This  will  help  you  define  your  market  niche.  What  will  you offer that is distinctly different (better, less expensive, faster, higher quality, etc.) from  your  competitors?  Why  should  anyone  buy  from  you?  What  market  share can you seek?

2.   Know your niche

What  type  of  individuals  and/or  businesses  do you  plan to serve?  Start  by  answering  in  general  terms  (professionals,  service  companies, manufacturing,  retail,  etc.),  then  try  to  be  very  specific.  Spell  out  demographics first—age, sex, income, etc. Then you can move on to psychographics, or lifestyle considerations. When you clearly define the population you hope to sell to, you’ll have  a  better  view  of  what  products  and  services  they  require.  Where  do  they spend  their  free  time?  What  activities  are  they  involved  in?  How  do  they  spend their disposable income?

3.   Create your pitch

Define what “your product/service attributes” mean so that your  product  or  service  comes  alive  for  your  prospective  clients.    Make  it  so important that they will no longer want to live or work without it.  Appeal to their individual needs.

4.   Price for profits.

The goal of your business is to make a profit. Many start-up businesses  fail  to  make  a  profit  as  early  as  projected  because  they  didn’t  price properly.  Know  what  your  competition  charges,  and  determine  if  you  should  be less  than,  equal  to  or  higher  priced.  Be  sure  for  product  pricing  that  you  have covered your materials, labor and overhead costs. Service, like consulting, can be difficult to pinpoint. Some services will fall into an  hourly rate structure; others are better-suited to a service fee. Pricing decisions will have to take into account what your market will bear.

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Definition of a Marketing Strategy

An  effective  marketing  strategy  integrates  the  activities  involved  in  marketing,  sales, advertising,  public  relations,  and  networking.  Each  of  these  components  of  your  overall marketing strategy serves a unique purpose, offers specific benefits, and complements every other  component.  All  components  must  work  together  to  enhance  your  company  image, reinforce  your  brand  strength,  and  ensure  that  your  company  is  distinct  from  your competitors.

The  traditional  (offline)  and  new  media  (online)  components  of  your  marketing  strategy should  all  fit  together.  These  components  include  promotion  of  your  range  of  services  and products,  determination  of  your  prices  or  rate  structure,  creation  of  advertising  and  public relations plans, promotional campaigns, and multi-media endeavors. It is important to think through your strategy and gather information about your market and your competition before you  set  your  price  structure  or  book  ad  space.  Trial-and-error  marketing  plans  are  too expensive.

Goals of Your Marketing Strategy

What  do  you  hope  to  accomplish  through  your  marketing  strategy?  Market  research, advertising campaigns, sales incentives, public relations efforts, and networking plans should all  move  your  business  in  the  direction  of  achieving  your  marketing  goals.  The  best marketing plans are results-oriented; they define specific, realistic, measurable goals within time  parameters.  All  sales,  advertising,  and  public  relations  efforts  are  designed  to  work together to achieve these goals.

Goals  of  your  marketing  strategy,  for  example,  could  include  creating  a  strong  brand, building  a  strong  customer  base,  and  increasing  product/service  sales.  Each  goal  should  be explained  in  terms  of  what  it  means  to  your  company?  To  illustrate,  let’s  examine  three examples of goals:

• Create a strong brand.. What is the current level of brand awareness for your company/product/service? Are you starting from scratch or building on a familiar name? What are the characteristics of this brand that you want to reinforce in the minds of consumers? What level of brand awareness do you hope to achieve?
• Build  a  strong  customer  base. Who  are  your  best  customers?  What customers  are  most  likely  to  spend  money,  and  return?  What  is  the  profile (demographics,  psychographics)  of your  ideal  customer?  How  can you  reach  this market,    online    and    offline?    What    particular    characteristics    of    your company/product/service are most likely to inspire loyalty in your ideal customers?
• Increase product/service sales. How can you predict the future demand for your product/service? What new level of sales growth can your business handle? What quantities of your product can you produce/distribute? What level of service can you support through existing or additional staff?

Basic Marketing Questions

Five  fundamental  questions  should  be  answered  in  order  to  identify  your  marketing  goals: Who, what, where, when, and how? Specifically:

• Who are your customers? Who are your competitors?
• What  are  you  selling?  What  quantities  of  your  products  will  you  sell  and  at what price?
• Where is your target market located? Where can you reach your target market?
• When are your customers most likely to buy? When are your busy seasons?
• How will you reach your customers (stores, offices, web site, catalogs)?

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EPS plays an important role in e-commerce because it closes the e-commerce loop. In developing countries, the underdeveloped electronic payments system is a serious  impediment  to  the  growth  of  e-commerce.  In  these  countries,  entrepreneurs are not able to accept credit card payments over the Internet due to legal and business concerns. The primary issue is transaction security.

The absence or inadequacy of legal infrastructures governing the operation of e-payments is also a concern. Hence, banks with e-banking operations employ service agreements between themselves and their clients.

The relatively undeveloped credit card industry in many developing countries is also a barrier to e-commerce. Only a small segment of the population can buy goods and services over the Internet due to the small credit card market base. There is also the problem of the requirement of “explicit consent” (i.e., a signature) by a card owner before a transaction is considered valid-a requirement that does not exist in the U.S. and in other developed countries.

What is the confidence level of consumers in the use of an EPS?

Many developing countries are still cash-based economies. Cash is the preferred mode of payment not only on account of security but also because of anonymity, which is useful for tax evasion purposes or keeping secret what one’s money is being spent on. For other countries, security concerns have a lot to do with a lack of a legal framework for adjudicating fraud and the uncertainty of the legal limit on the liability associated with a lost or stolen credit card.

In sum, among the relevant issues that need to be resolved with respect to EPS are: consumer protection from fraud through efficiency in record-keeping; transaction privacy and safety, competitive payment  services to ensure equal access to all consumers,  and  the  right  to  choice  of  institutions  and  payment  methods.  Legal frameworks in developing countries should also begin to recognize electronic transactions and payment schemes.

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• What are the components of a typical successful e-commerce transaction loop?
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To manage the chain of networks linking customers, workers, suppliers, distributors, and even competitors, an integrated or extended supply chain management solution is needed. Supply chain management (SCM) is defined as the supervision of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer. It involves the coordination and integration of these flows both within and among companies. The goal of any effective supply chain management system is timely provision of goods or services to the next link in the chain (and ultimately, the reduction of inventory within each link)

There are three main flows in SCM, namely:

• The product flow, which includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs;
• The information flow, which involves the transmission of orders and the update of the status of delivery;
• The finances flow, which consists of credit terms, payment schedules, and consignment and title ownership arrangements.

Some SCM applications are based on open data models that support the sharing of data both inside and outside the enterprise, called the extended enterprise, and includes key suppliers, manufacturers, and end customers of a specific company. Shared data resides in diverse database systems, or data warehouses, at several different sites and companies. Sharing this data “upstream” (with a company’s suppliers) and “downstream” (with a company’s clients) allows SCM applications to improve the time-to-market of products and reduce costs. It also allows all parties in the supply chain to better manage current resources and plan for future needs.

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It enables start-up and small- and medium-sized enterprises to reach the global market.

However, this does not discount the point that without a good e-business strategy, ecommerce may in some cases discriminate against SMEs because it reveals proprietary pricing information. A sound e-business plan does not totally disregard old economy values. The dot-com bust is proof of this.

E-commerce makes “mass customization” possible.

E-commerce applications in this area include easy-to-use ordering systems that allow customers to choose and order products according to their personal and unique specifications. For instance, a car manufacturing company with an e-commerce strategy allowing for online orders can have new cars built within a few days (instead of the several weeks it currently takes to build a new vehicle) based on customer’s specifications. This can work more effectively if a company’s manufacturing process is advanced and integrated into the ordering system.

E-commerce allows “network production.”

This refers to the parceling out of the production process to contractors who are geographically dispersed but who are connected to each other via computer networks. The benefits of network production include: reduction in costs, more strategic target marketing, and the facilitation of selling add-on products, services, and new systems when they are needed. With network production, a company can assign tasks within its non-core competencies to factories all over the world that specialize in such tasks (e.g., the assembly of specific components).

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• How is the Internet relevant to e-commerce?
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• C2B – Consumer to Business – Type of ECommerce
• B2E – Business to Employee – Type of ECommerce
• B2C – Business to Consumer – Type of ECommerce

Before the Internet was utilized for commercial purposes, companies used private networks-such as the EDI or Electronic Data Interchange-to transact business with each other. That was the early form of e-commerce. However, installing and maintaining private networks was very expensive. With the Internet, e-commerce spread rapidly because of the lower costs involved and because the Internet is based on open standards.

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Related Posts :

• What is an electronic payment system? Why is it important?
• How does e-commerce link customers, workers, suppliers, distributors and competitors?
• What are the advantages of e-commerce for businesses?
• What forces are fueling e-commerce?
• What Products Can’t You Sell Online?
• C2C – Consumer to Consumer – Type of ECommerce
• C2B – Consumer to Business – Type of ECommerce
• B2E – Business to Employee – Type of ECommerce
• B2C – Business to Consumer – Type of ECommerce
• B2B – Business to Business – Type of ECommerce

The Seller should have the following components:

• A corporate Web site with e-commerce capabilities (e.g., a secure transaction server);
• A corporate intranet so that orders are processed in an efficient manner;
• IT-literate employees to manage the information flows and maintain the e-commerce system.

Transaction partners include:

• Banking institutions that offer transaction clearing services (e.g., processing credit card payments and electronic fund transfers);
• National and international freight companies to enable the movement of physical  goods  within,  around  and  out  of  the  country.  For  business-to-consumer transactions, the system must offer a means for cost-efficient transport of small packages (such that purchasing books over the Internet, for example, is not prohibitively more expensive than buying from a local store);
• Authentication authority that serves as a trusted third party to ensure the integrity and security of transactions.

Consumers (in a business-to-consumer transaction) who:

• Form a critical mass of the population with access to the Internet and disposable income enabling widespread use of credit cards;
• Possess a mindset for purchasing goods over the Internet rather than by physically inspecting items.

Firms/Businesses (in  a  business-to-business  transaction)  that  together  form  a critical mass of  companies (especially within supply chains) with Internet access and the capability to place and take orders over the Internet.

Government, to establish:

• A legal framework governing e-commerce transactions (including electronic documents, signatures, and the like);
• Legal institutions that would enforce the legal framework (i.e., laws and regulations) and protect consumers and businesses from fraud, among others.

And finally, the Internet, the successful use of which depends on the following:

• A robust and reliable Internet infrastructure;
• A pricing structure that doesn’t penalize consumers for spending time on and buying goods over the Internet (e.g., a flat monthly charge for both ISP access and local phone calls).

For e-commerce to grow, the above requisites and factors have to be in place. The least developed factor is an impediment to the increased uptake of e-commerce as a whole. For instance, a country with an excellent Internet infrastructure will not have high e-commerce figures if banks do not offer support and fulfillment services to e-commerce transactions. In countries that have significant e-commerce figures, a positive feedback loop reinforces each of these factors.

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Economic forces

One of the most evident benefits of e-commerce is economic efficiency resulting from the reduction in communications costs, low-cost technological infrastructure, speedier and more economic electronic transactions with suppliers, lower global information sharing and advertising costs, and cheaper customer service alternatives.

Economic integration is either external or internal. External integration refers to the electronic networking of corporations, suppliers, customers/clients, and independent contractors into one community communicating in a virtual environment (with the Internet as medium). Internal integration, on the other hand, is the networking of the various departments within a corporation, and of business operations and processes. This allows critical business information to be stored in a digital form that can be retrieved instantly and transmitted electronically. Internal integration is best exemplified by corporate intranets. Among the companies with efficient corporate intranets are Procter and Gamble, IBM, Nestle and Intel.

Market forces

Corporations are encouraged to use e-commerce in marketing and promotion to capture international markets, both big and small. The Internet is likewise  used  as  a  medium  for  enhanced  customer  service  and  support.  It  is  a  lot easier for companies to provide their target consumers with more detailed product and service information using the Internet.

Technology forces

The development of ICT is a key factor in the growth of e-commerce. For instance, technological advances in digitizing content, compression and the promotion of open systems technology have paved the way for the convergence of communication services into one single platform. This in turn has made communication more efficient, faster, easier, and more economical as the need to set up separate networks for telephone services, television broadcast, cable television, and Internet access is eliminated. From the standpoint of firms/businesses and consumers, having only one information provider means lower communications costs.

Moreover, the principle of universal access can be made more achievable with convergence. At present the high costs of installing landlines in sparsely populated rural areas is a disincentive to telecommunications companies to install telephones in these areas. Installing landlines in rural areas can become more attractive to the private sector if revenues from these landlines are not limited to local and long distance telephone charges, but also include cable TV and Internet charges. This development will ensure affordable access to information even by those in rural areas and will spare the government the trouble and cost of installing expensive landlines.

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• How is the Internet relevant to e-commerce?
• What are the components of a typical successful e-commerce transaction loop?
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1. Trying to sell the wrong product online.

Not all products will sell successfully on the Internet. Inexpensive products that require a shipping charge are typically not worth selling, particularly if they can be easily purchased in most local stores. Other products, such as specialized high-end clothing, may be more difficult to sell because people prefer to try them on. Research how other e-commerce sites have fared with similar products and what tactics that have used to entice shoppers into ordering online. For more information, see What Products Can’t You Sell Online?

2. Lack of marketing.

Just because you have a product and a Web site does not necessarily mean anyone will find it. You need to market your site both online and off. Focus on your company’s competitive advantage, and do your best to convince the customer that you are offering a great deal.

3. A poorly designed Web site.

In their haste to get online quickly and start selling, too many e-commerce novices do not display their wares well. Many would-be Web designers crowd their sites with too much information or cram too many items on a single page. A professional-looking site that features a dozen items with clear photos and descriptions is more effective than one that includes 50 sales items all bunched together. Also, be wary of too much color, Flash animation, or graphics that can slow downloads.

4. Falling behind the times.

If you do not keep your site current, you will lose out to competitors that do. Stay on top of the industry and post new items often. If customers visit your site over the course of several weeks or months and nothing has changed, they may assume the site is no longer maintained, and they may look elsewhere. A successful e-commerce site is one that stays current and appears vibrant.

5. Poor checkout procedures.

Once your customers decide what they want to purchase, it should be easy to go to the shopping cart and pay without having to answer questions or jump hurdles. Make completing the transaction as easy and painless as possible.

6. Not testing your site.

All the links on your site, including product descriptions, photos, the shopping cart, feedback, and others, should be routinely tested to make sure they work.

7. A hard-to-find or nonexistent privacy policy.

Although most people will not actually read your privacy policy, some shoppers will want to know what you will do with the information you collect.

8. Poor order fulfillment.

Word travels fast on the Internet, and just one or two unhappy customers can do irreparable damage to your reputation. Before you launch your site, make sure you are prepared to fill the orders your customers place, and do your best to deliver your product in a timely fashion.

9. Straying from your objective.

If your goal is to have an online children’s furniture business, do it; don’t start selling patio furniture or antiques. Too many e-commerce sites lose their primary focus and start spreading themselves too thin. Stick with your area of expertise.

10. Poor customer service.

Perhaps this is the most significant area of all. Web consumers today are very conscious of customer service, and they are apt to go elsewhere if they feel you are not providing them with the level of service they deserve. If you heed only one thing from this list, make it this one. Provide excellent customer service and your satisfied customers will spread the word.

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Random Posts

Your common sense can tell you a lot about which items people won’t buy from an online store. This includes things that customers want to hold, smell, taste, or simply see before they buy. Is that mattress as comfortable as it looks? Does that perfume have just the right aroma? Which shade of lipstick is most attractive? Unless people already know the scent or the color, they’re unlikely to try it over the Net.

Of course, there are exceptions to every rule. You probably won’t buy a tailored suit online, but you might purchase a pair of jeans or a wool sweater. And there are always people who will take their chances and buy something online because they’re just too busy or don’t care enough to go shopping. Before you spend thousands of dollars to put your store online, however, ask yourself if you can just publish your catalog online or use your Web site as a promotional or customer service resource. That may better serve your business needs.

You also want to avoid items that are illegal to sell over the Web. These include obvious things such as illegal drugs and explosives that are forbidden almost everywhere. Other items are more complicated, however. Some states allow you to sell alcoholic beverages over the Web, while in other states doing so is a felony. (SendWine.com is trying to get around this issue by partnering with local liquor stores, the way FTD works in the flower business.) The laws on gun and ammunition sales also vary from state to state, in addition to a variety of federal rules on these items. A few states also prohibit the sale of certain animals and food products — California, for example, strictly limits produce imports due to concerns over agricultural pests.

If you think that your online store may cover questionable legal territory, talk to an attorney — there’s no point taking a chance on fines or even jail time if you break the law.

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• How is the Internet relevant to e-commerce?
• What are the components of a typical successful e-commerce transaction loop?
• C2C – Consumer to Consumer – Type of ECommerce
• C2B – Consumer to Business – Type of ECommerce
• B2E – Business to Employee – Type of ECommerce
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