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ANALYSING THE INTERNET MARKETING STRATEGY OF AMAZON THROUGH FIVE-STEP POSITIONING PLAN  <br />GROUP 1<br />Monday, 9 Augus...
GROUP 1:<br />Mochammad Larimba Mandrawata<br />Gaurav<br />Sukito<br />Yen-Heng Kuo<br />Naif Balabid<br />MARK 901 Inter...
Outline<br />General Concept<br />Problem Definition and Independent Research<br />Conclusion<br />Learning Activities<br ...
General Concept<br />Internet Marketing<br />Segmentation<br />Targeting<br />Positioning: Five-Step Positioning Plan<br /...
Internet Marketing (e-Marketing)<br />It is the process of building and maintaining customer relationships through online ...
STP of Marketing<br />6<br />MARK 901 Internet Application for Marketing<br />
Marketing Strategy Decision<br />7<br />MARK 901 Internet Application for Marketing<br />
Pure Plays and BAM<br />Pure plays- firms that only have an online business<br />BAMs- firms that have offline operations<...
Differences between marketing strategy of Pure plays and BAMs<br />9<br />MARK 901 Internet Application for Marketing<br />
Segmentation for Pure Plays<br />It involves the breaking up of a market of customers into large, identifiable groups, or ...
Geographic
Psychographic
Cognitive and behavourial</li></ul>10<br />MARK 901 Internet Application for Marketing<br />
Effective Segmentation<br />11<br />MARK 901 Internet Application for Marketing<br />
Targeting<br />The target market is the segment (or segments) of the market most attractive to the firm based on profitabi...
Targeting<br />Mass Marketing<br />This strategy markets to all customers, attempting to fill all their needs and wants of...
Targeting<br />Niche Marketing<br />To serve one or a few segment, and these segments are not the largest segments, but co...
Targeting<br />Growth Marketing<br />Choosing one or more smaller but fast-growing segments that will turn into a niche or...
Positioning<br />Positioning is the act of designing the company offer and image so that it occupies a distinct and valued...
Five-Step Positioning<br />Norton Paley<br />has over 25 years of corporate experience<br />has authored seven books<br />...
Positioning: Five-Step Positioning<br />Step One : Indentify actual product<br />-	Through some customer interviews or que...
Positioning: Five-Step Positioning<br />Step Two : Determine ideal product position<br />-  This step determines how to po...
Positioning: Five-Step Positioning<br />Step Three : Develop alternative strategies for achieving ideal product position<b...
Positioning: Five-Step Positioning<br />Step Four : Select and implement the most promising alternative<br />- This step d...
Positioning: Five-Step Positioning<br />Step Five : Compare new actual position with ideal position<br />	- This step must...
Problem Definition and Independent Research<br />Question: Select an online company and describe how it creates its five-s...
About Amazon.com<br /><ul><li>Amazon.com is considered as a “pioneer in online retailing”
Up to his date is
Stating that itself “strives to be Earth's most customer-centric company where people can find and discover virtually anyt...
Offers a range of products and services, from books, movie, music, electronics, to web services and selling services</li><...
History of Amazon.com<br />Summarized Timeline<br /><ul><li>1994: Founded by Jeff Bezos
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Five step of positioning plan

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Five step of positioning plan

  1. 1. ANALYSING THE INTERNET MARKETING STRATEGY OF AMAZON THROUGH FIVE-STEP POSITIONING PLAN <br />GROUP 1<br />Monday, 9 August 2010<br />1<br />MARK 901 Internet Application for Marketing<br />
  2. 2. GROUP 1:<br />Mochammad Larimba Mandrawata<br />Gaurav<br />Sukito<br />Yen-Heng Kuo<br />Naif Balabid<br />MARK 901 Internet Application for Marketing<br />2<br />
  3. 3. Outline<br />General Concept<br />Problem Definition and Independent Research<br />Conclusion<br />Learning Activities<br />Questions<br />3<br />MARK 901 Internet Application for Marketing<br />
  4. 4. General Concept<br />Internet Marketing<br />Segmentation<br />Targeting<br />Positioning: Five-Step Positioning Plan<br />4<br />MARK 901 Internet Application for Marketing<br />
  5. 5. Internet Marketing (e-Marketing)<br />It is the process of building and maintaining customer relationships through online activities to facilitate the exchange of ideas, products, and services that satisfy the goals of both parties (Mohammed, R.A. Et al, 2004)<br />It is marketing in electronic environments, primarily on the Internet, on one or more of its services, or offline by enterprises that produce and sell Internet-related products.(Siegal, 2006)<br />5<br />MARK 901 Internet Application for Marketing<br />
  6. 6. STP of Marketing<br />6<br />MARK 901 Internet Application for Marketing<br />
  7. 7. Marketing Strategy Decision<br />7<br />MARK 901 Internet Application for Marketing<br />
  8. 8. Pure Plays and BAM<br />Pure plays- firms that only have an online business<br />BAMs- firms that have offline operations<br />8<br />MARK 901 Internet Application for Marketing<br />
  9. 9. Differences between marketing strategy of Pure plays and BAMs<br />9<br />MARK 901 Internet Application for Marketing<br />
  10. 10. Segmentation for Pure Plays<br />It involves the breaking up of a market of customers into large, identifiable groups, or segments<br />It reveals potential marketing opportunities and provides a firm with clearer guidance for product development and marketing strategy<br />Bases for segmentation include:<br /><ul><li>Demographic
  11. 11. Geographic
  12. 12. Psychographic
  13. 13. Cognitive and behavourial</li></ul>10<br />MARK 901 Internet Application for Marketing<br />
  14. 14. Effective Segmentation<br />11<br />MARK 901 Internet Application for Marketing<br />
  15. 15. Targeting<br />The target market is the segment (or segments) of the market most attractive to the firm based on profitability, cost to serve, accessibility and/or growth potential<br />12<br />MARK 901 Internet Application for Marketing<br />
  16. 16. Targeting<br />Mass Marketing<br />This strategy markets to all customers, attempting to fill all their needs and wants of every segment in a market<br />Differentiated strategy (e.g. P&G)<br />Undifferentiated strategy (e.g. Coke-Cola)<br />13<br />MARK 901 Internet Application for Marketing<br />
  17. 17. Targeting<br />Niche Marketing<br />To serve one or a few segment, and these segments are not the largest segments, but consist of enough customers to make it worthwhile<br /> (e.g. Super luxury car market)<br />14<br />MARK 901 Internet Application for Marketing<br />
  18. 18. Targeting<br />Growth Marketing<br />Choosing one or more smaller but fast-growing segments that will turn into a niche or a larger segment<br /> ( e.g.?)<br />15<br />MARK 901 Internet Application for Marketing<br />
  19. 19. Positioning<br />Positioning is the act of designing the company offer and image so that it occupies a distinct and valued place in the target customers’ minds.<br />Philip Kotler(2003)<br />16<br />MARK 901 Internet Application for Marketing<br />
  20. 20. Five-Step Positioning<br />Norton Paley<br />has over 25 years of corporate experience<br />has authored seven books<br />Manage to Win<br />Successful Business Planning<br />Marketing for the Non-marketing Executive: An Integrated Management<br />Resource Guide<br />The Marketing Strategy Desktop Guide<br />Pricing Strategies and Practices<br />Marketing Principles and Tactics Everyone Must Know<br />The Manager’s Guide to Competitive Strategies, 2nd Ed.<br />17<br />MARK 901 Internet Application for Marketing<br />
  21. 21. Positioning: Five-Step Positioning<br />Step One : Indentify actual product<br />- Through some customer interviews or questionnaires, we are able to identify the variables important to consumers and the perceived position of a product<br />18<br />MARK 901 Internet Application for Marketing<br />
  22. 22. Positioning: Five-Step Positioning<br />Step Two : Determine ideal product position<br />- This step determines how to position a product in a more favorable location on perpetual map <br />19<br />MARK 901 Internet Application for Marketing<br />
  23. 23. Positioning: Five-Step Positioning<br />Step Three : Develop alternative strategies for achieving ideal product position<br /> - In order to achieve an ideal position, a firm must to:<br /> - move your product to a new position<br /> - introduce a separate, new product, and leave current product untouched or withdraw<br />20<br />MARK 901 Internet Application for Marketing<br />
  24. 24. Positioning: Five-Step Positioning<br />Step Four : Select and implement the most promising alternative<br />- This step depends on choosing the plan that is the most favorable and consistent with a company’s objectives, resources and strengths<br />21<br />MARK 901 Internet Application for Marketing<br />
  25. 25. Positioning: Five-Step Positioning<br />Step Five : Compare new actual position with ideal position<br /> - This step must also include measures to track the success of the positioning move<br />22<br />MARK 901 Internet Application for Marketing<br />
  26. 26. Problem Definition and Independent Research<br />Question: Select an online company and describe how it creates its five-step positioning plan.<br />Observed website: Amazon.com<br />23<br />MARK 901 Internet Application for Marketing<br />
  27. 27. About Amazon.com<br /><ul><li>Amazon.com is considered as a “pioneer in online retailing”
  28. 28. Up to his date is
  29. 29. Stating that itself “strives to be Earth's most customer-centric company where people can find and discover virtually anything they want to buy online”
  30. 30. Offers a range of products and services, from books, movie, music, electronics, to web services and selling services</li></ul>24<br />MARK 901 Internet Application for Marketing<br />
  31. 31. History of Amazon.com<br />Summarized Timeline<br /><ul><li>1994: Founded by Jeff Bezos
  32. 32. 1995: Launched on the web, limited to selling books
  33. 33. 1997: Went public
  34. 34. 1998: Expanded to music store, acquiring international offices
  35. 35. 1999: Expanded to toys, hardware, electronics, Opens its auction site
  36. 36. 2001: its first fourth-quarter profit
  37. 37. 2002: Expanded to web services
  38. 38. 2003: its second profit
  39. 39. 2004: its first-ever annual profit</li></ul>25<br />MARK 901 Internet Application for Marketing<br />
  40. 40. Positioning at Amazon<br />26<br />MARK 901 Internet Application for Marketing<br />
  41. 41. Conclusion<br />27<br />MARK 901 Internet Application for Marketing<br />
  42. 42. Learning Activities: InterGrating (Interactive & Integrating) CS<br />eBay versus Amazon: analysing internet marketing positioning strategies on both companies.<br />28<br />MARK 901 Internet Application for Marketing<br />
  43. 43. Learning Activities<br />Discussion Points:<br />In your opinion, why and how does Amazon position (changing focus) itself in this online purchasing competition? <br />In your opinion, why and how does eBay position (reaction) itself in this online purchasing competition?<br />29<br />MARK 901 Internet Application for Marketing<br />
  44. 44. Question<br />30<br />MARK 901 Internet Application for Marketing<br />
  45. 45. 31<br />MARK 901 Internet Application for Marketing<br />

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