Digital Marketing: Online Marketplace Analysis (PDF)

DIGITAL MARKETING ONLINE MARKETPLACE ANALYSIS: MICRO‐ENVIRONMENT WEEK 3 Asst. Prof. Dr. Gülsüm VEZİR OĞUZ  Chapter 2 ‐ Online marketplace analysis: micro‐environment Main Topics: Situation analysis for digital marketing Digital marketing environment...

DIGITAL MARKETING ONLINE MARKETPLACE ANALYSIS: MICRO‐ENVIRONMENT WEEK 3 Asst. Prof. Dr. Gülsüm VEZİR OĞUZ  Chapter 2 ‐ Online marketplace analysis: micro‐environment Main Topics: Situation analysis for digital marketing Digital marketing environment Understanding customer in digital markets Consumer. Choice and digital influence Customer characteristics Competitors Suppliers New channel structures Digital business models for e‐commerce 2  The purpose of this chapter is; Identify the elements of an organisation’s online marketplace that have implications for developing a digital marketing strategy Evaluate techniques for reviewing the importance of different actors in the microenvironment: customers, intermediaries, suppliers and competitors as part of the development of digital marketing strategy Review changes to business and revenue models enabled by digital markets. 3  Questions for marketers What are our capabilities for understanding our online marketplace? How relevant is the behaviour of the actors in the micro‐ environment to the future of our business? How do I complete a marketplace analysis and how does this inform our digital marketing planning? How are customers’ needs changing as digital platforms develop and what are the implications of such changes? How do I compare our online marketing with that of our competitors? How do we find suitable intermediaries at the planning stage of a digital marketing strategy? 4  Situation analysis for digital marketing Situation analysis; Collection and review of information about an organisation’s external environment and internal processes and resources in order to inform its strategies. 5  The digital marketing environment Micro‐environment Specific forces on an organisation generated by its stakeholders. Macro‐environment Broader forces affecting all organisations in the marketplace including social, technological, economic, political and legal aspects. 6  Understanding customer in digital markets Customer segments Search intermediaries Intermediaries, influencers and media or publisher sites Destination sites and platforms 7  Figure 2.2 An example of a customer journey map 8  Figure 2.3 An online marketplace map 9  Figure 2.4 Model Showing conversion between the digital channel and traditional channels during the buying process 10  Consumer choice and digital influence Customer characteristics: – Demographic variables – Psychographic and behavioural variables Social media and emotions Consumer Personas The buying process 11  Figure 2.9 Framework for understanding online customer experiences Source: Rose and Hair (2011) 12  Figure 2.10 A summary of how digital media can impact on the buying process in a new purchase 13  Competitors The shape and nature of online competitive markets Competitor analysis and benchmarking 14  The shape and nature of online competitive markets Porter’s five forces Bargaining powers of customers Power of Threat of The business suppliers subsitutes Extent of rivalry Threat of new between entrants competitors 15  Competitor analysis and benchmarking Competitor analysis Review of Internet marketing services offered by existing and new competitors and adoption by their customers. Benchmarking is the term used for structured comparison of e‐ commerce services within a market. Its purpose is to identify threats posed by changes to competitor offerings, but also to identify opportunities for enhancing a company’s own web services through looking at innovative approaches in non‐ competing companies. 16  Suppliers Digital marketing intermediaries Online intermediary sites 17  Digital marketing intermediaries Marketing intermediaries Firms that can help a company to promote, sell and distribute its products or services. Destination sites Sites typically owned by merchants, product manufacturers or retailers, providing product information. Online intermediary sites Web sites that facilitate exchanges between consumer and business suppliers. 18  New channel structures 19  Digital business model for e‐commerce Source: SmartInsights.com with permission. 20  Figure 2.15 Alternative perspectives on business models 21  Case study; Boo hoo – learning for the largest dot com failure Questions 1) Discuss which strategic market assumptions and decisions led to Boo.com’s inevitable failure? 2) Compare and contrast the marketing strategy of Boo.com with successful online travel and leisure retailer lastminute.com. Suggest what made the difference between success and failure 3) Use the framework of the marketing mix to appraise the marketing strategy and tactics of Boo.com 4) In many ways the vision of Boo’s founders was ‘ideas before their time’. Give examples of e‐retail techniques adopted by boo.com that are now common place. 22