mis/entr 375 global e-commerce. describe the marketing mix explain the importance of branding ...

Creating a Winning E-BusinessSecond Edition

Marketing Your E-BusinessChapter 6

Avimanyu Datta

MIS/ENTR 375

Global E-Commerce

Learning Objectives

Describe the marketing mix Explain the importance of branding Describe primary and secondary

market research Create a marketing plan Identify marketing tools

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Marketing Mix Marketing is process of developing mutually

satisfying relationships with customers Four Ps in the classical marketing mix

The set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.› Product› Place› Price› Promotion

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Marketing Mix

PRODUCT

Variety, quality, Design, Features,

Brand name, Packaging,

Services

PLACEChannelsCoverageLocationsInventory

TransportationLogistics

PROMOTIONAdvertising,

Personal SellingSales PromotionPublic Relations

PRICEList PriceDiscounts

AllowancesPayment Period

Credit Terms

Target CustomersIntended Positioning

Putting Together: Marketing Mix to create awarness

Product

Place

Price

Promotion

What is the Product? How is it Positioned? (a)Product as Service: SIM card; (b)Product as Product: Coffee; (c)Service as Service: Legal Advise or (d) Service as Product: DHL logistics, softwares etc

Create a Customer Portfolio. Contact them through personalized emails or SMS based marketing. Collaborate with partner institutions to createshared log ins.

Free trials for 1 month. Discounted fee for 3 months and then regular charge. Charges will be based on type and variability of services.

Distribution channels cold be banks by enabling strategic relations.

Awareness Interest TrialCreate Market

Make Customers dependent

Market Mix Strategies

Marketing Mix (continued)

Marketing mix from customer’s viewpoint› Four Cs marketing mix model

Customer needs and wants Convenience Communication Cost to customer

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Marketing Mix (continued)

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Customer Needs

(Product)

Communication(Promotion)

Cost to Customer

(Price)

Convenience (Place)

Marketing Mix

Building Your Brand A brand

› Incorporates customers’ perceptions of and experiences with a business

› Combination of name, logo, and design that identifies a business’s products and services in consumers’ minds

› Trusted brand can drive sales› Examples

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Building Your Brand (continued)

Define how you want products/services perceived by customers› Understand core elements of e-business› Differentiate core elements from competitors’ core

elements› Identify how products/services meet customers’ needs› Decide how to convince customers that

products/services best meet their needs

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Building Your Brand (continued) Discover words, phrases, images to put best

public “face” on business Brand names and Slogans

› Simple› Easy to remember, spell, and understand› Have “snap”› May be a proper name or use personification

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Domain name (URL) and branding› Address associated with a Web page› Can be used to help build a brand› Single- and common-word domain names largely

already taken Office.com, Business.com, dell.com MAKE Website Synonymous with the Brand

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Use creative “brainstorming” to develop brand name› Create list of words or phrases and

combine them in creative ways› Ask for help from friends, family, advisors

Pay for professional help in developing brand name› The Namestormers, NameLab

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Domain name (URL) registration› Managed by ICANN for the U.S. Dept. of

Commerce› Top-level domains identify the general

category in which a domain name is registered

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Domain name (URL) registration (continued)› ICANN contracts with accredited registrars› Accredited registrars process requests for

new domain names Network Solutions GoDaddy Register.com

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Tying URL to business name can help build a brand› amazon.com› register.com› bn.com› ey.com

Some e-businesses use clever, made-up words for URL› google.com

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Brand names, domain names, trademarks are becoming more interchangeable› Make certain a URL does not infringe on the brand or

trademark of an existing company

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Market Research Collecting and analyzing data to make

business decisions› Primary research

Uses quantitative or qualitative methods to physically collect and analyze data and then publish the results

› Market research company examples NPD Group Forrester IDC Frost & Sullivan Gartner

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Market Research (continued)

Secondary research› Collects data from secondary sources who

have already performed the primary research

› Resources for secondary research Reports published by market research

companies Industry white papers Government databases Trade associations Professional journals: Mckinsey Quarterly

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Creating a Marketing Plan and Strategize

Provides the details for the marketplace analysis section of a business plan

Plan elements› Executive Summary› Situational Analysis› Objectives, Strategies, and Tactics› Budget and Performance Measures

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Creating a Marketing Plan and Strategize(continued)

Executive Summary section› Summarizes overall plan› One to three pages› Should be written last

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Creating a Marketing Plan and Strategize(continued)

Situational Analysis section› Explains what is known about the

marketplace Market size (Total Shipments X Average Unit

Price) Market segments Target market Market Positioning

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Creating a Marketing Plan and Strategize

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Identify Bases for Segmenting Market

Develop Relevant Market Segment profiles

Forecast Total Potential Within each segment

Determine Marketing Program to serve each

segment

Analyze Competitive Forces within each

Segment

Forecast own market share for each segment

Estimate Cost benefit for Each Segment

Do Benefits outweigh Costs for each segment?

Decision on selection of target segments

Stage1

Stage 2

Stage 3

Stage 4

Stage 5

Marketing Strategy

2 - 24

2 - 25

› Customers grouped by: Geographic Demographic Psychographic Behavioral

› Market segment is a group of consumers who respond in similar ways to marketing efforts

1. Market Segmentation

2. Target marketing

3. Market Positioning

Marketing Strategy

Strategy

Market Segmentation

Clinique for Men products are designed for a segment of men who will pay more for skin care products.

2 - 26Marketing in Action

2 - 27

› Evaluation of each segment’s attractiveness

› Selection of segments with greatest long-term profitability

› A company can choose one or several segments to target

Marketing Strategy

Strategy


2. Target marketing


Target Markets

Business Week magazine targeted

to business professional who don’t have much

time

Marketing in Action2 - 28

2 - 29

› The place the product occupies in the consumer’s mind

› Products are positioned relative to competing products

› Marketers look for clear, distinctive and desirable places in positioning

Marketing Strategy

Strategy


2. Target marketing


Target Positioning

Amazon.com was created to make shopping hassle-free and from home

Marketing in Action2 - 30

Creating a Marketing Plan and Strategize (continued)

Objectives, Strategies, and Tactics section› Objectives describe marketing mission› Strategies identify what is to be

accomplished› Tactics detail how it will be done

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Creating a Marketing Plan and Strategize (continued)

Budget and Performance Measures section› A budget estimates the cost of the plan› Performance measures evaluate the results

of plan implementation

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Marketing Tools

Search tool submissions› Search engines use spiders to browse the

Web and locate new pages to build indexes› Directories use human submissions of Web

page information to build indexes› Most modern search tools use a

combination of both means to build indexes

› E-businesses can submit Web page information to multiple search tools

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Marketing Tools (continued)

Search engine optimization (SEO)› Build Web pages that are easy to index by

search engines Relevant inbound links (most important) Use good HTML tags/structure Write clear and on-topic Web page text Use descriptive page titles Avoid frames and dynamic content Use text navigation links Use meta tags: used to add information to a web

page that a web browser can see.

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Note: using certain Web page design elements, such as frames, flash content, and image navigation links, can make it more difficult for a spider or to index a Web page.


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Public relations effort› Establishes and maintains a company’s

public image› Timely press release is a cost-effective

marketing tool› Good idea to work with a PR professional

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Online advertising› Banner and

sidebar ad Rectangular image Linked to

advertiser’s site

› Pop-up or pop-under ads Appear in own

window above or below browser window

Linked to advertiser’s site

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Online advertising (continued)› Rich media ads

Interactive elements, Flash technologies, streaming media

Shoshkele and streaming media ads

Permission-based marketing› Opt-in e-mail or

newsletters› Double opt-in process

verifies recipient voluntarily receives messages

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Marketing Tools (continued) Online advertising

(continued)› Search tool or portal

advertising Featured placement at

other Web sites Pay-per-click search

tool ads Featured placement in

search results lists Featured placement on

same page as search results list

Based on relevant search keywords

Yahoo!, Search Marketing, and goClick.com

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Traditional advertising› Radio› TV› Print media› Outdoor advertising› Direct mail

Used together with online advertising to acquire new customers as inexpensively as possible

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Link exchanges› Exchange links with Web sites to boost link

popularity› Drive new customers to Web site and

improve SEO› Beware of link farms and link stuffing

Newsgroups and Web-based forums› Participation in can indirectly promote a

business

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Word of mouth› Electronic word of mouth exploits the

network effect and viral marketing› Business blogs

Put a “human face” on a business Way to keep tabs on what customers,

potential customers, and competitors are thinking and saying

Provide valuable feedback on products and services

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RSS and Podcasting› Syndication of Web page content or audio

using XML technologies Affiliate programs***

› Arrangement in which an e-business pays a fee or commission when a customer clicks through from another site and makes a purchase

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Web rings› A group of similar e-businesses linked

together in a circular “chain” › Visitor can click through from site to site in

the chain Awards

› Can give a startup e-business more credibility in the marketplace

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Case Studies

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Read Saga of a Brand: Page 199, 243-244

Consider the impact of branding efforts on the new startup. They should consider the changes that occurred in the late 1990s that affected the business environment and Internet access and that may have adversely affected the success of Virtual Vineyards, despite the branding efforts of its co-founders, Peter Granoff and Robert Olson.

Case Studies

6-46

Read Success in doing what you love: Page 228 -229

What was Danny Sullivan’s e-business idea?How did Sullivan’s e-business idea fill a marketplace need?What business or technical skills did Sullivan bring to his new e‑business that helped to make it a success?How did Sullivan harvest his e-business?What role does Sullivan’s e-business idea play in his career today?

Case Studies

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Read Bidding for Placement: Page 237

What was the original e-business idea behind GoTo.com?Why did other search tools start copying the GoTo.com approach to search results?Why were consumer groups upset about the search results delivered by GoTo.com and other search tools that copied GoTo.com?How did the FTC’s response to consumer group complaints change the way GoTo.com and similar search tools presented search results?Was this change for the better or worse? Why?What ultimately happened to GoTo.com?

mis/entr 375 global e-commerce. describe the marketing mix explain the importance of branding ...

Documents

product place price

customer price cost

services product variety

marketing plan

classical marketing

positioning slide

customers viewpoint

customers perceptions