Building an Internet Marketing Strategy
Internet marketing is different from classic marketing
Failure is the norm in Internet commercial projects
Lack of knowledge, lack of decision
Lack of anticipation, lack of results
Professional approach leads to professional results
The hippie period of the web is over
A mistake in the thinking is a disaster in the making
Technology should serve objectives
Know your enemy
Content rules
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Building an Internet Marketing Strategy
Introduction: Business on the Internet
Knowledge: The environment
Thinking: Internet strategy development
Planning: Website development
Winning: Internet marketing communication
Guideline: A business plan
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Building an Internet Marketing Strategy
Action is the only truth of intention
Jean-Paul Sartre
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Building an Internet Marketing Strategy
Why?
Cisco can make 90% of its revenue with online sale
EasyJet gains 90% of its tickets sales online
Hannibal won the battle of Canae
Because:
Strategy enables firms with smaller resources
to overcome larger and more powerful opponents
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Building an Internet Marketing Strategy
Basic definitions
E-marketing
E-commerce
E-business
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Building an Internet Marketing Strategy
What benefits?
It depends on the approach:
Conservative approach on existing market and product = Market penetration
Conservative approach on new market and product = Market development
Progressive approach on existing market and product = Product development
Progressive approach on existing market and product = Diversification
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Building an Internet Marketing Strategy
What benefits?
Tangible benefits
Increased sales from sales leads giving rise to increase revenue
Cost reduction from reduced time in transaction, service, communication
Intangible benefits
Corporate image / brand improved
More responsive marketing communication
Improved customer service
Meeting customer expectations
Better management of marketing communication
Feedback from customers on products
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Building an Internet Marketing Strategy
Keys to success: The 6 Is – John Deighton
Interactivity – Internet is a pull medium
Intelligence – Ideas reign
Individualization – Tailored communications
Integration – Communication and information
Industry restructuring – Re-intermediation
Independence of location – New markets
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The Internet environment
MARKET
CUSTOMERS
COMPETITORS & INTERMEDIARIES
TECHNOLOGY
SOCIAL AND ECONOMICAL FACTORS
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The Internet environment
International
Economic factors
Legal constraints
Cultural factors
Micro-environment
Technology
- Innovation
- Trends
Society
Organisation
Suppliers
Country specific
Customers
Economic factors
Legal constraints
Cultural factors
Intermediaries
Public opinion
Moral & Ethics
Competitors
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The Internet environment
The market
Porter’s five forces
Increased bargaining power of buyers - Commodization
Reduced bargaining power of suppliers - Wider choice
Threat of substitute products and services - New business models
Reduced barriers to entry
Greater rivalry between existing competitors
“CHOOSE YOUR BUSINESS MODEL”
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The Internet environment
Business models
E-shop
E-malls
E-auctions
Virtual communities
Collaboration platform
Hubs
Value-chain providers
Information brokers
Trust
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The Internet environment
Revenue models
E-shop: Direct product sales, Direct service sales
Retailer / reseller Intermediary: Subscription, Rental of service
Marketplace intermediary: Affiliation, Auction, Marketplace – Commission based sales
Supply chain provider or integrator: Banners, Ads, Sponsorship
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The Internet environment
The customers
Adoption = Access + value proposition + usage + security
Segmentation = Localization + psychology + culture + experience
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The Internet environment
The intermediaries
Independent sites that are used
to bring buyers and sellers together
Directories (Yahoo)
Search engines (Google)
E-malls (BarclaySquare)
Virtual resellers (Amazon)
Financial intermediaries (Netcommerce)
Virtual communities
Evaluators (Kelkoo)
Portals
Access, horizontal and vertical integration, geographical,
marketplace
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The Internet environment
Macro-environment
The Technology Challenge
Successfully assess which new technological innovations
can be applied to give competitive advantage
Social, economical and cultural factors
Barriers:
Psychological – Culture, religion, etc. - Behavior
Operational – Infrastructure
Organizational – Internet governance, taxation
Product / market – Not the right place to sell
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The Internet marketing strategy
Generic strategic approach
Situation review
Setting goals
Formulate strategy
Implementing E-CRM
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The Internet marketing strategy
Michael Porter
“The key question is not whether to deploy internet
technology - But how to deploy it”
Objective:
Provide consistent direction for an organization’s emarketing activities that integrates with its other
marketing activities and supports the overall
objectives of the business
Process:
A strategic process model provides a framework that
gives a logical sequence of “roadmap” to follow to
ensure inclusion of all keys activities of strategy
development and implementation
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The Internet marketing strategy
Carlos GHOSN
Where am I going?
is
The first thing to say
to generate motivation
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The Internet marketing strategy
Modes of strategy development
Logical rational planning
Use analytical tools and frameworks
Pragmatic incremental
Minor adjustments to the external environment
Subjective visionary
Result of a dominant or charismatic leader
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The Internet marketing strategy
The planning process
Phase 1: Goal settings: Mission + objectives
Phase 2: Situation review: Marketing audit + SWOT
Phase 3: Strategy formulation: Marketing strategy + Expected results
Phase 4: Resource allocation and monitoring: Budget + Implementation project
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The Internet marketing strategy
The classical framework for strategic management
Mission
Objectives
External analysis
Strategy
formulation
Internal analysis
Implementation
Control
Monitoring
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The Internet marketing strategy
Phase 1: Strategic goals setting
Build a scenario
Qualitative scenarios + Quantitative scenarios
+
Benefits identification - Rampant experimentation
=
Positive return on investment
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The Internet marketing strategy
What benefits?
According to the European companies
Speed of transactions increased
Management of information improved
Improved understanding of customer requirements
Increased service level to customers
Removal of time constraints
Access to global markets
Removal of distance constraints
Ability to complete total transaction electronically
Access to full competitive arena
Opportunities for new revenues / services
Cost effectiveness
More effective relationships with business partners
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The Internet marketing strategy
Phase 2: Situation review
Internal resources
Processes in the company
Activity on the marketplace
Immediate competitive environment
Wider environment
1 – Internal audit
2 – External audit
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The Internet marketing strategy
Phase 2: Situation review
Internal audit
Resources
Financial
Technological
Human
Responsibility
SWOT
Online presence
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The Internet marketing strategy
Phase 2: Situation review
External audit
Demand
Customers
Competitors
Intermediaries
SWOT
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The Internet marketing strategy
Phase 2: Situation review
SWOT Analysis
Opportunities
Strengths
New markets, new services
New distribution channels
Reduced power of suppliers
Demographic characteristics
Cost reduction
Flexibility
Strong brand
Senior management committment
Strategy in place
Channels in place
Threats
Weaknesses
New entrants, new products
Faster responding
Channel conflicts
Customer choice
Regulation
Weak brand
Inflexibility
Lack of leadership
No strategy
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The Internet marketing strategy
Phase 4: Strategy formulation
Segmentation
Identify customer needs and segment markets
(Is the market attractive? Which segments within the market is the most attractive?)
Target marketing
Evaluate and select target segments
(Can we serve customers in this segment better than the competition can?)
Positioning and differentiating
Identify proportion and online value proposition for each segment
(Can we outperform the competition and build significant competitive advantage?)
Planning – Deploy resources
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The Internet marketing strategy
E-CRM Approaches
Attract new and existing customers to site
Incentives visitors to action
Capture customer information to maintain relationship
Maintain dialogue using online communication
Maintain dialogue using offline communication
E-CRM Tools
Databases
Personalization
E-mail
Virtual communities
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Planning website development
The process
Analysis
Design
Development
Testing
+ Content management
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Planning website development
It is a natural mistake amongst those creating a new web site
for the first time to ‘dive in’ and starts creating pages without forward planning
(Chaffey)
But
Experience of developing information systems has shown that an approach that involves
to much up-front planning, analysis and design before development is started does
not work well
(Bocij)
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Planning website development
The development process
Pre-development
Content planning
Content development and testing
Publishing and launching of the site
Analysis
Test & review
Design
Develop
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Planning website development
1 - The process: Analyzing
Find customer needs
Design customer orientation
Adapt to localization
Review competitors’ websites
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Planning website development
2 - The process: Design
1 - Design the user experience
Information architecture: Presentation / Interaction / Representation
2 - Develop customer oriented content
Awareness / interest / evaluation / trial / adoption
and
Develop marketing oriented content
Acquisition / conversion / retention / service quality / branding
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Planning website development
2 - The process: Design
Encourage people to act
A great website will allow people to act in a variety of ways. People should be encouraged to:
Buy your product or complete some other transaction with you
Get in touch with you
Contribute to a discussion forum
Subscribe to a newsletter
Fill out a form
Download something
Inform someone else about your website
Print out your content in a printer-friendly format
Link to you
Republish a selection of your content (where appropriate)
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Planning website development
2 - The process: Design
User-centered design
Who are the important users?
What is their purpose for accessing the site?
How frequently will they visit the site?
What experience and expertise do they have?
What nationality (language) are they?
What type of information are they looking for?
How do they want the information to be presented to them?
What type of computers / screens / browsers do they use?
Evaluate design: effectiveness, productivity, satisfaction
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Planning website development
2 - The process: Design
Basic elements of web design
Identification / Navigation / Content / Interactivity
The 7CS of advanced customer interface design
Content
Context
Commerce
Community
Customization
Connection
Communication
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Planning website development
2 - The process: Design
About content management systems…
What is a CMS?
http://en.wikipedia.org/wiki/Content_management_system
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Planning website development
2 - The process: Design
About content management systems…
A taste of “New thinking”, by Gerry McGovern
Benefits of a CMS
A quality CMS can help you streamline your publishing processes.
It can allow you to develop an information architecture that is robust, yet flexible.
It can allow you to manage your content efficiently and cost-effectively.
A CMS makes it easier for people to create, edit and publish content on a website.
A good CMS allows non-technical authors to easily and quickly publish their content.
More >>
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Planning website development
3 - The process: Testing and reviewing
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Interactive marketing communication
Characteristics
Objectives
Offline
Online
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Interactive marketing communication
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Interactive marketing communication
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Interactive marketing communication
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Interactive marketing communication
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Interactive marketing communication
Build a great website and they will come!
From:
1 – Search engines : 33%
2 – Links : 29%
3 - URL
3 main objectives of interactive marketing communication
Use online and offline communication to drive visitors to a web site
Use on-site communication to deliver an effective message
Integrate all communication channels to achieve marketing objectives
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Interactive marketing communication
Characteristics
From push to pull
From monologue to dialogue
From one to many to one to some and one to one
From lean back to lean forward
Hoffman & Novak (1997)
Consumers can interact with the medium, firms can provide content
to the medium and in the most radical departure from
traditional marketing environments,
consumers can provide commercially-oriented content to the media
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Interactive marketing communication
Integration
URL offline prompt
Offline Ad
PR or WoM
Web site
Search
engine
Links
Paid banner
Or
Sponsorship
E-mail ad
Direct e-mail
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Interactive marketing communication
Conversion marketing objectives
200.000 reach
5% search engine conversion
10.000 site visitors
10% website conversion
1000 qualified leads
10% sales reps conversion
100 customers
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Interactive marketing communication
Rowley’s 4 stages
Contact
Content
Interact
Communication
Transact
Commerce
Relate
Community
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Interactive marketing communication
Offline promotion techniques
Incidental advertising offline
Classic strap line: “Visit our website!”
Site value-proposition strap line: “Detailed information on the product online”
Specific campaign strap line: “Instant quote online”
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Interactive marketing communication
Offline promotion techniques
Direct marketing
Easyjet campaign 2000 with Times magazine:
www.times.easyjet.com
50000 seats offered to readers
40.000 sold in 3 days
100.000 in 5 weeks
=
£2M to the airline
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Interactive marketing communication
Offline promotion techniques
Physical reminders
Word of mouth
A typical Internet user tells 12 other people about his online shopping
He’ll tell 24 people if his experience was bad…
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Interactive marketing communication
Online promotion techniques
Banner advertising
Purpose (Cartellieri – 1997):
Delivering content
Enabling transaction
Shaping branding
Soliciting response
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Interactive marketing communication
Online promotion techniques
Location for placing banner advertising
Portals
News services
Special interest sites
Advertising Network
Rings or affiliated networks
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
Interactive marketing communication
Strengths and weakenesses
Search engines:
+ Large online reach / - Works best for specialist products
Affiliate campaigns:
+ Payment by results / Cost increasing for larger campaigns
Banner:
+ efficient, good for branding / - does not directly lead to sales
E-mail marketing:
+ Push medium, can’t be ignored / Dilution and dangerous for branding
Building an Internet marketing strategy - A presentation by Stefan B. Bazan
The end
I thank you very much for your attention
Building an Internet marketing strategy - A presentation by Stefan B. Bazan