1. 1 INTERACTIVE MARKETING STRATEGY (Lecture 11) Sunarto Prayitno

2. 2 INTERNET MARKETING STRATEGY As a detailed strategy that is part of the broader strategic marketing planning process. As a part of the investment proposal for a new web site. As a separate strategy for a company for which the internet is a significant communications or sales channel.

3. 3 Internal and External Influences on Internet Marketing Strategy Corporate Objective & Strategy Marketing Strategy Internet Marketing Strategy Emerging Opportunities and Threats Market Structure & Demand Competitors Strategies

4. 4 RELATIONSHIP MARKETING Relationship marketing is a developing marketing discipline, combining many activities which have been in place for years with some newly-emerging facilities primarily involving the increased accessibility of IT, both hardware and software.

5. 5 LEVEL OF WEB SITE DEVELOPMENT Level 0 (No Web Site) Level 1 (List Company Name) Yellow Pages Level 2 (Simple Static Web Site) Brochure Level 3 (Simple Interactive Site) Level 4 (Interactive Site Supporting Transactions) Level 5 (Fully Interactive Site Providing Relationship Marketing)

6. 6 THE LEVEL OF WEB SITE First Generation: simple static ‘brochure-ware’ site (one to many). Second Generation: Simple interactive site (one to many). Third Generation: Fully interactive site (personalization, direct marketing, sales & customer service).

7. 7 LEVEL OF WEB SITE DEVELOPMENT Information to transaction model and The transaction to information model.

8. 8 INTEGRATION OF REAL-WORLD AND ONLINE CHANNELS Real World Product Evaluation Decision to Purchase Specify Purchase Payment Fulfillment Online Product Evaluation Decision to Purchase Specify Purchase Payment Fulfillment (Digital)

9. 9 POTENTIAL BUSINESS BENEFITS Corporate image improved. Improved customer service. Increased visibility. Market expansion. Online transactions. Lower communication costs.

10. 10 TANGIBLE BENEFITS Increased Sales: New customers, new markets. Existing customers (repeat-selling). Existing customers (cross-selling). Cost Reductions: Reduced time in customer service. Online sales. Reduced printing & distribution costs of marketing communications.

11. 11 INTANGIBLE BENEFITS Corporate image communications. Enhance brand. More rapid, more responsive marketing communications including PR. Improved customer service. Learning for the future.

12. 12 INTANGIBLE BENEFITS Meeting customer expectations to have a web site. Identify new partners, support existing partners better. Better management of marketing information and customer information. Feedback from customers on products.

13. 13 Develop Internet Marketing Strategy A SIMPLE FRAMEWORK FOR INTERNET MARKETING STRATEGY DEVELOPMENT Define Internet Marketing Plan Design Site Implement Site Monitor/Metric Reviewed and Modify

14. 14 A STEP STRATEGIC MARKETING PLANNING PROCESS 1. Develop internet marketing strategy: Goal Setting Situation Preview Strategy 2. Define internet marketing plan & monitor: Resources allocation and monitoring

15. 15 A TEN-STEP STRATEGIC MARKETING PLANNING PROCESS Phase 1 (Goal Setting): 1. Mission 2. Corporate Objectives Phase 2 (Situation Review): 3. Marketing Audit 4. SWOT Analysis

16. 16 A TEN-STEP STRATEGIC MARKETING PLANNING PROCESS Phase 3 (Strategy Formulation): 5. Assumptions 6. Marketing Objectives & Strategies 7. Estimate expected results 8. Identify alternative plans and mix

17. 17 A TEN-STEP STRATEGIC MARKETING PLANNING PROCESS Phase 4 (Resource Allocation and Monitoring): 9. Budget 10. Detailed implementation program (year 1)

18. 18 1. INTERNAL AUDITS Business effectiveness: Internet contribution, profitability, corporate mission. Marketing Effectiveness: Leads, sales, retention, market share, brand enhancement and loyalty, customer services.

19. 19 INTERNAL AUDITS Internet Effectiveness: Used of the web site assessment, hits, page impressions or Conventional assessment (FGD’s, survey).

20. 20 2. EXTERNAL AUDITS The environmental factors: Social, legal, economic/fiscal, political, and technological factors (SLEPT acronym). The three most significant factors: Legal constrains, social constrains, and technological constrains.

21. 21 EXTERNAL AUDITS Customers: Size of the market. The type of marketplace. Market Share. Competitors: Level of web site development. Channel of competitors make use of the internet.

22. 22 3. ASSESSING SWOT OPPORTUNITIES New markets. New services. New distribution channels. Reduced power of supplier. Demographic characteristics. Cost reduction.

23. 23 ASSESSING SWOT THREATS New entrants. New products. Faster responding (smaller competitors) Channel conflicts. Customer choice. Regulation.

24. 24 ASSESSING SWOT STRENGTHS Flexibility. Strong brand. Senior management commitment. Strategy in place. Channel in place.

25. 25 ASSESSING SWOT WEAKNESSES Weak brand. Inflexibility (slow response). Lack of leadership. No strategy. No fulfillment mechanism.

26. 26 4. STRATEGY FORMULATION Amount of investment and commitment to the internet. Market and product positioning. Internet marketplace positioning. Setting the internet marketing value proposition.

27. 27 5. RESOURCES ALLOCATION & MONITORING Planning, scheduling, resource allocation and monitoring: Once the internet marketing strategy has been formulated, a more detailed strategy implementation plan will need to be drawn up.