1. Internet Marketing Strategy e-Marketing Strategy Ivan Surjanovic, ivan@ipowerlab.comivan@ipowerlab.com Copyright 2014 by iPower Lab www.ipowerlab.com

2. Internet Marketing Strategy Strategy defines: 1.How to achieve our goals 2.How to respond to opportunities and threats in the environment 3.How to outcompete rivals in the long run

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

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

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

6. “Creating WOW through Inspiration” (TEDx - YouTube video)

7. 4. Strategies and Tactics5. Implementation6. Evaluation & Control1. Vision2. Situation Analysis3. Objectives Strategic Marketing Process

8. 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

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

10. 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

11. 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

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

13. 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

14. Internet Marketing Strategy MARKETING STRATEGY IS ALL ABOUT STP: SEGMENTING – TARGETING – POSITIONING!

15. Market segmentation for online accounting software

16. 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

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

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

19. Cost Leadership DifferentiationFocus Hybrid strategy (Best-value) FOUR GENERIC COMPETITIVE STRATEGIES

20. 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

21. 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

22. Product / Market Strategies Product Growth Market growth Existing ProductsNew 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

23. 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)

24. 4. Strategies and Tactics5. Implementation6. Evaluation & Control1. Vision2. Situation Analysis3. Objectives Strategic Marketing Process

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

26. 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?

27. Internet Marketing Strategy Thank You! Ivan Surjanovic, ivan@ipowerlab.comivan@ipowerlab.com Copyright 2014 by iPower Lab www.ipowerlab.com