Understanding the online marketplaceDr Dave Chaffey for University of Derby 2011

Qualifications

Best Practice

Books

About Dave Chaffey

Strategy &analyticswww.smartinsights.com

Search & conversion

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Use Smart Insights to help you on the module:

www.smartinsights.com

The RACE digitalstrategy

framework

http://bit.ly/smartstrategy

What we need to cover in online marketplace analysis

Our case study : www.i-to-i.com

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Multichannel business with significant proportion of leadsand sales generated online

Audience in 4 key markets: UK & Ireland US Europe Australia & NZ RoW

Course popular with gapyear and career breakstudents

15,000 trained annuallyonline or on weekend TEFL

Use full range of digitalchannels integrated with call-centre sales

Why bother? What do we get from online marketplace analysis?

What would the Ecommerce manager of i-to-i need to knowabout the main marketplace players?

Tutorial / assignment homework

1. Create Internet-specific SWOT

2. Create marketplace map

A. Define main customer types to target

B. Analyse consumer behaviour: Online preferences – platforms, what they want? Buyer behaviour Search behaviour

C. Identify relevant partner sites

D. Find competitors and benchmark

Step 1. Output from tutorial – Internet SWOT

Strengths:

Weaknesses:

Opportunities:

SO Strategies• • • • • •

WT Strategies• • • • • •

Threats:

ST Strategies• • • • • •

WT Strategies• • • • • •

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Internet SWOT example

Source: Chaffey et. al. (2009) Internet Marketing: Strategy, Implementation and PracticeFT-Prentice Hall. 3rd edition. With permission. Pearson Education.

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Another Internet SWOT example

Source: Chaffey et. al. (2009) Internet Marketing: Strategy, Implementation and PracticeFT-Prentice Hall. 3rd edition. With permission. Pearson Education.

Internet five forces analysis – does this help?

Power ofsuppliers

Bargainingpowers ofcustomers

Extent of rivalrybetween

competitors

Threat ofsubsitutes

Threat of newentrants

The business

Porter, M. (2001) Strategy and the Internet. Harvard Business Review. March 2001, 62-78.

More choice +Soft-lock in

Comparison sites

http://www.ruderfinn.com/rfrelate/intent/intent-index.html

Start with the customer!

How do you spend your time online?

Which of these activities have you completed in the last 6 months? 1 Upload personal photos 2 Upload video 3 Managed a social network profile 4 Written own blog 5 Used microblog (Twitter)

6 Rated blog 7 Commented on blog 8 Rated / reviewed product

Rank the activities in order of importance

See http://www.marketing-online.co.uk/wiki/Social_Media_Usage_Statistics

Digital marketing isn’t just the Internet

Microprocessors are going into many different devices

...and 3 screens are now becoming mainstream...

When I want it and Where I want it.

Source: Lisa Harris (www.lisaharrismarketing.com)

Touch screen mobiles are becoming popular

...and so will Internet video on mobile devices...■ Its not so much the iPhone but

the large touch screen that has

produced the first

usable Internet

browsing mobile

device...

...and 3G “all you can eat”

connections.

UK phone networks forecast that half of UK will have large screen Internet mobile phones within four years.

Source: Lisa Harris (www.lisaharrismarketing.com)

Mobile and App OVP

http://www.smartinsights.com/blog/digital-marketing-strategy/marketing-opportunities-from-mobile-apps

Tip

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KeyPoint

KeyPoint

Step 2. Online marketplace map

Forrester Research on “site design personas” Ethnographic researchers

averaged 21 i/views per project for 4

personas, $47K $10K to 100 i/views for 8 personas,

$500K Examples:

Ford uses 3 buyer personas at Ford.com

Primary persona ‘Marie’ – just beginning car shopping process, hasn’t settled on brand, doesn’t know about cars, needs Help!

Staples.com has 7 for shoppers Microsoft had 7 for Windows XP

Segment on key characteristics/behaviours “Seeks high quality”, “Seeks low

cost” “Starting evaluation”, “Final

decision” Occasional visitor, frequent visitor

Step 2a. Identify 4-6 personas

http://carsonified.com/blog/design/how-to-understand-your-users-with-personas/

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For each persona define preferences for: Platforms

(web, email, mobile) Platform usage (hours) Content consumption: General site types & category-specific Social media - content creation & participation Search behaviour Trusted brands

Scenario-based usability test example

Key influencers / information sources

Step 2a. Main customer types for i-to-i

Finding current customer segments, partners using www.google.com/adplanner

B2B and B2C targeting examples

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Understanding keyphrase behaviour for brand and product preferences

http://www.smartinsights.com/blog/digital-marketing-strategy/tools-for-benchmarking-competitor-visitor-numbers/http://www.smartinsights.com/blog/seo/keyword-research-process/ http://www.smartinsights.com/search-marketing-alerts/best-link-analysis-tools-for-seo-and-online-pr/http://www.smartinsights.com/blog/online-pr-social-media/online-reputation-management-software/

Need to understand Internet impact on buyer behaviour – how does it change?

Figure 7.9 A summary of how the Internet can impact on the buying process for a new purchaser

See Chapter 2

Some changes to buyer behaviour

Search UGCrecommendations

through social networks

Comparison

- Brandless important

+ Viralmarketing

& E-PR

+ Brand more important

+ Paypal andGoogle sales

Behavio

ura

l ta

rgeti

ng

Behaviour evolves with Experience

1st year 2nd year 3rd year 4th year

E-mail;Search engines;Surfing

Researchtravel,films,jobs

Visit company/ brandsites

Buygoods;

visit gov’t sites

Buy at auction;

Downloadsoftware

ImmediateFast: extensions of PC use; read-only information

Medium: research for complex decisions

Slow: technically complex or financially risky

Source: Forrester Research. Analysis of Consumer Technographics 1999-2003. Base: Online consumers. Years mark average time needed for consumers to start activity

Step 2d Understanding online intermediaries

Portals = gateway = publishers Example:

Affiliates – compare prices Example:

Aggregators = price comparison sites and review sites = Revoo Example:

Blogs Example

Step 2d. Competitor benchmarking

Think of when you use a site online – what affects your experience and perception of brand?

Brainstorm 10-20 different characteristics of a site that the affect brand experience and then group them into 5 or 6 different areas you could use for benchmarking

What’s important to whether you buy again from a brand or site?

What makes an effective online brand?

Trust factors

What do site users care about (1)

Fogg et al. (2003) asked students to review sites to assess the credibility of different suppliers based on the website design. They considered these factors most important:

Design look 46.1% Information design/structure 28.5% Information focus 25.1% Company motive 15.5% Usefulness of information 14.8% Accuracy of information 14.3%

Defining your OVP

OVP - Online Value Proposition Reinforces core brand proposition and credibility,

but messaging shows: What can a visitor get from your online brand that…

They can’t get from you offline? They can’t get from competitors?

Communicate message forcefully: online and offline

Examples: ‘Compare. Buy. Save’. Kelkoo (www.kelkoo.com) ‘Earth’s biggest selection’. Amazon (

www.amazon.com) ‘Search the largest inventory of cars and trucks on

the Internet. More than 1.5 million listings, updated daily’ (www.autotrader.com)

Write down your online value proposition

KeyPoint

1e

www.i-to-i.com OVP

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Gaining site and business innovation ideas through Uservoice

Remember to review integration = Supporting channel-switching behaviour

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KeyPoint

Benchmark main types of digital communications tools used by competitors

How can social media help SEO

and expandingawareness?

Source: www.theconversationprism.net

Prioritising through the digital marketing radar

http://www.smartinsights.com/digital-marketing-strategy-alerts/prioritising-digital-marketing-radar/

Thank you! Let’s Connect! Questions & discussion welcome

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