Internet Marketing Strategy
Chapter 04 of Chaffey, D., Ellis-Chadwick, F., Mayer, R., & Johnston, K. (2009). Internet Marketing:
Strategy, Implementation and Practice: Financial Times/Prentice Hall.
Ravi Vatrapu
vatrapu@cbs.dk
Tuesday, 06-July-2010
Kilen 2.75, CBS, Frederiksberg, Denmark
DØK HU2D - Internet Marketing: Lecture 07
Course Webpage: http://www.itu.dk/people/rkva/2010-Summer-IM/
Facebook Group: http://www.facebook.com/group.php?gid=133258548012
Etherpad: http://ietherpad.com/d5mBZdMDe6
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Michael Porter on the Internet
Porter, M. (2001) Strategy and the Internet. Harvard Business Review, March 2001, 62–78.
‘The key question is not whether to deploy
Internet technology – companies have no
choice if they want to stay competitive –
but how to deploy it.’
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To Be or Not To Be: Internet, Consumers, Companies
Figure 4.10
Grid of product suitability against market adoption for transactional e-commerce (online purchases)
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Internet and Business
Figure 4.24
Flow chart for deciding on the significance of the Internet to a business
Source: After Kumar (1999)
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What is Internet Marketing Strategy
 What is strategy?

‘Defines how we will meet our objectives’
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‘Sets allocation of resources to meet goals’
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‘Selects preferred strategic options to
compete within a market’
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‘Provides a long-term plan for the development of the
organisation’
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Internet Marketing Strategy: Influences
Figure 4.1
Internal and external influences on Internet marketing strategy
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Internet Marketing Strategy: Options
Figure 4.23
Strategic options for a company in relation to the importance of the Internet as a channel
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Internet Marketing Strategy: Essentials

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Internet marketing strategy is a channel strategy.
Objectives for online contribution %
– sales, service, profitability should drive our strategy
Internet marketing strategy defines how we should:
1.
2.
3.
4.
Communicate benefits of using this channel
Prioritise audiences targeted through channel
Prioritise products available through channel
Hit our channel leads & sales targets



Acquisition, Conversion, Retention
Channel strategies thrive on differentials
BUT, need to manage channel integration
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Internet Marketing Strategy: Problems

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Underestimated demand for online services
Market share loss
Resource duplication
Insufficient resource
Insufficient customer data
Efficiencies available through online marketing
Opportunities for applying online marketing tools
Changes required to internal IT systems
Inadequate tracking
Senior management support limited
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Internet Marketing Strategy: Annual Plans
Figure 4.2
Hierarchy of organisation plans including e-marketing plans
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Internet Marketing Strategy: Planning Framework
Figure 4.4
The SOSTAC® planning framework applied to digital Internet marketing strategy development
Source: Chaffey and Smith (2008)
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Internet Marketing Strategy: Model
Figure 4.5
Dynamic e-business strategy model
Source: Adapted from description in Kalakota and Robinson (2000)
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Internet Marketing Strategy: SWOT Analysis
Figure 4.7
A generic Internet-specific SWOT analysis showing typical opportunities and threats presented by the Internet
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Internet Marketing Strategy: Organizational Growth
Figure 4.12
Using the Internet to support different organisational growth strategies
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Internet Marketing Strategy: Target Marketing
Figure 4.15
Stages in target marketing strategy development
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Internet Marketing Strategy: Segmentation
Figure 4.17
Customer lifecycle segmentation
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Internet Marketing Strategy: Organizational Change
Figure 4.27
Summary of alternative organisational structures for e-commerce suggested in Parsons et al. (1996)
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DISCUSSION
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