Internet                         Marketing  CPC COMPUTER CONSULTANTS, INC. - WWW.CPCCCI.COM  WEB SOLUTIONS FOR THE BUSINES...
Topic: Internet Marketing                         E-Marketing vs. marketing                         Internet demographics ...
First A Few Facts                    E-Marketing ≠ sales                    Marketing plan ≠ e-Marketing plan             ...
Baseline Definition of e-                          Marketing                  “…IDENTIFYING, UNDERSTANDING,              CO...
Customer Integrated Into                          Process               BEFORE                                      AFTER ...
E-Marketing:      More Than Just Your Website                                                                            O...
Global Online Population               Currently about 1.2 billion               Projected to grow to 1.8 billion by 2010 ...
Websites Worldwide                                                                                                        ...
U.S.Online Ad Spending:       5.9% of the $285 billion total U.S. advertising market in 2006                         $16.9...
Advantages         Democratization of advertising         Reach: Collapsing barriers of time & space         Lower risk of...
Strategic Advantages             Create new sources of competitive advantage             More direct distribution model   ...
Benefit of Creating A “Virtuous Cycle”               Reduce the risk of guessing by letting the community               defi...
Recognize Elements of Value Creation:                                                             Generic Value Chain     ...
Traditional Industry Supply                         Chain                                            LOOK TO BYPASS INTERM...
Rearrange Your Supply Chain:                     Create More Strategic & Symbiotic B2B Relationships                      ...
Disintermediate   LOOK FOR NEW WAYS TO DISINTERMEDIATE THE SUPPLY CHAIN.                                                  ...
Baseline Guidelines      Create an E-marketing plan      Design & linkage            Relationship of all internal websites...
New Paradigm               Sell your idea first                Transparency creates value               Find your actors (a...
Impact on Product Mix                         Product / service strategy                            Shared risk through op...
ALMOST NO      Old 4Ps Paradigm                                                FEEDBACK LOOP.                             ...
New Innovation Paradigm      Democratization of 4Ps paradigm            Collective collaboration            Collective ris...
New Paradigm:                                                               CAPTURING                                     ...
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Internet marketing

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Internet marketing

  1. 1. Internet Marketing CPC COMPUTER CONSULTANTS, INC. - WWW.CPCCCI.COM WEB SOLUTIONS FOR THE BUSINESS COMMITTED TO EXCEL WWW.CPCCCI.COM COPYRIGHT © 2008 CPC COMPUTER CONSULTANTS, INC.Sunday, April 20, 2008 1
  2. 2. Topic: Internet Marketing E-Marketing vs. marketing Internet demographics Advantages New contagions of information Impact on Product Mix New innovation paradigm WWW.CPCCCI.COM 2 COPYRIGHT © 2008 CPC COMPUTER CONSULTANTS, INC.Sunday, April 20, 2008 2
  3. 3. First A Few Facts E-Marketing ≠ sales Marketing plan ≠ e-Marketing plan Most organizations have no: Marketing strategy Marketing plan e-Marketing plan Brand advocacy strategy Good news: The Internet keeps on growing Bad news: Getting harder to be found WWW.CPCCCI.COM 3 COPYRIGHT © 2008 CPC COMPUTER CONSULTANTS, INC.Sunday, April 20, 2008 3
  4. 4. Baseline Definition of e- Marketing “…IDENTIFYING, UNDERSTANDING, COLLABORATIVELY CREATING, AND MEETING A SEGMENT OF HUMAN AND SOCIAL NEEDS, WANTS, DESIRES, WISHES DIGITALLY.” WWW.CPCCCI.COM 4 COPYRIGHT © 2008 CPC COMPUTER CONSULTANTS, INC.Sunday, April 20, 2008 4
  5. 5. Customer Integrated Into Process BEFORE AFTER SUPPLIER CUSTOMER INTERNET CUSTOMERS SUPPLIER MONOLOGUE DIALOGUE ONE WAY ONE-TO-ONE MARKETING MASS COMMUNICATION REAL-TIME STATIC DYNAMIC NO INTERACTION AMONG CUSTOMERS COLLABORATIVE SHOTGUN APPROACH SEGMENTED HARD TO IDENTIFY CUSTOMERS RICH CUSTOMER INTERACTION HARD TO MANAGE CUSTOMERS RICH CUSTOMER DATA WWW.CPCCCI.COM 5 COPYRIGHT © 2008 CPC COMPUTER CONSULTANTS, INC.Sunday, April 20, 2008 5
  6. 6. E-Marketing: More Than Just Your Website OUTSOURCE PARTNERS OTHER BLOGS OTHER BLOGS ADMIN PORTAL - REGIONAL - AGENT COMMUNITIES BRANDED - BY INDUSTRY ACME SITE - BY APPLICATION - PORTALS - REGIONAL SITE LINKING - BY INDUSTRY - BY APPLICATION INDUSTRY - - PORTALS VERTICALS PORTAL PARTNERS FORUM A A SEARCH ENGINES - REGIONALLY B - WORLDWIDE B C BUSINESS RESOURCE HUBS C SMALL BUSINESSES FIRST TIME VISITORS FROM SEARCH ENGINES. B2B PARTNERS WWW.CPCCCI.COM 6 COPYRIGHT © 2008 CPC COMPUTER CONSULTANTS, INC.Sunday, April 20, 2008 6
  7. 7. Global Online Population Currently about 1.2 billion Projected to grow to 1.8 billion by 2010 SOURCE: HTTP://WWW.INTERNETWORLDSTATS.COM/STATS.HTM WWW.CPCCCI.COM 7 COPYRIGHT © 2008 CPC COMPUTER CONSULTANTS, INC.Sunday, April 20, 2008 7
  8. 8. Websites Worldwide 70 MILLION BLOGS IN JUST IN MAY 2007, THE NUMBER REPORTED 4 YEARS. 120K WAS A LITTLE OVER 118 MILLION WORLDWIDE BLOGS BEING ADDED EACH DAY. NETCRAFT NOVEMBER 2006 SURVEY SOURCE: HTTP://NEWS.NETCRAFT.COM/ARCHIVES/WEB_SERVER_SURVEY.HTML WWW.CPCCCI.COM 8 COPYRIGHT © 2008 CPC COMPUTER CONSULTANTS, INC.Sunday, April 20, 2008 8
  9. 9. U.S.Online Ad Spending: 5.9% of the $285 billion total U.S. advertising market in 2006 $16.9 SOURCE: WALL STREET JOURNAL, MAY 25, 2007, PG. B1 WWW.CPCCCI.COM 9 COPYRIGHT © 2008 CPC COMPUTER CONSULTANTS, INC.Sunday, April 20, 2008 9
  10. 10. Advantages Democratization of advertising Reach: Collapsing barriers of time & space Lower risk of product / services innovation Lower cost / higher ROI Digitization of all information Virtual supply chains Virtual markets Virtual real-time interaction with customers & suppliers Scalability Ability to coalesce and reach increasingly fragmented markets Streamline business process WWW.CPCCCI.COM 10 COPYRIGHT © 2008 CPC COMPUTER CONSULTANTS, INC.Sunday, April 20, 2008 10
  11. 11. Strategic Advantages Create new sources of competitive advantage More direct distribution model Reengineer the supply chain Invent new business models Target underserved segments Lower price barrier New delivery methods to reduce capital expenditure and pricing Create more efficient marketplace Create a “virtuous cycle” WWW.CPCCCI.COM 11 COPYRIGHT © 2008 CPC COMPUTER CONSULTANTS, INC.Sunday, April 20, 2008 11
  12. 12. Benefit of Creating A “Virtuous Cycle” Reduce the risk of guessing by letting the community define the need, want, problem, and value proposition Speed development cycles Create precise features / value Create brand advocates Community endorsement COMMUNITY AND FEEDBACK LOOP INTEGRAL PART OF SHAPING PRODUCT WWW.CPCCCI.COM 12 COPYRIGHT © 2008 CPC COMPUTER CONSULTANTS, INC.Sunday, April 20, 2008 12
  13. 13. Recognize Elements of Value Creation: Generic Value Chain VISUAL REPRESENTATION OF WHAT ORGANIZATIONS DO TO CREATE VALUE. MARGIN IS THE DIFFERENCE BETWEEN CUSTOMER PERCEIVED VALUE (CPV) AND COST. THE PRIMARY AND SECOND ACTIVITIES ATTRIBUTE TO COST. COST + PROFIT = $ PRICE (CUSTOMER PERCEIVED VALUE) SUPPORT ACTIVITIES FIRM INFRASTRUCTURE HUMAN RESOURCES MA RG IN TECHNOLOGY DEVELOPMENT PROCUREMENT MARKETING INBOUND OUTBOUND IN OPERATIONS & SERVICE RG LOGISTICS LOGISTICS A SALES M PRIMARY ACTIVITIES WWW.CPCCCI.COM 13 COPYRIGHT © 2008 CPC COMPUTER CONSULTANTS, INC.Sunday, April 20, 2008 13
  14. 14. Traditional Industry Supply Chain LOOK TO BYPASS INTERMEDIARIES. PRODUCTION BASED VALUE COMMERCE BASED VALUE CREATION. CREATION. (TRANSFORMING INPUTS (ARBITRAGE) INTO OUTPUTS) SERVICE VAR OEM END USER PROVIDER RESELLER VALUE CHAIN VALUE CHAIN VALUE CHAIN TYPICAL SERVICE PROVIDER SUPPLY CHAIN EACH ENTITY LOOKS VERY LITTLE BEYOND THE NEXT PARTNER IN THE FOOD CHAIN. INCREMENTAL VALUE ADDED. WWW.CPCCCI.COM 14 COPYRIGHT © 2008 CPC COMPUTER CONSULTANTS, INC.Sunday, April 20, 2008 14
  15. 15. Rearrange Your Supply Chain: Create More Strategic & Symbiotic B2B Relationships Think in terms of solving the common objectives, interests, and obstacles. BUILD MORE STRATEGIC & SYMBIOTIC VALUE CHAIN. Pursue common challenges. OEM Pursue common goals. VALUE CHAIN Remove common obstacles. G Achieve collective profitability O SERVICE How? PROVIDER A END USER VALUE CHAIN L By removing inefficiencies and duplicity of efforts in each discrete value chain. Collaborate together to link strategies, VAR validate new applications, how to market them, how to price them, and RESELLER how to launch them, VALUE CHAIN REDUCE DUPLICITY The basic principle is to leverage, link, REDUCE COSTS LEVERAGE RESOURCES and coordinate resources at a INCREASE VALUE strategic level towards achieving the same fundamental goals. WWW.CPCCCI.COM 15 COPYRIGHT © 2008 CPC COMPUTER CONSULTANTS, INC.Sunday, April 20, 2008 15
  16. 16. Disintermediate LOOK FOR NEW WAYS TO DISINTERMEDIATE THE SUPPLY CHAIN. NEW PLAYERS LIKE ARE DISINTERMEDIATING THE OLD SUPPLY CHAIN. IN DOING SO, CONVERTING COST INTERNET $ COST SAVINGS AS A SOURCE OF COMPETITIVE ADVANTAGE. WEB CENTRIC VALUE CHAIN $ COST $ COST $ COST SERVICE OEM RESELLER END USER $ PRICE PROVIDER VALUE CHAIN VALUE CHAIN VALUE CHAIN LEVERAGE BUSINESS MODELS OR DISINTERMEDIATE TO CAPTURE SOURCES OF COMPETITIVE ADVANTAGE. ASP, ON DEMAND, OR B2B RELATIONSHIPS TO CAPTURE COST SAVINGS AND REVENUE SHARING. EVERY STEP ALONG THE WAY (MIDDLEMAN OR CHANNEL) IS A COST POINT. EACH STEP THAT CAN BE OPTIMIZED MEANS A COST SAVINGS THAT CAN CONTRIBUTE TO MORE COMPETITIVE OFFERING. WWW.CPCCCI.COM 16 COPYRIGHT © 2008 CPC COMPUTER CONSULTANTS, INC.Sunday, April 20, 2008 16
  17. 17. Baseline Guidelines Create an E-marketing plan Design & linkage Relationship of all internal websites to target customers, industry sites, suppliers, business sites, portals, blogs SEO plan and strategy for your websites Real-time analytics Communication utilities E-mail, IM, real-time voice, weblogs E-mail list management and opt in / out best practice (CAN-SPAM ACT) Online advertising or “soft branding” E-commerce site WWW.CPCCCI.COM 17 COPYRIGHT © 2008 CPC COMPUTER CONSULTANTS, INC.Sunday, April 20, 2008 17
  18. 18. New Paradigm Sell your idea first Transparency creates value Find your actors (audience) Truth travels fast first Price alone is not Size does not matter - sustainable PlentyOfFish Reengineer your value chain Reduce risk by pushing control out Reinvent your business models Value creation increases at the edge Change the status quo WWW.CPCCCI.COM 18 COPYRIGHT © 2008 CPC COMPUTER CONSULTANTS, INC.Sunday, April 20, 2008 18
  19. 19. Impact on Product Mix Product / service strategy Shared risk through open collaboration Pricing Hyper competitive Convert traffic to advertisement revenue Promotion Community Customer support 24 X 7 and Virtual FAQ, forums, electronic WWW.CPCCCI.COM 19 COPYRIGHT © 2008 CPC COMPUTER CONSULTANTS, INC.Sunday, April 20, 2008 19
  20. 20. ALMOST NO Old 4Ps Paradigm FEEDBACK LOOP. HIGHER RISK OF INNOVATION AND VALUE CREATOR CUSTOMER GUESSING MARKET. PRODUCT PLACE PRICING PROMOTION 4PS WWW.CPCCCI.COM 20 COPYRIGHT © 2008 CPC COMPUTER CONSULTANTS, INC.Sunday, April 20, 2008 20
  21. 21. New Innovation Paradigm Democratization of 4Ps paradigm Collective collaboration Collective risk sharing Collective product innovation Collective IP ownership Citizen marketers will sell “remarkable” ideas Innovators should adopt the 1% rule If you don’t find the “sneezers” or connectors, the 80/20% rule won’t matter Work backwards Build your brand around your idea first. If the community you are targeting does not coalesce and rally around the idea, continuing to build the product is irrelevant Create your own “blue ocean” If you play it safe and go by the rules of your industry, value chain, and business model – you’re dead! Most industries and markets are saturated and highly concentrated. WWW.CPCCCI.COM 21 COPYRIGHT © 2008 CPC COMPUTER CONSULTANTS, INC.Sunday, April 20, 2008 21
  22. 22. New Paradigm: CAPTURING CUSTOMER INTERACTION Collaborative Open Innovation CREATES TREMENDOUS VALUE VALUE INNOVATOR CUSTOMER AND REDUCES RISK. PRODUCT BRAND PROMOTION 4PS WWW.CPCCCI.COM 22 COPYRIGHT © 2008 CPC COMPUTER CONSULTANTS, INC.Sunday, April 20, 2008 22
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