online business models and market strategy

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Strategy without tactics is the slowest route to victory.

Tactics without strategy is the noise before defeat.

A strategy is a long term

plan of action in order to

achieve a particular

outcome.

A tactic is a specific method or action that contributes to achieving a goal.

8 Keys to a business

model

1. Value Proposition“The brand promise”

Success

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• Brand Personality

• User Values

• Emotional Rewards

• Functional Benefits

• Product Features

Brand Pyramid

• Smart. Innovative. Honest.

• Efficient. Effective

• I feel smarter. My curiosity is satisfied

• I find stuff faster. It’s easy

• Fast, accurate

Brand Pyramid

Examples of Value propositions:

• Better prices

• Fast and attentive customer service

• Superior quality

• Easy to use / convenient

• Huge selection

• Customizable

• Community

2. Revenue Model

Types of Revenue Models

• Ad Revenue: AOL

• Subscription: Netflix

• Mixed Ad/Subscription: New York Times

• Sales- Retail: Amazon

• Transaction Fee: E*Trade

• Affiliate: Linkshare

3. Market Opportunity

4. Competitive Environment

What do they have in common?

When it comes to competitors

REMEMBER THE INFORMATION ECONOMY.

Who is competing with you on

CUSTOMER ATTENTION.

You might be surprised.

5. Competitive Advantage

5. Competitive Advantage

Types of competitive advantage:

• Cost leadership: Make it / sell it cheaper

• Differentiation: Unique value that customers will pay a premium for.

• Focus Strategy: Targeted, niche products or markets

FIRST MOVER ADVANTAGE?

6. Marketing Tactics

Search SEO/SEM Email

Comparison

Shopping Engines

Viral / ContentMarketin

g

Social Media / WOM

Affiliates

Media

7. Organizational Development

8. Management team

Internet Business Models

B2C B2B

C2C/C2B

Internet business models

P

PEOPLE

The 4 P’s of Marketing

Products

• Products can be digital (e.g. software)

• Technology aids with developing new products, whether digital or not

Price

• Easier access to comparative websites allows consumers to find lowest price

• Organisations need to differentiate themselves, but should not rely on price

Place(ment)

• Digital products can be digitally distributed (e.g. download MP3)

• Stores can be online (e.g. Amazon)

Promotion

• The Internet provides a wealth of promotional tools

• Advertising, personal sales, promotions, public relations and more can be conducted online

• Importantly: customers as promoters

What about “new” Ps?

Idris Mootee’s 4 New P’s

1. Personalization

Internet allows for Mass Customization

• Marketing

• Products

• Experience

Converse allows customers to create their own shoes.

Text

1. Personalization

2. Participation

• Social media and user generated content

• Consumers collaborate with companies to create products

• Rapid feedback loop

2. Participation

Doritos Participation

• Crash the SuperBowl - UGC Ads

• Viralocity: Name The Flavour

• SuggestionBox / Facebook Page

Ratings and Reviews

3. Predictive modeling

Peer-to-Peer• Most trusted is “someone like

me”

• Social networks encourage interactions

• Word of mouth can be more easily tracked

• Equip engaged users with tools to share and promote

Developing a marketing plan

1. Know yourself and your market

• Who are we as a brand and offering?

• Who are our customers and what are their needs?

• What is the social context?

2. Strategic analysis

Thorough market analysis

• Strengths

• Weaknesses

• Opportunities

• Threats

Porter’s 5 Forces

1.Competitors:Those sites that offer the same product, service, or information as your site.

2.Potential new entrants: Your site-less off-line competitors as well as new companies entering the industry via a Website.

3.Customers: Visitors and potential visitors to your Website and your competitors’ sites.

4.Suppliers: Those companies that supply you with the products (or parts if you are a manufacturer) and/or services offered on your site. Other suppliers are the Web hosting, software, etc.

5.Substitutes: Other means and sources for the same products, services, or information as your Website provides.

3. Set objectives

•What are the desired outcomes?

•What are the specific goals?

•How will success be measured (KPIs)?

4. Generate strategies and tacticsSTRATEGY

What are you trying to do?

TACTICS

How, when and where are you going to do it?

5. Evaluate tactical plan

• Budget and Resources

• Prioritize

• Develop

6. Implement

Just do it

7. Track, Analyze, OptimizeCapture KPIs:

• Ad metrics (impressions, clicks, CTR, CPC, CPA)

• Website experience (visits, PPV, bounce %, TOS, CR)

• Sales metrics (Revenue, AOV, Margin %, $PV, A/S, ROA)

• Lead generation metrics (Leads, Opt-ins, Followers, Fans)

7. Track, Analyze, OptimizeTurn the data on its head:

• Look for +/- anomalies

• How does day / time impact results?

• Which targets perform best?

• What communication elements are working or not?

• Which pages convert best?

• What products generate the highest conversion rate

7. Track, Analyze, OptimizeTweak your efforts mid-stream

• Scheduling / day-parting

• Update creative

• Change offers

• Adjust media budgets and placements

ANATOMY OF A MARKETING CAMPAIGN

REACH > ENGAGE > CONVERT > SHARE

EMAIL

FACEBOOK PAGE

GOOGLE ADWORDS

BANNER ADVERTISING

ORGANIC SEARCH

LANDING PAGE

SOCIAL MEDIA

EMAIL

OFFLINE W.O.M.