Essay: Online Marketing
A significant trend in the Saudi Arabian market is the increase in businesses which offer their products online. The Saudi Internet users represent a large and growing market and it makes good business sense for businesses to make attempts to tap that growing market.
The Internet users represent an important rising sector of the Saudi economy; many Internet users are media and technology savvy individuals who like to commit extensive research before committing to purchasing products or services. E-commerce is also important to them because it reduces the cost of searching for a suitable product or service provider.
E-commerce is a trend emerging worldwide in recent years. According to some researchers e-commerce is contributing to the ‘flattening of the world’, i.e. it is one of the means of levelling the playing field between rich and poor countries and large corporations with a lot of wealth and resources and small businesses with limited resources (Friedman, 2005). Some web retailers have managed to gain enormous success in their business through brand focusing, delivering quality products and services, providing efficient customer service and information about their products. One of the great advantages of e-commerce, especially to retailers is that they are not restricted by the physical constraints that effect the growth of traditional retail stores and nor are their sales dependent upon local marketing efforts (Gurley, 1998).
In addition, another important benefit to businesses from e-commerce is that they do not have to invest so much in business infrastructure such as having offices and shops and people can run their business out of their own houses, this enables people to start their businesses without too much starting capital and helps large companies save on costs.