CHAPTER 3

MARKETING STRATEGY IN INTERNET MARKETING

OBJECTIVES
Understand the link between business unit strategy and
marketing strategy

Segmentation for pure-plays and BAM venturing to online

Positioning for pure-plays
Targeting for BAM moving online

INTRODUCTION
Links between business unit strategy and marketing strategy
It may differs between pure-play online firms and BAM firms

Due to BAMs existing strategies

ALIGNMENT BETWEEN BUSINESS

STRATEGY AND MARKETING STRATEGY

Busines
s
strategy

Good direction
Guidance
benchmarks

Marketing
strategy

CRITERIA TO ASSESS

GOAL
ALIGNMENT

IMPLEMENTATION
ALIGNMENT

RESOURCE
ALIGNMENT

ACTIVITY
ALIGNMENT

INTERNET MARKETING SCENARIOS

Online
business-unit
strategy

Business-unit strategy
Overall
Online
Offline

Integrated marketing
strategy

Marketing
strategy for
online business
Marketing strategy for
offline business

Marketing strategy for

online business

INTERNET MARKETING SCENARIOS

Pure-play

Bricks and mortar

Segmentation

Same vs different segment

Target market selection

Same vs different target market

Positioning

Same vs different positioning

SEGMENTATION FOR PURE PLAYS

Bases:

Demographic
Geographic

ISP domain

Psychographic
Cognitive and behavioral

POSITIONING FOR PURE PLAYS

Positioning base on

Description to be perceived as

Features/service

The best in a particular product or service

attribute
e.g.: style or speed of delivery

Benefits

Effectively providing benefits

e.g.: happiness or fun

Specific usage occasions

Practical and functional for a given purpose

User category

Appropriate offering for a specific type of user

Against another product

Better than a particular competitor

Product class

Offering a different type of product from what

consumers expect

Hybrid

A combination of two or more of the above

categories

SEGMENTATION FOR BAM MOVING

ONLINE

Changes in size of
Changes
size of
market in
segments
market segments
No
Yes
No
Yes

Changes in segmentation
Changes in due
segmentation
characteristics
to internet
characteristics due to internet
No
Yes
No
Yes
Market
Market
expansion
expansion

ReclassifiedReclassifiedexpansion
expansion

No change
No change

Market
Market
reclassification
reclassification

NO CHANGE
Online segmentation does not reveal any significantly new
segments
All or most offline customers are regular internet users
Exhibit same needs and buying behaviors

Offline and online marketing strategy remains largely the

same

MARKET EXPANSION
Customer segments are the same but increase in size

Or vice versa due to small percentage of the target market uses the
internet

Firms can reach more of the same types of consumers

MARKET RECLASSIFICATION
Customer segment are different on the internet

Internet ability to augment companys offering (increased service or

customizability)

RECLASSIFIED EXPANSION
Segment changes in both size and characteristics
Complicated scenario
Targeting and positioning very crucial to determine online
success

TARGETING FOR BAM MOVING ONLINE

Same
customers

Different
customers

Blanket targeting

New-opportunity
targeting

Beachhead targeting

Bleed-over targeting

Entire
segment
Portions of a
segment

Focus of effort

Customer similarity

TARGETING FOR BAM MOVING ONLINE

Blanket targeting

Many of offline companys customers are typical internet users

More customers are reached through internet
All exhibit the same behavior and buying preferences online and
offline

Beachhead targeting

Online segment is smaller than the offline segment

Only part of a firms consumer base uses internet

TARGETING FOR BAM MOVING ONLINE

Bleed-over targeting

Online target segment includes part, but not all, of the offline
segment
Include distinctly new customer segment
New segment include different types of customer

New opportunity targeting

Entirely different target segment

Distinctly different needs and preferences from traditional offline
segment

U TANYA I JAWAB
THE END