MKTG2032 / MKTG7037 E-Marketing

The Internet. Neither a truck nor a series of tubes

MKTG7037 / MKTG2032

E-marketingWeek 5

Course StructureWeek No Week beginning Topic(s)/Task(s)

1 19 February Chapter 3 Unique features of internet-based marketing

2 26 February Chapter 4 Consumer behaviour

3 5 March Chapter 5 Creating cybercommunities

4 12 March Chapter 6 Applications for business and non-business

5 19 March* Chapter 7 The internet in marketing strategy

6 26 March Chapter 8 The role of product in internet marketing

7 2 April Chapter 9 Promotion: the internet in the promotional mix

8 23 April Chapter 10 Promotion 2: the internet as a promotional medium

9 30 April Chapter 11 Pricing strategies

10 7 May Chapter 12 Distribution

11 14 May Chapter 13 Services marketing online

13 28 May Chapter 14 Relationship marketing

12 21 May Chapter 15 International marketing

Assessment Due Dates

Task Weighting Due• Essay Registration 01 March 16• Solo Assignment 20 March 26• Group-Optional Essay 29 May 21• Final Examination 30 June• Online Forum 20 During semester

Solo Assignment

• Due: March 26, Monday Week 6, no later than 7pm. – Electronic Upload via WebCT

• Topic: “Hype or Hope? The value of a new technology for marketing”– This assessment item is a solo paper where the student examines value

of a contemporary technology for marketing practice. The list of contemporary technology includes:

• RFID tags for marketing and marketing research• m-commerce, including m-gaming, m-gambling and m-shopping• MMORPG environments such as Second Life• social media marketing • online viral marketing

• You are expected to write between 1000 and 1500 words addressing the value of one of the five topic areas for marketing, using references to marketing theory, practice and internet theory.

• Full referencing is expected. Penalties apply for not using references.

Solo Assignment: The Finer Details

• Referencing– Any style is acceptable– Wikipedia is not going to

count as a reference (sure, you can still cite it, but you need MORE than wikipedia)

• Things that count– Blogs – Websites – Books– Other wikis– Journal articles– Trade articles

Solo Assignment II: Expectations

• 1000 to 1500– Don’t go over, don’t go under

• Addressing the value of the topic areas for marketing using references to – marketing theory, – practice and – internet theory.

• Needs to have a conclusion– Is your topic area hype or hope?

• Saying maybe won’t cut it this time. BE BIASED.

Stepping back a week or two

• That's happening because the team at Threadless understands that online communities don't create around the idea of being monetized, they create around a shared interest and passion. Online communities aren't simply waiting for you to find a way to make money off them. (Again if anyone needs a moment, feel free... .)

– http://www.mpdailyfix.com/2007/03/how_threadless_creates_online_1.html

Online Awesomeness.

• And believe it or not, they have a four-part plan for doing so:– 1 - Allow your content to be

created by the community.– 2 - Put your project in the

hands of the community.– 3 - Let your community

grow itself. • (This means NO

ADVERTISING. I'll pause while those of you that just fainted recollect yourself. Everyone good? Good.)

– 4 - Reward the community that makes your project possible. http://www.threadless.com/product/178/Pandamonium

MKTG2032 / MKTG7037 E-Marketing

The Internet. Neither a truck nor a series of tubes

The internet in marketing strategy

Managerial activities associated with marketing

• Researching the market• Developing market segmentation

strategies• Targeting key segments• Creating positioning strategies for the

product• Developing marketing mix • Conducting all the above to achieve

organisational goals

SMART concept

• Objectives need to address the SMART concept:– Specific– Measurable– Actionable– Realistic– Timetabled

• Ask the question: what is the company trying to achieve by going online?–

Common Internet objectives

• Common Internet strategic objectives can include:– Enhancing communications– Increasing online sales– Improving customer service– Increasing market share

Web site and marketing

• Valuable for conveying information• Cost-effective in reaching target markets• Effective in obtaining consumer action• Ineffective for long- and short-term

promotions• Not effective in grabbing attention• Less effective in relation to changing or

maintaining attitudes

Online marketing objectives

• Cost-oriented objectives• Sales-oriented objectives• Behavioural change objectives• Information dissemination objectives• Promotional objectives• Entertainment-oriented objectives

Porter’s generic model

Source: Viljoen, J. & Dann, S. 2003, Strategic Management: Planning and Implementing Successful Corporate Strategies, 5th edn, Addison-Wesley Longman, Sydney.

Strategic growth options

• Market penetration• Market development• Product development• Diversification

Strategic growth options (contd)

Source: Brassington, F. & Pettitt, S. 1997, Principles of Marketing, Pitman Publishing, Melbourne.

Segmentation

• Sarabia (1996) suggests that segmentation can be broken into four tasks, namely:– Describing the segments– Comparing the segment to the firm’s

requirements– Selecting the most interesting segment– Making the marketing mix decisions.

Information for online segmentation

• For online segmentation a marketer needs the following information:– Online usage patterns– Internet experience– Familiarity– Usefulness of the site– Technical characteristic

A four-stage analysis

• A four-stage analysis used to understand segmentation:– Study the segment.– Analyse the firm in relation to the segment.– Analyse the effects of the firm’s decision about

the segment.– Finally evaluate and construct an evaluation

matrix.

Positioning

• Positioning strategies are determined by aligning the company and the product offerings within the marketplace in relation to the other competitors and their products.

Positioning

• Generic positioning methods through:– Attributes and benefits– Price quality– Use or application– Product class– Product user– Competitor positioning– Cultural symbol positioning

Online branding

• Online branding begins with the domain name and the selection of a regional or global orientation.

• For example, Procter & Gamble (www.pg.com) owns a range of brand name-specific domain names for its primary products, such as Vicks (www.vicks.com) and Pringles (www.pringles.com)

Online branding

• Brands also play a major role in the reduction of perceived risk associated with shopping online.

• Also, branding web pages can be used to create, develop and maintain image associations with known (or soon-to-be-known) brands by careful site design and positioning.

Strategic integration

• Integration is where the marketing mix, positioning and strategic objectives are integrated into a single coherent outcome to be acted upon in the implementation.

• The role of strategic Internet marketing is to bring the whole package together online and to enable the marketing mix, the web site, and the company’s on- and offline objectives to integrate smoothly for maximum benefits.

Integration for virtual branding

• The AIPD model

Source: Simeon, R. 1999, ‘Evaluating domestic and international web site strategies’, Internet Research Electronic Networking Applications and Policy, vol. 9, no. 4, pp. 297–308.

Blueprinting

• Blueprint decisions are critical to overall organisational success.

• They may cut across several product lines or divisional boundaries.

• They frequently require the resolution of cross-functional conflict.

Budgeting

• Determining an Internet budget:– Last year’s budget + increases– Based on percentage of company’s sales– Percentage of overall marketing budget– Reallocation of existing marketing budget– Competitors’ budgets and activities– Needs and creating an effective online

presence– A graduated plan linked to results

Unlocking the Internet’s potential

• View the Internet as an adjunct.• Use email strategically.• Crosspollinate.• Provide extra value.• Analyse content and use.

Unlocking the Internet’s potential (contd)

• Repurpose material.• Design with online in mind.• Plan frequent revisions.• Manage for the long term.• Set reasonable goals.

Discussion Questions for the Board

• Explain the importance of integrating the activities of the web site and Internet marketing into the organisation’s overall marketing strategy and business activities

• Read "The Future is Collaborative".• Do you agree or disagree with the author's

position?  Give reasons and justifications for your position.