The Internet micro-environment
<ul><li>“ We have only two sources of competitive advantage:  </li></ul><ul><li>the ability to  learn more about our custo...
Source: European Interactive Advertising Association Number of B2C online Purchases in Europe during January-June 2007
 
The Internet marketing environment
Micro Environment <ul><li>The Marketplace </li></ul><ul><li>Customers </li></ul><ul><li>Suppliers </li></ul><ul><li>Compet...
The Marketplace <ul><li>Refers to the interactions between all the elements   </li></ul>Competitive forces Value chain New...
Competitive forces
 
 
 
 
Value creation model
 
New channels
 
 
Location of trading  <ul><li>Virtual marketplace </li></ul><ul><li>Electronic marketplace </li></ul><ul><li>What represent...
Different types of online trading location
Commercial arrangements Negotiated deal (www.ec21.com) brokerrred deal (www.screentrade.co) auction (www.ebay.com) Fixed p...
  Alternative perspectives on business models
Customers  <ul><li>Online customers  </li></ul>Demand analysis & Conversion modeling Online Buyer  behavior
Demand analysis & conversion modeling Understanding the  Potential and actual  Volume of visitors To site The extent to wh...
Assessing customer demand <ul><li>Need to assess: </li></ul><ul><ul><li>Access to Internet  (ACCESS) </li></ul></ul><ul><u...
 
CONVERSION MODELS <ul><li>Conversion of potential visitor to actual visitor to repeat visitor </li></ul><ul><li>Awareness ...
A model of the Internet marketing conversion process
 
Online buyer behavior webographics Usage location Access drive Connection speed Usage type Usage level
Customer persona & scenario analysis Thumbnail description Of a type of person  Developed for  different personas Set of t...
Models of online behavior <ul><li>Lewis & Lewis (1997) </li></ul><ul><li>E-Consultancy (2004) </li></ul><ul><li>Hierarchy ...
Lewis & Lewis (1997) <ul><li>Five different types of web users </li></ul><ul><li>Directed information seekers: only go for...
E-Consultancy (2004) <ul><li>On the basis of UK retail sites  </li></ul><ul><li>Classification on the basis of online shop...
Select supplier (enquire) ‘ Tracker’ Completing ‘ Hunter’ Researching ‘ Explorer’ Browsing Directed goal-oriented Undirect...
Hierarchy of Response Models
Competitors & suppliers
Intermediaries <ul><li>Are the firms that help a company to promote, sell and distribute its products/services. </li></ul>...
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internet marketingx 3 4

  1. 1. The Internet micro-environment
  2. 2. <ul><li>“ We have only two sources of competitive advantage: </li></ul><ul><li>the ability to learn more about our customers faster than the competition and </li></ul><ul><li>the ability to turn that learning into action faster than the competition. ” </li></ul>-- Jack Welch, CEO of GE, outlining his competitive strategy for the next century Competitive Advantage...
  3. 3. Source: European Interactive Advertising Association Number of B2C online Purchases in Europe during January-June 2007
  4. 5. The Internet marketing environment
  5. 6. Micro Environment <ul><li>The Marketplace </li></ul><ul><li>Customers </li></ul><ul><li>Suppliers </li></ul><ul><li>Competitors </li></ul><ul><li>Intermediaries </li></ul>
  6. 7. The Marketplace <ul><li>Refers to the interactions between all the elements </li></ul>Competitive forces Value chain New channel Location of trading Commercial agreements New business &revenue models
  7. 8. Competitive forces
  8. 13. Value creation model
  9. 15. New channels
  10. 18. Location of trading <ul><li>Virtual marketplace </li></ul><ul><li>Electronic marketplace </li></ul><ul><li>What representation do company have </li></ul>Types of marketplace location
  11. 19. Different types of online trading location
  12. 20. Commercial arrangements Negotiated deal (www.ec21.com) brokerrred deal (www.screentrade.co) auction (www.ebay.com) Fixed price sale (www.dominos.com) barter (www.intagio.com) Pure markets (shares dealing online
  13. 21.   Alternative perspectives on business models
  14. 22. Customers <ul><li>Online customers </li></ul>Demand analysis & Conversion modeling Online Buyer behavior
  15. 23. Demand analysis & conversion modeling Understanding the Potential and actual Volume of visitors To site The extent to which they convert to the outcomes
  16. 24. Assessing customer demand <ul><li>Need to assess: </li></ul><ul><ul><li>Access to Internet (ACCESS) </li></ul></ul><ul><ul><li>Proportion of customers influenced by channel (CHOOSE) </li></ul></ul><ul><ul><li>Proportion of customers who buy direct (BUY) </li></ul></ul>
  17. 26. CONVERSION MODELS <ul><li>Conversion of potential visitor to actual visitor to repeat visitor </li></ul><ul><li>Awareness efficiency </li></ul><ul><li>Attractibility efficiency </li></ul><ul><li>Contact efficiency </li></ul><ul><li>Conversion efficiency </li></ul><ul><li>Retention efficiency </li></ul>
  18. 27. A model of the Internet marketing conversion process
  19. 29. Online buyer behavior webographics Usage location Access drive Connection speed Usage type Usage level
  20. 30. Customer persona & scenario analysis Thumbnail description Of a type of person Developed for different personas Set of tasks a customer wants for desired outcome
  21. 31. Models of online behavior <ul><li>Lewis & Lewis (1997) </li></ul><ul><li>E-Consultancy (2004) </li></ul><ul><li>Hierarchy of Response Models </li></ul>
  22. 32. Lewis & Lewis (1997) <ul><li>Five different types of web users </li></ul><ul><li>Directed information seekers: only go for information, not typically plans for buying </li></ul><ul><li>Undirected information seekers: like to browse, mostly clicks on banner advertisements </li></ul><ul><li>Directed Buyers: purchase specific products online, compares the features </li></ul><ul><li>Bargain Hunters: find offers, known as compers </li></ul><ul><li>Entertainment seekers: look for enjoyment and contests </li></ul>
  23. 33. E-Consultancy (2004) <ul><li>On the basis of UK retail sites </li></ul><ul><li>Classification on the basis of online shopping behavior </li></ul>
  24. 34. Select supplier (enquire) ‘ Tracker’ Completing ‘ Hunter’ Researching ‘ Explorer’ Browsing Directed goal-oriented Undirected, exploratory Destination purchase (buy) Define requirements Assess supplier capabilities ‘ Inspire me’ ‘ What’s out there’
  25. 35. Hierarchy of Response Models
  26. 36. Competitors & suppliers
  27. 37. Intermediaries <ul><li>Are the firms that help a company to promote, sell and distribute its products/services. </li></ul><ul><li>Provides info about the destination sites </li></ul><ul><li>Can be independent or owned </li></ul><ul><li>Also known as cybermediaries </li></ul>

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