An Analysis of Marketing and Digital Communication on the eBay Company

This report provides a comprehensive analysis of eBay's marketing and digital communication strategies. It begins with an executive summary and an overview of eBay's history, aim, products, services, and competitive positioning. The report delves into the research methods employed, including data collection techniques and target market analysis. It then explores eBay's current value proposition, market value, and theoretical framework, including a perceptual map illustrating its market positioning relative to competitors. A significant portion of the report is dedicated to eBay's marketing promotional plan, detailing its marketing strategies, promotional mix, and brand value analysis. The report concludes with a summary of findings and references, offering valuable insights into eBay's e-commerce operations and marketing effectiveness.

Running head: MARKETING AND DIGITAL COMMUNICATION ON E-BAY COMPANY
MARKETING AND DIGITAL COMMUNICATION ON E-BAY COMPANY
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Executive summary
The report shed light on the influence of marketing management and digital communication on
eBay company. This is an e-commerce company and they have operated their business through
websites. The prices of their products are low and that is the reason people love to use this
company.
At first company’s aim, target market and brand value have been discussed. In case of research
method primary and secondary research techniques have been used as information can be
gathered from both the sections. Communicate future design and positioning also presented in
the perceptual map to determine the place of the company. On the other hand, positioning is
determined by the need of customers and their diverse range of products creates better chances
for their market expansion.
Along with this, the better promotional strategy has been discussed. All strategies are
highlighting the better management facility and create a budget allocation in which the company
should invest in their marketing promotion.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Background..................................................................................................................................3
2.1 History...................................................................................................................................3
2.2 Aim........................................................................................................................................4
2.3 Product and Service...............................................................................................................4
2.4 Positioning with competitors.................................................................................................4
2.5 Current Value.........................................................................................................................5
3. Research Methods........................................................................................................................7
3.1 Data collection methods........................................................................................................7
3.2 Target Market........................................................................................................................7
3.3 Communicative future design................................................................................................8
4. Current Value Analysis................................................................................................................9
4.1. Value Positioning..................................................................................................................9
4.2 Market value and theoretical framework...............................................................................9
5. Marketing Promotional Plan......................................................................................................10
5.1 Marketing Strategies............................................................................................................10
5.2 Promotional Mix..................................................................................................................12
5.3 Brand Value Analysis..........................................................................................................14
6. Conclusion.................................................................................................................................15

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References......................................................................................................................................16

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1. Introduction
Promotional strategy and digital communication through any portals or devices are
important for the company to extend their business. eBay is one of those e-commerce
multinational companies which is operating globally and facilitates consumers through their
websites. In recent times, eBay reaches into amultibillion-dollar business and operating in 30
countries. They have a wide range of products and they are operating worldwide through their
website, which is an option of digital communication (Ebay.com.au,2018). The website is free
for buyers and they can easily access the website to check the latest trend in fashion and
accessories. In this report, eBay marketing extent and their reach in markethave been discussed.
They have certainly taken some marketing strategies for their organizational development and
implement those strategies so that their product can easily reachable for customers. In this report,
eBay’s aim, functions, market position, customer value proposition, current value position in the
market and their marketing plan would be discussed.
2. Background
2.1 History
eBay was founded in September 1995 and headquarter of the company situated in San
Jose, California. In 1997, the company interested in media and they want to create a perfect
market through the website (Ebay.com.au,2018). By the middle of 2002, this perfect market
foundation has been completed and the management has enough faith in that system and
employees are also motivated by the innovative form of work culture.

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2.2 Aim
The aim of the company is to provide a global trading platform where anyone can pursue
their trade. Practical implementation in the business market is the prime motive for this
company.
2.3 Product and Service
Huge range of products can available from eBay and they are delivering those products at
lowest price. They have products from fashions, home and gardens, electronics, sports, grocery
and liquors and other items. All these items are very low in price and Australian people like to
purchase things from their websites. There are some discounts from selected items and people
love to grab them. The range in product and lower price of the product is the prime attraction of
these brands and company also promoting this fact. Local employees are doing the delivery so
the delivery process is very smooth and customers easily get their product within the due date. A
particular section is segregated for children and eBay monitor especially this section as no other
e-commerce company influence such sections and this is one of the attractions for them (Yadav,
Joshi & Rahman, 2015). eBay delivers a better form of commerce and provides economic
opportunity for native people. The company discovers great value in business and they have a
unique selection of products that differentiate the company from others. The company also
donates some of their revenue to charity and support the nation in this procedure.
2.4 Positioning with competitors
In comparing with other companies eBay started with used products and then they are
going towards the new ones. This change in market understanding has come when they compete
with other companies and identify their drawbacks in business. On the other hand, other e-
commerce companies are monotonous in that section (Brečko&Ferrari, 2016). They have started

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their business with new products and in this change fashion trends they also providing or
showcasing such same products. eBay always focus on community, as the company thinks that
people are very good at choice and they have a capable brain to adopt all the innovations they
introduced in the market. Other companies focus on products, as theythink that supreme product
quality is needed by customers (Stone & Woodcock, 2014). This thought process is quite right as
people want a quality product but if people are not set as the important sector then lots of people
are not understood the value of their own provided by the company. In this aspect, eBay is better
than any other company. Most of the times eBay products are virtual and for this reason, there is
no ownership process applicable to this e-commerce process. Other companies have individual
ownership and they have handles physical products as well. eBay has a facility department that
transacts all eBay items from warehouse to their nearest hub so that delivery people easily take
those items for door delivery (Manfreda et al., 2017). On that other hand, most of the companies
manage their supply chain in uniform way of warehouse management, packaging and developing
the items. Therefore, in most of the cases, eBay is a lot more advanced and they pick the right
strategy to extend their business. They have innovative touch in their website, product and
operation management process and that differentiate the company from the others.
2.5 Current Value
eBay targets all those big brands and accumulates all those brands in their store. The
value of the product can be drawn by the production cost of that product, the rate of product
perceived by the customers and the optimum market value of the product. This is the
measurement of current value and eBay develops their business globally thus they have abetter
market value from some of the other e-commerce companies as well. eBay controls as a business
leader company including Marketplace, Stub Hub, and Classifieds stages (Bradley, Madnick &

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Kim, 2016). It involves the establishment of reserves and acquirements to help enable business
on platforms for consumers and suppliers through online or on mobile devices. Through the
online shopping procedure the company has earned additional US$8.97 billion and this signifies
the market position of the company (Ebay.com.au,2018). Operation income also increased and
that figure shows at US$2.32 billion. There are 12,600 employees work on eBay from all over
the world and they are operating with 55 world’s most valuable brands.
Figure 1:eBay's annual net revenue from 2013 to 2016
(Source: statista.com 2017)
The statistical graph identifies that a good amount of revenue has been generated in every
year and this is very important for a growing company which only controls their business
through the website (Nair, 2015). All kinds of branded products available in their store and with
the change in market trend, peoples’ need are easily identified by them. Among 130 top

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American companies eBay is on 31st position in Profit and every year they show some change in
their revenue percentage and this increasing percentage help them in a secure palace in market
position (Ebay.com.au,2018).
3. Research Methods
3.1 Data collection methods
There are two types of data collection techniques. These are Primary data collection and
Secondary data collection. Primary data are collected from the direct response from the
respondents. Interviewer places some question to the interviewee and a direct answer address the
dimension of the question. On the other hand, Secondary data are collected from Journals, books,
newspapers articles, online journals, government reports, company sites and some other
informative places. If these documents can provide enough proof then only these are considered
as the secondary source of research method technology. In case of gather primary data, a
particular group of people has been set for making an idea of the fact. Demographic facts are
quite important in that sector as the sector determine the particular group and segmented
questions for each group irrespective of age sex and class.
3.2 Target Market
The target market of eBay is diverse as they delivered their product all over the world.
They also take care of choice of people, their trends and fashion and needs. A huge target market
is covered by them and people also love to acquire their quality products at low range. eBay has
its own foundation and all kind of communal people work here to make the business field vast
and building vibrant nature in business (David Stone & David Woodcock, 2014). The company
also believes that people are basically good in commerce and people love innovative changes in
lifestyle. They target children, men, women of all age and also take care of their needs so the

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people can buy anything they want. Psychographic segmentation in class and attitude in people is
also important and eBay also segmented their products into such sections.
3.3 Communicative future design
In case of future digital communication, eBay introduces an internet protocol where
customers can Skype for their chosen product and eBay executives demonstrate the product for
that customer. This is a huge change in technology and e-commerce revolution that will place in
few days. The company also provides online apartment rental service and they have a huge range
of payment platform (Bones & Hammersley, 2015). Online payment is now necessary to save
time and eBay has managed all kind of online payment platform in them and they are updating
that regularly. Communication is the only connectivity that people get touched with eBay
executives so eBay provides training to their executives for better outcomes. eBay also
introduces Multi-Carrier modulation which provides advantages in both systems of investigating
and researcher with the high flexibility and high spectrum efficiency (Andaç, Akbiyuk& Karkar,
2016). Shipping procedure and online payment and return policy also change through the
process. This is basically a digital domain platform that allows simple signal detection strategy
and incorporates better operation process for eBay.

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High Price
High QualityLow Quality
Low Price
Myntra eBay
Flipkart
Amazon
4. Current Value Analysis
4.1. Value Positioning
Figure 1: Perceptual Map of market positioning of eBay
(Source: Created by Author)
4.2 Market value and theoretical framework
From the above market positioning, it can be considered that eBay has secured a better
place for them. They deliver their products at low cost and people love to use their quality
products to such low ranges. eBay innovates their product in an effective way and this chaining
process of introducing new trends in products is going on as per the requirements of customers.
In case of categories,Flipkart has more than 100 brands where Snapdeal has more than 500
brands in their store (Kumar & Kumar, 2015). Whereas, eBay has more than 2000 brands in their
store and all these brands showcase thepremium quality and have very low in

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price(Ebay.com.au,2018). More than 1.1 million products are the main asset for this company
and as they are delivering some new marketing strategies and technological implementations
their business growth is increasing. They have 45,000 sellers and the number of sellers signifies
their market expansion (Vishwakarma, 2017). Different ages of people are their customers and
people love to visit their page again and again for latest trends, new products, or to avail some
discounts or offers. 8.04% of people daily visit their page and as per the viewing increase, the
possible chances of selling and business expansion also increase (Ebay.com.au,2018).
5. Marketing Promotional Plan
5.1 Marketing Strategies
Marketing strategies are important to change the market position of the company by
introducing a certain approach to strategy. Global positioning of business market changes due to
that new approach and this domestic market enhances mass customization as well. Every
individual customer can buy their products and all kinds of world-class products deliver from
here. Implemented strategies focus on the best deliverable process and that provides excellence
in delivery and mitigates the external challenges for better reach in market. Business market
always shapes their strategies as per the need of customer (Price, 2014). In case of e-commerce,
people can easily check new trends in fashion or in accessories they order anything that they
want (Maarek, 2014). The move from function to process is very innovative for eBay, they have
some technological assistance for that particular job and people love this facts delivery
technology introduced by eBay. The reason behind revenue generation of the company is global
expanse which is an advantage for eBay. They recognized the positive aspects and determine the
needs of people so that customers visit their website again and again. The geographical arena
eBay covers is diverse so they have segmented their style and fashion for each of the nation and