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INTERACTIVE MARKETING STRATEGY

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Sunarto Prayitno

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INTERNET MARKETING STRATEGY

As a detailed strategy that is part of the broader strategic marketing planning process.As a part of the investment proposal for a new web site.As a separate strategy for a company for which the internet is a significant communications or sales channel.

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Internal and External Influences on Internet Marketing Strategy

Corporate Objective & Strategy

Marketing Strategy

Internet Marketing Strategy

Emerging Opportunities and Threats

Market Structure & Demand

Competitors Strategies

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RELATIONSHIP MARKETING

Relationship marketing is a developing marketing discipline, combining many activities which have been in place for years with some newly-emerging facilities primarily involving the increased accessibility of IT, both hardware and software.

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LEVEL OF WEB SITE DEVELOPMENT

Level 0 (No Web Site)Level 1 (List Company Name) Yellow Pages

Level 2 (Simple Static Web Site) Brochure

Level 3 (Simple Interactive Site)Level 4 (Interactive Site Supporting

Transactions)Level 5 (Fully Interactive Site Providing

Relationship Marketing)

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THE LEVEL OF WEB SITE

First Generation: simple static ‘brochure-ware’ site (one to many).

Second Generation: Simple interactive site (one to many).

Third Generation: Fully interactive site (personalization, direct marketing, sales & customer service).

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LEVEL OF WEB SITE DEVELOPMENT

Information to transaction model and

The transaction to information model.

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Image/product information

Information collection

Customer support/service

Internal Support/service

Transactions

LEVEL OF WEB SITE DEVELOPMENT

Transaction

Customer Support/service

Image/productinformation

InformationCollection/Market research

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INTEGRATION OF REAL-WORLD AND ONLINE CHANNELS

Real World

Product Evaluation

Decision to Purchase

Specify Purchase

Payment

Fulfillment

Online

Product Evaluation

Decision to Purchase

Specify Purchase

Payment

Fulfillment (Digital)

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POTENTIAL BUSINESS BENEFITS

Corporate image improved.

Improved customer service.

Increased visibility.

Market expansion.

Online transactions.

Lower communication costs.

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TANGIBLE BENEFITS

Increased Sales:New customers, new markets.Existing customers (repeat-selling).Existing customers (cross-selling).

Cost Reductions:Reduced time in customer service.Online sales.Reduced printing & distribution costs of marketing communications.

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INTANGIBLE BENEFITS

Corporate image communications.

Enhance brand.

More rapid, more responsive marketing communications including PR.

Improved customer service.

Learning for the future.

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INTANGIBLE BENEFITS

Meeting customer expectations to have a web site.

Identify new partners, support existing partners better.

Better management of marketing information and customer information.

Feedback from customers on products.

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Develop Internet Marketing Strategy

A SIMPLE FRAMEWORK FOR INTERNET MARKETING STRATEGY DEVELOPMENT

Define Internet Marketing Plan

Design Site

Implement Site

Monitor/Metric

Reviewed andModify

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A STEP STRATEGIC MARKETING PLANNING PROCESS

1. Develop internet marketing strategy:Goal Setting Situation Preview Strategy

2. Define internet marketing plan & monitor:Resources allocation and monitoring

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A TEN-STEP STRATEGIC MARKETING PLANNING PROCESS

Phase 1 (Goal Setting):

1. Mission

2. Corporate Objectives

Phase 2 (Situation Review):

3. Marketing Audit

4. SWOT Analysis

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A TEN-STEP STRATEGIC MARKETING PLANNING PROCESS

Phase 3 (Strategy Formulation):

5. Assumptions

6. Marketing Objectives & Strategies

7. Estimate expected results

8. Identify alternative plans and mix

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A TEN-STEP STRATEGIC MARKETING PLANNING PROCESS

Phase 4 (Resource Allocation and Monitoring):

9. Budget

10. Detailed implementation program

(year 1)

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1. INTERNAL AUDITS

Business effectiveness: Internet contribution, profitability, corporate mission.

Marketing Effectiveness: Leads, sales, retention, market share, brand enhancement and loyalty, customer services.

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INTERNAL AUDITS

Internet Effectiveness: Used of the web site assessment, hits, page impressions or

Conventional assessment (FGD’s, survey).

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2. EXTERNAL AUDITS

The environmental factors:

Social, legal, economic/fiscal, political, and technological factors (SLEPT acronym).

The three most significant factors: Legal constrains, social constrains, and technological constrains.

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EXTERNAL AUDITS

Customers:

Size of the market.

The type of marketplace.

Market Share.

Competitors:

Level of web site development.

Channel of competitors make use of the internet.

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3. ASSESSING SWOT

OPPORTUNITIES

New markets.

New services.

New distribution channels.

Reduced power of supplier.

Demographic characteristics.

Cost reduction.

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ASSESSING SWOT

THREATS

New entrants.

New products.

Faster responding (smaller competitors)

Channel conflicts.

Customer choice.

Regulation.

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ASSESSING SWOT

STRENGTHS

Flexibility.

Strong brand.

Senior management commitment.

Strategy in place.

Channel in place.

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ASSESSING SWOT

WEAKNESSES

Weak brand.

Inflexibility (slow response).

Lack of leadership.

No strategy.

No fulfillment mechanism.

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4. STRATEGY FORMULATION

Amount of investment and commitment to the internet.

Market and product positioning.

Internet marketplace positioning.

Setting the internet marketing value proposition.

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5. RESOURCES ALLOCATION & MONITORING

Planning, scheduling, resource allocation and monitoring:

Once the internet marketing strategy has been formulated, a more detailed strategy implementation plan will need to be drawn up.

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THE INTERNET MARKETING PLAN

Internet Marketing Plan:

An operational plan to achieve an internet marketing strategy through implementation of a new version of a web site and associated marketing communications.

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DECISION POINT OF THE INTERNET MARKETING PLAN

Who are the potential audience?

Integrating ‘the nets’.

Defining the scope of internet marketing communications.

How do we ‘migrate’ our brands on to the internet?

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DECISION POINT OF THE INTERNET MARKETING PLAN

Strategic partnerships and outsourcing.

Organizational structure.

Setting the budget.

The schedule: Pre-development tasks, content planning, content development and testing, publishing the site, pre-launch promotion, & ongoing promotion.

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WEB SITE DEVELOPMENT SCHEDULE

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INTERNET MARKETING INVESMENT PLAN

Objective Statement

Strategic Positioning

Assessment of Current Position

Assess Opportunities and Threats

Partnering Arrangements

Integrating ‘The Nets’

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INTERNET MARKETING INVESMENT PLAN

Channel Choices

Promotional and Communications Activities

New Media Branding

Measuring Site Effectiveness

Resource Requirements

Implementation