Transcript Week 2 - Internet Marketing Strategy

 ‘The
key question is not whether to deploy
Internet technology – companies have no choice
if they want to stay competitive – but how to
deploy it.’
Porter, M. (2001) Strategy and the Internet,
Harvard Business Review, March 2001, 62–78.
Internal and external influences on Internet marketing strategy
…it provides a
consistent direction for
online marketing
activities
…it means analysis of
the external
environment, internal
resources and
capabilities will take
place
…following it will help the
company achieve
competitive advantage
…the company can
achieve its hierarchy
of objectives
A digital marketing
strategy is needed
because…
It helps us to
understand which
strategies and
tactics should not
be pursued
Gives a focus to
choice of target
markets,
positioning and
the use of the
marketing mix
Tells us how
resources will be
deployed and how
the organisation
will be structured
to achieve the
strategy.
 New
proposition for customers
 Getting more customers (acquisition)
 Converting customers
 Improving experience
 Improving delivery of offers
 Improving the infrastructure to enhance
marketing capabilities
A website is likely to be central to an internet
marketing strategy…
 Also:

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Partner with online intermediaries e.g. portals, social
networks and infuencers like bloggers…
Use social media marketing on own pages with usergenerated content but also using social networks like
Facebook, Google+, LinkedIn, Twitter, Pinterest, etc
Use email, mobile, apps and databases as
communications and relationship-building tools.
Link with offline marketing communications.
Reduce costs, generate revenue, communicate and
brand.
 SOSTAC
Model
 RACE Model
• Reach – Build
awareness & traffic
• Engage – Build
customer
relationships
through time to
achieve retention
goals
• Interact – Engage
audience and
encourage them to
act / interact with
company or other
customers.
Step
1
Step
2
Step
4
Step
3
• Convert – Achieve
marketing goals e.g.
new fans, leads or
sales
Source: Smart Insights (2010) from REAN (Blanc & Jackson, 2009)
 To
set realistic strategic objectives such as
leads or sales levels for online revenue
contributions for digital channels emarketing managers need to:
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assess the level of customer Internet access
and activity for different markets
Assess online market share that a particular
organisation has achieved
share of customers who are influenced by using
the digital channel but purchase using another
channel
share of customers who purchase using the
digital channel.

Achieve 10 per cent online revenue contribution within two years;

Achieve first or second position in category penetration in the countries within which we
operate (this is effectively online market share and can be measured through visitor
rankings such as Hitwise or better by online revenue share;

Cost reduction of 10 per cent in marketing communications within two years;

Increase retention of customers by 10 per cent;

Increase by 20 per cent within one year the number of sales arising from a certain
target market, e.g. 18–25-year-olds;

Create value-added customer services not available currently;

Improve customer service by providing a response to a query within two hours, 24 hours
per day, seven days a week;

All other objectives to be achieved profitably giving a return on investment in a three
year period.
E
Shop
 E Procurement
 E Mall
 E Auctions
 Virtual Communities
 Collaboration Platforms
 Third Party Marketplaces
 Value Chain Integrators
 Value Chain Service Providers
 Information Broakerage
 Trust and other Services
1. Web presence
2. E-commerce
3. Integrated
e-commerce
4. E-business
Services available
Brochureware or
interaction with product
catalogues and customer
service
Transactional ecommerce on buy-side
or sell-side. Systems
often not integrated
Buy and sell-side
integrated with ERP
or legacy systems.
Personalisation of
services
Full integration
between all internal
organisational
processes and
elements of the value
network
Organizational
scope
Departments acting
independently,
e.g. marketing
department, IS department
Co-ordination through
steering committee or
e-commerce manager
Cross-organisational
Across the enterprise
and beyond
(extraprise)
Transformation
Technological
infrastructure
Technology and new
responsibilities
identified for ecommerce
Internal business
processes and
company structure
Change to e-business
culture, linking of
business processes
with partners
Strategy
Limited
Sell-side e-commerce
strategy, not well
integrated with business
strategy
E-commerce
strategy integrated
with business
strategy using a
value-chain
approach
E-business strategy
incorporated as part of
business strategy
Strategic options for a company in relation to the importance of the
Internet as a channel
 •Subscription
access to content
 •Pay Per View content access
 •CPM Display advertising
 •CPC advertising on site
 •Sponsorship of sections, content or widgets
 •Affiliate revenue (CPA or CPC)
 •Subscriber data for e-mail marketing
 •Access to customers for research purposes
Stages in target marketing strategy development
A
clear differentiation of the proposition
from competitors based on product features
or service quality
 •Target
market segment(s) that the
proposition will appeal to
 •How
the proposition will be communicated
to site visitors and in all marketing
communications. Developing a tag line can
help this
 Cheaper
to retain customers than recruit
new ones
 Lifetime value and greater ‘share of wallet’
 Customers can become advocates
 Value can be a source of competitive
advantage
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Incentives and collectables can encourage
further purchases and return visits to your site
Can help you drive thought leader strategy for
B2B e.g. give white papers for free
Can lock them in to your brand and stop churn /
switching
Customers consolidate number of websites they
use over time so ensure your site is a favourite
 Understand
expectations: customer
research,, site benchmarking, customer
scenarios
 Set and communicate the service promise:
guarantees or promises
 Delivering the service promise: on-site
support, employee support, physical
fulfilment, logistics, delight the customer.
http://www.smartinsights.com/di
gital-marketing-strategy/onlinevalue-proposition/online-valueproposition-examples/
 Your
USP online…
 Links to your brand positioning and tells customers
who you are, what you offer, which markets you serve
and what makes you different.
 It identifies to customers why they should click on
the site, return, register, buy and share their
experiences. It’s a point of difference from
competitors.
http://www.impactbnd.com/b
log/10-value-propositionsyou-wish-you-had
Source: Smart Insights 2014

Review effectiveness of communications and
web pages. Can your customers progress through
each hurdle?
1. Exposure – is the information there long enough
for a customer?
2. Attention – what grabs the attention?
Movement? Colour?
3. Comprehension & perception – how does the
customer interpret the stimulus?
4. Yielding & acceptance – is the information
accepted by the customer?
5. Retention – how well can the customer recall
their experience?

Awareness
Interest
Desire
Action
does your
decision-making

differ for the

following purchases:
1. Buying some
 Problem Identification
breakfast cereal
 Information Search
 Evaluation of Alternatives 2. Buying a car
 Purchase
3. Buying a music
 Post-purchase Evaluation
album from a
brand new band
4. Buying your first
home

 How
Source: Chaffey & Smith, 2013
The IDIC approach provides a framework for
using the web effectively to form and build
relationships:
1. Customer identification – identify customers on
first and subsequent visits through cookies /
login
2. Customer differentiation – build a profile to
segment customers
3. Customer interaction – on-site interactions
such as customer service questions or create a
tailored product
4. Customer communications – personalisation or
mass-customisation of content or emails
according to segmentation.

 http://www.youtube.com/watch?v=Ovj4hFxko7c
Source: Smashing Design Magazine
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1.
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9.
User-centred design (Bevan, 1999) starts with
understanding the nature and variation between user
groups:
Who are the important users?
What is their purpose for accessing the site?
How frequently will they visit?
What experience and expertise do they have?
What nationality are they? Can they read your language?
What type of information are they looking for?
How will the use the information? Read it online, print
it, download it, share it?
What type of browser or platform will they use? How fast
will their links be?
How large a screen will they have and with how many
colours?
 •‘Compare.
Buy. Save’. Kelkoo (www.kelkoo.com)
 •‘Earth’s biggest selection’. Amazon
(www.amazon.com)
 •‘Search
the largest inventory of cars and
trucks on the Internet. More than 1.5 million
listings, updated daily’ (www.autotrader.com)
 •The Citibank site design (www.citibank.com) uses
a range of techniques to illustrate its core
proposition and OVP. The main messages are
 –Welcome to Citibank: The one-stop solution
for all your financial needs
 –Look for a product or service; Learn about a
financial product; Find a location
 Deise
et al (2000) and Chaston (2000) suggest
four positioning options:
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Product performance excellence
Price performance
Transactional Excellence
Relationship Excellence
 These
positioning options have much in
common with Porter’s generic competitive
strategies of cost leadership and
differentiation
 However
unlike Porter’s belief, Kim et al
(2004) concluded that for online businesses
‘integrated strategies that combine elements
of cost leadership and differentiation will
outperform cost leadership or differentiation
strategies’
Autotrader site (www.autotrader.co.uk) clearly communicates its proposition
BA ‘Have you clicked yet?’ campaign web site