Situation Analysis and Environment Scanning

Most of all pictures, websites and figures that presented on these slides mainly purpose for
academic only not commercial at all.

Internet different
organization’s Internet
Environment marketing strategy
elements

com
pet
it o
r Use the Internet
customer y
d i ar
r m e
inte

e-commerce changes
Content
Company
Websites

Competitor
Websites
Online Marketplace
Customer
Demand
Intermediaries website

Online Customer behavior

} Internet Marketing Strategy

Sense and response

Situation Environmental
Analysis Scanning
•Internal process •Continuously Monitoring the
environment
•External environment
Organization/
website
Micro- Macro environment
} Online marketplace
analysis
} Competitive forces
} Value chain analysis
} New channel structures
} Location of trading
} Revenue model
} Access level of customer
} Propensity to use and buy
} Buyer behaviors
} Competitor capabilities
} Privacy
} Acceptable usage
} Internet Culture
} Mobile phone
} Tablet PC
} Current economic
situation
} Legal and tax constraints
} Government Incentives
} Internet governance

Online marketplace analysis

} Analysis of the online marketplace is a key part of
developing a long-term Internet marketing plan.
} Main elements of online marketplace
} 1. customer segmentation
} New or existing
} 2. Search Intermediaries (Google, Yahoo, Ask.com)
} Generic and Branded search team
} 3. Intermediaries and media sites (media, price compare,
vertical media (ClickZ.com)
} 4. Destination sites. (your site, competitor sites, indirect
competitors sites)
 Online marketplace analysis

} . } . } . } .
1. customer 2. Search 3. 4. Destination
segmentation Intermediary Intermediaries } Company
} New or - Google websites websites.
existing } Media } Competitor
- Yahoo
} Blog websites
- Bing
} Portal } Other
- Key phrase website
} C2C
- Key word (subsidiary)

Buying process (Search, compare, select, buy, paid, services

Exercise : keyword, key phrase

} Branded term population } Generic term population
} 1. Tesco } Flowers
} Mothers day flowers
} Flower delivery
} 2. Flower by post
} Florists
} Valentines flowers
} 3. Asda } Send flowers

} 4. Next
 An e-marketplace map helps to summarise the
linkages and traffic flows in your e-marketplace

http://dukedoesdigitalmarketing.wordpress.com/2009/11/09/m3macro-and-micro-environment-
analysis-approaches-2-how-to-conduct-a-digital-marketing-specific-swot-analysis/

Hotel Industry or other industries that the team

preferred
Customer Search Intermediary Intermediaries www..Company
Segmentation
-Education Compare/Evaluation
-Income -Key phrase 1 www.agoda.com Destination
-Occupation -Key Phrase 2
-Hobby
www.directory.com

Search Engine
- www.google.co www.xxxxxxx.com
Search information m
-Key phrase 1
- Local search
-Key Phrase 2 Competitor
engiene
www.hotlego.com
 E-marketplace map analysis: _______________
Segmentation Search Intermediaries Intermediaries/ Destination
Media sites
Horizontal
Search
Mainstream Company
Different customer segments Engine media
with specific need websites
Sanook.com

Vertical Niche media Competitor

Search Sites/ Website
Create Persona for Social network
audience Hotel booking Football,
Stock search Soccer,
Blog search Auto, tripadvisor
Competitor
Specialist
Aggregators and Website
Super affiliates
directories
Paypal, eBay,
How-to.. DHL, eGovt
www.freeware.
com
Small-affiliate
blog
Furniture
Guideline
 E-Marketplace Analysis Workshop

Definition
} A VERTICAL SEARCH ENGINE searches a specific industry, topic,
type of content (e.g., travel, movies, images, blogs, live
events), piece of data, geographical location, and so on. It
may help to think of vertical search as a search for a
particular niche
} examples of vertical search engines
} Topical search engines
} Industry search engines : stock search
} Full text books and articles : google book
} Social Web real time search :twitter
} Blog search engines
Exercise: E-marketplace map development.
} E-Marketplace of Airlines Industry in ASEAN
} Target: Thai people who want to booking flight to US
} Age: 20-35, Education: BBA and MBA, Office worker
} Age: 30-40, Education: MBA, Family with child

} Thai Airways
} Singapore Airlines
} EVA
} ANA
} 1. Search engine: select key phrase “booking flight to…”
} 2. Search engine: “company name”
} 3. Search engine: ”Competitor name”

Exercise: E-marketplace analysis

A. Customer analysis and
B. consumer behavior
} A.1 Demand analysis
} Cost of access

} Value proposition

} Perception of ease of use

} Perception of security

Demand analysis by
 A.1 Demand analysis
1.1 Assessing demand by Digital Services
Purchase/service

access
digital channel

influenced

purchase other channels

A.1 Demand analysis

1.1 Assess by the Conversion between channels

E-channel Traditional channel

REACH of channel 1,000,000 1,000,000

Response 5% 1.00% 5.00% 10%

RESPONDENTS from channel 100,000 Unique visitors Offline inbound

enquiries 110,000

Conversion to lead 10% 5.00% 1.00% 10%

Online leads Offline leads 27,000

LEAD generated from channel 11,100
10.00% 0.50%
Conversion to sale 20% 40%

OUTCOMES from channel 2,355 Online sales Offline sales 11,910

 A. 1 Demand analysis
1.1 Assess by the Conversion Model Advertising

} The model assesses efficiency of offline and online

communications. (Berthon et al (1998)) 1,000,000

Awareness efficiency 5,000

Attract ability efficiency 2,000

Contact efficiency 1,000

Conversion efficiency
20
Retention efficiency

Evaluating demand levels by

} 1.2 Internet access
} Type of access including broadband and mobile access
} www.oecd.org/sti/ict/broadband
} www.mmetrics.com (mobile)
} www.internetworldstats.com
} www.alexa.com
A.1 Demand analysis
1.2 Internet Access
Monthly time spent on Social Networks

Source: http://www.marketingcharts.com/wp-content/uploads/2014/02/Nielsen-Monthly-Time-Spent-SocNets-Feb2014.png

A.1 Demand analysis

1.2 Internet Access
Mobile Internet Penetration
A.1 Demand Analysis
A.1.3 Consumers influenced by using the online channel
} The Internet is a vital part of the research process

} The Internet is used at every stage of the research

process
} Initial scan à detail comparison à final check à purchase
} Multiple resources of information

} Online information and experience à offline purchase

A.1 Demand Analysis

A.1.3 Consumers influenced by using the online channel
Calculating demand through search term volumes
http://adwords.google.com
 The survey was conducted amongst 15,000 consumers ages 18 to 64 in 11
Asia Pacific markets in June and July 2010; respondents were consumers who
had used any search engine in the previous six months

A.1 Demand Analysis

A.1.3 Consumers influenced by using the online channel
¡ Psychographic segmentation for
transaction e-commerce
§ Realistic enthusiastic
§ Confident brand shopper
§ Carefree spenders
§ Cautious shopper
§ Bargain hunters
§ Unfulfilled (difficult to find the products)
 Situation Analysis and Environment Scanning

Most of all pictures, websites and figures that presented on these slides mainly purpose for
academic only not commercial at all.

B. Online Customer Behavior

1. Information/experience seeking
behavior model
2. Hierarchy of response buying process
models
3. Multichannel buying model
4. Trust-based models
5. Social interaction communication
models
Online Customer Behavior
Team Seeking Buying Multi- Trust-based Social
Experiences Process Channel Model Communicat
ion

Masala Zone X X

Lokhandwala X X

Nawab X X

Shashipakwaan X X

Valley X X

B. Online Customer Behavior

1. Information/experience seeking behavior
model
} Directed information seekers

} Undirected information – seekers

} Directed buyers

} Bargain hunters

} Entertainment seeker.
B. Online Customer Behavior
2. Buying Process Stages
} Responses to different marketing techniques at different
stages of the buying process
Kolter, 2001
Chaffey and Smith
- Awareness (2008)
- Problem
- Interact recognition
- Information search
- Evaluation - Evaluation
- Trial
- Decision
- Action
- Adoption - Post purchase

B. Online Customer Behavior

2. Buying Process Stages
B. Online Customer Behavior

} A customer scenario on the website is part of a wider

multichannel experience
} Lexus assessed the impact of channel experience on
customer relationship:
} Showroom experience quality
} Website experience quality
} This also indicates that the interactive channels are the
ones that deliver the best experiences (vs. TV, Print and
direct mail)

B. Online Customer Behavior

Multi-channel Buying Model
Customer Google Blog E-mail Cell Store website
Segmentati phone
on
Problem
recognition
Information
search

Evaluation

Decision

Action

Post
purchase
B. Online Customer Behavior
4. Trust-based Models
} In most cases online interaction happens with limited
consumer experience with the site
} Trust is important as:
} Online, purchase, services lack the physical assurance
} Stories of fraud and security problems
} Customer are looking for
} Familiar brands, site design, type of content, accreditations,
recommendations.

B. Online Customer Behavior

A model of the relationship between different aspects of
trust and consumer response based on the categories
B. Online Customer Behavior
5. Social interaction communication models
} Digital media increase the number of recommendation,
sharing information among consumers.
} Reasons to communicate on community
} to keep in touch with friends and family
} I like looking at other people’s spaces
} I want to meet people with similar interests
} to express my opinions and views on topics
} it is a good way to date
} using it for a specific reason

B. Online Customer Behavior

Social interaction communication models
} Reasons to communicate on community
} 59% to keep in touch with friends and family
} 57% I like looking at other people’s spaces
} 47% I want to meet people with similar interests
} 46% to express my opinions and views on topics
} 20% it is a good way to date
} 17% using it for a specific reason
KLM

www.alaskaair.com
Questions
1. Type of Website (B2B, B2C)
2. Main products
3. Main 2 Competitors
4. Demand analysis of the website
5. Demographic of visitors (regional, country, etc.)
6. Online Consumer Behavior Model that you select for
the website and reasons.

Tools
} https://website.grader.com
} https://gtmetrix.com
} https://seositecheckup.com/
} https://serpstat.com
} www.similarweb.com
} www.statista.com
Workshop 2:
} Customer Demand:
} Number……………. From this information from the case
} Visitor Demographic
} Online Customer Behavior Model
} May be more than one:
} Referred to the information from the case.
} Key word search tools of google

} Competitor analysis
} Review of Internet marketing services offered by existing and
new competitors and adoption by their customers.

} Competitor benchmarking
} A structured analysis of the online services, capabilities and
performance of an organisation within the areas of customer
acquisition, conversion, retention and growth.
 Intermediaries
} Market intermediaries
} Firms that can help a company to promote, sell and distribute
its products or services.
} Online intermediary sites
} Websites that facilitate exchanges between consumer and
business suppliers
} Google/ MSN and Yahoo! (portals)
} alibaba
} Destination sites
} Sites that managed by merchants, product manufactures or
retailers providing product information.

B2B and B2C interactions between an organization, its suppliers and its
customers
Main online intermediaries (Sarkar et al. (1996)
} Directories (yahoo!)
} Search engines (google, bing)
} Malls (Pricerunner)
} Virtual resellers (Amazon)
} Financial intermediaries (PayPal)
} Forums, fan clubs, and user groups (virtual
communities)
} Evaluators (sites which act as reviewers)

Portals Characteristics
Final Presentation
} Company
} E-Marketplace Map
} Online Customer behavior
} Demand analysis
} Search from Google / search engine/
} www.alexa.com
} www.similarweb.com