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Marketing Strategy In Internet Marketing

Marketing Strategy In Internet Marketing Huzefa Fakhri Jinyi Shao 15 th 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

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Marketing Strategy In Internet Marketing

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  1. Marketing Strategy In Internet Marketing Huzefa Fakhri Jinyi Shao 15th March 2005

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

  3. 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

  4. The Link • Business Strategy Directs choice for Marketing Strategy • Provides Direction, Guidance And Benchmarks • Business Strategy Parameters >>Choice of Marketing Mix

  5. Criteria To Assess Alignment • Goal Alignment • Resource Alignment • Activity Alignment • Implementation Alignment

  6. Alignment (Exhibit 3.1 Assessing the Fit between Business-Unit Strategy and Marketing Strategy) Goal Alignment Implementation Alignment Fit Resource Alignment Activity Alignment

  7. Marketing Strategy: A Basic Review Key Concepts in Marketing Strategy • Segmentation • Actionable • Meaningful • Target Market Selection • Positioning • Application • Marketing Mix

  8. Marketing Strategy Decisions(Exhibit 3.2 Marketing-Strategy Decisions) Product Promotion Positioning and Target-Market Selection Price Distribution

  9. Segment Prioritization (Exhibit 3.4 Prioritizing Segments) Buyer Readiness Stage Segmentation Prioritization Attitude Trend/Market Leaders Willingness to Pay

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

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

  12. Internet Marketing Strategy: Pure Plays Segmentation for Pure Plays • Bases for Segmentation • Effective Segmentation • Meaningful • Actionable • Financially attractive

  13. Target Market Selection • Segment Size and Growth • Structural Attractiveness • Company Objectives and Resources

  14. Target Market Strategies • Mass Market Strategy • Niche Market Strategy • Growth Market Strategy

  15. Positioning • Positioning Strategies • Positioning Plan

  16. Positioning (Cont…) • Positioning Strategies • Features • Perceived Benefits • Usage Occasions • User Category • Competitive Positioning • Product Class Positioning • Hybrid

  17. 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

  18. Perceptual MapsExhibit 3–7: 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

  19. 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)

  20. 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

  21. Targeting for BAMs Moving Online (Exhibit 3.11 Bricks-and-Mortar Targeting Scenarios) Customer Similarity Same Customers Different 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

  22. Positioning (Exhibit3.12 Bricks-and-Mortar Positioning Scenarios and Guidelines) Different Customers Same Customers • New Opportunity Targeting • Blanket Targeting • 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 Entire Segment • Beachhead Targeting • Bleed-Over 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

  23. eBay www.ebay.com

  24. Thank you ! Any Questions Or Comments!

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