Marketing Strategy In Internet Marketing

Huzefa FakhriJinyi Shao

15th March 2005

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

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

The Link

Business Strategy Directs choice for Marketing Strategy

Provides Direction, Guidance And Benchmarks

Business Strategy Parameters >>Choice of Marketing Mix

Criteria To Assess Alignment

Goal Alignment Resource Alignment Activity Alignment Implementation Alignment

Alignment (Exhibit 3.1 Assessing the Fit between Business-Unit Strategy and Marketing Strategy)

Goal AlignmentGoal Alignment

Activity AlignmentActivity Alignment

Implementation Alignment

Implementation Alignment Resource AlignmentResource AlignmentFitFitFitFit

Marketing Strategy: A Basic Review

Key Concepts in Marketing Strategy Segmentation

Actionable Meaningful

Target Market Selection Positioning

Application

Marketing Mix

Marketing Strategy Decisions

(Exhibit 3.2 Marketing-Strategy Decisions)

Product Promotion

Price Distribution

Positioning and

Target-Market

Selection

Segment Prioritization (Exhibit 3.4 Prioritizing Segments)

Buyer Readiness StageBuyer Readiness Stage

SegmentationSegmentationPrioritizationPrioritization

AttitudeAttitude

Trend/Market LeadersTrend/Market Leaders

Willingness to PayWillingness to Pay

Resource allocation, Timing

Resource Allocation Based on the prioritization of their target

segments

Timing Reallocation Crossover Marketing (e.g. marketing of movies)

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

Bricks And Mortar Pure PlayOnline

Business-Unit Strategy

Online Business-Unit

Strategy

Marketing Strategy for

Online Business

Marketing Strategy for

Online Business

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

Business-Unit Strategy

Business-Unit Strategy

Integrated Marketing Strategy

Integrated Marketing Strategy

Marketing Strategy for

Offline Business

Marketing Strategy for

Offline Business

Marketing Strategy for

Online Business

Marketing Strategy for

Online Business

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

Internet Marketing Strategy: Pure Plays

Segmentation for Pure Plays

Bases for Segmentation

Effective Segmentation Meaningful Actionable Financially attractive

Target Market Selection

Segment Size and Growth

Structural Attractiveness

Company Objectives and Resources

Target Market Strategies

Mass Market Strategy

Niche Market Strategy

Growth Market Strategy

Positioning

Positioning Strategies

Positioning Plan

Positioning (Cont…)

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

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

Perceptual MapsExhibit 3–7: Perceptual Map for the Online Automobile Industry

Information-Only Site

Direct Purchasing-Only Site

Manufacturer Site(One specific line of cars)

Aggregate Site(Many different lines of cars)

GM Ford Honda

Edmunds.com Kelley Blue Book

CarPoint Autobytel Cars Direct

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)

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

Market Expansion Reclassified —

Expansion

Market ReclassificationNo

No Yes

Yes

No Change

Targeting for BAMs Moving Online

(Exhibit 3.11 Bricks-and-Mortar Targeting Scenarios)

Entire Current Segment

Portions of a Segment

Different CustomersSame Customers

Blanket Targeting New Opportunity

Beachhead Targeting Bleed-Over Targeting

Customer Similarity

Serve Same Segment Online as

Offline

Serve a Portion of

Offline Segment

Online

Serve New Segment

Online

Serve Part of Offline

Segment as Well as New

Segment Online

Positioning (Exhibit3.12 Bricks-and-Mortar Positioning Scenarios and Guidelines)

Blanket Targeting New Opportunity Targeting

Bleed-Over Targeting

Portions of a Segment

Entire Segment

Beachhead Targeting

Same Customers Different Customers

Borrow heavily from existing offline positioning

Tout basic advantages of the Internet—convenience and accessibility

Reposition entirely Position differentiations

that cater to the new segment

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)

Customer Similarity

eBay

www.ebay.com

Thank you !

Any Questions Or Comments!