internet markerting 2

Amazon.com is currently positioning itself as an everyday low price leader. Select five products offered on Amazon, and then use the internet to compare Amazon’s prices with competitor prices. Does Amazon always offer the lowest prices? After conducting this research, do you believe that Amazon is truly an everyday low prices leader?
Amazon.com is currently positioning itself as an everyday low price leader. It is because Amazon.com always offered the lowest prices compare to other competitors such as eBay.com.
1. The first products is iPod Nano 4 Lether case.
Amazon: $4.93
eBay: $11.97
2. Second Product Adidas-Originals shoes-Italia-Training-White
AMAZON: $43.99
eBAY : $47.99
3. Third is toys product like Lego
Amazon : $20.99
eBAY : $44.95
4. Fourd Product Household Handbook by Editors of Southwater-books
AMAZON : $1.94
eBAY : $2.99
5. Last Product is television brand is LG. The the series is 32LH30 32-Inch 1080p.
Amozon : $749.95
eBay $ 341.84
After conducting this research, I do believe that Amazon is truly everyday offered low prices leader compare to other competitors such as eBay.com because as we know Amazon.com is the first mover and they always provided more compare to others. This can see by the price compare to the competitor that i have choose, eBay. eBay price is more expensive than Amazon.com. eBay also one of the type of business like Amazon.com. Amazon.com provide many products to their customer to make it easily to make a decision to purchase what they want. The advantages that Amazon’s give are better compare to other and thats why the Amazon.com always became more popular compare to other website especially to buy through online.

internet marketing

Differentiate between marketing-strategy formulation for Pure-Play company and Bricks-and-Mortar company

In e-business terms, a pure play is an organization that originated and does business purely through the internet, they have no physical store (brick and mortar) where customers can shop. Examples of large pure play companies include Amazon.com and Netflix.com . There are also many smaller, niche oriented pure play mail order companies such as women's travel accessories company Christine Columbus and fashion jewellery merchant Jewels of Denial. With a much lower barrier to entry, the Internet affords smaller companies the ability to compete with much larger brands due to typically lower overhead and marketing costs. Though multi-channel marketing is a hot buzzword, there is still plenty of growth opportunity for pure play merchants.

However Brick and mortar are organisations that operate physically. This is that they have physical stores in which they sell or provides services. Opposed to click and mortar, it is the variation of internet sales and physical in store sales. So the organisation sells products and services online and also contains a physical store.

Brick and mortar (B&M) refers to a company which possesses a building for operations[1]. The phrase can be a misnomer since not all buildings are physically constructed from bricks and mortar.

In the jargon of ecommerce, brick and mortar businesses are companies which have a physical presence (for example, a building made of bricks and mortar) — which offer face-to-face consumer experiences. This term is usually used to contrast with a transitory business or an internet-only presence (see online shop for comparison).

Pure-Play company

In pure play company they will breaking up a market customers into large identifiable groups or segments.

The bases that have been used in pure play company for segmentation :

a)Demographic

b)Geographic

c)Psychographic

d)Cognitive & behavioural

Effective segmentation have 3 rules

a)Meaningful

b)Actionable

c)Financially attractive

Target Market Selection for Pure Play

-Evaluating market segments for overall attractiveness & choosing segments that are consistent with the firm’s marketing strategy & capabilities.

-3 factors that can be look at:

a)Segment size & growth

b)Segment structural attractiveness

c)Company objectives & resources

Positioning for Pure Play: Strategies

· Features @ services such as style @ speed of delivery

· Benefits to be perceived such as happiness

· Specific usage occasions such as functional for a given purpose

· User category based on specific type of user

· Against another product- better than competitor

· Product-class positioning – different type of product from what customer expect

· Hybrid/ combination of the above

Positioning Plan for Pure Play: 5 steps

First : Identify actual product positioning

· Through consumer interviews @ questionnaires

· Identify competitors & their positions in the market

Second : Determine ideal product position

• Determine areas not being served by other products
• Identify customer preferences that not being met by an existing product.

Third : Develop alternative strategies for achieving ideal product positioning

• Attempt to reposition an existing product to a new position, with @ without a change in the product itself
• Introduce a separate a new product with the characteristics necessary for the ideal positioning

Four : Select & implement the most promising alternative

• Choosing a most favorable plan & consistent with a company’s objectives, resources & strengths.
• implementation should include specific guidelines concerning what activities to carry out & how they might ultimately be accomplished.

Fifth : Compare new actual position with ideal position

• Measures to track the success of positioning move
• Tracking & evaluation can show any deviation that might occur
• Reveal new opportunities & threats

INTERNET MARKETING STRATEGY:BRICKS-&-MORTAR

Bricks-&-Mortar firms on the other hand, need to integrate their Business-Unit Strategy with their internet strategy to align their offline capabilities with their online potential

A “brick and mortar business” is a term used mainly on the Internet to differentiate between companies that are based solely online, and those that have a real-world counterpart. A brick and mortar business has a commercial address “made of brick and mortar” where customers can transact face-to-face. The company might also have an online presence.

Of the many different business models such as e-commerce, home businesses, mail order, and brick and mortar, there are advantages and disadvantages to each. Some types of businesses are best served by, or even require a hands-on base of operations to provide their products or services, such as auto repair and healthcare; and many companies benefit from augmenting this model with an online presence. But prior to the Internet, a brick and mortar business was standard for nearly any company that sold goods. Today the business model is expanding to include e-commerce, in many cases foregoing the need of a commercial building all together. The reason lies behind the main disadvantage of a brick and mortar business: overhead.

Overhead is the cost of doing business whether or not a sale is made. Commercial property, whether rented, leased or bought, adds considerable overhead to a brick and mortar business. All else being equal, the cost of property, employees, insurance, and taxes are far greater for brick and mortars than for Internet-based businesses.

When e-commerce was new, however, some consumers were wary of doing business with companies that did not have a commercial address. This brings us to one of the main advantages of a brick and mortar business: customer security.

Many consumers believe a company isn’t as likely to fold overnight or disappear if it has a commercial base of operations. A physical storefront with a customer service counter and accountable manager served the traditional business model. The largest segments of all populations were raised with this model. Though the attitude is almost certainly relaxing, a brick and mortar business is still likely to pull weight with some consumers, even when shopping online.

Younger generations that have grown up with the Internet are less likely to have qualms as e-commerce has spent the last decade building solid reputations with the public. Giants like Amazon and eBay helped to foster new business models, while companies like Yahoo!™ made virtual storefronts available to entrepreneurs by offering turnkey business solutions with nearly zero investment. The e-commerce business models eliminate the overhead associated with a brick and mortar business, and makes e-commerce friendlier and financially achievable for virtually anyone.

Although the brick and mortar business model certainly won’t be fading into obscurity, virtual store fronts have opened a new world of opportunities for would-be businessmen and women with big ideas but little capital. Learn more about e-commerce to see if this business model that requires little to no investment is right for you.

Segmentation will either result in:

a. No Changes

• Segment characteristics and size stay the same

• Firms might find that online segmentation does not reveal any significantly new segments.

• The relative compositions and sizes of the online customer segments might be generally the same as the offline segments.

• A good example would be a firm specific business-to-business (B2B) site.

b. Market Expansion

• Segment size, financially or otherwise changes

• Firms might find that the characteristics of the online segment are the same as the characteristics of the offline segment, but that the segment size changes.

• For example, a segment might actually get larger through the increased reach of the Internet.

• This might happen if a company’s offering appeals to many consumers that were previously out of physical reach of the firm..

c. Market Reclassification

• Segment characteristics changes such that online consumer segments have distinctly different needs and tastes.

• More interestingly, online segmentation could reveal that customer segments are different on the Internet, either slightly or significantly.

• This might be due to the Internet’s ability to augment a company’s offering (such as through increased service or customizability) and hence create online customers that are more demanding or discriminating.

d. Reclassified-Expansion

• Segment changes in both size and characteristics.

• Naturally, and more likely, firms might experience a combination of the previous two scenarios, so that segments might simultaneously changes in both size and characteristics.

• This complicated scenario makes Internet marketing strategy all the more important, because targeting and positioning play a crucial role in determining online success.

Reclassified expansion – when segments change in both size & characteristics

Market reclassification – when customer segments are different on the internet

Market Expansion – characteristics are the same for online & offline segments

No change

Segment characteristics stay the same, but size may increase. Online capabilities are a product enhancement, appealing to all targeted customers.

Online capabilities are a product enhancement, appealing to only a subset of customers.

New capabilities online appeal to new online segments as well as offline ones.

New capabilities offer online appeal to only online customers.

TARGETING FOR BAM COMPANY

a. Blanket Targeting

• Firms might find that online segmentation does not reveal anything new that in effect the general characteristics of the segment remain the same as those of the offline segments.

• Alternatively, they may find that segment characteristics stay the same but that the segments get larger due to factors such as increased geographic reach.

b. Beachhead Targeting

• Another possible scenario arises when the online segment of customers is found to be smaller than the offline segment, perhaps representing a narrower band of tastes and preferences.

• This might be true if only part of a firm’s consumer base uses the Internet to make purchases.

c. Bleed-Over Targeting

• The online target segment includes part, but not all, of the offline segment but also targets part segments part of a distinctly new customer segment.

• The new target segment might include different types of customers if the online offering is augmented from the offline offering.

d. New-Opportunity targeting

• An online marketing strategy might choose an entirely different target segment..

• The target customer segment represents distinctly different needs and preferences than the traditional offline segment

POSITIONING FOR BAM

a. Blanket Positioning

• The target segment does not change and appropriate positioning is fairly simple.

• A good strategy would likely borrow heavily from existing offline positioning strategies, since the goal is to appeal to the same group of customers

b. Beachhead Targeting

• The target segment is a subsection of the larger, offline segment, the positioning is similar but might be more focused toward the smaller customer group..

• A positioning strategy might stress more of the value-added advantages of the Internet.

c. Bleed-Over Targeting

• The target segment is composed of both old customers and a new type of customer.

• The positioning would resemble the offline offering, but also make the online offering attractive to new type of customers such a positioning strategy will try to appeal to previously different segments.

d. New-Opportunity Targeting

• Repositions the offering entirely attempting to capture the attention of a completely new target segment.

• Arguably, such a positioning strategy is more effective if previous offline positioning strategies have not yet affected the new segment’s perception of the offering.

Summary

Business-Unit Strategy must “fit” with Marketing Strategy to ensure that there is alignment between goals, resources, activities and implementation of strategies.

The three key components of traditional marketing strategies also apply to pure play companies

Internet marketing is more complex for Bricks-&-Mortar companies because they must integrate their traditional strategies with their internet strategies

Segmentation is more complex for Pure Play companies because geographic boundaries are broken

Segmentation for BAM companies may result in new segment characteristics and sizes, as well as the ability to meet new customer’s needs from different locations

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