E Marketing Ch 8

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    E-Marketing

    Dr. Karim Kobeissi

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    Chapter 8: Segmentation, Targeting,Diferentiation, and Positioning

    Strategies

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    The 1-800-Flowers Story

    $n 1%& Jim

    e'tended the

    (rand to the

    $nternet and o)er

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    The 1-800-Flowers Story

    Jim .sed S/S data

    mining sotware to

    identiy c.stomer

    segments or (etter

    targeting#

    The sotware analy2ed

    the clickstreams and

    3.rchasing 3atterns o

    the 4rm5s *1 million

    c.stomers#

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    T6E 1-800-F79E:S ST:Y& CNT#

    1-800-Flowers can res3ond to the segment o

    one 3erson and their 3.rchasing 3atterns#

    The 9e( site5s Face(ook 3age has nearly

    %00&000 likes& nearly 1+&000 3eo3le talking

    a(o.t the site& and oer *0&000 Twitter

    ollowers#

    er hal o its +#"M online c.stomers are

    re3eat (.yers#

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    Market Segmentation

    Market Segmentation is the s.(-

    diiding o c.stomers into

    homogeno.s s.(-set o

    c.stomers where any s.(-set

    may conceia(ly selected as

    market target to (e reached

    with distinct Marketing Mi'#

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    6ow Can 9e Segment the Market;

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    Two market segments hae ca.ght the interest o /mericans e-

    marketers*"#*?=& S.r 9e( >**#!?=&

    E-mail >*0#+?=#

    e m o g r a 3 h i c S e g m e n t s

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    ine Geogra3hic Segmentation

    The ollowing are some e'am3les o aria(les

    oten .sed in oine geogra3hic segmentations=#

    7ook or Com3etitie /dantages#

    T ti li C t

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    Targeting nline C.stomers E-marketers select a targeting strategy#

    9hich targets to sere online# 9hich locations#

    ther actors#

    Two targeting strategies are well-s.ited or the

    internet#

    Niche marketing >Concentrating all marketing e)orts

    on a small (.t s3eci4c and well de4ned segment o

    the 3o3.lation=#

    Micromarketing >indiid.ali2ed targeting=#

    The internet5s (ig 3romise is indiid.ali2ed targeting#

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    i)erentiationDiferentiation is the act o designing a set o

    meaning.l di)erences to disting.ish thecom3anyQs o)ering rom com3etitorQs o)erings#

    / (rick and mortar com3any can di)erentiatealong % dimensionsthe .nderstanding and iew o themarket a(o.t the com3any=#

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    i)erentiation Thro.gh the Serices

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    i)erentiation Thro.gh the Sericesimension

    rdering ease

    eliery

    $nstallation

    C.stomer training

    C.stomer cons.lting

    Miscellaneo.s serices

    i)erentiation Thro.gh the ersonnel

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    i)erentiation Thro.gh the ersonnelimension

    Com3etence

    Co.rtesy

    Credi(ility

    :elia(ility

    :es3onsieness

    Comm.nication

    i) ti ti Th h th i t i( ti Ch l

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    i)erentiation Thro.gh the istri(.tion Channelimension

    Coerage

    E'3ertise o the channel managers

    erormance o the channel in ease o ordering&

    and serice& and 3ersonnel

    i)erentiation Thro.gh the $mage

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    i)erentiation Thro.gh the $mageimension

    /n e)ectie image does three things or a

    3rod.ct or com3any#

    1= $t esta(lishes the 3rod.ctQs 3lanned character

    and al.e 3ro3osition#

    *= $t disting.ishes the 3rod.ct rom com3eting

    3rod.cts#

    @= $t deliers emotional 3ower and stirs the hearts

    as well as the minds o (.yers#

    i) i i li

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    /n online com3any can di)erentiate its

    o)ering along many dimensions&

    incl.ding c o n =

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    o s i t i o n i n g > c o n =The end res.lt o 3ositioning is the creation o a market-oc.sed

    'a!ue proposition # The set o$ bene(ts a %ompan"

    promises to de!i'er to %ustomers to satis$" their needs-

    to answer the c.stomer5s .estion< 9hy sho.ld $ (.y yo.r

    o)er rather than a com3etitor5s o)er;U it is a sim3le clear

    statement o why the target market sho.ld (.y the 3rod.ct#

    Su%h 'a!ue propositions diferentiate one brand $rom

    another and the produ%t)s position %an be 'ie*ed as the

    main resu!t o$ its diferentiation.

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    6ow Many i)erences to romote;

    Many marketers advocate promoting only one

    beneft in the market (Your market oering may

    have many dierentiators, actually should have

    many dierentiators in product, service,

    personnel, channel, and image).

    Aotler mentions that do.(le (ene4t 3romotion may (e

    necessary& i some more 4rms claim to (e (est on the

    same attri(.te# Aotler gies the e'am3le o Dolo&

    li iti i H

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    The e-marketer5s goal is to (.ild a 3osition on

    one or more (ases that are releant and

    im3ortant to the cons.mer#

    Firms can 3osition (ased on technology&

    (ene4ts& .ser category& or com3etitie 3osition#

    The (rand story m.st (e told rom the

    c.stomer5s iew3oint#

    nline ositioning Hases

    H/SES /N ST:/TEG$ES

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    rod.ct or serice attri(.tes >$illage=

    Technology 3osition >My Dirt.al Model=

    Hene4ts 3osition >Aim(erly Clarke 6.ggies=

    Bser category 3osition >B#S# e3t# o Commerce=

    Com3etitor 3osition >Dimeo=

    $ntegrator 3osition >The Anot=

    H/SES /N ST:/TEG$ESF: S$T$N$NG

    Comm.nicating the Com3any5s

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    Comm.nicating the Com3any sositioning

    nce the com3any has deelo3ed a clear 3ositioning

    strategy& the com3any m.st choose ario.s signs

    and c.es that (.yers .se to con4rm that the 3rod.ct

    deliers the 3romise made (y the com3any#