Internet Marketing: Internet Marketing: An Overview & An Overview &

FrameworkFramework

Angela D’Auria Stanton, Ph.DAngela D’Auria Stanton, Ph.D

Central Task of MarketingCentral Task of Marketing

Core Product

core benefit customer receives

from product

Actual Product as Purchased

Set of characteristics designed to deliver product’s core benefits

Augmented Product

Additional benefits of the product

Installation

Delivery Terms

Credit

Warranty

After Sale Support

Packaging

Features

Design

Brand Name

Quality

Define Your Define Your UUnique nique SSelling elling PPropositionroposition

The USPThe USP

► The USP should: The USP should:

be unique and clearly set you apart from your and clearly set you apart from your competition, positioning you the more logical competition, positioning you the more logical choicechoice

    persuade someone to want your product persuade someone to want your product

    make a proposal or offer suggested for make a proposal or offer suggested for

acceptance (acceptance (buy this product and you will get buy this product and you will get this specific benefitthis specific benefit) )

Some examples of clear Some examples of clear USPsUSPs

► Head & Shoulders: "You get rid of dandruff" Head & Shoulders: "You get rid of dandruff"

► Olay: "You get younger-looking skin" Olay: "You get younger-looking skin"

► Loreal: "Because you are worth it" Loreal: "Because you are worth it"

► Red Bull: "You get stimulation of body and mind" Red Bull: "You get stimulation of body and mind"

► Domino's Pizza: "You get fresh, hot pizza delivered to your door Domino's Pizza: "You get fresh, hot pizza delivered to your door in 30 minutes or less -- or it's free." in 30 minutes or less -- or it's free."

► FedEx: “When it absolutely, positively has to be there overnight" FedEx: “When it absolutely, positively has to be there overnight"

► M&M's: "The milk chocolate melts in your mouth, not in your M&M's: "The milk chocolate melts in your mouth, not in your hand" hand"

► Wonder Bread: "It helps build strong bones 12 ways“Wonder Bread: "It helps build strong bones 12 ways“

► Nyquil: “The nighttime, coughing, achy, sniffling, stuffy head, Nyquil: “The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest medicine” fever, so you can rest medicine”

How to Develop Your USPHow to Develop Your USP

► Identify your biggest benefitsIdentify your biggest benefits►Be uniqueBe unique►Solve a performance gapSolve a performance gap►Be specific an offer proofBe specific an offer proof►Condense into one clear and concise Condense into one clear and concise

sentencesentence► Integrate your USP into ALL marketing Integrate your USP into ALL marketing

materialsmaterials►Deliver on your USP’s promiseDeliver on your USP’s promise

The Internet Marketing CycleThe Internet Marketing CycleStep 2

Analyze the Market Opportunity

Step 3

Marketing Strategy

Step 4

Design the Customer

Experience

Step 5

Design the Marketing Program

Step 6

Design the Customer Interface

Step 7

Evaluate the Marketing Program

Step 1

Corporateand

Business-Unit

Strategy

Analyze the Market Analyze the Market OpportunityOpportunity

1.1. What value does the opportunity provide?What value does the opportunity provide?

•Disrupt current pricing

•Enable ease of access

•Radically extend reach

•Customize offerings

•Build community

•Introduce new to the world functionality or customer experience

•Create more efficient markets

•Create more efficient value systems

Trapped Value New-to-the World Value

Hybrid Value

Analyze the Market Analyze the Market OpportunityOpportunity

2.2. Identifying Unmet and/or Underserved NeedsIdentifying Unmet and/or Underserved Needs

► What are the series of activities/steps of the customer decision process in which a customer participates to receive an experience?

► What is the nature of the ideal experience the customer wishes to receive, both functionally and emotionally?

► How closely does the actual experience compare to the customer’s view of the ideal? What are the key frustration points? What behaviors does the customer engage in to overcome these frustrations? What underserved needs do you observe, regardless of whether the customer is conscious of them?

► Does the experience the customer seek vary according to the environment?

► How positively/negatively does a customer view the current set of company offerings?

► What are the online opportunities to enhance or transform the customer’s experience?

Analyze the Market Analyze the Market OpportunityOpportunity

3.3. Identify who provides the resources to deliver the benefits Identify who provides the resources to deliver the benefits of the offeringof the offering

4.4. Assess the Attractiveness of the OpportunityAssess the Attractiveness of the Opportunity

► Competitive Intensity► Number and identity of competitors► Strengths and weaknesses at delivering benefits

► Customer Dynamics► The level of unmet need/magnitude of unconstrained opportunity► Level of interaction between major customer segments► Likely rate of growth

► Technology Vulnerability► Impact of penetration of new technologies► Impact of new technologies on value proposition

► Microeconomics► The size/volume of the market► The level of profitability

Evaluate the CompetitionEvaluate the Competition Use many different search engines to find your Use many different search engines to find your

competition.competition.

Evaluate competitors using variables such as the Evaluate competitors using variables such as the following: following: domain name and complete URLdomain name and complete URL how you found themhow you found them strengths, weaknessesstrengths, weaknesses gaps in product offeringgaps in product offering strategies for attracting people to their pagestrategies for attracting people to their page strategies for keeping visitors at their site (e.g., strategies for keeping visitors at their site (e.g.,

stickiness)stickiness) customer retention strategiescustomer retention strategies attractiveness of siteattractiveness of site customer servicecustomer service

A Method for Organizing A Method for Organizing Competitive IntelligenceCompetitive Intelligence

Competitor Competitor AA

Competitor Competitor BB

Competitor Competitor CC

Site NameSite Name

StrengthsStrengths

WeaknessesWeaknesses

PromotionsPromotions

Site DesignSite Design

Etc…Etc…

Look at the Competitors’ Look at the Competitors’ Source Code Source Code

(title, description META tag and keyword tag)(title, description META tag and keyword tag)

Go to: Go to: http://www.cigaraficionado.com

<html><html><head><head>

<TITLE><TITLE>Cigar Aficionado - Your Home for Cigars On the WebCigar Aficionado - Your Home for Cigars On the Web</TITLE></TITLE><META name="description" content="<META name="description" content="Cigar Aficionado Online, your Cigar Aficionado Online, your

home on the Web for cigars and The Good Life. Features searchable databases of home on the Web for cigars and The Good Life. Features searchable databases of cigar ratings, cigar friendly restaurants and tobacconists around the world.">cigar ratings, cigar friendly restaurants and tobacconists around the world.">

<META name="keywords" content=<META name="keywords" content="cigars, cigars, cigars, cigars, "cigars, cigars, cigars, cigars, cigars, Cigar Aficionado, Cigar Afficionado, Cigar Aficianado, Cigar Aficiondo, cigar, cigars, Cigar Aficionado, Cigar Afficionado, Cigar Aficianado, Cigar Aficiondo, cigar, cigars, aficionado, afficionado, aficianado, afficianado, aficiando, smoke, tobacco, cigars, aficionado, afficionado, aficianado, afficianado, aficiando, smoke, tobacco, travel, lifestyle, affluence, Cohiba, Cuba, Cuban, Cubans, Montecristo, Opus X, travel, lifestyle, affluence, Cohiba, Cuba, Cuban, Cubans, Montecristo, Opus X, wealth, restaurant, restaurants, retailer, retailers, rating, ratings, cigar ratings, Big wealth, restaurant, restaurants, retailer, retailers, rating, ratings, cigar ratings, Big Smoke">Smoke">

</head></head><body><body></body></body>

</html></html>

Marketing StrategyMarketing Strategy

1.1. Segmenting the Market (major types of online market segmentation)Segmenting the Market (major types of online market segmentation)► Behavioral► Demographic► Psychographic (common interests, values and opinions along with

personality, attitude and lifestyle preferences e.g. VALS)► Technical (based on data collected about your visit – IP address,

browser, how did you get to the page, type of connection, etc.)► Contextual (using the context or content of an event – e.g. people

who read WSJ online are good targets for financial service advertising)► Search (using what they’re looking for at that moment – “sell them

what they want”)

2.2. Targeting - determine the attractiveness of the segments and Targeting - determine the attractiveness of the segments and choosing the segment(s) to marketchoosing the segment(s) to market

3.3. Positioning – creating perception of product relative to competitionPositioning – creating perception of product relative to competition

Design the Customer Design the Customer ExperienceExperience

►The customer experience equals:The customer experience equals: The objective experience +The objective experience + The perceived experience +The perceived experience + The encounter experience +The encounter experience + The reactions to stimuli experience +The reactions to stimuli experience + The sensory experience +The sensory experience + The cognitive and emotional experience +The cognitive and emotional experience + The relative experienceThe relative experience

Design the Customer Design the Customer ExperienceExperienceStages of Customer ExperienceStages of Customer Experience

What Firm DoesWhat Firm Does What Customer What Customer ExperiencesExperiences

Stage One:Stage One:

FunctionalityFunctionality

(works well)(works well)

►Great design & information Great design & information architecturearchitecture►Understanding of consumer Understanding of consumer behaviorbehavior►Platform independencePlatform independence►Server transactionsServer transactions

►Usable siteUsable site►Quick, speedy downloadsQuick, speedy downloads►Easy navigationEasy navigation►ReliableReliable

Stage Two:Stage Two:

Intimacy Intimacy (they (they understand understand me)me)

►Data warehousing and miningData warehousing and mining►Tailoring of pages and offeringsTailoring of pages and offerings►Overlay human interactionOverlay human interaction►Integrated dataIntegrated data

►Personalized informationPersonalized information►Increasing trustIncreasing trust►Consistent experiencesConsistent experiences

Stage Three:

InternalizatioInternalization (it’s part of n (it’s part of me)me)

►Consistent performance over timeConsistent performance over time►Constant innovation and Constant innovation and upgrading (incremental or upgrading (incremental or significant)significant)

►A sense of “being in the know”A sense of “being in the know”►Exceptional valueExceptional value►Repeated experiences of valueRepeated experiences of value►Significant “gap” relative to other Significant “gap” relative to other offeringsofferings

Stage Four:Stage Four:

Evangelism Evangelism (sharing with (sharing with others)others)

►Support evangelistsSupport evangelists►Acknowledge evangelistsAcknowledge evangelists

►Wants to take message to marketWants to take message to market►Enjoys benefits of communityEnjoys benefits of communitySource: Internet Marketing: Building Advantage in a Networked Economy, p. 210

Design the Marketing Design the Marketing ProgramProgram

product pricing

individual

promotion\/commun-

icationplace

interactivity

The Internet Marketing MixThe Internet Marketing Mix

community

Design the Marketing Design the Marketing ProgramProgram

► Building and Nurturing Customer RelationshipsBuilding and Nurturing Customer Relationships

Relationship Stages

Awareness Exploration / Expansion

Commitment

Dissolution

Design the Customer Design the Customer InterfaceInterface

The 7 Cs of the Customer InterfaceThe 7 Cs of the Customer Interface

Context

The site’s layout & design

Commerce

Site’s capabilities to enable commercial

transactions

Connection

Degree to which site is linked to other sites Communication

How site enables site-to-user communication

or two-way communication

Content

Text, pictures, sound and video that site

contains

Community

How the site enables user-to-user

communication

Customization

Site’s ability to self tailor to different users or allow a personalized

experience

Evaluate the Marketing Evaluate the Marketing ProgramProgram

Online Model of Purchasing and Associated Customer MetricsOnline Model of Purchasing and Associated Customer Metrics

Online Buying Online Buying Process StageProcess Stage

Metrics Commonly Used at this StageMetrics Commonly Used at this Stage

Visits stage ►Measuring unique and repeat visitors

Shopping behavior stage ►Number of page views►Pattern of sites visited►Length of stay on site►Number of registrations completed per 100 visitors►Number of customers with shopping carts / shopping cart abandoned

Purchase stage ►Number of purchases►Dollar amount of purchases►Conversion rate of customers►Customer acquisition cost►Customer profitability

Post-purchase stage ►Return rates►Referrals

Loyalty stage ►Frequency of purchase►Percentage of purchases in category►Percentage of true loyalists

““It's not the strongest or most It's not the strongest or most intelligent that survive, but the intelligent that survive, but the ones most responsive to change.”ones most responsive to change.”

---Charles ---Charles Darwin Darwin