chapter 3 Marketing Strategy in Internet Marketing McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

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

Chapter 3: Marketing Strategy in Internet Marketing Marketing Strategy and the Importance of Fit Segmentation Targeting Positioning Corporate and Business-Unit Strategy of EBay Conclusion

Chapter 3: Marketing Strategy in Internet Marketing Marketing Strategy and the Importance of Fit Segmentation Targeting Positioning Corporate and Business-Unit Strategy of EBay Conclusion

Exhibit 3.1: Assessing Business-Unit and Marketing Strategy Fit Fit Implementation Alignment Resource Alignment Goal Alignment Activity Alignment

Exhibit 3.2: Marketing-Strategy Decisions Positioning and Target-Market Selection Product Price Promotion Distribution

Marketing Strategy and the Importance of Fit Segmentation Targeting Positioning Corporate and Business-Unit Strategy of EBay Conclusion Chapter 3: Marketing Strategy in Internet Marketing

Exhibit 3.4: Prioritizing Segments Buyer Readiness Stage Attitude Willingness to Pay Segmentation Prioritization Trend/Market Leaders

Exhibit 3.6: Marketing-Strategy Formulation for Pure-Play vs. BAM Online Business-Unit Strategy Marketing Strategy for Online Business Business-Unit Strategy Overall Online Offline Integrated Marketing Strategy 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 Pure-PlayBricks-and-Mortar

Exhibit 3.7: Perceptual Map for the Online Automobile Industry

Exhibit 3.8: Perceptual Map with Customer Preference Clusters

No Market Expansion No Yes Reclassified— Expansion Market Reclassification No Change Change in Segmentation Characteristics Due to Internet Changes in Size of Market Segments Exhibit 3.9: Bricks-and-Mortar Segmentation Scenarios

Marketing Strategy and the Importance of Fit Segmentation Targeting Positioning Corporate and Business-Unit Strategy of EBay Conclusion Chapter 3: Marketing Strategy in Internet Marketing

Exhibit 3.11: Bricks-and-Mortar Targeting Scenarios

Marketing Strategy and the Importance of Fit Segmentation Targeting Positioning Corporate and Business-Unit Strategy of EBay Conclusion Chapter 3: Marketing Strategy in Internet Marketing

Porrtions of a Segment Blanket Targeting Borrow heavily from existing offlline positioning Tout basic advantages of the Internet – convenience and accessibility Same Customers Different Customers Entire Segment New Opportunity Targeting Reposition entirely Position differentiations which cater to the new segment Bleed-Over Targeting Use dual positioning Leverage existing positioning Position added benefits, such as augmented offerings via the Internet (e.g., increased product customizability) Beachhead Targeting Also borrow from offline positioning Focus more, however, on needs of the smaller group Stress value-added advantages of the Internet Customer Similarity Focus of Effort Exhibit 3.9: Bricks-and-Mortar Positioning Scenarios and Guidelines

Marketing Strategy and the Importance of Fit Segmentation Targeting Positioning Corporate and Business-Unit Strategy of EBay Conclusion Chapter 3: Marketing Strategy in Internet Marketing

Exhibit 3.13: Breakdown of EBay’s Gross Merchandise Listed

Exhibit 3.17: EBay’s Business-Unit Strategies

Exhibit 3.18: Offering-Based Segmentation of Auction Market

Marketing Strategy and the Importance of Fit Segmentation Targeting Positioning Corporate and Business-Unit Strategy of EBay Conclusion Chapter 3: Marketing Strategy in Internet Marketing

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.