Transcript Online Advertising Models

Lesson 5
E-POSITIONING AND ADVANTAGE
What is an Small Business Entrepreneur ?
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Entrepreneur n. a right brained business
man or woman of positive disposition who
attempts to make profit from opportunities
by risk, initiative and guidance from
www.2-small-business.com
SESSION OBJECTIVES
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EVOLUTION OF MASS MARKETING
SEGMENTATION AND CUSTOMISATION
NICHE MARKETING
E-COMMERCE COMPETITIVE ADVANTAGE
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MASS MARKETING STRATEGIES:
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EXPLOIT ECONOMIES OF SCALE
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RE-INVEST PROFITS IN PROMOTION
USE VERTICALLY LINKED DISTRIBUTION SYSTEMS
DOMINATE MARKET USING HIGH VOLUME / LOW
PRICES
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MASS MARKET BRANDS LATE ENTRANTS
INTO E-COMMERCE MARKETS
ADVANTAGE IS RECOGNISED BRAND
NAME
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EMERGING ISSUE OF DEPTH OR
BREADTH OF ON-LINE PRODUCT LINE
CHRISTENSEN AND TEDLOW SUGGEST
BATTLE MAY FOLLOW DEPARTMENT
STORE VERSUS DISCOUNT RETAILER
PATTERN
AMAZON.COM MOVING UP-MARKET
OFFERING SIDE BREADTH OF PRODUCTS
DISCOUNTERS ENTERING WITH
SPECIALISATION (DEPTH) AND LOW
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SEGMENTATION IS ABOUT DIVIDING MARKET
INTO SPECIALISED CUSTOMER GROUPS
LEAN MANUFACTURING GAVE JAPANESE
ABILITY TO MOVE INTO SHORT RUNS OF
CUSTOMISED PRODUCTS
EMERGENCE OF IDEA TECHNOLOGY WOULD
PERMIT ONE-TO-ONE MARKETING
OTHER TREND IS CUSTOMER DATA (E.G.
LOYALTY CARDS) PERMITS DATA MINING TO
FIND PATTERNS
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WEB-SITES OFFER REAL TIME DATA ON
CUSTOMER BEHAVIOUR
INTERNET PERMITS ON-LINE
CUSTOMISATION OF PRODUCT NEED
EXPERIMENTS BY P&G TO OFFER
CUSTOMISED HBAS ON-LINE
MARKET NICHE IS VERY SMALL GROUP
OF CUSTOMERS WITH SPECIALIST
NEEDS
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MARKET NICHE USED TO BE PRESERVE
OF SMALL FIRM
INTERNET OFFERS ACCESS TO ENTER
NICHE BY LARGE FIRMS
HOWEVER ON-LINE NICHE LETS SMALL
FIRM MOVE FROM SMALL MARKET TO BE
A GLOBAL PLAYER
MICR-NICHING OF INDIVIDUAL PRODUCT
FOR EACH CUSTOMER (E.G. SELF-MIXED
MUSIC CD ORDERED ON-LINE)
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B2B ON-LINE MARKET NICHES
BEGINNING TO EMERGE
EXAMPLE OF INDUSTRY AUCTION SITE
FOR USED CONSTRUCTION EQUIPMENT
COMPETITIVE ADVANTAGE MODEL OF
PORTER:
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COST LEADERSHIP
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DIFFERENTIATION
FOCUSED COST LEADERSHIP
FOCUSED DIFFERENTIATION
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FIGURE 5:1 AN EXPANDED E-COMMERCE COMPETITIVE
ADVANTAGE OPTIONS MATRIX
FIGURE 5:2 AN ALTERNATIVE CUSTOMER NEED MATRIX
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CONSERVATIVE TRANSACTIONAL
ADVANTAGE BASED ON PRICE / QUALITY
STANDARD PRODUCT COMBINATION (E.G.
EASY JET U.K.)
CONSERVATIVE / RELATIONSHIP ADVANTAGE
BASED STANDARD PRODUCT CUSTOMISED
TO SPECIFIC CUSTOMER NEED (E.G. FEDEX)
ENTREPRENEURIAL
/ TRANSACTIONAL
ADVANTAGE BASED ON ENTIRELY NEW
SOLUTION (E.G. MODBURY BUSINESS
PLANNING TOOL)
ENTREPRENEURIAL
/ RELATIONSHIP
ADVANTAGE BASED ON INNOVATION
DEVELOPED IN PARTNERSHIP WITH
CUSTOMER (E.G. MCKESSON ON-LINE
DRUG OPERATION)
Reasons to join www.2-small-business.com
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 To get these benefits
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