Marketing Strategy In Internet Marketing

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Marketing Strategy In Internet Marketing

• Huzefa Fakhri
• Jinyi Shao
• 15th March 2005

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Stages Of Internet Marketing(Exhibit 1.2 The
Seven-Stage Cycle of Internet Marketing)
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Introduction

• Links And Alignment Between Business- Unit And
  Marketing Strategy
• Basic Review Of Marketing Strategy
• Internet Marketing Strategy Pure Plays
• Internet Marketing Strategy Bricks-and-Mortar
• eBay Example

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The Link

• Business Strategy Directs choice for Marketing
  Strategy
• Provides Direction, Guidance And Benchmarks
• Business Strategy Parameters Choice of
  Marketing Mix

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Criteria To Assess Alignment

• Goal Alignment
• Resource Alignment
• Activity Alignment
• Implementation Alignment

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Alignment (Exhibit 3.1 Assessing the Fit between
Business-Unit Strategy and Marketing Strategy)
Goal Alignment
Implementation Alignment
Fit
Resource Alignment
Activity Alignment
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Marketing Strategy A Basic Review

• Key Concepts in Marketing Strategy
• Segmentation
• Actionable
• Meaningful
• Target Market Selection
• Positioning
• Application
• Marketing Mix

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Marketing Strategy Decisions (Exhibit 3.2
Marketing-Strategy Decisions)

Product
Promotion
Positioning and Target-Market Selection
Price
Distribution
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Segment Prioritization (Exhibit 3.4 Prioritizing
Segments)
Buyer Readiness Stage

Segmentation Prioritization
Attitude
Trend/Market Leaders
Willingness to Pay
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Resource allocation, Timing

• Resource Allocation
• Based on the prioritization of their target
  segments
• Timing
• Reallocation
• Crossover Marketing (e.g. marketing of movies)

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Internet Marketing Scenarios(Exhibit 3.6
Marketing-Strategy Formulation for Pure-Play Vs.
Bricks-and-Mortar Firms)

• Bricks And Mortar

• Pure Play

Online Business-Unit Strategy
Business-Unit Strategy
Marketing Strategy for Online Business
Integrated Marketing Strategy

• Choices
• 1. Segmentation
• 2. Target market selection
• 3. Positioning

Marketing Strategy for Offline Business
Marketing Strategy for Online Business

• Choices
• 1. Same vs. different segment
• 2. Same vs. different target market
• 3. Same vs. different positioning

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Internet Marketing Strategy Pure Plays

• Segmentation for Pure Plays
• Bases for Segmentation
• Effective Segmentation
• Meaningful
• Actionable
• Financially attractive

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Target Market Selection

• Segment Size and Growth
• Structural Attractiveness
• Company Objectives and Resources

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Target Market Strategies

• Mass Market Strategy
• Niche Market Strategy
• Growth Market Strategy

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Positioning

• Positioning Strategies
• Positioning Plan

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Positioning (Cont)

• Positioning Strategies
• Features
• Perceived Benefits
• Usage Occasions
• User Category
• Competitive Positioning
• Product Class Positioning
• Hybrid

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Positioning (Cont)

• Positioning Plan
• Actual Product Positioning
• Ideal Product Positioning
• Strategies for Ideal Product Positioning
• Select and Implement most promising Alternative
• Compare New Actual with Ideal Position

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Perceptual MapsExhibit 37 Perceptual Map for
the Online Automobile Industry
Information-Only Site

• GM
• Ford
• Honda

• Edmunds.com
• Kelley Blue Book

Manufacturer Site(One specific line of cars)
Aggregate Site(Many different lines of cars)

• CarPoint
• Autobytel
• Cars Direct

Direct Purchasing-Only Site
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Internet Marketing Strategy Bricks-and-Mortar

• Segmentation for BAMs Moving Online
• No Change (e.g. Business-to-Business)
• Market Expansion (e.g. www.formages.com)
• Market Reclassification (e.g.reflect.com)
• Reclassified Expansion (e.g.Targeting
  Positioning)

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Change in Segmentation Characteristics Due to
Internet(Exhibit 3.9 Bricks-and-Mortar
Segmentation Scenarios)

• Reclassified Expansion

Yes

• Market Expansion

• Market Reclassification

No

• No Change

No
Yes
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Targeting for BAMs Moving Online (Exhibit 3.11
Bricks-and-Mortar Targeting Scenarios)
Customer Similarity
Different Customers
Same Customers
Serve Same Segment Online as Offline
Serve New Segment Online
Blanket Targeting
New Opportunity
Entire Current Segment
Serve Part of Offline Segment as Well as New
Segment Online
Beachhead Targeting
Bleed-Over Targeting
Serve a Portion of Offline Segment Online
Portions of a Segment
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Positioning (Exhibit3.12 Bricks-and-Mortar
Positioning Scenarios and Guidelines)
Different Customers
Same Customers

• Blanket Targeting

• New Opportunity Targeting

• Borrow heavily from existing offline positioning
• Tout basic advantages of the Internetconvenience
  and accessibility

• Reposition entirely
• Position differentiations that cater to the new
  segment

Entire Segment

• Bleed-Over Targeting

• Beachhead Targeting

• Also borrow from offline positioning
• Focus more, however, on needs of the smaller
  group
• Stress value-add of the Internet

• Use dual positioning
• Leverage existing positioning
• Position added benefits, such as augmented
  offerings via the Internet (e.g., increased
  product customizability)

Portions of a Segment
Customer Similarity
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eBay

• www.ebay.com

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• Thank you ?!
• Any Questions Or Comments!