Transcript Internet Marketing, Chapter 3, Enhanced Lecture Slides

chapter
3
Marketing Strategy in Internet
Marketing
McGraw-Hill/Irwin
© 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
Marketing Strategy in Internet
Marketing — Today’s Objectives

Objectives will be to:

Define the concept of marketing strategy

Explore effective segmentation, especially for pure play and
bricks-and-mortar (BAM) firms

Examine traditional targeting and positioning strategies

Discuss the corporate and business-unit strategy of eBay
Chapter 3: Marketing Strategy in
Internet Marketing

Marketing Strategy and the Importance of Fit

Segmentation

Targeting

Positioning

Corporate and Business-Unit Strategy of EBay

Conclusion
Chapter 3: Marketing Strategy in
Internet Marketing

Marketing Strategy and the Importance of Fit

Segmentation

Targeting

Positioning

Corporate and Business-Unit Strategy of EBay

Conclusion
Exhibit 3.1: Assessing Business-Unit
and Marketing Strategy Fit
Goal
Alignment
Implementation
Alignment
Fit
Activity Alignment
Resource
Alignment
Exhibit 3.2: Marketing-Strategy
Decisions
Promotion
Product
Positioning and
Target-Market
Selection
Price
Distribution
Chapter 3: Marketing Strategy in
Internet Marketing

Marketing Strategy and the Importance of Fit

Segmentation

Targeting

Positioning

Corporate and Business-Unit Strategy of EBay

Conclusion
Exhibit 3.4: Prioritizing Segments
Buyer Readiness Stage
Attitude
Segmentation
Prioritization
Trend/Market Leaders
Willingness to Pay
Exhibit 3.6: Marketing-Strategy
Formulation for Pure-Play vs. BAM
Pure-Play
Bricks-and-Mortar
Online
Business-Unit
Strategy
Business-Unit
Strategy



Marketing
Strategy for
Online
Business
Choices
1. Segmentation
2. Target market selection
3. Positioning
Overall
Online
Offline
Integrated
Marketing
Strategy
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
Exhibit 3.7: Perceptual Map for the
Online Automobile Industry
Exhibit 3.8: Perceptual Map with
Customer Preference Clusters
Yes
No
Changes in Size of
Market Segments
Exhibit 3.9: Bricks-and-Mortar
Segmentation Scenarios
Market
Expansion
Reclassified—
Expansion
No Change
Market
Reclassification
No
Yes
Change in Segmentation Characteristics
Due to Internet
Chapter 3: Marketing Strategy in
Internet Marketing

Marketing Strategy and the Importance of Fit

Segmentation

Targeting

Positioning

Corporate and Business-Unit Strategy of EBay

Conclusion
Exhibit 3.11: Bricks-and-Mortar
Targeting Scenarios
Chapter 3: Marketing Strategy in
Internet Marketing

Marketing Strategy and the Importance of Fit

Segmentation

Targeting

Positioning

Corporate and Business-Unit Strategy of EBay

Conclusion
Entire Segment
Porrtions of a
Segment
Focus of Effort
Exhibit 3.9: Bricks-and-Mortar
Positioning Scenarios and Guidelines
Blanket Targeting
•Borrow heavily from existing
offlline positioning
•Tout basic advantages of the
Internet – convenience and
accessibility
New Opportunity Targeting
•Reposition entirely
•Position differentiations which
cater to the new segment
Beachhead Targeting
•Also borrow from offline
positioning
•Focus more, however, on
needs of the smaller group
•Stress value-added
advantages of the Internet
Same Customers
Bleed-Over Targeting
•Use dual positioning
•Leverage existing positioning
•Position added benefits, such
as augmented offerings via the
Internet (e.g., increased
product customizability)
Different Customers
Customer Similarity
Chapter 3: Marketing Strategy in
Internet Marketing

Marketing Strategy and the Importance of Fit

Segmentation

Targeting

Positioning

Corporate and Business-Unit Strategy of EBay

Conclusion
Exhibit 3.13: Breakdown of EBay’s
Gross Merchandise Listed
Toys & Hobbies
9%
Tickets & Travel
0%
Stamps
2%
Everything Else
Antiques & Art
3%
3%Books
5% Business, Office, & Industrial
1%
Clothing & Accessories
9%
Sports
11%
Real Estate
0%
Coins
2%
Pottery & Glass
4%
Photo
1%
Music
7%
Collectibles
20%
Movies & TV
5%
Jewelry
6%
Home & Garden
Dolls & Bears
4%
2%
Computers
3%
Consumer Electronics
4%
Exhibit 3.17: EBay’s Business-Unit
Strategies
Half.com
EBay Stores
EBay Premier
EBay Motors
Large
User Base
Expands reach of offer to
specific customer niche
and general community
Offline car buyers, sellers
and collectors
Differentiated user base
of customers averse to
auction-like transactions
Targets profitable smallbusiness segment
Local and
International
Serves local and
international users
Serves local and
international users
Serves local and
international users
Serves local and national
users
Strong
Brand
Leverages eBay brand to
traditional auction house
community
Leverage eBay brand to
collectible and used-car
buyers and sellers
Sellers cost-effectively
sell relatively inexpensive
items previously
prohibitively expensive to
list
Provides sellers with a
merchandising showcase
for multiple listings and
buyers with a single
shipping destination
Broad
Trading
Platform
Expands core business
Expands core business
Expands core business
Expands core business
Community
Affinity
High-end items appeal to
a more affluent
demographic
Replaces classified ads
for sellers and used-car
showrooms for buyers
Sellers can list items by
entering the ISBN or UPC
barcode number of their
item, along with the item’s
condition and selling price
People can pick up or
deliver items to others in
their vicinity
Features
and
Functionality
Stable source of
traditional auction house
merchandise
Access to inventory and
channels
Opportunity to road-test
fixed-price trading without
risking core business
All of a seller’s auctions
are available in one place
Exhibit 3.18: Offering-Based
Segmentation of Auction Market
Chapter 3: Marketing Strategy in
Internet Marketing

Marketing Strategy and the Importance of Fit

Segmentation

Targeting

Positioning

Corporate and Business-Unit Strategy of EBay

Conclusion
Marketing Strategy in Internet
Marketing — Conclusion

Marketing Strategy and Business-Unit Strategy must be
properly aligned for maximum impact

Both pure play and brick-and-mortar firms can rely on
segmentation, targeting, and positioning in the online and
offline domains

The classical framework for strategic management remains the
same; however, networked-economy firms require further
consideration.