The importance of the Internet to modern business strategy was underlined by Michael
Porter, who famously said:
The key question is not whether to deploy Internet technology – companies have no
choice if they want to stay competitive – but how to deploy it. Porter (2001)An Internet marketing strategyis needed to provide consistent direction for an organ-
isation’s e-marketing activities so that they integrate with its other marketing activities
and supports its objectives. We can suggest that the Internet marketing strategy has
many similarities to the typical aims of traditional marketing strategies, in that it will:
provide a future direction to Internet marketing activities;
involve analysis of the organisation’s external environment and internal resources to
inform strategy;
articulate Internet marketing objectives that support marketing objectives;
involve selection of strategic options to achieve Internet marketing objectives and
create sustainable differential competitive advantage;
include strategy formulation to include typical marketing strategy options such as
target markets, positioning and specification of the marketing mix;
specify how resources will be deployed and the organisation will be structured to
achieve the strategy.This chapter examines each of these elements of strategy. We start by considering, in
more detail, an appropriate process for developing an Internet marketing strategy, and
then consider the following aspects of strategy:1 situation review (drawing on our coverage in Chapters 2 and 3);
2 goal setting;
3 strategy formulation.Figure 4.1 indicates the context for Internet marketing strategy development. The
internal influences include corporate objectives and strategy, and these in turn influence
marketing strategy that should directly influence the Internet marketing strategy. Key
external influences include the market structure and demand, competitor strategies and
the current and evolving opportunities and threats. Methods for monitoring the exter-
nal environment to anticipate external opportunities and threats and competitors’
actions have been introduced in Chapters 2 and 3, as were methods of assessing the
demand of the market for Internet-delivered services.Internet strategy is a channel marketing strategy
We need to remember that an Internet marketing strategy is a channel marketing strategy
which defines how a company should set channel-specific objectivesand develop a differen-
tial channel-proposition and channel-specific communications consistent with the
characteristics of the channel and consumer usage of it. The Internet marketing strategy
determines the strategic significance of the Internet relative to other communications
channels which are used to communicate directly with customers at different customer
touchpoints. Some organisations such as low-cost airlines will decide to primarily use vir-
tual channels such as the web site and e-mail marketing for delivering services and
communicating with customers. Others may follow a strategy where the use of face-to-
face, phone or direct mail communications remain important for the time being.CHAPTER 4· INTERNET MARKETING STRATEGY
Introduction
Internet marketing
strategy
Definition of the
approach by which
Internet marketing will
support marketing and
business objectives.
Channel marketing
strategy
Defines how a company
should set specific
objectives for a channel
such as the Internet
and vary its proposition
and communications
for this channel.
Customer
touchpoints
Communications
channels with which
companies interact
directly with prospects
and customers.
Traditional touchpoints
include face-to-face
(in-store or with sales
representatives), phone
and mail. Digital
touchpoints include
web services, e-mail
and potentially mobile
phone.