Ebay's Marketing Communication Mix

Ebay incorporates advertising in all of its' functions.  Since Ebay is an online company, their logo is found on various other webpages throughout the internet world.  Ebay uses advertising through television as well, by promoting offering different seminars for beginner, intermediate or advanced sellers whom use the website to either buy or sell items.  Ebay also finds its' brand name in several different magazines such as Wired Magazine, even local newspapers have ads that promote the use of Ebay and its' services.

Ebay's public relations are displayed through the announcement link posted on their website.  Ebay posts daily and monthly updates regarding changes throughout the company, they also provide information regarding changes in the procedures and features of the website.  The company also utilizes discussion boards for users to be able to comment and express any positive feedback or post any comments they may have.

The services are relatively easy to use though the website, therefore personal selling is not a direct function of the company.

Ebay promotes its' services in many different ways.  Discounts, free postings and rebates are offered through the website, for just using the services.  The more you sell on the website the more benefits you receive, the same goes for those who purchase on the website.  Ebay constantly sends emails to users regarding different specials and features they have on the website.  Posting items is relatively cheap, which initially will catch the eye of a consumer looking to sell the item.  Ebay understands that their consumers and target markets are generally somewhat familiar with using computers, therefore it's just a matter of positioning the proper pricing for their services to the right people.  While posting items is relatively cheap, the additional ad-ons that you can use are generally what makes a listing more expensive, this allows Ebay to remain competitive while still offering good pricing.

Ebay utilizes direct marketing tools such as flyer's, infomercials and radio ads even.  Ebay is already an established name and therefore their use of these marketing tools is just to emphasize any new information or deals they may have to offer.  Again like personal selling, direct marketing would more or less be related to third party companies attempting to sell their services of how to use the website, but not directly related to Ebay.

Price and Distribution

Since Ebay does not carry actual "goods", the company positions its services in many different ways. For example, Sellers receive discounts in selling fees if they post a certain amount of items on the website. Buyers also receive discounts for purchasing certain items at certain times i.e. holidays, bulk items. Ebay positions its services at a competitive price and since the website is well known, most online buyers or sellers will resort to utilizing the site.

To post an item on the site, initially the Seller will be charged a listing fee, along with other fees involved with the initial post. During creating the ad on the website, Ebay offers many services and additional features that can increase the odds of selling their items, for a price of course. After the item has been posted and once it has been sold, there is a final selling fee that is incurred and automatically withdrawn from the final selling price. Ebay offers certain discounts to Sellers whom sell frequently on the site, such as no fee listings or no fee picture additions, increasing the loyalty of the Sellers and also increasing the flow of goods on the site.

When purchasing items, Buyers generally are looking for a specific items. Again, along the same lines of a Seller, Buyers are offered 10%, 25% and even 50% discounts off of certain listings. Although these discount are occasional, although Ebay is the third party who monitors the transactions, when these discounts are offered, the purchase is made for the final amount bid for the item and the discount is applied through Ebay, so technically Ebay is the one paying for the difference of the discount for the Buyer to the Seller. This again gains customer loyalty and a positive view of the company overall.


Since Ebay's product is a service, they generally position themselves in the distribution chain as the "middle man" and allow for an even flow of goods from Buyers to Sellers. Ebay offers such a wide variety of services to any type of Buyer or Seller, the demand for the service is always there and the demand for the variety of items is unparralelled. Ebay allows for a Seller's item(s) to reach an unlimited amount of markets, which increases selling potential. Since Ebay is already an established name, when listing items on the website, Seller's barely have to do any of their own personal marketing. The site allows any user, at any level to be able to sell almost anything through the site, making the distribution levels limitless.

Ebay's Environments

Ebay's microenvironment is stabilized by ongoing growth throughout the companies services. Ebay constantly faces the challenges of finding new, innovative ways to promote their services to continuously offer a variety of items on the website. The ability for the company to find easier ways to provide selling and buying services to consumers is a constant task for the website developers, so that the site can stay competitive in price and promotions amongst other online trading sites. The most difficult task when it comes to Ebay's microenvironment is the ability to stay seamlessly connected to its customers while find a way to combine its' services with the reliability and security they offer. Based on growth throughout the website, since Ebay is already the largest online international trading website, the ability to stay competitive in all markets, whether international or within the U.S. and maintain an even flow of goods, a consistent marketing strategy and a advanced user friendly site are their biggest challenges.

Ebay's macroenvironment is challenging because they must continue to find ways to not only communicate their services to those within the U.S. but also buyers and sellers from other countries. The ability to make communication easy for U.S. based customers and international customers can be come difficult when dealing with different currencies, taxes and shipping services. The ability to sell items online is simple for a customer when dealing with a territory that they are familiar with, but when adding the element of an international trade, this can add complexity to the transaction that Ebay must have thorough and up to date knowledge in walking the customer through. Ebay must also constantly find ways to cater to international clients by continually being aware of not only their trade and sale policies but their country's economic background, so that Ebay can stay competitive amongst other companies in foreign countries as well. Since Ebay is worldwide, the issue for them to promote their services is not necessarily that they have to advocate themselves as a service to use, but to make sure their customers from all demographics understand how to use their services as it pertains to each individual circumstance and sale.

Ebay's Positioning

Ebay positions itself as not only a safe online auction site but also a user-friendly site for selling and buying various items. The website is arranged in a way where it would be extremely difficult for anyone visiting the site to not search or click on some of the items on the "Welcome" page. The site captures the initial person just browsing the web and sticks out in a consumer's mind as possibly the only place to conduct online trading. Ebay's name is recognizable to almost anyone who surfs the web, whether they have bought, sold or browsed the site for items. Most consumers will use this site because of the competitiveness of the items listed as well as the variety. Most other online trading sites may offer lower prices to post items, but this changes the buying price of items therefore leading to less of a chance for a seller to sell their item(s). Various online trading sites also may appear shadier and less user-friendly which can turn-off a new comer searching for their place in the online trading world. Ebay's advantages are not only the way they position themselves as far as advertising but their consistency in providing easy, safe services for consumers whether buying or selling.

Ebay's Core Competencies

Along the lines of the 4 P's (Price, Product, Promotion and Placement), Ebay possesses strengths in each of these areas.

Ebay educates sellers in negotiating and finding the best price for selling an item in the marketplace, benefiting not only the seller and buyer, but the company as well. Ebay's costs to sell an item online are unbeatable compared to that of other smaller online trading/auctioning sites. The price of posting items online is extremely attractive to anyone looking to sell an item online, whether it be an automobile or a screw driver. The website also allows the seller to determine the price of shipping for any given item allowing to maximize profit in this area as well.

Ebay offers a wide variety of items, from electronics to furniture to automobiles, and allows for any buyer to be able to easily purchase and process safe transactions through their affiliated payment company, Paypal. Although Ebay does not have a material product, their valuable intangible product is the low-cost advertisement "space" any person interested in selling an item can use for a reasonable fee to showcase their item(s) nationally or internationally. Since Ebay reaches millions of people on a daily basis, it is nearly the only online trading/auction website that most customers will look to nowadays.

Ebay is brilliant when it comes to promotion, when asking anyone that does frequent or infrequent online purchasing or web surfing, you can almost guarantee that they have visited Ebay's site at least once in their travels. Ebay promotes itself through other online sites, magazines and most importantly word of mouth, which is probably the companies most valuable promotional method. When researching online trading websites, most people without a question will immediately look to Ebay as their source for various reasons. The costs of posting an item are the lowest online has to offer, the safety of the transactions are attractive to many customers or potential sellers, and the large spectrum of differently priced items entices a variety of people all over the world. Ebay is the one auction site you could search for a "toe nail clipper" and find several listings for both new and used items. Ebay provides exceptional live online help to customers, as well the ability to contact toll free numbers with any questions or problems a customer may come across. Ebay also offers a variety of different promotional options for someone wishing to sell items on the site, they offer the ability to apply for either a credit card or business Paypal debit card, which not only provides money-back rewards for the customer for any purchases or transactions made, but also provides a safe, smooth, worry-free guarantee for the customers personal information.

Finally, placement is obvious to how Ebay caters to its' customers, Ebay is purely a web-based company, so the company can be accessed by anyone, anywhere in the world, making their services available to all their target consumers.


www.paypal.com

Ebay's Mission Statement

"Ebay's mission is to provide a global trading platform where practically anyone can trade practically anything."

http://ebay.about.com/od/gettingstarted/a/gs_whatisebay.htm

In September of 1995 Ebay was developed by a software developer who was merely trying to sell a used/broken item he no longer needed, this initial transaction was the beginning of what we know today as Ebay, an international marketplace where just about anyone can buy and sell used or new goods, work or non-working items for various prices. Ebay has proven it's ability to not only become the largest online site to monitor safe trading between buyers and sellers all over the world but also has been able to develop a user-friendly site that merely anyone can use.

Ebay positions itself as not only a site to buy and sell goods, but to shop, collect and potentially even open a small or large scale online trading business for individuals.

www.ebay.com

Hello!

Hello! My name is Erica and I will be following Ebay as my company for my marketing project. Hopefully I can help you learn a little about the world of online buying and selling! Please feel free to leave any comments.

Thank you!