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Electronic Commerce
Creating a Successful Web
Presence
Marketing Strategy
Business Model
 The method by which a firm builds and
uses its resources to offer its customers
better value than its competitors and to
make money doing so!
Two major parts of the business model:
 Value Proposition
 Financial Model
Value Proposition
 The value your company adds that would
make customers switch to you from their
current provider.
Concepts involved in Value Proposition
 Choice of Segments
 Choice of Focal Customer Benefits
 Choice of Unique and Differentiating
Capabilities
Value Proposition
 Choice of Segments
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market size or growth
unmet customer needs
weak or no competition
 Choice of Focal Customer Benefits
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One or two KEY benefits based on the marketing mix variables
Ex: fast delivery, high quality products, customer service, lowprices, unique product
 Choice of Unique and Differentiating Capabilities
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Also known as : Core Competencies or Unique Resources
Tangible assets (location), Intangible (Brand name) or
corporate skills and capabilities (knowledge of customers)
Financial Models
 There are four revenue models:
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Advertising (sell ads, site sponsorships,
interstituals)
Product sales (income from the sales of products,
services, or information)
Transaction (revenue from charging a fee or a
taking a % of a transaction)
Subscription (subscriber fees for magazines,
information, services, …)
Or a combination of these
Revenue Model - Advertising
Revenue Model – Product Sales
Revenue Model – Transaction
eBay fee Structure
http://pages.ebay.com/help/sellerguide/selling-fees.html
Revenue Model – Subscription
The Nature of
Communication on the Web
Most Mass Marketing
Involves One-Way
Communications Aimed
At Consumers.
Direct Marketing
Involves Two-Way
Interactions With
Customers.
Mass
Marketing Vs.
One-to-OneMarketing
Marketing
Mass
Marketing
One-to-One
Average Consumer
Customer Anonymity
Standard Product
Mass Production
Individual Customer
Customer Profile
Customized Market Offering
Customized Production
Mass Distribution
Individualized Distribution
Mass Advertising
Individualized Message
Mass Promotion
Individualized Incentives
One-Way Message
Two-Way Messages
Economies of Scale
Economies of Scope
Share of Mind
Share of Customer
All Customers
Profitable Customers
Customer Retention
Customer Attraction
“New” Marketing Approaches
Market Segmentation
Market Targeting
Market Positioning
Market Segmentation
Age Occasions
Geographic
 Gender
Benefits
 Family Size / Life Cycle
Demographic  Income
User Status
 Occupation
Usage Rate
 Education
Psychographic
Loyalty Status
 Religion
 Race
Readiness Stage
Behavioral
 Generation
Attitude Toward Product
 Nationality
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Market Targeting
Evaluating Market Segments
 Segment Size and Growth
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Analyze current sales, growth rates and expected
profitability for various segments.
 Segment Structural Attractiveness
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Consider effects of: competitors, availability of
substitute products and, the power of buyers &
suppliers.
 Company Objectives and Resources
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Company skills & resources needed to succeed in
that segment(s).
Look for Competitive Advantages.
Market Targeting
Choosing a Market-Coverage Strategy
Company Resources
Company Resources
Product Variability
Product’s Stage in the Life Cycle

Market Variability
Competitor’s Marketing Strategies
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Product Variability
Product’s Stage in the Life Cycle
Market Variability
Competitor’s Marketing Strategies
Choosing a Positioning Strategy
 Product’s Position - the way the product is
defined by consumers on important attributes the place the product occupies in consumers’
minds relative to competing products.
 Marketers must:
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Plan positions to give their products the greatest
advantage in selected target markets,
Design marketing mixes to create these planned
positions.
Creating and Maintaining
Brands on the Web
Brand – a name, term, sign, symbol, or design, or a
combination of these, that identifies the maker or seller
of a product or service
Web Brands Make an Impact
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Books:
Music:
Computer Software:
Computer Hardware:
Clothing:
Travel:
Autos:
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Amazon.com (56%)
CDNow (24%)
Microsoft (30%)
Dell (20%)
The Gap (12%)
AOL, Yahoo!,
Travelocity (each 8%)
 Yahoo! (6%)
Purpose of Branding
Differentiation
Consistency
Quality &
Value
Attributes
Branding Forms
Brand Awareness – the knowledge that
a brand exists
Brand Equity - the set of assets (or
liabilities) linked to the brand that add
(or subtract) value
Brand Loyalty – A continued behavior
associated with a particular brand
Brand Building
 Advertising / Promotion
Short-term … affects awareness not equity
 Emotional vs. Rational
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 Product Quality
 Customer Service
Purchase support
 Post purchase support
 Information / Personalization
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Emotional … Rational …
Customer Service
 Personalized service based on previous
purchases and inquiries
Other Branding Methods
Brand Extensions
Co-Branding
Choosing Your Name
Six Earmarks of a Good Domain Name
1. A good domain name is short.
2. A good domain name is memorable.
3. A good domain name isn't easily confused
with others.
4. A good domain name is hard to misspell.
5. A good domain name relates to your business
name or core business.
Nameboy
http://www.nameboy.com
Network Solutions' NameFetcher
http://www.networksolutions.com/purchasing/nameGen.jhtml
E-gineer Dominator
http://www.e-gineer.com/domainator/