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Marketing Strategy In Internet Marketing Huzefa Fakhri Jinyi Shao 15 th March 2005 Stages Of Internet Marketing (Exhibit 1.2 The Seven-Stage Cycle of Internet Marketing) Introduction Links And Alignment Between Business- Unit And Marketing Strategy Basic Review Of Marketing Strategy

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marketing strategy in internet marketing

Marketing Strategy In Internet Marketing

Huzefa Fakhri

Jinyi Shao

15th March 2005

  • Links And Alignment Between Business- Unit And Marketing Strategy
  • Basic Review Of Marketing Strategy
  • Internet Marketing Strategy: Pure Plays
  • Internet Marketing Strategy: Bricks-and-Mortar
  • eBay Example
the link
The Link
  • Business Strategy Directs choice for Marketing Strategy
  • Provides Direction, Guidance And Benchmarks
  • Business Strategy Parameters >>Choice of Marketing Mix
criteria to assess alignment
Criteria To Assess Alignment
  • Goal Alignment
  • Resource Alignment
  • Activity Alignment
  • Implementation Alignment
alignment exhibit 3 1 assessing the fit between business unit strategy and marketing strategy
Alignment (Exhibit 3.1 Assessing the Fit between Business-Unit Strategy and Marketing Strategy)

Goal Alignment

Implementation Alignment


Resource Alignment

Activity Alignment

marketing strategy a basic review
Marketing Strategy: A Basic Review

Key Concepts in Marketing Strategy

  • Segmentation
      • Actionable
      • Meaningful
  • Target Market Selection
  • Positioning
      • Application
  • Marketing Mix
marketing strategy decisions exhibit 3 2 marketing strategy decisions
Marketing Strategy Decisions(Exhibit 3.2 Marketing-Strategy Decisions)



Positioning and Target-Market Selection



segment prioritization exhibit 3 4 prioritizing segments
Segment Prioritization (Exhibit 3.4 Prioritizing Segments)

Buyer Readiness Stage




Trend/Market Leaders

Willingness to Pay

resource allocation timing
Resource allocation, Timing

Resource Allocation

  • Based on the prioritization of their target segments


  • Reallocation
  • Crossover Marketing (e.g. marketing of movies)
Pure PlayInternet Marketing Scenarios(Exhibit 3.6 Marketing-Strategy Formulation for Pure-Play Vs. Bricks-and-Mortar Firms)
  • Bricks And Mortar

Online Business-Unit Strategy

Business-Unit Strategy

Marketing Strategy for Online Business

Integrated Marketing Strategy

  • Choices
  • 1. Segmentation
  • 2. Target market selection
  • 3. Positioning

Marketing Strategy for Offline Business

Marketing Strategy for Online Business

  • Choices
  • 1. Same vs. different segment
  • 2. Same vs. different target market
  • 3. Same vs. different positioning
internet marketing strategy pure plays
Internet Marketing Strategy: Pure Plays

Segmentation for Pure Plays

  • Bases for Segmentation
  • Effective Segmentation
    • Meaningful
    • Actionable
    • Financially attractive
target market selection
Target Market Selection
  • Segment Size and Growth
  • Structural Attractiveness
  • Company Objectives and Resources
target market strategies
Target Market Strategies
  • Mass Market Strategy
  • Niche Market Strategy
  • Growth Market Strategy
  • Positioning Strategies
  • Positioning Plan
positioning cont
Positioning (Cont…)
  • Positioning Strategies
    • Features
    • Perceived Benefits
    • Usage Occasions
    • User Category
    • Competitive Positioning
    • Product Class Positioning
    • Hybrid
positioning cont17
Positioning (Cont…)
  • Positioning Plan
    • Actual Product Positioning
    • Ideal Product Positioning
    • Strategies for Ideal Product Positioning
    • Select and Implement most promising Alternative
    • Compare New Actual with Ideal Position
perceptual maps exhibit 3 7 perceptual map for the online automobile industry
Perceptual MapsExhibit 3–7: Perceptual Map for the Online Automobile Industry

Information-Only Site

  • GM
  • Ford
  • Honda
  • Kelley Blue Book

Manufacturer Site(One specific line of cars)

Aggregate Site(Many different lines of cars)

  • CarPoint
  • Autobytel
  • Cars Direct

Direct Purchasing-Only Site

internet marketing strategy bricks and mortar
Internet Marketing Strategy: Bricks-and-Mortar

Segmentation for BAMs Moving Online

  • No Change(e.g. Business-to-Business)
  • Market Expansion (e.g.
  • Market Reclassification (
  • Reclassified Expansion (e.g.Targeting& Positioning)
Change in Segmentation Characteristics Due to Internet(Exhibit 3.9 Bricks-and-Mortar Segmentation Scenarios)
  • Reclassified — Expansion


  • Market Expansion
  • Market Reclassification


  • No Change



targeting for bams moving online exhibit 3 11 bricks and mortar targeting scenarios
Targeting for BAMs Moving Online (Exhibit 3.11 Bricks-and-Mortar Targeting Scenarios)

Customer Similarity

Same Customers

Different Customers

Serve Same Segment Online as Offline

Serve New Segment Online

Blanket Targeting

New Opportunity

Entire Current Segment

Serve Part of Offline Segment as Well as New Segment Online

Beachhead Targeting

Bleed-Over Targeting

Serve a Portion of Offline Segment Online

Portions of a Segment

positioning exhibit3 12 bricks and mortar positioning scenarios and guidelines
Positioning (Exhibit3.12 Bricks-and-Mortar Positioning Scenarios and Guidelines)

Different Customers

Same Customers

  • New Opportunity Targeting
  • Blanket Targeting
  • Borrow heavily from existing offline positioning
  • Tout basic advantages of the Internet—convenience and accessibility
  • Reposition entirely
  • Position differentiations that cater to the new segment

Entire Segment

  • Beachhead Targeting
  • Bleed-Over Targeting
  • Also borrow from offline positioning
  • Focus more, however, on needs of the smaller group
  • Stress value-add of the Internet
  • Use dual positioning
  • Leverage existing positioning
  • Position added benefits, such as augmented offerings via the Internet (e.g., increased product customizability)

Portions of a Segment

Customer Similarity


Thank you !

Any Questions Or Comments!