electronic commerce creating a successful web presence marketing strategy
TRANSCRIPT
Electronic Commerce
Creating a Successful Web Presence
Marketing Strategy
Business Model
The method by which a firm builds and uses its resources to offer its customers better value than its competitors and to make money doing so!
Two major parts of the business model:Value PropositionFinancial Model
Value Proposition
The value your company adds that would make customers switch to you from their current provider.
Concepts involved in Value PropositionChoice of SegmentsChoice of Focal Customer BenefitsChoice of Unique and Differentiating
Capabilities
Value Proposition
Choice of Segments market size or growth unmet customer needs weak or no competition
Choice of Focal Customer Benefits One or two KEY benefits based on the marketing mix
variables Ex: fast delivery, high quality products, customer service, low-
prices, unique product Choice of Unique and Differentiating Capabilities
Also known as : Core Competencies or Unique Resources Tangible assets (location), Intangible (Brand name) or
corporate skills and capabilities (knowledge of customers)
Financial Models
There are four revenue models: Advertising (sell ads, site sponsorships,
interstituals) Product sales (income from the sales of products,
services, or information) Transaction (revenue from charging a fee or a
taking a % of a transaction) Subscription (subscriber fees for magazines,
information, services, …) Or a combination of these
Revenue Model - Advertising
Revenue Model – Product Sales
Revenue Model – Transaction
eBay fee Structure
http://pages.ebay.com/help/sellerguide/selling-fees.html
Revenue Model – Subscription
Most Mass Marketing Involves One-Way Communications Aimed At Consumers.
The Nature of Communication on the Web
Direct Marketing Involves Two-Way Interactions With Customers.
Average ConsumerAverage Consumer Individual CustomerIndividual Customer
Mass Marketing Vs. One-to-One Marketing
Customer AnonymityCustomer Anonymity Customer ProfileCustomer Profile
Standard ProductStandard Product Customized Market OfferingCustomized Market Offering
Mass ProductionMass Production Customized ProductionCustomized Production
Mass DistributionMass Distribution Individualized DistributionIndividualized Distribution
Mass AdvertisingMass Advertising Individualized MessageIndividualized Message
Mass PromotionMass Promotion Individualized IncentivesIndividualized Incentives
One-Way MessageOne-Way Message Two-Way MessagesTwo-Way Messages
Economies of ScaleEconomies of Scale Economies of ScopeEconomies of Scope
Share of MindShare of Mind Share of CustomerShare of Customer
All CustomersAll Customers Profitable CustomersProfitable Customers
Customer AttractionCustomer Attraction Customer RetentionCustomer Retention
Mass Marketing
One-to-One Marketing
“New” Marketing Approaches
Market SegmentationMarket Targeting
Market Positioning
Market Segmentation
Geographic
Demographic
Psychographic
Behavioral
Age Gender Family Size / Life Cycle Income Occupation Education Religion Race Generation Nationality
OccasionsBenefits
User StatusUsage Rate
Loyalty StatusReadiness Stage
Attitude Toward Product
Market TargetingEvaluating Market Segments
Segment Size and Growth Analyze current sales, growth rates and expected
profitability for various segments. Segment Structural Attractiveness
Consider effects of: competitors, availability of substitute products and, the power of buyers & suppliers.
Company Objectives and Resources Company skills & resources needed to succeed in
that segment(s). Look for Competitive Advantages.
Market TargetingChoosing a Market-Coverage Strategy
Company Resources Product Variability
Product’s Stage in the Life Cycle Market Variability
Competitor’s Marketing Strategies
Company ResourcesCompany Resources
Product VariabilityProduct Variability
Product’s Stage in the Life CycleProduct’s Stage in the Life Cycle
Market VariabilityMarket Variability
Competitor’s Marketing StrategiesCompetitor’s Marketing Strategies
Choosing a Positioning Strategy
Product’s Position - the way the product is defined by consumers on important attributes - the place the product occupies in consumers’ minds relative to competing products.
Marketers must: Plan positions to give their products the greatest
advantage in selected target markets, Design marketing mixes to create these planned
positions.
Creating and Maintaining Brands on the Web
Brand – a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service
Web Brands Make an Impact
Books: Music: Computer Software: Computer Hardware: Clothing: Travel: Autos:
Amazon.com (56%) CDNow (24%) Microsoft (30%) Dell (20%) The Gap (12%) AOL, Yahoo!,
Travelocity (each 8%) Yahoo! (6%)
Purpose of Branding
AttributesAttributes
Quality & Value
Quality & Value
ConsistencyConsistency
DifferentiationDifferentiation
Branding Forms
Brand Awareness – the knowledge that a brand exists
Brand Equity - the set of assets (or liabilities) linked to the brand that add (or subtract) value
Brand Loyalty – A continued behavior associated with a particular brand
Brand Building
Advertising / Promotion Short-term … affects awareness not equity Emotional vs. Rational
Product QualityCustomer Service
Purchase support Post purchase support Information / Personalization
Emotional … Rational …
Customer Service Personalized service based on previous
purchases and inquiries
Other Branding Methods
Brand Extensions
Co-Branding
Choosing Your Name
Six Earmarks of a Good Domain Name1. A good domain name is short.
2. A good domain name is memorable.
3. A good domain name isn't easily confused with others.
4. A good domain name is hard to misspell.
5. A good domain name relates to your business name or core business.
Nameboyhttp://www.nameboy.comNetwork Solutions' NameFetcher http://www.networksolutions.com/purchasing/nameGen.jhtml E-gineer Dominatorhttp://www.e-gineer.com/domainator/