This document is a lecture on strategy and business models for marketing technology. It discusses key concepts like interactive marketing, internet marketing, and new definitions of marketing. It explores different types of business models and strategies for competitive positioning. Various companies are used as examples to illustrate different business models, value propositions, and revenue strategies. Branding and brand positioning are also covered. The goal is to help students relate strategic concepts to current online companies and apply them to their own projects.

1. Strategy and Business Models for Marketing
Technology
MKTG 470
Dr. Debra Zahay Blatz
Associate Professor of Interactive
Marketing
Northern Illinois University
January 15, 2013
Copyright by Debra Zahay Blatz 2013

2. Goal
• Refresh your memory about strategic concepts,
business models
• Relate these concepts to current companies that
market online
• Explore how to apply these concepts to your own
project business
Copyright by Debra Zahay Blatz 2013

3. Interactive Marketing
• 1) the ability to address an individual
• 2) the ability to gather and remember a
response of an individual
• 3) the ability to address that individual
once more in a way that takes into account
his or her unique response
(Marketing=conversation)
» Deighton, 1996
Copyright by Debra Zahay Blatz 2013

4. Internet Marketing
• Using unique characteristics of Internet
technology to facilitate the marketing process
– The use of Internet technology to prepare, implement
and measure the success of marketing programs and
actions
– Prepare: Who should we target?
– Implement: How should we reach them
– Measure: How do we know we have been successful?
Copyright by Debra Zahay Blatz 2013

5. Marketing in an interactive world: Do we need a
new definition?
• An interactive process whereby firms‟ collect
information about customers and, based on that
information, provide product and service
offerings to create value for customers and
profits for the firm.
Copyright by Debra Zahay Blatz 2013

6. WHAT IS A BUSINESS MODEL?
Copyright by Debra Zahay Blatz 2013

7. A business model is
“a unique configuration of elements comprising the
organization’s goals, strategies, processes, technologies,
and structure, conceived to create value for the
customers and thus compete successfully in a particular
market.”
Copyright by Debra Zahay Blatz 2013
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8. A business model is
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9. Types of business models
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10. THE VALUE PROPOSITION
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11. What‟s the difference?
• Circuit City • Best Buy
• Linens and Things • Bed, Bath and
• Kmart Beyond
• Walmart
Copyright by Debra Zahay Blatz 2013

12. Competitive Landscape: What are the core
competencies?
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13. What makes Yahoo unique?
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14. Top News Websites May 2011
Copyright by Debra Zahay Blatz 2013

15. Copyright by Debra Zahay Blatz 2013
15. Mail online

16. AOL wants to excel in news
Mission has been to offer the
most trusted local news and
information via our platform
• Aol Huffington Post create a
Media Group
• “Patch is now hiring,”
newspapers, not so much
• MOST POPULAR ARTICLES
– Avon Police Help Catch Illegal
Immigrant
– Miss America Coming to Duct
Tape Festival
– Starbucks is Coming to Avon
– House Hunt: Check Out
Recently Listed Properties in
Avon
– Tournament at Bob-o-Link a
Benefit for Family of American
Greetings Worker
Copyright by Debra Zahay Blatz 2013

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20. What is the process by which we make money? A
product or service that….
• Offers new/existing benefits
• Differentiated from competition
• Valued by consumer/customer
• Creates economic value
– Source: Tom Kuczmarski
Copyright by Debra Zahay Blatz 2013

21. How do we draw people to our product/our
service/our site?
• Branding
• Brand Positioning
• Brand refers to the specific, intended meaning of
the brand in the minds of consumers
• A brand positioning statement is created as an
internal document so everyone knows what the
brand is all about
• The advertising „tag line‟ is created off of that
brand positioning statement
Copyright by Debra Zahay Blatz 2013

22. What are the two ways to make money in terms
of positioning?
Copyright by Debra Zahay Blatz 2013

23. Generic Competitive Positioning Strategies
Differentiation Revenue
Low High
High “True”
Low-Cost
be the
Low-Cost low-cost producer
Costs
“True”
Low Differentiators
find uniqueness
along some valued
dimension
Copyright From Porter (1985), Treacy and Weirsema (1993)
by Debra Zahay Blatz 2013

24. Generic Competitive Positioning Strategies
Differentiation Revenue
Low High
High “True” Do “Both” Well
Low-Cost
be the “Strategically
Low-Cost low-cost producer Excellent”
Costs
“True”
“Stuck in Differentiators
Low
the Middle” find uniqueness
along some valued
dimension
Copyright From Porter (1985), Treacy and Weirsema (1993)
by Debra Zahay Blatz 2013

25. Brand Positioning Examples
• Wal-Mart
• Target
• Kmart
• Nordstrom
• Discussion: Branding is becoming ever more
important in internet marketing. Why?
Copyright by Debra Zahay Blatz 2013

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30. Questions/Comments/Concerns?
• Dr. Debra Zahay-Blatz, zahay@niu.edu
• @zahay
• 815-753-6215
• 630-300-8838 cell (7 am to 10 pm)
• http://www.linkedin.com/in/drzahay
Copyright by Debra Zahay Blatz 2013