electronic commerce creating a successful web presence marketing strategy

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/