Marketing Strategy and Competitive Advantage in E-Commerce

Introduction to E-Commerce Marketing

When it comes to marketing, e-commerce is the wave of the future. Gone are the days when companies needed to market through newspapers, billboards, or sales flyers to attract attention. Many companies still use these methods, but they can now couple traditional advertising with digital avenues in ways that benefit both themselves and their customers. The most significant issue with a marketing strategy in the e-commerce world is gaining a competitive advantage over other businesses (Porter, 1985). That has been true since companies first began selling to customers, and it has only become more significant in the digital age, where businesses focus on selling their products to customers throughout the country and around the world. With the e-commerce opportunities available to companies today, it is not surprising that many are working on a digital marketing strategy designed to propel them forward (Urban, 2004).

One of the most significant strategies for e-commerce companies is social media marketing. Part of the reason it is so useful is the sheer number of people who use these platforms. Additionally, it is possible to market on social media sites for free, which allows sellers of goods or services to get their message out without spending a great deal of money. In a tight economy, small business owners — and even some large companies — may not have the budget to market the way they once did. By turning to free marketing options, companies are able to stay afloat and operate in the e-commerce sector without the burden of expensive advertising budgets that may do more harm than good during an economic downturn. Being able to reach people all over the world within a very small advertising budget is a powerful way to ensure a company's continued viability (Urban, 2004). With e-commerce becoming the future of business, a digital presence is essentially a required component of any company's success.

The Role of Social Media in Digital Marketing

Some companies are specifically e-commerce oriented, while others conduct business both online and offline. Because of this, the role that e-commerce plays may differ from one company to another. That variation is to be expected, but the need for a competitive advantage does not change (Porter, 1985). Every company operating in the e-commerce sector is trying to get ahead, and when a company succeeds in doing so, everyone at that company benefits. Customers also benefit, because they are able to obtain what they need from a company they trust, at a price they find acceptable. That can sometimes be difficult to achieve, but it is certainly not impossible. The more companies that exist in the e-commerce sector, the more each one must do to stand out and sustain its success (Urban, 2004).

Blending in can be dangerous for companies involved in e-commerce, because consumers today have an enormous number of choices available to them. When a company fails to get noticed or does not rise to the top of search engine results, it may find itself struggling to succeed and grow. Marketing and advertising can push a company forward, but not every business will have the budget to support them. That is precisely why social media and other low-cost or free options are so vital to e-commerce businesses. These tools should form part of an overall marketing strategy focused on giving the company meaningful advantages over its competitors.