Five Forces ( Porter ) 1. Bargaining power of customers – online buyers is increased since they have a wider choice and prices are likely to be forced down through increased knowledge & price transparency. 2. Bargaining power of suppliers- suppliers’ bargaining power if reduced since here are wider choices and increased commoditization due to e-marketplaces. 3. Threat of substitute products- significant threat since new digital products or extended products can be readily introduced. Introduces faster intro of products and services. 4. Threat of new entrants- barriers to entry are reduced enabling new competitors. Internet services are easily to imitate which make it easy for “fast followers”.5. Intensity of competitive rivalry- Internet encourages commoditization which makes it less easy to differentiate products. Rivalry becomes less intense as product lifecycles decrease and lead times for new product development decreases.
Ch4 Digital Marketing Strategy
Tangible benefits- increased sales from new sales leads giving: new customers, new markets. Existing customers ( repeat- selling, cross selling), Cost reductions from: reduced time in CS, online sales, reduced printing and distribution costs of marketing communications.
Intangible benefits- Corporate image communication rise due to increased revenue from: enhanced brand, rapid and responsive marketing communications including PR. Improved CS, learning for future, meet customer expectations to have a website, identify new partners, suppose existing partners better, better management of marketing info and customer info, feedback from customers on products.
Break Revenue = fixed cost / (contributed margin price – cost); this does not allow us to know demand.
Ch 8 Campaign Planning for Digital Media
Marketing Communication Plan: Objectives: A (audience), I(interest), O(opinions), Response mechanisms, specific landing page, Segment + TM (target market) – digital habits, how tm view information, psychographics –
1) Building Long Term Goals, Relationship, Sales & Leads (SMART= Specific, Measurable, Actionable, Relevant and Time-Related) : Goals of achieving certain # of unique visitors, Goals for conversion/ interaction goals - encourage trials, build in house permission- based list, encourage further purchases
2) Short Term Goals- Launch, sales event (burst promo), events – conversion rates and repeat purchases.
Creative Plan: Objectives: What we want to create to satisfy our audiences, what boundaries and what does the brand need? Starting with communication with customers, consider target positioning ( Perceptual maps), Use questions to help check OVP such as: What is the objective? ( firm sales? Free trials? Gather names? Produce qualified leads?), who is our TM, what will your message tell the tm, does it fit into the positioning map. What benefits are you offering and what makes it specials?
Budget + Media Mix: objective: provide affordable marketing ways : fix cost + variable cost, % of sales, Competitive edge: based on what competitors use, check financial statements of competitors. Objective + Task: Built by all task required to get cost, Make a plan and chart to find out distribution of budget to the medium the company is using to promote with.
Integrated IMC ( Integrated Marketing Communication) Plan: Timeline, purchase what vocabs to get SEO effectively used, product launch how it will be broadcasted
Nike Fuel Band- Targets Young Competitive, tech savvy users & existing customers ( Nike +), Challenge for Nike Fuel Band – continual usage of fuelband and continual stickiness to fuelband, Objectives is to increase sales and increase stickiness used with Nike fuelband / products, Response Mechanism is to create social engagement, landing page will lead to click of the website. Stickiness gamification ( turn things into games to make it behavioral- getting familiar to the product) Creative Concept is: As long as you have a body you