1. Lecture 5
Marketing Strategy in Internet Marketing

2. Marketing Strategy in Internet Marketing — Today’s Objectives
Objectives will be to:
Define the concept of marketing strategy
Explore effective segmentation, especially for pure play and bricks-and-mortar (BAM) firms
Examine traditional targeting and positioning strategies
Discuss the corporate and business-unit strategy of eBay

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

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

5. Assessing Business-Unit and Marketing Strategy Fit
Goal
Alignment
Implementation
Alignment
Fit
Resource
Alignment
Activity Alignment

6. Marketing-Strategy Decisions
Product
Promotion
Positioning and
Target-Market
Selection
Price
Distribution

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

8. Prioritizing Segments
Buyer Readiness Stage
Segmentation
Prioritization
Attitude
Trend/Market Leaders
Willingness to Pay

9. Marketing-Strategy Formulation for Pure-Play vs. BAM
Bricks-and-Mortar
Online Business-Unit Strategy
Business-Unit Strategy
Overall
Online
Offline
Marketing Strategy for Online Business
Integrated Marketing Strategy
What does the 4 p’s refer to in the e-Marketing Strategy box? The 4 p’s aren’t mentioned in the text, and the arrow near it doesn’t point to anything that looks like 4 p’s.
Marketing Strategy for Offline Business
Marketing Strategy for Online Business
Choices
1. Segmentation
2. Target market selection
3. Positioning
Choices
1. Same vs. different segment
2. Same vs. different target market
3. Same vs. different positioning

10. Perceptual Map for the Online Automobile Industry
What does the 4 p’s refer to in the e-Marketing Strategy box? The 4 p’s aren’t mentioned in the text, and the arrow near it doesn’t point to anything that looks like 4 p’s.

11. Perceptual Map with Customer Preference Clusters
What does the 4 p’s refer to in the e-Marketing Strategy box? The 4 p’s aren’t mentioned in the text, and the arrow near it doesn’t point to anything that looks like 4 p’s.

12. Bricks-and-Mortar Segmentation Scenarios
Market
Expansion
Reclassified—
Expansion
Yes
Changes in Size of
Market Segments
Market
Reclassification
No Change No
Reason for italics? No
Yes
Change in Segmentation Characteristics
Due to Internet

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

14. Bricks-and-Mortar Targeting Scenarios
Reason for italics?

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

16. Bricks-and-Mortar Positioning Scenarios and Guidelines
Blanket Targeting
Borrow heavily from existing offlline positioning
Tout basic advantages of the Internet – convenience and accessibility
New Opportunity Targeting
Reposition entirely
Position differentiations which cater to the new segment
Entire Segment
Beachhead Targeting
Also borrow from offline positioning
Focus more, however, on needs of the smaller group
Stress value-added advantages of the Internet
Bleed-Over Targeting
Use dual positioning
Leverage existing positioning
Position added benefits, such as augmented offerings via the Internet (e.g., increased product customizability)
Focus of Effort
Porrtions of a Segment
Reason for italics?
Same Customers
Different Customers
Customer Similarity

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

18. Breakdown of EBay’s Gross Merchandise Listed
Better title?

19. EBay’s Business-Unit Strategies

20. Offering-Based Segmentation of Auction Market

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

22. 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.