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AARHUS UNIVERSITYONLINE MARKETING STRATEGYJacob L. Orquin, Ph.D.Department of Business AdministrationAarhus University ASB AU MAPP
AARHUS UNIVERSITYE-BUSINESS MODELS ASB AU MAPP
AARHUS UNIVERSITYSTRATEGY PROCESS USERPILOT read more about the process on: http://userpilot.dk/index.php?id=68 Business goals drive KPI formulation that drive the data collection. Web analytics ask what is happening and directs other quantitative and qualitative studies to answer why it is happening. The data is analysed and action points are generated. Ultimately, the purpose is to make data driven decisions on what to implement and optimize in the online marketing mix. ASB AU MAPP
AARHUS UNIVERSITYSTRATEGY MODEL GUAVA MEDIA ASB AU MAPP
AARHUS UNIVERSITYTHE E-MARKETING PLAN ASB AU MAPP
AARHUS UNIVERSITYONLINE STRATEGY MODEL SOSTAC ASB AU MAPP
AARHUS UNIVERSITYINTERNET AND INDUSTRY STRUCTURE ASB AU MAPP
AARHUS UNIVERSITYDEMAND ANALYSISOnline resources like Google insights should be used to asses searchvolume and demand ASB AU MAPP
AARHUS UNIVERSITYCOMPETITOR ANALYSISDiese et al. (2000) suggest the following equation to assess competitor brand perception:Customer value (brand perception) = Product quality X Service qualityA shortcut to assess competitor performance on customer satisfaction: TDC : 3,7/10 Telmore: 8,6/10 Bibob : 9,6/10 ASB AU MAPP
AARHUS UNIVERSITYINTERMEDIARY ANALYSIS ASB AU MAPP
AARHUS UNIVERSITYINTERNAL MARKETING AUDITThe internal marketing audit asseses company performance on:Business effectiveness• Internet revenue contribution• Cost-benefit analysis of producing and updating websiteMarketing effectiveness• Market share, sales, leads, retention rates etc.Internet effectiveness• Unique visitors, conversion rates, goals etc. ASB AU MAPP
AARHUS UNIVERSITYOPPORTUNITIES / THREATS ASB AU MAPP
AARHUS UNIVERSITYOPPORTUNITIES / THREATS ASB AU MAPP
AARHUS UNIVERSITYSLEPT/PEST ASB AU MAPP
AARHUS UNIVERSITYOBJECTIVE SETTINGClear objectives are critical for the formation of strategies, tactics, and KPI’s.Remember the SMART mnemonic:• Specific• Measurable• Achievable• Realistic• Time-constrained ASB AU MAPP
AARHUS UNIVERSITYSTRATEGIC OBJECTIVE SETTING ASB AU MAPP
AARHUS UNIVERSITYBUSINESS VALUE4 ways of creating business value with e-business proposed by Marchandet al. (1999). ASB AU MAPP
AARHUS UNIVERSITYONLINE REVENUE CONTRIBUTIONDoes online revenue contribution cannibalize offline turnover or wheredoes the market come from? ASB AU MAPP
AARHUS UNIVERSITYSTRATEGY PROCESS A generic strategy process model proposed by chaffey (2007) ASB AU MAPP
AARHUS UNIVERSITY6 KEY DECISIONSThe strategy definition is driven by the objectives and vision. ASB AU MAPP
AARHUS UNIVERSITYMARKET/PRODUCT POSITIONINGWhat could the positioning parameters be for a online music store? ASB AU MAPP
AARHUS UNIVERSITYTARGET MARKET STRATEGY ASB AU MAPP
AARHUS UNIVERSITYTACTICS AND THE MARKETING MIXDefining the 7 P’s in an online context: ASB AU MAPP
AARHUS UNIVERSITYPRODUCTThe internet allows for long tail economics which dramatically affects theproduct variety. ASB AU MAPP
AARHUS UNIVERSITYPRODUCTThe death of the 20/80 rule. Instead:1. Make everything available.2. Cut the price in half. Now lower it.3. Help me find it. ASB AU MAPP
AARHUS UNIVERSITYPRICETwo main approaches:• Start-ups used low-price models to establish customer base• Existing firms transferred existing prices to the webCustomers have focus on price and often use price comparison engineskelkoo, pricerunner, and the Danish EDBpriserHowever, only 8% are aggressive price shoppers! ASB AU MAPP
AARHUS UNIVERSITYPLACEThe internet has large implications on place mainly because of global reach. This can lead to channelconflicts:A communication channel only• Particularly when manufacturers offer an exclusive, or highly selective distribution approach; e.g., Rolex watches• The choice of distribution channel may dilute brand imageA distribution channel to intermediariesA direct sales channel to customers• May not be appropriate when prices vary geographical areas;• no existing contracts/agreements;• low pre-sales and after-sales supportAny combination of the above• Sales representatives may be threatened, however they are important for generating leads ASB AU MAPP
AARHUS UNIVERSITYPROMOTION ASB AU MAPP
AARHUS UNIVERSITYMATCHING COMMUNICATION AND BUYINGBEHAVIOR ASB AU MAPP
AARHUS UNIVERSITYSERVICE P’SParasuraman et al. (1985) suggest that service quality is judged onfollowing parameters: tangibles, reliability, responsiveness, assurance, andempathy.Which service parameters do you think matters the most to onlineshoppers?• ________________• ________________• ________________• ________________• ________________ ASB AU MAPP
AARHUS UNIVERSITYBRANDING ON THE INTERNETTransfer traditional brand onlineLeverage existing brand equity; cautious of the risk that if website is of poor quality in terms of performance,structure & information content, brand identity is negatively affected.Companies like Guiness, Orange, ArgosExtend traditional brand: variantCompanies create slightly different version of their brand on the web; target different segmentsUsed to distinguish from rivals; however might be problems with brand recognition; brand trust & qualityassociations may be damagedPartner with existing digital brandPromote it products in association with a strong Internet brand such as Yahoo! or MSN, example,Waterstones and AmazonCreate new digital brandEntirely new brand; for example, if offline brand has negative connotations or is too traditional; Eggbanking service – part of Prudential; can attract younger segments ASB AU MAPP
AARHUS UNIVERSITYBRAND ARCHITECTURE ASB AU MAPP
AARHUS UNIVERSITYGETTING REAL ON INTERNET TACTICS ASB AU MAPP
AARHUS UNIVERSITYACTIONSWhat’s missing? Adapted from Bager (2009) ASB AU MAPP
AARHUS UNIVERSITYTASKS ASB AU MAPP
AARHUS UNIVERSITYE-CRM PROCES ASB AU MAPP
AARHUS UNIVERSITYORGANIZATIONAL STRUCTURE ASB AU MAPP
AARHUS UNIVERSITYCONTROL - PERFORMANCE MANAGEMENT ASB AU MAPP
AARHUS UNIVERSITYPERFORMANCE MEASUREMENT ASB AU MAPP
AARHUS UNIVERSITYPERFORMANCE MEASUREMENT ASB AU MAPP
AARHUS UNIVERSITYPERFORMANCE MEASUREMENT ASB AU MAPP
AARHUS UNIVERSITYCONTACTJacob L Orquin, Ph.D.Department of Business AdministrationAarhus UniversityE-mail: jalo@asb.dkCheck out my company:www.userpilot.dk ASB AU MAPP
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