Online marketplace

analysis:
Micro-environment
DIGITAL MARKETING
MBA 2014-16

Questions for marketers

What are our capabilities for understanding our
online marketplace?
How relevant is the behaviour of the actors in the
micro-environment to the future of our business?
How do I complete a marketplace analysis and how
does this inform our digital marketing planning?
How are customers needs changing as digital
platforms develop and what are the implications of
such changes?
How do I compare our online marketing with that of
our competitors?
How do we find suitable intermediaries at the
planning stage of a digital marketing strategy?

Scenario for marketplace analysis

You have been appointed by
mYcircles.com as digital marketing
manager.
Your task is to create a digital
marketing plan for the next year and
beyond
What would you need to review about
the online marketplace to help create
your plan?

Figure 2.2

The Internet marketing environment

Figure 2.3

An online marketplace map

Tools for marketplace analysis

Google Agency Tookit

http://www.google.com/ads/agency/toolkit.htm
l
Key Tools:
http://www.smartinsights.com/marketplaceanalysis/google-tools-you-may-not-knowabout/

Alexa: www.alexa.com or www.compete.com

Hitwise: www.hitwise.com
Nielsen: www.nielsen-netratings.com
Comscore: www.comscore.com Press releases
IMRG: www.imrg.org

Issues in analysing the online marketplace

Table 2.3

The micro-environment: issues for digital marketers

A model of the Internet marketing conversion process. It shows key

traffic or audience measures (Q0 to Q4), first-time visitors (Q2) and repeat
visitors (Q2R) and key conversion efficiency ratios
Figure 2.5

Figure 2.6

An example of a conversion model

Model showing conversion between the digital channel and

traditional channels during the buying process
Figure 2.7

Figure 2.8

Research Online Purchase Online example

Source: Google, 2010

Figure 2.10

Consumer Internet Activities

Source: http://internet2go.net/ (accessed 31 May 2011)

Figure 2.11

Development of experience in Internet use

Figure 2.12

Reasons for and for not purchasing over the Internet in the UK

Source: Chamberlin 2010

Consumer characteristics
Demographics:
Age, gender, social group

Webographics
Access methods and times

Personas:
Dulux example

Dulux persona example

Aims:
The aim was to position Dulux.co.uk (Figure 2.13) as the
online destination for colour scheming and visualisation
to help you achieve your individual style from the
comfort of your home. Specific outcomes on the site are
to browse colours, add colours to a personal scrapbook,
use the paint calculator and find a stockist. Further aims
were to win the war before the storei.e. to provide
colour help tools that can help develop a preference for
Dulux before consumers are in-store and to prompt other
ideas to sell more than one colour at a time.
Specific SMART objectives were to increase the number
of Unique Visitors from 1M p.a. in 2003 to 3.5M p.a. in
2006 and To drive 12% of visitors to a desired outcome
(e.g. ordering swatches).

Figure 2.14

Dulux site (www.dulux.co.uk)

Target audience variation

Based on research, it was found that the main audience for
the site was female with these typical demographics and
psychographics:
Would be adventurous 25-44 women, online

Lack of confidence with previous site:

- Gap between inspiration (TV, magazines, advertising) and
lived experience (Large DIY sheds,nervous discomfort)
- No guidance or reassurance previously available currently
on their journey
Colours and colour combining is key
Online is a well-used channel for help and guidance on other
topics
12 month decorating cycle
Propensity to socialise
Quality, technical innovation and scientific proficiency of
Dulux is a given

Example personas
First time buyer.
Penny Edwards, Age: 27, Partner: Ben, Location:
North London, Occupation: Sales Assistant

Part time Mum.

Jane Lawrence, Age: 37, Husband: Joe, Location:
Manchester, Occupation: Part time PR
consultant

Single Mum.
Rachel Wilson, Age: 40, Location: Reading,
Occupation: Business Analyst

Consumer behaviour models

Information / experience seeking
behaviour models
Hierarchy of response buying process
models
Multi-channel buying models
Trust-based models
Community participation models

1. Information / experience seeking

behaviour models

Directed information-seekers. These users will be looking for product,

market or leisure information such as details of their football clubs
fixtures. They are not typically planning to buy online.
Undirected information-seekers. These are the users, usually referred
to as surfers, who like to browse and change sites by following
hyperlinks. Members of this group tend to be novice users (but not
exclusively so) and they may be more likely to click on banner
advertisements.
Directed buyers. These buyers are online to purchase specific products
online. For such users, brokers or cybermediaries that compare
product features and prices will be important locations to visit.
Bargain hunters. These users (sometimes known as compers) want to
find the offers available from sales promotions such as free samples or
competitions. For example, the MyOffers site (www.myoffers.co.uk)
is used by many brands to generate awareness and interest from
consumers.
Entertainment seekers. These are users looking to interact with the
Web for enjoyment through entering contests such as quizzes, puzzles
or interactive multi-player games.

2. Hierarchy of response buying process

models

A summary of how the Internet can impact on the buying process

for a new purchaser
Figure 2.15

3 Multichannel buying models

Table 2.5

The impact of channel experience on customer relationship

4 Trust-based models

Figure 2.19

Segmentation based on information need and trust

Source: Adapted from Forrester (2006) Teleconference Driving Sales With SegmentationAnalyst: Benjamin Ensor of Forrester Research, 27 February 2006

Types of portal

Table 2.8

Portal characteristics

Example of a channel chain map for consumers selecting an

estate agents to sell their property
Figure 2.24

Figure 3.8

Different stages of a Gartner hype cycle

Source: Gartner Group

Ethical issues
Ethical issues concerned with personal
information ownership have been usefully
summarised by Mason (1986) into four areas:
Privacy what information is held about the
individual?
Accuracy is it correct?
Property who owns it and how can
ownership be transferred?
Accessibility who is allowed to access this
information, and under which conditions?

Digital laws

Table 3.1

Significant laws which control digital marketing

Information collected online

Table 3.2

Types of information collected online and the related technologies

PECR legislation summary

Applies to consumer marketing using e-mail or
SMS messages
Is an opt-in regime (consent required)
Requires an opt-out option for all communications
Does not apply to existing customers when
marketing similar products
Requires that contact details must be provided
Requires clear From
Applies to direct marketing communications
Restricts the use of cookies