Download The Researches on Online Marketing in Private Enterprise

The Researches on Online Marketing in Private Enterprise
QI Qingzhu1, 2, LIU Yiping3
1. School of Business, Tianjin Polytechnic University, Tianjin, P.R.China, 300160
2. Zhejiang Rongsheng Holding Group CO., Ltd, Zhejiang, P.R.China, 311247
3. School of Business, Tianjin Polytechnic University, Tianjin, P.R.China, 300160
[email protected]
Abstract: In the times of cyber economy, On-line Marketing has become an important part of the
modern business. Development of network technology for private enterprise is an opportunity and a
challenge. It has become common concern for private enterprises that how to carry out online marketing
to enhance the competitive advantage. This paper uses SWOT analysis to analyze the situation of private
enterprises and put forward some suggestions.
Keywords: Private enterprise, On-line marketing, SWOT analysis, Strategies
1 Introduction
21st century is the era of cyber economy, on-line marketing is an essential tool and has become an
inevitable trend of marketing. If private enterprises want to survive and develop in the fierce
competition, they do not just rely on traditional marketing methods. Network marketing weakens the
disadvantage of firm size and creates favorable conditions and competitive advantages.
Internet marketing makes use of the website, e-mail, searching engines to sell products online. The value
of network marketing, the first is to make the value exchange from producer to consumer easier, better
and more efficient. It is unique to use network tools and techniques for specific online market. These
characteristics determine the network marketing will be the most basic form of modern marketing.
2 SWOT Analysis of Network Marketing in Private Enterprise
2.1 Strengths
Private enterprises are quick-witted, flexible on operation, high efficient on innovation and easy to adapt
to markets. It can change the decision at any time based on market and transmit the information quickly
through the Internet to customers. Private enterprises can follow the “demand diversity” trend. It is good
for finding market gap, developing new products, meeting the diversified demands of customers in time.
Relaying on network, provide their unique services for global demands. It can save a lot of costs on
advertising and promotion. Moreover, due to the relatively small size, private enterprises are superior to
big enterprises on the cohesion and attention to customers. Network marketing is more able to further
develop this advantage.
2.2 Weaknesses
(1)The lack of awareness of network marketing
Private enterprises have weak consciousness of competition online and do not ideologically know
network marketing. Under the influence of traditional marketing, quite a number of small and
medium-sized private enterprises focus on the competition in entities market at present, not fully aware
of the necessity and urgency to occupy the virtual market to seize the competitive advantage. . In
addition, there is a high technical threshold, so many enterprises are still on the fence about network
marketing.
(2) Investment ability is not high
Private enterprises are generally smaller, especially China's private enterprises, they are generally small
family-owned processing and manufacturing enterprises, so the financial ability is weak, it is difficult
for them to compete with large enterprises on the investment in network marketing, this led to weak
corporate network infrastructure and under-developed enterprise informatization, this affects the
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development of network marketing.
(3) The lack of network marketing professionals
Human resources remain the most important intangible asset of enterprise. Enterprises need
professionals in all aspects, especially the compound talents with new ideas and new knowledge of
information; they are an important force in implementation of network marketing. However, private
enterprises generally are lack of information professionals, particularly not only understand marketing
but also understand the complexities of Information Technology. Shortage of talents is a major obstacle
for our private enterprises in implementation and application of network marketing.
2.3 Opportunities
(1) Support from government
Confronting with the rapid development of the global network economy, our government has recognized
the importance that use of network technology to follow the trend of world development, enhance the
comprehensive national strength, ensure the importance of sustained economic growth, therefore, the
state supports the development of network economy and put forward proposals to develop e-commerce.
Private enterprises are an important part of China's socialist market economy, its contribution to the
economy is obvious. Government supports them and attaches great importance to the development of
private enterprises in China, has gradually given them "national treatment". This provides a good
opportunity for the further development of private enterprises in China.
(2) The increased internet penetration
With the improving of networking and communications technology, the world entered the Internet age.
The network constructions are changing with each passing day in China, according to CNNIC survey.
First, the rapid growth of Internet users(table 1); Second, the Chinese Internet penetration is increasing.
Year
Number of
Internet
users
Network
coverage
2007.06
162 000 000
Table 1 The Number of Internet Users
2007.12
2008.06
2008.12
210 000 000
253 000 000
298 000 000
2009.07
338 000 000
2009.12
384 000 000
12.3%
16%
25.5%
28.9%
19.1%
22.6%
Resource: The CNNIC report (China Internet Network Information Center)
It can be seen, network penetration in China is flying faster in general, and the use of the network to
carry out business are is increasing.
(3) Trends of consumer's individual demand
Currently, consumers' demands are diverse and personalized, and network marketing makes it possible
for consumers to participate in all aspects of business operation directly and make customizations,
consumers can check online, browse, purchase products. So, network marketing meets the demands and
provides a broad market prospect.
2.4 Threats
(1)The pressure from abroad and big enterprises
With the global economic integration, economic interdependence between countries is deepening,
countries have more freedom to share resources, technology, market and so on. The level of enterprises
informatization in developed countries is higher than that in China. Our private enterprises are less
competitive at this aspect.
(2) Immature network consumption environment
At present, the regional distribution of network shopping and population is uneven, this situation
affected the company's online marketing activities. On the other hand, global network trading security
and network credit problems are still not well solved, these are objective constraints on the development
of network marketing.
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3 Strategies
3.1 Establish a network marketing concept, introduce talents
To conduct online marketing, we must first establish the concept of network marketing, and get aware of
the advantages of network marketing, then truly implement the concept of network marketing from all
leaders to staff; Second, after the concept was set up, the next would be to introduce and develop
complex professionals who are proficiency in both technology and marketing. Because network
marketing is different with other marketing methods, so the general marketing talent is not necessarily
competent.
3.2 Establish a unique site
In the network space, business web site represents the company's own image, the website quality
directly affect the network marketing effect. Private enterprises should increase spending on building
high-quality website so as to carry out network marketing well.
(1) Nominate and register domain name. URL or domain name is the most important of all, it is the
online brand, and has become a resource. A good domain name should be simple, clear and easy to
remember, the meaning of deep and so on.
(2) Web design. Private enterprise should carefully design the layout and content on the home page.
Usually place on the page with the business news, new products introduction or special marks, images,
colors and other creative designs except the home page index to attract customer's attentions.
(3) Website maintenance. Establishing a Web site is a long-term project. A good business website is not
a one-time production, but by changes in business conditions are constantly modified and adjusted.
Therefore, site maintenance is also essential.
3.3 Internet marketing strategy
3.3.1 4Ps mixed marketing strategy
We should pay attention to the innovation of the traditional 4Ps marketing strategy in network
marketing.
(1) Product
First of all, enterprises should shift ideas from the traditional physical products to a combination of
physical products, services products and information products. Private enterprises should pay attention
to services and information products supply, provide consumers with one-to-one customized service. In
Network environment, communication between customers and manufacturers is direct, consumers
choose products through the Internet and make requirements on the functions and services of products.
Private enterprises should improve products and services according to consumers’ choices and provide
consumers with new products and new services to meet individual needs. Of course, private enterprise
should analyze product features, not all products are suitable for network marketing, for example, it is
not appropriate to sell products that the consumers are sensitive to its price, but its price is hard to be cut
down.
(2) Price
Product prices should reflect both the cost and profits, but it shouldn’t be too high against the
psychological ability of consumers. In the network environment, as information and interaction are open
in net, the market is open and transparent, consumers could adequately compare and select prices.
Therefore, private enterprises should make price according to the cost, but the necessary strategy is
needed, as the case may be taken according to individual customer, also according to their development
enterprises could take some reputation and discount pricing, and change price according to season and
situation of supply and demand.
(3) Place
Online marketing is a one-to-one sales channel that is composed of information query, payments and
after-sales service. Internet shortens the distance between businesses and consumers, and weakens the
relationship between brokers and consumers. Therefore, private enterprises should strengthen the
network marketing channel, set up a virtual shop in the company Web site, keep in touch with
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consumers through the Internet and establish long-term relationships to enhance customer loyalty. In
addition, enterprises can also select the network brokers for selling products.
(4) Promotion
Online promotion is comprehensive, mainly contains online products show, Network image and online
advertisements, especially the online advertising. Online advertising needs the target audience's active
connections. In the advertising business plan, enterprises should make full use of the network's
multimedia sound and light features, 3D animation and other features to induce consumers to make
purchasing decisions, and achieve as much as possible the development of potential market targets;
Use web chat function to carry out social activities or on-line promotion activities, this is a way of
consumer sentiment consumption; Combine the network culture and product advertising, with cultural
characteristics of the network to attract consumers, such as: integrate product advertising into the
internet games so that network users will unconsciously accept the promotion.
3.3.2 Buzz marketing in the online community
Online Community is unique and virtual, it gathers the people who have the common interests in a
virtual space, to achieve the purpose of the communication with each other. With the increasing number
of Internet users and the maturity of consumer habits, online community gradually shows a strong
marketing function. Through the network community, enterprises can search for consumers and
audiences in a wider region, and then gather them together precisely, each of them will be a potential
salesman or saleswoman. Experience teaching and share among the consumers can affect other potential
consumers. Using the new form and tool of Internet can form word of mouth marketing effect, such
marketing can often achieve a very significant effect at very low cost.
3.3.3 Online advertising alliance
Online advertising alliance is a new network marketing model that advertisers use the services which are
provided by professional marketing agency to expand their online and offline business, sales space and
sales channels, and pay for it according to the marketing effects. Advertising alliance consists of three
elements: the advertisers, website owners and advertising alliance platform. Advertisers pay the
reasonable fee of advertising to the site owners in accordance with the practical effect of online
advertising (such as sale), consequently saved marketing costs and improved marketing quality. Website
owners select the appropriate advertisers and advertising on the main Ads to increase revenue through
the ad network platform, at the same time save a lot of network advertising sales costs, easily transfer
the visits into income. This network marketing is gradually accepted by more and more enterprises.
4 Conclusion
There are opportunities and challenges, advantages and disadvantages in the application of Network
Marketing in private enterprises. But in the long run, the network marketing has become the trend of the
times since it adapted to the digital economy. Private enterprises must strive to overcome its own
deficiencies, change the traditional business philosophy, speed up the process of enterprise
informatization and improve the level of technology so that they could win in a competition.
References
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Mar, 2007 Vol.26 No.2 (in Chinese)
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A Retrospective on the First Ten Years of JIM and a Prospective on the Next Ten Years. Journal of
Interactive Marketing Volume23, Issue1, February2009, Pages11-22
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