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Lesson 5

Lesson 5. E-POSITIONING AND ADVANTAGE. What is an Small Business Entrepreneur ?. Entrepreneur n. a right brained business man or woman of positive disposition who attempts to make profit from opportunities by risk, initiative and guidance from www.2-small-business.com. SESSION OBJECTIVES.

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Lesson 5

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  1. Lesson 5 E-POSITIONING AND ADVANTAGE

  2. What is an Small Business Entrepreneur ? • Entrepreneur n. a right brained business man or woman of positive disposition who attempts to make profit from opportunities by risk, initiative and guidance from • www.2-small-business.com

  3. SESSION OBJECTIVES • EVOLUTION OF MASS MARKETING • SEGMENTATION AND CUSTOMISATION • NICHE MARKETING • E-COMMERCE COMPETITIVE ADVANTAGE

  4. MASS MARKETING STRATEGIES: • EXPLOIT ECONOMIES OF SCALE • RE-INVEST PROFITS IN PROMOTION • USE VERTICALLY LINKED DISTRIBUTION SYSTEMS • DOMINATE MARKET USING HIGH VOLUME / LOW PRICES • MASS MARKET BRANDS LATE ENTRANTS INTO E-COMMERCE MARKETS • ADVANTAGE IS RECOGNISED BRAND NAME

  5. EMERGING ISSUE OF DEPTH OR BREADTH OF ON-LINE PRODUCT LINE • CHRISTENSEN AND TEDLOW SUGGEST BATTLE MAY FOLLOW DEPARTMENT STORE VERSUS DISCOUNT RETAILER PATTERN • AMAZON.COM MOVING UP-MARKET OFFERING SIDE BREADTH OF PRODUCTS • DISCOUNTERS ENTERING WITH SPECIALISATION (DEPTH) AND LOW PRICES

  6. SEGMENTATION IS ABOUT DIVIDING MARKET INTO SPECIALISED CUSTOMER GROUPS • LEAN MANUFACTURING GAVE JAPANESE ABILITY TO MOVE INTO SHORT RUNS OF CUSTOMISED PRODUCTS • EMERGENCE OF IDEA TECHNOLOGY WOULD PERMIT ONE-TO-ONE MARKETING • OTHER TREND IS CUSTOMER DATA (E.G. LOYALTY CARDS) PERMITS DATA MINING TO FIND PATTERNS

  7. WEB-SITES OFFER REAL TIME DATA ON CUSTOMER BEHAVIOUR • INTERNET PERMITS ON-LINE CUSTOMISATION OF PRODUCT NEED • EXPERIMENTS BY P&G TO OFFER CUSTOMISED HBAS ON-LINE • MARKET NICHE IS VERY SMALL GROUP OF CUSTOMERS WITH SPECIALIST NEEDS

  8. MARKET NICHE USED TO BE PRESERVE OF SMALL FIRM • INTERNET OFFERS ACCESS TO ENTER NICHE BY LARGE FIRMS • HOWEVER ON-LINE NICHE LETS SMALL FIRM MOVE FROM SMALL MARKET TO BE A GLOBAL PLAYER • MICR-NICHING OF INDIVIDUAL PRODUCT FOR EACH CUSTOMER (E.G. SELF-MIXED MUSIC CD ORDERED ON-LINE)

  9. B2B ON-LINE MARKET NICHES BEGINNING TO EMERGE • EXAMPLE OF INDUSTRY AUCTION SITE FOR USED CONSTRUCTION EQUIPMENT • COMPETITIVE ADVANTAGE MODEL OF PORTER: • COST LEADERSHIP • DIFFERENTIATION • FOCUSED COST LEADERSHIP • FOCUSED DIFFERENTIATION

  10. FIGURE 5:1 AN EXPANDED E-COMMERCE COMPETITIVE ADVANTAGE OPTIONS MATRIX

  11. FIGURE 5:2 AN ALTERNATIVE CUSTOMER NEED MATRIX

  12. CONSERVATIVE TRANSACTIONAL ADVANTAGE BASED ON PRICE / QUALITY STANDARD PRODUCT COMBINATION (E.G. EASY JET U.K.) • CONSERVATIVE / RELATIONSHIP ADVANTAGE BASED STANDARD PRODUCT CUSTOMISED TO SPECIFIC CUSTOMER NEED (E.G. FEDEX)

  13. ENTREPRENEURIAL / TRANSACTIONAL ADVANTAGE BASED ON ENTIRELY NEW SOLUTION (E.G. MODBURY BUSINESS PLANNING TOOL) • ENTREPRENEURIAL / RELATIONSHIP ADVANTAGE BASED ON INNOVATION DEVELOPED IN PARTNERSHIP WITH CUSTOMER (E.G. MCKESSON ON-LINE DRUG OPERATION)

  14. Reasons to join www.2-small-business.com • To get FREE marketing content • To become a successful entrepreneur • To get these benefits • To get discounts on our services • To get FREE software

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