Internet Marketing Strategy

Chapter 04 of Chaffey, D., Ellis-Chadwick, F., Mayer, R., & Johnston, K. (2009). Internet Marketing: Strategy, Implementation and Practice: Financial Times/Prentice Hall.

Ravi Vatrapu

[email protected]

Tuesday, 06-July-2010 Kilen 2.75, CBS, Frederiksberg, Denmark DØK HU2D - Internet Marketing:

Lecture 07

Course Webpage: http://www.itu.dk/people/rkva/2010-Summer-IM/ Facebook Group: http://www.facebook.com/group.php?gid=133258548012 Etherpad: http://ietherpad.com/d5mBZdMDe6 1

Michael Porter on the Internet Porter, M. (2001) Strategy and the Internet. Harvard Business Review, March 2001, 62–78.

‘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.’ 2

To Be or Not To Be: Internet, Consumers, Companies Figure 4.10

Grid of product suitability against market adoption for transactional e-commerce (online purchases) 3

Internet and Business Figure 4.24

Flow chart for deciding on the significance of the Internet to a business

Source

: After Kumar (1999) 4

What is Internet Marketing Strategy  What is strategy?

 ‘Defines how we will meet our objectives’  ‘Sets allocation of resources to meet goals’  ‘Selects preferred strategic options to compete within a market’  ‘Provides a long-term plan for the development of the organisation’ 5

Internet Marketing Strategy: Influences Figure 4.1

Internal and external influences on Internet marketing strategy 6

Internet Marketing Strategy: Options Figure 4.23

Strategic options for a company in relation to the importance of the Internet as a channel 7

Internet Marketing Strategy: Essentials      Internet marketing strategy is a channel strategy.

Objectives for online contribution % – sales, service, profitability should drive our strategy Internet marketing strategy defines how we should: 1.

Communicate benefits of using this channel 2.

3.

4.

Prioritise audiences targeted through channel Prioritise products available through channel  Hit our channel leads & sales targets Acquisition, Conversion, Retention Channel strategies thrive on differentials BUT, need to manage channel integration 8

Internet Marketing Strategy: Problems           Underestimated demand for online services Market share loss Resource duplication Insufficient resource Insufficient customer data Efficiencies available through online marketing Opportunities for applying online marketing tools Changes required to internal IT systems Inadequate tracking Senior management support limited 9

Internet Marketing Strategy: Annual Plans Figure 4.2

Hierarchy of organisation plans including e-marketing plans 10

Internet Marketing Strategy: Planning Framework Figure 4.4

The SOSTAC® planning framework applied to digital Internet marketing strategy development

Source

: Chaffey and Smith (2008) 11

Internet Marketing Strategy: Model Figure 4.5

Dynamic e-business strategy model

Source:

Adapted from description in Kalakota and Robinson (2000) 12

Internet Marketing Strategy: SWOT Analysis Figure 4.7

A generic Internet-specific SWOT analysis showing typical opportunities and threats presented by the Internet 13

Internet Marketing Strategy: Organizational Growth Figure 4.12

Using the Internet to support different organisational growth strategies 14

Internet Marketing Strategy: Target Marketing Figure 4.15

Stages in target marketing strategy development 15

Internet Marketing Strategy: Segmentation Figure 4.17

Customer lifecycle segmentation 16

Internet Marketing Strategy: Organizational Change Figure 4.27

Summary of alternative organisational structures for e-commerce suggested in Parsons

et al

. (1996) 17

D

ISCUSSION

18