Download
1 / 53
560 likes | 974 Views
Chapter 2. The Internet micro-environment Situation analysis. Learning objectives. Identify the different elements of the Internet environment that impact on an organisation’s Internet marketing strategy
E N D
Chapter 2 The Internet micro-environment Situation analysis
Learning objectives • Identify the different elements of the Internet environment that impact on an organisation’s Internet marketing strategy • Complete an online marketplace analysis to assess customer, intermediary and competitor use of the Internet as part of strategy development • Evaluate the relevance of changes in trading patterns and business models enabled by digital channels
Questions for marketers • How do I complete a situation analysis as part of planning for digital marketing? • How are the competitive forces and value chain changed by the Internet? • How do I assess the demand for Internet services and customer behaviour? • How do I compare our online marketing with that of competitors? • What is the relevance of the new intermediaries?
Understanding customer search behaviour See http://www.davechaffey.com/seo-keyword-tools
Figure 2.3 A model of the Internet marketing conversion process
Figure 2.5 Model showing conversion between the digital channel and traditional channels during the buying process
Figure 2.6 i-to-i showing prominent phone numbers (http://www.i-to-i.com)
Evaluating demand levels • 1. Level of Internet access • Includes type of access – broadband and mobile • 2. Consumers influenced by using online channel: • Includes understanding type of sites which have influence – see Fig 2.2. Marketplace analysis and Figure 2.9 Information sources • 3. Transact online • Includes different types of transactions, not just sales, e.g. support, forum comments, etc.
Figure 2.7 Variation of broadband penetration in different countriesSource: OECD (http://www.oecd.org/sti/ict/broadband)
Figure 2.8 Usage of mobile phones in Europe and US (data for 3-month periodending August 2006)Source: M:Metrics, 2006
Figure 2.9 Information sources used to select retailersSource: EIAA (2008)
Figure 2.10 Percentage (by category) who bought online after researching onlineSource: EIAA (2008)
Consumer characteristics • Demographics: • Age, gender, social group • Webographics • Access methods and times • Personas: • Dulux example
Dulux persona example • Aims: • The aim was to position Dulux.co.uk (Figure 2.13) as “the online destination for colour scheming and visualisation to help you achieve your individual style from the comfort of your home”. Specific outcomes on the site are to browse colours, add colours to a personal scrapbook, use the paint calculator and find a stockist. Further aims were to ‘win the war before the store’i.e. to provide colour help tools that can help develop a preference for Dulux before consumers are in-store and to prompt other ideas to sell more than one colour at a time. • Specific SMART objectives were to increase the number of Unique Visitors from 1M p.a. in 2003 to 3.5M p.a. in 2006 and To drive 12% of visitors to a desired outcome (e.g. ordering swatches).
Target audience variation Based on research, it was found that the main audience for the site was female with these typical demographics and psychographics: • Would be adventurous 25-44 women, online • Lack of confidence with previous site: • - Gap between inspiration (TV, magazines, advertising) and lived experience (Large DIY sheds,nervous discomfort) • - No guidance or reassurance previously available currently on their journey • Colours and colour combining is key • Online is a well-used channel for help and guidance on other topics • 12 month decorating cycle • Propensity to socialise • Quality, technical innovation and scientific proficiency of Dulux is a given
Example personas • First time buyer. • Penny Edwards, Age: 27, Partner: Ben, Location: North London, Occupation: Sales Assistant • Part time Mum. • Jane Lawrence, Age: 37, Husband: Joe, Location: Manchester, Occupation: Part time PR consultant • Single Mum. • Rachel Wilson, Age: 40, Location: Reading, Occupation: Business Analyst
Business consumer characteristics • Variation in organisation characteristics • size of company (employees or turnover) • industry sector and products • organisation type (private, public, government, not-for-profit) • application of service (which business activities do purchased products and services support?) • country and region. • Individual role • role and responsibility from job title, function or number of staff managed • role in buying decision (purchasing influence) • department • product interest • demographics: age, sex and possibly social group.
Figure 2.14 Internet usage by businesses in European countriesSource: European Commission, 2008.
Consumer behaviour models • 1. Information / experience seeking behaviour models • 2. Hierarchy of response buying process models • 3. Multi-channel buying models • 4. Trust-based models • 5. Community participation models
1. Information / experience seeking behaviour models • Directed information-seekers. These users will be looking for product, market or leisure information such as details of their football club’s fixtures. They are not typically planning to buy online. • Undirected information-seekers. These are the users, usually referred to as ‘surfers’, who like to browse and change sites by following hyperlinks. Members of this group tend to be novice users (but not exclusively so) and they may be more likely to click on banner advertisements. • Directed buyers. These buyers are online to purchase specific products online. For such users, brokers or cybermediaries that compare product features and prices will be important locations to visit. • Bargain hunters. These users (sometimes known as ‘compers’) want to find the offers available from sales promotions such as free samples or competitions. For example, the MyOffers site (www.myoffers.co.uk) is used by many brands to generate awareness and interest from consumers. • Entertainment seekers. These are users looking to interact with the Web for enjoyment through entering contests such as quizzes, puzzles or interactive multi-player games.
2. Hierarchy of response buying process models Figure 2.15 A summary of how the Internet can impact on the buying process for a new purchaser
Figure 2.16 Initial product search showing e-retailers available
Figure 2.17 Comet product comparison facility (www.comet.co.uk): example page
4 Trust-based models Figure 2.18 A model of the relationship between different aspects of trust and consumer response based on the categories of Bart et al. (2005)
Figure 2.19 Segmentation based on information need and trustSource: Adapted from Forrester (2006) Teleconference Driving Sales With Segmentation Analyst: Benjamin Ensor of Forrester Research, February 27th 2006
Figure 2.20 Benchmark comparison of corporate websitesSource: Bowen Craggs & Co (www.bowencraggs.com)
Figure 2.21 Performance benchmark example for Canadian banksSource: Gomez (http://www.gomez.com/products/viewbenchmark.php?btype=9)
Figure 2.23 Jack Ma, CEO of Alibaba, explains his business strategy
Figure 2.26 Two alternative models of the value chain: (a) traditional value chain model, (b) revised value chain model
Figure 2.27 Lonely Planet online shop (http://shop.lonelyplanet.com)
Figure 2.29 Disintermediation of a consumer distribution channel showing: (a) the original situation, (b) disintermediation omitting the wholesaler, and(c) disintermediation omitting both wholesaler and retailer
Figure 2.30 Screentrade insurance intermediary (www.screentrade.com)
Figure 2.31 From (a) original situation to (b) disintermediation or (c) reintermediation or countermediation
Countermediation • Creation of a new intermediary • Example: • B&Q www.diy.com • Opodo www.opodo.com • Boots www.wellbeing.comwww.handbag.com
