1 INTERACTIVE MARKETING STRATEGY (Lecture 11) Sunarto Prayitno.

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INTERACTIVE MARKETING STRATEGY

(Lecture 11)

Sunarto Prayitno

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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.

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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

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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.

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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)

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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).

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LEVEL OF WEB SITE DEVELOPMENT

Information to transaction model and

The transaction to information model.

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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)

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POTENTIAL BUSINESS BENEFITS

Corporate image improved.

Improved customer service.

Increased visibility.

Market expansion.

Online transactions.

Lower communication costs.

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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.

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INTANGIBLE BENEFITS

Corporate image communications.

Enhance brand.

More rapid, more responsive marketing communications including PR.

Improved customer service.

Learning for the future.

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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.

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Develop Internet Marketing Strategy

A SIMPLE FRAMEWORK FOR INTERNET MARKETING STRATEGY DEVELOPMENT

Define Internet Marketing Plan

Design Site

Implement Site

Monitor/Metric

Reviewed andModify

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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

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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

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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

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A TEN-STEP STRATEGIC MARKETING PLANNING PROCESS

Phase 4 (Resource Allocation and Monitoring):

9. Budget

10. Detailed implementation program

(year 1)

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1. INTERNAL AUDITS

Business effectiveness: Internet contribution, profitability, corporate mission.

Marketing Effectiveness: Leads, sales, retention, market share, brand enhancement and loyalty, customer services.

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INTERNAL AUDITS

Internet Effectiveness: Used of the web site assessment, hits, page impressions or

Conventional assessment (FGD’s, survey).

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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.

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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.

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3. ASSESSING SWOT

OPPORTUNITIES

New markets.

New services.

New distribution channels.

Reduced power of supplier.

Demographic characteristics.

Cost reduction.

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ASSESSING SWOT

THREATS

New entrants.

New products.

Faster responding (smaller competitors)

Channel conflicts.

Customer choice.

Regulation.

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ASSESSING SWOT

STRENGTHS

Flexibility.

Strong brand.

Senior management commitment.

Strategy in place.

Channel in place.

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ASSESSING SWOT

WEAKNESSES

Weak brand.

Inflexibility (slow response).

Lack of leadership.

No strategy.

No fulfillment mechanism.

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4. STRATEGY FORMULATION

Amount of investment and commitment to the internet.

Market and product positioning.

Internet marketplace positioning.

Setting the internet marketing value proposition.

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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.