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Marketing Strategies

of Online Seller
Philsian Ade Dwikarna

Nichole Romero

Cherrylin Isaran

Samantha Glenish Berjamin

Marian Alcazar

Jessa Ann Bolina

Jude Barrogo

Janna Balsomo

Christine Leilani Delay

Jennifer Cortes
Chapter I

INTRODUCTION

Background of the Study


Businesses is one of the tools that keeps our society
balanced. It is where the society depends in terms of distribution of
goods and services that are necessary to our daily living (Kenton,
2022). We are emerged in different type of businesses as of today’s
living. One of the businesses that succeed is the E-commerce. Some
of the challenges faced by the online sellers are the cancellations of
orders, “bogus” buyers and return of purchases. Receiving negative
feedbacks and reviews are also a disadvantage if you are an online
seller, it can decrease the amounts of sales on your online business.

According to Pamela Faith Violango (March 2022) Online


selling or E-commerce had been in trend in this generation that
greatly affects the satisfaction of consumers. There are influencing
factors in order to measure the consumer satisfaction, such as the
pricing, the quality of products, security, availability, discount,
shipping, and the accessibility of information. According to
Svonavec (September, 2017), online shopping has proved to have
many positive advantages for consumers. Online stores are open 24
hours a day, so the issue of a store closing before the consumer can
make it on time exceptionally efficient during the holidays; shoppers
do not have to bother with the long, exasperating lines. Due to lack
of operating costs, online retailers can sell goods at lower prices so
that this makes the experience of online shopping not only faster and
convenient, but it is also for cheaper than going to the physical store.
Although online shopping has advantages, there are many
downsides to doing online business. Backs order goods can be
proven to be exceeding trying for shoppers, especially during the
holidays, shoppers also lose the person to person communication
that online retailer cannot provide.

The purpose of this study is to determine the marketing


strategies of online sellers of Pontevedra, Capiz in terms of
increasing the number of sales and to meet the expectations of their
customers.

Statement of the Problem

Generally, this study will be conducted to determine the


marketing strategies of online sellers
Specifically, this study seeks to answer the following
questions:

1. What is the socio-demographic profile of the respondent in terms


of:

Age:
B. Educational attainment:
C. Monthly Income:

2.What are the marketing strategies the online sellers developed in


terms of:
A. Marketing objectives;
B. Strategic focus;
C. Market targeting;
D. Quality positioning;
E. Price positioning;

Theoretical Framework
This study is anchored on “Customer Satisfaction” theory by
Zeithaml and Bitner (2003), he stated that “satisfaction is the consumer
fulfillment response. It is a judgement that a product or service feature, or
the product of service itself, provides a pleasurable level of consumption-
related fulfillment.” Zeithaml and Bitner’s emphasis is thus on obtaining a
certain satisfaction in relation to purchasing. Performance that is below
expectations leads to a dissatisfied customer, while performance that
satisfies expectations produces satisfied customers (Kotler & Keller, 2003).

As applied to our study, this theory holds that we would expect our
independent variable which is marketing strategies to measure the
effectivity of these strategies to its dependent variable which is online
sellers on how their customers are satisfied with their product or services
through giving feedback. In that way, online sellers could identify and
implement more marketing strategies in order to generate income as well as
to satisfy the customer’s expectation.

Scope and Limitation


The coverage of this study aims to determine the marketing
strategies of online sellers. The data collection will be conducted on
teenagers and middle-aged online sellers aged 18 up to 40 years old in
Pontevedra, Capiz. And those online sellers which did not meet the age
requirement are not within the scope of this study. Furthermore, a checklist
will be used as a tool for data gathering.

Significance of the study


This study is conducted to benefit the following;

Online sellers. The result of this study will help online sellers to
improve and implement their strategies.
Businesses. The result of this study will further determine the
importance of marketing strategies for a business.

Customers. The result of this study will help to fill the customer’s
needs.

Definition of terms
For better clarification and understanding of the terms related to
this study, the following are defined conceptually and operationally.

Marketing Strategy. A plan of action designed to promote and sell a


product or service. (Oxford Dictionary)

In this study, marketing strategy is used as a method to excel the profit


of online seller.

E-Commerce. A commerce conducted via Internet. (Merriam-Webster


Dictionary)

In this study, it is used to provide services through online transactions.

Customers. One that purchases a commodity or service. (Merriam-


Webster Dictionary)

In this study, customer is used as a consumer.


Online Seller. Somebody who uses digital means to sell their products,
goods or services to buyers locally or internationally. (Merriam-webster
Dictionary)

In this study, online sellers is used as online supplier.

Online Shopping. the action or activity of buying goods or services via


the internet. (Oxford Dictionary)
In this study, online shopping is used as a way to purchase a product or
services through online transaction.

Chapter II

Conceptual Literature
Marketing Strategy

“Marketing strategy is an organization’s integrated pattern of


decisions that specify its crucial choices concerning products, markets,
marketing activities and marketing resources in the creation,
communication and/or delivery of products that offer value to customers in
exchanges with the organization and thereby enables the organization to
achieve specific objectives (Varadarajan 2010, p. 119) From this
perspective, marketing strategy formulation involves managers making
explicit “what” decisions regarding goals and the broad means by which
they are to be accomplished in terms of target market selection, required
value offerings and desired positioning, timing, etc. (e.g., Kerin et al. 1990;
Slater & Olson 2001).

Online Selling

According to Definitions (www.definitions.net) Online selling is the act


or process of selling goods, products or services via an internet or mobile
app, auction site, online classified advertisement, online shop, social
networking, social media or web shop. Online selling is the best way to start
your business with zero to low capital. You get to sell your products without
a physical store, that means lesser expenses. No monthly rent, monthly
utility bills, and other expenses in opening a physical store. Sometimes you
don’t even have to buy your products yet unless a buyer has confirmed to
buy that specific product you are selling (Charlyn June, 2018). Some of the
benefits an online business has is that it is low-cost but effective to draw
clients 24/7. Online marketing includes the use of digital and virtual
environments to advertise and offer products and services. (Kim Edward S.
Santos, 2020) The well-known advantages of digital platforms (low cost,
ubiquity, rapid dissemination, etc.) have created economic liquification and
have taken the notion of sidedness to the forefront of markets and platforms
(Hofacker & Belanche, 2016)

Related Studies
LOCAL STUDIES

Designing E-commerce Marketing Strategies


for the Online Retail Industry: The Influence
of Filipino Consumer Preference Towards
Online Shopping

The study of Abgelina et al., 2020 found out that due to the
COVID-19 pandemic, there is an evident increase of online retail sellers and
demand in e-commerce. To which, there is also an increasing number of
complaints in regards to price deception and false marketing that affected
the sales of online retailers. The researchers aimed to provide a solution by
recommending new marketing strategies. This study investigated which
among the factors: Customer Reviews, Customer Loyalty, Price,
Advertisement, Hedonic Motivation, Rewards, Customer Care, Gender,
Education Level, Income Group, and lastly Age Group would have a
significant effect on consumer’s online preference. A questionnaire with 51
questions was developed and disseminated through convenience sampling
method. 502 responses from Filipino online consumers were acquired and
the data was analyzed through Structural Equation Modeling using IBM
SPSS Statistics 24 and IBM SPSS Amos. Results showed that Customer
Reviews have the most significant effect on consumer’s online preference,
followed by Customer Loyalty, Price, Advertisement, and Hedonic
Motivation. Through the significant factors found and certain demographic
profiles that were relevant, marketing strategies were formed that catered on
what influenced online consumers
Findings of the study of Aque et al., (2021) The level of digital
marketing in terms of quality, pricing, and product variety the results of
descriptive level are high. The overall descriptive level of this indicators is
high. It implies that, the customers are satisfied with the pricing, quality and
product variety of the online sellers. The level of economic stability when it
comes to price stability and full employment are all high. It implies that,
online selling can affect the economic stability. There is a significant
difference between digital marketing and economic stability based on p-
value (p < 0.05). It implies that, the digital marketing and economic stability
has a distinction. There is significant relationship between digital marketing
and economic stability based on p-value of 0.000 which is lower than the
alpha coefficient 0.05. It implies that, the digital marketing and economic
stability was connected or related to each other.

FOREIGN STUDIES

Explore the use of Online Marketing


Strategies and Digital Media to Improve the
Brand Loyalty and Customer Retention
As a marketing tool, internet and digital media is a significant
strategic weapon which goes beyond borders and targets the specific
audience in accordance to the consumer needs. It is not dependent
on the location, area or region and free of all the temporal
restrictions. This study focused on identifying the impact of the
online internet and digital media marketing strategies in creating the
brand loyalty and retaining the existing and new customers. This
research was to explore the depth of internet and figure out the
possible outcomes and benefits of using internet and digital media as
a marketing tool. The study opted a primary quantitative method and
conducted a survey of 200 consumers and results affirmed that
internet is useful marketing tool which helps and assist the
companies to target specific and their targeted audience to promote
their brand or product and also retain their new and existing
consumers. The study has finally revealed that internet marketing
and digital media marketing facilitates the companies and brands to
increase their popularity and make loyal customers (Mohammed T.
Nuseir,2016)

Further, the usage of the internet-based technologies,


particularly social networking sites such as Facebook and Twitter as
business platforms can be a critical strategy in enhancing an online
retail outlet’s reach and operational efficiency. This study employs a
qualitative study with 20 in-depth interviews to explore the
factors/strategies that influence students’ acceptance of e-shopping.
The objectives of the study were to examine students’ perceptions of
e-shopping via the social media fan pages of Konga and Jumia
online stores and their perceptions about the difference in the
influence of the online marketing strategies on acceptance of e-
shopping between Konga and Jumia online stores. social networking
sites such as Facebook and Twitter as business platforms can be a
critical strategy in enhancing an online retail outlet’s reach and
operational efficiency. The most important motivating factor which
influenced the online shopping in Konga and Jumia online stores are
the marketing strategies that companies use and convenience
followed by time saving and price for consumers. (Marcos
Komodromos, 2018)

Synthesis

Marketing is an essential to any good business. It helps you reach


and connect with your target audience and ultimately is how you will grow
your business in the long run. In short, your marketing strategy will
highlight the path you’re taking to achieve your specific objectives and
goals. (Sherman, 2020)
A marketing strategy refers to a business’s  overall game plan for
reaching prospective consumers and turning them into customers of their
products or services. A marketing strategy contains the company’s value
proposition, key brand messaging, data on target customer demographics,
and other high-level elements. The ultimate goal of a marketing strategy is
to achieve and communicate a sustainable competitive advantage over rival
companies by understanding the needs and wants of its consumers.
Whether it’s a print ad design, mass customization, or a social media
campaign, a marketing asset can be judged based on how effectively it
communicates a company’s core value proposition. The four (4) P’s are
product, price, promotion, and place. These are the key factors that are
involved in the marketing of a good or service. The four P’s can be used
when planning a new business venture, evaluating an existing offer, or
trying to optimize sales with a target audience. It also can be used to test a
current marketing strategy on a new audience. (Barone, 2022)

Abgelina et al., (2020) and Aque et al., (2021) studied about the
designing E-commerce Marketing Strategies for the Online Retail Industry:
The Influence of Filipino Consumer Preference Towards Online Shopping.
Abgelina et al., (2020) found out that the that Customer Reviews have the
most significant effect on consumer’s online preference. Aque et al.,
(2021) also found that level of digital marketing in terms of quality,
pricing, and product variety the results of descriptive level are high. It
implies that, the customers are satisfied with the pricing, quality and
product variety of the online sellers.

Mohammed T. Nuseir, (2016) and Marcos Komodromos, (2018) studied


the use of Online Marketing Strategies and Digital Media to Improve the
Brand Loyalty and Customer Retention. Mohammed T. Nuseir, (2016)
found that internet is useful marketing tool which helps and assist the
companies to target specific and their targeted audience to promote their
brand or product and also retain their new and existing consumers.
Moreover, internet marketing and digital media marketing facilitates the
companies and brands to increase their popularity and make loyal
customers. Marcos Komodromos, (2018) also found that social
networking sites such as Facebook and Twitter as business platforms can
be a critical strategy in enhancing an online retail outlet’s reach and
operational efficiency. In addition, social networking sites such as
Facebook and Twitter as business platforms can be a critical strategy in
enhancing an online retail outlet’s reach and operational efficiency.

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