An Over View Of The Alibaba Group Marketing Essay

Most purchasers and providers consider alibaba.com as a “ expansive B2B dating site ” . Businesss that are looking for specific merchandises can upload their demands in the hope of a “ lucifer ” with possible providers. They can efficaciously seek Alibaba.com for concern clients who have already registered their hunts.

This study has analyzed the factors that have contributed to the success of Alibaba.com in concern to concern market. The four Ps of the selling schemes are among the factors that have contributed to the success of Alibaba.com. Product/ service is one of the selling scheme that has led to the success of Alibaba.com. The services offered are such as on-line payments, naming solutions, protection and hallmark, instant messaging, member repute and after gross revenues services such as guarantee plans. All these services have accelerated the company ‘s success. Pricing is another scheme that led to the success of Alibaba.com ; the company has adopted a figure of pricing schemes such as ; merchandise line pricing, incursion pricing and price reductions. These pricing methods used are just to the concern to concern clients and have increased the gross revenues of the company.

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During its rapid growing, it has incurred challenges and became more exposed to greater competition. Promotion is besides one of the selling schemes that led to the success of Alibaba.com. The company promotes its services through the usage of cyberspace publicity scheme, media advertisement and sponsoring of events. Last but non least is the distribution scheme where by Alibaba.com uses the cyberspace as its intermediary whereby it has several web sites, it besides uses direct distribution channel ; Alibaba Groups has 40 mercantile establishments in China.

Other factors that contributed to the success are such as ; strong trade name, supplying clients with outstanding value and superior shopping experience, monolithic gross revenues volume and recognizing economic systems of graduated table.

Introduction

Alibaba.com Limited is the planetary leader in business-to-business ( B2B ) e-commerce and the flagship company of Alibaba Group. Which was found in 1999, Alibaba.com is the largest on-line market place for both international and domestic. Merchandise and services providers in concern to concern guided with good distribution channels. David Wei ( 2007 )

Alibaba Groups provides three online B2B marketplaces that connect purchasers and Sellerss from around the world- English- linguistic communication market place ( alibaba.com ) , a Chinese- linguistic communication market place ( alibaba.com.cn ) and a Japanese- linguistic communication market place ( alibaba.co.jp ) .

Apart from Alibaba.com, the Alibaba Group has diversified its attempts with other e-commerce sites such as Taobao.com, Alipay, Alimama, Alisoft and Yahoo Koubei! , an online classified service coaction between Yahoo! China and Alibaba Group. These web services expand the Alibaba Group ‘s concern portfolio to include services like retail web sites, and concern direction solutions, doing it one of the largest and most comprehensive suppliers of cyberspace retail and B2B services. On these sites Chinese and foreign houses trade everything from cars, constructing stuffs to iPods, TVs and letter paper

The cardinal benefits of utilizing alibaba.com are such as Low cost, Access to many suppliers/buyers, Quick dealing clip, More transparence in dealing, Lower hazard of fraud, Easy to do contacts with SMEs. Piet Walraven ( 2009 ) .

The initial concern theoretical account of Alibaba was simple ; ease a 24/7 meeting platform for providers and purchasers around the universe. From the start Alibaba did non merely link Chinese providers with international purchasers, but it had the end of linking all importers and exporters around the universe to each other.David Wei ( 2007 )

Both market places are segmented into over 40 industry verticals covering major consumer classs such as dress, electronics, gifts, beauty, security merchandises and office supplies.

Without a uncertainty Alibaba is the taking international Chinese Internet company. Its English linguistic communication B2B web site is accessed by providers and purchasers from anyplace across the Earth.

EXAMPLE OF ALIBABA.COM CHANNEL SALES PARTINERS /STRATEGIC PARTINERS:

.

Melbourne IT Limited INDONESIA

Japan

THE VALUE PROPOSITION/KEY BENEFIT

Alibaba.com was one of the few companies in China that did non copy bing concern theoretical accounts in the US or Europe

— — — — -It provides a platform for purchasers and Sellerss, and proposes intelligence, analysis and timely monetary value lists, and development squad works research new engineerings and maps to back up their web site which aid to heighten their service and cut down operation cost and obtain big net income.

— — — — — Its concern theoretical account aims to construction an efficient, flexible and antiphonal construction in forepart of a demanding client demand and information society chances.

— — — — — Under a concern theoretical account, its web of spouses for making, selling and presenting value and relationship capital to one or several sections of clients under B2B in order to bring forth profitable and sustainable gross watercourses. Piet Walraven ( 2009 )

Selling OBJECTIVE AND STRATEGIES

-Based on initial concern theoretical account as a long-run theoretical account to construct a solid foundation for B2B:

– Showing a database,

– Aiming to derive gross from dealing committees,

– Following up services provided on e-commerce platform,

– And supplying value-added services.

The cardinal success factors for this concern theoretical accounts are to construct critical mass rapidly to bring forth value and so, to scrutinize the members: construct trust by making a transparent environment

STRATEGIES EMPLOYED BY THE COMPANY IN THE PRESENT MARKET SCENARIO FOR THEIR SUCCESS

The term selling mix refers to the primary elements that must be attended to in order to properly market for understanding the basicss of what makes a good selling run. Here is a brief description of each constituent of the 4 Ps of the selling mix.

Selling Scheme

Effective selling is a cardinal component in any concern endeavor. Companies/ concern endeavors which do non hold experience in marketing a service/product will frequently overlook its importance. Part of selling is placing the mix of the four “ Ps ” that makes a service/product unique. ( Armstrong, 2004 ) The four “ Ps ”

are merchandise, monetary value, publicity, and place/distribution. The four “ Ps ” are among the factors that have contributed to the success of Alibaba.com on concern to concern selling.

PRODUCT/SERVICE STRATEGIES

“ Merchandise scheme is like a roadmap, and like a roadmap it ‘s utile merely when you know where you are and where you want to travel ” . ( McGrath 2001 )

— — — — — — — Merchandise is anything that can be offered to a market to fulfill a demand or desire. The merchandises, which can be marketed, include physical goods, services, individuals, topographic points, organisations, and thoughts. In deeper sense, the merchandise is non a physical point but a perceptual experience of the consumer or the user. Merchandise means satisfaction of the client instead than a physical good.

— — — — — — Alibaba.com offers assortment of services such as trust and safety, on-line payment, naming solutions, protection and hallmark, instant messaging, member repute and after gross revenues services such as guarantee plans.

— — — — — — — An on-line market place does non link the purchaser and marketer physically, hence so as to guarantee the safety of the purchaser and marketer Alibaba.com offers trust and safety ; it offers history protection tutorials to both the purchasers and the Sellerss, it besides helps clients on how to place a echt provider, alibaba.com besides enables its buyers/suppliers to be able to describe differences that may originate. Alibaba.com besides offers ID confirmations, whereby verified and certified members will hold an ID verify icon such as Gold provider.

— — — — — — — -Alibaba.com clients on-line payment is secured with Escrow, with Escrow the privateness of the purchaser is guaranteed, purchasers are able to pay firmly without exposing their inside informations and payment is merely released upon bringing conformation. Alibaba.com besides offers a members repute forum whereby purchasers are able to track record of the providers before carry oning a trade.

— — — — — — — — — -It besides offers an about me page, where as providers can show themselves through their ain personal page.

— — — — — — — — — -Listing solutions, listings displayed on Alibaba.com online market places cover a scope of merchandises and services in assorted industries including dress, chemicals, telecommunication and many more

— — — — — — — — — — Furthermore, Alibaba.com has a trade director whereas purchasers and providers can chew the fat and merchandise immediately. Suppliers utilizing the trade director can direct merchandise exposures or file of any size in an blink of an eye. Alibaba.com has after gross revenues services such as a guarantee plan whereby purchasers get up to a one twelvemonth guarantee in instance of a dislocation, this largely refers to the electronic merchandises.

Pricing Scheme

Determining a merchandise ‘s monetary value is a critical selling maneuver. A merchandise ‘s monetary value has to be high plenty to cover the entire cost of bring forthing the merchandise yet non excessively high so that it discourages possible clients from buying the merchandise. ( Edward, 2008 ) Alibaba Groups has adopted a figure of pricing schemes such as ;

— — — -Competition pricing is puting a monetary value in comparing with rivals. Alibaba Groups uses competitory pricing so that the monetary value they offer does non hold an utmost difference with its rivals. The company gives low monetary values and yet good quality merchandise so that it can pull the targeted market.

— — — Product line pricing involves pricing of different merchandises within the same merchandise scope at different monetary value points. Alibaba Groups has assortment of similar merchandises at different monetary values depending on the providers. Suppliers offer a scope of similar merchandises at a competitory monetary value. Buyers can hold a broad pick when they want to buy merchandises.

— — — -Penetration pricing is when an organisation sets a low monetary value to increase gross revenues and market portion. Alibaba Groups emerged as a taking B2B company due to the monetary value they offered to the clients. It used a incursion pricing by enforcing low monetary values to the scope of merchandises the providers offer.

— — — Discount is another manner of pricing used by Alibaba Groups. The company chose this method because it stimulates gross revenues every bit good as retaining clients. Discounts by Alibaba, are given to clients when they buy merchandises in bulky and during festival seasons. Some providers apply the BOGOF ( purchase one get one free ) method.

— — — — Value-added services is besides one of the pricing attack that Alibaba Groups has applied ; whereby the merchandise is offered at a lower monetary value but the services money add up the monetary value such services include transportation charges, fast bringing, warrants, guarantees, usage design and many more. Alibaba Groups uses this method to guarantee that the entire cost of the merchandises together with the value added services is more than the production cost so that the company can gain net income.

PROMOTION STRATEGIES

Promotion is a term used to depict the advertisement, publicity, promotion and merchandising of a merchandise or service. Promotion aims at making consciousness about the organisation ‘s merchandises or services to the mark market. Promotion can be broken down into two distinguishable classs ; face to confront merchandising and advertisement, publicity and promotion. ( Kotler, 2004 )

— — — — — — — — Alibaba.com uses the cyberspace publicity scheme because cyberspace is the best cost effectual and fastest publicity tool in the export/import market topographic point. The presence of alibaba.com company profile and product/services in major hunt engines like yokel gives the company a planetary exposure and creates consciousness among buyers/importers efficaciously. The handiness of cyberspace streamers about alibaba.com that take the seekers direct to their chief web site.

— — — — — — — — -Media advertisement is really helpful to big figure of companies that are familiar to the lifting competition in the present market. Alilbaba.com uses the media advertisement scheme to advance its merchandises and services through newspapers, Television and print ads and besides auto ads. Alibaba.com uses assorted run taglines during their publicities. Example of taglines used are such as ; “ Find it. Make it. Sell it, ” “ Draw up your concern program. Lock down your paradigm.

— — — — — — — — -Get on Alibaba.com to do it go on. ” these taglines encourages fighting enterprisers and they tend to make a big figure of possible clients. Media advertisement is largely practiced when the company wants to heighten promotional monetary values or launch new services/products.

— — — — — — — — Alibaba.com has besides promoted its product/services through sponsoring of events. Alibaba.com has sponsored events such as Australia-China Business Week, this was a high profile concern event and it was Alibaba ‘s first sponsorship trade in Australia. Alibaba.com has besides sponsored other events like Beijing Olympics and ping-pong.

PLACE/DISTRIBUTION STRATEGIES

Topographic point refers to a general construct depicting how the merchandise will acquire to consumers. Place includes all of the targeted market mercantile establishments and distribution tactics needed to present the merchandise for sale to consumers. The channel of distribution involves the logistics, jobbers and other mediators. Efficient distribution is really indispensable in accomplishing the company ‘s selling aim. ( Hutt, 1997 )

There are assorted types of channel mediators ; Alibaba Groups uses the cyberspace as its mediator. The cyberspace has a geographically disperse market hence niche merchandises will be able to make a wider audience. Alibaba Groups has several on-line B2B market places that possible purchasers and providers from around the universe can obtain its merchandises and services. The following are web sites offered by Alibaba Groups as its chief distributing channels ;

www.alibaba.com – An English- linguistic communication market place which is the planetary trade market for exporters and importers therefore making the whole world. , World Wide Web. alibaba.com.cn -A Chinese local market place for China. It is chiefly for Chinese speech production customers. , www.alibaba.com.jp -A Japanese- linguistic communication market place which facilitates trade to and from Japan.

Other B2B sites offered by Alibaba Groups in 6 non- English linguistic communication versions which can assist native bargainers beginning merchandises online easy are ; Spanish: hypertext transfer protocol: //spanish.alibaba.com/ , German: hypertext transfer protocol: //german.alibaba.com Italian: hypertext transfer protocol: //italian.alibaba.com/ Gallic: hypertext transfer protocol: //french.alibaba.com/ Portuguese: hypertext transfer protocol: //portuguese.alibaba.com/N Russian: hypertext transfer protocol: //russian.alibaba.com/

Alibaba Groups besides uses the direct distribution channel to present its merchandises and services. It has a figure of mercantile establishments in states like China, U.S.A and UK. Servicess like gilded rank, client ailments and so many more are handled in these mercantile establishments

Distribution is one of Alibaba. Com map which include company activities that make the merchandise available to the mark market. Alibaba usage different channels to do certain that merchandise is available where is needed Alibaba focal point on distribution channels like stock list, locations like supermarkets and hypermarket, logistics and transit besides warehousing. — — — — — — — The best of Alibaba.com distribution: is a web site that facilitates minutess between importers and exporters around the universe

ALIBABA ‘S TOMORROW OPPORTUNITIES:

Increased gross revenues and net incomes: Selling goods and services to a market the company ne’er had before encouragement gross revenues and additions gross

Enhanced domestic fight: Alibaba companies become competitory in the domestic market before they venture in the international country. Being competitory in the domestic market helps companies to get some schemes that can assist them in the international markets.

Derive planetary market portions: By traveling international, companies will take part in the planetary market and derive a piece of the immense international market place.

Lower Per Unit Costs and Sell extra production capacity: Alibaba capturing an extra foreign market will normally spread out production to run into foreign demand. Increased production can frequently take down per unit cost

Recommendation:

— — — — – Alibaba should happen information on foreign markets to cut down hard and time-consuming than happening information and analysing domestic markets. In less developed states, because dependable information on concern patterns, market features may be unavailable or really limited.

— — — — – So it ‘s better Alibaba to happen information on the foreign market to acquire easy information about the market and cut down clip consuming.

— — — — — For the publicity Alibaba should utilize other publicity tools like public relation and other advertisement media to increase high consciousness of their merchandise alternatively of concentrating on online because online can pass on information about Alibaba but bulk can non acquire the information so utilizing public relation Alibaba will hold high public presentation than the current state of affairs

Decision

The four Ps of the selling schemes have contributed to the success of Alibaba.com. The company has implemented all the four schemes in-order to travel to the right way. Alibaba.com has been able to emerge as a expansive concern to concern site where clients can easy obtain merchandises and services from the broad scope of merchandises available. Using the selling schemes Alibaba.com has been able to make the targeted clients and carry throughing their needs/wants consequently.

However the writer would urge that Alibaba.com should better its purchaser ‘s protection degree by placing undependable providers who scam clients. Alibaba.com should stress more on safe payment methods such as Escrow and missive of recognition whereby the hazard is equally shared between the purchaser and the provider. Harmonizing to Jack Ma “ clients are everything ” , hence in order to better the service degrees client satisfaction should be achieved by supplying clients with the best services.

By and large Alibaba.com is till on the right manner more a caput of its rivals because Alibaba.com has effectual selling schemes

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