Online Marketing Strategy
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the slides describe different theories and practical approaches to formulating and implementing an online marketing strategy.
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Online Marketing Strategy
- 1. AARHUS UNIVERSITY ONLINE MARKETING STRATEGY Jacob L. Orquin, Ph.D. Department of Business Administration Aarhus University ASB AU MAPP
- 2. AARHUS UNIVERSITY E-BUSINESS MODELS ASB AU MAPP
- 3. AARHUS UNIVERSITY STRATEGY PROCESS USERPILOT read more about the process on: http://userpilot.dk/index.php?id=68 Business goals drive KPI formulation that drive the data collection. Web analytics ask what is happening and directs other quantitative and qualitative studies to answer why it is happening. The data is analysed and action points are generated. Ultimately, the purpose is to make data driven decisions on what to implement and optimize in the online marketing mix. ASB AU MAPP
- 4. AARHUS UNIVERSITY STRATEGY MODEL GUAVA MEDIA ASB AU MAPP
- 5. AARHUS UNIVERSITY THE E-MARKETING PLAN ASB AU MAPP
- 6. AARHUS UNIVERSITY ONLINE STRATEGY MODEL SOSTAC ASB AU MAPP
- 7. AARHUS UNIVERSITY SITUATION ANALYSIS Demand-, competitor-, intermediary analysis, internal marketing audit, (SW)OT, SLEPT/PEST ASB AU MAPP
- 8. AARHUS UNIVERSITY INTERNET AND INDUSTRY STRUCTURE ASB AU MAPP
- 9. AARHUS UNIVERSITY DEMAND ANALYSIS Online resources like Google insights should be used to asses search volume and demand ASB AU MAPP
- 10. AARHUS UNIVERSITY COMPETITOR ANALYSIS Diese et al. (2000) suggest the following equation to assess competitor brand perception: Customer value (brand perception) = Product quality X Service quality A shortcut to assess competitor performance on customer satisfaction: TDC : 3,7/10 Telmore: 8,6/10 Bibob : 9,6/10 ASB AU MAPP
- 11. AARHUS UNIVERSITY INTERMEDIARY ANALYSIS ASB AU MAPP
- 12. AARHUS UNIVERSITY INTERNAL MARKETING AUDIT The internal marketing audit asseses company performance on: Business effectiveness • Internet revenue contribution • Cost-benefit analysis of producing and updating website Marketing effectiveness • Market share, sales, leads, retention rates etc. Internet effectiveness • Unique visitors, conversion rates, goals etc. ASB AU MAPP
- 13. AARHUS UNIVERSITY OPPORTUNITIES / THREATS ASB AU MAPP
- 14. AARHUS UNIVERSITY OPPORTUNITIES / THREATS ASB AU MAPP
- 15. AARHUS UNIVERSITY SLEPT/PEST ASB AU MAPP
- 16. AARHUS UNIVERSITY OBJECTIVE SETTING Clear objectives are critical for the formation of strategies, tactics, and KPI’s. Remember the SMART mnemonic: • Specific • Measurable • Achievable • Realistic • Time-constrained ASB AU MAPP
- 17. AARHUS UNIVERSITY STRATEGIC OBJECTIVE SETTING ASB AU MAPP
- 18. AARHUS UNIVERSITY BUSINESS VALUE 4 ways of creating business value with e-business proposed by Marchand et al. (1999). ASB AU MAPP
- 19. AARHUS UNIVERSITY ONLINE REVENUE CONTRIBUTION Does online revenue contribution cannibalize offline turnover or where does the market come from? ASB AU MAPP
- 20. AARHUS UNIVERSITY STRATEGY PROCESS A generic strategy process model proposed by chaffey (2007) ASB AU MAPP
- 21. AARHUS UNIVERSITY 6 KEY DECISIONS The strategy definition is driven by the objectives and vision. ASB AU MAPP
- 22. AARHUS UNIVERSITY MARKET/PRODUCT POSITIONING What could the positioning parameters be for a online music store? ASB AU MAPP
- 23. AARHUS UNIVERSITY TARGET MARKET STRATEGY ASB AU MAPP
- 24. AARHUS UNIVERSITY TACTICS AND THE MARKETING MIX Defining the 7 P’s in an online context: ASB AU MAPP
- 25. AARHUS UNIVERSITY PRODUCT The internet allows for long tail economics which dramatically affects the product variety. ASB AU MAPP
- 26. AARHUS UNIVERSITY PRODUCT The death of the 20/80 rule. Instead: 1. Make everything available. 2. Cut the price in half. Now lower it. 3. Help me find it. ASB AU MAPP
- 27. AARHUS UNIVERSITY PRICE Two main approaches: • Start-ups used low-price models to establish customer base • Existing firms transferred existing prices to the web Customers have focus on price and often use price comparison engines kelkoo, pricerunner, and the Danish EDBpriser However, only 8% are aggressive price shoppers! ASB AU MAPP
- 28. AARHUS UNIVERSITY PLACE The internet has large implications on place mainly because of global reach. This can lead to channel conflicts: A communication channel only • Particularly when manufacturers offer an exclusive, or highly selective distribution approach; e.g., Rolex watches • The choice of distribution channel may dilute brand image A distribution channel to intermediaries A direct sales channel to customers • May not be appropriate when prices vary geographical areas; • no existing contracts/agreements; • low pre-sales and after-sales support Any combination of the above • Sales representatives may be threatened, however they are important for generating leads ASB AU MAPP
- 29. AARHUS UNIVERSITY PROMOTION ASB AU MAPP
- 30. AARHUS UNIVERSITY MATCHING COMMUNICATION AND BUYING BEHAVIOR ASB AU MAPP
- 31. AARHUS UNIVERSITY SERVICE P’S Parasuraman et al. (1985) suggest that service quality is judged on following parameters: tangibles, reliability, responsiveness, assurance, and empathy. Which service parameters do you think matters the most to online shoppers? • ________________ • ________________ • ________________ • ________________ • ________________ ASB AU MAPP
- 32. AARHUS UNIVERSITY BRANDING ON THE INTERNET Transfer traditional brand online Leverage existing brand equity; cautious of the risk that if website is of poor quality in terms of performance, structure & information content, brand identity is negatively affected. Companies like Guiness, Orange, Argos Extend traditional brand: variant Companies create slightly different version of their brand on the web; target different segments Used to distinguish from rivals; however might be problems with brand recognition; brand trust & quality associations may be damaged Partner with existing digital brand Promote it products in association with a strong Internet brand such as Yahoo! or MSN, example, Waterstones and Amazon Create new digital brand Entirely new brand; for example, if offline brand has negative connotations or is too traditional; Egg banking service – part of Prudential; can attract younger segments ASB AU MAPP
- 33. AARHUS UNIVERSITY BRAND ARCHITECTURE ASB AU MAPP
- 34. AARHUS UNIVERSITY GETTING REAL ON INTERNET TACTICS ASB AU MAPP
- 35. AARHUS UNIVERSITY ACTIONS What’s missing? Adapted from Bager (2009) ASB AU MAPP
- 36. AARHUS UNIVERSITY TASKS ASB AU MAPP
- 37. AARHUS UNIVERSITY E-CRM PROCES ASB AU MAPP
- 38. AARHUS UNIVERSITY ORGANIZATIONAL STRUCTURE ASB AU MAPP
- 39. AARHUS UNIVERSITY CONTROL - PERFORMANCE MANAGEMENT ASB AU MAPP
- 40. AARHUS UNIVERSITY PERFORMANCE MEASUREMENT ASB AU MAPP
- 41. AARHUS UNIVERSITY PERFORMANCE MEASUREMENT ASB AU MAPP
- 42. AARHUS UNIVERSITY PERFORMANCE MEASUREMENT ASB AU MAPP
- 43. AARHUS UNIVERSITY CONTACT Jacob L Orquin, Ph.D. Department of Business Administration Aarhus University E-mail: jalo@asb.dk Check out my company: www.userpilot.dk ASB AU MAPP