In the
first two article of this series, "Developing a Web Site Marketing
Plan",
http://www.WebSiteMarketingPlan.com/sr7.htm
and "Your Web Site's Objectives",
http://www.websitemarketingplan.com/sr8.htm,
I discussed the marketing plan in general, then developing Web site
objectives. In this, the third article in the series, I will take a
closer look at developing strategies to support your objectives.
Your strategies
clarify the approach you will take in meeting your Web site's objective.
They are more specific than the objective, but do not include details
about tactics or action plans. For example, if a site objective is to
directly increase your business' revenue, strategies may include: 1)
Sell and market products on the site and 2) use affiliate programs to
both enhance product sales and add a new revenue source.
To develop
strong strategies, you should take into consideration the business environment
you operate in - both online and offline. Two approaches to analyzing
the business environment are to complete 1) an industry analysis such
as Porter's Five Forces and 2) a situation analysis such as a SWOT analysis.
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Porter's Five Forces
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A formal
industry analysis, such as Michael Porter's Five Forces, is more in
depth than simply looking for trends and general industry information
and can help you better develop successful strategies.
Michael
Porter's Five Forces can provide insight into both your online and offline
competitive environments. In the Five Forces Model, Porter explains
that in any industry there are five forces that influence what happens
within the industry:
1. Existing
companies,
2. potential new companies,
3. substitutes for products offered,
4. the suppliers, and
5. the customers.
These five
forces combine to make up the business environment. By studying the
structure of and dynamics between these forces, you can discover opportunities
for improving upon your strategies. Porter designed his basic model
to be applied to an entire industry. The same analytical method, however,
could also be used to study a narrower universe, such as online presence
within an industry. When developing your Web site marketing plan, for
example, you can identify the "forces" as:
* Competitors:
Those sites that offer the same product, service, or information as
your site.
* Potential
new entrants: Your site-less off-line competitors as well as new companies
entering the industry via a Web site.
* Customers:
Visitors and potential visitors to your Web site and your competitors'
sites.
* Suppliers:
Those companies that supply you with the products (or parts if you are
a manufacturer) and/or services offered on your site. Other suppliers
are the Web hosting, software, and other vendors that supply Web- enabling
technology.
* Substitutes:
Other means and sources for the same products, services, or information
as your Web site provides.
Using these
definitions for the five forces, you can get a clearer picture of the
business environment in which your Web site competes. Be aware, however,
this is not a true Five Forces analysis. This analysis only borrows
Porter's forces to lend structure. His full analysis goes beyond the
information gathering and cursory analysis explained here. By fully
utilizing Porter's strategic methods you can gain an even clearer picture
of the industry, resulting in sounder strategies. To fully appreciate
Porter's model, study his two classics, "Competitive Strategy:
Techniques for Analyzing Industries" and "Competitive Advantage:
Creating and Sustaining Superior Performance".
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SWOT Analysis
~~~~~~~~~~~~~
In a SWOT
analysis, you identify strengths, weaknesses, market opportunities for
your company, and threats to your business. You then use the analysis
to develop strategies that will minimize the affect of your weaknesses
on your business while maximizing your strengths. Ideally, you will
match your strengths against market opportunities that result from your
competitors' weaknesses or voids.
When completing
a SWOT analysis, you may find it helpful to create a table identifying
observations relative to each SWOT component for both your company's
site and your competitors' sites. In the table, note Internet-related
activities such as trade organization participation, search engine inclusion,
and outside links to the sites. Then, from the table you create you
can spot your company's strengths and weaknesses as well as opportunities
and threats to your business.
Often,
opportunities arise as a result of a changing business environment.
As you study your competitors, be on the lookout for these opportunities.
Some situations that could represent opportunities for a company include,
but are certainly not limited to:
* New technology
is created, but the competition has been
unable to deliver acceptable customer service.
* A customer
segment is becoming more predominant, but their
specific needs are not being fully met by your competitors.
* A customer,
competitor, or supplier goes out of business
or merges with another company.
Once you develop your strategies, you will be ready to choose tactics
for your Web site marketing plan.
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About the Author:
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Bobette
Kyle has over 10 years experience in Corporate Marketing; Brand and
Product Marketing; Field Marketing and Sales; and Management. Through
her newsletter, site, and marketing services she helps businesses integrate
traditional and Internet marketing strategies. http://www.WebSiteMarketingPlan.com
mailto:bobette@WebSiteMarketingPlan.com
For a step-by-step
approach to developing a Web site marketing plan, read Bobette's book
"How Much For Just the Spider? Strategic Web Site Marketing for
Small-Budget Businesses", http://www.websitemarketingplan.com/sr.htm.
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Copyright 2002 Bobette Kyle. All rights reserved.