The Strategic eMarketing MixThe Strategic eMarketing Mix

eProduct StrategyeProduct Strategy Always ask… “what business are we in”, “what

are our core competencies” Products can be reengineered for electronic

exchange Search for new value-adding layers in product

and service offerings branding and brand strength are a hot item again! Cross-selling> product grouping

Pop Up Window linked to the Compaq site….

Internet tailoring as well as traditional promotions, relationships with online stores

Product ReengineeringProduct Reengineering

Information is a saleable item:

Services and CommunitiesServices and Communities

Hey Mr. DJHey Mr. DJ

What’s going on with Napster? Take 5 minutes and find out what the fight

is about….. What solutions do you see? Any inevitabilities? Who are the stakeholders? What is music worth……and to who?

Is Music the Product?Is Music the Product?

Why not give it away? When a product is promotion and

promotion is the product…….– Are concerts product or promotion?– Are songs product or promotion?

Who stands to gain/lose?

ePricing StrategyePricing Strategy

Cost restructuring afforded by channel reduction and/or reengineering.– Also channel blow out! Hypermediation

Price is key in many eBusiness models– auctions, reverse bidding, group purchasing

power, dynamic pricing. Distinction between traditional versus

electronic channel pricing

eDistribution StrategyeDistribution Strategy

Disintermediation– removal of layers of intermediaries between sellers

and buyers Reintermediation

– redefining the role of traditional intermediaries by offering value added services

– establishing new electronic intermediaries in place of disintermediated traditional intermediaries

Hypermediation

Channel ConflictChannel Conflict

No shoes at Nike.com? No jeans at Levis.com? Compaq…..the $100 million lesson

Read the articles listed under today’s topic on the Course Web Site

Value Adding From Yours Truly!

Pack it up and Move it out...Pack it up and Move it out... Strain on physical

distribution – smaller lots to millions

more locations– huge growth opportunities

for distribution companies– distribution ….a service in

itself

Time for a chat...Time for a chat...

What are infomediaries? What other eDistribution issues should we

be concerned about…..

OK Andrew….Break Time!

Take a 15 minute working break and consider these distribution issues.

ePromotion StrategyePromotion Strategy Internet and email provide a host of new

opportunities for push and pull promotion. Can be easily and cheaply tailored for micro-

marketing promotion. Don’t forget traditional mediums

– mass media promotions have risen dramatically as companies build brand awareness off & on line

– www on the cereal box..the bus stop..even your wine cork

Attitude Model AIDA Process E-Commerce Advertising Strategy

Attention

Use offline media to attract the target audience’sattention. Use search engines to allow your Website to be found in searches. Use other Web siteswith the same or similar target audience as amedium for advertising your Web site.

Cognition (Think)

Interest

Push strategies should be used to sendinformation to your target market. Usecustomization and personalization techniques tomeet the individual’s needs. Targeted e-mail andpermission marketing are also useful in stimulatingthought and interest.

Affect (Feel)

Desire

Site design becomes all important. Developcontent and design that appeal to the targetmarket. Include relationship developmentcomponents that will keep the audience at thesite.

Conation (Do)

Action

Sales promotions and incentive should be used toentice actions.

Big IssuesBig Issues

Privacy Brand creation and awareness Cookies and push technologies

Strategic eMarketingStrategic eMarketing

Market Development

Product Development

MarketExpansion

MarketPenetration

New Product

Existing Product

New Market Existing Market

Are You Ready to Master Your Are You Ready to Master Your Internet Channel?Internet Channel?

How much does it cost me to provide services that customers could get for themselves over the Internet?

How can I use the information I have about individual customers to make it easier for them to do business with me?

What help can I give customers by using the experience of other customers or the expertise of my employees?

Will I be at a significant disadvantage if my competitors provide these capabilities to customers before I do?

Should You Pirate Your Value Should You Pirate Your Value Chain?Chain?

Can I realize significant margins by consolidating parts of the value chain to my customer?

Can I create significant value for customers by reducing the number of entities they have to deal with in the value chain?

What additional skills would I need to develop or acquire to take over the functions of others in my value chain?

Will I be at a competitive disadvantage if someone else moves first to consolidate the value chain?

Can You Create New Digital Can You Create New Digital ValueValue

Can I offer additional information or transaction services to my existing customer base?

Can I address the needs of new customer segments by repackaging my current information assets or by creating new business propositions using the Internet?

Can I use my ability to attract customers to generate new sources of revenue, such as advertising or sales of complementary products?

Will my current business be significantly harmed by other companies providing some of the value I currently offer on an a la carte basis?

Should I Become a Customer Should I Become a Customer MagnetMagnet

Can my industry be divided into logical product, customer, or business-model segments that could evolve into customer magnets?

What services could an industry magnet offer my customers that would make it efficient for them to select and purchase products or services?

What partnerships or alliances could I create to establish the critical mass needed to become an industry magnet?

Will the emergence of a competing industry magnet hurt my relationships with customers or my margins?