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PRINCIPLES OF  INTERNET MARKETING NAPA CONSULTING GROUP
Topic: Internet Marketing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
First A Few Facts ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Baseline Definition of e-Marketing “… identifying,  understanding ,  collaboratively creating , and meeting  a segment  of human and social needs,  wants, desires, wishes digitally .” Adaptation of  Philip Kotler’s  original definition of marketing.
Customer Integrated Into Process Monologue One way Mass communication Static No interaction among customers Shotgun approach Hard to identify customers Hard to manage customers BEFORE AFTER Dialogue One-to-one marketing Real-time Dynamic Collaborative Segmented Rich customer interaction Rich customer data Customer Customers Supplier Supplier Internet
E-Marketing: More Than Just Your Website ACME Branded site Site linking Small businesses B2B partners Industry Business resource Hubs ,[object Object],[object Object],[object Object],[object Object],[object Object],Search engines - Regionally - Worldwide Outsource Partners Admin portal ,[object Object],[object Object],[object Object],[object Object],[object Object],First time visitors from search engines. Partners Other Blogs Other Blogs Forum A B C A B C PORTAL
Global Online Population ,[object Object],[object Object]
Websites Worldwide Netcraft November 2006 survey In May 2007, the number reported was a little over 118 million worldwide 70  million blogs in just 4 years.  120K blogs being added each day.
U.S. Online Ad Spending: 5.9% of the $285 billion total U.S. advertising market in 2006 Source: Wall Street Journal, May 25, 2007, pg. B1 $16.9
Advantages ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Strategic Advantages ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Benefit of Creating A “Virtuous Cycle” ,[object Object],[object Object],[object Object],[object Object],[object Object],Community and feedback loop integral part of shaping product
Recognize Elements of Value Creation:   Generic Value Chain Visual representation of what organizations do to create value.  Margin is the difference between Customer Perceived Value (CPV) and cost.  The primary and second activities attribute to cost. Primary Activities Support Activities Cost Profit = $ Price (Customer Perceived Value)   + Source: Porter’s value chain Margin Margin Inbound Logistics Operations Outbound Logistics Marketing & Sales Service Procurement Technology Development Human Resources Firm Infrastructure
Traditional Industry Supply Chain OEM SERVICE PROVIDER VAR Reseller End User Look to bypass intermediaries. Each entity looks very little beyond the next partner in the food chain.  Incremental value added. Value Chain Value Chain Value Chain Typical Service Provider Supply Chain Production based  value creation. (transforming inputs into outputs) Commerce based  value creation. (arbitrage)
Rearrange Your Supply Chain:   Create More Strategic & Symbiotic B2B Relationships ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],OEM Service Provider VAR Reseller End User Value Chain Value Chain Value Chain Build more strategic & symbiotic value chain. GOAL  Reduce duplicity Reduce costs Leverage resources Increase value
Disintermediate Internet OEM Service Provider Reseller End User Look for new ways to disintermediate the supply chain. Leverage business models or disintermediate to capture sources of competitive advantage.  ASP, On Demand, or B2B relationships to capture cost savings and revenue sharing.  Every step along the way (middleman or channel) is a cost point.  Each step that can be optimized means a cost savings that can contribute to more competitive offering. Web Centric New players like are disintermediating the old supply chain. In doing so, converting cost savings as a source of competitive advantage. $ cost $ cost Value Chain Value Chain Value Chain $ cost $ Price $ cost Value Chain
Baseline Guidelines ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
New Paradigm ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Impact on Product Mix ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Old 4Ps Paradigm 4Ps Value Creator Customer Product Place Pricing Promotion Almost no feedback loop. Higher risk of innovation and guessing market.
New Innovation Paradigm ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
New Paradigm: Collaborative Open Innovation 4Ps Value Innovator Customer Product Brand Capturing customer interaction creates tremendous value and reduces risk. Promotion
Contagions ,[object Object],WOMM widget bliget chicklet buzztracker mashup delicious social media  social bookmarking SMO trackback digg tag typelist blogroll viral marketing buzz marketing vblog podcasting contentcasting
92%  PREFER WOM RECOMMENDATION 91%   LIKELY TO BUY ON RECOMMENDATION
Applications / Hosted Services ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],http://www.websitemagazine.com
Gopal Das http://gotastrategy.typepad.com   eCeltic  Consulting Services Pvt Ltd e-marketing & strategy consultant

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Principles Of Internet Marketing2951

  • 1. PRINCIPLES OF INTERNET MARKETING NAPA CONSULTING GROUP
  • 2.
  • 3.
  • 4. Baseline Definition of e-Marketing “… identifying, understanding , collaboratively creating , and meeting a segment of human and social needs, wants, desires, wishes digitally .” Adaptation of Philip Kotler’s original definition of marketing.
  • 5. Customer Integrated Into Process Monologue One way Mass communication Static No interaction among customers Shotgun approach Hard to identify customers Hard to manage customers BEFORE AFTER Dialogue One-to-one marketing Real-time Dynamic Collaborative Segmented Rich customer interaction Rich customer data Customer Customers Supplier Supplier Internet
  • 6.
  • 7.
  • 8. Websites Worldwide Netcraft November 2006 survey In May 2007, the number reported was a little over 118 million worldwide 70 million blogs in just 4 years. 120K blogs being added each day.
  • 9. U.S. Online Ad Spending: 5.9% of the $285 billion total U.S. advertising market in 2006 Source: Wall Street Journal, May 25, 2007, pg. B1 $16.9
  • 10.
  • 11.
  • 12.
  • 13. Recognize Elements of Value Creation: Generic Value Chain Visual representation of what organizations do to create value. Margin is the difference between Customer Perceived Value (CPV) and cost. The primary and second activities attribute to cost. Primary Activities Support Activities Cost Profit = $ Price (Customer Perceived Value) + Source: Porter’s value chain Margin Margin Inbound Logistics Operations Outbound Logistics Marketing & Sales Service Procurement Technology Development Human Resources Firm Infrastructure
  • 14. Traditional Industry Supply Chain OEM SERVICE PROVIDER VAR Reseller End User Look to bypass intermediaries. Each entity looks very little beyond the next partner in the food chain. Incremental value added. Value Chain Value Chain Value Chain Typical Service Provider Supply Chain Production based value creation. (transforming inputs into outputs) Commerce based value creation. (arbitrage)
  • 15.
  • 16. Disintermediate Internet OEM Service Provider Reseller End User Look for new ways to disintermediate the supply chain. Leverage business models or disintermediate to capture sources of competitive advantage. ASP, On Demand, or B2B relationships to capture cost savings and revenue sharing. Every step along the way (middleman or channel) is a cost point. Each step that can be optimized means a cost savings that can contribute to more competitive offering. Web Centric New players like are disintermediating the old supply chain. In doing so, converting cost savings as a source of competitive advantage. $ cost $ cost Value Chain Value Chain Value Chain $ cost $ Price $ cost Value Chain
  • 17.
  • 18.
  • 19.
  • 20. Old 4Ps Paradigm 4Ps Value Creator Customer Product Place Pricing Promotion Almost no feedback loop. Higher risk of innovation and guessing market.
  • 21.
  • 22. New Paradigm: Collaborative Open Innovation 4Ps Value Innovator Customer Product Brand Capturing customer interaction creates tremendous value and reduces risk. Promotion
  • 23.
  • 24. 92% PREFER WOM RECOMMENDATION 91% LIKELY TO BUY ON RECOMMENDATION
  • 25.
  • 26. Gopal Das http://gotastrategy.typepad.com eCeltic Consulting Services Pvt Ltd e-marketing & strategy consultant

Notas do Editor

  1. Companies can team up to gain efficiencies in their respective value chains or disintermediate to capture higher value. Fundamentally, the more direct the relationship of the value creator and consumer, the greater the opportunity to maximize value
  2. Look at the big picture. As voice becomes commoditized, it impact everyone in the supply chain – not just the carrier. This is fundamentally why, most of the VoIP infrastructure suppliers are not seeing the same ROI as other VoIP segments. A better strategy is for the entities within the entire supply chain, collaborating in a symbiotic fashion to address the same challenges and goals. Moreover there is a fair amount of duplicity (inefficiencies) in this form of linear supply chain.