1. CHAPTER 3 MARKETING STRATEGY IN INTERNET MARKETING

2. OBJECTIVES Understand the link between business unit strategy and marketing strategy Segmentation for pure-plays and BAM venturing to online Positioning for pure-plays Targeting for BAM moving online

3. INTRODUCTION Links between business unit strategy and marketing strategy It may differs between pure-play online firms and BAM firms Due to BAM’s existing strategies

4. ALIGNMENT BETWEEN BUSINESS STRATEGY AND MARKETING STRATEGY

5. CRITERIA TO ASSESS GOAL ALIGNMENT RESOURCE ALIGNMENT ACTIVITY ALIGNMENT IMPLEMENTATION ALIGNMENT

6. INTERNET MARKETING SCENARIOS 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

7. INTERNET MARKETING SCENARIOS Pure-playBricks and mortar SegmentationSame vs different segment Target market selectionSame vs different target market PositioningSame vs different positioning

8. SEGMENTATION FOR PURE PLAYS Bases: Demographic Geographic ISP domain Psychographic Cognitive and behavioral

9. POSITIONING FOR PURE PLAYS Positioning base onDescription to be perceived as Features/serviceThe best in a particular product or service attribute e.g.: style or speed of delivery BenefitsEffectively providing benefits e.g.: happiness or fun Specific usage occasionsPractical and functional for a given purpose User categoryAppropriate offering for a specific type of user Against another productBetter than a particular competitor Product classOffering a different type of product from what consumers expect HybridA combination of two or more of the above categories

10. SEGMENTATION FOR BAM MOVING ONLINE Market expansion Reclassified- expansion Market reclassification No change NoYes Changes in segmentation characteristics due to internet No Yes Changes in size of market segments

11. NO CHANGE Online segmentation does not reveal any significantly new segments All or most offline customers are regular internet users Exhibit same needs and buying behaviors Offline and online marketing strategy remains largely the same

12. MARKET EXPANSION Customer segments are the same but increase in size Or vice versa due to small percentage of the target market uses the internet Firms can reach more of the same types of consumers

13. MARKET RECLASSIFICATION Customer segment are different on the internet Internet ability to augment company’s offering (increased service or customizability)

14. RECLASSIFIED EXPANSION Segment changes in both size and characteristics Complicated scenario Targeting and positioning very crucial to determine online success

15. TARGETING FOR BAM MOVING ONLINE

16. Blanket targeting Many of offline company’s customers are typical internet users More customers are reached through internet All exhibit the same behavior and buying preferences online and offline Beachhead targeting Online segment is smaller than the offline segment Only part of a firm’s consumer base uses internet

17. TARGETING FOR BAM MOVING ONLINE Bleed-over targeting Online target segment includes part, but not all, of the offline segment Include distinctly new customer segment New segment include different types of customer Contoh: sebahagian offline pergi ke online New opportunity targeting Entirely different target segment Distinctly different needs and preferences from traditional offline segment Dari keluarkan hardcopy kepada softcopy. Contoh, dari burn cd kepada download softcopy

18. U TANYA I JAWAB THE END