The document discusses various strategies for market entry by new and existing firms. It describes first movers as firms that enter the market first to take advantage of being the sole providers initially, but need to advertise aggressively to build brand awareness and prevent new competitors. Alliances allow new firms to partner with established companies, while fast followers use their existing brand names to expand into new markets. Brand extension involves using an existing brand across online and offline stores. The document also outlines techniques for electronic customer relationship management (e-CRM) like permission marketing, affiliate marketing, and viral marketing.

2. Essentials For Market Entry Firm`s brand name Management`s Strength`s Operational Strength`s Capital resources

3. Types Of Market Entry Strategies FOR NEW FIRMS First Movers Alliances FOR EXISTING FIRMS Fast Followers Brand Extender

4. First Movers Entering first into the market Taking the advantages of user awareness followed by consumer transactions & experiences then grow brand strength Eg amazon.com ebay.com etrade.com

5. Concept – First Movers First movers experience short lived monopoly They then become the only providers for few months During that period competitors come in the market as entry cost is low To prevent new entrants in the market , first movers need to advertise aggressively Objective is building brand (site) awareness Majority of the marketing budget is spend on high visibility advertising in mass media to strengthen brand Brand strengthening will create less chances of customers to pay the switching cost

6. Limitations Of First Mover`s Lack of trust & loyalty Lack of financial depth Lack of Brand reputation Production facilities needed to meet customer demands once the product succeeds Site visits do not translate into purchase

7. Alliance To ally themselves with established firms (Firms having established their brand names , production & distribution facilities , financial resources need to launch a business ) Eg Brainplay an e-tailer of children`s goods entered into alliance with KB toys unit to form new online presence called Kbkids.com

8. Fast Followers Using existing brand name to expand or enter market Eg Barnes & Noble , world`s largest book retailer , formed barnesandnoble.com after the success of amazon.com

9. Brand Extender Mixing of online branding with offline stores Already having the advantage of existing brand and relationship Brand extenders do not separately set up online stores rather but instead integrate with online firms Eg Walmart

10. E-CRM Customer relationship is the next step once the company enters into the market Public relations and advertising media vital for establishing relationship Three important techniques for E-CRM are : Permission Marketing Affiliate Marketing Viral Marketing

11. Permission Marketing Marketing strategy in which companies obtain permission from consumers before sending them information or promotional messages Sending information helps in developing relationship with customers When consumers agree they are opting in and when consumers do not agree they are opting out Eg companies asking for email from customers

12. Affiliate Marketing Affiliate adds link to the company`s website on its own site and encourage its visitors When one website agrees to pay another website a commission for new business opportunities it refers to the site Also it can be upon the number of clicks , flat fees , or combination of both E.g. Ebay`s affiliates program pays $4 for each visitor who become a registered user

13. Viral Marketing Process of getting customers to pass along a company`s marketing message to friends , family and colleagues Online version of word of mouth E.g. half.com is using the strategy by giving $5 to the person when his friend , family , colleague spends $10 on first order (People are asked to give the name and email address for the friends and relatives whom they want to tell about the site)

14. Brand Leveraging Using the power of existing brand to acquire new customers for a new product or service Eg Tab was the first to introduce diet cola drinks , Coka-Cola ultimately succeeded in dominating the market by leveraging the coke brand to a new product called Diet Coke