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E-Marketing 3Internet Strategy1Lecture ObjectivesoEvaluate the impact of the micro-environment focusing on competitors,intermediaries and market place modelsoDiscuss the key decisions to be made in the development of an e-marketing strategy of Internet Strategy2Figure 2.1 The Internet marketing environment3Business consumer characteristicsoVariation in organisation characteristicsnsize of company(employees or turnover)nindustry sector and productsnorganisation type(private,public,government,not-for-profit)napplication of service(which business activities do purchased products and services support?)ncountry and region.oIndividual rolenrole and responsibility from job title,function or number of staff managednrole in buying decision(purchasing influence)ndepartmentnproduct interestndemographics:age,sex and possibly social group.4Evaluating demand levels(see e-adoption Lecture 1 slide 20)o1.Level of Internet accessnAccess level higher than B2C marketo2.Influences nAccessing and sources supplierso3.Transact onlinenWide variety across Europe 5Online MarketplaceoEssential in creating a long term internet marketingnCustomer segmentsnSearch intermediariesnIntermediaries/media sitesnDestination sites6 An online marketplace map7Competitor AnalysisoBenchmarkingnInternal capabilitiesnDifferent aspects to customer lifecyclenQualitative to quantitativenIn/out sector Financial/non financial measuresnUser experience/expert evaluation8IntermediariesoIntermediaries:facilitates exchange between consumer and business suppliersoSupport B2B and B2C exchangesne.g.Portals:Google,MSN,Yparison sites:n o 9Marketplace ModelsoCompetitive Forces10Porters Five Forces11Marketplace ModelsoCompetitive ForcesoNew Channel Structures12 Disintermediation of a consumer distribution channel showing:(a)the original situation,(b)disintermediation omitting the wholesaler,and(c)disintermediation omitting both wholesaler and retailer13From(a)original situation to(b)disintermediation or(c)reintermediation or countermediation14Marketplace ModelsoCompetitive ForcesoNew Channel StructuresoLocation of Trading15Different Types of Online Trading Location16Marketplace ModelsoCompetitive ForcesoNew Channel StructuresoLocation of TradingoBusiness Models17Alternative Perspectives on Business Models18Revenue ModelsoSubscription to contentoPay per view to documentsoRevenue from CPM display advertisingoRevenue from PPC advertisingoRevenue from sponsorship of contentoAffiliate revenueoAccess to customers for online research19The Development of an E-Marketing StrategyoThe 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 2001,6278.20What is a strategy?n“Defines how we will meet our objectives”n“Sets allocation of resources to meet goals”n“Selects preferred strategic options to compete within a market”n“Provides a long-term plan for the development of the organisation”21E-marketing strategy:essentialsoE-marketing strategy is a channel strategyoObjectives for online contribution%-sales,service,profitability should drive our strategyoE-marketing strategy defines how we should:1.Communicate benefits of using this channel2.Prioritise audiences targeted through channel3.Prioritise products available through channel4.Hit our channel leads&sales targetsnAcquisition,Conversion,RetentionoChannel strategies thrives on differentialsoBUT,need to manage channel integration22 Internal and external influences on Internet marketing strategy23Focus of e-commerce related strategic initiativesoNew customer propositionoCustomer acquisition oCustomer conversion/experienceoCustomer development and growthoEnhancing marketing initiatives24Stages of E-Marketing StrategyoStrategic Analysis/ReviewnInternal audit/analysis e.g.assessing current internet contributionnCustomer researchnResource analysisnAnalysis of micro environmentnAnalysis of macro environmentnAbove results=swot analysis25Stages of E-Marketing StrategyoStrategic Goal SettingnAlign with business objectivesnOnline revenue contributionnSet SMART objectives26Stages of E-Marketing StrategyoStrategy Formulation:generation,review and selection of strategies to achieve strategic objectivesoA number of decisions need to be consideredo1.Market and Product development strategies 27 Using the Internet to support different organisational growth strategies:Ansoffs Growth Matrix28Stages of E-Marketing Strategyo2.Business and revenue models strategies(see earlier notes)o3.Target Market Strategy see next slide29Stages in target marketing strategy development30Stages of E-Marketing Strategyo4.Positioning and differentiation strategynCustomers perception of the product offer relative to those of competitors nOnline positioning based upon four variables(Deise et al.,2000)product quality,service quality,price and fulfilment.nOnline value proposition31Stages of E-Marketing Strategy5.Multi-channel distribution strategy:the flow of products from manufacturer/service provider to end consumer(slide 14/15)32 Strategic options for a company in relation to the importance of the Internet as a channel33Stages of E-Marketing Strategy6.Multi-channel communication strategy:review different types of customer contact with company:Assess the balance between customer channel preference and organisational preferences e.g.TelephoneMailEmail WebPerson34Stages of E-Marketing Strategy7.Online Communication Mix and BudgetDifference between online communications techniques e.g.search engine optimisation,affiliate marketing and email marketing discussed in detail in weeks 5 and 6.8.Organisational Capabilities:challenges:strategystructureskills and staff(e Consultancy,2008)35Lecture SummaryoEvaluate the impact of the micro-environment focusing on competitors,intermediaries and market place modelsoDiscuss the key decisions to be made in the development of an e-marketing strategy 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