‘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.

Internal and external influences on Internet marketing strategy

A digital marketing strategy is needed

because…

…it provides a consistent direction for online marketing

activities

…the company can achieve its

hierarchy of objectives

…it means analysis of the external environment,

internal resources and capabilities will

take place

…following it will help the company achieve

competitive advantage

Gives a focus to choice of target

markets, positioning and the use of the marketing mix

It helps us to understand

which strategies and tactics

should not be pursued

Tells us how resources will be

deployed and how the

organisation will be structured to

achieve the strategy.

New proposition for customers Getting more customers (acquisition) Converting customers Improving experience Improving delivery of offers Improving the infrastructure to enhance

marketing capabilities

A website is likely to be central to an internet marketing strategy…

Also: Partner with online intermediaries e.g. portals,

social networks and infuencers like bloggers… Use social media marketing on own pages with

user-generated content but also using social networks like Facebook, Google+, LinkedIn, Twitter, Pinterest, etc

Use email, mobile, apps and databases as communications and relationship-building tools.

Link with offline marketing communications. Reduce costs, generate revenue, communicate

and brand.

Source: Smart Insights (2010) from REAN (Blanc & Jackson, 2009)

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 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.

E Shop E Procurement E Mall E Auctions Virtual Communities Collaboration Platforms Third Party Marketplaces Value Chain Integrators Value Chain Service Providers Information Broakerage Trust and other Services

•Subscription access to content •Pay Per View content access •CPM Display advertising •CPC advertising on site •Sponsorship of sections, content or

widgets •Affiliate revenue (CPA or CPC) •Subscriber data for e-mail marketing •Access to customers for research

purposes

Stages in target marketing strategy development

A clear differentiation of the proposition from competitors based on product features or service quality

•Target market segment(s) that the proposition will appeal to

•How the proposition will be communicated to site visitors and in all marketing communications. Developing a tag line can help this

Cheaper to retain customers than recruit new ones

Lifetime value and greater ‘share of wallet’ Customers can become advocates Value can be a source of competitive

advantage Incentives and collectables can encourage

further purchases and return visits to your site Can help you drive thought leader strategy for

B2B e.g. give white papers for free Can lock them in to your brand and stop churn /

switching Customers consolidate number of websites they

use over time so ensure your site is a favourite

Understand expectations: customer research,, site benchmarking, customer scenarios

Set and communicate the service promise: guarantees or promises

Delivering the service promise: on-site support, employee support, physical fulfilment, logistics, delight the customer.

Your USP online… Links to your brand positioning and tells

customers who you are, what you offer, which markets you serve and what makes you different.

It identifies to customers why they should click on the site, return, register, buy and share their experiences. It’s a point of difference from competitors.

Source: Smart Insights 2014

http://www.smartinsights.com/digital-marketing-strategy/online-value-proposition/online-value-proposition-examples/

http://www.impactbnd.com/blog/10-value-propositions-you-wish-you-had

Review effectiveness of communications and web pages. Can your customers progress through each hurdle?1. Exposure – is the information there long

enough for a customer?2. Attention – what grabs the attention?

Movement? Colour?3. Comprehension & perception – how does

the customer interpret the stimulus?4. Yielding & acceptance – is the information

accepted by the customer?5. Retention – how well can the customer

recall their experience?

Awareness Interest Desire Action

Problem Identification Information Search Evaluation of

Alternatives Purchase Post-purchase Evaluation

How does your decision-making differ for the following purchases:

1.Buying some breakfast cereal

2.Buying a car3.Buying a music

album from a brand new band

4.Buying your first home

Source: Chaffey & Smith, 2013

The IDIC approach provides a framework for using the web effectively to form and build relationships:

1. Customer identification – identify customers on first and subsequent visits through cookies / login

2. Customer differentiation – build a profile to segment customers

3. Customer interaction – on-site interactions such as customer service questions or create a tailored product

4. Customer communications – personalisation or mass-customisation of content or emails according to segmentation.

http://www.youtube.com/watch?v=Ovj4hFxko7c

Source: Smashing Design Magazine

User-centred design (Bevan, 1999) starts with understanding the nature and variation between user groups:

1. Who are the important users?

2. What is their purpose for accessing the site?

3. How frequently will they visit?

4. What experience and expertise do they have?

5. What nationality are they? Can they read your language?

6. What type of information are they looking for?

7. How will the use the information? Read it online, print it, download it, share it?

8. What type of browser or platform will they use? How fast will their links be?

9. How large a screen will they have and with how many colours?

•‘Compare. Buy. Save’. Kelkoo (www.kelkoo.com)

•‘Earth’s biggest selection’. Amazon (www.amazon.com)

•‘Search the largest inventory of cars and trucks on the Internet. More than 1.5 million listings, updated daily’ (www.autotrader.com)

•The Citibank site design (www.citibank.com)

uses a range of techniques to illustrate its core proposition and OVP. The main messages are

–Welcome to Citibank: The one-stop solution for all your financial needs

–Look for a product or service; Learn about a financial product; Find a location

Deise et al (2000) and Chaston (2000) suggest four positioning options:Product performance excellencePrice performanceTransactional ExcellenceRelationship Excellence

These positioning options have much in common with Porter’s generic competitive strategies of cost leadership and differentiation

However unlike Porter’s belief, Kim et al (2004) concluded that for online businesses ‘integrated strategies that combine elements of cost leadership and differentiation will outperform cost leadership or differentiation strategies’

Autotrader site (www.autotrader.co.uk) clearly communicates its proposition

BA ‘Have you clicked yet?’ campaign web site