Electronic Commerce Creating a Successful Web Presence Marketing Strategy

Business Model  The method by which a firm builds and uses its resources to offer its customers better value than its competitors and to make money doing so! Two major parts of the business model:  Value Proposition  Financial Model

Value Proposition  The value your company adds that would make customers switch to you from their current provider. Concepts involved in Value Proposition  Choice of Segments  Choice of Focal Customer Benefits  Choice of Unique and Differentiating Capabilities

Value Proposition  Choice of Segments market size or growth unmet customer needs weak or no competition  Choice of Focal Customer Benefits One or two KEY benefits based on the marketing mix variables Ex: fast delivery, high quality products, customer service, low- prices, unique product  Choice of Unique and Differentiating Capabilities Also known as : Core Competencies or Unique Resources Tangible assets (location), Intangible (Brand name) or corporate skills and capabilities (knowledge of customers)

Financial Models  There are four revenue models: Advertising (sell ads, site sponsorships, interstituals) Product sales (income from the sales of products, services, or information) Transaction (revenue from charging a fee or a taking a % of a transaction) Subscription (subscriber fees for magazines, information, services, …) Or a combination of these

Revenue Model - Advertising

Revenue Model – Product Sales

Revenue Model – Transaction

eBay fee Structure

Revenue Model – Subscription

Most Mass Marketing Involves One-Way Communications Aimed At Consumers. The Nature of Communication on the Web Direct Marketing Involves Two-Way Interactions With Customers.

Average Consumer Individual Customer Mass Marketing Vs. One-to-One Marketing Customer Anonymity Customer Profile Standard Product Customized Market Offering Mass Production Customized Production Mass Distribution Individualized Distribution Mass Advertising Individualized Message Mass Promotion Individualized Incentives One-Way Message Two-Way Messages Economies of Scale Economies of Scope Share of Mind Share of Customer All Customers Profitable Customers Customer Attraction Customer Retention Mass MarketingOne-to-One Marketing

“New” Marketing Approaches Market Segmentation Market Targeting Market Positioning

Market Segmentation  Geographic  Demographic  Psychographic  Behavioral Age Gender Family Size / Life Cycle Income Occupation Education Religion Race Generation Nationality Occasions Benefits User Status Usage Rate Loyalty Status Readiness Stage Attitude Toward Product

Market Targeting Evaluating Market Segments  Segment Size and Growth Analyze current sales, growth rates and expected profitability for various segments.  Segment Structural Attractiveness Consider effects of: competitors, availability of substitute products and, the power of buyers & suppliers.  Company Objectives and Resources Company skills & resources needed to succeed in that segment(s). Look for Competitive Advantages.

Market Targeting Choosing a Market-Coverage Strategy  Company Resources  Product Variability  Product’s Stage in the Life Cycle  Market Variability  Competitor’s Marketing Strategies Company Resources Product Variability Product’s Stage in the Life Cycle Market Variability Competitor’s Marketing Strategies

Choosing a Positioning Strategy  Product’s Position - the way the product is defined by consumers on important attributes - the place the product occupies in consumers’ minds relative to competing products.  Marketers must: Plan positions to give their products the greatest advantage in selected target markets, Design marketing mixes to create these planned positions.

Creating and Maintaining Brands on the Web Brand – a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service

Web Brands Make an Impact  Books:  Music:  Computer Software:  Computer Hardware:  Clothing:  Travel:  Autos:  Amazon.com (56%)  CDNow (24%)  Microsoft (30%)  Dell (20%)  The Gap (12%)  AOL, Yahoo!, Travelocity (each 8%)  Yahoo! (6%)

Purpose of Branding Attributes Quality & Value Consistency Differentiation

Branding Forms Brand Awareness – the knowledge that a brand exists Brand Equity - the set of assets (or liabilities) linked to the brand that add (or subtract) value Brand Loyalty – A continued behavior associated with a particular brand

Brand Building  Advertising / Promotion Short-term … affects awareness not equity Emotional vs. Rational  Product Quality  Customer Service Purchase support Post purchase support Information / Personalization

Emotional … Rational …

Customer Service  Personalized service based on previous purchases and inquiries

Other Branding Methods  Brand Extensions  Co-Branding

Choosing Your Name Six Earmarks of a Good Domain Name 1.A good domain name is short. 2.A good domain name is memorable. 3.A good domain name isn't easily confused with others. 4.A good domain name is hard to misspell. 5.A good domain name relates to your business name or core business. Nameboy Network Solutions' NameFetcher E-gineer Dominator