Marketing Strategy in Internet Marketing by U42oJP7


									Marketing Strategy in Internet
What is Internet Marketing?
The previous definition can be divided into five
1. A Process;
2. Building and Maintaining Customer
3. Online;
4. Exchange; and
5. Satisfaction of Goals of Both Parties.
Seven Stages of Internet
     1. Setting Corporate and Business-Unit Strategy

            2. Framing the Market Opportunity

            3. Formulating the Market Strategy

           4. Designing the Customer Experience

            5. Designing the Marketing Program

            6. Crafting the Customer Interface

     7. Evaluating the Results of the Marketing Program
What is Marketing Strategy?
   Marketing strategy has three components:
    1.   Segmentation, or identifying relevant market
         segments with specific needs
    2.   Targeting, or choosing an attractive segment
         consistent with a firm’s resources and goals; and
    3.   Positioning, or strategically communicating the
         product’s benefits to the target segment. Example
   Initially an offline software retailer, it changed its
    business strategy completely in 1998 by moving its
    entire business online.
   Unique assets include:
       Currently being the largest retail auction site on the Internet
       A strong brand name
       Strong wholesale relationship with United Stationers
       Business center that provides specialty services
   How does compete?
       Targets small and medium businesses, and government and
        education segments.
       Positions itself on three variables: value, selection and
        customer service.
Internet Marketing Scenarios
Pure-Play Scenario                   Brick-and-Mortar Scenario
   Firms such as Yahoo!, eBay          Firms such as The Gap with
    and                      both offline retail stores and an
   Highly likely that both online       online store
    and offline marketing levers
    (e.g. customer e-mails and          Since offline stores preceded
    print ads) are going to be           online store, Gap online must
    used to build a customer             optimize its online marketing
    relationship.                        strategy within the context of
   Processes of segmentation,           Gap’s broader strategy – i.e.
    targeting and positioning            its offline positioning, image,
    remain largely the same as           and asset base.
    for offline business.
Internet Marketing Strategy:
Pure Play Firms
   Bases for Segmentation
       Demographic, geographic, psychographic,
        cognitive and behavioral.
       Effective segmentation is meaningful, actionable
        and financially attractive.

   Target Market
       Segment size and growth
       Segment structural attractiveness
       Company objectives and resources
Internet Marketing Strategy:
Pure Play Firms
   Positioning
        Features/ services
        Benefits
        Specific usage occasions
        User category
        Against another product
        Product-class
        Hybrid

   Positioning Plan
    1.   Identify actual product positioning.
    2.   Determine ideal product positioning.
    3.   Develop alternative strategies for achieving ideal.
    4.   Select and implement the most promising alternative.
    5.   Compare new actual position with ideal.
Internet Marketing Strategy:
Brick-and-Mortar Firms
   Segmentation for BAMs moving online
       No change
       Market expansion
       Market reclassification
       Reclassified expansion

   Targeting for BAMs moving online
       Blanket targeting
       Beachhead targeting
       Bleed-over targeting
       “Be different” targeting
Internet Marketing Strategy:
Brick-and-Mortar Firms
   Positioning for BAMs moving online
       Blanket positioning
       Beachhead positioning
       Bleed-over positioning
       “Be different” positioning
Marketing Strategy in the New
Economy Firm
   The Internet has and will continue to affect
    marketing strategy in four broad ways:
    1.   Finer gradations of segmentation
    2.   Faster cycle time of marketing strategy decisions
    3.   Increased accountability of marketing efforts
    4.   Increased integration of marketing strategy with
         business strategy and operations
Stage Four: Designing the
Customer Experience
 Customer experience should correlate with
  the firm’s positioning and marketing strategy.
 Customer experience constitutes a bridge
  between high-level marketing (step three)
  and marketing program tactics (step five).

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