Ethical, Legal, And Regulatory Issues Differ On A B2c Site Compared To A B2b Site

Web Site Marketing

The ability to effectively develop an appropriate marketing mix and convey the desired marketing message is an essential element in any successful business strategy. The ability of the Internet to reach new markets requires the creative use of marketing strategies as a means of gaining a competitive edge in the marketplace while developing loyal, satisfied customers and achieving long term growth.

This paper evaluates marketing strategies used by the websites of three major domestic retailers (Wal-Mart, Best Buy, and Tiger Direct) with specific emphasis on the customer service provided by each site. It first identifies the marketing tools used by each website, and then describes the evaluation tool and the essential customer service characteristics developed by Learning Team C (LTC) to assess each site. Using the chosen evaluation criteria, the paper then evaluates each site for customer service, then compares and contrasts each website in terms of marketing tools used and customer service provided. The paper then identifies the best website based on the evaluation criteria with an analysis of the marketing tools used and the website's approach to customer service. Based on this analysis, LTC offers recommendations for improvements to both marketing and customer service for each website. The paper then concludes with a summary of LTC's observations.

Marketing Strategy and Tools

In terms of marketing strategy, Best Buy and Tiger Direct use product-based and customer-based marketing strategies, the latter to a much lesser degree, to establish Web presence (Schneider, 2004, pp. 156-159). Both retailers' commercial Web site home pages are organized in typical product-based fashion, listing the various product categories one would expect to see for a traditional business-to-consumer site design. However, they also provide links for the various business-to-business customer segments they serve, including business/corporate, education, and government customers, to use for ordering business related products and account management. For their part, Wal-Mart uses a product-based marketing strategy and Web site consistent with the various product segments sold at the firm's brick and mortar store outlets.

In addition, the three retailers use "affiliate marketing" (Schneider, 2004, p. 188) as brand leveraging and revenue generation strategies. Using this marketing approach will further establish each retailer's footprint on the Web as merchants having a diverse product mix available to meet customers' needs. For each site, banners for affiliates open to Web pages showcase the affiliate's products within a dedicated, full screen window of the retailers Web site. For example, Tiger Direct's site enables consumers interested in purchasing AMD and ATI products, two well established technology brands, to explore various product offerings from these suppliers sold by Tiger Direct. Wal-Mart and Best Buy use TV and Radio advertising as part of their "emotional branding strategy" (Schneider, 2004, p. 186), while all three retailers supplement their Internet marketing strategies with print catalogs pointing potential customers to the respective Web sites.

Wal-Mart and Tiger Direct use "viral marketing" (Schneider, 2004, p. 191) to build customer awareness through a virtual equivalent of word-of-mouth communication. Wal-Mart gives site visitors the opportunity to join Working Families for Wal-Mart, a group whose charter members spread word about how Wal-Mart helps working families. This user group enables Wal-mart to engage in "cause marketing" (Schneider, 2004, p. 189), which at this point of Wal-mart's maturity cycle is needed to supplement the firm's public relations strategy. To an outside observer, these two strategies appear to be part of an integrated marketing and communications plan using the Internet and TV to combat the constant stream of bad press leveled at Wal-Mart. Tiger Direct prominently displays customer testimonials on the Web site that provide customer third-party endorsements.

Furthermore, each retailer uses "e-mail marketing" (Schneider, 2004, p. 182) as way to communicate with users to promote products, inform customer of new deals and discount programs, new affiliate product offerings and to disseminate company specific newsletters and event calendars to consumers. Wal-Mart and Tiger Direct use an "opt-in" (Schneider, 2004, p. 182) approach that gives consumers power to control personal information usage. To their credit, both firms make it abundantly clear that they will under no circumstances share or sell user information except in the course of executing transaction related activities, such as sharing delivery information with sanctioned couriers. Best Buy uses an "opt-out" (Schneider, 2004, p. 182) approach that is clearly explained in a posted privacy policy.

Customer Service Evaluation Tool

As demonstrated in the below table, LTC performed an analysis on the ability of a customer to easily find (within one click) key customer service information about accounts, purchases and other key client concerns. As in the previous research done by the team on ease of use, Best Buy was the clear leader in customer service functionality. Wal-Mart placed second with some stand alone functionality and Tiger Direct placed third. LTC used 17 functions as the criteria for analysis and Best Buy covered 16 with one click simplicity. Wal-Mart satisfied 8 of the 17 functions and Tiger Direct satisfied 7 functions. Being able to find key information about a purchase, when it will ship and arrive at the consumer's home is an important part of an online purchase. This information needs to be easily found by a customer.

Customer Service Evaluation Tool Best Buy Wal-Mart Tiger Direct

Function One click access to function

Account information   

Order status 

Order tracking   

Returns  

Product availability 

Rebate information  

Contact information   

Store pickup 

Warrantee & Repair 

Installation