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Analysis Of Viral Marketing Campaign For Ebay Marketing Essay


The reason behind this task is to examine Internet and digital marketing which is playing a significant role in the world's current economic climate particularly in the way of performing business.

Firstly in this task some of critical indicators of Internet and Digital marketing have been discusses and then to get further knowledge the ebay case has been incorporated with its introduction, history, quest, goals, strategies and tips on Viral marketing has been given with target of generating new people to the web site and converting them to members. After having detailed examination Viral Marketing video tutorial has been allocated for the company on social mass media network "Youtube".

The research finally suggests that Digital market or e-market can be an important international firm systems where customers and sellers exchange information each other about products offered and price.

1: Release of Internet and Digital Marketing:

Internet and Digital market today is playing a significant role in the world's overall economy particularly in the way of executing business. Both digital and traditional markets have a simple function of assisting the customer and seller conducting transaction through the exchange of products, information and payment. Moreover, the use of internet in business is forecasted may reform the communication available on the market and business lead to the perfect market, which includes many sellers, purchasers and substitutable goods and services as well as symmetric information.

For years, digital market has brought up many issues, for illustration whether digital market increases the degree of competition in the market or whether digital market influences the price. Janssen and Moraga (2000, p. 2) dispute that the internet will certainly reduce the search cost for consumer and increase competition among vendors that will lead to raised level of welfare and cheap of item. Another researcher, Bakos (1998, p. 42) also claims that it is clearer that internet-based marketplaces will support better financial efficiency and maintain economic growth.

The digital market could also change the way of the business enterprise implementing the marketing strategy and controlling its relationship with costumers. Melody and Zahedi (2005, p. 222) declare that the internet can be utilized as an alternative medium by business to perform product branding and perform transaction and maintain the partnership with public. This may bring positive effects on less expensive of communication and purchase, improved upon communication with customers and distributors in the terms of quickness and quality, as well as broader market range (Song & Zahedi, 2005, p. 222).

1. 1 Key Success Factors in the web and Digital Market:

Digital market or e-market is an international organization systems where clients and retailers exchange information the other person about products offered and price (Bakos, 1991, p. 296). Varadarajan and Yadav (2002, p. 297), then, expanded the electric market explanation as networked information systems allow buyers and retailers to switch information, trade, and execute other activities related to the purchase made. The purpose of digital market is to entice many suppliers and customers, which then become the member of that software industry (Ferreira & Ferreira, 2004, p. 254).

The role of internet in trading and commercial activities has become dominant as time passes. Figure 1 below shows the way the percentage of internet users on earth had been increased in 1995-2000 (Chaffey 2002). The interactive between potential buyers and retailers has been transformed from physical to online form. Time and ranges are no more being the barriers or road blocks for customers and sellers to make a deal through the internet. It generates a borderless world that change just how of business today.

Many companies can achieve their finest performance by using it or internet in their operations. Matching to Turban et al (2008), Boeing, for occasion, can effectively develop their plane aircraft using its 3800 immediate suppliers. In preserving the relationship with its suppliers, Boeing develop ten multimedia rooms for the use of collaboration teams (Turban et al. 2008).

There are several reasons that may cause the failure companies that participate in the digital market. First, companies may not aware of the price framework in the digital market. Second, the high cost of customer romance management reduces significantly the income of companies. Third, companies neglect to ensure the clients of the security and level of privacy of customer data, so that customers are unwilling to conduct trades in the digital market.

2: Advantages of eBay:

Ebay is the first sort of company of its kind who was proven in 1995 from Mr. Pierre Omidyar, which possessed the capacity of a kind to trade online and properly. EBay started out as a "dog or cat project" and finally mastered in electronic digital trading. After exponential development in a nutshell period, it was a subject of time prior to the competition elevated. "The valuation increased from $ 700, 000, 000 basic open public investment to 24 billion U. S. dollars through " eBay used its first mover good thing about a retreat to get into this growing market, but competition has occurred wit the firms of the same dynamics and center i. e. Craigslist. org, Amazon. com and other public sale sites like ubid. com. Additionally, all online retail businesses be competitive indirectly too.

The online auction market, has became one of a kind operating. Any consumer of Ebay who have a Direct Debit facility with him/her, which is a symbol that permits any person to join up and start selling or buying. It is pointed out that eBay seller meets many e-commerce of functions, such as choosing a suitable product, creating an auction site, setting an initial price something with a graphic, communication with bidders, repayments to accept and comply. That one correspondence describes the procedure to make use of Ebay principles of e-commerce marketing to learn.

Ebay is original in the internet trading system a huge selection of million registered users in 2008 (eBay 2008). EBay has attracted an incredible number of unique visitors before year, they can be practically despite having Amazon. com is one of the good one.

2. 1 Objective eBay

EBay defined their goal to be the main one of a kind in the new world of business, created when you are trustworthy. At this time EBay has three important business at the existing moment.

1. The eBay Industry. The sole reason for eBay business to mention world class online software industry to make eBay's SEC records from few progress known reasons for these cases that eBay attempts to manage functions, protection, convenience and reliability

2. The PayPal (about 25% of net income in 2007). The target is to "create the new international standard for online obligations. The company was bought in 2003.

3. Skype Internet telephony (about 5% of net income in 2007)

The EBay in 2005 experienced downfall of the valuation of the company too much, but more recently it has started out the service for MySpace users.

Advertising and other net gain symbolizes only 4% of total net gain during 2007-2008.

2. 2 eBay Targets and Strategy

The overall targets eBay is the gross volume and net income from eBay Current market increase. More detailed objectives are defined in order to achieve these goals, with strategies that focus on:

1. Procurement - increasing the number of new registered users on the eBay Market place.

2. Activation - boost the number of customers or sellers on the eBay Marketplace, and new users that productive bidders.

3. Activity - increase volume and transactions value by productive customer on eBay Industry performed. EBay has over a hundred million productive users by the end of 2009. A dynamic user is defined as anybody who bought regular bid on or in last 12 month period item listen closely from person.

EBay market growth is also influenced by this is of methods to performance in these areas to improve.

1: First, category expansion was achieved by increasing the number and size of the categories on the market, for example: Antiques, Art, Catalogs and Business & Industrial.

2: Second, forms for interaction. The original auction format listings, but now is the refinement of the "Buy-It-Now" fixed price format to add. Another format is the "Dutch Auction" format, in which a owner can sell multiple equivalent items to the highest bidders. eBay Stores retailers develop a wider selection of products together to allow their products to set up a far more traditional retail platforms. EBay say they continue to create new opportunities to investigate such acquisition in 2004 of mobile. de in Germany and Marktplaats. nl in holland, as well as our investment in Craigslist, the US-based labeled advertisement format. Another acquisition, Hire. com, which runs online property and apartment local rental category. In 2007, eBay acquired StubHub is an online ticket market and romantic relationship Shopping. com ownership.

3: Finally, the market expansion achieved through the delivery of specific sites localized for different physical areas as follows: You can view there continues to be potential for increased localization, for example in parts of Scandinavia, Eastern European countries and Asia.

2. 3 eBay e-Marketing Proposition

The eBay allows their sellers to list items at public sale or fixed-price basis provides buyers the opportunity to bid for and purchase items. By the end of 2007 over 532, 000 online storefronts created by users in locations surrounding the world.

Especially for repeated merchants software tools are given. Today, more than sixty percent of the entries were facilitated by software, the worthiness of automation rather than regular trading.

For eBay the most significant risk factor is scams. It's been reported that that about 1 in 10, 000 trade in the UK was fraudulence. 0. 0001% is a tiny percentage, but scaling it to the amount of transactions, it is a noteworthy size.

EBay has developed 'Trust & Safety Program which is particularly important customers as online services, have a tendency to fraud, insurance.

EBay is a listing of key messages to its position defined as follows:







To use to global markets

Chance to improve sales

Effective marketing

The vendor's declaration described slightly in another way in 2007:

Usage of global markets

Cost-effective marketing and distribution

Large copper bottom access

Good success rate

2. 4 The eBay Business Model

When eBay first launched, the site immediately a popular channel for auctioning collectibles, but quickly segued into other markets, like vehicles, business, gadgets and commercial equipment, where average value (ASP) is higher.

EBay current market has pioneer and internationalized designed online auction. A web based marketplace helps easy control for both customers and sellers in making an item on the market at the list within a few minutes of registration. And provide auctions are free, but sellers are charged transfer fees for the right to sell their goods on eBay. You can find two types of deal:

When an item on eBay refundable insertion was recharged predicated on the seller's opening bid on that. Once the public sale is completed, a final value paid. This charge usually which range from 1. 25 percent to 5 percent of the final selling price.

EBay upsells its listing fees increased public sale features, including highlighted or daring listings, featured position, and other ways for retailers the visibility of the items to obtain. Once the auction is completed, the eBay buyer and owner via email. Conclusion of the business deal, the seller and the customer, and eBay gathers its final value fee, regardless of the payment and shipping.

3. Viral marketing

The buzzwords viral marketing and viral advertising make reference to marketing techniques that use existing internet sites raises in brand understanding to create or other marketing targets (such as product sales) through self-care behaviours to attain replicating viral operations, analogous to the get spread around of pathological and computer infections. It can be word-of-mouth delivered or increased by the network ramifications of the web. Viral promotions may take the form of video clips videos, interactive Display video games, advergames; eBooks be aware software, photographs, or even text messages.

The goal of marketers considering creating successful viral marketing programs, individuals with high SOCIAL MEDIA Probable (SNP) and viral communications that appeal to this segment of the population and a higher probability of being considered by another participant creating id.

The term "viral marketing" is also used to make reference to pejoratively stealth marketing the unscrupulous use of astroturfing on-line combined with below market advertising in malls seem spontaneous person to person enthusiasm to generate.

3. 1 Tips about new promotional strategies:

1. Broadcast advertising - TV, radio and the Internet

2. Public Service Advertising - Advertising for Social Causes

3. Super star Advertising

4. Text Advertising

3. 1. 1 Broadcast advertising - Tv set, radio and the Internet

Broadcast advertising is a popular advertising medium that has several branches such as television set, radio or the Internet. Television advertisings have been very popular ever since they were introduced. The expense of television adverts often depends upon the length of time of the advert, time of broadcast (leading time / peak time), and undoubtedly the acceptance of it channel that the advertisement will be shown. The air may have lost its allure because of the new age press, but radio continues to be the choice of any small-scale advertisers. The air jingles advertising the popular media and possessed a major impact on the audience, which is evident in the actual fact that lots of people still bear in mind and enjoy the popular radio jingles.

3. 1. 2 Public Service Advertising - Advertising for Public Causes

Public service advertising is a technique that uses advertising as a powerful medium of communication to contribute socially relevant messaged on important issues and communal welfare triggers such as Supports, energy, political integrity, deforestation, illiteracy, poverty and so on. David Oglivy who's considered one of the pioneers of advertising and marketing concepts to be reported are encouraged to advertise in area used for a cultural cause. Oglivy once said, "Advertising justifies its lifestyle when used in the public interest -. It is too strong a tool to use exclusively for commercial purposes. Today, open public service advertising has more and more used in a non-commercial fashion in various countries surrounding the world for various interpersonal causes to market. Inside the U. S. , radio and television set stations, allocated on the basis of a set amount of open public service ads aired by the route.

3. 1. 3 Celebrity Advertising

Although the public is smarter and smarter and be the present day consumer gets immune system to the exaggerated claims made in a majority of ads, there's a part of advertisers bank on celebrities and their acceptance in the marketing with their products. Using celebrities for advertising includes signing up stars for advertising promotions, such as all forms of advertising in television set advertisements or even printing advertisements.

3. 1. 4 Text Advertising

SMS (Brief Message Service) text messages have taken European countries by storm and broke in the U. S. The addition of a text-back amount is occupied as a www address later yesterday. Used as part of your companies 'how to contact us' these can be very effective. It can be a (rented) keyword over a short-code or your own system on a standard number (like Mojio Messenger) are not. The advantage of SMS text messages is people can react where they are, right now, trapped in traffic, sitting down on the subway. The usage of SMS messages can even be a sensible way to get a viral (word-of-mouth ) campaign to get log off the ground your own database of leads see Viral marketing connections.

4. SWOT Analysis

To better asses eBay Viral marketing recommendation is a SWOT research performed for the parameters that impact them and their position in the web market id.


The eBay brand identification is important because it has a solid brand image. EBay product line is intensive as products offers everything. It attracts different demographic teams and may give multiple revenue streams. The business has an obvious eyesight, "the world's largest online person-to-person trading community ".

EBay has a strong sense of community among internet surfers, and among his own employees. The three most important keys to success is eBay's "community, contemporary society, the city has a solid sense of culture is available as eBay retain people who have the same culture of the business. They encourage teamwork and expects his employees to open up, honest and value among their employees always welcome to feedbacks, appreciate others feedback and available to their viewpoints change their professional management team referred to the culture of eBay as "open" and "low risk", which prompted visitors to different views to acknowledge. eBay is not just restricted to retailing or buying goods, on eBay people can communicate with similar interests, chat, talk about information through boards, bulletin planks and email services in place by company. The "Feedback Discussion board" has a self-regulatory device honest behaviour to encourage and develop a durable sense of community for eBay. Their business model needs little overhead.


One of eBay's weaknesses described in the challenge is the limited control over the fraudulence and problems that may arise because of this of daily ventures on eBay. It is extremely hard every single item sold through eBay and thought it had not been easy to find out whether certain products are counterfeit check. False issues, false sales, and taken products through the eBay site can really weaken the company's status, trust and credibility.

One another weakness of eBay is their technical problems and service disruptions. Even with increased shelling out for technology, eBay still regular system outages and technical issues experienced. This Internet volume damage under eBay's reputation, brand, output and reliability. And their business model is easily replicable and can lead to strong competition


The growth of the internet and international market access is an enormous chance for eBay. They can try to develop their international demographic, widening its market to countries overseas, especially those whose economies are speedily growing. Another section of chance for eBay is in their member sales department. EBay's gains are produced by receiving a share of the sale price of products, which gives an opportunity to produce more earnings through the sale of higher priced products. To do this, the company could offer an incentive that will attract eBay users to list expensive goods. Currently, eBay charges a $0. 25 cost for listing products. eBay can offer free product listing for goods over a specific amount, only collecting the ratio sale rate. This free product listing incentive may help get users to list more and perhaps expensive goods.

eBay should take good thing about the increase of internet utilization by widening its marketplace throughout the world. There are still opportunities in current markets potential consumers which have not found out the benefits of online auctions. Acquisition of other online public sale sites is another opportunity open to the eBay depending upon their strong budget.


eBay must constantly monitor its external environment to safeguard themselves from competition such as Amazon. com and Yahoo. com. The success of eBay over time could appeal to others to enter the online trading market. Amazon offers many of the same services that eBay offers that allow people to acquire an array of goods from one site. Amazon can offer similar products to eBay, also at low prices

It is known that eBay's strategy of providing a safe trading put on the internet, the eBay community has flourished, by not only providing an efficient medium for folks to buy or sell items immediately from or even to a large person in people, from the forum where purchasers and vendors, develop reputations and perhaps, it can transform people's lives.

After research it has been pointed out that the electric market is a fresh form of marketplace, which use the internet as its communication infrastructure. Internet is argued to be the communication infrastructure due to the fact it creates new marketplace architecture.

It is figured overall, suppliers and potential buyers should use internet as an instrument to make purchase because internet will support to lessen searching charges for consumers and advertising charges for suppliers. Companies favor to improve their customer marriage management because they would like to create customers devotion and increase companies' success. Furthermore, ethical concern, such as security, trust, and privacy can impact consumer to be unwilling to make ventures in the digital market.

The potential impact of the electric market to specific customers is not significant because the price in the electronic digital market is improbable to decline and it is difficult to build rely upon customer perception. In contrast, the electronic digital market provides benefits to organizations because it supports companies to increase their income and maintain marriage with their customers. The digital market also makes market more competitive because of the heterogeneous of customers and the decrease of searching costs. The growth of the electronic market affects the federal government to enact rules related to it, since the electronic market segments bring more dangers than in the physical market.

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