To improve your online marketing strategies effectiveness, you should take into consideration the business environment you work with. There are two approaches in examining the business environment you operate in:
First, the Porter’s Five Forces Model
This approach is named after the creator Michael Porter. He was a strategy professor at Harvard Business School. The Porter’s Five Forces Model gives a formal and in depth industry analysis compared to just simply finding out new trends and general industry information. This analysis may help you to develop better online marketing strategies. According to this approach there are five forces that affect the happenings within the industry. There are the existing companies, potential new companies, alternative for products to be offered, suppliers and customers. These five forces when combined make up the business environment. You can realize better opportunities upon your marketing strategies by analyzing the structure of and the movement between these forces. In developing your online marketing strategies, you should identify the five forces:
Your Competitors: These are the sites that also provide same product, service or information as your site.
The Possible Competitor: These are the Website off-line competitors same as new companies that may enter the industry through a Website.
Patrons: These are the visitors and probable visitors to your website and your entrant’s website.
Suppliers: These are the companies that will provide you with products and/or services offered on your site. It may also be a web-hosting, software and other suppliers that offer Web-enabling technology.
Alternatives: These are your other ways and resources for the same products, services or information as your website provides.
Applying these basic definitions of the five forces and by fully understanding and using Porter’s strategic methods, you can obtain a clearer view of the industry, giving you sounder and effective marketing strategies.
The second approach is the SWOT Analysis
This approach would help you identify the Strengths, Weaknesses, marketing Opportunities for the company and Threats to your business. One means of applying this analysis is to develop the marketing strategies that will lessen the effect of weaknesses on your company while taking the advantages of your strengths. Preferably, you will set off your strengths in contrast to market opportunities that result from your entrant’s weaknesses. It will be useful to make a table identifying observations comparative to each SWOT element both for your business site and competitor’s sites. Don’t forget to note on your table Internet related activities like search engine inclusion, trade organization participation, and the outside links to your site. This table will help you to recognize your company’s strengths and weaknesses as well as opportunities and threats. Online marketing strategy opportunities occur as a result of the changing business environment.
As soon as you develop your online marketing strategies, you may be able to fulfill a marketing plan that takes into account the overall business environment.