MODULE BMG814

E-Business

Introduction1

1. Online and Offline Environments1

1.1 Selling Offline1

1.2 Selling Online2

1.3 Comparison of Online and Offline Operations2

2. How Value is created?3

2.1 Value Chain Model4

3. Recommendations5

3.1 Recommendation 15

Strengths5

Weaknesses5

Opportunities6

Threats6

3.2 Recommendation 26

3.3 Recommendation 37

E-Marketing Mix7

4. Summary8

References10

E-Business

Introduction

The product group chosen for this essay is books. Books are an important part of an individual's collection, and due to the innovations in the recent past, there is a tendency for making good sales. Books are a kind of a product that is highly preferred amongst the passionate readers. Apart from that it is the need of all the consumers, regardless of whether they are students, or any other professional.

1. Online and Offline Environments

The product is sold online where the customer can read the reviews about the product before making a decision to purchase the item. Offline, the product is sold in stores, and available in libraries where it can be borrowed for a fee. The difference between the two mediums is that, in one channel it can be touched and felt physically. Online a preview of the books can be seen but it is only limited to the pages the seller wants to offer. Offline the reader can preview whichever part of the book they want. Online the book can be viewed and read through e-book readers.

1.1 Selling Offline

Offline the product can be seen touched, and the reviews can be read at the back of the book. The consumer can look at all the options that are available before making a decision to buy the product. Once the customer makes the final choice, he or she proceeds to the sales counter where the payment is made in cash or credit card.

1.2 Selling Online

Online is pretty similar to the offline environment, but the customer has to browse on the website. The review about the book and the opinion of the other readers can be read. After finalizing the choice, the customer proceeds to the virtual checkout where either the payment is made by credit card or cash on delivery. After the product is delivered, the customer gets the product, and some companies offer the return policy if the customer is not satisfied with what they get.

1.3 Comparison of Online and Offline Operations

Marketing Mix, also known as the 4P (Product, Price, Place, Promotion) is a tool used by marketers to assist in building marketing strategies. The principle of the marketing mix is ??the ability to control variables that affect the 4P.Marketers are looking for such a mix 4P, which not only meets the needs of consumers in the target group but allows the company to maximize the result (Constantinides, 2006, pp.407-438). Use of the Marketing Mix Modeling provides the necessary knowledge on how to shape the marketing expenditures to maintain an optimal relationship between the 4P and maximize return on investment (ROI) (Liodice, 2008).

Sales of products and services are influenced by all kinds of different factors. Measuring the effectiveness of marketing requires recognition and understanding of these factors. These are mainly:

Retail and wholesale prices,

Promotional activity,

Seasonality,

Changes in the economy,

Competitive activity,

Advertising,

Co-branding,

Events,

Direct marketing

Marketing Mix Model ...