E-commerce Marketing: Promotion and Pricing Strategies Report

This report provides a comprehensive analysis of promotion and pricing strategies within the e-commerce market, specifically focusing on the United States. It begins by identifying the target market as a broad audience interested in online shopping, spanning various age groups and computer literacy levels. The report then delves into the marketing mix, detailing the product mix (information goods, physical goods, and online services), price mix (pricing strategies based on cost, value, and competition), place mix (online presence), and promotion mix (advertisement, sales promotions, and public relations). The report also includes an advertisement budget and concludes by emphasizing the flourishing nature of the e-commerce industry and the importance of tailored advertising strategies. References include the various sources used to write the report.

Running head : PROMOTION AND PRICING STRATEGIES
PROMOTION AND PRICING STRATEGIES
Name of the Student
Name of the University
Author Note

1PROMOTION AND PRICING STRATEGIES
Table of Contents
Introduction................................................................................................................................2
Target Market.............................................................................................................................2
Marketing Mix...........................................................................................................................2
Product Mix............................................................................................................................2
Price Mix................................................................................................................................3
Place Mix...............................................................................................................................3
Promotion Mix.......................................................................................................................3
Advertisement Budget................................................................................................................4
Conclusion..................................................................................................................................4
References..................................................................................................................................5

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Introduction
The aim of the report is to mention the basic areas that come under a marketing plan.
The report further aims towards the refining of the strategies for the creation of a successful
business. The report will be based on the primary target market of the E-commerce market in
the United States of America. It will contain methods that are to be used to research customer
needs and wants (Weetman 2019). It takes in to consideration the respective marketing mix,
that is the product mix, price mix, place mix and promotion mix, followed by an
advertisement budget of a year and a plan that would incorporate the importance of
advertising media and publicity (Prabhala & Rao2019)
Target Market
The target market for the E-commerce business is a wide audience who take keen
interest in internet shopping. The E-commerce market wish to target the audience of all ages
from the youth to the old age who do not prefer much to go to the market and buy the
product. The website does not aim exactly on the certain age groups, but it targets any person
who is interested in the Online shopping, as well as the persons who are computer literates.
Marketing Mix
Marketing mix refers to the set of factors, which are in the control of a company for
the persuasion of consumers in order to buy a particular product (Huang, LiuLi, et al., 2019).
The marketing mix of a particular product depends on its genre. The various components of
marketing mix are product, price, place and promotion. The marketing mix for the
Ecommerce industry is mentioned below.
Product Mix
There are several divisions of the product component in e-commerce. These divisions
include the information goods and services that can be classified as the audio goods and the

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video goods. Then there are other categories such as the cars, computers, household goods,
which are found at low cost and the annotations are studied by the customers very briefly,
before they buy the product. Further, it also includes the online services such as reservation
of hotels, motels, and sale of railway tickets, flight tickets and other services relating to
travel. Unique goods that are sold in auctions are also sold over online basis. There also are
the final consumption goods that play a vital role such clothing, toys, household goods, and
many more.
Price Mix
The prices of a certain product is determined on the basis of rules of the classical price
formation. The strategies of pricing would be on the basis of the three components that is the
cost, the value of customer and its competitors. The price that is in the electronic market is
highly dynamic and it is dependent on the conditions of market and the pricing strategies
(Steinhoff, Weaven et al., 2019).
Place Mix
The place in an E-commerce is not much of a concern as the online does not need any
kind of physical existence (Wu 2019). The persuasion of the selling strategy comes from the
executed product group. The cost of the product would also be dependent on the shelf life of
the product. The place of the ecommerce is the online site or the social network (Stead &
Hastings 2018).
Promotion Mix
The various elements of promotion are
Advertisement, which is inclusive of the display advertising, contextual advertising, social
networks advertising, and native advertising. The greatest growth that will take place will be
the mobile advertising (Kingsnorth 2019). With the advent of the mobile phones the

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technology, marketing and advertising opportunities with the use of the smartphones and
tablets are much in to the development (Rohm, Stefl, et al., 2019). Sales promotions that
include the social media call to action, followed by the public relations which is done on the
social media marketing, content marketing, referral marketing and many more (Dodoo, & Wu
2019).
Advertisement Budget
From the Assignment 2 it is seen that the cost of advertisement in the year 2019 is
$600000, 2020 is $1000000 and in the year 2021 is $2300000. Based on the cost of the
advertisement, the budget is prepared which is as under.
Conclusion
From the above report, the conclusions that can be drawn are that the Ecommerce
industry is flourishing at a greater extent. The advertisement strategies are based on the
feasibility of the online store. The various sources of advertisement could be through the
Creative development, Print Advertisement, Channel Advertisement, Radio Advertisement,
Television Advertisement, Social Media Advertisement and many more. A few of the sources
have been put into use for the purpose of advertising and the preparation of the advertisement
budget.

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References
Dodoo, N. A., & Wu, L. (2019). Exploring the anteceding impact of personalised social
media advertising on online impulse buying tendency. International Journal of
Internet Marketing and Advertising, 13(1), 73-95.
Huang, Y., Liu, H., Li, W., Wang, Z., Hu, X., & Wang, W. (2019). Lifestyles in Amazon:
Evidence from online reviews enhanced recommender system. International Journal
of Market Research, 1470785319844146.
Kingsnorth, S. (2019). Digital marketing strategy: an integrated approach to online
marketing. Kogan Page Publishers.
Prabhala, K., & Rao, T. U. (2019). A Review of Phenomenal Raise of Advertisement
Spending with Digital Marketing.
Rohm, A. J., Stefl, M., & Saint Clair, J. (2019). Time for a marketing curriculum overhaul:
Developing a digital-first approach. Journal of Marketing Education, 41(1), 47-59.
Stead, M., & Hastings, G. (2018). Advertising in the social marketing mix: getting the
balance right. In Social Marketing (pp. 29-43). Psychology Press.
Steinhoff, L., Arli, D., Weaven, S., & Kozlenkova, I. V. (2019). Online relationship
marketing. Journal of the Academy of Marketing Science, 47(3), 369-393.
Weetman, P. (2019). Financial and management accounting. Pearson UK.

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Wu, P. F. (2019). Motivation crowding in online product reviewing: A qualitative study of
amazon reviewers. Information & Management.