Marketing Strategy In Internet Marketing  <ul><li>Huzefa Fakhri </li></ul><ul><li>Jinyi Shao </li></ul><ul><li>15 th  Marc...
Stages Of Internet Marketing (Exhibit 1.2 The Seven-Stage Cycle of Internet Marketing)
Introduction <ul><li>Links And Alignment Between Business- Unit And Marketing Strategy </li></ul><ul><li>Basic Review Of M...
The Link <ul><li>Business Strategy Directs choice for Marketing Strategy </li></ul><ul><li>Provides Direction, Guidance An...
Criteria To Assess Alignment <ul><li>Goal Alignment  </li></ul><ul><li>Resource Alignment </li></ul><ul><li>Activity Align...
Alignment  ( Exhibit 3.1 Assessing the Fit between Business-Unit Strategy and Marketing Strategy) Goal Alignment Activity ...
Marketing Strategy: A Basic Review <ul><li>Key Concepts in Marketing Strategy </li></ul><ul><li>Segmentation </li></ul><ul...
Marketing Strategy Decisions   (Exhibit 3.2 Marketing-Strategy Decisions) Product Promotion Price Distribution Positioning...
Segment Prioritization  (Exhibit 3.4 Prioritizing Segments)   <ul><ul><li>Buyer Readiness Stage </li></ul></ul>Segmentatio...
Resource allocation, Timing <ul><li>Resource Allocation </li></ul><ul><ul><li>Based on the prioritization of their target ...
Internet Marketing Scenarios (Exhibit 3.6 Marketing-Strategy Formulation for Pure-Play Vs. Bricks-and-Mortar Firms)   <ul>...
Internet Marketing Strategy: Pure Plays <ul><li>Segmentation for Pure Plays </li></ul><ul><li>Bases for Segmentation </li>...
Target Market Selection <ul><li>Segment Size and Growth </li></ul><ul><li>Structural Attractiveness  </li></ul><ul><li>Com...
Target Market Strategies <ul><li>Mass Market Strategy </li></ul><ul><li>Niche Market Strategy </li></ul><ul><li>Growth Mar...
Positioning <ul><li>Positioning Strategies </li></ul><ul><li>Positioning Plan </li></ul>
Positioning (Cont…) <ul><li>Positioning Strategies </li></ul><ul><ul><li>Features  </li></ul></ul><ul><ul><li>Perceived Be...
Positioning (Cont…) <ul><li>Positioning Plan </li></ul><ul><ul><li>Actual Product Positioning </li></ul></ul><ul><ul><li>I...
Perceptual Maps Exhibit 3–7: Perceptual Map for the Online Automobile Industry Information-Only Site Direct Purchasing-Onl...
Internet Marketing Strategy: Bricks-and-Mortar <ul><li>Segmentation for BAMs Moving Online </li></ul><ul><li>No Change   (...
Change in Segmentation Characteristics Due to Internet ( Exhibit 3.9 Bricks-and-Mortar Segmentation Scenarios) <ul><li>Mar...
Targeting for BAMs Moving Online  (Exhibit 3.11 Bricks-and-Mortar Targeting Scenarios) Entire Current Segment Portions of ...
Positioning  (Exhibit3.12 Bricks-and-Mortar Positioning Scenarios and Guidelines) <ul><li>Blanket Targeting </li></ul><ul>...
eBay  <ul><li>www.ebay.com </li></ul>
<ul><li>Thank you   ! </li></ul><ul><li>Any Questions Or Comments! </li></ul>
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Huzefa and Jinyi: Marketing Strategy in Internet Marketing

  1. 1. Marketing Strategy In Internet Marketing <ul><li>Huzefa Fakhri </li></ul><ul><li>Jinyi Shao </li></ul><ul><li>15 th March 2005 </li></ul>
  2. 2. Stages Of Internet Marketing (Exhibit 1.2 The Seven-Stage Cycle of Internet Marketing)
  3. 3. Introduction <ul><li>Links And Alignment Between Business- Unit And Marketing Strategy </li></ul><ul><li>Basic Review Of Marketing Strategy </li></ul><ul><li>Internet Marketing Strategy: Pure Plays </li></ul><ul><li>Internet Marketing Strategy: Bricks-and-Mortar </li></ul><ul><li>eBay Example </li></ul>
  4. 4. The Link <ul><li>Business Strategy Directs choice for Marketing Strategy </li></ul><ul><li>Provides Direction, Guidance And Benchmarks </li></ul><ul><li>Business Strategy Parameters >>Choice of Marketing Mix </li></ul>
  5. 5. Criteria To Assess Alignment <ul><li>Goal Alignment </li></ul><ul><li>Resource Alignment </li></ul><ul><li>Activity Alignment </li></ul><ul><li>Implementation Alignment </li></ul>
  6. 6. Alignment ( Exhibit 3.1 Assessing the Fit between Business-Unit Strategy and Marketing Strategy) Goal Alignment Activity Alignment Implementation Alignment Resource Alignment Fit
  7. 7. Marketing Strategy: A Basic Review <ul><li>Key Concepts in Marketing Strategy </li></ul><ul><li>Segmentation </li></ul><ul><ul><ul><li>Actionable </li></ul></ul></ul><ul><ul><ul><li>Meaningful </li></ul></ul></ul><ul><li>Target Market Selection </li></ul><ul><li>Positioning </li></ul><ul><ul><ul><li>Application </li></ul></ul></ul><ul><li>Marketing Mix </li></ul>
  8. 8. Marketing Strategy Decisions (Exhibit 3.2 Marketing-Strategy Decisions) Product Promotion Price Distribution Positioning and Target-Market Selection
  9. 9. Segment Prioritization (Exhibit 3.4 Prioritizing Segments) <ul><ul><li>Buyer Readiness Stage </li></ul></ul>Segmentation Prioritization <ul><ul><li>Attitude </li></ul></ul><ul><ul><li>Trend/Market Leaders </li></ul></ul><ul><ul><li>Willingness to Pay </li></ul></ul>
  10. 10. Resource allocation, Timing <ul><li>Resource Allocation </li></ul><ul><ul><li>Based on the prioritization of their target segments </li></ul></ul><ul><li>Timing </li></ul><ul><ul><li>Reallocation </li></ul></ul><ul><ul><li>Crossover Marketing (e.g. marketing of movies) </li></ul></ul>
  11. 11. Internet Marketing Scenarios (Exhibit 3.6 Marketing-Strategy Formulation for Pure-Play Vs. Bricks-and-Mortar Firms) <ul><li>Bricks And Mortar </li></ul><ul><ul><li>Pure Play </li></ul></ul>Online Business-Unit Strategy Marketing Strategy for Online Business <ul><li>Choices </li></ul><ul><li>1. Segmentation </li></ul><ul><li>2. Target market selection </li></ul><ul><li>3. Positioning </li></ul>Business-Unit Strategy Integrated Marketing Strategy Marketing Strategy for Offline Business Marketing Strategy for Online Business <ul><li>Choices </li></ul><ul><li>1. Same vs. different segment </li></ul><ul><li>2. Same vs. different target market </li></ul><ul><li>3. Same vs. different positioning </li></ul>
  12. 12. Internet Marketing Strategy: Pure Plays <ul><li>Segmentation for Pure Plays </li></ul><ul><li>Bases for Segmentation </li></ul><ul><li>Effective Segmentation </li></ul><ul><ul><li>Meaningful </li></ul></ul><ul><ul><li>Actionable </li></ul></ul><ul><ul><li>Financially attractive </li></ul></ul>
  13. 13. Target Market Selection <ul><li>Segment Size and Growth </li></ul><ul><li>Structural Attractiveness </li></ul><ul><li>Company Objectives and Resources </li></ul>
  14. 14. Target Market Strategies <ul><li>Mass Market Strategy </li></ul><ul><li>Niche Market Strategy </li></ul><ul><li>Growth Market Strategy </li></ul>
  15. 15. Positioning <ul><li>Positioning Strategies </li></ul><ul><li>Positioning Plan </li></ul>
  16. 16. Positioning (Cont…) <ul><li>Positioning Strategies </li></ul><ul><ul><li>Features </li></ul></ul><ul><ul><li>Perceived Benefits </li></ul></ul><ul><ul><li>Usage Occasions </li></ul></ul><ul><ul><li>User Category </li></ul></ul><ul><ul><li>Competitive Positioning </li></ul></ul><ul><ul><li>Product Class Positioning </li></ul></ul><ul><ul><li>Hybrid </li></ul></ul>
  17. 17. Positioning (Cont…) <ul><li>Positioning Plan </li></ul><ul><ul><li>Actual Product Positioning </li></ul></ul><ul><ul><li>Ideal Product Positioning </li></ul></ul><ul><ul><li>Strategies for Ideal Product Positioning </li></ul></ul><ul><ul><li>Select and Implement most promising Alternative </li></ul></ul><ul><ul><li>Compare New Actual with Ideal Position </li></ul></ul>
  18. 18. Perceptual Maps Exhibit 3–7: Perceptual Map for the Online Automobile Industry Information-Only Site Direct Purchasing-Only Site Manufacturer Site (One specific line of cars) Aggregate Site (Many different lines of cars) <ul><ul><li>GM </li></ul></ul><ul><ul><li>Ford </li></ul></ul><ul><ul><li>Honda </li></ul></ul><ul><ul><li>Edmunds.com </li></ul></ul><ul><ul><li>Kelley Blue Book </li></ul></ul><ul><ul><li>CarPoint </li></ul></ul><ul><ul><li>Autobytel </li></ul></ul><ul><ul><li>Cars Direct </li></ul></ul>
  19. 19. Internet Marketing Strategy: Bricks-and-Mortar <ul><li>Segmentation for BAMs Moving Online </li></ul><ul><li>No Change (e.g. Business-to-Business) </li></ul><ul><li>Market Expansion (e.g. www.formages.com ) </li></ul><ul><li>Market Reclassification (e.g.r eflect . com) </li></ul><ul><li>Reclassified Expansion (e.g. T argeting & P ositioning) </li></ul>
  20. 20. Change in Segmentation Characteristics Due to Internet ( Exhibit 3.9 Bricks-and-Mortar Segmentation Scenarios) <ul><li>Market Expansion </li></ul><ul><li>Reclassified — Expansion </li></ul><ul><li>Market Reclassification </li></ul>No No Yes Yes <ul><li>No Change </li></ul>
  21. 21. Targeting for BAMs Moving Online (Exhibit 3.11 Bricks-and-Mortar Targeting Scenarios) Entire Current Segment Portions of a Segment Different Customers Same Customers Blanket Targeting New Opportunity Beachhead Targeting Bleed-Over Targeting Customer Similarity Serve Same Segment Online as Offline Serve a Portion of Offline Segment Online Serve New Segment Online Serve Part of Offline Segment as Well as New Segment Online
  22. 22. Positioning (Exhibit3.12 Bricks-and-Mortar Positioning Scenarios and Guidelines) <ul><li>Blanket Targeting </li></ul><ul><li>New Opportunity Targeting </li></ul><ul><li>Bleed-Over Targeting </li></ul>Portions of a Segment Entire Segment <ul><li>Beachhead Targeting </li></ul>Same Customers Different Customers <ul><ul><li>Borrow heavily from existing offline positioning </li></ul></ul><ul><ul><li>Tout basic advantages of the Internet—convenience and accessibility </li></ul></ul><ul><ul><li>Reposition entirely </li></ul></ul><ul><ul><li>Position differentiations that cater to the new segment </li></ul></ul><ul><ul><li>Also borrow from offline positioning </li></ul></ul><ul><ul><li>Focus more, however, on needs of the smaller group </li></ul></ul><ul><ul><li>Stress value-add of the Internet </li></ul></ul><ul><ul><li>Use dual positioning </li></ul></ul><ul><ul><li>Leverage existing positioning </li></ul></ul><ul><ul><li>Position added benefits, such as augmented offerings via the Internet (e.g., increased product customizability) </li></ul></ul>Customer Similarity
  23. 23. eBay <ul><li>www.ebay.com </li></ul>
  24. 24. <ul><li>Thank you  ! </li></ul><ul><li>Any Questions Or Comments! </li></ul>

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