Chapter 4 - Internet marketing strategy

Learning Objectives

How does Internet marketing strategy relate to both marketing and business strategy?

The Internet marketing strategy is basically a part of the bigger picture in the traditional marketing strategies. It allows a business to create a set of goals, so that the business can manage this part of the multichannel marketing of the company. The Internet marketing strategy also relates to the business strategy by ways of making sure that all of the Internet marketing strategies align with what the business is trying to accomplish. 

What are some important opportunities that can arise from the Internet?

Internet marketing strategies can lead to other opportunities that can expand a business. This might include finding a new niche or finding new target markets that want or need the product or service that is being offered. It is import to research all avenues of an Internet marketing strategies in order for a business to find these hidden jewels. It can also lead to cost savings, an improved corporate image, or improved customer service, which can be a very positive thing for a business.

What are some important threats that can arise from the Internet?

Internet marketing strategies can also lead to finding threats that may arise such as competitor taking over more market share or finding that the product or service might not fit within a certain target market that the product or service was initially intended for. Other types of threats might include the emergence of new competitors a market. Another might be the discovery of conflicts of other marketing channels, which might be hindering growth.

What are some alternative strategic approaches to the Internet?

There are several alternative strategies, which can be used on the Internet. One such strategy is that of email marketing or email newsletters. Businesses can promote products or services through the use of the newsletters. Informing the customers of new products or how a product can be used is a very beneficial strategy to reach customers. Another strategy could be continually updating online content. This keeps customers engaged and coming back the website on a regular basis. Interaction with the new social medias allows businesses to state engaged with their customers and allows them to see what people are saying about the product or services they produce.

Questions For Marketers

What approaches can be used to develop Internet marketing strategy?

The development of a good Internet marketing strategy is very beneficial to a business. The Internet marketing strategy allows a business to maintain goals and to exploit opportunities that might not have been seen without it. The main approaches for a business to develop an Internet marketing strategy include:

1. Setting goals
2. Reviewing all the possible situations
3. Formulate the strategy
4. Allocating resources and monitoring the goals that were set

How does Internet marketing strategy relate to other strategy development?

Like many of the other strategy developments, an Internet marketing strategy allows a business to fully analyze all aspects of the business. It allows the business to develop goals and benchmarks to keep Internet marketing inline with other strategies of the business. A business wants all of its strategies to work together, so that the business will thrive. If the business doesn't develop these strategies, then the business won't function at optimal capacity. One hand will not know what the other hand is doing. Like a traditional marketing strategy, an Internet marketing strategy allows a business to control the multichannel marketing aspects of the business. 

What are the key strategic options for Internet marketing?

There are eight key strategic options that a business can approach when creating an Internet marketing strategy. 

1. Marketing an product development This option includes strategies for market penetrations, market development, product development, and diversification.  Each strategy is important to allow a business to create a plan that will distinguish themselves apart from their competitors and also build relationships with the markets that are identified.
    
2. Business and revenue models strategies
   
   This option includes creating the business and revenue models that will be used for the business. These establish a framework for how the business will do business and create income to survive.
    
3. Target marketing strategy
   
   This option includes strategies for segmentation or identifying the customers needs, target marketing or evaluating segments, positioning or identifying the position of each segment, and planning or deploying resources to achieve the plan. 
    
4. Positioning and differentiation strategy
   
   This option includes strategies for product performance, price performance, transactional performance, and relationship performance.
    
5. Multichannel distribution strategy
   
   This option includes strategies for how the products will flow from the manufacturer to the customer.
    
6. Multichannel communications strategy
   
   This includes strategies on how the Internet integrates with other communication channels. This might include how does the company respond to queries from the customer or which channel of communication to use to encourage growth.
    
7. Online communications mix and budget
   
   This includes strategies on how much to spend on online communications and what type of online communications to use to reach as many of the identified target market as possible.
    
8. Organizational capabilities
   
   This includes strategies on internal business such as if there is enough resources to maintain the online marketing, or who can do it, and so on. It is important to figure out the details internally in order to know if outside help is needed in the business.