Case Analysis Of Ebay

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1. Definition of the marketing strategy

Grewal and Levy (2010: p32) state that ‘a marketing strategy identifies, (1) a company’s target market(s), (2) a related marketing mix - their four P’s and (3) the bases upon which the firm plans to build a sustainable competitive advantage’.
Kotler and Keller (2012: p 274) further explain that the marketing strategy is built on segmentation, targeting, and positioning (STP). And that a company determines diverse needs and groups in the marketplace, targets those it can fulfil greatly, and then positions its offerings and so the target market recognizes the company’s unique offerings and images. In exercising the marketing strategies described by aforementioned authors, eBay’ has become the most popular marketplace for online consumers, as explained in detailed below

1.1 Targeting, Segmentation and Positioning
1.1.1 Target Market eBay’s has a variety of target marketing as a result of a wide range of products available on their website. Items such as appliances, clothing, equipment and antiques are listed, bought and sold on a daily basis. eBay’s primary target market is recognized as online auction and shopping communities (Sambath and …show more content…

Therefore, promotions through adverts, on websites, blogs, and even social networks are done ordinarily to attract customer’s attention. Moreover, the Search Engine Optimization techniques, commonly known as SEO, is also used so that when a customer searches for a product online, the search engine first throws the name of eBay before everyone else. Another form of promotion is self-promotion by eBay (Bhasin, 2015). By reducing margins and offering discounts to customers and sellers, eBay is known to penetrate the market better and quicker and thus leave fewer margins for competition to

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