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Analysis of Network marketing strategy
Marketing is the process of planning and implementing ideas, products, services, pricing, promotions, and distribution to create transactions for individuals and organizations. Network Marketing is the inevitable product of the development of human economy, technology and culture, and the network marketing is not limited by time and space, and it has changed the traditional marketing form and mode to a great extent. Network marketing for enterprises, improve the work efficiency, reduce costs, expand the market, bring social and economic benefits to enterprises. Compared with the traditional marketing, network marketing with internationalization, information and paperless, has become the trend of marketing development in various countries. In order to promote the popularization and development of network marketing, it is of great significance to analyze the network marketing strategy.
1, Network Marketing analysis
The emergence of network marketing, is the development of science and technology, the change of consumer values and business competition and other comprehensive factors contributed. The Science and Technology Foundation that the network Marketing produces, 21st century is the information century, the development of science and technology, economy and society is meeting the arrival of this time. The development of computer network makes the connotation of information society change further. In the era of Information network, the application of network technology has changed the way of distribution and reception of information, and changed the environment of people's life, work and study, cooperation and communication. Enterprises are also using the network of new technologies to speed up the car to promote rapid development of enterprises. Network Marketing is the use of the Internet as the media, new ways, methods and ideas to implement marketing activities, more effective promotion of personal and organizational transactions to achieve. It is both opportunity and challenge for enterprises to carry out network marketing and occupy emerging markets in such a huge potential market. Network marketing also arises from the change of consumer values: to meet the needs of consumers, is the core of the eternal enterprise management. It is an important way to obtain the future competitive advantage to use the network to provide consumers with all kinds of service. When the market economy develops today, most products are already extremely rich in both quantity and variety. Consumers can choose and purchase goods and services on the basis of their personal psychological desires. The more demand they have, the faster the demand changes. Consumers will take the initiative through a variety of possible channels to obtain information related to goods to compare, increase the trust in the product and strive for psychological satisfaction. The network marketing also produces in the commercial competition, along with the market competition increasingly intense, in order to occupy the superiority in the competition, each enterprise has resorted to all over the backwards to try to attract the customer, is difficult to say also has what novel unique method surprisingly wins. Carry out network marketing, can save a lot of expensive store rent, can reduce the inventory of commodity capital Occupy, can make the scale of operation is not restricted by the site, can easily collect customer information and so on. All these can make the cost and cost of enterprise operation reduce, the operation period becomes shorter, and fundamentally enhance the enterprise's competitive advantage and increase profit.
2, the basic characteristics of network marketing analysis
Fairness: In the network marketing, all enterprises are standing in the same starting line. Fairness simply means providing equal opportunities for different companies and individuals, and does not mean equal distribution of wealth.
Virtuality: Because the interconnection makes the traditional space concept change, there is a virtual space or virtual society different from the actual geographical space.
Symmetry: In Network marketing, interconnection makes the asymmetry of information greatly reduced. Consumers can search the Internet for any information they want, and they can get timely guidance from relevant experts.
Fuzziness: The boundaries that many people become accustomed to are blurred by interconnection. Among them, the most notable is the ambiguity of enterprise boundary, the fuzziness of producer and consumer, product and service.
Complexity: Because of the fuzziness of network marketing, the economic activities become confusing and difficult to distinguish.
Monopoly: The monopoly of network marketing is a monopoly formed by creative destruction, and it is a short-term existence, because the continuous emergence of new technology will make the monopoly to replace the old monopoly.
Multiplicity: In Network marketing, a transaction often involves multiple trading relationships.
Fast: Because of the interconnection, so that economic activities have a fast-running characteristics, you can quickly search for any information needed to respond to the market immediately.
Positive feedback: In Network marketing, because of the rapidity of information transmission, people have a frequent, rapid and violent interaction, thus forming a continuous reinforcement of positive feedback mechanism.
Global: Economic activity in the world is tightly linked by interconnection, transcending borders and regional constraints. The rapid flow of information, money, goods and services has contributed significantly to the process of world economic integration.
3, Network marketing Competitive Advantage analysis
Cost control: The most direct competitive advantage that network marketing brings to Enterprise is the control of enterprise cost and cost. The network marketing adopts the new marketing management mode. It through the Internet to transform the traditional enterprise marketing management organizational structure and operating mode, and through the integration of other relevant departments such as production departments, procurement departments, to achieve maximum cost control of enterprises. The use of the Internet to reduce the management of transportation, communications, labor, finance and office rental costs, can maximize the efficiency of management. Many companies in the Internet to start the enterprise is because the cost of management of online enterprises is relatively low, it is possible to start their own business and demand development opportunities.
Create market opportunities: There is no time and space limit on the internet, its tentacles can extend to every place in the world. Using the Internet to engage in marketing activities can be far and past by artificial sales or traditional sales can not reach the market, network marketing for enterprises to create more new market opportunities.
Let customer satisfaction: in the fierce market competition, there is no more important than to make customer satisfaction. The use of Internet enterprises can be in the Enterprise product introduction, technical support and ordering information on the Internet, customers can anytime, anywhere, according to their needs have a selective understanding of relevant information. This overcomes the time and space constraints in providing services to customers.
To meet the personalized needs of consumers: Network marketing is a consumer-oriented, emphasis on personalized marketing methods, network Marketing has a strong interaction between enterprises and consumers, fundamentally improve the satisfaction of consumers; Network marketing can meet the needs of consumers for shopping convenience, save the distance to shopping malls and time consumption, Improve the consumer's shopping efficiency; because the network marketing can save the huge promotion and the circulation expense for the enterprise, causes the product cost and the price reduction to become possible, may realize at the lower price purchase.
4, the Network Marketing competition principle analysis
In the network marketing, the enterprise must conform to the change of environment, adopt the new competition principle, can win in the fierce competition.
Personal market principle: In the network marketing, can use the computer and the network, adapts the individual needs, has the target to provide the low cost, the high quality product or the service.
Adaptability principle: Due to the existence of interconnection, market competition in the global scope, the market shows a fast-changing trend. Company's products can adapt to the changing needs of consumers, the company's behavior to adapt to the rapid changes in the market, enterprise organizations to be flexible, adaptable to market changes and flexibility.
Value chain principle: a product of production and operation will have a number of links, each link is likely to add value. We call it the value chain as a whole. Instead of focusing on the value-added of one branch of the value chain, companies should focus on the whole of the value chain and focus on the value chain as a whole.
Specific principles: First of all, to identify the representative of personal habits, preferences and taste, to produce products that meet the needs of individuals. The company then identifies a large number of potential customers of the same type, and sees them as an independent group selling products to them.
The principle of mainstreaming: giving the first generation of products to win the largest market share is called the principle of mainstreaming. Although the cost of creating digital products and infrastructure was high, the cost of continued expansion was small, resulting in new economies of scale.
5, Network Marketing competition Strategy analysis
The Network Marketing enterprise must strengthen its own ability, changes the enterprise and other competitor's competition contrast strength. Consolidate the company's existing competitive advantage: the use of network marketing companies can be the current customer requirements and potential needs of a deeper understanding of the company's potential customers have a certain understanding of the needs of the development of marketing strategy and marketing plan has a certain pertinence and scientific, easy to implement and control, smooth completion of marketing goals. The company in the database with the help of the marketing strategy has a strong pertinence, in the marketing cost reduction at the same time also increased sales revenue. Strengthen communication with customers: Network marketing is customer-centric, in which the database stores a large number of current customers and potential customers of the relevant data. Companies can provide specific products and services according to customer demand, with strong pertinence and timeliness, can greatly meet customer needs. Customer's rationality and knowledge, requires the product design and production to participate in order to meet their needs to the maximum. Through the Internet and large databases, companies can provide personalized services to customers at low cost. Setting up obstacles for intruders: designing and establishing an effective and perfect network marketing system is a long-term systematic project, which requires a lot of manpower, material and financial resources. Once a company has achieved effective network marketing, it is difficult for competitors to enter the company's target market. It is almost impossible for competitors to build a similar database with a considerable amount of cost.
The Network Marketing system is the company's difficult to imitate competitive ability and can obtain the income intangible assets. Improve new product development and service capabilities: companies to carry out network marketing, from the interaction with customers to understand customer demand, and even direct demand from customers, it is easy to determine the characteristics of customer demand, function, application, characteristics and benefits. It is easier to communicate with customers directly through Network database marketing, and it is easier to produce new product concepts. For existing products, through Network marketing easy to obtain customer evaluation and opinion of products, so as to determine the product needs of the improvement and the main features of the replacement products. Stable relationship with suppliers: suppliers are companies and individuals who provide products and services to the company and its competitors. Companies in the selection of suppliers, on the one hand, to consider the needs of production, on the other hand, considering the need for time, that is, planned supply according to market demand, will meet the requirements of the supply at the right time to the designated location for production to maximize cost savings and control quality. If the company implements network marketing, it can forecast the market sales, determine a reasonable amount of planned supply, and ensure that the company's target market needs are met; On the other hand, companies can understand the supply of competitors, develop reasonable procurement plans, and order in advance when supply is scarce to ensure competitive advantage.
6, Network Marketing strategy implementation and control analysis
The company's implementation of network marketing must consider the company's objectives, the size of the company, the number of customers and the frequency of purchase, product types, product cycle and competitive position, but also consider whether the company can support technology investment, decision-making technology development and application situation. The development of network marketing strategy has to go through three stages: first, determine the target advantage, analyze whether the implementation of network marketing can promote the enterprise's market growth, through improving implementation strategy to achieve revenue growth and reduce marketing costs; Secondly, we should consider the strategic demand and the future income when calculating the income, and the third is to evaluate the network marketing strategy comprehensively. Companies in the decision to adopt the Network marketing strategy, to organize strategic planning and implementation, network marketing is through new technologies to transform and improve the current marketing channels and methods, it involves the company's organizational, cultural and management aspects. Without effective planning and implementation, the strategy may be just an additional marketing approach that does not reflect the competitive advantage of the strategy. Strategic planning is divided into: goal planning, that is, while determining the use of the strategy, identify the marketing channels and organizations associated with them, propose the objectives and methods of improvement; technology planning, that is, network marketing is very important to have a strong technical input and support, so the capital input and system purchase installation, as well as personnel training should be integrated arrangements; Organizational planning, the realization of database marketing, the company's organization needs to be adjusted to match the implementation of the strategy, such as increasing the technical support department, data collection and processing departments, while adjusting the original sales department, management planning, that is, organizational changes will inevitably require management changes, the company's management must adapt to network marketing needs. Network Marketing after planning implementation: First, should pay attention to control, to assess whether the strategic competitive advantage, to assess whether there is room for improvement; Secondly, it is necessary to identify and improve the implementation of the planning problems in time.
7, Network Marketing economics principle analysis
Supply and demand: in the network marketing, supply growth, price decline, resulting in demand growth, supply reduction, price increases, resulting in reduced demand; For example, when supply increases, manufacturers ' costs fall rapidly and prices drop rapidly, which leads to rising demand. Marginal utility: In Network marketing, the more consumers eat, the more appetite. For example, once users of Microsoft use the company's products, they are unwilling to learn to use other systems, and continue to purchase the new version of the original system, and their products are more and more dependent on the increase in the law of marginal utility. Scale compensation: In Network Marketing, the increasing law of scale returns the function, that is, with the enlargement of the enterprise scale, the average cost appears to decrease continuously. Unemployment: The network economy theory involved in network marketing can raise labor productivity, Prosper economy, create new industries and add new employment opportunities, and can achieve high economic growth, low unemployment rate and low inflation. Learning: In network marketing is to make information value-added an economic model. Value added can generate more information, and more information can add value. This constant cycle of special information gathering process is called learning. In the fields of communication, computer and so on, economies of scale can be transformed into quality.
In short, the network marketing theory is different from the traditional marketing theory of the new marketing model, it can control costs, market development and maintain relations with customers have a great competitive advantage. But the implementation of network marketing is not a certain technical aspects, a certain website construction problems, it also involves the entire marketing strategy direction, marketing department management and Planning, as well as marketing strategy formulation and implementation aspects.
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