One to One Marketing’s strategic focus should be on specific customer values, obtained through analysis of its customer’s habits, buying decisions and feedback. The focus should not be on the specific numbers of customers on the Internet. The feedback and recommendation should One to One Marketing get through e-mail and newsgroups.

10.3.1 New Customer Values

One to One has to react proactive to the new values of the Internet customer:

*Convenience*	With increased work hours, and less free time, customers highly value convenience.
Transparency	One to One’s customers shouldn’t have to bother with the details of how the end product, service, or solution is achieved. Effective inter linking of business and solutions and sites are essential for One to One to achieve complete transparency. One to One anticipate customer-buying scenarios.
Guaranteed Fulfillment	One to One has to offer complete and guaranted technology to fulfil the needs of their customers online, as One to One know the customer will expect this.
Security	One to One has to offer secure communication systems, because One to One’s customers will require and rely on this.
Education	One to One has to offer concise, relevant, timely and well- presented information to the customer so that they feel more comfortable with their buying decisions. One to One has to offer value through the ability to access more interactive information on One to One’s Site about the products and services.
Personalization	One to One has to offer the customer personalization products and services, because One to One has to respect this priority. One to One has to do that based on profile or other conditions. Narrowcasting.
Proacactivity	One to One has to give individuals solutions /services and products) that proactively market, upgrade, support, and operate themselves.
Timeliness	One to One has to respond and deliver products and services timely. One to One has to update the information immediately. Real time information.
Choice	One to One has to offer their customer more options and product diversification
Interaction	One to One has to offer highly interaction with the customer, because One to One has to be to be a community of interest and give the customer high value. One to One has to use audio, video, images and text. Eventually virtual reality
Push/Pull communication	One to One has to offer both push and pull communication

10.3.2 One to One Marketing should ask the right questions

What is the complete solution One to One Marketing’s customer seeks?
What will be One to One Marketing’s customers’ new values needs priorities, and expectations?
What customer values are not currently being served well by One to One Marketing’s Internet solutions
Are One to One Marketing’s current business and technology systems flexible enough to respond to changes?
For what types of customers can One to One Marketing offer value-added solutions?
What inter linking business partners should One to One Marketing consider in order to develop a more thorough solution for its customers?
How well does One to One Marketing understand the capabilities of the Internet from a customer interaction perspective?
Is One to One Marketing able to extend and take advantage of existing information assets in order to address changing customer priorities?

10.3.3 One to One Marketing’s customer needs should drive One to One Marketing’s business positioning and inter linking

Before One to One Marketing establishing links, One to One Marketing should ask the following questions:

What business should One to One Marketing link with, and how should the links be structured?
Will inter linking address the customer’s changing values?
What needs to be done to One to One Marketing design in order to recognize and respond to these changes?
What value does One to One Marketing provide; how well situated is it to provide more complete customer solutions?
What compelling business functionality will One to One Marketing provide on the site?
Should One to One Marketing charge the inter linking partners for each customer forwarded to its site or should the link be a valued-added service provided to the customers?

Closeness is important for One to One Marketing. By knowing the customer’s business better allow One to One Marketing to create effective new products and services, foster a productive work environment, and make One to One Marketing attractive to the customers, employees, and potential business partners.

One study estimate that 55 million people in the US will work from remote locations (i.e., home) by the turn of the century. In addition, more and more people are conducting home activities such as shopping and paying bills from workplace.

One to One Marketing want to think through One to One Marketing’s value proposition. One to One Marketing must ask a series of questions:

How well does the current value proposition serve the customer’s changing priorities and values?
How well does it address the situation enabled by the Internet?
Do different types of customers have different value propositions?

10.3.4 One to One Marketing’s strategic questions should be

What innovative products and services can One to One Marketing offer?
Can One to One Marketing develop a more complete customer solution?
Who are the right interlinking business partners?
What relevant competence can One to One Marketing leverage for its Internet-based customers?
How can One to One Marketing exploit One to One Marketing’s current channels?

One to One Marketing should not focus on competitors, but focus on One to One Marketing’s own strategy.

One to One Marketing’s goal is to focus on anticipating customer expectations, preparing One to One Marketing’s organization to better respond to these expectations, and getting the customer online.

Today the average American works 160 hours more per year than in 1985. As people spend more time at work, one of their priorities becomes convenience.

10.3.5 Appropriate One to One Marketing Internet strategic objectives

Customer intimacy
Innovative products and services
Making everyone an expert
Mass customization and virtual products
Making it easy for others to do business with One to One Marketing
Attracting new customers and partners with wider market reach
Getting more from less: Increasing return on assets and individuals
Reducing time to market
Internalizing external information
Externalizing internal information
Customer acquisition and loyalty
Exploiting both chains
Revenue-generating opportunities

10.3.6 What’s in it for One to One Marketing’s customer?

A more complete solution
How customers benefit from becoming One to One Marketing’s «employee»
Catering to the customer through monitoring and responding
Virtual locations for customer convenience
Dealing direct can lower costs for customers

10.3.7 The essential steps for One to One Marketing’s Internet strategy

Circle of Influence refers to the elements on which One to One Marketing can have an impact and are the building blocks on which One to One Marketing is building its strategy.

So One to One Marketing has to ask, what can One to One Marketing’s business have a significant impact on? What should One to One Marketing focus the strategy on?

One to One Marketing’s circle of influence includes One to One Marketing’s customers, business partners, core competency, and value proposition among others. These are elements that One to One Marketing can influence

10.3.7.1 Circle of Influence Matrix

	Customer	Points of Entry	Core Business Competency	Points of Departure
Responsibility	Business leaders	Business and Marketing leaders	Business and Marketing, and Information Systems leaders	Business and Marketing leaders
Key Questions	1. Who are the customers and what are their profiles?2. What are their needs (security,Proactivity, etc.)?3. What scenarios will they be using for Internet services and what overall solution are they after?	1. What initial points of Internet entry will customer follow(search engines, business partner links,2. Newspaper (advertisements)?3. What new business partners/interlinkers do One to One Marketing need to define in order to attract One to One Marketing’s customers?4. What will lead them to One to One Marketing’scompelling differentiation and core competency?	1. What part of the overall solution is One to One Marketing providing? What value can One to One Marketing provide?2. What are One to One Marketing’s relevant core competencies?3. What is One to One Marketing’s compelling differentiation?4. What is One to One Marketing value proposition and profit models?5. What information, functionality, and digital assets can be created or leveraged?	1. What value can One to One Marketing not provide in a complete customer scenario?2. What new global businessPartners/interlinkersneed to be defined?3. Should the points of departure be transparent or nontransparent to One to One Marketing’s customers? (Should One to One Marketing’s customer see just one business interface or several?)

10.3.7.2 One to One Marketing’s Internet Strategy

10.3.7.2.1 Embrace the Internet strategically

Success requires embracing the Internet strategically. 85 percent of the businesses that have an Internet presence simply show up, reacting to the Internet rather than first developing a strategic plan. Most simply place brochures and promotional materials on an Internet site. Many also accept resumes online, post job opportunities, call it a success, and move on. This is a non-strategic reaction to the Internet, putting up a presence just for the sake of being there. Little or no thought is given to the opportunities that the Internet presents. Instead, it is viewed as simply another marketing vehicle or distribution channel.

An Internet strategy is much more than taking selected business processes from the past and applying them to the Internet or Intranet. There is much deeper business value in these technologies. Fully embracing the Internet means redefining One to One Marketing’s core competencies, developing new relationships with customers, and inter linking with new business partners to offer more complete solutions. Truly successful companies look at the Internet as an opportunity to redefine the rules of business and the roles they play in providing new and better solutions.

In short, One to One Marketing must look beyond short-term, tactical responses to deeper strategic approaches, align our business goals with One to One Marketing’s Internet strategy, and act early.

By not developing a responsible, thorough, and strategic Internet plan, One to One Marketing will be unprepared and vulnerable, with little time to respond to new customer needs and business models. Consider the consequences of the reactive versus the proactive approach, as illustrated in Figure below.

Without an Internet strategy, One to One Marketing limit the options and could be forced to react to keep from sinking.

Before One to One Marketing moving to step 2(Develop Success Criteria), One to One Marketing have to ask the following questions:

Is One to One Marketing’s business moving in the wrong direction as the Internet changes the assumptions of business?
Does One to One Marketing has the business and technology skills to understand where One to One Marketing need to be going?
Is One to One Marketing sufficiently informed to determine the proper strategy?
Does One to One Marketing has the appropriate Internet team in place to guide?
Has One to One Marketing embraced the Internet strategically, securing direction as well as endorsements from the staff?

These questions will challenge One to One Marketing to better understand the business, where One to One Marketing is currently, and where it has the potential to be.

10.3.7.2.2 Develop and accept new business assumptions.

One to One Marketing needs to understand the new operating environment. One to One Marketing need to develop new business models and assumptions, comparing and contrasting the old with the new, to determine the foundation on which One to One Marketing’s business is and will be based. One to One Marketing has to be looking at the capabilities of the Internet and extrapolating the implications relevant to One to One Marketing’sr business. This is a critical process.

Assumption	Old Model	New Model
Access to Market	Limited playing field	Levelling of playing field/ Access to market for both businesses and customers significantly increases
Barriers to Entry	Significant barriers to Low barriers to entryentry	Low barriers to entry
Agility	Agility is recognised as important, but its incorporation is slow	Agility becomes essential through recognition of proper relationships between customers, partners, and employees systems strategy is aproper relationships small piece of the business solution partners, and employees
Virtualisation	Virtualisation is an idea	Degrees of virtualisation are realised
Core Competency	Initial recognition of strategic value of core competencies	Strategic focus on corecompetencies is paramount due to increasing competition and ability to interlink with others
Value Proposition	Value proposition for the customer changes slowly	Value proposition for the customer constantly changes with innovative products and services
Ability to Change	«Need to change» is recognised	Continuous change must be realised to grow
Strategic Drivers	Marketing drives business strategies to a significant extent	A combination of technology and marketing enables the new business strategies/The marketing function changes fundamentally
Quality vs. Time to Market	Quality of products isimportant	Time to Market, in addition to quality, becomes more relevant/First to market with compelling differentiation provides dramatic competitive advantages
Internet Adoption	Internet business and systems strategy is a small piece of the business solution	Internet is a complementary business design element for a variety of business activities
Competition	Moderate number of competitorscompetitors	Large number of and more global competitors/Competitors come from new industries.
Customisation	Products are regionally customised
Design Perspective	Company-designed products	Customer – designed products (virtual products)
Internet’s Perceived Value	Internet seen as another distribution channel	Internet requires managers to rethink their business processes and create new kinds of customer solutions
Business Partners	Formal alliances, merger and acquisitions common	New types of partners, interlinkers, who specialise and complement your value/Less-formal alliances are necessary for interlinking/They become opportunity based
Software Success Factors	Ease of use	Architectural flexibility in the systems becomes the key business success factor
Customers	Needs and expectations change slowly	Needs, expectations, and priorities change constantly as new services, virtual products, and choices become available.

10.3.7.2.3 Envision complete customer-centric solutions.

The most successful Internet strategy offers a more complete, convenient, and timely solution for the customers than that available today.

For One to One Marketing to envision new customer solution, develop scenarios of the typical customers in One to One Marketing’s daily practices, incorporating products or services into the picture. What part of the complete solution can One to One Marketing offer, and how can One to One Marketing facilitate better solutions to keep One to One Marketings customer coming back? This approach will eventual force One to One Marketing to understand and define better One to One Marketing’s relevant core competencies and customer value within the context and the Internet.

10.3.7.2.4 Predict points of entry.

Points of entry are all of the possible routes potential customers might use to get to One to One Marketing’s site. They could be business partner (interlinking) sites, other product- or service-related Internet sites, or advertisements (both online and offline) One to One Marketing’s site is also the point of entry for other sites.

Points of entry initiate the customer scenario: the manner, method, site, or path customers follows to get to One to One Marketing’s site, content, functionality, and value proposition.

10.3.7.2.5 Redefine relevant core competencies.

One to One Marketing has to redefine the core competencies from the perspective of the Internet customer. One to One Marketing’s competencies depend on the evaluation of business and technology and might be one thing today, but something else tomorrow.

10.3.7.2.6 Experiment with innovative solutions.

There are business problems that Internet technology can solve, and, more important, business opportunities it can create. Internet facilitates communication with suppliers, but it also creates new opportunities by offering more personalised and complete solutions to a global audience. As One to One Marketing evaluate relevant core competencies, One to One Marketing need to explore new products and services opportunities.

If One to One Marketing don’t provide a convenient, timely, and highly valued solution, someone else definitely will.

10.3.7.2.7 Define One to One Marketing’s value proposition.

The value of One to One Marketing’s offering to the customer must be clear. Is the product or service secure, interactive, educational, or proactive?

As One to One Marketing develop the value proposition; continually review customer expectations and priorities. What do One to One Marketing think the customer will value?

The process for creating value in the physical and virtual worlds is not the same. The most successful Internet value propositions take into account four components.

Relevant core competence (In the eyes of One to One Marketing’s customers) and compelling solution differentiation
The value of inter linking business partners
Customers’ changing needs and expectations
Internet-enabled business capabilities

10.3.7.2.8 Explore profit models.

The Internet is often characterised as the world’s first zero-billion-money industry. Everyone is convinced there is money to be made, but few are successful.

How will One to One Marketing recapture value and profit on the Internet with innovative customer solutions? Will value be recaptured through expert advice, new information, or possible leads that One to One Marketing bring to other businesses via the Internet? Will linking with appropriate business partners recapture it? Will it be recaptured through the non-Internet channels?

Probably will One to One Marketing’s profit models change over time. However, they must always be based on the value added to enrich the customer solution.

One to One Marketing has for instance several opportunities as:

Advertising space (Netscape)
Links to partners (BayNet)
Providing a more complete customer solution (Geosystems)
Electronic agents (Verity)
Customized solutions (NETCOM)
Information / knowledge provisioning (IBM infosage)
Innovative products / services (NetstockDirect)
Transaction fulfilment (IBM InfMarket)
Provision of qualified leads (InfoSeek)
Subscriptions (Wall Street Journal)
Selling side strategies (Industry.Net)
Intermediaries (IBM WorldAvenue)

10.3.7.2.9 Identify points of departure.

At this point One to One Marketing have completed much of the strategy analysis and determined the circumstances in which customer will enter One to One Marketing’s circle of influence. However, One to One Marketing must still consider how a customer will exit One to One Marketing’s Internet-based product or service.

One to One Marketing must consider the following questions:

What can’t One to One Marketing provide, or what can someone else provide better to complement One to One Marketing’s service or product?
To complete their solution, where would users naturally want to go next after they received value from One to One Marketing’s site?
What new partners or interl inkers do One to One Marketing need to develop?
Does One to One Marketing want transparent or non-transparent linking from One to One Marketing’s site?
What customer information if any will One to One Marketing forward to One to One Marketing’s inter linking partner?

Sample Internet Business Strategy

NewAssumption	Product/Service	CustomerValue	ValueProposition	ProfitRecapture
CustomisedNews	Customisedelectronic newspaperdelivered to youre-mail address	ConvenienceIndividualisationProactivityTimeliness	Time savingsBetter knowledge gathering on special interests Newspaper alerts you for special-interest newsInstantaneous delivery	Larger audienceCost savings on printing and distributionOffering more value, therefore higher customer costsPay per view
CustomisedAdvertising	Customised generaland classified ads	ConvenienceIndividualisationProactivityTimeliness	Time savings from the elimination of unrelated ads Better knowledge gatheringon products of interest Ads are proactive; they reachyou when you need them Ads reflect the current offerings and relate to news content	Better segmentation andhigher accuracy for advertisers lead statistics Optimal return on advertisers increases value recapture for newspapers
VirtuallyUnlimitedContent	Detail-on-demandnews	ConvenienceEducationProactivityTimeliness	Time savings-when you need details you can get the full story and interlink to relevant topics Since newspapers are notSince newspapers are not limlited by physical page size, long details can be provided for better general education.	Better utilisation of the information already collected; more relevant content would be highly valued by customer
VirtuallyUnlimtedAdvertisingSpace	Detail-on-DemandAdvertisingNewspapers never has to show all the ads to all customers	ConvenienceTimelinessProactivity	Customer can review the ads he is interested with and get details if needed.He can buy directly using newspapers acting as a transaction clearing house	Virtually unlimited advertisingOpportunities.No trade-off between the amount of advertising and customer satisfaction with content

10.3.7.2.10 Plan a phasing approach.

A phasing strategy is a necessary part of One to One Marketing’s Internet business strategy. Because One to One Marketing need to be early to market with an innovative solution, and phasing allows One to One Marketing to accomplish this. The Internet customer does not reward the second to market. But being early to market is only the beginning.

One to One Marketing want to plan and develop a phasing strategy designed to reach One to One Marketing’s business objectives and achieve One to One Marketing’s success criteria in stages. After the conclusion of each step or phase, the assumptions of One to One Marketing’s Internet business strategy should be reviewed. Measuring success at the end of each step will help One to One Marketing tune the strategy, guiding One to One Marketing in the most successful direction.

When One to One Marketing develop the phasing approach One to One Marketing will consider the following:

One to One Marketing begin with the end in mind and make each phase bring them closer to where One to One Marketing want to be.
Phasing allows One to One Marketing to identify where One to One Marketing want to go and develop checkpoints to assess One to One Marketing’s progress.
One to One Marketing will be clear on what they expect to achieve and learn from each phase.

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Kunnskapskilden – Internet Marketing Intelligence

Kunnskapskilden – Internet Marketing Intelligence Internet Situational Analysis of 1to1 Marketing/CRM

Research Project: Internet Situational Analysis of 1to1 Marketing/CRM from Jan Vig at Griffith University , Australia 1999/2000

Content

Chapter 10

Business Objectives and Strategies