19/05/2021

Online marketplace analysis:

micro-environment

Online marketplace analysis: micro-

environment
Main Topics:
• Situation analysis for digital marketing
• Digital marketing environment
• Understanding customer in digital markets
• Consumer. Choice and digital influence
• Customer characteristics
• Competitors
• Suppliers
• New channel structures
• Digital business models for e-commerce

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What is Online Marketplace

Exchanges of information and commercial transactions

between consumers, businesses and governments
completed through different forms of online presence
such as search engines, social networks, comparison sites
and destination sites.

Potential customers are

using multiple devices
(sometimes simultaneously)
to garner information that
will inform their purchase
decisions - mutliscreening

Situation analysis for digital

marketing
Collection and review of information about an
organisation’s external environment and internal
resources and processes in order to refine its
strategy.

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The digital marketing environment

• Environmental scanning - The process of

continuously monitoring and analysing events in an
organisation’s environment(s) which have implications
for planning.
• Click ecosystem - Describes the customer behaviour
or flow of online visitors between search engines, media
sites, other intermediaries to an organisation and its
competitors.
• Online market ecosystem Interactions between
different online systems related to a specific hardware or
software technology which may be independent or
developed by a particular brand.

An example of a customer journey map

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Understanding customer in digital markets

Customer segments
Search intermediaries
Intermediaries, influencers and media or publisher sites
Destination sites and platforms

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Figure 2.3 An online marketplace map

Customer analysis

Customers are important actors in a company’s immediate

trading environment, and analysis of their behaviour is
central to understanding of the trading situation and
ultimately digital planning. Consumer behaviour analysis
can be considered from two perspectives:

• Demand Analysis
• Digital consumer behaviour

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Demand analysis and implications for

marketing planning
• Quantitative determination of the potential use and
business value from online customers of an organisation.
Qualitative analysis of perceptions of online channels is
also assessed.

• This involves understanding the potential and actual

volume of visitors to an online presence and the extent
to which prospects convert to tactical and strategic
outcomes

Conversion Models

• Experienced digital marketers build conversion or

waterfall models of the efficiency of their web marketing

• Using this approach, the total potential online demand

for a service in a particular market can be estimated

• Conversion marketing Using marketing communications

to maximise conversion of potential customers to actual
customers.

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A model of the Internet marketing

conversion process

Conversion Model Cont.;

• An additional ration;

Retention Efficiency, which involves calculating the

relationship between the number of repurchases/number of
purchases

Usefulness of the model

• Highlights the significance of how conversion effectiveness
differs between first-time users and repeat users.
• Shows the stages a customer may take in a virtual purchasing
journey

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Multichannel conversion models

Model Showing conversion between the
digital channel and traditional channels
during the buying process

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CONSUMER CHOICE AND DIGITAL INFLUENCE

Customer characteristics:
– Demographic variables
– Psychographic and behavioural variables
Social media and emotions
Consumer Personas
The buying process

Consumer characteristics

• Demographic variables - Any personal attributes that

tend to remain static throughout an individual’s lifetime,
or evolve slowly over time – such as age, gender, race
etc. – can be defined as demographic variables

• Psychographic and behavioural variables . Any aspect of

a consumer’s perceptions, beliefs and attitudes that
might influence online behaviour, and in particular a
consumer’s intention to shop, can be defined as a
psychographic/behavioural variable.

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Figure 2.9 Framework for understanding

online customer experiences

Source: Rose and Hair (2011)

Consumer personas

• A persona is a fictional profile typically informed by

research that represents a particular target audience.

• Personas are a tool which can help in understanding

online customer characteristics and behaviour.

• Creating personas is a powerful technique for

developing customer-centred online strategies,
company presences and campaigns and forms part of
marketplace analysis.

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Figure 2.10 A summary of how digital media can

impact on the buying process in a new purchase

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Buying Process Cont.;

There are many other buying situations which are not

simple as above;

Multichannel buying models

Trust-based models focus on trust and commitment
Social interaction communication models update

Competitors

The shape and nature of online competitive markets

Competitor analysis and benchmarking

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