e-Marketing Strategy Internet Marketing Strategy Ivan Surjanovic, ivan@ipowerlab.com www.ipowerlab.com

Strategy defines: How to achieve our goals Internet Marketing Strategy Strategy defines: How to achieve our goals How to respond to opportunities and threats in the environment How to outcompete rivals in the long run Strategy = the art of generals… “Generalship”

Management = the art of getting things done! Internet Marketing Strategy Management = the art of getting things done!

Marketing = discovering and satisfying customers’ needs! Internet Marketing Strategy Marketing = discovering and satisfying customers’ needs!

“Nine rules of Marketing” Internet Marketing Strategy “Nine rules of Marketing” 1. Discover target customers’ needs and satisfy them with 4Ps! 2. Discover target customers’ needs and satisfy them with 4Ps! 3. Discover target customers’ needs and satisfy them with 4Ps! 4. Discover target customers’ needs and satisfy them with 4Ps! 5. Discover target customers’ needs and satisfy them with 4Ps! 6. Discover target customers’ needs and satisfy them with 4Ps! 7. Discover target customers’ needs and satisfy them with 4Ps! 8. Discover target customers’ needs and satisfy them with 4Ps! 9. Discover target customers’ needs and satisfy them with 4Ps!

“Creating WOW through Inspiration” (TEDx - YouTube video) 10th rule of marketing? EXCEED expectations! Create WOW!

Strategic Marketing Process 1. Vision 2. Situation Analysis 3. Objectives 4. Strategies and Tactics 5. Implementation 6. Evaluation & Control

1. VISION “Where do we want to be in the future?" Internet Marketing Strategy 1. VISION “Where do we want to be in the future?" Vision statement describes future, desired state of our business / e-business Online brochure => interactive site with search and login => e-commerce => web 2.0 => web 3.0

Internet Marketing Strategy 2. SITUATION ANALYSIS SWOT (Strengths, Weaknesses, Opportunities and Threats) 5C Analysis: Context, Competition, Company, Customer, Collaborators Porter’s Five Forces

3. E-MARKETING STRATEGIC GOALS Internet Marketing Strategy 3. E-MARKETING STRATEGIC GOALS To enhance image To provide information To generate interest To promote To sell online To deliver (fulfill requests) To build relationships

3. E-MARKETING STRATEGIC GOALS Internet Marketing Strategy 3. E-MARKETING STRATEGIC GOALS Make them S.M.A.R.T.: Specific, measurable, attainable, relevant, time-based Examples of online marketing goals: - Increasing online sales by 10% each month - Increasing website conversion rate from 2% to 2.5% by the end of the year - Increasing monthly website traffic (measured by number of unique visitors) by 30% in the next month

4. STRATEGIES AND TACTICS Internet Marketing Strategy 4. STRATEGIES AND TACTICS Strategies: how Tactics: what Strategies: long term Tactics: short term Strategies: general, big picture Tactics: more specific

Internet Marketing Strategy GOALS, STRATEGIES and TACTICS (examples) Goal: Increase online sales by 30% Strategy: Increase customer loyalty Tactics: - Social media (Facebook and Twitter) marketing - e-Newsletter marketing

MARKETING STRATEGY IS ALL ABOUT STP: Internet Marketing Strategy MARKETING STRATEGY IS ALL ABOUT STP: SEGMENTING – TARGETING – POSITIONING! Value proposition : the benefits that a brand offers to its customers. What value does your product provide to customers? What does a product do for your customers? Brand positioning: taking a unique position in the marketplace relative to competition.

Market segmentation for online accounting software

Online segmenting / targeting: Internet Marketing Strategy Online segmenting / targeting: Demographic (e.g. based on age, gender, income) Behavioural (e.g. based on usage or loyalty) Psychographic (e.g. based on attitudes) Geographical targeting Retargeting

Targeting Customer (C) with Marketing Mix (4Ps) Internet Marketing Strategy Targeting Customer (C) with Marketing Mix (4Ps)

Perceptual Map Attribute 2 (e.g. interactivity of the site) Competitor A Competitor B Attribute 1 (e.g. great content on the site) Competitor D Competitor C

Hybrid strategy (Best-value) FOUR GENERIC COMPETITIVE STRATEGIES Cost Leadership Differentiation Focus Hybrid strategy (Best-value) FOUR GENERIC COMPETITIVE STRATEGIES

SWOT STRATEGY MATRIX Internal Factors Strengths (S): Weaknesses (W) External Factors Opportunities (O) BE AGGRESSIVE: Use your strengths to take advantage of great opportunities MAX - MAX: Maximize use of strengths - Maximize opportunities REDESIGN: Redesign your business, fix or neutralize your weaknesses in order to take advantage of opportunities MIN - MAX: Minimize weaknesses - Maximize opportunities Threats (T) DIVERSIFY: Use your strengths in new markets MAX - MIN: Maximize use of strengths - Minimize threats BE DEFENSIVE: Consider divestiture or liquidation MIN - MIN: Minimize weaknesses - Minimize threats

SWOT STRATEGY MATRIX (Example) Strengths (S): - Effective, professionally done website - Innovative, high end products Weaknesses (W) - Low visibility on search engines - Lack of e-commerce capability on the site - Lack of online marketing experience - Expensive product Opportunities (O) - Growing offline and online demand for products - Growing online sales on international markets BE AGGRESSIVE (MAX – MAX) - Advertise on Google locally and internationally REDESIGN (MIN – MAX) - Optimize the site for search engines - Build e-commerce (shopping basket) capability on the site - Hire experienced web marketing professionals Threats (T) - Emerging international competition with lower priced products DIVERSIFY (MAX – MIN) - Build an online brand, build relationships with existing customers through e-newsletter marketing BE DEFENSIVE (MIN – MIN) - Outsource part of the web work internationally - Partner with or acquire international suppliers

Product / Market Strategies Product Growth Market growth Existing Products New Products Existing Markets MARKET PENETRATION STRATEGIES Use Internet to: - sell more to existing customers (better “stomach share”) - sell products to more customers - improve customer loyalty improve customer service , convenience, add value - better inform and educate customers PRODUCT DEVELOPMENT STRATEGIES Use Internet to: - increase product range (introduce new, digital products) - add value to existing products (e.g. online manuals, online updates) - improve payment models (e.g. subscription) New Markets MARKET DEVELOPMENT STRATEGIES Use Internet to: - sell in new countries - sell to new customer segments DIVERSIFICATION STRATEGIES Use Internet to horizontally diversify into related and unrelated businesses Use Internet for (forward and backward) vertical integration

REVENUE MODEL STRATEGIES Internet Marketing Strategy REVENUE MODEL STRATEGIES Direct sale of products or services (e.g. Amazon) Subscription (e.g. Netflix, SurveyMonkey) Advertising (e.g. Google.com, Metrolyrics) Commission based (e.g. eBay; also referal marketing - websites that affiliate their business with Amazon)

Strategic Marketing Process 1. Vision 2. Situation Analysis 3. Objectives 4. Strategies and Tactics 5. Implementation 6. Evaluation & Control

eMarketing Strategy : Recap Internet Marketing Strategy eMarketing Strategy : Recap SWOT – O – STP – 4P

SEVEN KEY STRATEGIC DECISIONS Internet Marketing Strategy SEVEN KEY STRATEGIC DECISIONS What are your market segments? Which segments do you want to target? What is your positioning strategy? Which of the four generic competitive strategies are you going to use? What are your SWOT strategies? What are your product / market strategies? What is your revenue model strategy?

Thank You! Internet Marketing Strategy Ivan Surjanovic, ivan@ipowerlab.com www.ipowerlab.com