online business models and market strategy
DESCRIPTION
Presentation adapted from original by Pinny Gniwisch for McGill Online Marketing CourseTRANSCRIPT
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Strategy without tactics is the slowest route to victory.
Tactics without strategy is the noise before defeat.
A strategy is a long term
plan of action in order to
achieve a particular
outcome.
A tactic is a specific method or action that contributes to achieving a goal.
8 Keys to a business
model
1. Value Proposition“The brand promise”
Success
Find the info I need quickly and easily
Get breaking news as it happens
Find practically any item.
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• Brand Personality
• User Values
• Emotional Rewards
• Functional Benefits
• Product Features
Brand Pyramid
• Smart. Innovative. Honest.
• Efficient. Effective
• I feel smarter. My curiosity is satisfied
• I find stuff faster. It’s easy
• Fast, accurate
Brand Pyramid
Examples of Value propositions:
• Better prices
• Fast and attentive customer service
• Superior quality
• Easy to use / convenient
• Huge selection
• Customizable
• Community
2. Revenue Model
Types of Revenue Models
• Ad Revenue: AOL
• Subscription: Netflix
• Mixed Ad/Subscription: New York Times
• Sales- Retail: Amazon
• Transaction Fee: E*Trade
• Affiliate: Linkshare
3. Market Opportunity
4. Competitive Environment
What do they have in common?
When it comes to competitors
REMEMBER THE INFORMATION ECONOMY.
Who is competing with you on
CUSTOMER ATTENTION.
You might be surprised.
5. Competitive Advantage
5. Competitive Advantage
Types of competitive advantage:
• Cost leadership: Make it / sell it cheaper
• Differentiation: Unique value that customers will pay a premium for.
• Focus Strategy: Targeted, niche products or markets
FIRST MOVER ADVANTAGE?
6. Marketing Tactics
Search SEO/SEM Email
Comparison
Shopping Engines
Viral / ContentMarketin
g
Social Media / WOM
Affiliates
Media
7. Organizational Development
8. Management team
Internet Business Models
B2C B2B
C2C/C2B
Internet business models
P
PEOPLE
The 4 P’s of Marketing
Products
• Products can be digital (e.g. software)
• Technology aids with developing new products, whether digital or not
Price
• Easier access to comparative websites allows consumers to find lowest price
• Organisations need to differentiate themselves, but should not rely on price
Place(ment)
• Digital products can be digitally distributed (e.g. download MP3)
• Stores can be online (e.g. Amazon)
Promotion
• The Internet provides a wealth of promotional tools
• Advertising, personal sales, promotions, public relations and more can be conducted online
• Importantly: customers as promoters
What about “new” Ps?
Idris Mootee’s 4 New P’s
1. Personalization
Internet allows for Mass Customization
• Marketing
• Products
• Experience
Converse allows customers to create their own shoes.
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1. Personalization
2. Participation
• Social media and user generated content
• Consumers collaborate with companies to create products
• Rapid feedback loop
2. Participation
Doritos Participation
• Crash the SuperBowl - UGC Ads
• Viralocity: Name The Flavour
• SuggestionBox / Facebook Page
Ratings and Reviews
3. Predictive modeling
Peer-to-Peer• Most trusted is “someone like
me”
• Social networks encourage interactions
• Word of mouth can be more easily tracked
• Equip engaged users with tools to share and promote
Developing a marketing plan
1. Know yourself and your market
• Who are we as a brand and offering?
• Who are our customers and what are their needs?
• What is the social context?
2. Strategic analysis
Thorough market analysis
• Strengths
• Weaknesses
• Opportunities
• Threats
Porter’s 5 Forces
1.Competitors:Those sites that offer the same product, service, or information as your site.
2.Potential new entrants: Your site-less off-line competitors as well as new companies entering the industry via a Website.
3.Customers: Visitors and potential visitors to your Website and your competitors’ sites.
4.Suppliers: Those companies that supply you with the products (or parts if you are a manufacturer) and/or services offered on your site. Other suppliers are the Web hosting, software, etc.
5.Substitutes: Other means and sources for the same products, services, or information as your Website provides.
3. Set objectives
•What are the desired outcomes?
•What are the specific goals?
•How will success be measured (KPIs)?
4. Generate strategies and tacticsSTRATEGY
What are you trying to do?
TACTICS
How, when and where are you going to do it?
5. Evaluate tactical plan
• Budget and Resources
• Prioritize
• Develop
6. Implement
Just do it
7. Track, Analyze, OptimizeCapture KPIs:
• Ad metrics (impressions, clicks, CTR, CPC, CPA)
• Website experience (visits, PPV, bounce %, TOS, CR)
• Sales metrics (Revenue, AOV, Margin %, $PV, A/S, ROA)
• Lead generation metrics (Leads, Opt-ins, Followers, Fans)
7. Track, Analyze, OptimizeTurn the data on its head:
• Look for +/- anomalies
• How does day / time impact results?
• Which targets perform best?
• What communication elements are working or not?
• Which pages convert best?
• What products generate the highest conversion rate
7. Track, Analyze, OptimizeTweak your efforts mid-stream
• Scheduling / day-parting
• Update creative
• Change offers
• Adjust media budgets and placements
ANATOMY OF A MARKETING CAMPAIGN
REACH > ENGAGE > CONVERT > SHARE
FACEBOOK PAGE
GOOGLE ADWORDS
BANNER ADVERTISING
ORGANIC SEARCH
LANDING PAGE
SOCIAL MEDIA
OFFLINE W.O.M.