Write short notes on the following concepts ? a) Problems of E-marketing b) Marketing Myopia c) Ethics in Advertising d) Cost-based pricing methods

Some Problems of E-marketing are as follows:a.Authenticity: the authenticity of the product maybe questionable, as the real product is not available at the time of its purchase. The product may not turn out as expected by the customers. However, sites like Jabong.com or Myntra.com , keeping this point in view are offering its customers the option to return the product if they are dissatisfied with it after a trial. This has increased the goodwill and popularity of such sites.b.Internet marketing scams : Fake schemes like ‘get-rich-quick’ or ‘win cash prize’ on the internet, often lure the users to payout huge sums of money to such frauds and not gettomg anything in return. It has given rise to a lot of scams and fraudulent activities detrimental to the users.c.Security issues: Consumers maybe hesitant to disclose their personal information on the internet as they may feel the invasion of their privacy.

Marketing Myopia is a term used in marketing as well as the title of an important marketing paper written by Theodore Levitt. This paper was first published in in the Harvard Business Review, a journal of which he was an editor.

Ethics in advertising is a set of well defined principles which govern the ways of communication that takes place between the seller and the buyer.

Cost-based pricing A pricing method in which a fixed sum or a percentage of the total cost is added (as income or profit) to the cost of the product to arrive at its selling price.

Problems of e-marketing:

These are five challenges that almost every company involved in e-marketing is facing right now:

§  A bad reputation. A lot of money spent on Internet marketing over the past few years was wasted. Why? One big reason is that the stock market distorted company valuations and rewarded (or at least failed to penalize) profligate attempts to drive traffic or acquire customers — even if only temporarily.

§  Marketing integration. Most major marketing efforts utilize multiple channels, on- and offline. Email, Web advertising, and viral Internet marketing should serve concrete, measurable objectives as part of an integrated campaign.

But coordinating e-marketing with other marketing efforts is an underdeveloped art. Some companies have successfully linked the Net to under-the-cap promotions or to teaser campaigns for new product launches. But all too often the Internet is tacked on at the end of a marketing plan. Determining the strengths (and weaknesses) of the Net relative to other channels is a project we all should be working on.

§  E-CRM. Imagine recognizing the needs of customers as they enter your site. Over time, through implicit and explicit data, you learn about the preferences of each and can serve customers based on their habits, needs, and purchase drivers. You build deep loyalty, and you increase your share of your customers’ wallets.

You’ve probably heard that vision pitched dozens of times. So have your clients. Expectations that the Web will be able to deliver e-CRM are extremely high, but many Web sites are barely usable, let alone optimized for each customer. Successfully managing customer relationships on the Web is harder than many have made it out to be. The industry has a lot of work to do to meet its promises.

§  Privacy. Things have quieted down somewhat since DoubleClick backed away from its plans to merge its online data with offline Abacus data. But the industry’s privacy issues have not been sufficiently resolved.

Most consumers don’t completely trust Web companies and shy away from offering information about themselves. Companies that collect data responsibly are exposed to misguided regulation that spammers and scammers invite. Sound policy, adopted industrywide, is imperative.

§  Traditional advertising dollars. The discrepancy between the amount of time people spend online and the amount top advertisers spend there is enormous,  the top six advertisers spend less than one percent of their advertising dollars on the Web. With dot-com ad spending in decline, attracting traditional advertisers (mainly by addressing the four issues above) is the key to the industry’s growth.

 

Marketing myopia we argue that many companies incorrectly take a shortsighted approach to marketing, viewing it as merely a tool for selling products. Instead, that companies should look at marketing from the consumer's point of view. For example, a company that sells hiking boots should not define its marketing in terms of sales of hiking boots, but market itself as a company concerned with outdoor exploration and adventure.

The fundamental concept to take away from marketing myopia is that a business will survive and perform better if it focuses on satisfying customer needs rather than selling specific products. Thus, this is as much about strategic planning as it is about marketing.

Every industry once upon a time was once considered a 'growth industry.' For instance, the buggy whip industry - an example torn directly from Levitt's article - once was thriving with many buggy whip manufacturers and purveyors of buggy whips for horse-drawn carriages. But then Henry Ford came along and the buggy whip industry went into decline and eventually became extinct.

Buggy whip companies did not go out of business because of the advent of cars, according to the concept of marketing myopia. Rather, they went out of business because they were too focused on seeing themselves as buggy whip companies selling buggy whips. If they instead envisioned themselves as being in the transportation business, they might have been able to transition to products and services related to the emerging auto industry or other sectors of the transportation industry.

 

Ethics in advertising:

Ethics means a set of moral principles which govern a person’s behavior or how the activity is conducted. And advertising means a mode of communication between a seller and a buyer.

Thus ethics in advertising means a set of well defined principles which govern the ways of communication taking place between the seller and the buyer. Ethics is the most important feature of the advertising industry. Though there are many benefits of advertising but then there are some points which don’t match the ethical norms of advertising.

An ethical ad is the one which doesn’t lie, doesn’t make fake or false claims and is in the limit of decency.

Cost Based Pricing:

A pricing method in which a fixed sum or a percentage of the total cost is added (as income or profit) to the cost of the product to arrive at its selling price.

  Cost based pricing is the easiest way to calculate what a product should be priced at. This appears in two forms: full cost pricing and direct-cost pricing. Full cost pricing takes into consideration both variable, fixed costs and a % markup. Direct-cost pricing is variable costs plus a % markup.

  Cost-plus pricing is a pricing method used by companies to maximize their profits. The firms accomplish their objective of profit maximization by increasing their production until marginal revenue equals marginal cost, and then charging a price which is determined by the demand curve.

 

  Cost-plus pricing is used primarily because it is easy to calculate and requires little information.

Marketing on the Internet on websites texts and images, support any that you can not see or feel the goods are real, and therefore it is difficult to identify some of the characteristics of products such as quality, texture and other physical properties. Also recognized the problems is delivery time, where you can not be the product you purchased immediately receive but you must wait a period of time to receive. As well as shipping costs, as it usually you have to pay shipping costs of the product to you, and this could raise the total cost of the product you have purchased. Also there is the issue of product you purchased if it does not suits you returned, and this is one of the biggest problems facing the shopping method online, because you have to if you want to bring the goods to the seller, first return the product packages and then re-shipped to the seller, and wait for the product is up to the seller and address your application before you can get a replacement for your merchandise or compensated. In addition, most of us know of security concerns associated with this type of shopping, if the site is not secure or that scam site, you simply have made yourself vulnerable to theft. As well as the reference should be made for reasons of privacy, if not shopping site has a strict privacy policy, it is difficult to know who can access your information, and whether this information is well protected, or they are available to other parties. The terms of sharing information with third parties may cause stolen or at least cause your exposure to spam. One view says that the marketer must deal within the limits of the freedom available in the market and the penal system followed by the supervisory authorities on the market and under this umbrella is not obligatory for companies and managers guessing and worked most of what is in those laws and freedoms available to companies in any case will not work ethical decisions most of what is in those laws.

 

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