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Sunarto Prayitno
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
The fundamental of business strategy –
seeking competitive advantage based on
superior value, building unique resources, and
positioning in the minds of customers.
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American Marketing Association definition of
marketing:
 Marketing is the process of planning and
executing the conception, pricing,
promotion, and distribution of ideas, goods,
and services to create exchanges that satisfy
individual and organizational goals.
(The AMA’s Dictionary of Marketing Term, 1985)
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Marketing is a process:
 The classical marketing approaches:
1. Market Analysis
2. Market Planning
3. Implementation
4. Control
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Involves of marketing mix (Four Ps):
1. Product
2. Pricing
3. Promotion
4. Distribution
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Exchange something of value:
 In terms of marketing, the product or offering
will be successful if it delivers value and
satisfaction to the target buyer.
 Value is a ratio between what the customer
gets and what he gives.
Benefits
Value = -------------Costs
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Satisfy individual and organizational needs:
 The key to modern marketing is
simultaneously satisfying the customer, the
firm, and its stakeholders.

In the long run, the firm must have a positive
cash flow or show a clear path to
profitability for investors to maintain
confidence.
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
Marketing is an organizational function and a
set of processes for creating, communicating
and delivering value to customers and for
managing customer relationship in ways that
benefit the organizational and its stakeholders.
(American Marketing Association, 2004)
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
Internet (interactive) marketing is the process
of building and maintaining customer
relationships through online activities to
facilitate the exchange of ideas, products,
and services that satisfy the goals of both
parties.
(Imber, Jane, and Betsy-Ann Tofler, 2000)
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Building and maintaining customer
relationships:
 Make a loyal customers.
 Relationships: Awareness, exploration, and
commitment.
 Building relationships with online customers.
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
The internet marketing program may well be
part of a broader campaign to satisfy
customers who use both online and offline
services.
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Online:
 By definition, internet marketing deals with
levers that are available in the world of the
internet. However, the success of an internet
marketing program may rest with traditional,
offline marketing vehicles.
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Exchange:
 The core of marketing program is the concept
of exchange.
Satisfaction of goals of both parties:
 The key to modern marketing is
simultaneously satisfying the customer, the
firm, and its stakeholders.
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A process of interactive marketing (the seven
stages):
 Framing the market opportunity.
 Formulating the marketing strategy.
 Designing the customer experience.
 Crafting the customer interface.
 Designing the marketing program.
 Leveraging customer information through
technology.
 Evaluating the results of the marketing program
as a whole.
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1. Framing the Market Opportunity:

Stage one involves the analysis of market
opportunities and an initial first pass of the business
concept – that is, collecting sufficient online and
offline data to establish the burden of proof of
opportunities assessment.
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2. Formulating the Marketing Strategy:

Internet marketing strategy is based upon
corporate, business-unit, and overall marketing
strategy of the firm.

The marketing strategy goals, resources, and
sequencing of actions must be tightly aligned with
the business-unit strategy.

Finally, the overall marketing strategy include both
offline and online marketing activities.
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3. Designing the Customer Experience:

Firm must understand the type of customer
experience that needs to be delivered to meet the
market opportunity.

The experience should correlate with the firm’s
positioning and marketing strategy.

Thus, the design of the customer experience
constitutes a bridge between the high-level
marketing strategy and the marketing program
tactics.
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4. Crafting the Customer Interface:

The internet has shifted the locus of exchange from
the marketplace (face-to-face interaction) to the
marketspace (screen-to-face interaction).

The key difference is that the nature of the exchange
relationship is now mediated by a technology
interface.

This interface can be a desktop PC, sub-notebook,
personal digital assistant, mobile phone, wireless
applications protocol (WAP) device, or other internetenabled appliance.
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5. Designing the Marketing Program:
Stage five entails designing a particular combination
of marketing actions (termed levers) to move target
customers from awareness to commitment.
 The frame work used to accomplish this task is the
Marketspace Matrix.
 Simply put, the internet marketer has six classes of
levers (product, pricing, communication, community,
distribution, and branding) that can be used to create
target customer awareness, exploration, and it is
hoped, commitment to the firm’s offering.

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6. Leveraging Customer Information Through
Technology:

In a customer-centric environment, firms have to
make and act on three key decisions:
(1) Strategically select what markets to pursue (marketing
research);
(2) Learn more about customers and device strategies to
acquire target customers (database marketing); and
(3) Assess the long-term profitability of customers and retain
key customers (customer relationship management/CRM).
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
Firms can use technology to obtain, organize,
analyze, and utilize customer-relevant information,
which can reduce the uncertainty associated with
each of the three major types of decisions.
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7. Evaluating the Marketing Program:

This last stage involves the evaluation of the overall
internet marketing program.

This includes a balance focus on both customer and
financial metric.
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