Lecture 5 Marketing Strategy in Internet Marketing

Marketing Strategy in Internet Marketing — Today’s Objectives Objectives will be to: Define the concept of marketing strategy Explore effective segmentation, especially for pure play and bricks-and-mortar (BAM) firms Examine traditional targeting and positioning strategies Discuss the corporate and business-unit strategy of eBay

Marketing Strategy in Internet Marketing Marketing Strategy and the Importance of Fit Segmentation Targeting Positioning Corporate and Business-Unit Strategy of EBay Conclusion

Marketing Strategy in Internet Marketing Marketing Strategy and the Importance of Fit Segmentation Targeting Positioning Corporate and Business-Unit Strategy of EBay Conclusion

Assessing Business-Unit and Marketing Strategy Fit Goal Alignment Implementation Alignment Fit Resource Alignment Activity Alignment

Marketing-Strategy Decisions Product Promotion Positioning and Target-Market Selection Price Distribution

Marketing Strategy in Internet Marketing Marketing Strategy and the Importance of Fit Segmentation Targeting Positioning Corporate and Business-Unit Strategy of EBay Conclusion

Prioritizing Segments Buyer Readiness Stage Segmentation Prioritization Attitude Trend/Market Leaders Willingness to Pay

Marketing-Strategy Formulation for Pure-Play vs. BAM Bricks-and-Mortar Online Business-Unit Strategy Business-Unit Strategy Overall Online Offline Marketing Strategy for Online Business Integrated Marketing Strategy What does the 4 p’s refer to in the e-Marketing Strategy box? The 4 p’s aren’t mentioned in the text, and the arrow near it doesn’t point to anything that looks like 4 p’s. Marketing Strategy for Offline Business Marketing Strategy for Online Business Choices 1. Segmentation 2. Target market selection 3. Positioning Choices 1. Same vs. different segment 2. Same vs. different target market 3. Same vs. different positioning

Perceptual Map for the Online Automobile Industry What does the 4 p’s refer to in the e-Marketing Strategy box? The 4 p’s aren’t mentioned in the text, and the arrow near it doesn’t point to anything that looks like 4 p’s.

Perceptual Map with Customer Preference Clusters What does the 4 p’s refer to in the e-Marketing Strategy box? The 4 p’s aren’t mentioned in the text, and the arrow near it doesn’t point to anything that looks like 4 p’s.

Bricks-and-Mortar Segmentation Scenarios Market Expansion Reclassified— Expansion Yes Changes in Size of Market Segments Market Reclassification No Change No Reason for italics? No Yes Change in Segmentation Characteristics Due to Internet

Marketing Strategy in Internet Marketing Marketing Strategy and the Importance of Fit Segmentation Targeting Positioning Corporate and Business-Unit Strategy of EBay Conclusion

Bricks-and-Mortar Targeting Scenarios Reason for italics?

Marketing Strategy in Internet Marketing Marketing Strategy and the Importance of Fit Segmentation Targeting Positioning Corporate and Business-Unit Strategy of EBay Conclusion

Bricks-and-Mortar Positioning Scenarios and Guidelines Blanket Targeting Borrow heavily from existing offlline positioning Tout basic advantages of the Internet – convenience and accessibility New Opportunity Targeting Reposition entirely Position differentiations which cater to the new segment Entire Segment Beachhead Targeting Also borrow from offline positioning Focus more, however, on needs of the smaller group Stress value-added advantages of the Internet Bleed-Over Targeting Use dual positioning Leverage existing positioning Position added benefits, such as augmented offerings via the Internet (e.g., increased product customizability) Focus of Effort Porrtions of a Segment Reason for italics? Same Customers Different Customers Customer Similarity

Marketing Strategy in Internet Marketing Marketing Strategy and the Importance of Fit Segmentation Targeting Positioning Corporate and Business-Unit Strategy of EBay Conclusion

Breakdown of EBay’s Gross Merchandise Listed Better title?

EBay’s Business-Unit Strategies

Offering-Based Segmentation of Auction Market

Marketing Strategy in Internet Marketing Marketing Strategy and the Importance of Fit Segmentation Targeting Positioning Corporate and Business-Unit Strategy of EBay Conclusion

Marketing Strategy in Internet Marketing — Conclusion Marketing Strategy and Business-Unit Strategy must be properly aligned for maximum impact Both pure play and brick-and-mortar firms can rely on segmentation, targeting, and positioning in the online and offline domains The classical framework for strategic management remains the same; however, networked-economy firms require further consideration.