posters could also generate interests outside of the online community. As noted earlier, even Cisco Systems revert to traditional forms of marketing communication. One example of misixng the best of both worlds is Dell. Being an online retailer, Dell also promotes their products through magazines and television.
“Dell Computer is one of the largest ad spenders in tech trade magazines and runs a $150-million-plus branding campaign almost entirely on TV. Dell hopes to conduct 50 percent of all transactions online and contends that it can't generate that kind of volume with Web advertising.” [Kotler, P. Armstrong, G. & Cunningham, P. (2001).]
The reach is the key – it has to be done in moderate frequency to avoid annoying overplay that is why overkill of adverts online are often surpassed by the user/consumer. Featuring creative ads on other media would keep consumers intrigued and entertained while still being informative. It is the reach of these Medias that online tools cannot compare to. While being global and used widely, the Internet advertising campaigns do not always reach the right targeted audience. While the marketing communications strategy might take on a budget of millions, Amazon would gain a competitive advantage that not many organizations could achieve. Reaching out and expanding to the millions of consumers around the world would boost sales for Amazon.
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