Internet Marketing:
An Overview & Framework
Angela D’Auria Stanton, Ph.D
Central Task of Marketing
Augmented Product
Actual Product as Purchased
Installation
Brand Name
Delivery
Terms
Quality
Credit
Core Product
core benefit customer
receives from product
Packaging
Features
Design
Set of characteristics designed to deliver
product’s core benefits
Additional benefits of the product
Warranty
After Sale
Support
Define Your Unique Selling Proposition
The USP
► The
USP should:
 be unique and clearly set you apart from your
competition, positioning you the more logical choice
 persuade someone to want your product
 make a proposal or offer suggested for acceptance (buy
this product and you will get this specific benefit)
Some examples of clear USPs
►
Head & Shoulders: "You get rid of dandruff"
►
Olay: "You get younger-looking skin"
►
Loreal: "Because you are worth it"
►
Red Bull: "You get stimulation of body and mind"
►
Domino's Pizza: "You get fresh, hot pizza delivered to your door in 30
minutes or less -- or it's free."
►
FedEx: “When it absolutely, positively has to be there overnight"
►
M&M's: "The milk chocolate melts in your mouth, not in your hand"
►
Wonder Bread: "It helps build strong bones 12 ways“
►
Nyquil: “The nighttime, coughing, achy, sniffling, stuffy head, fever, so
you can rest medicine”
How to Develop Your USP
► Identify
your biggest benefits
► Be unique
► Solve a performance gap
► Be specific an offer proof
► Condense into one clear and concise
sentence
► Integrate your USP into ALL marketing
materials
► Deliver on your USP’s promise
The Internet Marketing Cycle
Step 2
Analyze the Market
Opportunity
Step 3
Marketing
Strategy
Step 1
Corporate
and
BusinessUnit
Strategy
Step 4
Design the
Customer
Experience
Step 7
Evaluate the
Marketing
Program
Step 6
Step 5
Design the
Customer
Interface
Design the Marketing
Program
Analyze the Market Opportunity
1.
What value does the opportunity provide?
Trapped Value
•Create more
efficient
markets
•Create more
efficient value
systems
New-to-the World Value
•Disrupt
current pricing
•Customize
offerings
•Enable ease
of access
•Build community
•Radically
extend reach
Hybrid Value
•Introduce new
to the world
functionality or
customer
experience
Analyze the Market Opportunity
2.
Identifying Unmet and/or Underserved Needs
►
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What are the series of activities/steps of the customer decision process in
which a customer participates to receive an experience?
What is the nature of the ideal experience the customer wishes to receive,
both functionally and emotionally?
How closely does the actual experience compare to the customer’s view of
the ideal? What are the key frustration points? What behaviors does the
customer engage in to overcome these frustrations? What underserved
needs do you observe, regardless of whether the customer is conscious of
them?
Does the experience the customer seek vary according to the environment?
How positively/negatively does a customer view the current set of company
offerings?
What are the online opportunities to enhance or transform the customer’s
experience?
Analyze the Market Opportunity
3.
Identify who provides the resources to deliver the benefits of the
offering
4.
Assess the Attractiveness of the Opportunity
►
Competitive Intensity
►
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Customer Dynamics
►
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The level of unmet need/magnitude of unconstrained opportunity
Level of interaction between major customer segments
Likely rate of growth
Technology Vulnerability
►
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Number and identity of competitors
Strengths and weaknesses at delivering benefits
Impact of penetration of new technologies
Impact of new technologies on value proposition
Microeconomics
►
►
The size/volume of the market
The level of profitability
Evaluate the Competition
 Use many different search engines to find your
competition.
 Evaluate competitors using variables such as the
following:









domain name and complete URL
how you found them
strengths, weaknesses
gaps in product offering
strategies for attracting people to their page
strategies for keeping visitors at their site (e.g., stickiness)
customer retention strategies
attractiveness of site
customer service
A Method for Organizing
Competitive Intelligence
Competitor
A
Site Name
Strengths
Weaknesses
Promotions
Site Design
Etc…
Competitor
B
Competitor
C
Look at the Competitors’
Source Code
(title, description META tag and keyword tag)
Go to:
<html>
<head>
http://www.cigaraficionado.com
<TITLE>Cigar Aficionado - Your Home for Cigars On the Web</TITLE>
<META name="description" content="Cigar Aficionado Online, your home on the
Web for cigars and The Good Life. Features searchable databases of cigar ratings, cigar friendly
restaurants and tobacconists around the world.">
<META name="keywords" content="cigars, cigars, cigars, cigars, cigars, Cigar
Aficionado, Cigar Afficionado, Cigar Aficianado, Cigar Aficiondo, cigar, cigars, aficionado,
afficionado, aficianado, afficianado, aficiando, smoke, tobacco, travel, lifestyle, affluence,
Cohiba, Cuba, Cuban, Cubans, Montecristo, Opus X, wealth, restaurant, restaurants, retailer,
retailers, rating, ratings, cigar ratings, Big Smoke">
</head>
<body>
</body>
</html>
Marketing Strategy
1.
Segmenting the Market (major types of online market segmentation)
►
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Behavioral
Demographic
Psychographic (common interests, values and opinions along with
personality, attitude and lifestyle preferences e.g. VALS)
Technical (based on data collected about your visit – IP address, browser,
how did you get to the page, type of connection, etc.)
Contextual (using the context or content of an event – e.g. people who read
WSJ online are good targets for financial service advertising)
Search (using what they’re looking for at that moment – “sell them what they
want”)
2.
Targeting - determine the attractiveness of the segments and choosing the
segment(s) to market
3.
Positioning – creating perception of product relative to competition
Design the Customer Experience
► The







customer experience equals:
The
The
The
The
The
The
The
objective experience +
perceived experience +
encounter experience +
reactions to stimuli experience +
sensory experience +
cognitive and emotional experience +
relative experience
Design the Customer Experience
Stages of Customer Experience
What Firm Does
What Customer Experiences
Stage One:
Functionality
(works well)
►Great
design & information architecture
►Understanding of consumer behavior
►Platform independence
►Server transactions
►Usable
Stage Two:
Intimacy (they
understand
me)
►Data
warehousing and mining
►Tailoring of pages and offerings
►Overlay human interaction
►Integrated data
►Personalized
Stage Three:
Internalization
(it’s part of
me)
►Consistent
performance over time
►Constant innovation and upgrading
(incremental or significant)
►A
Stage Four:
Evangelism
(sharing with
others)
►Support
►Wants
evangelists
►Acknowledge evangelists
site
►Quick, speedy downloads
►Easy navigation
►Reliable
information
►Increasing trust
►Consistent experiences
sense of “being in the know”
►Exceptional value
►Repeated experiences of value
►Significant “gap” relative to other
offerings
to take message to market
►Enjoys benefits of community
Source: Internet Marketing: Building Advantage in a Networked Economy, p. 210
Design the Marketing Program
The Internet Marketing Mix
interactivity
product
pricing
promotion\/
communication
individual
place
community
Design the Marketing Program
►
Building and Nurturing Customer Relationships
Relationship Stages
Awareness
Exploration /
Expansion
Commitment
Dissolution
Design the Customer Interface
The 7 Cs of the Customer Interface
Context
Content
The site’s layout & design
Text, pictures, sound and
video that site contains
Commerce
Community
Site’s capabilities to
enable commercial
transactions
How the site enables userto-user communication
Connection
Customization
Degree to which site is
linked to other sites
Site’s ability to self tailor
to different users or allow
a personalized experience
Communication
How site enables site-touser communication or
two-way communication
Evaluate the Marketing Program
Online Model of Purchasing and Associated Customer Metrics
Online Buying
Process Stage
Metrics Commonly Used at this Stage
Visits stage
►Measuring
Shopping behavior stage
►Number
Purchase stage
►Number
Post-purchase stage
►Return
Loyalty stage
►Frequency
unique and repeat visitors
of page views
►Pattern of sites visited
►Length of stay on site
►Number of registrations completed per 100 visitors
►Number of customers with shopping carts / shopping cart abandoned
of purchases
►Dollar amount of purchases
►Conversion rate of customers
►Customer acquisition cost
►Customer profitability
rates
►Referrals
of purchase
►Percentage of purchases in category
►Percentage of true loyalists
“It's not the strongest or most
intelligent that survive, but the ones
most responsive to change.”
---Charles Darwin