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E-Commerce Marketing Practices

Marketing is the study and management of exchange relationships. Marketing is used to create, keep and satisfy the customer. With the customer as the focus of its activities, it can be concluded that Marketing is one of the premier components of Business Management – the other being Innovation

The ‘marketing concept’ proposes that in order to satisfy the organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors. This concept originated from Adam Smith’s book The Wealth of Nations, but would not become widely used until nearly 200 years later. Marketing and Marketing Concepts are directly related.

Given the centrality of customer needs and wants in marketing, a rich understanding of these concepts is essential:

Needs: Something necessary for people to live a healthy, stable and safe life. When needs remain unfulfilled, there is a clear adverse outcome: a dysfunction or death. Needs can be objective and physical, such as the need for food, water and shelter; or subjective and psychological, such as the need to belong to a family or social group and the need for self-esteem.
Wants: Something that is desired, wished for or aspired to. Wants are not essential for basic survival and are often shaped by culture or peer-groups.
Demands: When needs and wants are backed by the ability to pay, they have the potential to become economic demands.

Marketing research, conducted for the purpose of new product development or product improvement, is often concerned with identifying the consumer’s unmet needs. Customer needs are central to market segmentation which is concerned with dividing markets into distinct groups of buyers on the basis of “distinct needs, characteristics, or behaviors who might require separate products or marketing mixes.” Needs-based segmentation (also known as benefit segmentation) “places the customers’ desires at the forefront of how a company designs and markets products or services.” Although needs-based segmentation is difficult to do in practice, has been proved to be one of the most effective ways to segment a market. In addition, a great deal of advertising and promotion is designed to show how a given product’s benefits meet the customer’s needs, wants or expectations in a unique way.

Ecommerce marketing is the process of driving sales by raising awareness about an online store’s brand and product offerings. Digital marketing for ecommerce applies traditional marketing principles to a multichannel, data-driven environment.

When you break it down, ecommerce marketing can be divided into two general initiatives: driving website traffic and optimizing the user experience to convert more shoppers. Both are crucial components of your ecommerce marketing strategy and growing your online business, and they should be treated as equally indispensable.