http://www.eBay.com became part of the World Wide Web in 1995 and has continued to maintain popularity and a competitive entity in terms of business and annual capitol. Today, eBay remains an innovative company of its time. As one of the most prevalent and known auction websites, eBay has out grown both small and large companies. To meet the demands of business, consumers, and keep up with marketing of online consumerism, eBay has made few changes to its marketing management. As such, the company remains an “unchallenged leader in the online auction industry”, (“ebay, 2004). EBay has continued to dominate the online auctioning industry both locally and internationally. To understand the growth of this multi-million dollar company one must understand marketing management and strategies used that transformed eBay into the industrious and inventive industry seen today.
The article, “eBay: A League of Its Own”, takes on a positive outlook of the company its self. This is proved through eBay’s impressive insight of marketing and management, their ability to adapt in the new millennium, and their impressive annual revenue. Thus, the article attests to the importance of marketing management and strategy. Understanding the steps taken by eBay to become the popular industry that it is today, others can see that small innovative steps can make a large difference in a company. The few small changes eBay made within its infrastructure made a large marketing impact overall. This brought revenue adding millions of thousands of dollars to the company. This increased eBay’s net profit dramatically.
Several marketing trends must be noted. These include social media, mobile marketing, and co-marketing. Other avenues are also popular including international marketing, online sales, and broadening inventory or consumer selections. However, these last avenues have remained unchanged trends for the past few decades. The marketing trends used by eBay have only recently become popular in the arena of marketing management. This only verifies eBay as a leading online industry of its kind. They utilize forward thinking and trends in today’s economy. Co-marketing demonstrates effectiveness in various ways as it boost customer returns. However, most importantly it helps in marketing cost and promotional partnership. EBay “evolved again to include its new fixed transactions and buy it now options”, (ebay, 2004). It also advertises for PayPal, a payment option that allows consumers to purchase items without releasing bank or credit card information. With this new marketing tool, eBay is able to join forces with other agencies and split marketing cost. This helps to boost sales all the while increasing advertisement.
Importantly, a lot is learned from this short article. Although eBay is the same company it was in 1995 and only few changes have occurred more than 20 years later. The article admits to all noted alterations. It includes expanding “its auctions to automobiles, boats, and real estate” (ebay, 2004). Also they added added PayPal as a payment option and fixed transactions. Although eBay took limited steps to increase its marketing management, those few steps produced large results allowing eBay to make a “82.6 annual growth rate” (“ebay: In a,” 2004). It demonstrates that companies do not have to make drastic changes in its infrastructure to create results. Quality of service is most important over the quantity of service provided.
Other authors have critiqued and analyzed eBay’s marketing management strategies in greater detail and addressed optional avenues taken. However, the end results are the same. eBay remains a strong competitor when it comes to online auctions and purchases. Despite other authors, positive, negative, or naysayers in general, the numbers generated from eBay tell the story. These profit margins cannot be manipulated, altered, or changed. eBay continues to monopolize the industry and adapt to the consumer as marketing trends shift towards a computerized and mobilized economy. What speaks volumes is eBay’s “2003 profit of $447.2 million” (ebay, 2004). These margins reflect the difference in times as the millennium is far behind us. The era has spawned a technologically advanced and internet based society. It strongly affects the market of consumerism where new paper advisement and billboard marketing is becoming a thing of the past. Online marketing also has dual relationships with one another. Such is the case with the “the acquisition of Half.com and the promotion of eBay” (ebay, 2004). Although many have analyzed and critiqued eBay as a whole, most have made positive reports about the website and services provided.
Marketing management scenarios are in place for future predictions. This allows a company to move forward and become innovative concerning the marketing management 25 to 50 years from now. To do this, marketing management must be forward thinkers, assuming all possibilities and outcomes of various scenarios. eBay has demonstrated this in various ways. eBay has continued to utilize marketing trends to stay ahead of the game by producing mobile applications on iPads and smartphones. Furthermore, eBay continues to do most of its promotion and advertisement through the internet as the use of computers and technology has continued to increase. eBay has also made attempts to make shopping and auctioning easier for the consumer as it has changed its theme from collectors to bargain hunters. This has allowed businesses to employ eBay. However, this is not limited to consumer to consumer purchases, but has transformed transactions to “business to business and business to consumer”, (ebay, 2004). In this way, eBay has become a “clearinghouse for agencies seeking to liquidate inventories and/or assets”. This carries major implications for eBay yet it reiterates eBay as a leading competitor in online sales. eBay is a strong, driven industry that was ahead of its time by maintains advances in modern technology and enterprises. They are not a force to be reckoned with but a force to learn from and work with as a companies of the future.
EBay has continued to take over the industry both locally and internationally. It has broadened its web base and has done more to encourage business from fortune 500 companies to participate, (ebay, 2004). The plight of this multi-million dollar company continues to dominate in terms of marketing management. EBay demonstrates quality, consumerism, and the importance of marketing. Remaining ahead of its time as an important force in the industry of marketing management, it proves that small changes can make a large impact on a website that has turned innovation and popularity into the multi-million dollar company that it is today.