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Impact Of Ecommerce On Vodafone Marketing Essay

E-Commerce in simple conditions can be explained as buying and selling of goods and services and transfer of money through digital communications. Electronic commerce online is a fresh way of executing business. Ecommerce or electronic commerce involves carrying out business online with the assistance of computers, which are linked to the other person forming a network. The amount and volume of trade that is conducted over such mediums has increased manifold through the years with the pass on and adoption of Internet. The growing range of Internet surfers, (estimated to become more than 1. 4 billion worldwide [1]) coupled with increased Internet Connection, has added to increase in spends for online budgets.

Vodafone is the world's leading international mobile telecommunications group with about 280 million proportionate customers by 30 September 2008 [2]. Vodafone has collateral passions in 27 countries across five continents and over 40 partner networks worldwide. Let's take a look at all the ecommerce activities done by Vodafone

Vodafone maintains and manages a UK web store for consumers; this ecommerce site is one of the very most visited websites in the UK and reliably deals with 1. 85 million unique trips per month [5]. This has been attained by optimizing both the front-end and back-end code to ensure that it operates easily under considerable weight. The website is under continuous development with promotional/sales changes made by using an on-going basis and produces of strategic advancements every 2-4 weeks.

Why is this Vodafone online store different?

It allows a amazing customer online experience;

It completely automates the buying and renewal of online subscriptions;

It is built on an extremely powerful infrastructure: ATG, an e-commerce solution utilized by the world's top brands.

Picking up the major benefits Vodafone benefits are:

Customer acquisition - increased variety of new customers;

Customer retention - due to the individualized customer experience;

Customer expansion - through practical, accessible mixture of services;

Cost-effectiveness - decreasing customer-related functional costs by integrating primary business systems.

Quoting from the news headlines article"M2 PRESSWIRE-16 May 2000-VODAFONE: Corporate customers enjoy benefits associated with e-commerce (C) 1994-2000 M2 Marketing communications LTD RDATE: 16052000 Vodafone today unveils Vodafone Corporate Online, the heart of a new e-commerce strategy for its commercial customers" [6]. Vodafone Corporate Online is a secure internet site (Extranet) that will initially enable corporate and business customers to buy goods or services on-line, demand installations, recoveries and review order position. Future e- services such as on-line charge examination, billing via email and digital bill viewing will follow later in the year. Graham Ward, Taking care of Director of Vodafone Corporate, said: "Were constantly striving to make life easier for our customers and our ground breaking e-commerce strategy takes on a significant role available" [6].

And also another ecommerce purchase of Vodafone is the fact, the profile is also super easy to control via the Vodafone web site. There is the option to change your price plan, top up, take care of your calling categories or even add extra services [7]. If you purchase just a sim card to put into an existing phone, you can send all the configurations for GPS, Text, and WAP etc via their website to upgrade your cellphone automatically without the need to spend age range doing manual input, or expending hours on the phone to an advisor.

Leading e-commerce industry makes it easy to get at to Vodafone customers. New mobile application ensures best customer experience on mobile. Vodafone is to own new eBay mobile service to customers, allowing them to keep up using their latest purchases, wherever they may be and every time they wish. The eBay program will be free to download on Vodafone live! or embedded on key customer Vodafone handsets. Starting in Italy initially, the new eBay mobile service will be available across Europe later this year [8]. The eBay mobile software, accessed immediately from the customer's handset, will include the ability to search and browse items, find bargains, bet on items and buy predetermined price products. The application will be embedded onto key consumer handsets from Vodafone in the foreseeable future. Customers with compatible handsets will also be in a position to download the application from Vodafone live! The application can help consumers keep tabs on their eBay activity instantly on their phone and can also ensure their mobile and web activity is synchronized.

"Even as we move closer to the convergence of web and mobile, it is essential that we can provide our customers, leading Internet based services, such as eBay, within an easy to get at way, "[8] said Frank H. R¶vekamp, Global Chief Marketing Official, Vodafone. "There's a strong demand from eBay users to benefit from a mobile program where they don't miss the end of auctions and bet back when they are simply outbid. Today's announcement offers that and gives Vodafone customers a great service and a clear advantage permitting them to make the most of their time" [8].

Vodafone's main regions of interest are [3]: give attention to the client including personal privacy, security and online security; minimizing environmental impact through network energy-saving, waste reduction and renewable travel and; using marketing communications technology to help customers reduce their carbon footprint; encouraging good triggers including World of Difference - a significant new volunteering program; employee proposal and advocacy; working with suppliers to improve and maintain benchmarks.

To reach and succeed on these hobbies the Vodafone began all above mentioned e-commerce strategies and far more such that it can enjoy many benefits, the impact it had on Vodafone are, Vodafone was have the ability to reach new market segments across traditional geographic boundaries and develop their customer base. Firm was able to provide cost-effective customer support with tools such as much Asked Questions, delivery-tracking technology or personal online customer accounts. It's succeed/win when e-commerce allows them to shift a lot of the 'burden' of service back again onto the customer. Stay available for business 24-hours. Vodafone customers can buy online while employees sleeping. And also probably preserved money on labor, materials and other overheads and reduce their inventory holdings.

Ecommerce allows Vodafone to handle businesses with no barriers of your energy or distance. You can log on to the Internet at any point of their time, be it day or evening and purchase or sell anything one desires at an individual click of the mouse. Essentially this allows them to provide their goods and services to both a global and local market 24 hours a day, 7 days a week, often with vastly reduced overheads which are associated with 'traditional' sales methods.

Operational benefits of ecommerce include reducing both time and personnel required to complete business processes, and reducing pressure on other resources. The strategic good thing about making Vodafone 'ecommerce enabled', is the fact that it helped decrease the delivery time, labor cost and the price incurred in the next areas:

Document preparation

Error recognition and correction


Mail preparation

Telephone calling

Data entry


Supervision expenses

According to research conducted by AC Nielson, in September 2006 5. 9 million Australians were shopping on the internet, making us the third-largest online spenders behind the UK and the united states [4]. Over 50 % of these online consumers (51 per cent) came back for much more and average shopper spending was up 19 percent to $1, 900 per annum [4].

Concluding the reality I've written above about the ecommerce techniques and strategies employed by the Vodafone and also the impact ecommerce experienced on Vodafone, I'd once again like to remind the visitors that ecommerce brings in more advantages weighed contrary to the negatives to the adaptor. The major the huge benefits what all firms are trying for are,

Increased knowing of products and services - Businesses is now able to greatly extend their markets using ecommerce, no need to constrain the concentrate to only the neighborhood scene, but by using the Internet, businesses can project into international and regional markets, with increased efficiency. This dynamically changes the nature and the marketing activities of some businesses, possibly motivating the business enterprise to develop the diversity of its products and services, to meet these new market segments. Websites, in their characteristics, allow hundreds and thousands of items to be on view 24/7; thus stimulating wider looking at, and expanded trading hours.

Freedom - Using the freedom of being in a position to post your details on the website, hence on the Internet, at any time of the day; available information of all modifications is increasing at an enormous rate. The independence to browse anywhere and interact with anyone is enough to tempt the smallest of businesses and the most introverted of men and women to can get on the web; hence Net users are increasing in volumes, at an alarming rate, roughly 50, 000 per day. Businesses are buzzing on the Net; they may have found a way to compete on an even field, with even the major of firms; and within the daily increasing customer market place. This is done only by ecommerce

Cost advantages -businesses based on ecommerce are extremely aware of how they may gain being on the Internet; they can advertise their products and services without the huge costs, and delays of printing, publishing and distribution. The market is a worldwide one, which contributes increased value to the costs outlaid for advertising and marketing; compared to the limits of offline. Ecommerce facilities can be contained into the website, transforming 2D display visuals into customer reactive models; for example, consumers can order their products and services online, greatly lowering administration expenses. Reduced amount of calls to potential prospects; follow ups by email; news letters digitally made, advertised by email or downloadable from the website, with reduction of syndication costs; less promotional materials sent out, imprinted and wasted; long trading hours without a human presence; are only a few ways to cut costs.

To reach their goals and strategies, striving through life of the business enterprise will not make any difference they should adjust ecommerce and feel advantages and the turn-up on the business at the earliest opportunity. This short article about Vodafone can be great exemplory case of how adapting ecommerce possessed made a direct effect on its business activities, customer foundation and a lot more.

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