The key question is not whether to deploy

‘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. ’ Porter, M. (2001) Strategy and the Internet, Harvard Business Review, March 2001, 62– 78.

Internal and external influences on Internet marketing strategy

…it provides a consistent direction for online marketing activities …it means analysis of the external environment, internal resources and capabilities will take place …following it will help the company achieve competitive advantage …the company can achieve its hierarchy of objectives A digital marketing strategy is needed because… It helps us to understand which strategies and tactics should not be pursued Gives a focus to choice of target markets, positioning and the use of the marketing mix Tells us how resources will be deployed and how the organisation will be structured to achieve the strategy.

New proposition for customers Getting more customers (acquisition) Converting customers Improving experience Improving delivery of offers Improving the infrastructure to enhance marketing capabilities

A website is likely to be central to an internet marketing strategy… Also: Partner with online intermediaries e. g. portals, social networks and infuencers like bloggers… Use social media marketing on own pages with usergenerated content but also using social networks like Facebook, Google+, Linked. In, Twitter, Pinterest, etc Use email, mobile, apps and databases as communications and relationship-building tools. Link with offline marketing communications. Reduce costs, generate revenue, communicate and brand.

• Reach – Build awareness & traffic • Engage – Build customer relationships through time to achieve retention goals • Interact – Engage audience and encourage them to act / interact with company or other customers. Step 1 Step 2 Step 4 Step 3 • Convert – Achieve marketing goals e. g. new fans, leads or sales Source: Smart Insights (2010) from REAN (Blanc & Jackson, 2009)

Achieve 10 per cent online revenue contribution within two years; Achieve first or second position in category penetration in the countries within which we operate (this is effectively online market share and can be measured through visitor rankings such as Hitwise or better by online revenue share; Cost reduction of 10 per cent in marketing communications within two years; Increase retention of customers by 10 per cent; Increase by 20 per cent within one year the number of sales arising from a certain target market, e. g. 18– 25 -year-olds; Create value-added customer services not available currently; Improve customer service by providing a response to a query within two hours, 24 hours per day, seven days a week; All other objectives to be achieved profitably giving a return on investment in a three year period.

E Shop E Procurement E Mall E Auctions Virtual Communities Collaboration Platforms Third Party Marketplaces Value Chain Integrators Value Chain Service Providers Information Broakerage Trust and other Services

• Subscription access to content • Pay Per View content access • CPM Display advertising • CPC advertising on site • Sponsorship of sections, content or widgets • Affiliate revenue (CPA or CPC) • Subscriber data for e-mail marketing • Access to customers for research purposes

Stages in target marketing strategy development

A clear differentiation of the proposition from competitors based on product features or service quality • Target market segment(s) that the proposition will appeal to • How the proposition will be communicated to site visitors and in all marketing communications. Developing a tag line can help this

Cheaper to retain customers than recruit new ones Lifetime value and greater ‘share of wallet’ Customers can become advocates Value can be a source of competitive advantage Incentives and collectables can encourage further purchases and return visits to your site Can help you drive thought leader strategy for B 2 B e. g. give white papers for free Can lock them in to your brand stop churn / switching Customers consolidate number of websites they use over time so ensure your site is a favourite

Understand expectations: customer research, , site benchmarking, customer scenarios Set and communicate the service promise: guarantees or promises Delivering the service promise: on-site support, employee support, physical fulfilment, logistics, delight the customer.

http: //www. smartinsights. com/di gital-marketing-strategy/onlinevalue-proposition/online-valueproposition-examples/ Your USP online… Links to your brand positioning and tells customers who you are, what you offer, which markets you serve and what makes you different. It identifies to customers why they should click on the site, return, register, buy and share their experiences. It’s a point of difference from competitors. http: //www. impactbnd. com/b log/10 -value-propositionsyou-wish-you-had Source: Smart Insights 2014

Review effectiveness of communications and web pages. Can your customers progress through each hurdle? 1. Exposure – is the information there long enough for a customer? 2. Attention – what grabs the attention? Movement? Colour? 3. Comprehension & perception – how does the customer interpret the stimulus? 4. Yielding & acceptance – is the information accepted by the customer? 5. Retention – how well can the customer recall their experience?

Awareness Interest Desire Action How does your decision-making differ for the following purchases: 1. Buying some Problem Identification breakfast cereal Information Search Evaluation of Alternatives 2. Buying a car Purchase 3. Buying a music Post-purchase Evaluation album from a brand new band 4. Buying your first home

Source: Chaffey & Smith, 2013

The IDIC approach provides a framework for using the web effectively to form and build relationships: 1. Customer identification – identify customers on first and subsequent visits through cookies / login 2. Customer differentiation – build a profile to segment customers 3. Customer interaction – on-site interactions such as customer service questions or create a tailored product 4. Customer communications – personalisation or mass-customisation of content or emails according to segmentation.

http: //www. youtube. com/watch? v=Ovj 4 h. Fxko 7 c Source: Smashing Design Magazine

1. 2. 3. 4. 5. 6. 7. 8. 9. User-centred design (Bevan, 1999) starts with understanding the nature and variation between user groups: Who are the important users? What is their purpose for accessing the site? How frequently will they visit? What experience and expertise do they have? What nationality are they? Can they read your language? What type of information are they looking for? How will the use the information? Read it online, print it, download it, share it? What type of browser or platform will they use? How fast will their links be? How large a screen will they have and with how many colours?

• ‘Compare. Buy. Save’. Kelkoo (www. kelkoo. com) • ‘Earth’s biggest selection’. Amazon (www. amazon. com) • ‘Search the largest inventory of cars and trucks on the Internet. More than 1. 5 million listings, updated daily’ (www. autotrader. com) • The Citibank site design (www. citibank. com) uses a range of techniques to illustrate its core proposition and OVP. The main messages are –Welcome to Citibank: The one-stop solution for all your financial needs –Look for a product or service; Learn about a financial product; Find a location

Deise et al (2000) and Chaston (2000) suggest four positioning options: Product performance excellence Price performance Transactional Excellence Relationship Excellence These positioning options have much in common with Porter’s generic competitive strategies of cost leadership and differentiation

However unlike Porter’s belief, Kim et al (2004) concluded that for online businesses ‘integrated strategies that combine elements of cost leadership and differentiation will outperform cost leadership or differentiation strategies’

Autotrader site (www. autotrader. co. uk) clearly communicates its proposition

BA ‘Have you clicked yet? ’ campaign web site