Chapter 3: Marketing Strategy in Internet Marketing

Marketing Strategy and the Importance of Fit Segmentation Targeting Positioning Conclusion

Exhibit 3.1: Assessing Business-Unit and Marketing Strategy Fit

Goal Alignment

Implementation Alignment

Fit

Resource Alignment

Activity Alignment

Exhibit 3.2: Marketing-Strategy Decisions

Product
Promotion

Positioning and Target-Market Selection

Price

Distribution

Chapter 3: Marketing Strategy in Internet Marketing

Marketing Strategy and the Importance of Fit Segmentation Targeting Positioning Conclusion

Exhibit 3.4: Prioritizing Segments

Buyer Readiness Stage

Attitude

Segmentation Prioritization

Trend/Market Leaders

Willingness to Pay

Exhibit 3.6: Marketing-Strategy Formulation for Pure-Play vs. BAM

Pure-Play
Online Business-Unit Strategy

Bricks-and-Mortar
Business-Unit Strategy

Overall Online Offline

Marketing Strategy for Online Business Choices 1. Segmentation 2. Target market selection 3. Positioning

Integrated Marketing Strategy

Marketing Marketing Strategy for Strategy Offline for Online Business Business Choices 1. Same vs. different segment 2. Same vs. different target market 3. Same vs. different positioning

Chapter 3: Marketing Strategy in Internet Marketing

Marketing Strategy and the Importance of Fit Segmentation Targeting Positioning Corporate and Business-Unit Strategy of EBay Conclusion

Exhibit 3.11: Bricks-and-Mortar Targeting Scenarios

Chapter 3: Marketing Strategy in Internet Marketing

Marketing Strategy and the Importance of Fit Segmentation Targeting Positioning Conclusion

Exhibit 3.9: Bricks-and-Mortar Positioning Scenarios and Guidelines

Entire Segment Blanket Targeting
Borrow heavily from existing offlline positioning Tout (advertise) basic advantages of the Internet convenience and accessibility

New Opportunity Targeting Reposition entirely Position differentiations which cater to the new segment Bleed-Over Targeting Use dual positioning Leverage existing positioning

Focus of Effort

Porrtions of a Segment

Beachhead Targeting Also borrow from offline positioning Focus more, however, on needs of the smaller group Stress value-added advantages of the Internet

Same Customers

Position added benefits, such as augmented offerings via the Internet (e.g., increased product customizability) Different Customers

Customer Similarity

Chapter 3: Marketing Strategy in Internet Marketing

Marketing Strategy and the Importance of Fit Segmentation Targeting Positioning Conclusion

Marketing Strategy in Internet Marketing Conclusion

Marketing Strategy and Business-Unit Strategy must be properly aligned for maximum impact

Both pure play and brick-and-mortar firms can rely on segmentation, targeting, and positioning in the online and offline domains The classical framework for strategic management remains the same; however, networked-economy firms require further consideration.