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Marketing Strategy E-Shop Hub Updated
Marketing Strategy E-Shop Hub Updated
COMPREHENSIVE
MARKETING
STRATEGY
Executive summary
Executive Summary___________________________________________________________2
Introduction_________________________________________________________________4
1. Conduct a detailed market analysis for E-ShopHub. Identify the key trends, opportunities,
and challenges in the online retail industry. Based on this analysis, provide recommendations
on three product categories E-ShopHub could focus on, substantiating your choices _____6
2. Define the target audience for E-ShopHub. Create a comprehensive buyer persona for
3. Craft a compelling value proposition for E-ShopHub's chosen product category. Explain
how this value proposition addresses the needs and desires of the identified target audience.
4. Design an innovative pricing strategy for E-ShopHub. Justify your pricing approach based
on the perceived value of the products, competitive pricing analysis, and customer
affordability _______________________________________________________________10
III. Creating integrated Marketing Mix
5. Formulate a promotional strategy for E-ShopHub. Outline the key elements of your
and content marketing. Describe how these tactics will be synchronized to create a consistent
6. Develop a distribution strategy for E-ShopHub. Determine the optimal channel mix,
behind your choices, considering factors such as reach, control, and customer experience_12
7. Propose a customer service and post-purchase strategy for E-ShopHub. Outline how the
company will ensure customer satisfaction, handle inquiries, manage returns, and gather
8. Identify the key performance indicators (KPIs) that E-ShopHub should track to measure
the success of their marketing strategy. Explain how these KPIs align with the company's
9. Develop a plan for continuous improvement of the marketing strategy. Describe how E-
ShopHub will collect and analyze data, derive insights, and implement changes based on the
findings to optimize its marketing efforts over time. (Word Limit: 300 words) _________15
Conclusion__________________________________________________________________16
References__________________________________________________________________17
Introduction
Electronic or Internet commerce has shown to be highly effective and offers significant
convenience to individuals, reducing the need for them to step out of their homes. E-commerce
refers to a business in which people and organizations engage in the buying and selling of
products and services through the utilization of technology and electronic devices, primarily
conducted through the Internet. Moreover, the practice of internet retail or e-commerce is widely
embraced in the Philippines. The convenience of online buying has led to a growing preference
among consumers. The newly developed shopping technique not only offers a substantial
selection of products to potential customers but also offers an extensive range of business
opportunities and a broad market. The concept of "social media" has grown beyond its original
meaning as a platform for self-expression on the internet, now including the ability to promote
business interactions through online stores.
E-Shop Hub is a dynamic e-commerce platform that aims to develop a solid position in
the retail industry by providing a diverse array of products and services. These offerings span
various categories, including pet supplies, household necessities, health-related items, fashion,
automotive necessities, technology, and more. The platform strives to cater to the constantly
shifting needs of today's consumers. This comprehensive marketing strategy offers an in-depth
analysis of the opportunities, challenges, and strategies for success in the highly competitive
online retail industry. The online shopping industry has undergone major growth in the last ten
years, mostly driven by changes in customer preferences, increased internet accessibility, and the
useful qualities of online retail.
1. Conduct a detailed market analysis for E-ShopHub. Identify the key trends,
opportunities, and challenges in the online retail industry. Based on this analysis, provide
recommendations on three product categories E-ShopHub could focus on, substantiating
your choices. (Word Limit: 400 words)
A. Key trends
The broad adoption of smartphones has increased mobile commerce. Online merchants
are improving their mobile apps and websites, adopting mobile payment options, and using
location-based services to target customers. According to (Lamberton & Stephen, 2016), the
"digital transformation of marketing" involves businesses and customers adopting new
technology to create new market behaviors, interactions, and experiences. Digital payments are
also essential. The pandemic accelerated digitalization. The introduction of this technology has
completely transformed how businesses process payments and customer payment preferences.
Online payments are secure, fast, and simple using digital or e-payments, helping an economy
grow and advance technologically (Slozko & Pelo, 2014). Nowadays, people choose cashless
purchases and Internet transactions.
B. Opportunities
C. Challenges
D. Recommendations
Rapid innovation growth presents an opportunity for E-Shop Hub. The hub can
create a mobile and desktop-friendly website and app. Choosing the correct influencer is
also important. The E-Shop hub should filter the influencers they work with. Flexible
indicates the influencer is known by all ages and liked by netizens. Finally, cancel, return,
and refund policies should be clarified. The terms and conditions should rely on product
cost, delivery cost, and buyer location to minimize profit margin. This will assist the firm
in maintaining its high rating and inventory management.
2. Define the target audience for E-ShopHub. Create a comprehensive buyer persona for
your chosen product category, including i) demographic information, ii) psychographic
attributes, iii) online behavior, and iv) purchasing preferences. (Word Limit: 350 words)
• Name: Monique
• Age: 29
• Education: Master in Business Administration
• Marital Status: Single
• Location: Philippines
Description:
Monique is a female in her late twenties spending most of her time at work and
travelling. She usually spends her weekday mornings to afternoons at the office and still tries to
grab some dinner catching up with her friends in the evenings. Monique usually socializes with
her friends through fancy dinners with a cup of coffee. On weekends, she tends to spend her days
traveling and exploring different cities. She keeps a goal to herself “Save while you’re young”
and enjoy your retirement early. She keeps herself busy at work and focused on her goal to
succeed early in life. She’s also captivated by shopping online as it fits her busy schedule and
more discounted items are offered. Online shopping also became her sleeping tool as she spends
most of her super late nights scrolling until she gets to sleep. She also sets reminders for
upcoming online promotions and makes sure to grab these mega deals. Her perception became
“spend less in the comfort of your home”. She does not only save money from the promotional
prices but also saves time and effort from traveling from stores to stores and spending money on
fuel. Shopping online also became more convenient for her since she believed that keeping cash
on hand would urge her to spend money on unnecessary things and with the availability of digital
payments, she carefully thought about all the cashback and points she could earn from shopping
online and using digital payments. Monique outsmarts online stores, testing online workarounds
to save more money, and maximizes her advantages in her spending behavior. She buys almost
all her necessities through online shops and enjoys all the rewards she can get afterward.
3. Craft a compelling value proposition for E-ShopHub's chosen product category. Explain
how this value proposition addresses the needs and desires of the identified target audience.
Utilize the AIDA model (Attention, Interest, Desire, Action) to structure your response.
(Word Limit: 350 words)
AIDA model which stands for Attention, Interest, Desire, and Interest is a marketing
model introduced by Elias St. Elmo Lewis way back in 1898. According to (Petit et al., 2011),
the AIDA model of business product marketing has inspired writers and marketing enthusiasts to
explore and design a reader-friendly process for promoting business items in the digital era.
Attention:
Action
Limited time special offers on
products.
E-Shop Hub can structure an AIDA model to improve the awareness of their products to
their potential consumers. Using our target consumer’s persona, Monique buys almost all her
necessities online. From her clothing, make up, fashion products, pet supplies, and even home
furniture. Monique is interested in replacing her study table at home and while she was scrolling
her online applications, she saw an advertisement from TikTok created by E-Shop Hub. The
content was introduced by an influencer with millions of followers and she follows it as well on
all of her social media platforms claiming that she also uses it at home, The influencer
demonstrated on how easily the study table can be installed or set up, enlightened the viewers
where it was made from, informed all necessary details such as the size, color options,
description of the table, other measurements, and how the influencer appreciates the study table
being aesthetic, durable, and the easy installation of the study table made it stood out. Monique
was convinced that this study table is what she needs and added it to cart and saw a promotional
discount that if she buys it now, she is eligible for a 10% discount. Monique’s impulsive buying
started and proceeded to purchase the product thinking that she saved a lot of money.
4. Design an innovative pricing strategy for E-ShopHub. Justify your pricing approach
based on the perceived value of the products, competitive pricing analysis, and customer
affordability. (Word Limit: 350 words)
Retailers may charge loyalty program enrollment fees to cover costs. The commitment-
consistency and sunk cost effects suggest that fee-paying consumers are of greater value to the
firm and more loyal, while the zero-price effect predicts the contrary (Ashley et al., 2016).
Having a membership fee on your online store can benefit your store as it could cover the
technological costs and will give your consumers the perception of being a VIP on the platform.
With tons of members on E-Shop Hub, the shop can start offering lower prices than the
competitors to penetrate the market. The reduced price helps a new product or service become
popular and gain consumers from competitors. Putting yourself in the shoes of your consumers,
people would always choose lower-priced items especially if the product is similar. Bundle
pricing is also a strategy a newly opened shop could take advantage of. Bundle pricing can
motivate clients if you tell them the bundle's items are worth more than the price if bought
individually. According to (Dominique-Ferreira et al., 2016), bundling products enables
businesses to distinguish prices, save trade costs, and create entry barriers for other businesses. It
would also help E-Shop Hub to sell products that take a long time to be sold, or in some
instances, stuck in the warehouse. Bundling holds significant importance for businesses as it
helps to increase profits through the generation of increased revenue per client transaction and an
improvement of purchase frequency (Mitchell, n.d.). These pricing strategies would not only
help E-Shop Hub generate more sales but would also give its consumers the feeling of
importance, value, and willingness to help consumers money. This will give them a sense of
worthiness which will convert these potential consumers into loyal ones.
III. Creating an Integrated Marketing Mix
5. Formulate a promotional strategy for E-ShopHub. Outline the key elements of your
approach, including digital advertising, social media campaigns, influencer collaborations,
and content marketing. Describe how these tactics will be synchronized to create a
consistent brand image and drive customer engagement. (Word Limit: 350 words)
S M A R T
6. Develop a distribution strategy for E-ShopHub. Determine the optimal channel mix,
considering both direct-to-consumer and third-party marketplaces. Explain the rationale
behind your choices, considering factors such as reach, control, and customer experience.
(Word Limit: 300 words).
7. Propose a customer service and post-purchase strategy for E-ShopHub. Outline how the
company will ensure customer satisfaction, handle inquiries, manage returns, and gather
feedback to enhance the overall shopping experience. (Word Limit: 300 words)
Aside from the quality of products every E-commerce or online shop should provide,
customer service is as important. Post-purchase customer experience is crucial to retaining a
customer and providing a high extent of communication to them is required. Every customer
deserves to feel valued and important, but with a high number of customer queries, can a
business handle all of those? According to (Hollebeek et al., 2021), the rise of artificial
intelligence (AI) is predicted to bring forth significant transformative impacts on service
organizations, particularly in terms of their customer engagement strategies. Simultaneously,
customer engagement (CE) pertains to the manifestation of consumer interactions. Hence,
choosing the right AI tool is crucial. It should be more human-like and seamless so that would
not make E-Shop’s customers feel like they are talking to a robot. As the level of AI integration
becomes smoother, the probability of customers recognizing that their interaction is with an
automated system, as opposed to human frontline personnel, decreases. For example, have you
ever sought online assistance, only to later discover that you were engaging with an automated
conversational agent commonly known as a chatbot? It is recommended that customers be kept
blind to the fact that they are engaging in a conversation with a chatbot (Pradeep et al., 2018).
The adoption of AI platforms, such as Zendesk, could greatly improve E-Shop Hub's ability to
guarantee consumer satisfaction throughout the whole purchasing process, including both the
transactional phase and afterwards post-purchase experience. This strategy will ensure a high
customer satisfaction rating and lessen hard processes for its employees. This will not only make
the process efficient but would also enable E-Shop Hub to keep up with all the queries every
customer needs.
8. Identify the key performance indicators (KPIs) that E-ShopHub should track to measure
the success of their marketing strategy. Explain how these KPIs align with the company's
goals and objectives. (Word Limit: 300 words)
Tracking the correct eCommerce KPIs is challenging. Your choice will depend on your
strategy and aims. Modern businesses have a lot of data, making it easy to get overwhelmed and
miss what's important. According to (Chaharsooghi et al., 2016) determining strategic objectives
and evaluating organizational performance over time can help administrators apply a suitable
system of management and understand the current state for continuous improvement. For every
business, the Sales Conversion rate is top of the list, but more importantly, E-shop Hub should
focus on the Average time of conversion. When leads become paying customers reflects the
effectiveness of your sales approach. If the conversion time is too long, prospects may lose
interest in your products or services and switch to a competition (Singh & Kumari, 2019b). By
monitoring the average time of conversion, Website visits per marketing channel should be
checked next. E-Shop Hub must monitor website availability and performance to reduce
downtime, enhance performance, and improve user experience. Online uptime is crucial for any
business, and online application monitoring is a major difficulty for most. Once E-Shop Hub has
monitored which channel usually encounters downtime, early intervention can be done to
improve the strategies being implemented. The last and most significant KPI is the retention rate
and the new visitors or consumers. The percentage of repeat visitors shows audience
engagement. A low return rate on content posted on a page or other social media channels means
that the content is not engaging enough to keep visitors coming back and the retention rate shows
client engagement with your products. Monitoring this KPI is crucial to understand which part or
channel E-Shop Hub should focus on or if need to recreate a new marketing strategy. Since E-
Shop Hub is a business operating through the online world, it should focus on how to track and
keep up with the innovation.
9. Develop a plan for continuous improvement of the marketing strategy. Describe how E-
ShopHub will collect and analyze data, derive insights, and implement changes based on
the findings to optimize its marketing efforts over time. (Word Limit: 300 words)
Succeeding in entering a business is easy, but retaining a high generated revenue and
expanding continuously is hard. Continuous Improvement additionally serves as a point of view
that can be implemented as an approach to company management to improve corporate
competitiveness through the continuous improvement of goods and services, staffing, company
procedures, and surroundings. The goal is to increase the companies' competitiveness, enhancing
their overall financial performance (Kusuma & Ramlawati, 2018). Maintaining and optimizing
website or social media platform content improves search engine results. According to (Permana,
2019), the improvement of SEO utilizes the hybrid modified MCDM approach on the UMKM
website to increase search engine ranking and visitors over time. Due to the huge number of
audiences on social media websites, information circulates easily but in today's competitive
environment, marketers must be everywhere, every time, on all platforms (Olivas-Luján &
Bondarouk, 2013). SEO will optimize E-Shop Hub which will make search engines like Google
show the platforms in search results. This is one of the most important plans E-Shop Hub should
implement to continuously promote and improve its system. Regularly conducting website audits
is also a must to identify areas that need development. This includes the process of investigating
and finding broken hyperlinks, outdated information, and user-interface challenges. Competitive
website audits highlight opportunities E-Shop Hub may be missing by tracking its competitors'
online strategies. It will let E-Shop Hub learn from other businesses in the market and may
implement and adopt some of their strategies. The trend is always changing, and so as the
marketing strategies E-Shop Hub should be implementing. Every now and then, E-Shop Hub
should have a backup plan to support the initial goal developed. Even after analyzing data and
areas of improvement, E-Shop Hub should not only focus on improving its weak areas but also
come up with plans to retain the strong points of the business itself.
Conclusion
E-Shop Hub should not only focus on providing quality products but rather focus on
giving a full customer experience as this will affect their marketing generally. Word of mouth is
one of the most traditional yet effective marketing, and giving every customer a wonderful
shopping experience will give them the initiative to share and talk about E-Shop Hub, its
products, and how easily and wonderful all the transaction stages E-Shop Hub can provide. In
the end, all these wonderful reviews, testimonials, and comments will benefit E-Shop Hub.
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