Social Media Marketing on eBay: A Literature Review

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LITERATURE REVIEW
The Benefits of Social Media Marketing Within Ebay
Literature Review
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LITERATURE REVIEW
Table of Contents
Introduction......................................................................................................................................3
Research Questions..........................................................................................................................3
Concept A: Benefits of social media marketing within EBay.........................................................3
Concept B: Issues related to social media marketing faced by EBay.............................................3
Concept C: How EBay can adopt its social media strategy efficiently...........................................4
Main Body.......................................................................................................................................4
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

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LITERATURE REVIEW
Introduction
In recent time, social media has the significant platform in where the people efficiently share
their view and communicate with people in anywhere. In case of business, it creates a significant
effect as most of the companies utilize it to develop the organisational structure. In this section,
several activities are concerned to evaluate the benefits of social media marketing in terms of
EBAY.
Research Questions
1. What are the benefits of social media marketing within EBay?
2. What resources are needed to make use of social media marketing within Ebay?
3. What recommendations can help EBay implement its social media strategy more
effectively?
Concept A: Benefits of social media marketing within EBay
As opined by Erdoğmuş and Cicek (2012), EBay is the leading online marketing retailer all over
the world. Besides, the retailer company has created a particular platform in which they sale the
products and services all around the world. However, EBay marketplace platform gives an
infrastructure to allow the online commerce within a range of formats, including the
conventional auction platform. By using the social media marketing, the company has developed
their marketing connections in the competitive market. For EBay, marketing communications
coordinate the promotional activities, publicity, sales promotion and personnel selling. As argued
by Tiago and Veríssimo (2014), the increase of social media has affected the activities of
organisation. It gives a set of idea that allows the person to develop the business platform and
collaborate on the online project. Social media has altered the landscape of the business every
way. In case of EBay, the company has been capable to interact with their consumers within a
comfortable way.
Concept B: Issues related to social media marketing faced by EBay
EBay has developed the organizational structure by using social media marketing. However, the
company has turned down the bad phase of its business through the social media, but there are

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LITERATURE REVIEW
some problems faced by EBay. As opined by Clark and Melancon (2013), several e-retailers in
the market have wider access to their customers. Through innovative marketing activities, the
company has successfully strived to reach more and more consumers. In this method, the
company has been facing several difficulties to give creative and innovative content over its
social site. Due to this aspect, the customers have been facing several issues and they do not like
to visit in the company’s website. The ratio may also fall down if the company does not take any
creative approach towards this problem. Because of this issues and factors, the turnover of
company face a significant amount of decline by estimated amount of 10 million US dollars.
Concept C: How EBay can adopt its social media strategy efficiently
As argued by Hvass and Munar (2012), social media marketing is acting an important role in the
world’s financial system particularly in the way of carrying out the business. In context to EBay,
the digital marketing may change the way of their business in international market. The company
may be utilized the social media as an alternative medium to perform product branding and
maintain their connection with customers. It may bring the positive impacts on lower cost of
transaction and communication. As noted by Leung et al. (2013), company may also attain their
best performance by utilizing the information technology in their business operation. For
example, EBay may successfully make their e-retailer shops with 3000 direct suppliers. In the
online auction market, EBay has proved one of leading companies around the world.
Main Body
From Concept A, in recent time, people are utilizing the social media on a normal basis, with
email and Google engines as the most accepted services. According to Geho and Dangelo
(2012), EBay utilize the social media to carry their daily business to meet the target market and
convince the customers by giving the products at a very low price. Information is the most
powerful aspect as company may utilize it to manipulate other services. Email and discussion
forums enable the e-retailers like EBay to share their ideas, thoughts and knowledge. Within a
short period, the company would develop their business strategy all corners of the world. As
cited by Hudson and Thal (2013), EBay is the most trafficked sites in the massive marketplace.
They direct the online auction business has more than 60% share in its market, which is a closet
competitors to Yahoo!

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LITERATURE REVIEW
As noted by Hvass and Munar (2012), social media platforms is the significant aspect as it
concurrently makes easier for the company to accessible for new customers. By social media,
EBay has developed their brand loyalty. A strategic plan of social media may prove influential
factor to morphing their customers to being brand loyal. Social media plan is a significant
business feature for success of a company. To the context of EBay, it would support to develop
their connection with their consumers in where they share their issues and choices. A recent
survey of EBay, it has found that the fan following of this retail company is more than 100,000.
As opined by Malthouse et al. (2013), EBay has successfully engaged their customers over
through its social media marketing. This marketing platform is utilized by EBay for several
promotional activities regarding the offers and services made accessible by the company on a
regular basis. In case of EBay, the company has installed personal app for retaining and
attracting its existing consumers.
From the concept B, as argued by Gensler et al. (2013), many of the consumers are not active
over the social media, which may be problematic for EBay. This may be big issues for the
company as the company has been struggling to reach their consumers through its social media
marketing. As described by Laroche et al. (2013), because of this factor, EBay has to initiate
different marketing strategies to retain their existing consumers. These problems have been
somehow hindering the marketing performance of this retail company. However, the social
media marketing strategies used by the company are getting older for the customers. Therefore,
there must be a vital requirement for EBay to upgrade its social engagement and marketing
strategies to maintain its effectiveness for the promotional purpose of the company.
As argued by Leung et al. (2013), customers are utilizing hand mobile device to get the
information about the products along with services about the company. Thus, company must
know their customer’s demands and necessities. While they do not capable to fulfill the demands
and requirements of consumers, company faces several issues and fall down in the competitive
market. Digital marketing has raised many problems, for example whether digital marketing
enlarges the competition level within the market. It would decrease the search cost for customers
and enlarge the competition among sellers. However, it is evident that internet-based marketing
will help EBay to get better financial growth in international marketing.

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LITERATURE REVIEW
From the concept C, the overall objective of EBay is their gross volume and net income from the
online marketplace. It is recommended that the company would be focused to increase the
number of registered user in the online marketplace. As opined by Laroche et al. (2013), enlarge
volume and value in transactions may be helpful for the company to active in market. An online
market has facilitated the easiest control for both sellers and buyers in making an item for sale.
On the other hand, broadcast advertising is the most famous medium in advertising, which has
many branches like radio, television and the internet. EBay can utilize this medium as it had a
major effect on the audience.
According to Leung et al. (2013), public service advertising is another method, which may an
efficient medium of communication to contribute socially relevant message. Therefore, it is
highly recommended that company would adopt it for the social purposes. In recent time, it has
used as non-commercial fashion in several countries to promote their cultures. EBay must take
the advantage of the increase of internet usage by enlarging its marketplace around the globe.
Conclusion
From the literature review, it may state that EBay has utilized the social media marketing as
effective platform to develop the online marketplace. The digital market is a new form of
marketplace that utilizes the internet as its communication medium. It is also noted that suppliers
and buyers must utilize the social media marketing as a method to make the transaction.
However, it will support to decrease the searching costs for the customers and advertising costs
for the suppliers. It can be concluded that there are still several advantages in recent market may
not find the benefits of online auctions. They should control its external surroundings to secure
themselves from competition like Yahoo and Amazon. The main success of EBay is attracted
others to enter the online market. Through these social media marketing, it is concluded that the
retail company informs their consumers regarding the activities and events, which are going to
take place. Due to these factors, the social media marketing strategies of EBay is important for
its effective functioning. Besides, the company has been expanding its customer base through
expansion of its digital social media reach.

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LITERATURE REVIEW
References
Clark, M. and Melancon, J., 2013. The influence of social media investment on relational
outcomes: A relationship marketing perspective. International Journal of Marketing
Studies, 5(4), p.132.
Erdoğmuş, İ.E. and Cicek, M., 2012. The impact of social media marketing on brand
loyalty. Procedia-Social and Behavioral Sciences, 58, pp.1353-1360.
Geho, P.R. and Dangelo, J., 2012. The evolution of social media as a marketing tool for
entrepreneurs. The Entrepreneurial Executive, 17, p.61.
Gensler, S., Völckner, F., Liu-Thompkins, Y. and Wiertz, C., 2013. Managing brands in the
social media environment. Journal of interactive marketing, 27(4), pp.242-256.
Hudson, S. and Thal, K., 2013. The impact of social media on the consumer decision process:
Implications for tourism marketing. Journal of Travel & Tourism Marketing, 30(1-2), pp.156-
160.
Hvass, K.A. and Munar, A.M., 2012. The takeoff of social media in tourism. Journal of vacation
marketing, 18(2), pp.93-103.
Laroche, M., Habibi, M.R. and Richard, M.O., 2013. To be or not to be in social media: How
brand loyalty is affected by social media?. International Journal of Information
Management, 33(1), pp.76-82.
Leung, D., Law, R., Van Hoof, H. and Buhalis, D., 2013. Social media in tourism and
hospitality: A literature review. Journal of travel & tourism marketing, 30(1-2), pp.3-22.
Malthouse, E.C., Haenlein, M., Skiera, B., Wege, E. and Zhang, M., 2013. Managing customer
relationships in the social media era: Introducing the social CRM house. Journal of Interactive
Marketing, 27(4), pp.270-280.
Tiago, M.T.P.M.B. and Veríssimo, J.M.C., 2014. Digital marketing and social media: Why
bother?. Business horizons, 57(6), pp.703-708.

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