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Strategy Implementation


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Strategy Implementation

  1. 1. 1 MAR 4933-002 E-Commerce Marketing Fall 2002—Tampa Strategy Implementation Rich Gonzalez November 13, 2002 (Week 12 Wednesday)
  2. 2. 2 URLs (We’ll probably Visit Today)    WSTS?  Web Design Sites
  3. 3. 3 URLs (Extra)  
  4. 4. 4 Agenda November 13, 2002  Ebay Analysis Paper  Brand (Finish)  Digital Based Innovation—Brand  Strategy Implementation—Chapter 8  Due For November 18  Extra Credit Paper
  5. 5. 5 Final Exam  December 11, Wednesday 3:30 PM BSN 2201
  6. 6. 6 Blown To Bits: Extra Credit  Subjects: (use bolded headings) 1. Information Asymmetries 2. Deconstruction 3. Disintermediation 4. Richness vs. Reach 5. Competing on Richness  Analysis Paper: 2-3 Pages, single spaced, relate to discussions in class.  25 points---Due December 2
  7. 7. 7 Analysis Paper # 4  Name 3 ways that eBay changes commerce--And discuss.  Bolded Headings, please  1.5 pages, single spaced, cover sheet  Due November 13, 2002
  8. 8. 8 eBay and Change--AP # 4  From local to global market  Identifies true market value of owned good  How buyers look for unique products  How payments are made in P2P  Marketplace provider has no large overhead: inventory, liability In Class Exercise
  9. 9. 9 eBay and Change--AP # 4  Created a virtual marketplace— online 24/7/365, fast, hi-volume, like stock market, volatile  More sellers going entrepreneurial  Buyers can find anything at any price  Research tool for price comparison In Class Exercise
  10. 10. 10 eBay and Change--AP # 4  Diffused auction pricing model  Customer regulation can work  Country specific –UK, Germany, Spain  Changing society’s perception of value of owned goods  Changes power balance-small entr. Vs. large businesses In Class Exercise
  11. 11. 11 For Today: November 13  Chapter 8—Strategy Implementation
  12. 12. 12 For November 18  Chapter 8—Strategy Implementation  Visit and relate to delivery systems: Assets, People, Systems  Also, Disruptive Technologies
  13. 13. 13 Last Time  Marketing Communications
  14. 14. 14 Seth Godin  The Internet is the greatest direct marketing medium ever invented. It is not “TV.”  1-Stamps are free  2. Speed of testing is 100 times faster  3. Response rates are 15 times higher  4. Frequency is free—you can talk to customers again and again.  5. Printing is free
  15. 15. 15 Traditional Mass MarketingTraditional Mass Marketing  Television ads  A growing number of online companies believe that, although expensive, TV advertising will quickly transmit a marketing message to a large-scale audience. In many cases, offline media is necessary to bring new customers onto the Internet or to make Internet users aware of the brand.  Radio ads  Print ads  Billboards  Superior customer service Other forms of traditional mass media that, like television ads, supplement the online activities of e-commerce firms. Traditional Mass Marketing
  16. 16. 16 Direct CommunicationsDirect Communications  Sales force  Traditional sales reps are finding increased efficiency and customer satisfaction when they are incorporated into the company’s Web environment.  Retail sales  The presence of offline retail products can help build an online brand image.  Customer-service representatives  Users still desire human interaction, and customer service reps can provide the personable touch that users want.  Direct marketing  Firms can customize traditional mailings with new information gained online.  Telemarketing  Using mass phone calls, a firm tries to entice customers to purchase the goods or services. The modes of communication prevalent before the Web existed can still be important components of market communication today. Direct Communications
  17. 17. 17 Brand
  18. 18. 18 A name, term, sign, symbol, design, or some combination that identifies and informs about the products of a firm. Brand Information pill.
  19. 19. 19 The stage at which the consumer knows of a brand, but does not prefer it to competing brands. Brand Recognition
  20. 20. 20 The consumer can, without prompting, retrieve the brand name from memory. Brand Recall Lots $ is spent on advertising to make this happen?
  21. 21. 21 The stage of brand acceptance at which the consumer selects one brand over competing offerings based on previous experience with it. Brand Preference AOL vs. MSN
  22. 22. 22 The stage of brand acceptance at which the consumer refuses to accept alternatives and searchers extensively for the desired good or service. Brand Insistence Brand loyalty
  23. 23. 23 The added value that a certain brand name gives to a product. Generated by performance, social image, value, trustworthiness of the brand. Brand Equity What job website do you always consider when publishing a resume online?
  24. 24. 24 A combination of consumer responses and benefits A set of assets linked to brand name and symbol that add to the value of the product or service. Brand Equity David Aaker
  25. 25. 25 Elements of Brand Equity  Brand Awareness  Brand Loyalty  Quality  Brand Affiliations
  26. 26. 26 Class Exercise  Index Card:  Name, Date
  27. 27. 27 Class Exercise OK. Think. 1. Name the first brand of handheld computer you think of. 2. Name one brand (OUTSIDE OF COMPUTER/SOFTWARE) that Palm could affiliate with to increase Palm brand equity.
  28. 28. 28 Class Exercise x
  29. 29. 29 Palm—Brand Affiliation  Lexus  Sales Teams Equipped With Palms (3,000)  “Lexus Vehicle Software”  Customer Drives—Salesperson Infos
  30. 30. 30 Palm—Brand Affiliation  Information: Interior/Exterior Options Photos Pricing  "We think Palm technology is very innovative and that it will add to the Lexus dealership and purchase experience.“ Lexus VP Marketing  Also, Customers Can Download PDA Files 
  31. 31. 31 What Is a Good Brand? Brand Prestige “Wraparounds” Market Communications CoreCore Product /Product / ServiceService  Mix of offline and online advertising  Emphasizes advantages to AAdvantage membership, including non-expiring miles and online services  Superior service  AAdvantage frequent-flier club  Award-winning Admirals Club lounges  Comfortable chairs  Portable defibrillators on every flight  Safe, on-time transportation from Point A to Point B
  32. 32. 32 What Is a Good Brand? Brand Prestige “Wraparounds” Market Communications CoreCore Product /Product / ServiceService  Word of Mouth  Viral marketing  Online vendors advertise  Search function  Community  Payment facilitationt  Top brand affiliations  Matching buyers and sellers offering a method of exchange—online. In Class Exercise
  33. 33. 33 Conceptual Model of Brand Equity A good brand... Customer Benefits  Confidence  Loyalty  Satisfaction Firm Benefits  Lower marketing costs  Increased margins  Opportunity for brand extensions Brand Awareness  Depth  Breadth Brand Associations  Strength  Relevant  Consistent  Valence  Uniqueness  Memorable  Distinctive “Wraparounds” CoreCore Product /Product / ServiceService Market Communication … provides positive consumer responses... … and benefits both target customers and the firm Source: Keller (1996), Aaken (1996), Strategic Market Research Group, Marketspace Analysis Rayport & Jaworski framework
  34. 34. 34 Types of Brands Traditional BrandsTraditional Brands Online BrandsOnline Brands  The product / service with which the brand is associated was established in the online world. Examples: – Amazon – Yahoo – ZDNet – AOL – Priceline – CDNow – WingspanBank – E*Trade  The product / service with which the brand is associated was established in the online world. Examples: – Amazon – Yahoo – ZDNet – AOL – Priceline – CDNow – WingspanBank – E*Trade  The product / service with which the brand is associated was established offline in the bricks-and-mortar world. Examples: – The Gap – UPS – Dell – J. Crew – McDonald’s – OfficeMax – Ragu – Coca-Cola – Disney  The product / service with which the brand is associated was established offline in the bricks-and-mortar world. Examples: – The Gap – UPS – Dell – J. Crew – McDonald’s – OfficeMax – Ragu – Coca-Cola – Disney Brands were categorized as purely offline or online. Here are samples of such brands.
  35. 35. 35 Branding Element Offline Online 1. Clearly define the brand audience • Limited to manageable number of segments to prevent inconsistent messaging • Could include larger number of segments, with customer-driven messages 2. Understand the customer • Requires understanding of environment, desired purchase and usage experience • Requires more thorough understanding of desired purchase and usage experience in an interactive environment 3. Identify key leverage points in customer experience • Buying process is typically a simplified representation of customer segment behavior with static leverage points • Buying process tends to be more dynamic and flexible 4. Continually monitor competitors • Requires monitoring of competitor advertisements and activities • Competitor advertisements and activities can be monitored online 5. Design compelling and complete brand intent • Brand intent (desired positioning) is designed to address the needs and beliefs of target segments • Greater opportunity for customization of key messages Similarities and Differences in Offline vs. Online Branding ------------------------- ------------------------- ------------------------- ------------------------- --------------------------------------------------
  36. 36. 36 Branding Element Offline Online 6. Execute with integrity • Strong, positive brands are built up over time • Online interactions bring added concerns for security and privacy • Limited familiarity with online brands makes fostering trust more difficult 7. Be consistent over time • Brand intent guides marketing communications • Image reinforced through variety of offline media • Brand intent guides marketing communications • With the ability to customize, one customer’s brand image may be different than another customer’s brand image 8. Establish feedback systems • Collecting and analyzing customer feedback is more time consuming • Sophisticated online-tracking tools allow for anonymous, interactive, quick feedback 9. Be opportunistic • Marketing strategy includes plan for sequenced growth and adjustment of brand based on changing customer needs • Customization for multiple segments and opportunity for early recognition of changing customer needs and corresponding tailoring of brand intent 10. Invest and be patient • Building brand awareness requires significant investment • Building brand loyalty takes time offline, especially because early customer receptivity to brands is difficult to assess (and usually involves market research) • Building brand awareness requires significant investment, especially for those competitors that are not first in their category online • Brands have the potential to generate loyalty more quickly, especially if customers are targeted effectively Offline vs. Online Branding (cont’d)
  37. 37. 37  Site Visit  Meta Market Switchboard  Brings together many buyers and sellers based upon the activities that customers engage in to achieve particular goals
  38. 38. 38  Positioning: Lifelong Career Network  Market Share?  >50% Of Online-Recruitment Advertising  Risky Ads In Super Bowl
  39. 39. 39 Key Branding Elements Key Elements Rating Rationale Rating Rationale 1. Clearly Define the Brand Audience Within the employer market, targets all types of companies, from startups to large corporations Appeals to a wide range of job seekers, but specializes in the intern and entry- level positions 2. Understand the Customer Offers highly personalized services for the job seekers, addresses security concerns and offers value-added services (resume help, advice, interactive communication with other job seekers) Only site to offer privacy feature that allows job seeker to select which companies have access to their resume 3. Identify Key Leverage Points in Customer Experience Provides interactive career information for customers that are not necessarily looking, thus increasing the probability that they will become job seekers Allows recruiting process to become internal through and its proprietary Softshoe technology, and eliminates concerns about adding an additional venue for recruiting 4. Continually Monitor Competitors Currently a leader in providing unique services to its consumers, but does not have some features that competitors do Adopts successful features of the site, but usually on a lesser scale 5. Design Compelling and Complete Brand Intent Message of “there’s a better job out there” combined with diversified strategic alliances and “intern-to-CEO” strategy convey the idea that can find you that better job Message of “all the hottest jobs at all the hottest companies” was overshadowed in the spring with controversy over tastefulness of ads that were rejected by networks 6. Execute with Integrity Offers password and ID protection, as well as some ability to selectively decide when and where your resume can seen Offers most specialized security measures for individual users (prevents current employers from viewing resume) 7. Be Consistent Over Time In the short time since “there’s a better job out there” messaging Recent “Hottest Hand on the Web Campaign” different from past branding messages 8. Establish Feedback Systems Offers extensive feedback system for users, allowing users to even select categories of information / feedback Also offers feedback mechanism for users, although less specialized 9. Be Opportunistic Partners with firms that could potentially be competitors, rather than trying eliminate competition Took a risk with Super Bowl advertising, even without a compelling ad campaign, to raise brand awareness 10. Invest and Be Patient Willing to invest heavily in the offline world to gain brand recognition Also willing to invest in the offline world to gain brand recognition Online Branding Best-in-Class Comparison
  40. 40. 40 End Here