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INTERACTIVE MARKETING STRATEGY
(2)
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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Image/product information
Information collection
Customer support/service
Internal Support/service
Transactions
LEVEL OF WEB SITE DEVELOPMENT
Transaction
Customer Support/service
Image/productinformation
InformationCollection/Market research
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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.
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THE INTERNET MARKETING PLAN
Internet Marketing Plan:
An operational plan to achieve an internet marketing strategy through implementation of a new version of a web site and associated marketing communications.
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DECISION POINT OF THE INTERNET MARKETING PLAN
Who are the potential audience?
Integrating ‘the nets’.
Defining the scope of internet marketing communications.
How do we ‘migrate’ our brands on to the internet?
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DECISION POINT OF THE INTERNET MARKETING PLAN
Strategic partnerships and outsourcing.
Organizational structure.
Setting the budget.
The schedule: Pre-development tasks, content planning, content development and testing, publishing the site, pre-launch promotion, & ongoing promotion.
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WEB SITE DEVELOPMENT SCHEDULE
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INTERNET MARKETING INVESMENT PLAN
Objective Statement
Strategic Positioning
Assessment of Current Position
Assess Opportunities and Threats
Partnering Arrangements
Integrating ‘The Nets’
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INTERNET MARKETING INVESMENT PLAN
Channel Choices
Promotional and Communications Activities
New Media Branding
Measuring Site Effectiveness
Resource Requirements
Implementation