Five step of positioning plan

ANALYSING THE INTERNET MARKETING STRATEGY OF AMAZON THROUGH FIVE-STEP POSITIONING PLAN

GROUP 1Monday, 9 August 2010

1MARK 901 Internet Application for Marketing

GROUP 1:

• Mochammad Larimba Mandrawata• Gaurav• Sukito

• Yen-Heng Kuo• Naif Balabid

MARK 901 Internet Application for Marketing2

Outline

• General Concept• Problem Definition and

Independent Research• Conclusion• Learning Activities• Questions


General Concept

• Internet Marketing• Segmentation• Targeting• Positioning: Five-Step Positioning

Plan


Internet Marketing (e-Marketing)

• It is the process of building and maintaining customer relationships through online activities to facilitate the exchange of ideas, products, and services that satisfy the goals of both parties (Mohammed, R.A. Et al, 2004)

• It is marketing in electronic environments, primarily on the Internet, on one or more of its services, or offline by enterprises that produce and sell Internet-related products.(Siegal, 2006)


STP of Marketing


Marketing Strategy Decision


Pure Plays and BAM

• Pure plays- firms that only have an online business

• BAMs- firms that have offline operations


Differences between marketing strategy of Pure plays and BAMs


Segmentation for Pure Plays

• It involves the breaking up of a market of customers into large, identifiable groups, or segments

• It reveals potential marketing opportunities and provides a firm with clearer guidance for product development and marketing strategy

• Bases for segmentation include: Demographic Geographic Psychographic Cognitive and behavourial


Effective Segmentation


Meaningful

Actionable

Financially Attractive

Targeting

• The target market is the segment (or segments) of the market most attractive to the firm based on profitability, cost to serve, accessibility and/or growth potential


Targeting

• Mass Marketing– This strategy markets to all customers, attempting

to fill all their needs and wants of every segment in a market• Differentiated strategy (e.g. P&G)• Undifferentiated strategy (e.g. Coke-Cola)


Targeting

• Niche Marketing– To serve one or a few segment, and these

segments are not the largest segments, but consist of enough customers to make it worthwhile (e.g. Super luxury car market)


Targeting

• Growth Marketing– Choosing one or more smaller but fast-growing

segments that will turn into a niche or a larger segment

( e.g.?)


Positioning

• Positioning is the act of designing the company offer and image so that it occupies a distinct and valued place in the target customers’ minds.

– Philip Kotler(2003)


Five-Step Positioning

• Norton Paley– has over 25 years of corporate experience– has authored seven books

Manage to WinSuccessful Business PlanningMarketing for the Non-marketing Executive: An Integrated ManagementResource GuideThe Marketing Strategy Desktop GuidePricing Strategies and PracticesMarketing Principles and Tactics Everyone Must KnowThe Manager’s Guide to Competitive Strategies, 2nd Ed.


Positioning: Five-Step Positioning

Step One : Indentify actual product- Through some customer interviews or questionnaires,

we are able to identify the variables important to consumers and the perceived position of a product



Step Two : Determine ideal product position- This step determines how to position a product in a

more favorable location on perpetual map



Step Three : Develop alternative strategies for achieving ideal product position

- In order to achieve an ideal position, a firm must to:

- move your product to a new position- introduce a separate, new product, and

leave current product untouched or withdraw



Step Four : Select and implement the most promising alternative - This step depends on choosing the plan that is the most

favorable and consistent with a company’s objectives, resources and strengths



Step Five : Compare new actual position with ideal position- This step must also include measures to track the success of the positioning move


Problem Definition and Independent Research• Question: Select an online

company and describe how it creates its five-step positioning plan.

• Observed website: Amazon.com


About Amazon.com

Amazon.com is considered as a “pioneer in online retailing”

Up to his date is Stating that itself “strives to be Earth's most

customer-centric company where people can find and discover virtually anything they want to buy online”

Offers a range of products and services, from books, movie, music, electronics, to web services and selling services


History of Amazon.com

Summarized Timeline 1994: Founded by Jeff Bezos 1995: Launched on the web, limited to selling books 1997: Went public 1998: Expanded to music store, acquiring international offices 1999: Expanded to toys, hardware, electronics, Opens its auction site 2001: its first fourth-quarter profit 2002: Expanded to web services 2003: its second profit 2004: its first-ever annual profit


Positioning at Amazon


Conclusion


Learning Activities: InterGrating (Interactive & Integrating) CS

• eBay versus Amazon: analysing internet marketing positioning strategies on both companies.


Learning Activities

• Discussion Points:

– In your opinion, why and how does Amazon position (changing focus) itself in this online purchasing competition?

– In your opinion, why and how does eBay position (reaction) itself in this online purchasing competition?


Question


Five step of positioning plan

Business

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