E-commerce techniques and marketing strategy
The aim of Boo.com was to develop into the popular online international sports retail company. It was supposed to be a European trademark, but with a worldwide demand. At the beginning it wanted to work for both United States and Europe.
The customers of boo.com could be described as ‘young, rich and style- oriented, approximately 19 to 25 year olds. The idea was that internationally the objective market should be anxious about sports and style trademarks supplied by Boo.com.
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According to the analysis the market for clothes in this field was determined as really huge, so the idea was that having just a small section of this market was enough for boo.com to be triumphant. That time the vision on the size of the market and the source of triumph was pointed out by New Media Age (1999). They stated:
“The $60b USD industry is dominated by Gen X'ers who are online and according to market research in need of knowing what is in, what is not and a way to receive such goods quickly. If boo.com becomes known as the place to keep up with fashion and can supply the latest trends then there is no doubt that there is a market, a highly profitable one at that for profits to grow from.” (Acito 2006)
The development in market was in addition held up by trade forecasters, with judgment foretelling selling in the UK to rise from £600 million to £12.5 billion by the year 2005.
Nevertheless, New Media Age (2005) did make a note of a number of uncertainties about this marketplace, stating:
“Clothes and trainers have a high rate of return in the mail order/home shopping world. Twenty year olds may be online and may have disposable income but they are not the main market associated with mail order. To date there is no one else doing anything similar to boo.com”. (Acito 2006)
The three different marketing strategies used in global marketing are characterized in different ways, have different aims and use different instruments for the achievement of set goals; moreover, the targeted customer audience in the three cases is also different, and while standardized and concentrated global marketing strategies are somewhat similar, the standardized and differentiated strategies represent the two opposite approaches to the general design of the marketing campaign.
However, all three strategies described are successful if properly applied, and the three examples of the global companies have proved this assumption.
In reality, the choice of the global marketing strategy, depends on the specific characteristics of the company and the segments it wants to conquer; if all segments are aimed, it is possible to create differentiated campaign with variety of products or standardized campaign appealing to the common interests of consumers; concentrated strategy will work for the conquering one large portion of one or several marketing segments.
Boo.com had concentrated marketing strategy. Concentrated global marketing is a kind of the global marketing strategy which cannot be contrasted to the standardized approach, but which is a different choice for the company which wants to achieve success in one single chosen global market segment.
This kind of marketing is used when the organization has large share of market in one or several small segments opposed to the concentration of efforts in the small share of a large segment. (Kotabe & Helsen, 2004)
Concentrated global marketing is effective for the companies with the limited resources and for the companies of small business, but for the global companies it is essential to have a high reputation of the product.
For example, the acquisition of the EnviroSystems by the Telecomm sales Network in 2006 has become one of the recent examples of the chosen concentrated marketing strategy on the global market; it may be similar to the standardized approach because it does not require changes in the strategy, but while the standardized approach is applied to all segments, the concentrated one is used only within the limited marketing segment or several segments. (Phillips, 2007)
EnviroSystems is the company specializing in the production of disinfecting products, which presupposes in it that the company should use only concentrated approach due to the very special products it offers.
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E-commerce techniques and marketing strategy. (2016, Jun 20). Retrieved from https://phdessay.com/e-commerce-techniques-and-marketing-strategy/
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