Relate Internet marketing strategy to marketing Identify...
Transcript of Relate Internet marketing strategy to marketing Identify...
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Relate Internet marketing strategy to marketing Relate Internet marketing strategy to marketing
and business strategy
Identify opportunities and threats arising from
the Internet
Evaluate alternative strategic approaches to the
Internet.
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What approaches can be used to develop What approaches can be used to develop
Internet marketing strategy?
How does Internet marketing strategy relate to
other strategy development?
What are the key strategic options for Internet
marketing?
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What is strategy?
‘Defines how we will meet our objectives’
‘Sets allocation of resources to meet goals’
‘Selects preferred strategic options to compete within a
market’
‘Provides a long-term plan for the development of the
organisation’
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Missed opportunities for additional sales on Missed opportunities for additional sales on the sell-side and more efficient purchasing on the buy-sideFall behind competitors in delivering online services – may become difficult to catch up, e g Tesco Delle.g. Tesco, DellPoor customer experience from poorly integrated channelsintegrated channels
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‘The key question is not whether to deployy q p yInternet technology – companies have no choiceif they want to stay competitive – but how to deploy it.’
Porter, M. (2001) Strategy and the Internet, Harvard Business Review, March 2001, 62–78., ,
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Internal and external influences on Internet marketing strategy
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The capability to innovate and so gain The capability to innovate and so gain competitive advantage within a market place by monitoring changes within an
i i ’ k l d h organization’s marketplace and then to efficiently evaluate alternative strategies and then select, review and implement and then select, review and implement appropriate candidate strategies
Chaffey et al (2008)
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Situation analysis related to customers is very important to setting realistic objectives estimates important to setting realistic objectives estimates for online customers and developing appropriate propositions for customers online.
e-marketing managers need to assess the level of t I t t d ti it f diff t customer Internet access and activity for different
markets and the online market share that a particular organisation has achieved.particular organisation has achieved.
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For each customer segment and for each digital channel such as Internet, interactive digital TV or mobile we need to work to assess the vol me and mobile we need to work to assess the volume and share of customers who:
1 Have access to the digital channel;2 Are influenced by using the digital channel but 2 Are influenced by using the digital channel but purchase using another channel as part of the multi-channel buyer behaviour;3 Purchase using the digital channel.
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Internet AccessInternet Accesswww.internetworldstats.com, www.clickz.com
Consumers influenced by using the online channel
Purchased OnlineES Test by De Kare Sliver (2000)Customer Characteristics
Internet Usage pdfInternet Usage.pdf
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Grid of product suitability against market adoption for transactional e-commerce (online purchases)
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Product characteristics. Does the product Product characteristics. Does the product need to be physically tried, or touched before it is bought? 2.Familiarity and confidence. Considers the degree the consumer recognizes and trusts the product and brandthe product and brand.3.Consumer attributes. These shape the buyer’s behaviour –are they amenable to buyer s behaviour are they amenable to online purchases in terms of access to the technology skills available and do they no l i h t h f d t i longer wish to shop for a product in a traditional retail environment?
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Achieve 10 per cent online revenue contribution within two years;
Achieve first or second position in category penetration in the countries within which we
operate (this is effectively online market share and can be measured through visitor
rankings such as Hitwise or better by online revenue share;
Cost reduction of 10 per cent in marketing communications within two years;
Increase retention of customers by 10 per cent;
Increase by 20 per cent within one year the number of sales arising from a certain Increase by 20 per cent within one year the number of sales arising from a certain
target market, e.g. 18–25-year-olds;
Create value-added customer services not available currently;
Improve customer service by providing a response to a query within two hours, 24
hours per day, seven days a week;
All other objectives to be achieved profitably giving a return on investment in a three
year period.
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1 Web presence 2 E commerce 3 Integrated 4 E b siness1. Web presence 2. E-commerce 3. Integratede-commerce
4. E-business
Services available Brochureware or interaction with product catalogues and
Transactional e-commerce on buy-side or sell-side
Buy and sell-side integrated with ERP or
Full integration between all internalwith product catalogues and
customer serviceon buy side or sell side. Systems often not integrated
integrated with ERP or legacy systems. Personalisation of services
all internal organisational processes and elements of the value network
Organizational scope Departments acting independently, e.g. marketing department, IS department
Co-ordination through steering committee ore-commerce manager
Cross-organisational Across the enterprise and beyond (extraprise)
Transformation Technological infrastructure Technology and new responsibilities identified for e-commerce
Internal business processes and company structure
Change to e-business culture, linking of business processes with partnersp
Strategy Limited Sell-side e-commerce strategy, not well integrated with business strategy
E-commerce strategy integrated with business strategy using a value chain
E-business strategy incorporated as part of business strategy
strategy a value-chain approach
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Strategic options for a company in relation to the importance of the Internet as a channel
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E Shop E Procurement
E MallE A tiE AuctionsVirtual CommunitiesCollaboration PlatformsCollaboration PlatformsThird Party MarketplacesValue Chain IntegratorsValue Chain IntegratorsValue Chain Service ProvidersInformation BroakerageInformation BroakerageTrust and other Services
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www.wiley.com/go/ebusiness27
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•Subscription access to contentSubscription access to content•Pay Per View content access•CPM Display advertisingp y g•CPC advertising on site•Sponsorship of sections, content or widgetsp p , g•Affiliate revenue (CPA or CPC)•Subscriber data for e-mail marketing•Access to customers for research purposes
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Stages in target marketing strategy development
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‘First identify customer needs and define a distinctive value proposition that will meet them, at a profit. The value proposition must then be delivered through the right product and service and the right channels and it must and service and the right channels and it must be communicated consistently. The ultimate aim is to build a strong, long-lasting brand that delivers value to the company marketing it.’
Varianini and Vaturi (2000)
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A clear differentiation of the proposition A clear differentiation of the proposition from competitors based on product features or service quality
•Target market segment(s) that the iti ill l tproposition will appeal to
How the proposition will be communicated •How the proposition will be communicated to site visitors and in all marketing communications. Developing a tag line can p g ghelp this
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How the proposition is delivered across different parts of the buying process
•How the proposition will be delivered and supported by resources –is the proposition genuine? Will resources be internal or external? external?
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•‘Compare Buy Save’ Kelkoo (www kelkoo com)• Compare. Buy. Save . Kelkoo (www.kelkoo.com)
•‘Earth’s biggest selection’. Amazon (www.amazon.com)
•‘Search the largest inventory of cars and trucks on the Internet. More than 1.5 million listings updated daily’ ( d )listings, updated daily’ (www.autotrader.com)
•The Citibank site design (www.citibank.com) uses a range of techniques to illustrate its core a range of techniques to illustrate its core proposition and OVP. The main messages are–Welcome to Citibank: The one-stop solution pfor all your financial needs–Look for a product or service; Learn about a fi i l d t Fi d l tifinancial product; Find a location
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Deise et al (2000) and Chaston (2000) suggest Deise et al (2000) and Chaston (2000) suggest four positioning options:
Product performance excellencePrice performanceTransactional ExcellenceRelationship ExcellenceRelationship Excellence
These positioning options have much in common with Porter’s generic competitive common with Porter s generic competitive strategies of cost leadership and differentiation
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However unlike Porter’s belief, Kim et al However unlike Porter s belief, Kim et al (2004) concluded that for online businesses ‘integrated strategies that combine elements f l d hi d diff i i ill of cost leadership and differentiation will
outperform cost leadership or differentiation strategies’strategies
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Autotrader site (www.autotrader.co.uk) clearly communicates its proposition
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BA ‘Have you clicked yet?’ campaign web site
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