e-Marketing

Chapter 9Chapter 9 Differentiation and Positioning StrategiesDifferentiation and Positioning Strategies

經管所碩二劉于遜 9637512柯育菁 9637527

E-Marketing StrategyE-Marketing Strategy

Complete E-Marketing StrategyComplete E-Marketing Strategy

Differentiation& Positioning

Strategies

Segmentation& TargetingStrategies

Consumer Behavior

Online

E-Marketing Research

2

AgendaAgenda

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DifferentiationDifferentiation Dimensions

Let’s Get Technical: iTunes iPodDifferentiation Strategies

Based and Strategies for Positioning

Summary

DifferentiationDifferentiation


The only way a company can survive is to differentiate.

- RALPH F. WILSON, DIFFERENTIATE OR DIE

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Differentiation is “the process of adding a set “the process of adding a set of meaningful and valued differences to of meaningful and valued differences to distinguish the company’s offering from distinguish the company’s offering from competitors’ offerings” competitors’ offerings”

-Kotler and Keller, 2006

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Differentiation v.s. Positioning

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ProductProduct

ServicesServicesPersonnel

ChannelChannel

ImageImage

Five DimensionsFive Dimensions

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Product DifferentiationProduct Differentiation

Traditional off-line emphasized

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OnlineGoogle v.s. Yahoo & MSN

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Let’s Get Technical – iTunes iPodLet’s Get Technical – iTunes iPod

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2233

11

22

600MB600MB600MB600MB160GB160GB

(300 (300

Albums)Albums)

160GB160GB

(300 (300

Albums)Albums)

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Literally limitless assortment of products that companies are able to offer and the ability to capitalize on this huge assortment as a platform to customize product offering for individual customers.

Long tail concept (Chapter 1)

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DifferentiationCustomization

DellBundling

Blue Nile: Customized diamond rings

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AdvantageFrom distributor directly to customerGone from retailers’ shelves

DisadvantagePacking materials for shipment

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ProductProduct


ChannelChannel

ImageImage


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Service DifferentiationService Differentiation

Ability to respond more rapidly to customer concerns.

Ability to receive customer feedback through e-mail 24 hours a day.

CustomerService

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Service DifferentiationService Differentiation

Features offered and service consumption experience.

Distribution of products ordered online.

OtherCustomer Service

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ProductProduct


ChannelChannel

ImageImage


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Personnel DifferentiationPersonnel Differentiation

In the past

Internet

Personalized service and one-to-one relationships required costly skilled personnel.

Internet auto process leads to a cost leadership advantage over off-line companies.Higher levels of service Higher levels of service

& lower prices! & lower prices! Also for the end users.Also for the end users.

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ProductProduct


ChannelChannel

ImageImage


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Channel DifferentiationChannel Differentiation

Internet doubles as location-free and time-free distribution and communication channel.

AnytimeAnytime AnywhereAnywhere

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Channel DifferentiationChannel Differentiation

Entire distribution

channel

For digital products$ Music & Software

downloads

Specialized personal services

“Do it yourself” －Conduct activities

Transaction and distribution

channel

Commercial transactions online

Communication channel

Product & Service information on the Web

4 1

2 3

Online ChannelMultiple levels

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ProductProduct


ChannelChannel

ImageImage


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Image DifferentiationImage Differentiation

Unique customer experienceSuperior customer service and brand the

experienceExperience branding

Firm can greatly improve their ability to retain customers, target key customer segments and enhance network profitability (Vincent, 200, p.25).

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Build-a-Bear extends to Second Life and Webkinz

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markets PCs

A vendor that will treat you right long term.

markets system maintenance & protection software

Foster an image as the ‘ambulance.’Goldberg, 1999, p.16

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Customer engagement onlineTripadvisor.com built customer-created image

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Image DifferentiationImage Differentiation - Dell- Dell

國際大廠戴爾（ DELL）開始在對外的一些入口網站上，根據不同的需求以及想法，製作了一系列的以Web 2.0精神為主的網站，不論是在一些觀念上的創新、另類實作方向的提供、組織企業文化的影響等。戴爾在這一系列的網站建置中，主要推廣了四個平台，分別為：1. IdeaStorm 2. Direct2Dell 3. StudioDell 4. Forums

這四個不同的網站入口，也分別有各自的重點內涵方向，但皆以Web 2.0為基礎精神，來試著得到另類的商業價值，分別介紹如下：

Source: http://elearning.iiiedu.org.tw/blog/term/1/20080508/5433

http://elearning.iiiedu.org.tw/blog/term/1/20080508/54


1. IdeaStorm：　　顧名思義，其實就是一個創意或想法（ Idea）的集散地，戴爾將這個網站設計成可以讓使用者提出各種構想或創意的地方，然後透過四個步驟來做篩選，四步驟為：

http://www.youtube.com/watch?v=Y0SOXW_K56w


11 22 33 44

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2. Direct2Dell：這個網站其實單純來說，就是戴爾部落格（ Blog），許多知

名的企業已經開始透過部落格經營的手法，來對外推廣宣傳公司本身的產品，尤其是國際級的企業，早已行之有年，而相關的國內應用也有、但實際案例並不多。而戴爾則是其中一份子，透過這個Direct2Dell的部落格經營，戴爾將一些軟性的題材放到部落格中，例如：戴爾跟一級方程式賽車 BMW廠的關係介紹等，部落格中的各式題材均圍繞著戴爾這個企業，除了硬梆梆的產品介紹以外，更加入了許多貼近生活的軟性題材，不同於以往企業直接建置入口網站的模式，利用更生活化的經營手法，把戴爾這家國際型企業的公司文化傳達給使用者知道，進一步獲得使用者的認同。



2. Direct2Dell：部落格的經營者為戴爾的員工好幾個語言的網站 (英文、簡體中文、西班牙語、挪威語等 )，而這些語言版本不是做翻譯的動作，在世界各地設立相關聯語系的部落格，而各部落格的管理者都是一些跟當地相關的戴爾員工。

為中小企業（ Small Business）做了一個專屬部落格就叫做 Small Business，裡面的文章提及相關中小企業在建置各種基礎 IT建設時，可以做的事情或注意事項，分析一些相關的 IT的趨勢等。

為投資者（ Investor）做了個專屬部落格名為 DellShares，內容則多著重於較為高層次的資訊如：戴爾的投資策略、投資方針、相關的合作對象狀況、每季的營運狀況等資訊。



2. Direct2Dell：戴爾在部落格的經營上掌握了重要方向，也就是貼近使用者

的需求，根據不同的領域，決定相關的部落格文章內容，而非全部整合於同一個網站做公告，讓複雜的文章眼花撩亂使用者、沒辦法聚焦，這個或許是台灣的企業端可以學習的一個手法（但也或許考量到成本、領域廣度等因素，只有大企業才有辦法做相關的操作）。



2. Direct2Dell：【其他】微軟員工有 Channel9 、 Channel10

微軟為學生所開設的討論區 Channel8



3. StudioDell：同樣地透過名稱可以知道這其實是影音相關的一個網站，可

以想像是戴爾版的 Youtube，可是大部分主要上面的影片都是戴爾本身所製作的影片，網站的註冊使用者雖然也可以上傳，但是必須限制與戴爾產品有關聯，且必須通過審核，而非直接即可發布，因此是比Youtube 還多了許多限制。整個 StudioDell的影片分成三個種類：


Home

提供給廣大的消費者一些較為平易近人的資訊，例如一些教學性的影片：什麼是 Direct 10、如何設定雙螢幕、什麼是藍芽等。

Small Business

根據一些小型企業需求，來拍攝相關的教學影片如：如何線上備份資料、觸控式螢幕的技術、你是否準備好接受Vista、無線網路的各種選擇等。

IT Pro

比較專業的一些 IT相關影片，如：戴爾的 Techknow計畫、設定 DRAC （ Dell Remote Access Controller）、設定RAID （ Redundant Array of Independent Disks）等。

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3. StudioDell：同樣的，戴爾利用這種影片拍攝的手法，把公司內部的一些

專業知識，透過影片在網路上播送，傳遞相關的戴爾產品知識、將其解決方案埋在這些影片當中，表面上看來是教學，深層的觀察其實是一種銷售，這些所有的影片題目都跟戴爾的某些產品鏈有相當程度的關係，而且這些影片也能夠做評價，不論是寫評論（ Comment）或是評分（ Rating），甚至可以下載。某部份的專業知識變成不是公司的私有財，更是進一步地做開放與分享，讓這些想法能夠更快速地散步，等於也是另類的推廣與宣傳。



4. Forums：此網站較為單純，即為大家都耳熟能詳的討論區，但戴爾將

其分為兩個部份的討論區：1. 支援討論區（ Support Forum）2. 討論討論區（ Discussion Forum）

前者著重於相關技術支援的問題解決，也就是相關的產品問題、技術問題都可以在這討論區提出，並做討論解決；而後者則為一些概念性的討論交換，例如跟遊戲相關的議題、跟數位音樂相關的議題等。建置一個開放式的環境讓使用者能夠尋找一些問題解決之道、或是心得發表的園地。


Differentiation StrategiesDifferentiation Strategies

Differentiation Strategies (1/5)Differentiation Strategies (1/5)

Trout and Rivkin propose a concise list of specific differentiation strategies:1 Being the first to enter the market.

2 Owning a product attribute or quality in the consumer's mind.

3 Demonstrating product leadership.

4 Utilizing an impressive company history or heritage.

5 Supporting and demonstrating the differentiating idea.

6 Communicating the difference.

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These strategies are of particular importance on the internet marketing strategy often revolves around the

company's image and product information available on the Web.

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1

Amazon.com captured an early lead in online book sales in 1995.

Today Amazon is recognized as a leader on the Web.

If a firm is first to provide the product or services, the "brand" can potentially become synonymous with the product as the best online provider.

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This asset of a strong brand image can also help a company attain "ownership" of a product.

Companies with a well-known brand still have an advantage despite the low-entry barriers on the internet.

Customers are drawn to brands they trust, an attraction that is enhanced by a positive company history.

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resume posting

job searche

s

graduating students

executives


Monster.com's early entry into the market and its strong brand image has allowed the firm to become synonymous with job search and career placement services.

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Site Environment

/ Atmospherics

Invite User-generated

ContentBuild Trust

Efficient and Timely Order

Processing

Customer Relationship Management

(CRM)

Pricing

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portrays accurate information

clearly shows the products and services

offered

easily downloads

easily navigated

Site Environment / AtmosphericsSite Environment / Atmospherics

Atmospherics refers to the in-store ambiance created by brick-and-mortar retailers.

Visitors want a site…

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Site Environment / AtmosphericsSite Environment / Atmospherics

If customers view the homepage and like what they see, they are more likely to view additional pages and ultimately become paying customers.

virtual tours

3-D images

product image enlargements

trial downloads

customer reviews

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Site Environment

/ Atmospherics


ContentBuild Trust


Processing


(CRM)

Pricing

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Build TrustBuild Trust (1/3)(1/3)

Trust is a key issue on the internet

customers are expected to pay online

their information is tracked for personalized service or supply chain management

Trust building should be an

integral part of a web site's

marketing strategy.

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encounter problems

require personal assistance

exchange or return a purchase

Visitors may be more likely to buy from a site if they know a live person can be contacted.

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Trust is an especially important issue with C2C transactions.

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Site Environment

/ Atmospherics


ContentBuild Trust


Processing


(CRM)

Pricing

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Efficient and Timely Order ProcessingEfficient and Timely Order Processing

One of the strongest motivators for customers who make Web-based purchases is the ease of ordering.

If the online company follows through on its promises, it is more likely to build customer loyalty and receive referrals from satisfied customers.

Customer satisfaction or dissatisfaction can spread very quickly on the internet with just a few keystrokes.

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Efficient and Timely Order ProcessingEfficient and Timely Order Processing

One way to assure customers is to provide automated e-mails at each step of the way, such as after the order is placed and then after it is [email protected] (Travelocity)[email protected] (Bangkok Airways) [email protected] (Southwest

Airlines)[email protected] (American Airlines) [email protected] (Lufthansa) [email protected] (Orbitz) [email protected] (United Airlines) [email protected] (Expedia)

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Site Environment

/ Atmospherics


ContentBuild Trust


Processing


(CRM)

Pricing

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Pricing (1/2)Pricing (1/2)

Pricing as a method of differentiation has come under scrutiny, especially for Web marketers.

Today, retailer prices are relatively comparable on the Web, although some companies, such as Buy.com, offer lower prices.

The majority of firms choose to differentiate themselves using methods other than pricing because pricing is easy to imitate and nonprice diff erentiation is more enduring for all but the price leaders.

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Pricing (2/2)Pricing (2/2)

One viable pricing strategy is to offer free content that is ad supported CNN.comcompetitors ─The New York Times are offering

paid subscriptions.

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Site Environment

/ Atmospherics


ContentBuild Trust


Processing


(CRM)

Pricing

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Customer Relationship ManagementCustomer Relationship Management

As more firms shift away from price differentiation, customer relationship management (CRM) becomes more predominant as a means of differentiation.

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Customer Relationship ManagementCustomer Relationship Management

NetflixReceiving movies on DVD by mailSubscribe one monthly plans can set up personal lists

of the movies they want to rent.No return deadlines or late-return penalties. After viewing a movie, customers slip it into the

prepaid return envelope to mail it back to Netflix.Most online retailers save customer purchase

and credit card data in databasesMake it very easy for repeat orders and future

product recommendations.63

Site Environment

/ Atmospherics


ContentBuild Trust


Processing


(CRM)

Pricing

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User-generated Content (UGC)User-generated Content (UGC)

Every e-marketer can invite users to post comments on their Web sites and blogs and provide space for other user-generated content.

The key is to trust customers, listen to them, respond, and learn—otherwise accepting user-generated content will backfire.

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Based and Strategies for PositioningBased and Strategies for Positioning


Positioning strategies help to create a desired image for a company and its products in the minds of a chosen user segment.

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Positioning is the process of creating this image, and a position is the resulting view of the firm or brand from the consumer perspective.

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Not only differentiate itself and its products, but also position itself among its competitors in the public’s mind to carve out its own market niche.

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Company itself, the CEO, or individual products.

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Rule of thumb for positioning.

Mediocrity deserves no praise.Mediocrity deserves no praise.

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Positioning helps brand images.

Marketing Marketing communicationcommunication

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Without a company’s positioning using incomplete or even inaccurate information.

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E-marketers’ goal

Build a strong and important defensible position Build a strong and important defensible position

to the consumers than competitors.to the consumers than competitors.

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Product or Product or Service Service

AttributeAttribute

Technology Technology PositioningPositioning Benefit Benefit

PositioningPositioning

User User CategoryCategory

Competitor Competitor PositioningPositioning

Five Positioning BasesFive Positioning Bases

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Product or Service AttributeProduct or Service Attribute

Attributes are product or service featuresSize, color, ingredients, speed, and so forth

Amazon’s 1-Click checkout process

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Product or Service AttributeProduct or Service Attribute

Attributes are product or service featuresPillsbury

http://www.youtube.com/watch?v=l_I3br9m-68 77



AttributeAttribute






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Technology PositioningTechnology Positioning

Technology attribute is important for online marketersLands’ End

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Technology PositioningTechnology Positioning

兩蔣文化園區 (Silverlight)

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AttributeAttribute






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Benefit PositioningBenefit Positioning

What will the feature do for them?Stronger basis for positioningCustomer orientation

What will this product/service do for me?Valvoline motor oil www.valvoline.com

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AttributeAttribute






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User CategoryUser Category

When segment has some unique quality that ties product benefitsEons www.eons.com (for baby boomers)Kellogg’s www.kellogg.comYahoo! www.groups.yahoo.com

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AttributeAttribute






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Competitor PositioningCompetitor Positioning

Many firms position by touting specific benefits that provide advantages over competitive offerings.

Online or off-line companies often position themselves against an entire industry

"I Can't Believe It's Not Butter" margarineagainst a particular firm

Amazon.com for toysaccording to relative industry position

AOL is the instant messaging leader and MSN a challenger

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AttributeAttribute






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Integrator Positioning (1/9)Integrator Positioning (1/9)

Some companies want to be known for providing everything a consumer needs in a particular product category, industry, or even in general.Wal-Mart

This strategy is particularly important online because busy consumers want convenience and one-stop shopping.

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Martha Stewart’sa wide spectrum of business units in one place.the core identity of the brand

improving the quality of living in the home and encouraging do-it-yourself ingenuity.

TheKnot.com offers everything to do with weddings, from gift

registry to wedding planners and other consultants.

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After the dot-com crash, online businesses positioned themselves differently from their first-round counterparts. In the first round of internet disruption, the online

players were selling commodities: books, music, or stock trades.

all they cared about was price

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Today's internet upstarts are pulling together more complex information and boiling it down so consumers can become smarter purchasers of a broader array of products and services" (Mullaney, 2004).Real EstateJewelryHospitality Industries

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zipRealty use software to show potential buyers photos and

floor plans for scores of potential houses. reduces the agent's work, zip-Realty can save

consumers 20 percent to 25 percent off standard commissions.

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LendingTreehelp brokers find clients more cheaply and

quickly. In exchange, brokers pay LendingTree up to 35

percent of their commission when they close a sale.

In 2003, LendingTree's referrals translated into about 7,000 home sales.

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Blue Nile It has 115 full-time staffers and a 10,000-square-

foot warehouse selling an estimated $129 million worth of jewelry!

bypasses the industry‘s tangled supply chain and deals directly with major suppliers through its own network online.

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In the hospitality businessmore people booking rooms online

Expedia gets a $106 nightly wholesale rate from the Dana

Inn and Marina in San Diego for a June Sunday night, then charges the customer $132.

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Web travel agencies can move market share to the hotels that give the agencies the discounts they want. This capability is crucial in an industry that is chronically overbuilt.

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Give web agents

discounted rooms

A hotel owner has

two choices

Let them sit empty

Repositioning Strategies (1/3)Repositioning Strategies (1/3)

Positioning alone won't make a product successful. Marketers must also be sensitive to how the

market perceives and subsequently views the company as well as the product.

Based on market feedback, a company must be flexible enough to react to those opinions by enhancing or modifying a position.

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Repositioning is the process of creating a new or modified brand, company, or product position. Companies face a long-term challenge when

attempting to use repositioning to change the way customers perceive their brands.

Fortunately, companies can easily check on progress by tracking customers' preferences and habits on the internet.

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started life as a network of internet guides

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•Repositioned

online guide

web portal

•Making content from its site

•Downloadable –home PCs– PDAs –other wireless

devices •My Yahoo!

Goal•Attract new

customers•Keep them

coming back to the site

•Be perceived as the first place to go when looking for anything online

Search Engine

Life Engine

SummarySummary



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E-Marketing StrategyE-Marketing Strategy

Complete E-Marketing StrategyComplete E-Marketing Strategy

Differentiation& Positioning

Strategies

Segmentation& TargetingStrategies

Consumer Behavior

Online

E-Marketing Research

102