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The limitation of emarketing marketing essay

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Take Saks Fifth Avenue as an example, it invited people to go into their shop and take photos about the thing which they find in the shop, they cannot live without, the winner of this campaign can win $1, 000. This company use Instagram as a platform to spread this message out of crowd, it also use the participators to help that company to do promotions because people who take part in this campaign needs to go into their shop and find a product that they cannot live without and photo that product and post it on their Instagram pages. Firstly, you need to be fans of that company so that you post your photo on Instagram and the company knows that you have participated. Secondly, this campaign can increase the visiting of the shop or even more sales. Thirdly, when you post photos on your Instagram at the meanwhile, you are sharing something to your friends or people who follow you. Moreover, sometimes when you post something on your Instagram, it can also post something on your twitter and Facebook simultaneously. On the other hand, the company only needs to pay $1, 000 in order to get access to your social networks. If the company uses traditional marketing strategy, it may need to pay double or triple price in order to get a few seconds of advertisement on TV, but the result is not that big. If you think deeply, the company has a slightly chance to earn back the cost within a few months because participators think that they cannot live without that product, that means they require to have that product in their life, it may encourage their wants so they may spend money on that company so the firm can earn more than the cost.

Moreover, if companies organize a lucky draw in Facebook, it may require people to give some personal information to them in order to maintain that activity. Through that lucky draw, the company may need to give out a few products but the company can gain attention from public and collect people personal information to be used in the future.

Furthermore, Starbucks organized a campaign on Instagram which encourage people to share their favorite drinks of Starbucks through Instagram and tag Starbucks. Through this campaign, Starbucks gained a lot not only revenues from drinks which people bought and photo it on Instagram but also many advertisements spread among social network due to the fact that when you share your photo on Instagram, you are sharing photo to friends you have on Facebook and twitter which makes you share one photo on multiple channels. Moreover, if one of your friends likes your photo on Facebook, he will also help you to spread your photo to his Facebook with his friends. If this happens continuously, Starbucks will gain attention of their products all over the world. In addition, people who follow Starbuck on Instagram can get large information of products which supplied by Starbucks and Starbucks sells their product by view of third party which is more persuasive.

In addition, viral marketing includes tag tool. Nowadays many companies have set up their own Facebook pages which allow them to have many followers. When they want to sell a new product or service, they will tag people who follow their Facebook page to announce the new coming product.

Before pop up of e-marketing, people used to sell their product by goodwill and spread by connecting others. Compared with viral marketing, this strategy is low efficient and takes times. Traditional marketing cannot allow people update information immediately, it transports message to customers in a slow way compared with viral marketing which spread like a virus.

Affiliate Marketing

Affiliate Marketing is one kind of marketing strategy which is popular recently; it works out by using the power of join force. Company finds different industries’ companies as partners to promote its own products on their website, at the same time company helps its partners to promote and advertise their products. Except promote its own company’s products on multiple websites, company also can gain revenue for successful selling its partners’ products. On the other hand, company also needs to pay partners for transaction of its own products. In order to be successful in affiliate marketing, there are four elements. Firstly, the retailer is used for sales of products. Secondly, the network, which uses to enhance exposure of company products, is essential because it is a platform for company and its partners to share their products with each other and use their network to sell its own product. Thirdly, partners are more important in this marketing because the key term is the joining force. Fourthly, customers are necessary because the end of marketing strategy is to sell more products to more customers.

Advantages of that marketing strategy are lower cost of marketing, increase the volume of company’s website, this marketing strategy also providing extra revenue for company. Affiliate marketing is lower cost of marketing because it charges either cost per sales, cost per click or cost per lead. For cost per sales, company will be charge to pay its advertisement according to sales volumes made by its partners; it will ensure that company only need to pay when company earns money. Additional, cost per click means as long as advertisement click by customers and review, company will need to pay for its exposure. Moreover, cost per lead is a way that company will pay when partners successfully to link customers to advertisement of company and fill their information. Either of way, the cost is lower than usual marketing strategy however, the outcome of affiliate marketing is better than traditional marketing because people can buy companies/ its partners’ product in multiple places, also company may has its chance to work with big company as its partners to boost up its sales.

I would like to use Amazon as an example to illustrate affiliate marketing strategy which it quite successful in Amazon. Amazon began as an e-tailor bookstore. However, after a period of time, Amazon started to use affiliate marketing strategy. Nowadays people want to shop, the first thing comes up their mind is Amazon. Due to fact of many affiliates in Amazon, Amazon can sell variety type of products to satisfy customers’ needs. Meanwhile, Amazon can earn a huge amount of profit from this affiliate to support its operation. Why people choose Amazon is the key reason why Amazon’s affiliate marketing strategy becomes successful. Amazon is a well-known brand which is the first requirement. And Amazon is a well-known brand also helps to people to feel safe with clicking on Amazons link which lead to lesser-known company. Moreover, Amazon only takes maximum 30% as its commission which is ridiculously small. This action can allow people to earn more.

Proximity Marketing (Mobile Marketing)

Proximity marketing is the localized wireless distribution of advertising content associated with a particular place. Transmissions can be received by individuals in that location who wish to receive them and have the necessary equipment to do so. The reason why mobile marketing has become the trend of marketing is based on the fact of fast development of smart phone. Nowadays almost everyone in developed countries has a smart phone with them typically Hong Kong. People will no longer use PC to connect to internet; they can use their smart phone which allows them to check email, Facebook easier than before. This change , also rewrite marketing history, it opens more ways to company in order to promote their products to customers, allows people to receive information no matter why they are as long as they have a smart phone with them. Within mobile marketing, people use two main functions of smart phone as a way to promote their products, those functions are texting and Wi-Fi.

Texting can be used as a marketing strategy is because there are 10 trillion messages sent globally per day in 2012, can u imagine how often people text? According to this fact, people use texting as a way to promote their product. Did you give your mobile phone number to any shop when you become a member of shop? If yes, I guess you already have experience of getting marketing text which contents the latest news/ promotion of that shop. However, did you realize how quickly you response to text rather than e-mail? According to statistics, 97% of people will response to text within a few minutes, that response rate is 7 to 15 times quicker than email. And that is part of the reason why companies are likely to use text marketing instead of email marketing anymore. Take Netpunch company as an example, it is a company which sells mobile marketing to others. It put a video online on YouTube and tell people how good mobile marketing it is and if people is interested, please send it a text (Netpunch) to the number it provide at the end on the video then the company will inform you more information through text. How convince this way to communicate to your clients? Communicate through text and lowering cost of employees because you don’t need somebody to ask the phone call, you just reply people’s text and give more information about things that they are interested. Also, by different text content you can category different needs of people. If you company has ten different types of products by typing different content in text, you can able to identify them and reply information they want to know. Text marketing happens based on customers want to receive more information about your company, through this way, marketing becomes more effective. Also, did you even forward your message received from one company to your friends? When you saw message, you find the discount given by that company is cheap, you may want to forward to your friends so they can enjoy that discount too. In this way, message spreads no only between you and company but also between your friends, company can gain more revenue through spreading process. Compared with advertisement cost, text marketing which is a lower cost and more effective and efficient. Moreover, text marketing also helps to build a two-way communication between company and client. Furthermore, it is easy to track result of that campaign such as A company is offering discount to its customers by sending them some codes when customers come into A company and use their codes. A company is able to identify the result of campaign through codes use by customers.

Wi-Fi becomes more and more essential when we use smart phone more frequently.

Therefore, people think of ways to promote their product through Wi-Fi system which has in every smart phone. In order to advertise people, company needs to put a system in a public and crowd place such as mall, bus stop etc. Through putting a system in mall, it can identify people by their own smartphone, once they step into mall, the system will send a message to ask whether they want to accept information from the mall, if yes, the system will automatically send them different promotions within the mall. This situation also applies in bus stop when people are waiting bus, they can receive information from companies of selling their product. Compared with bus stop, the way to promote advertisement in mall will be more effective because when people go to mall, they may want to shop for something, that’s why people will 100% open and accept to receive information from the mall. This strategy helps companies generate more sales.

Limitation of e-marketing:

Although there are lots of advantages of using e-marketing, there are still some limitations. We would like to divide that into two big categories which are technology and non-technology.

In technology part, lack of sufficient system’s security, reliability, standards, and communication protocols, insufficient telecommunication bandwidth, maintenance costs due to a constantly evolving environments and low connection speed are essential to success of e-marketing.

Lack of sufficient system’s security, reliability, standards, and communication protocols will leads to failure of e-marketing because the infrastructure of communication with customers is incomplete. Due to incomplete infrastructure, companies may not be able to respond to customers in time. This act will make company lose some of its customers.

Insufficient telecommunication bandwidth affects the way companies and customers communicate to each other. In order to communicate within the internet, sufficient bandwidth is essential; it affects success of internet marketing. How can you see and spread your message within Facebook without bandwidth? Sufficient bandwidth allows people spread message between others become more effective and efficient.

Due to software development tools are still evolving and changing rapidly, maintenance costs may be high in order to keep up with new development of technology. This will make small company step back about using e-marketing because this may be costly to small firm in order to hold an IT team to promote their product online.

Companies have low connection speed may lose its customers because some companies use Wi-Fi marketing require a high respond rate to customers, if they fail to do this, they may lose their chance to promote their products to customers. Also, low connection speed may affect the availability people receive information from outsiders. Typically affect mobile marketing because mobile marketing becomes more and more important due to people use mobile to surf the Internet rather than a PC. However, if the connection speed of mobile is so low, it takes 15minutes to get people on Facebook, people may not willing to wait for the time, they may use their PC instead of mobile, it not just only affect mobile marketing but also viral marketing, the speed that message spread between people getting longer, the result of companies will be affected.

So far, we discuss limitation of e-marketing on technological way; we would like to continue discuss it on non-technological way which includes lack of personal approach, data may not be updated, content security and privacy issues and physical examination issue.

Lack of personal approach will be a major damage to e-marketing, customers may not be able to build up a relationship between customers and companies. Not loyalty to companies will be lead companies lose customers in a sudden. Unlike traditional marketing, salesperson may able to know the name of customer and chat with them face-to-face, e-marketing such as text marketing is just texting between customer and companies, which involves less interaction.

Data may not be updated may occur in e-marketing. Small companies may be the largest group that use e-marketing as promoting their product however small companies may have insufficient employees to update their companies’ Facebook or websites in time. In consequence, companies’ Facebook or websites are not updated. It may affect the revenue of companies because their new product may not sell well and lose potential customers.

Content security and privacy issues also occur when involve in Internet because there is no guarantee that your information will not leak to outsiders. When companies uses Wi-Fi marketing, they may accidently receive many information about customers’ personal information how to deal with those information is troublesome. The content of text may lead companies to know more about their customers such as their needs and interest or personal information, on the other hand inappropriate deal with those information may lead companies lose huge amount of customers and maybe lawsuit due to leaking information.

Unlike traditional marketing, e-marketing does not allow customers to have physical examination on product which is a disadvantage to e-marketing especially when companies are selling food products. Companies may sell their products online however without testing and experiencing by customers themselves, customers may not want to buy it. If companies tell you that its new product A is very tasty, without tasting it are you going to believe it? It may become difficult without tasting; this is a weakness for e-marketing.


Outsourcing would be useful to solve data updated and maintenance costs limitation. When companies hire other companies to do their marketing strategy, it can help companies to avoid information of website or Facebook is not update issue. Also, companies don’t need to pay a huge amount of maintenance costs because company only need to pay to other companies to help them with maintenance issues.

Moreover, companies can send out samples to customers to solve physical examine issue. E-marketing only promote products online without real face-to-face connect and product experience, it leads to less attractive. However, if companies send out some sample to potential customers, they can attract customers after using their products.

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