session 7 8
DESCRIPTION
TRANSCRIPT
Internet marketing strategy
• ‘The key question is not whether to deploy Internet
technology – companies have no choice if they want to stay
competitive – but how to deploy it.’
Porter, M. (2001) Strategy and the Internet, Harvard Business review, March 2001, 62–78.
Internet marketing strategy
To provide consistent direction for an organization's e-
marketing activities, so that they can integrate with other
marketing activities
E-marketing strategy essentials
• E-marketing strategy is a channel strategy.• Objectives for online contribution %
– sales, service, profitability should drive our strategy.• E-marketing strategy defines how we should:
1. Communicate benefits of using this channel
2. Prioritise audiences targeted through channel
3. Prioritise products available through channel
4. Hit our channel leads & sales targets– Acquisition, Conversion, Retention.
• Channel strategies thrive on differentials.• BUT, need to manage channel integration.
Influences on e-marketing strategy
Acquisition
conversion
Retention
Problems if no E-marketing strategy
Underestimated demand for online servicesMarket share loss
Resource duplicationInsufficient resource
Insufficient customer dataEfficiencies available through online marketing
Opportunities for applying online marketing toolsChanges required to internal IT systems
Inadequate trackingSenior management support limited
Stages in Internet development
No web site
web name
Static web site
Simple interactive web site
User interactive web site
full interactive web site
Stage model
Stage models (Quelch and Klein (1996))
E-business strategy model
1. Web presence 2. E-commerce 3. Integratede-commerce
4. E-business
Services available Brochureware or interaction with product catalogues and customer service
Transactional e-commerce on buy-side or sell-side. Systems often not integrated
Buy and sell-side integrated with ERP or legacy systems. Personalisation of services
Full integration between all internal organisational processes and elements of the value network
Organisational scope Departments acting independently, e.g. marketing department, IS department
Co-ordination through steering committee ore-commerce manager
Cross-organisational Across the enterprise and beyond (extraprise)
Transformation Technological infrastructure Technology and new responsibilities identified for e-commerce
Internal business processes and company structure
Change to e-business culture, linking of business processes with partners
Strategy Limited Sell-side e-commerce strategy, not well integrated with business strategy
E-commerce strategy integrated with business strategy using a value-chain approach
E-business strategy incorporated as part of business strategy
Internet marketing benefits
Tangible benefits• Increased sales from new sales leads giving rise to
increased revenue from:• new customers, new markets• existing customers (repeat-selling)• existing customers (cross-selling)
• Cost reductions from:• reduced time in customer service • online sales• reduced printing and distribution costs of marcomms
Intangible benefits• Corporate image communication• Enhance brand• More rapid, more responsive marketing
communications including PR• Improved customer service• Learning for the future• Meeting customer expectations • Identify new partners, support existing partners• Better management of marketing information and
customer information• Feedback from customers on products
Example objectives
• Achieve 10 per cent online revenue contribution within two years;
• achieve first or second position in category penetration in the countries within which we operate (this is effectively online market share and can be measured through visitor rankings such as Hitwise (Chapter 2) or better by online revenue share;
• cost reduction of 10 per cent in marketing communications within two years;
• increase retention of customers by 10 per cent;• increase by 20 per cent within one year the number of sales
arising from a certain target market, e.g. 18–25-year-olds;• create value-added customer services not available currently;• improve customer service by providing a response to a query
within two hours, 24 hours per day, seven days a week;• all other objectives to be achieved profitably giving a return on
investment in a three year period.