Rapid Changes in Marketing
It probably wouldn’t surprise you to know the online world is growing rapidly, digital marketing is very much the way of the present. With 86% of Australians connected to the internet at home, it’s not hard to wonder why it has become a big part of our lives (Australian Bureau of Statistics 2018). Digital marketing is marketing processes that are done digitally. Marketing is a broad term that encompasses almost all business operations from advertising to the selling and buying of products and services (Chaffey & Ellis-Chadwick 2019; Fierro, Arbelaez & Gavilanez, 2019). Let me give you an example; you decide you’d like to purchase a phone so you go online and begin by searching phones into Google. The results are ads from stores close to you and online stores with lots of phones to choose from – so what do you do now? You might go to YouTube for independent reviews of the phones you’re interested in. All these steps are considered digital marketing. How are you reading this page right now? The obvious answer is on the internet, but more specifically you are likely to be viewing this on a desktop, laptop or smartphone (Australian Bureau of Statistics 2018). This again is an example of digital marketing similar to cites like Wikipedia, where your online ‘views’ are exchanged for information (Shultz 2017).
So what are the most common things Australian’s do on the web? 80% of people use the internet for entertainment, social networking and banking, followed by 72% of people purchasing goods or services (Australian Bureau of Statistics 2018). You may be wondering if this means that only 72% of people using the internet are involved in digital marketing. That is definitely not the case, most social media cites are laced with advertising content – it’s hard to escape it!
It may seem that digital marketing is a burden of unavoidable content for the consumers. While it can feel like this sometimes try and imagine not being able to book things online or view/review items, it would make life pretty difficult!
The Evolution of eBay
eBay is currently the leader of online marketplace platforms with a revenue of $2.7 billion dollars in April, May and June of this year (eBay Impact 2018 Progress Update 2018). While eBay is a worldwide known brand – you may have asked yourself where did they come from? When eBay first got launched into the digital world in 1995 it was known as AuctionWeb and had no traffic in the first day (Chaffey & Ellis-Chadwic 2019; eBay 2019). Hard to believe right! In 1997 the name was changed to eBay and 2 decades later with millions of buyers eBay is the leader in online marketplaces (eBay 2019). You’re probably wondering how this business skyrocketed to the top. The key to marketing success is to understand the market and the consumers and tailor the experience towards these groups and individuals (Fierro, Arbelaez & Gavilanez 2019).
In 1999 eBay expanded globally, launching cites in Germany, Australia and the UK (eBay 2019). This helped eBay reach more customers which is a crucial step, as seen in the diagram above, to growing the customer base (Kannan & Li 2017).
Another key step to the development of eBay was the introduction of the ‘Feedback Forum’ in 1997 where members could rate their transaction to build the integrity of the eBay brand (eBay 2019). Trustworthiness is extremely important as eBay was not very well known and the ability for customers to give feedback creates a social influence on other customers to purchase (Fierro, Arbelaez & Gavilanez 2019).
So now eBay has a wide demographic of potential customers, integrity and brand awareness. What’s next? Another key marketing strategy was introducing the ‘buy it now’ option making shopping more interactive and instantly gratifying (eBay 2019). eBay has continuously listened to what the consumers want and followed closely on digital trends in society including the smartphones and tablets.
“In Australia a car part is purchased every 4 seconds on eBay.”(eBay Fast Facts 2019)
The company’s mission is “to be the world’s favourite destination for great value and unique selection” (eBay Impact 2018 Progress Update 2018). Due to their marketing approach it is quite clear why they are the leading marketplace on the web!
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eBay Impact 2018 Progress Update. (2018). [pdf] Available at: https://static.ebayinc.com/assets/Uploads/Documents/eBay-Impact-2018-Progress-Update.pdf [Accessed 13 Aug. 2019].
eBay. (2019). Our History. [online] Available at: https://www.ebayinc.com/company/our-history/ [Accessed 14 Aug. 2019].
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Shultz, C. (2017). Marketing: The Next 40000 Years. Journal of Macromarketing, [online] 37(3), pp.328-330. Available at: https://journals-sagepub-com.ezproxy.canberra.edu.au/doi/full/10.1177/0276146717712360 [Accessed 11 Aug. 2019].
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