CHAPTER 2

ONLINE MARKETPLACE ANALYSIS : MICRO-ENVIRONMENTPREPARED BY : NUR AQILAH BT ZAINUDINBM240(3B)

Learning objectives

Identify the elements of an organization’s online marketplace that have implications for developing a digital marketing strategy

Evaluate techniques for reviewing the importance of different actors in the microenvironment: customers, intermediaries, suppliers and competitors as part of the development of digital marketing strategy

Review changes to business and revenue models enabled by digital markets.

Introduction

All organization operate within environment that influences the performance of their business

Organization that monitor, understand and respond appropriately to changes in environment that have the greatest opportunity to compete effectively in the online

market.

What is micro-environment?

The actor(stakeholder) and their interactions which

influence how an organization responds in its marketplace

THE DIGITAL MARKETING ENVIRONMENT

Micro-environment

Porter (1980) or Kotler (2001)

Known as “operating environment”

Focus on the actor which shape the immediate trading

environment

Include customer who needs and wants are to be satisfied along with competitor, intermediaries

and suppliers

Macro-environment

Known as “remote environment”

Consist of economic condition, change into international trade legislation,

technological and innovation, social change and political

If ignored, could have significant impact on future success of an

organization

ENVIRONMENTAL SCANNING AND ONLINE MARKETPLACE ANALYSIS

CLICK ECOSYSTEM

===============Describe customer

behavior/flow of online visitor

MARKETPLACE ANALYSIS

===============Define nature of competitive market and

provide means of online env

ONLINE MARKET

ECOSYSTEM=============

===Interaction between differ online system with related technology

ISSUES FOR DIGITAL MARKETERS

= access to digital platforms= level of use of digital platforms

=behavior. Characteristic and profiles= service expectation

= level of technology adoption= integration and connectedness

= service provision= trading relationships

= strategic intention and planning

= resources and capabilities

= performance= supplier and intermediary relationships

CUSTOMERSCOMPETITORS

SUPPLIERS & INTERMEDIARIES

EVALUATING DEMAND LEVELS – ACCESS TO DIGITAL PLATFORM

Loation of access

Type of access:broa

dband

Type of access:mobi

le

EVALUATING DEMAND LEVELS

# Broadband# Mobile

Types of transaction

= sales= support= forum

comment@ consumer influence@ type of

sites which have

influence

LEVEL INTERNET ACCESS

Transact online

online channe

l

CONSUMER CHOICE AND DIGITAL INFLUENCE

Consumer choice is crucial step in purchase

process

Digital media plays important

role

Using internet

Vital part of research process

Use at every stage of research process

Business access and digital influence

#size of company #industry sector and

products#organisation type

(private, public, government, not-for-profit)

#application of service (which business activities do purchased products and services support?)

#country and region.

# role in buying decision (purchasing influence)

# department# product interest# demographics: age,

sex and possibly social group

# role and responsibility from job title, function or number of staff managed

VARIATION IN ORGANISATION

CHARACTERISTIC

INDIVIDUAL ROLE

Online consumer behavior and implications for marketing

Customer Scenarios

Online banking persona 1 : SWITCHER

Online banking persona 2 : START UP

EXAMPLE OF PESONA

First time buyer.

Penny Edwards, Age: 27, Partner: Ben, Location: North London, Occupation: Sales Assistant

Part time Mum.

Jane Lawrence, Age: 37, Husband: Joe, Location: Manchester, Occupation: Part time PR consultant

Single Mum.

Rachel Wilson, Age: 40, Location: Reading, Occupation: Business

CONSUMER BEHAVIOUR MODEL

EXPERIENCE SEEKING BEHAVIOUR

HIERARCHY OF

RESPONSE BUYING

PROCESS MODEL

MULTI-CHANNEL BUYING MODELS

TRUST-BASED

MODELS

COMMUNITY

PARTICIPTION

MODELS

1. Experience SEEKING BEHAVIOUR MODEL

Directed information-seekers

UnDirected information-seekers

Directed buyers

Bargain Hunters Entertainment seekers

2. Hierarchy of response buying process models

3. Multichannel buying model

4. TRUST-BASED MODELS

Porter’s five forces

Impact of internet on five competitive forces

TYPES OF PORTAL

NEW CHANNEL STRUCTURE

(a) Original situation(b) Disintermediation omit

wholesaler(c) Disintermediation omitting both wholesaler

and retailer

Configurati

on of

partner in

distributio

n

channel

Disintermediation is Removal

of intermedi

aries

New channel structure

From (a) original situation to (b) disintermediation or (c)

reintermediation or countermediation

Reintermediation is a Creation of

new intermediar

ies between customer

and supplier

Countermediation is

creation a new

intermediary

New channel structureexample of channel chain map for consumer selecting an estate agents

Different types of online trading location

BUSINESS MODELS FOR E-COMMERCE

A summary of how a

company will generate a

profit identifying its

core product or service value proposition,

target customer in differ market

SUMMARY

We have explored each of the groups of actors in micro-environment. From consumer perspective, we have identifies variables that are likely to be the most effective foundation for developing targeting strategies

Suppliers and intermediaries have an important role to play in digital marketing

Considered the impact of internet on marketing channel